Tax Topics

On January 16, 2020, the Maryland Governor’s Office issued a news release reporting that Maryland Governor Larry Hogan announced the proposed Retirement Tax Reduction Act of 2020 (Act).[1]The Act would provide significant tax relief for Maryland retirees in order to make it more affordable for them to remain in Maryland. The news release quotes Governor […]

When a taxpayer fails to file a tax return, the Internal Revenue Service (IRS) has the authority under Internal Revenue Code (IRC) §6020 to prepare a “substitute for return” (SFR) on the taxpayer’s behalf. Generally, SFRs are detrimental to the taxpayer’s overall tax situation. SFRs do not start the clock running for the three-year period […]

On January 3, 2020 the Tax Court issued an order refusing to remove an Internal Revenue Code (IRC) §6330(e)(1) suspension of levy, finding that the Internal Revenue Service (IRS) failed to establish good cause for such removal.[1]In this case, the taxpayer, as an attorney admitted to practice in Tax Court, was able to competently deflect […]

On January 9, 2020, honoring National Law Enforcement Appreciation Day, Maryland Governor Hogan announced that he is introducing legislation to provide tax relief for police, firefighters, and first responders. He also urged lawmakers to pass his crime plan consisting of a series of initiatives and expanded legislation to address violent crime.[1] Specifically, Governor Hogan’s announcement […]

Filing season in Virginia will begin January 21, 2020, and taxpayers should note a significant change regarding the Virginia standard deduction before they file their 2019 returns. On December 18, 2019, the Virginia Department of Taxation announced that “due to changes in federal tax laws,” the Virginia standard deduction is increased to $4,500 for taxpayers […]

A taxpayer is generally not required to recognize a gain or loss as a result of a like-kind exchange under Internal Revenue Code (IRC) §1031. Significantly, IRC §1031 was amended by the Tax Cuts and Jobs Act of 2017, such that nonrecognition of gain or loss is only applicable to real property exchanges completed after […]

On November 20, 2019, the IRS posted a series of Frequently Asked Questions (FAQs) which includes much needed guidance regarding rental real estate in the context of the Qualified Business Income (QBI) deduction under Internal Revenue Code (IRC) §199A.1A few of the particularly noteworthy FAQs include: (1) when rental real estate is treated as a […]

A billionaire recently told his New York staff that he was closing shop and relocating to Florida. Although warmer winters may have played a role in the decision, the move was more likely motivated by an attempt to reduce the entrepreneur’s tax obligations. Why would tax obligations fuel a move across the country? The Tax […]

On April 30, 2019, Maryland Governor Larry Hogan signed a law providing that certain tax liens on certain real or personal property terminate 20 years from the date of assessment. Previously, a tax judgment lien in Maryland never expired. Indeed, in 2015, the Court of Special Appeals clarified in Comptroller of Maryland v. Shipe,1 that […]

United States citizens living outside of the United States may still owe taxes to the Internal Revenue Service (IRS). The IRS has strict and far reaching tax laws. Tax laws that often extend beyond the borders of the country. As a result, anyone with citizenship will likely need to file with the IRS. What if […]