Today is the last day to make a charitable IRA rollover for 2012. Yes, 2012 is over, but taxpayers who are required to make IRA minimum annual distributions may still have one 2012 transaction left in them.
- Taxpayers who are born before July 1, 1942 who took cash from an IRA in December 2012 can contribute up to $100,000 to a charity today and have it excluded from their 2012 income.
- Taxpayers who have failed to take their required minimum 2012 distribution can avoid the 50% penalty for failing to take their distribution by arranging for the IRA to transfer the minimum amount, up to $100,000, to a charity today.
These opportunities are part of the retroactive extension of the rule allowing up to $100,000 to be transferred from an IRA directly to a charity without including the amount in the IRA owner’s income. This avoids the 50% of AGI charitable contribution limit. It also avoids other potentially unpleasant consequences of having the IRA income above-the-line, like making your Social Security taxable.
On brief, the Tax Update Blog. The Institute for Justice, the victorious legal team behind the shutdown of the preparer regulation program, has filed a brief opposing a stay in the injunction against the program. Making their case airtight, they cite the Tax Update, along with tax bloggers Kelly Phillips Erb (TaxGrrrl), Robert D. Flach and Jason Dinesen. From Footnote 18 of the brief:
For an example of the disruption routinely caused by the IRS’s misadministration of the RTRP regulations, see Alban Decl., Ex. 3 (the comments from preparers are illustrative and reference previous examples of similar disruptions); see also Joe Kristan, IRS quietly delays CPE requirement under new preparer regulation scheme , Tax Update Blog (January 8, 2013), http://rothcpa.com/2013/01/irs-quietly-delays-cpe-requirement-under-new-preparer-regulationscheme/ (describing IRS message as “a quiet admission of failure”).
With the Tax Update Blog on their side, who can be against them?
What does a poor college student have that could be lucrative to a thief? A Social Security number. From the Memphis Business Journal:
With tax season bearing down, the IRS has a warning about a new refund scam aimed at college students, seniors and church members.
The Internal Revenue Service said Tuesday the scam tries to get students to give their personal identification and file tax returns claiming fraudulent refunds. It has sent misleading and bogus refund claims using the American Opportunity Education Tax Credit on college campuses throughout the Southeast.
Be very cautious about giving anybody but your employer, your bank, a medical provider or the IRS your Social Security number. And never give it to a scammer.
David Brunori, Stifling Lefty — Political Correctness in the Tax Debates (Tax.com):
So the pro tax people managed to shut Mickelson up. Rather than engaging in a discussion about why it is okay to take his money, they stifled him.
Shut up, they explained.
Paul Neiffer points out that now that penalties are waived for farmers who file after March 1, they may not want to file by their usual deadline: File Your Return After March 1 Not Before!
Have you mailed your 1099s and W-2s? Today is the deadline for sending them to recipients. Russ Fox has the scoop.
Trish McIntire, Freebies. Don’t ask for them.
Chris Sanchirico, Camp’s Investment Tax Plan: Implications for Lower Rates on Capital Gains? (TaxVox)
Tax Foundation, New Report: Cell Phone Taxes Exceed 20% in Several States
Margaret Van Houten and Jodie Clark McDougal, Iowa Trust Industry Breathes a Sigh of Relief after the Supreme Court’s Reversal in Trimble
Cara Griffith, Kentucky DOR’s Disregard of Transparency (Tax.com)
Jack Townsend, Another UBS Depositor Pleads
Patrick Temple-West, India sees end to Vodafone tax dispute, and more
News you can use. IRS: No One Is Too Old, Too Poor Or Too Sympathetic To Avoid Prosecution (Brian Mahany)
How to catch a dinosaur. Not Income Tax Evasion – Structuring – That’s How They Got Kent Hovind (Peter Reilly)
Robert D. Flach goes into blog hibernation for the remainder of tax season: SO LONG, FAREWELL, AUF WIEDERSEHEN, GOOD NIGHT!
These are a few of my favorite things… Guns and Tax Returns. (Christopher Bergin, Tax.com).
Today’s morale builder: Les Misérables-Inspired Video Reminds You That Busy Season Kills Your Dreams (Going Concern)