College Savings Plans Make the Grade

January 1, 2002

Although the birth of a child may give you joy and excitement, it also raises the inevitable question of the best way to save for Junior’s education. A relatively new investment vehicle, known as a Section 529 plan, addresses the college savings burden. There are two types of Section 529 plans. A “prepaid tuition plan” primarily covers in-state tuition at public institutions. Basically, you purchase tuition credits or certificates on …

Comments Off

What’s New For Income Tax in 2002?

January 1, 2002

The Economic Growth and Tax Relief Act of 2001 represents the most significant tax cuts since 1981. Its features range from lower income tax rates and additional tax incentives to save for education and retirement to the decrease and eventual repeal of the estate tax. While the long-term impact of the act remains uncertain because of its many delayed phase-in and sunset provisions, the following items take effect this year. …

Comments Off

Recovering From A Day Of Terror

October 1, 2001

By the time you read this, rescue efforts at the World Trade Center and the Pentagon will be over. The tally of casualties will be complete or nearly so, and the process of rebuilding shattered structures, businesses and lives will be getting underway. But as I write this, two days after terrorists attacked on September 11, volunteers are still trying to find survivors beneath the rubble. The stock market has …

Comments Off

Planning Can Reduce Mutual Fund Tax Bite

October 1, 2001

It’s almost time for mutual funds to begin making their annual taxable gain distributions — and the perfect time to begin planning how to minimize their tax bite on your 2001 return. Mutual funds are required to distribute 90% of the taxable income earned during each fiscal year. When the funds are held in taxable accounts, these distributions are taxable whether or not the investor elects to reinvest dividends and …

Comments Off

Tax Cuts Don’t Ease Need For Estate Planning

October 1, 2001

They could have called this year’s tax legislation the Cinderella Tax Act. We go to the ball, we get a nice smooch and then we wake up to find ourselves in bed with a pumpkin. Even by Internal Revenue Code standards, this is a bizarre fairy tale of a tax law. It phases in a variety of income, estate and gift tax breaks from now through 2009, repeals the estate …

Comments Off

Tips On How To Respond To Notice 2001-10

June 1, 2001

Notice 2001-10 applies to existing split dollar arrangements and should not be disregarded merely because it provides "interim" guidance on the taxation of such plans. It is not a matter of "if" the IRS will provide final guidance in the future, it’s just a matter of when. Existing plans should be evaluated to determine the tax effect of the notice to the insured, and to decide whether to leave the …

Comments Off

More Winners Than Losers From New IRA Regs

June 1, 2001

I take back all those terrible things I’ve said about the Internal Revenue Service. Well, maybe not everything, but the IRS has built some good will with me (and I’m sure they sleep more soundly as a result) by issuing new rules for distributions from retirement plans and Individual Retirement Accounts. Everyone wins under the new regulations that the IRS proposed Jan. 11. The IRS will find it much easier …

Comments Off

Why The Pulitzer Jury Got It Wrong

June 1, 2001

What should a major newspaper do about a reporter whose coverage of taxes is typically one-sided and sometimes inaccurate, and who has become an advocate for the Internal Revenue Service? If you are The New York Times, you celebrate when he wins the Pulitzer Prize. David Cay Johnston of The Times this year was awarded the $7,500 prize for beat reporting (he was a runner-up in 2000) “for his penetrating …

Comments Off

David Cay Johnston’s Response

June 1, 2001

Mr. Elkin, There is an old newsroom proverb that goes like this: Doctors bury their mistakes, lawyers see theirs off to jail, only reporters sign theirs for all the world to see. I think we need a vigorous debate about tax policy and tax administration, one driven by sound insights instead of sound bites. I invite vigorous examination of my own work, which is signed for everyone to read and …

Comments Off

IRS Bares Teeth At Equity Split-Dollar Plan

June 1, 2001

What happens when you keep putting your head in a crocodile’s mouth? Sooner or later he’s going to slam his jaws shut. Proponents of split-dollar life insurance arrangements have advocated these plans for many years despite clear signs that the Internal Revenue Service was getting hungry, or at least ornery. Now the Service has snapped at split dollar, and it looks like an even bigger bite is still to come. …

Comments Off

Sorry, you can not to browse this website.

Because you are using an outdated version of MS Internet Explorer. For a better experience using websites, please upgrade to a modern web browser.

Mozilla Firefox Microsoft Internet Explorer Apple Safari Google Chrome