Inheritance tax planning

People who wish to minimize estate taxes and keep their personal and financial details private should consider inheritance tax planning using legal devices such as living trusts and Texas wills. One of the main differences between these stratagems is that wills, being subject to the probate process, are required to be filed and records relating to wills are available for public access, whereas living trusts are treated privately by the courts and their details are not available to the public.

Estate taxes have been eliminated in Texas, so that in that state property may be inherited without payment of any state tax and in the case of modest estates the process of obtaining probate is streamlined and inexpensive. Federal inheritance tax is levied on larger estates, however, and it is in these cases that people can benefit from inheritance planning to reduce the level of federal inheritance tax payable on their estates. The levels of federal inheritance taxes are quite punitive, as high as one third of the estate value, and are payable in cash. Often heirs are forced to liquidate the property they have inherited – real estate, businesses, jewelry or valuable collections – at a loss so that they can fulfill their federal tax obligations. To be sure that assets are passed on to the inheritors, and do not need to be sold on order to pay federal inheritance taxes, estate planning attorneys will help with making Texas wills and setting up living trusts.

If you have worked hard to accumulate assets during your lifetime, and wish your heirs to gain the most benefit from your estate after your death, consider consulting an estate planning attorney. A professional inheritance tax planner will be able to explain the best legal devices for your particular circumstances so that you can decide whether a Texas will or living trust is a way of ensuring that your belongings are dispersed in the manner that you wish.

IRS Tax Debt – Resolving the IRS Dues that you Owe

If you owe money to the IRS on taxes, you should find out some way to pay off the due amount. Otherwise, things can get complicated. There are various ways in which you can try resolving your IRS tax debt. You can try to do it on your own or else, you can also try to get help from the debt settlement companies to resolve the tax debt problem.

Resolving IRS tax debt:

Resolving your tax debt on your own is not much of a problem because there are various ways in which you can pay off your IRS debts. This is because the IRS encourages the tax payers to pay at least what is possible for them. The different types of IRS pay off agreements are:

  1. The installment agreement – In installment agreement you can make a payment each month (installment) on the back taxes. This helps you to pay off the taxes that you owe to the IRS. Installment agreement types–
  • Non-streamlined
  • Partial payment
  • Guaranteed
  • Streamlined
  1. Offer in Compromise – In OIC or offer in compromise you are not required to pay the full tax amount that you owe to the IRS. The IRS allows you what the debt settlement companies do for you in case of simple debts. There are some terms and conditions which you will have to abide by while making OIC payments, otherwise the IRS can revoke the OIC.
  2. Currently not collectible plan – In Currently not collectible plan you won’t have to pay your back taxes at least for the time being. This is one of the best debt relief options for you, if you are now without enough cash to handle all of your expenses. You will have to pay off the debt at a later date.

The thing is that you will have to try and pay off your taxes. If you are facing problems you will have to talk about that to the IRS and they will offer you any of the above agreements as per your financial condition. However, if they are able to find out that you intentionally trying not to pay the tax, you may get seriously penalized.

Reviews Of Online Tax Preparation Software

There are a variety of income tax preparation computer software bundles currently available. Several are free of charge while others can be very costly. Deciding between them will depend on personal needs.

Following is a list of reviewed software and their advantages and disadvantages.

Quicken software known as TurboTax, is definitely, one of the most thorough tax form software available today. Having said that, additionally it is among the most costly packages that you can buy. For less than thirty dollars, the software package features the advantage of being protected against audits in addition to the ability to spend a little bit more and receive individualized certified public accountant assistance.

Among the best things about this brand is definitely the internet refund box that enables you to observe your refund amount or amount of tax owed as you proceed along. This approach is useful in providing peace of mind simply because you will be able to confirm the amount you believe you ought to be receiving for every group of tax deductions. Moreover, this software features a taxpayer discussion board allowing the user to talk about many of the aggravations along with the victories throughout the taxation period.

H & R Block Block stands out as the most trusted name on the subject of income taxes. In contrast to it’s counterparts, this particular variety of computer software fails to provide a member discussion board, however, there is an online talk feature that is especially navigation friendly. Additionally, it will come along with a well guided interface as well as a comprehensive list of filing options. At a cost of less than thirty dollars, this package is truly worth the the price.

Another fine tax software package is known as Tax Act. It is a very basic package that does not include a lot of bonuses, however for around eighteen dollars, the software will undoubtedly get the job done. There are no chat features or IRS audit defense, however regarding the tax software newcomer, this one is among the easiest to navigate. For people who just want to file their taxes without spending a lot of money, this software package is the best option.

Another income tax program is known as Tax Slayer Extreme. For just under fifteen dollars you will get your money’s worth however, it is nothing to rave about. It has pretty awkward code written into it that snags up as you walk through the screens or your return and also lacks a live chat feature, they however, do have an email option but it is very standard and takes a while for them to get back to you. There again, if filing taxes is your game and spending lots of money is not, you will do well with this package.

Locating a superior type of software program is simple to carry out upon discovering your individual needs. In that respect, there are many companies providing different packages and price points and all that is required is a little bit of research to find the one that best meets your needs.

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