After all the fuss over form 3115, you may not need to file them in order to implement the tangible property regulations.

In response to concerns communicated by small businesses and tax professionals, on Friday February 13, 2015, the IRS issued Rev. Proc. 2015-20 providing relief to small business taxpayers.

A small business taxpayer is defined as a business with:

• Total assets as of the first day of the tax year of less than $10 million, OR
• Average annual gross receipts of $10 million or less for the three prior tax years

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Minnesota has introduced a new W-4 form that may require some employees to complete, in addition to the federal Form W-4. You do not need to file if you claim the same number of MN allowances as federal and the number you claimed is 10 or less.

A 403(b) plan is one way for eligible employees of certain tax-exempt organizations to save for retirement. Individual accounts can be made up of an annuity contract or a custodial account which is invested in mutual funds. 

One benefit of contributing to a 403(b) plan is that you don't pay income tax on allowable contributions until you take a distribution from the plan. Also, any earnings and gains in your account are not taxed until withdrawn. Contributions to a 403(b) plan can be made up of employee and employer contributions as the plan allows, within certain limits. If you are an employer and you are considering starting a 403(b) plan or you need assistance in administering your current 403(b) plan, contact SDK's employee benefits department. 

Scam artists pretending to be from the IRS are calling and emailing taxpayers. They are either demanding money or trying to trick you into sharing private information by claiming that you owe taxes. The IRS does not initiate contact by phone, email, text messages, or social media to ask for your personal or financial information. Here are a few things scammers do that the IRS will never do:

• Call you about taxes you owe without first mailing you an official notice
• Ask for credit or debit card numbers over the phone
• Require that you pay your taxes a certain way. For example, telling you that you must pay with a prepaid debit card.

If you are uncertain whether or not you owe taxes, you can call the IRS at 800-829-1040 and an IRS employee can help you. Click here to read what steps you should take if you receive a suspicious IRS-related communication. 

Here is an idea for you to consider: Convert a portion of your IRA to Roth and pay the tax now for your heirs.  It reduces your future required minimum distributions (RMD),  reduces your estate now by the tax you pay on behalf of your heirs.  It provides a lifetime tax free income for your heirs!  Wow, what a wonderful gift to your beneficiaries.   Talk to your SDK representative about this and other estate planning ideas.  

Cassie, Mark and Levi Elgersma are proud to announce the birth of Tessa Kae. She was born on February 12, at 7 pounds and 9 ounces, 20 inches long. 

Cassie is a manager in our forensic accounting and valuation services team.