Tax News You Need to Know

Tax News You Need to Know

Although most people are focused on the April 15 tax filing deadline, there are a number of additional tax-related items that may require your attention. Here is just some of what is going on.

Required Minimal Distribution Deadline is April 1 - Individuals who reached the age of 70-1/2 in 2015 must start to take Required Minimal Distributions from their traditional IRAs or qualified retirement plans (such as a 401(k)) by April 1, 2016.
IRS Suspends PIN numbers - The IRS has temporarily suspended its online Identity Protection Personal Identification Number (IP PIN) program, with an eye toward further strengthening the security of the program. Taxpayers who requested a six-digit IP PIN number could use it instead of their Social Security number to help prevent identity theft online.
Estate Executors May Not Be Liable for Unpaid Taxes - The Tax Court has ruled that an executor of an estate that did not have sufficient assets to pay federal estate tax is not personally liable for the tax.
Phishing from "the Top Down" - As we reported before, the IRS is warning Human Resources and payroll professionals to be alert for suspicious requests for private information on employees (including W-2 forms). The requests appear to come from a senior executive or business owner. Identity thefts are sending email messages to HR and payroll people that look like official requests, but are "phishing" attempts to steal private data. Always confirm any such request with the purported sender.
Watch Where You Rollover - A taxpayer who "rolled over" $78,000 in IRA distributions to a commercial real estate investment was denied a refund after claiming the investment was a retirement vehicle and not subject to taxation. The IRS argued that the real estate purchase did not qualify as an IRA, as no written plan existed. The courts agreed.

If you have a question about these or any other tax issues, please contact the Gray, Gray & Gray Tax Department at (781) 407-0300.

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