What is the generation skipping tax (GST)?

The purpose of the GST is to tax gifts and inheritances that are given to skipped generations in the same way that gifts and inheritances are taxed that are given to the immediate heirs. Any gift given to a skip person must have not only the standard gift or inheritance tax (depending on when the gift was given), but also an additional tax that is set to the highest inheritance bracket at the time of the gift. This causes most givers to pay equivalent to the gift or often more than the gift itself in taxes.

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The Federal Generation Skipping Transfer Tax or GST

Generation-skipping transfer (GST) tax imposed on gifts or bequests made directly to grandchildren or great-grandchildren instead of passing to the next generation. Basically, the tax skips a generation. The GST exemption amount is the same as the gift and estate tax exemption amount and is indexed for inflation.

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State Gift Taxes

For the most part, the gift taxes that are set by the federal government are the only gift taxes that apply to monetary gifts and estate gifts that are given. These gift and estate tax rates are invariable between each of the states and the same rate applies to each state in the country.

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How to Qualify for an IRS Offer in Compromise (OIC)

Offers are not guaranteed to be accepted at the time of applying and interest and debt collection attempts continue during the review process. It is very important to meet all of the requirements when submitting the application. The two different types of offer in compromise are streamlined and standard. Both have specific legal grounds to qualify.

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Filing Fraudulent Tax Returns: A Federal Crime

Tax fraud is a federal crime with serious consequences and a crime that rarely stays hidden. Between the IRS’s audit computers and the Whistleblower program, tax fraud is nearly impossible to hide. Filing a fraudulent return can result in fines up to $250,000 for an individual or $500,000 for a corporation and up to 3 years in jail along with the cost of prosecution. If the IRS is charging you with tax fraud, you must hire an attorney and be prepared for a long, difficult and humiliating process.

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