Individual Tax Updates

IRS Suspends Tax Refunds and Tax Court Closes during Government Shutdown

By Dennis G. Koch / October 5, 2013

In yet another administrative move designed to make the government’s partial shutdown as painful as possible for ordinary citizens, The Internal Revenue Service has temporarily stopped sending out tax refunds. Tax payments, however, continue to be due on a timely basis. The Tax Court has also suspended operations for the time being. “Tax refunds will…

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Final Rules Issued on Individual Health Care Mandate

By Dennis G. Koch / September 4, 2013

The IRS released final   regulations last week on the Sec. 5000A shared-responsibility   payment: the penalty or tax imposed on individual taxpayers who do not obtain   minimum essential health care coverage beginning in 2014, shares the AICPA Journal of Accountancy. More…

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Corporate/Individual Tax – S-Corp Distribution Held to be Wages

By Dennis G. Koch / August 9, 2013

Distributions from S corporation to its president were wages, not loan repayments Glass Blocks Unlimited, TC Memo 2013-180 The Tax Court has held that distributions from an S corporation to its president/sole shareholder were taxable wages. IRS’s determination that the president was an employee was uncontested, and the S corporation failed to show that any…

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Individual Tax – Rollover Triggers IRA Modification Penlty and Can't be Undone

By Dennis G. Koch / June 19, 2013

PLR 201323045 IRS has privately ruled that a taxpayer’s rollover of some of his IRA funds into an IRA at another financial institution was a modification of his prior election to receive a series of substantially equal periodic payments. As a result, he was hit with an early withdrawal recapture penalty that could not be…

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