In the past, bank accounts were not typically investigated or monitored by the Internal Revenue Service (IRS) unless a taxpayer experienced an audit. However, following a proposal by the Biden Administration, IRS can now look into your bank account.
The system is broken. From tax shelters to strangers getting your refund.
Individuals spend endless hours to file.
The IRS costs 14.3 billion every year for overall operations.
Audits are focused almost exclusively on low-income people.
The Tax Code is 6,871 pages long.
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The Fair Tax Act of 2023 (H.R. 25) would fix the problems. The Fair Tax Act would restructure the nation’s tax system, replacing individual and corporate income taxes, the estate tax, and the payroll taxes dedicated to Social Security and Medicare with a national sales tax.
States , counties, and cities already have systems in place to collect sales tax. The proposed rate is only 30%.
The need for a will is becoming less and less. And going thru the probate process may become a thing of the past. Here is what you need to check on:
Brokerage Account: Transfer on Death (TOD)
A way of designating beneficiaries to receive your assets at the time of your death without having to go through probate. This designation also allows you to specify the percentage of assets each person or entity (your "TOD beneficiary") will receive. Your assets will then be automatically transferred to the designated beneficiaries upon your death.
Bank Account: Payable on Death (POD)
An arrangement between a bank or credit union and a client that designates beneficiaries to receive all the client's assets. The immediate transfer of assets is triggered by the death of the client.
Real Estate: Transfer on Death Deed
When the homeowner dies, title to the real estate passes to the beneficiary or beneficiaries, named in the Transfer-on-Death Deed, similar to how title passes in a Joint Tenancy Deed. This Deed avoids Capital Gains Taxes to be paid by the Beneficiaries at time of sale. Not all states allow them.
If you want to pass property to family members, look into a Quitclaim deed