California Tax Attorney Blog

Dying without a Will in California means that the probate court will address the estate by applying the rules of intestate succession. Sometimes, in the case of lost California Wills, the same rules apply. Here are some of the rules as found in the California Probate Code:

Section

6400: Property subject to intestacy provision.

6401: Surviving spouse or surviving domestic partner; intestate share; community or quasi-community property; separate property.

6402: Intestate estate not passing to surviving spouse of surviving domestic partner.

6402.5: Predeceased spouse; portion of decedent’s estate attributable to decedent’s predeceased spouse.

6403: Failure to survive decedent by 120 hours; deemed predeceased; application of section.

6404: Application of escheat provisions.

6406: Relatives of halfblood.

6407: Unborn relatives of decedent.

6409: Property given to heirs during decedent’s lifetime; advancement against share.

6410: Debt owed to decedent; predeceased debtor.

6411: Aliens

6412: Dower and curtesy, nonrecognition.

6413: Relation through two lines of relationships; single share.

6414: Application of part.

Ask a California probate attorney about questions you have concerning death and taxes. Call Mitchell A. Port at (310) 559-5259.

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The IRS recently updated its "Audit Technique Guides". These Guides contain examination techniques, common and unique industry issues, business practices, industry terminology and other information to assist examiners in performing examinations. If you have a construction business, a new vehicle dealership, a retail business or if you're in the laundromat business, learn what an auditor is trained to look for. Dozens of other audit guides for all kinds of economic and financial activities are available to help you before the audit begins.

If you want the help of a tax attorney during the audit and exam process, call Mitchell A. Port at (310) 559-5259.

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Earlier this morning the Internal Revenue Service announced that it is allowing a one-time extension of the deadline for special voluntary disclosures by those with unreported income from offshore accounts. Those taxpayers now have until Oct. 15, 2009.

PURPOSE OF EXTENSION:

By providing a short extention of the deadline, the IRS is providing relief for those taxpayers who had intended to come forward before the deadline, but faced various challenges in meeting it.

The extension will allow tax preparers and attorneys the necessary time to interview and advise their backlog of taxpayers with these undisclosed offshore accounts, and prepare the necessary paperwork to qualify for the special penalty provisions.

Remember, your tax preparer may also be extremely busy completing individual income tax returns (Forms 1040) for 2008 for those clients on extension. Speak with your advisor sooner than later in order to avoid missing the deadline.

IRS officials decided to extend this deadline after receiving repeated requests from tax practitioners and attorneys around the country following an influx of taxpayer requests.

LAST CHANCE! There will be no further extensions.

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This is so interesting to me:

California Probate Code Section 6112 provides that:

(a) Any person generally competent to be a witness may act as a witness to a will.

(b) A will or any provision thereof is not invalid because the will is signed by an interested witness.

(c) Unless there are at least two other subscribing witnesses to the will who are disinterested witnesses, the fact that the will makes a devise to a subscribing witness creates a presumption that the witness procured the devise by duress, menace, fraud, or undue influence. This presumption is a presumption affecting the burden of proof. This presumption does not apply where the witness is a person to whom the devise is made solely in a fiduciary capacity.

(d) If a devise made by the will to an interested witness fails because the presumption established by subdivision (c) applies to the devise and the witness fails to rebut the presumption, the interested witness shall take such proportion of the devise made to the witness in the will as does not exceed the share of the estate which would be distributed to the witness if the will were not established. Nothing in this subdivision affects the law that applies where it is established that the witness procured a devise by duress, menace, fraud, or undue influence.

To draft and execute your Will properly, call an estate planning or probate attorney. Call Mitchell A. Port at (310) 559-5259. Deal fairly with questions about death and taxes.

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The IRS Tax Amnesty for Foreign Bank Account Report ("FBAR") filings is ending this coming September 23rd. Individuals and entities who have foreign financial accounts are required to file Form 90-22.1 with the IRS every June 30th.

Those who don't file by June 30th next year are subject to criminal penalties of up to five years in jail and a fine of $250,000. In addition, a willful failure to file the FBAR can result in a civil penalty of the GREATER of $100,000 or 50% of the balance in the account. This penalty can be imposed on an annual basis, and can exceed the balance in the account.

Those who come forward by September 23rd will have penalties limited.

Since early in the year, the IRS has been advertising its offshore voluntary disclosure program under which the IRS will not to bring criminal prosecutions of owners of foreign bank accounts if they work with the IRS Criminal Investigation Division by no later than September 23rd.

The IRS has a FAQs page worth reviewing too.

Get help NOW! Call tax attorney Mitchell A. Port at (310) 559-5259.

