2010

Accountable Plans and the IRS

In a 2010-2012 audit initiative, the IRS found many businesses were either not familiar with the accountable plan rules, or were not following them. It seems likely, therefore, that the IRS is going to apply more scrutiny to the issue of accountable plans when auditing businesses and their owners.

An accountable plan is a business plan for expense reimbursement or advances that satisfies the following requirements:

(1) Reimbursements/advances are only made for deductible business expenses incurred in the performance of employee duties;

(2) Reimbursements/advances are substantiated through an expense report, diary, log, trip sheets, or similar record such as a detailed receipt;

(3) Excess advances are returned to the business (except for cases where an allowance doesn’t exceed per diem rates); and

(4) Substantiation and returns of […]

IRS Reminds Taxpayers to Report 2010 Roth Conversions on 2012 Returns

Taxpayers who converted amounts to Roth IRAs or designated Roth accounts in 2010 and chose to defer the tax (under a special rule that applied only to 2010 conversion) must report half of the resulting taxable income on their 2012 returns. See IRS reminder here.

By |June 17th, 2013|Categories: Individual Tax, Retirement Planning|Tags: , , , , |Comments Off on IRS Reminds Taxpayers to Report 2010 Roth Conversions on 2012 Returns