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Month: July 2015

IRS SIMPLIFIES SECTION 83 ELECTION PROCEDURES

IRS SIMPLIFIES SECTION 83 ELECTION PROCEDURES

In a recent private letter ruling, IRS acknowledged that the failure to attach a copy of a Section 83(b) election to the tax return didn’t negate the election as long as the election was, in fact, filed with IRS within 30 days of the date of transfer, which has long been the rule. And in recently proposed regulations, IRS has further formalized this new stance in proposing elimination of the requirement that taxpayers attach a copy of the election to…

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Dear Right-Wing Media: Stop Panicking, New Citizens Could Always Claim Conscientious Objector Status

Dear Right-Wing Media: Stop Panicking, New Citizens Could Always Claim Conscientious Objector Status

To see the recent spate of articles, you’d think President Obama himself had just waved his hand and told all green card holders who are becoming naturalized U.S. citizens that they could skip that pesky part of the Oath of Allegiance where they promise to bear arms on behalf of the United States. Here are some of the recent headlines: Obama Administration Strips Requirement to Defend The United States From Citizenship Oath Obama Changes Oath of Allegiance for New Americans, Takes Out…

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New Fundraising Method? Check Collection Box for Rare Coins!

New Fundraising Method? Check Collection Box for Rare Coins!

Collecting a few pennies at a time doesn’t sound like the most effective way to raise money for charity. But if you leave that coin donation box out long enough, the money will add up — and better yet, you might encounter some luck of the sort reportedly experienced by the Royal Berkshire Hospital recently. A seemingly humble 2p piece in its coin donation box turned out to be a rarity (printed in silver rather than bronze, oops). A sharp-eyed volunteer noticed the…

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Selling While Still Living in Home? Cleanup Becomes a Family Affair

Selling While Still Living in Home? Cleanup Becomes a Family Affair

Ask any real estate agent: Moving out of a house before trying to sell it is the optimal arrangement, both for aesthetic reasons (you can clean and even “stage” it) and for your own convenience during open houses and showings. But that arrangement isn’t always possible. Particularly if you need to get the money out of your current house before moving on to a new one, you may need to juggle living in your home with presenting it as a commodity…

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NO EARLY DISTRIBUTION PENALTY WAIVER DESPITE “FINANCIAL HARDSHIP”

NO EARLY DISTRIBUTION PENALTY WAIVER DESPITE “FINANCIAL HARDSHIP”

In the recent Kott decision (TC Summary Opinion 2015-42), the Tax Court took a hard line in the case of a 401(k) distribution to a taxpayer under age 59-1/2 even though he used the money to catch up on his delinquent mortgage payments in an effort to avoid foreclosure. The Code does provide for certain exceptions to the application of the penalty, but Courts have held that those exemptions do not include a general “financial hardship” situation, even though such…

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