29. January 2011 by admin.

Wednesday, January 26, 2011

IRS Names 10 New Members to IRPAC

The Internal Revenue Service today announced the selection of 10 new members in 2011 for the Information Reporting Program Advisory Committee (IRPAC).

“Members of IRPAC provide industry perspective and recommendations that assist the IRS in making decisions about third-party information reporting, which is important to sound tax administration,” said IRS Commissioner Doug Shulman.

The new appointees will join 14 returning members who are in the second or third year of their three-year terms.

The following people have been appointed to serve on the committee:

Susan R. Boltacz, JD, CPA of Atlanta, Ga. Boltacz is a Group Vice President, Tax Counsel and Director of Tax Information Reporting at Sun Trust Bank. She has been advising on tax information reporting issues and implementing tax information reporting requirements for financial services and telecommunications industries for over 21 years. She is a member of the Tax Section of the American Bar Association.

Duncan W. Brennan, of Washington, D.C. Brennan is Manager of the Legal Support Group at Burt, Staples & Maner, LLP. He is experienced working with domestic and nonresident withholding and information reporting and holds a Masters of Public Policy Degree.

Julia K. Chang, CPA, of Pacific Palisades, Calif. Chang has worked in the accounting field for over 30 years, specializing in taxation. She is a member of AICPA and the California Society of CPAs.

Terrance C. Coppinger, CPA, of New York. Coppinger is a Director at Deloitte Tax, LLP. He has been advising clients on tax information reporting for more than 15 years. He is a member of the Tax Section and the Personal Financial Specialist Section of the AICPA, and the IRS Relations Committee of the New York State Society of CPAs.

Rebecca M. Harshberger, a Certified Payroll Professional of Burbank, Calif. Harshberger is Director, Payroll Tax Administration at GEP, Administrative Services, Inc. She has over 10 years experience in tax information reporting. She is on the Board of directors of the Los Angeles Chapter of the American Payroll Association and is a member of APA.

Anne W. Jetmundsen, CPA, of Tampa, Fla. Jetmundsen is a Tax Advisor to the University of South Florida. She advises the University on payroll, purchasing and accounts payable and information reporting obligations. She is Chair of the Taxation Subcommittee of the Inter-institutional Committee on Finance and Accounting (ICOFA) and a member of the Tax Council of the National Association of College and University Business Officers (NACUBO).

Tony Y. Lam, JD, CPA, of Owings Mills, Md. Lam is an Associate Tax Counsel at T. Rowe Price Associates, Inc. He addresses the legal requirements of tax information reporting and withholding for millions of investor accounts and retirement plan participant accounts both domestic and foreign. He is a member of the Investment Company Institute’s Tax Committee.

Michael M. Lloyd, JD, CPA of Washington, D.C. Lloyd is a Member/Counsel/Senior Associate of Miller & Chevalier Chartered. He advises clients in the areas of tax and employee benefits with a focus on cross-border payment reporting and withholding, domestic information reporting, employment tax reporting, fringe benefits, executive compensation and penalty abatement. He is a member of the AICPA and the Section of Taxation of the American Bar Association.

Jeffrey N. Mason, JD, of Salem, N.C. Mason is Tax Counsel, Corporate Tax Department at Wells Fargo & Company. He has 10 years experience ensuring compliance with information reporting requirements in the banking industry. He is a member of the SIFMA Tax Compliance Committee.

Lonnie Young, CPA, of Lake Mary, Fla. Young is owner of Young & Company, LLC. His firm prepares corporate, partnership, trust and individual returns as well as payroll information returns. He is a member of the AICPA and the National Society of Accountants.

The IRPAC was established in 1991 and focuses on information reporting issues. The committee’s purpose is to provide an organized public forum for discussion of relevant tax administration issues between IRS officials and representatives of the public.

Posted in Payroll Tax, Newsletter Topics, Retirement Accounts, International Taxation, Sub S Corporations, Income Tax, LLC's, General | 2 Comments »

27. December 2010 by admin.

A 2-year estate tax rate set at 35% with an exemption for estates valued at up to $5 million

Posted in Retirement Accounts, Income Tax, General | 1 Comment »

11. September 2010 by admin.

Taxable alimony and separate maintenance payments received by an individual are treated as compensation for IRA purposes.

