Tax reform, lower rates among top legislative goals

Tweet Tax rates should be no higher than 25% for both individual and corporate taxpayers, Rep. Paul D. Ryan, R-Wis., told members of the AICPA’s spring Council meeting Tuesday in Washington. Ryan, chairman of the House Ways and Means Committee, federal budget architect, and a former vice presidential candidate, outlined his priorities since taking over [...]

IRS Marks National Military Appreciation Month; Free Tax Guide Focuses on Tax Benefits for Members of the Military

Tweet May is National Military Appreciation Month, and the Internal Revenue Service wants members of the military and their families to know about the many tax benefits available to them. Each year, the IRS publishes Publication 3, Armed Forces Tax Guide, a free booklet packed with valuable information and tips designed to help service members [...]

FATCA Pressures Taxpayers to Reveal Accounts to IRS

Tweet The Foreign Account Tax Compliance Act is meeting with some success in prompting foreign banks to disclose the holdings of U.S. taxpayers to the Internal Revenue Service, according to a former IRS official. FATCA was included as part of the HIRE Act of 2010 and requires foreign financial institutions to reveal the assets of [...]

Employers To Chip In More 401(k) Dollars

Tweet Employees are being told to save more and more in their workplace 401(k)s. What about employers chipping in more? In a recent survey of global employers, Vanguard found that 57% of global employers expect to increase the level of company contributions to their employees’ 401(k) accounts in the next five years, and another 14% [...]

IRS intends to amend rules so refunds match foreign withholding payments

Tweet The IRS on Tuesday proposed to amend its regulations so that taxpayers that are subject to withholding under Secs. 1441 through 1443 (chapter 3 of the Code, imposing withholding tax on nonresident aliens, foreign corporations, and foreign exempt organizations) or Secs. 1471 and 1472 (chapter 4 of the Code or FATCA) and that make [...]

When It’s OK to Tap Your IRA

Tweet You’ve been saving diligently for your retirement, but now you need some of that cash to cover today’s expenses. Can you get to it without incurring Uncle Sam’s tax wrath? In some instances, the answer is yes. The tax laws governing early distributions are toughest when it comes to traditional IRAs, but they also [...]

How the Mega-Rich Avoid Paying Taxes

Tweet It is rumored that some of the wealthiest Americans manage to pay less in taxes than some of their employees. They achieve this by one of two methods: doing their own financial and tax planning or paying someone to do it for them. Simple, isn’t it? The point is that the rich are able [...]

Index, Active, or Both: 8 Questions to Help You Decide

Tweet As you think through your own portfolio’s allocations to active and passive management (and I would put individual-stock investments under the “active management” umbrella), ask yourself the following questions. Question 1: How big a concern is tax efficiency? Major concern/investing in taxable account: Favor equity index funds. Not a concern/investing primarily in tax-sheltered accounts: [...]

Ten Facts About Fighting IRS Tax Bills

Tweet Everyone must pay federal income taxes, but you can contest many IRS tax bills. When you disagree with the IRS, procedure is important. Pay attention to the order in which notices arrive and the specific ways you can respond. Here are 10 things you should know: 1. Most Audits are by Correspondence. Most audits [...]

Strategies for Minimizing the Impact of Income in Respect of a Decedent

Tweet Estates, Trusts & Gifts Advisers focused on private clients commonly overlook planning for the income and estate taxes on income in respect of a decedent (IRD). This item discusses issues created by IRD and presents strategies and planning insights to assist taxpayers and their tax advisers with minimizing its impact. IRD includes items of [...]

Treasury Official Sees Need for Business Tax Reform

Tweet “The business tax system today is inefficient, overly complex, and too riddled with loopholes,” said Mark Mazur, assistant secretary for tax policy at the U.S. Department of Treasury. So much so, in fact, that it can’t fulfill its function to be a world-class system, he noted. Mazur, speaking Tuesday at the 15th Annual NYU/KPMG [...]

Why You Should Dip into Your Taxable Account to Max Out Your IRA

Tweet Investing in an IRA provides a substantial tax benefit over a regular investment account because you defer or completely avoid paying taxes on growth. You probably know that. But the magnitude might surprise you. Tax drag, or the amount you pay annually in taxes, can reduce your investor returns by an estimated 1.36% in [...]

Strategies to minimize investment tax liability

Tweet As taxpayers wrap up their returns for 2014, many have been faced with paying higher taxes on their investments. The run-up in the markets over the last few years has been a contributing factor in many cases, leaving many investors scratching their heads as to what to do. With tax rates on capital gains [...]

Ten Key Tips How To Respond To An IRS Notice

Tweet The IRS knows that when you receive an IRS envelope in the mail, you may get a knot in the pit of your stomach even before you open it. So if you get a dreaded IRS notice or letter, here are some simple tips to help you through the maze. 1. Understand You Are [...]

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