Archive

There are times when you have to withdraw money from IRA and then there are times when you are compelled by the tax law to withdraw money from IRA. No matter what the case, you should know about certain penalties, exemptions and requirements. The other day I was talking to a client about IRA withdrawals [...]

As a tax accountant, I meet with clients who try to tally up income and expenses from their rentals couple days before their appointment to finalize taxes. That’s understandable but it is not recommended since there is a possibility that you might not have all the expense records. According to the IRS, the “tax gap” [...]

Internal Revenue Code provides some special tax breaks for active members of the U.S. Armed Forces, including those serving in combat zones. Whether its the battlefield or at home, military families make major sacrifices to keep the nation safe. It is hard for an average person to keep up with all the changes in tax [...]

Like most people, you are probably thinking of converting your traditional IRA, SEP IRA, SIMPLE IRA, or other qualifying retirement plan to a Roth IRA this year. Depending on your tax bracket and financial situation, acting in 2010 could be a good idea. One reason: For conversions made this year, a change in the law [...]

21st century is about information and people who have information benefit by having an even exchange on information technology highway. As Tax, Accounting and Finance professionals, we strive for knowledge and up to date information as that’s what makes us experts in our given fields. To that I say, why not increase credibility by spreading [...]

The 401k investment plan is a common scheme in the United States and the 401k rollover is a large part of the plan. This scheme allows an employee to direct a part of their salary into a pension fund which they can then cash in upon retirement. The additional benefit of this is that the employer can also make contributions to this plan and it is tax-free. But what happens if you change jobs? This is where the 401k rollover comes into play.

If you filed your tax return after the due date and never filed an extension or failed to pay when filing an extension, your explanation will have to be good enough to convince the IRS to abate the resulting penalties. IRS is in the business of only considering “reasonable cause” in most cases. What qualifies [...]

Tax season has come and so have the cyber crooks. IRS ploys are circulating, the latest one involving a legitimate looking email from the IRS that states that you can get your tax refund on a Visa or a Mastercard. It asks for your credit card number, your social security number, credit card expiration dates, card verification value numbers, amount shown on your tax return, filing status and other personal data.

The legal form uner which you operate your business is called “Business Entity.” Some examples of legal business entites are C Corps, S Corps, LLCs etc. Maybe when you first started your business you organized as a traditional C corporation to obtain the liability protection offered by a corporate structure. Perhaps you operate as a [...]

If the money you borrowed is cancelled by your lender and you no longer have to pay it back, you will receive a tax information statement you’ve never seen before. Form 1099-C, which lenders send to you and to the IRS, shows the amount of the cancelled debt — an amount that may be taxable [...]