General/Taxability Issues including Distributions, Early Withdrawals, 10% Additional Tax, Defaulted Loans
Question: This is the first year that I received a distribution of benefits from my retirement plan. Are any of my benefits taxable?
Answer: If you receive retirement benefits in the form of pension or annuity payments, the amounts you receive may be fully taxable, or partly taxable in the year received.
Generally, your pension or annuity is usually fully taxable:
If your employer contributed all of the cost without including the cost in your taxable wages, or
If you got back all of your previously taxed contributions tax free in previous years.
Generally, your pension or annuity will be partially taxable:
If you contributed after-tax dollars. You will not pay tax on the part of the payment that represents a return of the after-tax amount you paid.
If you receive pension or annuity payments before age 59-1/2, you may be subject to an additional 10% tax on early distributions. See Publication 575.
Note: If you contributed after-tax dollars in the form of designated Roth contributions to a 401(k) plan that permits such contributions, these contributions would be fully taxable in the year of contributions, although qualified distributions from the designated Roth account would not be taxed when received.
Question: How long do I have to roll over a retirement distribution?
Answer:You must complete the rollover by the 60th day following the day on which you receive the distribution. For information on distributions which qualify for rollover treatment, refer to Tax Topic 413, Rollovers from Retirement Plans. For information on the Direct Rollover Option, refer to chapter 1 of Publication 590, Individual Retirement Arrangements (IRAs). To qualify for an automatic waiver or to obtain a waiver of the 60 day rollover requirement see ” Retirement Plans FAQs relating to Waivers of the 60-Day Rollover Requirement.
Fresh Start Tax 1-866-700-1040 Board Certified Tax Attorneys, CPA’s, Former IRS Agents, Managers and Instructors
We are a Professional Tax Firm with a National Tax Practice. We have an “A” Better Business Bureau Rating
We Handle all IRS Tax Matters. We have 205 years of direct IRS experience. We taught Tax Law at the IRS Regional Training Center.
Fresh Start Tax is one of the premier tax resolutions firms in the country. We deal with all types of civil cases including individuals, businesses, corporate and defunct corporations. We have staff that specializes in every facet of the Internal Revenue Service. We know all the IRS strategies.
Some of our many specialties include the following:
Immediate Tax Representation
Offers in Compromise/Settlements
Back Tax Relief
Bank Garnishments or Tax Levies
Wages Garnishments or Levies
IRS Notices of Intent to Levy or Final Notices
IRS Tax Audits
Hardships Cases, Payment Plans
Innocent Spouse
Abatement of Penalties and Interest
State Sales Tax Cases
Trust Fund Penalty Cases/ 6672
Our Company Resume:
Our staff has over 205 years of professional tax representation experience collectively
On staff, Board Certified Tax Attorney’s, Certified Public Accountants, Enrolled Agents, Former IRS Manager, Instructor and Trainers
Highest Rating by the Better Business Bureau ” A “
Fresh Start Tax 1-866-700-1040 Highest Rated by the Better Business Bureau
In a tax article by one of the founders of Fresh Start Tax, we wanted to alert consumers on how to pick a good tax resolution company.
Written by Michael D. Sullivan, Expert Tax Author as published by EZINE.
1. The very first thing to check on is the BBB rating. Only hire a company that has an “A ” rating. Be wary of any company with a rating below an “A.” You would probably have your money at risk.
2. Use a Google search to check the company out. People who are unhappy with a company or have been ripped off will usually post something up.
3. Always check to see how long the company has been in business for. A good solid company will have a solid history.
4. Check to see whether the company has tax attorney’s or CPA’s on their staff. True professional companies have these skilled tax experts on staff to help with the difficult cases. Also, an attorney or CPA will not put their neck on the line for scam companies.
5. Find out who owns the company. If a nonprofessional does, check the person out closely. Has he owned other businesses and what type of businesses were they? Are they still in business?
6. If the tax resolution company wants all the money up front, run. This is a bad sign. There is no incentive for them to close your case. They will generally become lazy.
7. Does the tax strategy makes sense? If what they are telling you is pie in the sky your money will end up there are well.
One closing thought. If you can meet the representative face to face your chance of success is far greater.
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About Michael D Sullivan
Michael D. Sullivan is a founder of Fresh Start Tax. He has a distinguished career with the Internal Revenue Service for 10 years. As an IRS Revenue Officer, he served as an Offer in Compromise Specialist and also collaborated with the U.S. Attorney’s office in many clandestine “operations”. Michael received awards for his work and dedication as a Revenue Officer. During his tenure with the IRS, he was involved in the training of many IRS Agents, including specialty programs, as a certified instructor in the Atlanta, Georgia District Office.
Michael has been in private practice for the last 26 years in the field of taxpayer representation for tax resolution issues against the IRS, representing corporations and individuals which involved a wide range of tax issues. Michael has worked many large complex cases for high net worth individuals. Mr. Sullivan is a committed professional with dedicated involvement in the tax profession community as a frequent speaker on the South Florida circuit, and on the board of the Greater South Florida Tax Council. Michael has been the program host and moderator several Internal Revenue Service forums.
