Posts made in January, 2015


We call on Congress to act now to provide estate tax planning “peace of mind” for all small business owners by enacting permanent estate tax relief.  Specifically, Congress should adopt a permanent individual “exemption” of $3.5 million (indexed for inflation) from the estate tax and a top marginal estate tax rate of 45 percent. If Congress does not act, the estate tax will be repealed for one year and re-instated thereafter in a more...

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The Small Business Council of America calls for Congress to place an immediate moratorium on the assessment and collection of the IRC Section 6707A penalty until the statute can be thoroughly reviewed and recommendations can be made to carry out the intention of Congress without the disproportionate and probable unconstitutional impact of current law on small businesses and their owners. The National Taxpayer Advocate 2008 Annual...

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It had to happen. For over 40 years, the IRS had looked the other way when it came to public sector and not-for-profit 403(b) plans. True, it had promulgated regulations but then assumed that 403(b) plan sponsors were actually following them. Alas, when the IRS conducted a three state compliance study, it found over 65 percent of those plan sponsors were not following the rules. So the IRS did what it usually does when it finds...

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As a way to better manage the cost of administering a plan, employers frequently ask about the options for allocating plan expenses to participants. These discussions may focus on several related issues including whether charging such accounts to former employees can legally rid the plan of accounts from the plan and to also encourage former employees with larger accounts to agree to take distributions. Additionally, removing small...

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Most analyses of the tax benefits of Roth contributions compare the results of a tax-deferred contribution to a plan versus the contribution of the same amount as a Roth contribution, less the tax payment required on the contribution. This results in the conclusion that there is no difference in the resulting savings of the participant if the tax rate at the time of the contribution is the same as the tax rate at the time the...

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