According to article by Stephen Ohlemacher of Associate Press, Congress again passed a tax bill this year just before shutting down for the holidays, extending more than 50 temporary tax breaks that had expired. Although this is good news for the taxpayers as to the extension of the tax breaks, the late passage is likely to delay the processing of tax returns and any refund.

Congress also cut the IRS budget by $346 million, $1.2 billion less than the agency received in 2010. Like everything else in life, there is good news and there is bad news. The good news is that due to the cut in IRS funding, there are fewer IRS agents auditing and enforcing the tax code. The bad news is, the refund is likely to be delayed.

If you need a recommendation of a competent CPA, please give us a call and we’d be happy to recommend someone.

The post IRS Says Tax Refunds Could Be Delayed appeared first on Desert Law Group | Kimberly T. Lee.

For a married couple, the combined exemption increases to nearly $11 million, notes a story in the Wall Street Journal.

The annual gift exclusion, however, will remain at $14,000 per recipient in 2015, the story points out. This is the amount that may be given tax-free to any individual. For married couples, they can combine the exemption and make a gift of $28,000 per recipient without using up their lifetime exemption.

With the now large federal exemption limit, few estates are expected to owe taxes this year. In fact, only about 3,700 estates, or just over 1 percent of the total, will owe estate taxes to the federal government.

As a result, estate planning strategies are shifting to ways to avoid state estate taxes and capital gains taxes, as well as making sure the clients’ personal goals and objectives are met. It is important to review your planning in light of the higher exemption. Please contact us to review your planning and get a head start for the new year!

The post IRS Increases Estate Tax Exemption for 2015 appeared first on Desert Law Group | Kimberly T. Lee.