Federal and State Taxation

Donahoo & McMenamy, P.A. has historically been recognized as a tax firm. In 1938, the firm of Mitchell and Donahoo was formed to be the first dedicated tax law firm in the state of Florida, and original founder Ernest W. Mitchell was once dubbed “Florida’s first tax attorney.” In this area, the concentration has always been with estate, gift, individual and fiduciary income, and generation-skipping transfer taxation.

In an estate or trust administration, the timing and filing of income tax returns can be critical for passing through income and deductions to beneficiaries. One of the values that Donahoo & McMenamy brings to the conclusion of an estate or trust administration is the guidance it provides to clients on the timing of these income or deduction items.

In many cases, at the end of an administration, beneficiaries are moving forward with their own assets, having received an inheritance from a parent or grandparent. Many times, the final fiduciary return can come as a surprise to a beneficiary if they have not been prepared or advised of some timing issues. This can result in unanticipated income that has been generated during the estate or trust administration. This is where we can provide the most benefit to a client.

A unique feature of our tax practice is the preparation and filing of Federal income tax returns. This has evolved over time, as estate and trust returns generate tax information for clients and these clients would request that we prepare their individual tax returns. Thus, in many ways, the firm has become a one-stop shop. This has turned into a benefit for our firm as well, as it permits us to stay in touch with our clients on at least an annual basis, continually building relationships and trust.

“While many law firms generally send tax preparation work to accounting firms, our philosophy has always been that it is more efficient and effective if we are involved with the preparation and filing of the estate tax return on behalf of our clients. If there is any question from the IRS, we are prepared to discuss each schedule on the return, since we were involved in the entire estate or trust planning and administration, as well as the client’s planning and filing of past gift or income tax returns.”
– Bill McMenamy

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