Are your clients aware of the IRA Required Minimum Distribution (RMD) rules when they reach age 70 ½? A good planning opportunity is to reach out to those clients who are subject to the RMD. Learn the rules of IRA Required Minimum Distributions If a taxpayer will be age 70 1/2 or older by the end of 2014, they must withdraw a minimum amount — a Required Minimum Distribution — from their non-Roth IRAs for 2014. Withdrawals are not required from Roth IRAs until after the owner’s death. Required Minimum Distribution deadline The 2014 RMD must be taken by Dec. 31, 2014. If the taxpayer reaches the age of 70 1/2 in 2014, they can delay taking the 2014 RMD until April 1, 2015. They must also take the 2015 RMD before December 31, 2015 so delay will cause two distributions to be issued in the same year. Required Minimum Distribution amount The 2014 RMD is the account balance as of the end of 2013 divided by a distribution period from the IRS’s “Uniform Lifetime Table.” A separate table is used if your spouse is the sole beneficiary and is 10 or more years younger. These worksheets can be used to … Read More
In a recent speech before a group of tax practitioners Koskinen told tax preparers and others who are frustrated with long wait times on the service’s phone lines to call their member of Congress. Koskinen said, “Congress needs to hear and understand the impact of the funding cuts. As I tell people on Capitol Hill, we are the only agency still operating at the post-sequester level.” The IRS budget was cut 7 percent in Fiscal Year 2014, even as the agency took on the burden of administering the tax provisions of the Affordable Care Act. This is “the biggest challenge facing the IRS,” according to Koskinen. “Congress is starving our revenue-generating operation,” he explained. “If voluntary compliance with the Tax Code drops by 1 percent, it costs the U.S. government $30 billion per year. The IRS annual budget is only $11 billion per year.” While IRS budget cuts may have been driven partially by outrage over the tax scandal involving targeting of conservative groups last year, Koskinen emphasized that “this was a mistake that should never happen again. My job is to make sure the public knows that.” Koskinen also spoke about the IRS voluntary education program the agency plans … Read More
Libra Services has released LibraTax, a new software solution that lets individuals and businesses that have transacted business in Bitcoin and other digital currencies to calculate their tax obligations. The software calculates reportable capital gains on digital currencies following guidance released by the Internal Revenue Services in March. With its first-to-market and comprehensive solution, Libra automates the accounting process by retrieving the user’s transaction history from the public ledger (called the blockchain) and synchronizing that with the digital currency’s historical fair market value. The software accommodates all types of taxable events, including income, gifts and donations. “We’re excited that these easy-to-use, automated tools for consumers, tax professionals and accounting firms are finally available,” said Libra founder and CEO Jake Benson.
The NFIB has put together an infographic showing how small business owners manage their time. NFIB members were polled as to how they spent their work day and free time.
2015 Napa Special Topics Workshop – July 20-22, 2015 NSTP members and guests were in attendance in Williamsburg and Napa at workshops featuring Paul La Monaca, Barry Iacono, and Nina Tross covering topics regarding estate and trust tax reporting, financial planning, foreign tax issues, employee vs. independent contractor, and the Affordable Care Act. In their off time the attendees enjoyed the history and charm of Colonial Williamsburg along with Busch Gardens Amusement Park, and the plethora of wineries and spas in the Napa and Sonoma Valley. We look forward to seeing you in 2015 in Williamsburg over the dates of June 24 – 26 where we will celebrate both the 15th anniversary of the Williamsburg seminar and the 30th anniversary of the NSTP. The Napa 2015 dates of July 20 – 22 will be proceeded by a wine and culinary tour on Sunday, July 19th. 2015 Williamsburg Special Topics Workshop – June 24-26, 2015