Monthly Archives: August 2014

IRS Streamlines the Process for Setting Up Tax-Exempt Charities by Adam Cohen

Posted on August 28, 2014 by Adam Cohen

Small charities with annual gross receipts of $50,000 or less and assets of $250,000 or less may now apply for 501(c)(3) tax-exempt status more quickly and easier than previously required. On July 1, the IRS introduced Form 1023-EZ, a streamlined method to enable smaller groups to apply for exemption from paying taxes and accepting tax-deductible […]

IRS to Limit Direct Deposit Refunds to Combat Fraud by Joseph L. Saka

Posted on August 19, 2014 by Joseph Saka

In an effort to combat fraud and identity theft, the IRS will limit the number of direct deposit refunds it pays to each taxpayer’s bank account or to a prepaid debit card to three, beginning with the 2014 tax season. Beginning in January 2014, the IRS will covert fourth and subsequent refunds to paper checks […]

Not All IRAs are Protected in Bankruptcy Proceedings by Adam Cohen

Posted on August 14, 2014 by Adam Cohen

The Supreme Court recently made a distinction between Individual Retirement Accounts (IRAs) that an individual owns and funds during his or her lifetime and those that one inherits from a family member. Specifically, the court excluded inherited IRAs from bankruptcy protection, arguing that such accounts lack the retirement-planning aspects of owner-funded plans. Moreover, because beneficiaries […]

New Guidance on Miscellaneous Deductions for Estates and Non-Grantor Trusts by Rick Bazzani

Posted on August 11, 2014 by Rick Bazzani

The Internal Revenue Service recently issued final regulations specifying which costs incurred by estates and non-grantor trusts are subject to the 2 percent floor for miscellaneous deductions. The revised guidelines, which go into effect for tax years beginning after Dec. 31, 2014, aim to clarify treatment of estate-related costs. In the most basic interpretation, the […]

Five Strategies for Responding to IRS Audits by Edward Cooper

Posted on August 07, 2014 by Edward Cooper

When taxpayers receive notice from the Internal Revenue Service (IRS) advising them that the agency has selected them for an audit, reactions can range from slight anxiety to pure terror. Before diving headfirst into panic mode, taxpayers should consider that an IRS examination is not an investigation into alleged criminal activity. More often, it is […]

The ABCs of Required Minimum Distributions for IRAs by Jack Winter

Posted on August 05, 2014 by Jack Winter

Individual Retirement Accounts (IRAs) offer taxpayers a simple method to save for retirement with pre-tax dollars and allow those contributions to grow tax-deferred over time. Account holders incur tax liabilities penalty-free when they withdraw funds at age 59 ½, or when they begin taking the minimum distributions required by law when they reach age 70½. […]