If you’re thinking of converting all or part of a traditional IRA to a Roth… Know that Roth conversions done after 2017 are irreversible. Prior to 2018, you had until Oct. 15 of the year following the conversion to undo the switch and eliminate the tax bill by transferring the funds back to a traditional […]
Shareholder basis in S corporations is a third big enforcement priority. Owners of S corporations can deduct losses only up to their stock basis and loans that they make to the company. IRS knows that compliance in this area is deficient. IRS is conducting audits in this area. Exams are at the shareholder level. Agents […]
Boosting tax enforcement on the S corporation front is a goal of IRS… As shown by campaigns from its Large Business and International Division that focus on risk areas in which IRS has found taxpayer compliance to be lacking. One targets distributions by S corporations. Among some of the concerns: S firms that fail to […]
Seniors age 65 and older are getting a new tax return to fill out…the 1040-SR. IRS released a draft of the form for 2019. It has the same line items and schedules as the regular 1040, but includes larger-print text and other alterations for aging eyes. One helpful inclusion is a standard deduction chart that’s […]
Keep this in mind if you’re in a partnership that owns a single-member LLC: You could owe self-employment tax on the LLC’s income. Individuals who own 100% of an LLC that elects to be a disregarded entity for tax purposes pay SECA tax on self-employment earnings from the LLC’s activities. Temporary regs issued in 2016 […]