Michael graduated from St. Thomas University with a B.A. in pre law He also has attended Knox Theological Seminary as an audit student, has obtained a life time Achievement award for Little League Baseball and currently sits on the International Board for the Walk to Emmaus. Michael is also a member of the National Society of Accountants. Mr. Sullivan is also registered with the Department Of Business and Professional Regulation certified for course approval for IRS Collection Matters for Certified Public Accountants. Course # 0012279 expires 11/04/2013.
More from Michael D Sullivan
Recent Articles By Michael D Sullivan
Top 7 Tips For Selecting a Good Tax Resolution Company
Finance: Taxes Relief • Published: November 17, 2010
With so many tax companies claiming to resolve IRS tax issues, you should be careful in choosing the company that suits you the best. Do your homework!
IRS Hardship Status – Will the IRS Reopen the Case?
Finance: Taxes Relief • Published: November 15, 2010
When the IRS determines to put your case in Hardship Status, few persons know how and why these cases come back out to the field or back into the IRS collection system. Having been a former IRS Agent, I had placed hundreds of cases in the currently non collectible status, known to the IRS Agent as Status 53 because of the form number.
I Have Not Filed My Taxes in Years, What Should I Do?
Finance: Taxes Relief • Published: November 3, 2010
Millions of people just like you want to get back into the IRS system but do not know what to do. They are worried and frightened that they might be in serious trouble. The best thing to do is to be proactive and file all of your back taxes before the IRS tells you to.
7 Great Tips To Get Your Offer In Compromise Accepted
Finance: Taxes Relief • Published: November 3, 2010
Most people simply do not understand the concept of the offer. They submit an offer simply because the program is available, having no idea of the assets and income requirement. Partial blame is geared towards false advertising to be the cause of these rejections. “Pennies on the dollar” has caused a frenzy of “everybody can settle.” This has caused a nightmare for the IRS.
If Your Federal Tax Lien Is Filed Wrong, You May Appeal It
Finance: Taxes Relief • Published: October 25, 2010
Most people have no idea that they can Appeal the Federal Tax Lien. There are certain criteria required.
IRS CP 2000 Notice – Everything You Need To Know
Finance: Taxes Relief • Published: October 22, 2010
Received a CP 2000 Notice from the IRS? Do not panic. But, by all means respond!
Has Your Name Been Forged On A Tax Return?
Finance: Taxes Relief • Published: October 22, 2010
Has someone forged your name on a Tax Return? Maybe your spouse? What do you do?
IRS – Innocent Spouse Relief
Finance: Taxes Relief • Published: October 21, 2010
Separation or divorce is a difficult time for most people who go through it. Sometimes, even years later, these can cause IRS problems which could be devastating.
IRS Statute Of Limitations
Finance: Taxes Relief • Published: October 20, 2010
The IRS has a 10 year period of time in which to collect back taxes. After that ten year period of time, the back taxes drop off the tax data base and the debt is legally forgiven and can never be collected. The federal tax liens are also released by statute.
IRS Insider – IRS Financial Statement 433-A Or 433-F – Get Extra Expenses Included to Help Your Case
Finance: Taxes Relief • Published: September 29, 2010
The IRS includes other expenses when taking the financial statement, form 433-A or 433-F. They do not let you know about these extra expenses, however, they can reduce your monthly payment under an Installment Agreement.
Trust Fund Penalty – Payroll Taxes – Who Is Responsible?
Finance: Taxes Relief • Published: September 29, 2010
A trust fund recovery case begins with unpaid 941 payroll taxes from a corporation. After some period of time, the IRS computer catches up with the unpaid 941’s on corporate cases. These cases are always sent to the field for an examination of the trust fund recovery penalty.
IRS Penalties and Interest Tips From Former Agents
Finance: Taxes • Published: September 29, 2010
1. The IRS will only abate penalties for reasonable cause. Reasonable cause is based on the taxpayer’s specific circumstances. 2. Under reasonable cause the first thing the IRS will look for is what happened and when did it happen. Most cases are denied because the claim does not fit the time period involved.
IRS Offers in Compromise – Former Agent’s Tips to Get Them Accepted
Finance: Taxes Relief • Published: September 29, 2010
They will check the internet, credit reports, the DMV and prior tax returns to confirm the information you provided is accurate. The IRS will conduct a thorough investigation.
Inside Tips for Dealing With the IRS Collection Division
Finance: Taxes Relief • Published: September 29, 2010
The IRS Collection Division, an arm of the Internal Revenue Service, has little known practices they use to collect tax money for the U.S. government. The actual collection process has hidden secrets, as do any organization’s procedures.
How to Get Your Federal Tax Lien Released – 10 Golden Tips
Finance: Taxes Relief • Published: September 21, 2010
Once Federal Tax Liens have been filed, the next project is trying to get them released. Last year approximately 950,000 liens were filed by the Internal Revenue Service. That number is expected to sharply increase.
Michael D Sullivan’s Expert Niches
