How IRS will audit for prohibited transactions

Article Abstract:

The IRS has issued guidelines to be used by employee plans examiners in checking for disallowed transactions and for errors in plan asset valuation. Contained in Ann 92-182, IRB1992-52, 45, the guidelines point out the areas of plan operation that are likely to be closely examined. Transactions considered prohibited involve the transfer of property between a plan and a disqualified person, whether through a direct sale, an exchange or a lease, as specified in Section 4975(c)(1)(A). Exemption from this requirement is allowed under Section 4975(d)(13). The IRS measures require employee plans examiners to ensure that plans are complying with these requirements. Furthermore, these examiners are advised to be particularly careful in examining plan loans, terminated plans and plan asset valuations.

Qualified benefit plans

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When will a tax modification be a taxable event?

Article Abstract:

Proposal Regulations (FI-31-92) provide guidelines on how and when debt instrument modifications can be considered taxable events. The regulations interpret the provisions of Section 1001 and provide a further elaboration on Regulation 1.1001-1(a). Application of the proposed regulations necessitate a two-step analysis. The first step in this analysis considers whether the original debt instrument has been changed and the second step considers whether the change is significant.

Property taxes, Property tax

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Accurate withholding can save money (and aggravation.)

Article Abstract:

Tax practitioners can provide considerably precise calculations of tax liability and withholding when a taxpayer's salary can be accurately anticipated. Accurate withholding advice can increase a taxpayer's take-home pay without incurring the risk of an underwithholding penalty. Sample calculations for various categories of taxpayers are presented to illustrate how estimated incomes and deductions are used to compute withholding amounts.

Withholding tax

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