For a summary of what compensation does and does not include, see Publication 590 - Table 1-1 on page 4.

Posted in Retirement Accounts, Ask Question or Comment, Income Tax, General | 3 Comments »

16. January 2010 by admin.

Some confusion out there about Roth changes.  The following are effective in 2010….

The tax that has to be paid when you  CONVERT a REGULAR IRA to a ROTH IRA can be paid either

• all in 2010
• all in 2011
• OR 1/2 in 2011 and 1/2 in 2012

Additionally, the limits on Roth contributions do not exist for 2010.

It would seem like a good deal to wait and pay 1/2 in 2011 and the other half in 2012 BUT that may not be the best answer.  We anticipate the highest marginal tax rate will go up (anybody want to bet it don’t?) in the next two years.  That means the same amount of income might be taxed as at higher rate.

 It could be taxed at a higher rate because you are going to have a better year and your tax situation calls for a higher rate than the one you are in now… regardless of the increase in tax rates.

Also, if you have Net Operating Losses in either 2010 or 2011, these may be used to offset the tax on the conversion and it worth more in 2010 than in 2011 or 2012.

That’s alot of concenses tax info on Conversions to Roth.  If you have any questions, please post a comment on this blog, or contact us at USATaxHelp.com.

Happy New Year!

Posted in Retirement Accounts, Income Tax | 1 Comment »

7. December 2009 by admin.

If you participate in an Employer sponsored Simple IRA, you can put an max of $11,500 in 2009 PLUS $2,500 for being over age 50.  That total is $14,000 maximum as an employee deferral.  Additionally, the employer has some matching options.  By far we have found the most popular Employer matching option to be… the employer matches up to the lower of 3% of your wages or whatever you put in as an employee.

Whatever is withheld from the paycheck must be withheld in no later than the end of December for 2009 and paid in by the employer no later than January 31^st, 2010.

i.e.  Your wages for 2009 are $36,000 x 3% = $1,080.  If you only contribute $800, Employer can only put in $800.  If you contribute $3,000, Employer can only put in $1,080.

There is no commitment to put to the maximum, nor is there a commitment that you continue to participate in a subsequent year.

Note:  Participation in an employer sponsored plan subjects you to limits on Regular IRA contributions.  Contact us for more info at www.USATaxHelp.com

Posted in Retirement Accounts, Payroll Tax, Sub S Corporations, LLC's, Income Tax | 1 Comment »

7. December 2009 by admin.

$5,000 into a REGULAR IRA is the max for a single individual UNDER age 50 who does not participate in an employer sponsored retirement plan and still receive a tax deduction.  Add $1,000 if over age 50.

Can contribute till April 15^th, 2010 for 2009.  Note:  There is NO tax deduction for contributing to a ROTH IRA.  The benefit of the ROTH is the earnings are not taxed during the growth phase of the investment (same as any retirement account) BUT the gains when taken out in retirement are NOT taxed.

The amount you or your spouse can contribute may be reduced depending on your Adjusted Gross Income.  Contact us if you need more details at www.USATaxHelp.com

Posted in Retirement Accounts, Sub S Corporations, LLC's, Income Tax | 1 Comment »

7. December 2009 by admin.

$5,000 into a REGULAR IRA is the max for a single individual UNDER age 50 who does not participate in an employer sponsored retirement plan and still receive a tax deduction.  Add $1,000 if over age 50.

Can contribute till April 15^th, 2010 for 2009.  Can file your tax return WITH the Regular IRA as if it has already been made, then use the refund to make the actual REGULAR IRA contribution as long as you do it before April 15, 2010.

The deductible amount if you or your spouse participate in an employer plan may be reduced depending on your Adjusted Gross Income.  Contact us if you need more details at www.USATaxHelp.com

Posted in Retirement Accounts, Sub S Corporations, LLC's, Income Tax | 1 Comment »