Changes to Form W-4 Coming in 2020

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The Form W-4, the Employee’s Withholding Allowance Certificate, determines the amount of Federal Income Taxes to be withheld from an employee’s paycheck. The IRS encourages everyone to use the Tax Withholding Estimator to perform a quick paycheck checkup to protect against having too little tax withheld and facing an unexpected tax bill. After being delayed a […]

IRS Releases 2020 Limits for Pension and Retirement Plans

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The Internal Revenue Service has released cost-of-living adjustments to pension plans and other retirement-related items for 2020 in IR-2019-179. Many of the limits applicable to pension and other retirement plans have increased, however, the limit on annual contributions to an IRA remains unchanged at $6,000. The additional catch-up contribution limit for individuals aged 50 and […]

IRS Offers Settlement to Taxpayers Audited for Micro-Captive Insurance

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The Internal Revenue Service announced in IRS Notice IR-2019-157 that it would send time-limited settlement offers to certain taxpayers who participated in abusive micro-captive insurance transactions and are under audit. Eligible taxpayers will be notified of this offer by a letter containing the applicable terms. The IRS has already sent notices to up to 200 […]

Uncashed Retirement Distribution Checks Taxable in Year of Receipt

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A fundamental tenant of taxation under the United States Internal Revenue Code is that taxable income includes “all income from whatever source derived”.  Thus, under the tax law, all sources of economic enrichment are taxable unless there is a specific provision which works to exclude that item.  Supplementing this tenant is a second fundamental tenant […]

IRS Releases Draft of Simpler 2019 Tax Return for Seniors

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The tax changes generated by the Tax Cuts and Jobs Act (TCJA) and the resultant “simplified” Form 1040 was highly touted by the Trump administration and Republican-controlled Congress as a way to reduce complexity in complying with the tax laws. As a result of the simplification provisions, it was decided that Form 1040-EZ, a shorter […]

Temporary Form 5500 Reporting Relief for Multiple Employer Plans

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Under Section 103(g) of the Employee Retirement Income Security Act ERISA, Multiple Employer Plans (MEPs) are required to file complete and accurate lists of participating employers with their Form 5500, Annual Return/Report of Employee Benefit Plan. Obviously, the very nature of MEPs creates a major compliance challenge. Recognizing that a substantial number of MEPs were […]