When someone passes away is one time it's essential to consult with an estate planning lawyer, a tax advisor like a CPA or enrolled agent, and possibly a financial planner.
Final regulations issued for Required Minimum Distributions
The IRS has issued final regulations (TD 1001) and proposed regulations (REG-103529-23) relating to Required Minimum Distributions from traditional and Roth qualified retirement plans, including Section 401(k) plans, and IRAs.
The regulations explain the rules for required minimum distributions under the SECURE Act of 2019 and SECURE 2.0 Act of 2022.
The final regulations are mostly the same as previously-issued proposed regulations with some minor changes in response to comments received by the IRS.
Notably, the final regulations didn’t change a controversial rule in previously-issued proposed regulations requiring that distributions be made annually when the plan participant dies after the required beginning date and annual required minimum distributions already applied during their lifetime. (This rule doesn’t apply to Roth account participants, because there is no required beginning date during their lifetimes.)
In most cases, that means when a plan participant dies after the required beginning date and annual required minimum distributions already applied during their lifetime, life expectancy distributions continue for the next nine years and the balance of the account is distributed during the tenth year after death. See your tax advisor for exceptions for “eligible designated beneficiaries” (including the surviving spouse) and non-designated beneficiaries.
See your tax advisor about how the new regulations apply for you and your family.
Reporting employer designated Roth contributions
The IRS has issued guidance for how employer designated Roth contributions should be reported.
Big Brother wants to watch EVEN MORE!
Under the Notice of Proposed Rulemaking, transfers to a legal entity, including a TRUST, corporation, partnership, limited partnership or limited liability company, of residential real estate of up to four units and unimproved land zoned for occupancy by one to four families that don't involve financing through a financial institution would have to be reported on a Real Estate Report to FinCEN within 30 days or a sale or transfer, and copies kept by the reporting person and other parties for five years.
Market-based sourcing means tax headaches for service sole proprietors
Businesses that have service income from customers located outside of their state of residence should be alert they may be taxable in another state without having any physical presence, property, or employees in the state. For businesses located in California that are sole proprietorships, this is an even more serious problem.
How IRS’s postponing third-party information returns could affect your 2023 tax returns
The threshold for reporting payments for any payee during 2023 is increased from $600, regardless of the total number of transactions, to $20,000 AND more than 200 transactions.
California FTB follows IRS with November 16 due date as California storm relief
The California Franchise Tax Board announced the evening of October 16, 2023 it is following the IRS by adopting a November 16, 2023 due date for 2022 income tax returns and payments for taxpayers who previously qualified for the October 16, 2023 due date. The relief applies to 55 of 58 California counties.
At the last minute, IRS further extends 2022 filing and payment date for California storm victims
For residents of 55 of California's 58 counties that previously qualified for extended filing relief, the IRS has announced TODAY the tax-filing and tax-payment deadline has been further extended to November 16, 2023.
IRS moratorium on processing new Employee Retention Credit claims
The IRS has announced an immediate moratorium, at least through the end of 2023, for processing new claims for the employee retention credit.
FinCEN gives more time to file 2024 beneficial ownership information reports for new entities
FinCEN has issued proposed regulations extending the due date for new entities created during 2024 to 90 days after creation. After 2024, the 30-day deadline will apply.