Tag Archives: taxes

New 60-day IRA Rollover Rules Spell Trouble for Some

retirementEarly this year, the U.S. Tax Court made a surprise ruling (Bobrow v. Commissioner) related to the 60-day IRA rollover rules. The ruling, which came as a shock to individuals and practitioners alike, completely contradicted the IRS’ previous position, the instructions in Publication 590 and years of practice.

Prior to the ruling, individuals could take distributions from their IRAs and, if they deposited the amount(s) or some portion thereof back into an IRA within 60 days, not have a taxable distribution. Previous guidance held that an individual could have multiple 60-day rollovers in a 12-month period if they had multiple IRAs. The new guidance now

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Getting QuickBooks Ready for Your CPA

taxIt’s the beginning of December and finalizing the books for the year is already on your mind.  What can you do before sending your QuickBooks file to your CPA to make it easier for them to prepare the annual financial statements and tax returns?  Here is a brief checklist to simplify the process:

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Back-up Withholding and Form 1099

Why Your 1099 Filing Could Trigger an IRS Notice

cautionDoes your business solicit the services of independent contractors, freelancers, or other non-employee workers? If so, the IRS may have its sights on you. While much of the economy has been focused on the healthcare-related effects of the Affordable Care Act (ACA), there were several supplemental programs and provisions that were bundled with the ACA that have been largely overlooked.

One such provision is the expansion of Form 1099 reporting. Previously, under the ACA, corporations, partnerships, and sole-proprietorships were required to prepare Form 1099 for any vendor from whom they purchased more than $600 of goods or services. After much criticism, this provision was later repealed; however, this hasn’t deterred the IRS from closely scrutinizing and examining Form 1099.

Over the last year, there has been an increase of IRS notices related to

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IRS Phone Scam Resurgence

IRS Phone ScamThe IRS released information of a new phone scam, which over the years has gotten more sophisticated.  The IRS never ever emails taxpayers and, with rare exceptions, does not phone taxpayers. It’s astounding how many people fall for these tactics and end up with identity theft or a cleaned out bank account.  If you have an IRS issue, you will get a letter.  If you have a big IRS issue, you may get a personal visit.  If in doubt, ask for the alleged agent’s name and IRS ID number, contact telephone number, and what division within the IRS he/she is calling from.  Advise that individual that you have

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IRS Issues Guidance on its Operations During the Government Shutdown

IRS Government ShutdownThe IRS’s brief announcement concerning its operations while the government is shut down has been updated to address collection and enforcement issues.

Since the shutdown, the IRS is not issuing new liens or levies or taking action on existing liens.  Any collection notices sent out are automatically generated by the IRS’ computers and continue to be sent to taxpayers.  However, the IRS will not take enforcement action until the government resumes operations.

The IRS has stated that, in non-criminal cases where the agency determines that immediate action is needed to protect the government interest,

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