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    Month: January 2018

    IRA Conversions and Recharacterizations

    The new tax law that was enacted on December 22, 2017 eliminates that ability of taxpayers to recharacterize a conversion from a traditional IRA to a Roth IRA, effective for tax years beginning after December 31, 2017. Such recharacterizations have been used in the past by taxpayers who converted balances in a traditional IRA into a Roth IRA and then wanted to undo the conversion.  When a tax...

    Portals for Client Documents

    Practitioners should consider using a secure portal to allow clients to securely upload and send scans or pictures of sensitive tax information and documents.  The secure portal uses encryption to protect files that are uploaded to and downloaded from it. Most practitioners are aware of the vital need to password/encrypt any sensitive information sent to their clients; however, clients are no...

    IRS Issues New Withholding Tables for 2018

    The IRS has issued Notice 1036, which provides early release copies of the 2018 withholding tables.  The notice instructs employers to begin using the 2018 withholding tables as soon as possible, but not later than February 15, 2018.  Until making the change over to the new 2018 withholding tables, employers should continue to use the 2017 withholding tables. In the new tables, the amount as...

    Standard Mileage Rate

    The IRS has released the 2018 standard mileage rate.  For business travel, it is 54½ cents per mile.  For medical-related travel, it is 18 cents per mile.  The rate for charitable use of an automobile is not subject to adjustment, and it remains 14 cents per mile.

    The New Law and Withholding for 2018

    The IRS has announced that it expects to issue withholding guidance in January for the 2018 tax year, to reflect the new tax law.  In the meantime, the IRS has instructed employers to continue using the 2017 withholding tables and systems until further notice. The new tax law, which was enacted on December 22, 2017, changes income tax rates for individuals starting in 2018; it also changes th...