Stay up to date and informed about changes in tax law. Highlighted in this article are some of the most recent.
Form 706 In Final Form: On October 11, the IRS issued the 2012 estate tax return (Form 706) in final form. New on this form is the portability election. With portability, if an individual dies and does not utilize his or her applicable exemption amount, the unused portion transfers to the surviving spouse if so elected by the deceased spouse’s personal representative.
According to regulations issued in June of 2012, executors choosing to make a portability election must estimate the total value of the gross estate based on a determination made in good faith and with due diligence. The instructions on Form 706 will provide ranges of dollar values, and every executor must identify the particular range within which the best estimate of the total gross estate falls. An amount corresponding to this range will be included on the Form 706, which must be filed in order to execute the applicable exemption amount. However, since this form is newly released, it is recommended that clients consult a tax professional and file extensions for early 2012 deaths.
New Tax Laws: Georgia’s Jobs and Family Tax Reform Plan is a comprehensive reform of how taxes are collected in Georgia. The plan eliminates both the sales and ad valorem tax on automobiles and replaces them with a one-time title fee that is paid when the title is transferred from one owner to another.
The bill also phases out taxes assessed on energy used in manufacturing, so Georgia is now at an advantage in allocating new manufacturing in this state. For example, Caterpillar added 1,400 jobs because of the phase out of such tax.
The bill also levels the playing field between retailers by requiring online retailers to collect and remit sales tax, just as brick and mortar stores do now.
Finally, the bill caps retirement income exclusion for senior citizens at $65,000 for a single filer and $130,000 for joint filers.
The Georgia Tax Tribunal Act provides a low cost mechanism for Georgia citizens to resolve tax disputes with the Department of Revenue. The Tribunal, which will come into existence on January 1, 2013, ensures Georgians will be able to come before an expert to handle challenges to state tax assessments and denials of state tax refund claims.
For more information regarding estate planning, business law or tax controversy and compliance, please visit the Hoffman & Associates website at www.hoffmanestatelaw.com or call us at 404-255-7400.
In accordance with IRS Circular 230, this article is not to be considered a “covered opinion” or other written tax advice and should not be relied upon for IRS audit, tax dispute, or any other purpose. The information contained herein is provided “as is” for general guidance on matters of interest only. Hoffman & Associates, Attorneys-at-Law, LLC is not herein engaged in rendering legal, accounting, tax, or other professional advice and services. Before making any decision or taking any action, you should consult a competent professional advisor.