Archive for 'General'

Mar 15

Staring this month the IRS will select several thousand employers at random to receive detailed questionnaires focusing on their 401(k) plans.

This is not an audit; rather the IRS is collecting information. Depending upon the results, the IRS may decide to conduct more audits of 401(k)s.

If you receive one, it is time to speak with your TPA or other plan specialist before returning the questionnaire to the IRS.

Feb 24

The following is directly from ksdk.com, a St. Louis news website:

A fight over tax money will lead to charges of attempted murder in Pine Lawn.

Police say a woman followed her husband to work at a barber shop on Natural Bridge Saturday morning. She wanted him to give her some of their tax return money. When the man refused, she tried to shoot him. The bullet went through a window of the couples SUV. The man ducked inside the back seat of the vehicle and police say that’s when the woman shot two more times. Both of those bullets also missed. The man jumped out of the back seat and ran across the road.

Investigators say the woman then went into the city of St. Louis and threw the gun in a sewer. Police contacted the woman a short time later and she turned herself in. Police say she didn’t seem sorry.

“She felt more than justified. She cooperated very well, with the reasoning why she fired the shots, as well as recovering the gun. She said she didn’t want a child to find the gun in the sewer,” says Daniel O’Conner, the Assistant Chief of Police for Pine Lawn.

Jan 28

The following is a post by Sarah B. Lawsky at one of my favorite blogs – TaxProfBlog:

Throughout his first term, President Franklin Roosevelt paid taxes at the rates in effect when he took office, even as statutory tax rates increased. His position was that paying tax at a rate higher than that in effect at his inauguration reduced his salary, which violated the Constitutional provision that states that the president’s compensation “shall be neither increased nor diminished during the period for which he shall have been elected.”

At least one tax historian believes the approach is unique to Roosevelt. The memo on the cover of Roosevelt’s 1937 return thus seems to exemplify chutzpah: “I am wholly unable to figure out the amount of tax for the following reason,” he writes. “The first twenty days of January, 1937, were part of my first term of office and to these twenty days the income tax rates as of March 4, 1933 apply. To the other 345 days of the year 1937, the income tax rates as they existed on January 30, 1937. As this is a problem in higher mathematics, may I ask that the Bureau let me know the amount of the balance due?” Or in other words: I made a problem. Fix it, please!

Jan 25

Yes they can.

They can take up to 15% of your social security.

Before they can do so, they have to notify you by mailing an Intent to Levy. You will also receive a CP 91, an IRS notice with the ominous title “Final Notice Before Levy on Social Security Benefits.” Take it seriously. You have only 30 days to respond before the IRS is able to levy you.

Once levied you will have to pay up in full, set up a payment plan, propose an offer or move the account to CNC (cannot collect) status.