IRS ANNOUNCES “GET TRANSCRIPT” APPLICATION BREACH

Brian Wynne, CPA

The IRS announced on Tuesday that identity thieves were able to access tax transcript information of more than 100,000 tax accounts through their “Get Transcript” application. Prior knowledge of personal information allowed the criminals to pass a multi-step authentication process to access the tax transcripts. The IRS believes approximately 200,000 attempts to access transcript information were made in total from “questionable e-mail domains” starting in February and ending in mid-May, with more than 100,000 gaining access.
The IRS […]

SUPREME COURT RULES ON WYNNE VS. COMPTROLLER

Brian Wynne, CPA

On Monday, May 18th, the Supreme Court ruled that Maryland’s income tax law for income earned outside of the state is unconstitutional. The court voted 5-4 to affirm a 2013 Maryland Court of Appeals decision. The case specifically addressed Maryland’s denial of credits against the MD county income tax, otherwise known as the ‘piggy-back’ local tax. Going forward, residents who earn out-of-state income from certain businesses/sources will be able to claim a credit against the county taxes […]

REVERSE ROLLOVER: A BRIDGE OVER THE BACKDOOR ROTH TRAPDOOR

Scott Reddersen, CPA

Much has been written about the benefits of Roth versus Traditional IRAs, and over the past several
years a popular “backdoor Roth” conversion has made headlines as well. As a refresher, this method allows high-income taxpayers, who are excluded from making direct contributions to Roth IRAs, the ability to make non-deductible contributions to a Traditional IRA, and then immediately convert that amount to a Roth. The net effect, ideally, is minimal tax on any earnings between the date […]

MARYLAND TAX AMNESTY PROGRAM

Jobe Dupre’, CPA

For Maryland individuals and corporations past due on filing Maryland tax returns and paying Maryland taxes, the Maryland legislature has passed a tax amnesty bill which is awaiting the governor’s signature.  The amnesty will apply to corporate and individual income taxes, withholding tax, sales and use tax or admissions and amusement tax and will waive all penalties and one half of the interest due.  Although the bill takes effect June 1, 2015, the amnesty period will be […]

NEW APPLICABLE FEDERAL RATES RELEASED FOR APRIL BY IRS

Jobe Dupre’, CPA

Each month, the IRS provides various prescribed rates for federal income tax purposes. These rates, known as Applicable Federal Rates (AFRs), are regularly published as revenue rulings.

The AFRs for April 2015 are as follows:

Annual
Semi-Annual
Quarterly
Monthly

Short-Term: 1-3 years
0.48%
0.48%
0.48%
0.48%

Mid-Term: >3 & up to 9 years
1.70%
1.69%
1.69%
1.68%

Long-Term: >9 years
2.47%
2.45%
2.44%
2.44%