Tax

IRS Grants Relief to Taxpayers Who Forgot To Re-Characterize Converted IRAs

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by robertkeebler     May 18, 2012      0.0 (0) In PLR 201218037, the Internal Revenue Service (the Service) addressed whether it would allow taxpayers who converted their SEP and Traditional IRAs to Roth IRAs additional time to re-characterize after their CPA discovered their modified gross income exceeded the limit for conversions, reported the IRAs as re-characterized, but failed to not

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9th Circuit Rules IRAs Cannot Be An S-Corp Shareholder

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by robertkeebler     March 30, 2012      0.0 (0) In Taproot. v. Commissioner the Ninth Circuit Court of Appeals determined that a Roth IRA (and traditional IRAs) is not an eligible S corporation shareholder.   Taproot is a Nevada corporation which elected S corporation status in 2003. In 2003, Taproot’s sole shareholder was a custodial Roth IRA account for the benefit of Paul

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Baucus Proposal To Liquidate IRAs Within Five Years Of Death Meets Its Own Death

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by robertkeebler     March 21, 2012      0.0 (0) In one of the more perplexing legislative chain of events it appears that Senator Max Baucus’ proposal that IRAs must be liquidated within five years of death has met its own death, at least for now.

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Tax Scam Alerts

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by lisagray     March 20, 2012      0.0 (0) It’s tax time. And many of your clients are scrambling to get forms together, fund that IRA they set up in December, or get the cost basis of grandma’s stock they sold to pay her retirement home expenses. It’s also a prime time of vulnerability. Scam artists are everywhere; they’re not just in your inbox. They’re

Preferential Tax Treatment Comes Under Fire

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by lisagray     March 16, 2012      0.0 (0) The media focus on Mitt Romney’s wealth and the amount of tax he pays brings attention to the difference in capital gains and ordinary income. The two are quite different, starting with their tax rates. Capital gains are taxed at a rate of 15%; ordinary income carries a top rate of 35%. Deciding which category income falls under is the t