The IRS has announced new fees for Voluntary Correction Program (VCP) submissions under the Employee Plans Compliance Resolution System (EPCRS) effective February 1, 2016.
The Internal Revenue Service (IRS) recently announced that it will begin conducting focused audits aimed at determining compliance with Internal Revenue Code Section 409A. Section 409A is a complex and easily overlooked provision of the tax law which can result in draconian penalties. For this reason, we strongly recommend that our clients become familiar with the law, and review their existing documents now to avoid these penalties.
When it comes to payroll issues and withholding taxes, it is easy to decide to rely on your outside payroll service to determine the correct amounts to withhold. But the reporting and withholding requirements for employee compensation can be complex when multiple state jurisdictions are involved, and a payroll service can only rely on the information that they are given; it is up to the employer to gather the relevant information.
The Middle Class Tax Relief Act of 2010, which has just gone into effect, will have a significant impact on estate tax planning. It applies to the estates of those who died in 2010 and who will die in 2011 and 2012. Further legislation is expected to cover tax treatment of gifts and deaths that occur in 2013 and beyond. In the meantime, you need to review your existing estate plans in light of the Act.
As federal law stands now, the estate tax will expire at the end of 2009 and there will be no tax in 2010, but the tax will return in 2011. Congress is expected to take action so that an estate tax will continue without interruption in 2010, but there may be changes to the estate tax rules. In changing or extending the estate tax, Congress may curtail or disallow certain tax-saving techniques. In addition, the current economic environment provides opportunities for significant estate and gift tax savings.
In the current economic environment, where taxpayers may be sustaining losses from a variety of transactions, both individual and business taxpayers need to consider how the tax benefits from such losses can provide some measure of relief.