12 basics of IRS appeals process

AFTER an audit of your tax returns by the IRS, you have a choice of either ending your misery by paying up or by continuing to fight at the Appeals Office. The appeals process is an administrative means to resolve your problems without resorting to legal action. It’s a good way to resolve disputes. It…

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When does filing bankruptcy work to your advantage?

IN spite of the negative things that you may have heard about it, bankruptcy relief still remains to be the best option to many individuals who need help in recovering financially.  There is nothing “illegal” or “criminal” about filing for bankruptcy.  As a matter of fact, obtaining relief from debt under federal law is an…

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Don’ts in an IRS audit

1. DON’T be late. Always remember first good impression will get your audit off on the right foot. 2. Don’t walk in without records. Be prepared with complete and organized records. 3. Don’t dump a paper bag in the auditor’s face. Do not have the auditor sort through paper bags of cluttered documents. A happy…

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Shouldering the share of cost

WHEN it comes to Medi-Cal , one of the concepts that our office gets the most questions about is something called Share of Cost.  Share of Cost seems simple: it functions like an insurance deductible, the amount that a Medi-Cal beneficiary must pay to healthcare providers before receiving benefits from the state.  Although it sounds…

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Tax consequences of debt discharge

DURING and after the recession, many borrowers who were financially distressed lost their homes and had their loans cancelled. It was a relief to have their debts reduced or forgiven, but the same debt relief also triggered tax consequences that they were not aware of. Some homeowners were in disbelief when they learn that they…

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10 tips on dependents and exemptions

• YOU may claim exemptions for yourself, your spouse and your dependents. • Dependents must have a Social Security number (TIN is not good enough). • Exemption amount is $4,000 for 2015 for each exemption. • Exemptions reduce your taxable income and your income tax. • It could also produce credits such as child care…

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Is bankruptcy my only option to get out of debt?

ARE you being harassed by your creditors day and night due to unpaid bills? If you are, you know that this is a pretty unpleasant experience. You may feel scared, angry or embarrassed about your situation. The prospect of debt relief through bankruptcy may sound appealing to you but you are not quite sure if…

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Tax consequences of debt discharge

DURING and after the recession, many borrowers who were financially distressed lost their homes and had their loans cancelled. It was a relief to have their debts reduced or forgiven, but the same debt relief also triggered tax consequences that they were not aware of. Some homeowners were in disbelief when they learn that they…

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Senior seeks relief from $40K credit cards

Business owner seeks to discharge $100K credit cards used to buy business; Clinton beats Trump to become first woman president of America CLIENT is 65 and recently widowed. Her husband was suddenly taken ill and was diagnosed with lung cancer even though he doesn’t smoke. Strange. Husband was in the pinnacle of good health, so…

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Health insurance enrollment periods

THE government is more lenient to people with low-incomes and assets in the sense that they can get Medicaid (Medi-Cal in California) anytime of the year. That leniency to get Medi-Cal anytime is even more obvious to children and pregnant women whose household income is not more than 266 percent of the Federal Poverty Level…

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New law aims to increase minimum wage to $15 by 2022

ON January 1, 2016, the minimum wage in California became $10.00 per hour. Most employees in California are entitled to be paid at least the minimum wage. On April 4, 2016, California’s governor approved a new law that will increase California’s minimum wage every year until it becomes $15 per hour by 2022. This new…

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Should you employ your children this summer?

IF you run your own business, consider employing your children this summer vacation. Employing your children gives you a triple benefit: 1. It teaches your children the virtue of work and the value of money. 2. It could save you taxes by shifting income down from your rate of about 33% to 39%  for federal…

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Seniors seek relief from credit card debt

CLIENTS are young seniors at 60. Husband has a stable middle management job that pays $5K a month. Wife is not employed. They don’t own a house. They rent for $1200 a month and pay for a 2016 Lexus SUV 3.0. They enjoy travelling by SUV. This is the little luxury that they indulge in….

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What is a conservatorships?

MY last article discussed the reasons why everyone should have a power of attorney for assets as well as a  power of attorney for healthcare.  But what if a loved one has an incapacitating accident without executing a power of attorney?  What if Mom is suffering from the beginning stages of dementia or Alzheimer’s disease…

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Tax tips for students working at summer jobs

HERE are 10 tips for students with summer jobs: 1. Fill out Form W-4 (Employee’s Withholding Allowance Certificate). This form is used by employers to determine the amount of tax that will be withheld from your paycheck. If you have multiple summer jobs, make sure all your employers withhold adequate amount of taxes to cover…

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Do I need a power of attorney?

AS an Elder Law attorney specializing in estate planning and Medi-Cal  for Long-Term Care, I receive phone calls from adult children all over the country who have an aging parent here in California. Quite often, our conversation goes something like this: “My father (or mother) is in a nursing home in California, has a home…

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