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About Daniel Novak

Daniel Novak is a Principal in our Novato office.

YEAR-END TAX PLANNING UNDER A BIDEN PRESIDENCY

Although vote counting continues and legal challenges to the election endure, many news media organizations have projected that former Vice President Joe Biden will become the 46th President of the United States on January 20, 2021.

The House of Representatives will remain under Democratic control, but control of the Senate is somewhat less certain since the balance of power will be determined in January 2021 following a run-off election for two open Senate seats in Georgia. The run-off is necessary because neither of the candidates in either of the races obtained more than 50% of the total vote count as required by the state’s election law. A win by the two Democratic candidates would shift the balance of power in the Senate from one of GOP control […]

By |December 8th, 2020|Categories: Announcements, BCo Community News|Comments Off on YEAR-END TAX PLANNING UNDER A BIDEN PRESIDENCY

Update on IRS functions during the government shutdown

The IRS has just released an update on what they will and will not be doing during the government shutdown:

The IRS will continue to:

  • Process electronic and paper-filed returns (including amended returns)
  • Issue refunds
  • Respond to taxpayer questions
  • Send out automated notices
  • Implement the Tax Cuts and Jobs Act

What the IRS will not do:

  • Process transcript requests (If a POA is on file they will through e-services)
  • Process new POA requests
  • Conduct any audit functions (unless the SOL could expire)

For the full notice click here.

By |January 21st, 2019|Categories: BCo Community News|Comments Off on Update on IRS functions during the government shutdown

Don’t forget to let your CPA know if you have a foreign bank account

Did you know that if you have a foreign bank account, or even just signature authority over a foreign account that isn’t in your name, that your CPA should know about it?  While there is no specific tax on having a foreign bank account, the penalty for failure to disclose can range from $10,000 and up to 50% of the balance of the account if the failure is found to be willful.  The IRS is working down their lists.  Years ago they were going after billionaires with secret Swiss bank accounts, but more recently they are enforcing penalties against much smaller account holders.  Two weeks ago, in a more shocking court case, a taxpayer was ordered to pay $697,229 related to an account inherited from her […]

By |January 21st, 2019|Categories: BCo Community News|Comments Off on Don’t forget to let your CPA know if you have a foreign bank account

2019 Annual Contribution Limit Increase for Retirement Plans

This week the IRS announced increases to the annual contribution limits for 401(k) and IRA accounts, effective January 1, 2019.   Both limits increased by $500, so the new annual contribution limit is $19,000 for 401(k) plan accounts and $6,000 for IRA’s.

For detail on what else changed see the IRS news release here.

By |November 5th, 2018|Categories: Individual Tax, IRS, Retirement Planning|Comments Off on 2019 Annual Contribution Limit Increase for Retirement Plans

With new regulations IRS all but sinks the ship on state workarounds for the $10,000 SALT limit

On August 24th 2018 the IRS issued proposed regulations regarding recent state’s creation of state tax credit programs in exchange for charitable contributions. A number of states, including California, have proposed creating charitable funds where taxpayers would receive a state tax credit for contributions to the fund. The IRS has taken the position that these proposed transactions are quid pro quo and that a full charitable deduction is not allowed. The tax credits constitute return benefits and therefore reduce the amount of the charitable contribution. There are a few exceptions, one for state tax deductions along with a De Minimus exception for credits that do not exceed 15% of the taxpayer’s payment. A taxpayer may also decline the tax credit to receive the full charitable contribution

If you would like to […]

By |August 26th, 2018|Categories: BCo Community News, Individual Tax|Comments Off on With new regulations IRS all but sinks the ship on state workarounds for the $10,000 SALT limit
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