With 450 recent changes to the federal tax code, your year-end considerations this year are very important.   While many changes open opportunities for many taxpayers, the IRS is moving to shut some doors at the same time. One area of concern is deferred compensation plans. Many experts opine that most current plans will be outside the lines of the new playing field. Even more dangerous is that last-minute changes to plans in effect now could subject to them the harsh new requirements and stiff penalties. In his monthly column in the December issue of TAXES Magazine, Mark Luscombe, J.D., LL.M, CPA takes a quick look at these and many other important issues.

 

Between the Congress, the courts and the IRS itself, practitioners may be facing a record year for new information to absorb.  The two recently passed tax acts alone created major shifts in many areas and subtle changes in others that are sure to trip up the uninformed and unwary.  In the latest issue of the CCH CPE Credit Service, Sidney Kess and Barbara Weltman look at the year’s new developments and outline the most significant changes impacting 1040 clients and their 2004 tax returns. They highlight the major changes and provide planning pointers to help you make sure your clients get the most out of the new tax benefits while avoiding some new pitfalls.

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Every tax and financial planning client has different needs and goals.  Good retirement plans are built on that and especially when it relates to the critical decisions affecting distributions under the guidance of the federal tax code.  Some clients need income, others want to maximize their estates for their heirs, and still others need to take care of spouses in case they die first.  Savvy tax experts Sidney Kess and Barbara Weltman walk you through the ins and outs of distribution strategies in two chapters from the third edition of the Retirement Planning Guide.  For example, why should company stock generally not be rolled over to an IRA in a distribution?

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Abusive transactions garnered much Congressional attention in the 2004 American Jobs Creation Act. That, in turn, could make 2005 a banner year for IRS enforcement crackdowns in this high-profile area. Practitioner penalties and sanctions are becoming tools in the IRS war on abusive shelters and disgruntled investors are looking to sue advisors who were once seen as tax geniuses.  CCH editors take a close look at some of the turbulent activity in this area in the latest issue of Tax Shelter Alert. And, despite the tough talk, there have been three recent taxpayer victories in federal court on tax shelter issues that you should know about.