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Retirement plans can make loans and hardship distributions to wildfire and Hurricane Maria victims

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The IRS has announced that employer-sponsored retirement plans can make loans and hardship distributions to victims (and members of their families) of Hurricane Maria and the California wildfires. In addition, even though IRA participants are barred from taking out loans, they may be eligible to receive distributions under liberalized procedures. Note that the IRS isn’t waiving the 10% penalty that applies to early withdrawals. Contact us for more information.

August 2017 Tax & Business Alert

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SHOULD YOU CONVERT FROM A C CORPORATION TO AN S CORPORATION?

Many private business owners elect to incorporate, turning their companies into C corporations. But, at some point, they may consider converting their businesses into S corporations. This article reviews some of the important considerations associated with this decision. A sidebar looks at the requirements for converting to S status in the first place.

 

COOL DOWN WITH A DIP INTO YOUR TAX RECORDS

A good way to beat the heat during the dog days of summer is to organize your tax records. Granted, it may not be as exhilarating as jumping off the high dive, but a dip into these important documents now may save taxpayers headaches later. This article explains the IRS guidelines for tax-record retention, as well as some important exceptions to consider.

 

IRS PERMITS HIGH-EARNER ROTH IRA ROLLOVER OPPORTUNITY

As highly compensated employee (HCE) 401(k) plan participants approach retirement, a potentially useful tax-efficient IRA rollover technique may be a valuable savings tool. This brief article reviews IRS rules about how HCEs can allocate both pretax and after-tax employee contribution 401(k) assets between standard and Roth IRAs.

 

SHIFTING CAPITAL GAINS TO YOUR CHILDREN

Investors looking to save tax dollars should look to their kids for assistance. Giving appreciated stock or other investments to one’s children can minimize the impact of capital gains taxes. This brief article suggests one strategy involving a stock sale and the purchase of a car.

Certain IRS fees to be paid electronically

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The IRS announced that beginning June 15, 2017, the Pay.gov electronic payment website will be available for taxpayers to make the required user fee payments when requesting certain IRS rulings. After August 15, Pay.gov will become the only permissible payment method for those fees. Online fees can be paid with Form 1128, Form 2553, Form 3115, Form 8716, Private Letter Rulings and Closing Agreements.

The IRS should help taxpayers understand the law

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A national taxpayer advocate recently testified before the Ways and Means Oversight Subcommittee on proposals to reform IRS operations in the House Republican tax reform blueprint. One suggestion: to focus not only on the percentage of calls that the IRS answers but also on “the range of services we want the tax administrator to provide.” The advocate said the IRS “today answers only ‘basic’ tax-law questions during the filing season and doesn’t answer tax-law questions during the other 8½ months of the year.”