Atlanta Tax, Probate and Estate Planning Attorney Blog

Income Tax Exclusion for Service in Combat Zone

Sun, 20 Jul 2008 15:19:21 -0700

We receive frequent questions from members of the U.S. armed forces about exclusions from income while they are serving in a combat zone.

If you serve in a combat zone as an enlisted person or as a warrant officer (including commissioned warrant officers) for any part of a month, all your military pay received for military service that month is excluded from gross income. For commissioned officers, the monthly exclusion is capped at the highest enlisted pay, plus any hostile fire or imminent danger pay received.

To answer the most common question posed to us about this, the exclusion will (unfortunately) not protect your lottery winnings from taxation.

IRS increases optional standard mileage rates

Sun, 20 Jul 2008 14:47:32 -0700

The Internal Revenue Service has announced an increase in the optional standard mileage rates. The rate will increase to 58.5 cents a mile for all business miles driven from July 1, 2008, through Dec. 31, 2008. This is an increase of eight (8) cents from the 50.5 cent rate in effect for the first six months of 2008, as provided in Rev. Proc. 2007-70. Although the IRS normally only updates the mileage rates once a year in the fall for the next calendar year, it implemented this increase in recognition of the increased fuel prices that Taxpayers are currently facing.

Taxpayers not required to file a 2007 income tax return may be eligible for a stimulus relief payment if they file

Mon, 5 May 2008 11:29:52 -0700

Even Taxpayers who are not required to file a return may want to, since they may be eligible for a stimulus payment (if they have at least $3,000 in qualifying income), as long as they file their 2007 income tax return by Oct. 15, 2008. The easiest way to do this for someone not required to file is usually Form 1040A.

Phishing Scams using IRS Name and Promising Refunds are on the Rise.

Tue, 29 Apr 2008 14:18:44 -0700

The IRS has published several warnings lately about increasing internet phishing scams using the IRS name and logo.

"Phishing" (an intentionally misspelled version of "fishing" (for information)) is a scam where someone fraudulently sends an e-mail to trick the potential victim into revealing personal data that can be used to steal the victims' identity and assets.

Once the identity thief has someone's personal data, they will use it to use to empty the victim's accounts, run up charges on the victim's credit cards, apply for new credit cards and/or obtain loans. I have even seen cases where the thief rented an apartment or bought a car.

Introduction and Blog Goals

Tue, 29 Apr 2008 14:14:09 -0700

When I first mentioned doing a blog on my practice areas to a friend, his first words were: "How do you make tax interesting?" I have always found this widespread perception to be curious.

There is no question that tax code provisions and regulations (intentionally) read like a foreign language to most people who don't do tax for a living.

However, both when I worked in IRS Chief Counsel and now working for taxpayers in private practice, I find that virtually every case has a compelling human story behind it. That's what makes practicing in this area so much fun to me.