New Law Allows In-Plan Rollovers to Designated Roth Accounts

The Small Business Jobs Act of 2010 permits employers to amend their §401(k) or §403(b) plans to allow participants to transfer an eligible rollover distribution (ERD) into their designated Roth account in the plan if the transfer is of an ERD: 1. made after

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Posted in IRA, Retirement

IRS Provides Relief for Homeowners with Corrosive Drywall

The Internal Revenue Service today issued guidance providing relief to homeowners who have suffered property losses due to the effects of certain imported drywall installed in homes between 2001 and 2009. Revenue Procedure 2010-36 enables affected taxpayers to treat damages

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Posted in Casualty Loss, Deductible Expense, Tax Problems & Requests, Tax Relief

Guidelines for “Political Activities” by Churches and Pastors

Lobbying activities may expose churches in some states to election law register and reporting requirements as a political committee. Many of these statutes are unconstitutional because they expose churches to intrusive regulations for a very small amount of lobbying.  The

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Posted in Charitable Contribution, Church Pastor Religion, Deductible Expense, Disallowed Expenses, Tax Guidance & Preparation, Tax Problems & Requests

IRS Form W-12, IRS Paid Preparer Tax Identification Number (PTIN)

All people making money preparing taxes must be registered with the IRS. If your paid tax return preparer is not registered with the IRS he/she is perpetrating fraud which will cause you future headaches. Don't mess around with this. The

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Posted in Enrolled Agent, Tax Preparer, Tax Problems & Requests, Tax Relief, Taxpayer Identification Number

Education Expenses – Are They Tax Deductible?

According to IRS Publication 970, Tax Benefits for Education, questions exist to help determine if education expenses are tax deductible. These questions include: Is the expense associated with the education 'work related'? It must be to be deductible. Is the

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Posted in Child Tax, Deductible Expense, Dependent, Disallowed Expenses, Family, Student Loan, Tax Credit, Tax Deductible Expenses, Tax Relief

How to Request a Copy of Your Colorado Tax Return

The Colorado Department of Revenue understands some taxpayers who have been directly affected by the recent fires in our state will need to request photocopies of tax returns that have been lost or destroyed or will not be able to

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Posted in Colorado Department of Revenue

IRS Grants Tax-Exempt Status to Paranormal Group

The IRS sometimes grants tax-exempt status to questionable-sounding groups, but paranormal research? What is this world coming to? All I have to say is your bogeyman still needs a valid social security number to be considered a deductible dependent. On

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Posted in Charitable Contribution, Non-profit

Kiddie Tax Example Question

Question: Sam, age 15, came into your office to have his taxes prepared. He has wages of $6,500, interest income of $1,500, and dividend income of $5,500. He is claimed as a dependent by his parents, however his parents have

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Posted in Child Tax

Charitable Deduction of Parochial School Tuition

Meir Katz (J.D. 2010, Georgetown) has posted The Economics of § 170: A Case for the Charitable Deduction of Parochial School Tuition on SSRN. It is fascinating. Here is the abstract: That payments for parochial school tuition are not deductible

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Posted in Charitable Contribution, Child Tax, Education Expense, Family, Student Loan, Tax Deductible Expenses, Tax Problems & Requests, Tax Relief

Audit Reconsideration Request

'Audit reconsideration' requests the IRS to reconsider action it has taken with the taxpayer by allowing the taxpayer to present information that may not have been available to the IRS previously. This procedure is used when an assessment has been

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Posted in Audit Reconsideration, Audit Technique Guide, IRS Appeal, IRS Audit, IRS Collections, IRS Enforcement, IRS Examination, IRS Levy, IRS Lien, IRS Mediation, IRS Penalties, IRS Penalty and Interest Abatement, Tax Problems & Requests, Tax Relief
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