$1 Billion in Unclaimed Property Held by the Alabama Treasury
We run this post periodically, and each time, several people report finding funds held by the State of Alabama. Each year, unclaimed or abandoned assets are turned over to Alabama Unclaimed Property by financial institutions and businesses that lose contact with the owners. Currently, approximately $1 billion in unclaimed funds is being held by the…
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Tips for Improving Cybersecurity
Unfortunately, we live with the constant threat of cyber breaches and stolen data. Individuals are at risk for the loss of personal data & financial loss. If you’re a business owner, there is a real risk of someone gaining access to your network through an employee’s careless click. Ransomware is a real threat, with an…
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Alabama Department of Revenue Letters Misreporting Nonpayment by Taxpayers
Following this most recent 2022 filing season, many taxpayers in Alabama have reported receiving letters regarding nonpayment. This situation has caused concern among taxpayers and highlighted the need for effective communication and guidance. Nonpayment Letters Nonpayment letters have been particularly prevalent in the case of fiduciary returns, specifically Trust Returns (Form 41). Although the reasons…
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Reducing Alabama Property Taxes on a Second Home
Homestead Exemption In Alabama, a homestead exemption is available for a single-family owner-occupied dwelling and the land thereto not exceeding 160 acres. Only one homestead is granted regardless of how much property is owned within the state. Second Home While a second home cannot qualify for a homestead exemption, there is an opportunity for a…
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Silicon Valley Bank Failure – What’s Next?
Over the last week, many of our clients have called and asked if they should be concerned about banks and deposits. While we don’t offer opinions on the stability or solvency of any particular financial institution, we wanted to provide information about these events and FDIC insurance limits. On March 10, Silicon Valley Bank (“SVB”)…
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Donor Advised Funds – A Simple Way to Gift
A donor-advised fund is a charitable investment account solely for supporting charitable organizations you support. When you contribute appreciated securities or cash to the account, you get an immediate tax deduction. The funds in the account grow tax tax-free. You can recommend grants to any IRS-qualified charity. One of the biggest benefits of using a…
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Misinformation Abounds on IRS Plan to Spend $80 Billion
The Inflation Reduction Act provides nearly $80 billion in IRS funding over the next ten years. The IRS plans to use some of the funds to hire 87,000 employees. Many claim the funds will be used to hire an army of auditors dedicated to auditing taxpayers. Let’s add some perspective to the claims and numbers:…
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IRS Still Behind – National Taxpayer Advocate Report to Congress
National Taxpayer Advocate Erin Collins released her annual report to Congress in December . While the report’s tone touts progress, there are still significant issues and delays. Among the data released: As of mid-December 2022, there was a backlog of 1 million originally filed individual returns, 1.5 million originally filed business returns, and 1.5 million…
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Cryptocurrency – the Wild, Wild West
Even with prices falling, interest in cryptocurrency is on the rise. It is important to know the tax implications before you jump into the world of crypto. Whether you are invested in, accept or make payment with, or receive a gift of crypto it may give rise to a taxable event. The following chart is…
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Estimated Taxes and Withholding – What to Pay and When
Federal and Alabama taxes are collected on a pay-as-you-go system, either through withholding or estimated taxes. Do You Need to Pay Estimates? If your income is mainly from wages and you always have a substantial balance due at tax time, increase withholding and pass on making estimates. Otherwise consider if the following applies to you:…
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