Linda Wang of the United States Department of Agriculture has created a summary of the newest tax laws related to timber.
Tax laws on timber transactions are very specialized knowledge that are not commonly known. Yet they are important to timber owners in terms of the ongoing cost of owning and managing timber, forest stewardship and compliance to the tax law. This bulletin reviews the major federal income tax laws to help forest owners in filing their 2014 income tax returns.
While these guides can be very helpful, please feel free to contact anyone on our Timber and Other Natural Resources team to help with any specific tax questions or advice.
Are you retiring and moving to Florida or relocating due to a new job? If you are moving out of state, the following article will assist you in what you need to consider with regard to documenting and reporting your change in address as well as income tax consequences.
Click the link to read the full article: How to Change Residency for Income Tax Purposes
Officials Say the Actual IRS Will Never Make First Contact by Phone
Con artists posing as Internal Revenue Service agents are back in the news. Despite previous warnings from government officials, some taxpayers still haven’t gotten the message.
“There are clear warning signs about these scams, which continue at high levels throughout the nation,” IRS Commissioner John Koskinen said recently. “Taxpayers should remember their first contact with the IRS will not be a call from out of the blue, but through official correspondence sent through the mail. A big red flag for these scams are angry, threatening calls from people who say they are from the IRS and urging immediate payment.”
“This is not how we operate,” he said. “People should hang up immediately” and contact the Treasury Inspector General for Tax Administration (www.tigta. gov) or the IRS. On the TIGTA site, click on “IRS Impersonation Scam Reporting.”
Government officials have received about 90,000 complaints through a telephone hotline since late 2013, says a TIGTA spokesman. About 1,100 victims have lost an estimated $5 million from these scams.
Scamsters may try to claim that you owe money or are entitled to a big refund, officials say. Callers might use phony names and IRS badge numbers. They might even know the last four digits of your Social Security number.
Real IRS representatives “never” ask for credit-card, debit-card or prepaid card information over the phone, the IRS said. They also never insist that you use a specific payment method. And they never demand immediate payment over the phone, the IRS says.
If you get a suspicious call and think you owe taxes, hang up and call the IRS (800-829- 1040). If you have no reason to think you owe anything, call TIGTA (800-366-4484), and tell the Federal Trade Commission using its “FTC Complaint Assistant” (ftc.gov). Include the words “IRS Telephone Scam.”
By: Tom Herman
A new Alabama income tax credit is available for Alabama individuals and businesses that contribute cash to the Alabama Department of Postsecondary Education (ADPE) for qualifying educational expenses directly associated with the state’s Career‐Technical Dual Enrollment Program. The tax credit was created by House Bill 384 (Act No. 2014‐147, the “Act”), which was sponsored by Representatives Buttram, Baker, Collins, and Hubbard. The Bill was signed into law by Governor Robert Bentley on March 11, 2014, and will go into effect for tax years beginning on or after January 1, 2015.
We have had a lot of questions about the particulars about implementing and complying with the law, so we created a handy guide (linked below).
If you have any questions, please feel free to contact any of our CPAs for further explanation.
Beginning at 12:01 a.m. (CST) on Friday August 1, 2014, and ending at twelve midnight on Sunday August 3, 2014, Alabama will hold its 8th annual sales tax holiday giving shoppers in Tuscaloosa County the opportunity to purchase certain school supplies, computers and clothing free of state and local sales tax. Not all cities participate but Tuscaloosa, Northport, Selma, Birmingham do. Here the list of all participating communities.
Here’s the link to ADOR’s website for the Sales Tax Holiday.
We get this question a lot at this time of the year. If your tax return is on extension and you are now preparing the return, can you still make an IRA contribution?
Maybe, but generally the short answer is No. The deadline for making most IRA or Roth IRA contributions is April 15th for the prior year contribution. Extending the return doesn’t change that.
Generally, there is no extension of time to make the IRA contribution, but as with almost every IRA rule there are exceptions.
If you are in a federally declared disaster areas may qualify for an extension in order to complete transactions for their retirement accounts, including making contributions. Check out this list to see if you qualify.
Military personnel in combat zones may qualify for extra time to make IRA contributions. Helpful additional info from the IRS
Here’s the most common exception: SEP IRAs. The due date for establishing and making a SEP IRA contribution is the due date of the business tax return, including extensions. So, any business owner who is having the tax return prepared now, in July, could still establish a SEP plan and make a SEP contribution for last year. Info here & SEP setup forms here
If you have any questions or comments about the information included here, please contact one of our retirement plan specialists (Anita Hayes, Mindy Norton or Sonya Waddell).
Last week, the Supreme Court unanimously ruled that inherited IRAs are not protected in bankruptcy under federal law.
The Court’s decision resolved the bankruptcy question about inherited IRAs in the federal courts, but it does not resolve all questions because state laws also control the bankruptcy protection. Each state’s law is different, here is a site if you want common state bankruptcy exemptions, but this is an overview and isn’t intended to take the place of legal counsel.
This decision could have far reaching ramifications and depending on the circumstances, IRA owners may need to think before deciding which heirs should be IRA beneficiaries upon their death.
The Court’s decision presumably will not affect spousal beneficiaries, though the decision doesn’t state. There are several special rules for spousal beneficiaries in the tax code, including the ability for a surviving spouse to rollover the IRA into their own.
Here’s a summary behind the decision:
The decision was that an Inherited IRA (Roth IRA) is NOT a retirement plan based largely on the following items:
Please contact your JMF accountant or retirement specialist for more information.
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