SECURE ACT AND MINIMUM DISTRIBUTIONS

Secure Act and minimum distributions. When the Covid pandemic hit, thousands of Americans took money out of retirement accounts to get by and to help children and granchildren get by. In response, the Congress passed an act, and the IRS put it into the Revenue Code, giving Americans better ability to save more for retirement. […]

STIMULUS NEGOTIATIONS AND WHEN THEY RESUME

Stimulus negotiations and when they resume. Congress went on recess last week without passing a new stimulus relief bill, but the growing crisis with the U.S. Postal Service ahead of the presidential election will bring it back into session. House Speaker Nancy Pelosi said she will cut the House of Representatives break short with a […]

SEATTLE FREEZES PAYROLL TAX DEBATE

Seattle freezes payroll tax debate. The Seattle City Council has suspended its consideration of a proposed payroll tax. City Council president M. Lorena Gonzalez (D) noted that a proclamation by Washington State Gov. Jay Inslee (D) limits the topics that public bodies such as the city council can take action on during the pandemic to […]

DIGITAL TAX WILL BOOST STATES REVENUES

Digital tax will boost states revenues. The OECD has presented economic analysis on the potential impact of what it has proposed on international tax reform to address the digitalization of the economy. The OECD has said that the changes would have a significant positive impact on global tax revenues, by boosting corporate income tax revenues […]

THE FLORA RULE NEEDS REFORM

The flora rule needs reform.Taxpayers have the right to appeal a decision of the IRS in an independent forum. This rule which was named after a 1960 U.S. Supreme Court case, limits access to judicial review by those who cannot fully tax their taxes. 28 U.S.C. Section 1346 (a)(1) authorizes a taxpayer to file suit […]

SURPRISING TAX BILL FOR SOME

Surprising tax bill for some. After Mr. Heading’s death, his sons began getting an annual survivor benefit paid to many families who have lost active duty service members–often called Gold Star families. Last year, that benefit was about $29,300. But his son, age 6, owed nearly $7,000 in federal taxes on it. “At first I […]

TRAP CAN SEND SOCIAL SECURITY TO IRS

Trap can send social security to IRS. Retirees rely on Social Security to help them make ends meet. Given that they already paid payroll taxes in order to earn their benefits, retirees often find it shocking when they discover that under certain circumstances, Social Security payments can be subject to income tax. One of the […]

TAX LAW CHANGES

Tax law changes. The Internal Revenue Service has provided guidance for taxpayers and employers about changes from the tax law changes that impact, move related expenses, un-reimbursed employee expenses, and vehicle expenses. The tax law changes suspends the IRS deduction for moving expenses.. Meaning you cannot deduct the use of an automobile as part of […]

TAX REFORM HELPING INCREASE INTEREST RATES

Tax reform helping increase interest rates. President Trumps tax reform helping increase interest rates. That must be the conclusion when one realizes that the economy is on all cylinders and about to go into overdrive. When the U.S. economy fires on all cylinders the eventual result is an overheating of the economic engine, and the […]