New portability rules give taxpayers more choices for retirement funds
With the enactment of the Pension Protection Act of 2006 (PPA, P.L. 109-280 ), Congress has come close to achieving an important goal: assuring that taxpayers have flexibility in deciding the type of vehicle for their tax-favored retirement funds (e.g., qualified plan, IRA, Roth IRA, etc.), and, as a corollary, how these funds are invested. However, with flexibility comes complexity. As expanded by the PPA, the rollover choices (and the conditions attached to them) are many, making it difficult for even a specialist to keep track of them. The following Rollover Chart, adapted from a chart posted to the IRS's website in September 2006, should help practitioners and their clients. It summarizes the rollover choices available for each type of tax-favored retirement vehicle and the basic conditions that may apply. Full Story (pdf)
IRS updates publication on collection process
The IRS has updated IRS Publication 594, 1/2006, What You Should Know About The IRS Collection Process. The publication provides information on the steps that the IRS may take to collect overdue taxes. It includes discussion of liens and levies. Full Story
Cost of removing building's mold is currently deductible
In welcome news for taxpayers affected by the sometimes devastating cost of a mold condition in a structure, the IRS has privately ruled that the business cost a taxpayer incurred on a project to remove mold from a building it owned and leased out was deductible as an ordinary and necessary expense under Code Sec. 162. Full Story