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In California, probate bonds are an “insurance policy” which guarantees a fund for satisfaction of damages incurred by a breach of trust committed by the estate’s representative. The Los Angeles Superiour Court has some of the rules pertaining to bonds on its website which you can read here. Probate bonds may be required as security for the estate representative’s obligation to faithfully carry out his or her fiduciary duties.

When examining the issue of a probate bond, consider these topics:

When is bond required
Does the Will waive bond
Will the beneficiaries or heirs sign a written waiver of bond
Is there alternative security in lieu of bond
What is the statutory maximum/minimum amount of the bond
How do you determine the estate’s value for purposes of bond
Are separate bonds needed for multiple representatives
Can you use a “blocked account” deposit to reduce the initial bond
Does the initial bond need to be increased

Consult with a California probate attorney about these and other probate questions. Call attorney Mitchell A. Port at (310) 559-5259.

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Read Michael Jackson's Will he prepared and signed in Los Angeles, California.

With the coverage of Michael Jackson's death, estate and guardianship questions involving his children, Michael Jackson's Will was made available through the internet shortly within it being filed with a Los Angeles Probate Court.

Don't be shocked that such an important and personal document is available to the public. That's the nature of wills -- they are public documents (once you die) when a probate proceeding is started. Any will admitted to probate court is a public record that anyone can read.

So what do you do if you don't want your estate planning wishes to be read by everyone? Do what Michael Jackson did and create a revocable living trust. He created his estate plan.

Estate planning is a term that may confuse people. Many people really don't know what documents make up an estate plan. The term estate planning somehow confers a meaning that someone must have an estate. And people think of estates as those lovely homes in Beverly Hills and the surrounding area. You don't have to be Michael Jackson or own an expensive home to benefit by having an estate plan.

Generally whenever someone dies, whatever they leave behind is called their estate whether it is assets or debts. So, estate planning is really planning for handling your affairs after you die.
In some instances, estate planning is also planning for incapacity.

The basic estate plan for most people generally consists of the following documents:
1. Will
2. Living Trust
3. Durable Power of Attorney
4. Advance Health Care Directive

Talk to a California estate planning attorney. Reduce the impact of death and taxes. Call Mitchell A. Port at (310) 559-5259.

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It is no surprise in California that the Franchise Tax Board provides many different payment options to pay your individual income tax.

The options are:

Check, money order, or cash - Mail your payment or pay in person.

Installment Agreement request - Complete and submit an online request to make monthly payments for tax, bill, or notice.

Credit Card - Pay with your Discover/NOVUS, MasterCard, Visa, or American Express. Make your payment online or by phone. Official Payments Corporation charges a convenience fee of 2.5% (minimum $1) to use this service.

Web Pay - Pay the current amount you owe and schedule payments up to one year in advance. Select the payment amount and payment date. We'll deduct the payment from your account on the day you selected.

Western Union - Pay online, by phone, or in person at one of their worldwide offices.

For California businesses who owe tax, there are also these options:

Check, money order, or cash - Mail your payment or pay in person.

Installment agreement request - Make monthly payments.

Electronic funds transfer for banks and corporations.

Still have trouble paying your taxes? For tax help, call attorney Mitchell A. Port at (310) 559-5259.

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The Los Angeles Court’s website has a list of frequently asked questions. Los Angeles Court employees and others throughout the entire California Court system can help you but they are not allowed by law to give you legal advice. You are encouraged to discuss any further questions (including those about death and taxes) with an attorney.

Those FAQs are listed here and posted on the Court's website here:

How do I get legal advice?

How do I get an attorney?

Where can I check if a probate action has been filed?

Does the Court provide a list of probated property?

Where is the list for probate properties that are for sale?

My case was denied without prejudice, what do I have to do to put it back before the court?

My case was taken off-calendar, do I have to file a new petition?

How can I get guardianship of my grandchildren?

How can I terminate a guardianship or conservatorship?

How can I get money from a blocked account for a minor?

What if the Court lost an original of a filed document?

Is the Court closed at lunchtime?

More questions: Call a probate attorney: call Mitchell A. Port at (310) 559-5259.

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Don’t call a tax attorney for tax help if your tax problem is that you owe $25,000 or less in combined tax, penalties, and interest. You can use the online payment agreement (OPA) application to request a payment agreement.

Often, the application allows you to qualify, apply for an installment agreement, and receive immediate notification of approval. Sometimes you will need to mail in paperwork or speak with the Internal Revenue Service before they can determine your eligibility for an installment agreement. If that is the case, the OPA application will give you an address or a toll-free phone number to reach them.

The information you need to have when using the Online Payment Agreement is here.

The IRS even explains the three payment options you have.

If you want to know when to call the IRS, check here.

For less than $25,000 in tax, penalties and interest, do not call a tax attorney.

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