July 25th, 2016 by Kim Chen
The IRS has announced that its Electronic Filing Personal Identification Number (e-File PIN) tool is no longer available due to additional cyber attacks on the system. Although it was attacked earlier this year, the e-File PIN tool was retained by the IRS because links to the program were embedded in many commercial tax software products. […]
July 22nd, 2016 by Kim Chen
Last July, the IRS described its intent to eliminate, as of 1/1/17, the staggered five-year determination letter remedial amendment cycles for individually designed retirement plans and limit the scope of the program (see Ann. 2015-19, 2015-32 IRB 157 ). Following up on that announcement, the IRS recently made clarifying changes and modifications to the six-year […]
July 19th, 2016 by Kim Chen
A taxpayer, who intended to exchange an inherited annuity, mistakenly requested a lump-sum payment. After receiving the proceeds, the taxpayer purchased a replacement annuity, using, in part, the funds from the lump-sum payment. Upon receiving a Form 1099-R (Distributions From Pensions, Annuities, Retirement or Profit-sharing Plans, IRAs, Insurance Contracts, etc.) reporting the lump-sum distribution, the […]
July 16th, 2016 by Kim Chen
Written by Ronald Gustason, CPA We all know that college and university tuition, fees and housing costs can be very expensive. In order to minimize the cost of a child or grandchild’s education, most families will want to take advantage of the various scholarship, grant and other student aid opportunities offered by schools, the federal […]
July 13th, 2016 by Kim Chen
A husband and wife owned three rental properties during the years at issue. The wife, a part-time ski instructor, managed the rental properties, was involved in extensive renovation efforts, and maintained contemporaneous logs of the time spent on rental activities. Upon examination, the IRS disallowed the taxpayers’ deductions for general rental expenses, claiming that the […]
July 7th, 2016 by Christian Wynns
A summer job is a classic rite of passage for teenagers. But teen jobs can be a source of aggravation for young workers and parents who aren’t prepared to deal with the potential taxes. When it comes to income, the IRS generally wants its cut, regardless of the earner’s age. But some special tax rules […]
July 3rd, 2016 by Kim Chen
According to the IRS Office of Chief Counsel, cash rewards provided to an employee for participating in a wellness program offered by the employer must be included in the employee’s gross income, although a T-shirt and other de minimis fringe benefits can be excluded under IRC Sec. 132(e) . [The Section 132(e) de minimis exclusion, […]
June 22nd, 2016 by Kim Chen
IR-2016-89, June 17, 2016 WASHINGTON ― The Internal Revenue Service today issued a consumer alert about possible fake charity scams emerging due to last weekend’s mass shooting in Orlando, Fla., and encouraged taxpayers to seek out recognized charitable groups. When making donations to assist victims of last weekend’s terrible tragedy, there are simple steps taxpayers […]
June 20th, 2016 by Christian Wynns
In year-end legislation, the Consolidated Appropriations Act of 2016 made permanent qualified charitable distributions from individual retirement accounts. Because qualified charitable distributions are finally permanent, now’s a good time to review the rules. Benefits A qualified charitable distribution permits annual direct transfers to a qualified charity totaling up to $100,000 of tax-deferred IRA savings. Qualified charitable […]
June 16th, 2016 by Christian Wynns
Convincing your kids to use their summer earnings to invest in an IRA is a pretty tough sell. But it’s an excellent idea and one that might not be too outlandish if you encourage your child simply to allocate a portion of his or her earnings to the cause. Not only will modest contributions add […]
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