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Practical Issues Involving Retirement Distributions


Retirement assets often represent a substantial portion of a taxpayer's wealth. The retirement assets may be accumulated in a 401(k) plan, 403(b) arrangement, in another type of qualified plan or an IRA. Regardless of the retirement type arrangement that is involved, the tax consequences of making the right move at the right time can be financially beneficial for the taxpayer and his/her family. Conversely, making the wrong move at the wrong time can be financially hazardous to both the taxpayer and his/her family.

The problem with retirement distribution planning is a simple one. It may just be too complicated to deal with. The taxpayer may rely upon an advisor who may be well versed in a particular discipline but may not know how to integrate retirement assets with an overall estate plan.

The IRS has many rules that involve retirement distributions. In addition, each year the IRS issues many pronouncements and rulings that involve retirement assets. The problem is that the average practitioner is overwhelmed with these rules and generally cannot devote a substantial period of time in mastering them. [Read More]



Nuts & Bolts of a New York State Offer in Compromise


NUTS AND BOLTS OF A NEW YORK STATE OFFER IN COMPROMISE: A POSSIBLE SOLUTION FOR CLIENTS WHO DON'T HAVE DEEP POCKETS

Your client telephones your office, frantic, because he has just received a Notice of Determination ("Notice"), showing that he is liable for sales tax, interest and penalties as an officer of his company. There is no question that he is a responsible person for tax purposes; there is also no doubt that he will never be able to pay the amount owed. What can you do to help?

A new client calls, admitting that he filed his tax returns for the past few years but he hasn't paid the tax owed. He's been sick, and his company went out of business. He has a low-paying job now and he's only a few years away from retirement. He's been receiving Notices and he wants to straighten out his affairs with New York State. He hasn't got any spare cash or other assets. What should he do?

SUBMIT AN OFFER IN COMPROMISE

In both of these circumstances, and in many others, a good answer is to file a New York State Offer in Compromise ("OIC"). This is a procedure which may allow a taxpayer to pay less than the full amount owed of tax, interest and penalties. It involves submitting various forms to the State, backed up by documentation and persuasive arguments. If accepted, the liability of that taxpayer is reduced. An OIC can be submitted on behalf of an individual taxpayer or a corporation. [Read More]

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