Tax Trivia

Take note: A federal lien is a public record. Some people review these documents to call you and even harass you. Your credit score has taken a hit of about 100 points. You can take control and contact us. We will help build your case for reasonable cause, first time abatements, statutory exceptions or IRS waivers.

Income Tax is over 100 years old The first income tax went into effect in 1861 to pay for the civil war. The US heavily borrowed from England and France at that time.

When the war was over and the national debt under control, that tax was eliminated. In 1913 the 16th Amendment to the Constitution allowed Congress the power to collect taxes on incomes. The first income tax was 1% on personal incomes over $3,000. During World War I the highest tax rate was 77%. In the 1950’s tax rates peaked at 91%. President Kennedy began a 50 year trend to reduce tax rates to the current maximum of 39.6% today.

Today, we have a Congress that annually legislates significant tax changes in late December. Doing so impacts the beginning of the tax filing season, interferes with sound tax planning and generates confusion. Before any life altering event, retirement, marriage, divorce, starting a business, buying a house, or even changing jobs, a tax consultation is advised.

Taxpayers over age 70 are well advised to seek an elder care attorney for wealth management advice. You worked hard to accumulate these savings, take the wise step to protect your wealth from the government and nursing homes.

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The Medford Tax Experts, Inc.

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