Later Filing of Tax Returns Due to Law Changes

Congress passed new laws regarding taxes (actually renewed some laws that were going to expire) on December 17, 2010 so the IRS is saying that returns that itemize deductions claiming sales taxes, or returns getting the educator's deduction (basically school teachers) or anyone claiming education credits may not be able to file their returns until Mid to Late February because the forms won't be ready before that date.  There are options.  I am telling my clients to get me their taxes timely like they always do so we can be ready when we can file the returns....and we can possibly file returns without the above deductions then amend the return when the forms are ready.

Pay On Death Accounts

Here is something even I have not yet done but hopefully will take care of this coming week.  If you should die, to make transferring your bank accounts easy, you should consider having a pay-on-death account (POD) which basically means that when you die, the balance in the account passes directly to the named beneficiary and bypasses probate.  Using a POD or transfer-on-death (TOD) account is the simplest way to keep assets held in bank and brokerage accounts from becoming part of an individual's probate estate.  And an individual's will does not control who inherits a POD or TOD account.  With a POD/TOD account, you can name a new beneficiary at any time.  Not all states have a POD/TOD law.  Even without a law, individuals can make use of the accounts by doing business with a broker or a bank based in a state that has one on the books.