Jocelyn Szymanowski, Author at Ferguson, Schetelich, Ballew, P.A.

January 16, 2015

An IRS Tax Audit of Your Business – The Basics

A tax audit is an accounting procedure where the IRS examines your business financial records to make sure you filed your tax return accurately. If you receive an IRS audit notice, here are the basic steps you can take to assist in resolving the situation. 1. Determine Why Your Return Was Selected For An Audit. It is the IRS’s obligation to inform you as to why your return was selected. However, you must be diligent in making the inquiry. Taxes may be audited for several reasons, including: Specific activity on your return, such as cash wages, 1099 and W-2 forms that…

October 21, 2014

Charitable Contributions to Individual Missionaries

In general, a contribution is deductible only if it is made “to or for the use of” a charitable organization, not a designated individual. IRC §170(a). Direct contributions to missionaries, or any other individual, are not tax deductible, even if they are used for religious or charitable purposes. However, contributions to designated individuals in the context of mission work may be deductible where it is shown that the contributions were to a charitable organization and for the use of the organization, not just the individual missionary designated. Contributions to a missions agency or church for the benefit of a particular…

July 29, 2014

Charitable Contributions to Foreign Organizations and/or Designated to Foreign Organizations

In general, the United States does not permit individuals to claim an income tax deduction for direct contributions to foreign charities. IRC Section 170(c)(2)(a) specifically limits the tax deduction to corporations, funds or foundations created or organized in the United States or under the laws of the United States. To that end, the IRS will disallow a tax deduction for contributions to domestic charities if the domestic charity is a mere conduit of funds to a foreign organization. To determine whether the domestic charity is a “mere conduit” of funds, the IRS will look to the whether the domestic organization…

May 29, 2014

JOCELYN SZYMANOWSKI NAMED CHAIR-ELECT OF YOUNG LAWYERS DIVISION

Ms. Szymanowski was installed as Chair Elect for the Young Lawyers Division of the Bar Association of Baltimore City for the 2014 – 2015 bar year. She was previously named a 2014 Rising Star by Super Lawyers Magazine and Baltimore Magazine. Ms. Szymanowski joined the firm in 2005, following a judicial clerkship to the Honorable John P. Miller in the Circuit Court for Baltimore City. Her practice focuses on taxation, charitable organizations, business, banking and real estate. Ms. Szymanowski received her Bachelor of Science degree in Criminal Justice from the University of Baltimore in 2000, a J.D. from Tulane University…

April 4, 2014

Changes to Maryland’s Estate Tax

On March 21, 2014, for the first time in twelve years, Maryland has adjusted its estate tax. Maryland General Assembly passed House Bill 739 / Senate Bill 602 which changes the “unified credit” amount, i.e. the threshold of assets above which the estate tax applies, from the current $1 million to the federal credit amount. The Senate passed the measure by a vote of 36 to 10. The House vote was 119 to 14. This bill alleviates the problems in Maryland’s estate tax caused by its “de-coupling” from the Federal estate tax exemption. The bill gradually raises Maryland’s $1 million…

February 18, 2014

IRS Changes Health FSA “Use or Lose” Rule

On October 31, 2013, the Internal Revenue Service (IRS) released Notice 2013-71 (Notice), which modifies the “use or lose” rule for health flexible spending accounts (Health FSAs).

Flexible spending accounts (FSAs) are popular benefits offered by many employers as part of their employee’s health-care package. Health FSAs are accounts that allow employers to reimburse employees for qualifying out-of-pocket medical expenses, such as deductibles and co-pays, on a tax-free basis. The account must be set up according to a written plan that meets both statutory and IRS requirements.

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