by Leif Jensen | Dec 18, 2011 | General |
CPA’s since the very beginning keep their clients information confidential. This is also enforced by many state laws. CPA’s take great steps to ensure the safety of client’s information. I have installed a security system in my office and where I stall files off...
by Leif Jensen | Dec 18, 2011 | General |
According to IRC §1411 for tax years beginning January 1, 2013 certain trust and estates will be subject to an additional 3.8% on investment income if their MAGI exceeds the following thresholds. The Medicare contribution tax for trusts and estates applies if the...
by Leif Jensen | Dec 18, 2011 | General |
IRC§152(e) clarified the meaning of custody for dependency purposes. As usual this is not always a good thing; in general typically a custodial parent can sign a written release for the noncustodial parent may claim the child. Now if the child is (court) emancipated...
by Leif Jensen | Dec 14, 2011 | General |
The various deadlines for retirement plans, IRAs and Coverdells are noted below. Generally, employer plans must be established (applications executed) by Dec. 31 to get a 2011 deduction. This includes Keoghs (these still exist?). For SEPs, you have until the due date...
by Leif Jensen | Dec 13, 2011 | General |
The IRS just won a levy case. The company was ignoring an IRS levy on the wages of an employee which is never a good idea. The employer that did so is liable for the worker’s overdue income taxes, a court says, along with a 50% penalty. The mental breakdown of the...
by Leif Jensen | Dec 12, 2011 | General |
A keying error while entering data in a tax software program can excuse a penalty, according to the Tax Court says. A filer got a Form K-1 from his mother-in-law’s estate showing a large amount of interest income. When he used a tax software program, he entered the...
