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Roth IRA Aging Requirement

peter flourney may

You probably know that a Roth IRA can provide tax-free retirement income, but did you know the account must be “aged” before its earnings can be withdrawn tax-free? Unlike traditional IRA accounts, contributions to Roth IRAs provide no tax deduction when they are made, and unlike traditional IRAs, earnings from Roths are tax-free if a distribution is what the IRS refers to as a “qualified distribution.” A qualified distribution is one for which 1)The account has satisfied a five-year aging rule AND 2) Meets one of the following conditions:

The distribution is made after the IRA owner reaches the age of 59.5, The distribution is made after the death of the IRA owner,The distribution is made on account of the IRA owner becoming disabled, OR

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Offshore Banks Liability For Client’s Tax Evasion

ron marini may 26

According to Law360 Offshore Tax Havens and Nominee Entities pose a significant regulatory and compliance risks to international financial institutions.

Regulatory authorities around the world, including the U.S. Department of Justice, intensified their investigations into offshore tax havens after the April 3, 2016, publication of names associated with the Panamanian law firm Mossack Fonseca, widely known as the “Panama Papers,” and the firestorm of public outcry.

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Complimentary Webinar For Tax Professionals The 5 Secrets To A Million Dollar Tax Resolution Practice

m 5.24

If you have ever met Michael Rozbruch, you will understand why everyone gets so excited attending one of his webinars. Michael is inviting you to attend his next LIVE TRAINING session for free! There are a limited number of seats available for tax advisers who want to learn how to attract highly qualified clients to your tax practice. This training is 100% free and available from anywhere you have access to the internet. You must act now to save your spot as the technology restrictions limit the number of complimentary online attendees.


Click HERE to Register


Revised Offer in Compromise Procedures—Not Current on ALL Tax Filings No OIC

ron marini may

The IRS is taking a close look at the Offer in Compromise program recently.

On March 30, 2016 we posted IRS Revises Offer in Compromise Booklet and Application where we discussed that the 2016 revision to Offer in Compromise Booklet Form 656-B will is available for download. The booklet contains necessary forms and instructions for submitting an Offer in Compromise. Use of earlier versions may result in a delay in the processing of Offer applications.

Now the IRS has released its new policy that effective immediately, the IRS will return newly filed Offer in Compromise (OIC) applications in cases where the taxpayer has not filed all required tax returns (e-News for Tax Professionals 2016-19- May13, 2016). Any fees included with the OIC will also be returned.

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Sharing Economy – Need For Tax Literacy

Annette Nellen 5.25

The House Small Business Committee held a hearing today (May 24) (part 1 of 2) on “The Sharing Economy: A Taxing Experience or New Entrepreneurs.” Part 2 is scheduled for May 26 with National Taxpayer Advocate Nina Olson speaking. A focal point of the hearing per the posted testimony was difficulties freelancers face in the sharing economy because they don’t fully understand their tax obligations.
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Form 1098-T Now Required When Taking Education Credits

john stancil 5.24

Not surprisingly, tax fraud is rampant in the area of education credits and the tuition deduction. According to the Treasury inspector General for Tax Administration (TIGTA) 3.6 million taxpayers claimed over $5.6 billion in potentially
erroneous education tax credits in 2012. Of over 10 million claims for the American Opportunity Tax Credit, 2.5 million were not supported by a Form 1098-T. As a result of this report, the IRS will audit more returns on which education credits are taken. Also of interest in the report is that in 2013 there were 2,300 claims for individuals under the age of 14 and 3,000 over age 80.

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Student Gets Caught By The IRS On Education Credit

Harold Goedde 5.24

The credits for education are based on eligible expenses paid in the current year for academic periods beginning in the current year and/or the first three months of the following year. In a recent case, a student paid tuition of $5,895 in December 2011 for the spring 2012 semester that started February 1.

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Tax Job – Tax Accountant/Tax Senior, Dallas, Texas

kat 5.25

Tax Senior-Tax Administrator- Dallas, Texas

Established and growing tax and financial practice seeks Tax Senior for highly established tax and financial planning practice. We have high net worth clients who require  tax preparation, bookkeeping and financial services we provide them. This opportunity is ideal for a person with 3-10 years of tax preparation, tax accounting and bookkeeping(Quickbooks) experience.

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Complimentary Tax Webinar – Preparation Form 8621 Calculator

Mary Beth Lougen May 17th 2016

On June 2, 2016 by popular request, many people asked that the Form 8621 Calculator Webinar be offered a second time! The complimentary webinar was hosted by TaxConnections and presented by Mary Beth Lougen of American Expat Tax Services and George Kiss of American Expat Tax Tools. Rarely do you experience a webinar where tax professionals wanted more information on  the great tool that literally takes off 22 hours of preparation time on a passive foreign investment corporation.

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Tax Compliance Alert: New Administrative Authority Issued Affecting Automatic Accounting Method Change Filers

Peter J Scalise May 17 2016

On May 5th, the Internal Revenue Service (hereinafter the “Service”) issued Rev. Proc. 2016-29, which outlines automatic accounting method changes and provides administrative procedures for electing them. Consequently, filers of Form 3115 entitled “Application for Change in Accounting Method” filed on or after May 5, 2016 must now follow this updated form of administrative authority. As it should be duly recalled, a revenue procedure is a statement of procedure that affects the rights or duties of taxpayers or other members of the public under the Internal Revenue Code (hereinafter the “Code”). Similar to Revenue Rulings, Revenue Procedures are less authoritative than Temporary and Final Treasury Regulations. Regardless, Revenue Procedures are binding on the Service and taxpayers alike and should be adhered to for purposes of assessing tax return filing positions under the Code and Circular 230.

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U.S. Department of Justice Gets Its 1st FATCA Conviction!

Ron Marini May 17 2016

DoJ announced on May 9, 2016, that Gregg R. Mulholland, a dual U.S. and Canadian citizen of San Juan Capistrano, California and Vancouver, Canada, Age: 46 and secret owner of Legacy Global Markets S.A. (Legacy), an offshore broker-dealer and investment management company based in Panama City, Panama, and Belize City, Belize, pleaded guilty to money laundering conspiracy for fraudulently manipulating the stocks of more than 40 U.S. publicly-traded companies and then laundering more than $250 million in profits through at least five offshore law firms.

When sentenced, Mulholland faces up to 20 years in prison.

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Changes in Your Mortgage Interest Statement

John Stancil May 17 2016

Next January when you receive your mortgage interest statement from your lender, you might notice some changes on the Form 1098. Beginning in 2016, the mortgage interest statements must reflect the outstanding principal balance, the loan origination date, and the address of the property that secures the mortgage. All of this is information that has not traditionally been included on the mortgage interest statement. However, due to the complexity in the laws in regard to the deductibility of mortgage interest, these are welcome changes. In a perfect world, everything would be simple and there would be no need for this information, but we must play the hand we are dealt. Let’s look at each of these requirements and the reasons for each.

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