Final regulations on hardship distributions for 401(k) plans

By : December 5, 2019 Comments Off on Final regulations on hardship distributions for 401(k) plans

On Sept.19, 2019, the IRS issued final regulations regarding the hardship distribution requirements for 401(k) plans (T.D. 9875). The regulations are issued pursuant to provisions of the Bipartisan Budget Act of 2018 (“BBA”) that amended the hardship rules. The IRS

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IRS Offers Tax Relief Procedures To Certain Expatriates

By : November 7, 2019 Comments Off on IRS Offers Tax Relief Procedures To Certain Expatriates

The IRS announced new relief procedures from paying back taxes for certain persons who have relinquished, or intend to relinquish, their U.S. citizenship and become compliant with their U.S. income tax and reporting obligations. The “Relief Procedures for Certain Former

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California Makes Big Changes To Worker Classification

By : October 24, 2019 Comments Off on California Makes Big Changes To Worker Classification

In what could spark a national trend, California Gov. Gavin Newsom has signed Assembly Bill 5, dramatically changing the rules for determining when workers are considered independent contractors rather than employees.  The new law provides that workers are presumed to be

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IRS Issues Guidance on Uncashed Retirement Distribution Checks

By : October 10, 2019 Comments Off on IRS Issues Guidance on Uncashed Retirement Distribution Checks

Frequently, a 401(k) or other retirement plan will issue a distribution check payable to a terminated employee. The Internal Revenue Code generally requires the plan administrator (typically, the employer) to withhold income tax from the distribution and to report the

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Timely Mailed Is Not Always Timely Filed

By : September 27, 2019 Comments Off on Timely Mailed Is Not Always Timely Filed

Practitioners who file documents or make payments with the IRS that are required to be filed or paid by a certain date or period are familiar with section 7502(a). Simply stated, if the submission is properly addressed, it will be

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Want To Split Up With Your Business Partner?

By : August 29, 2019 Comments Off on Want To Split Up With Your Business Partner?

In PLR 201930011, released July 26, 2019, the Service ruled that the splitting up of a business between discordant shareholders of a closely held business qualified as a tax-free transaction pursuant to sections 368(a)(1)(D) and 355 (a divisive D reorganization). This

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New IRS guidance on multiple-employer 401(k) plans

By : August 15, 2019 Comments Off on New IRS guidance on multiple-employer 401(k) plans

IRS proposes to relax the “One Bad Apple Rule” A multiple-employer plan (MEP) is an employee benefit plan maintained by two or more employers. Many such plans are sponsored by companies that are not members of a common control group

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Senate Passes Taxpayer First Act

By : August 2, 2019 Comments Off on Senate Passes Taxpayer First Act

On June 13th, the Senate passed the Taxpayer First Act. The goal of the Taxpayer First Act is to restructure the IRS to better meet taxpayers’ needs. Although the bill is still awaiting presidential signature, its enactment is expected. The

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