The only difference between a taxidermist and a tax collector is that the taxidermist only takes your skin.
– Mark Twain
Don’t try to keep your inheritance a secret from the IRS by sending them an email. There are other ways you might consider for reducing your tax exposure:
Tax-managed mutual funds. There are really only two ways these vehicles can attempt tax-efficiency – low turnover or offsetting gains with losses. It’s an option, but frankly not one of my favorites. Continue reading
This, courtesy of the Financial Planning Association (FPA), of which I am a member:
A U.S. Tax Court ruling on IRA rollovers has the IRS changing its longstanding position.
In January of this year the U.S. Tax Court ruled that the “once a year” IRA rollover rule applies to all of an individual’s IRAs, not to each separately. The court’s decision conflicts with a longstanding IRS position (as outlined in IRS Publication 590) that states the rule applies separately to each IRA owned, thus allowing multiple rollovers if taken from separate accounts during a 365-day period — as opposed to a calendar year period.
For its part, the IRS had not publicly indicated how it would handle the court’s decision until recently, when it announced that it would uphold the court’s decision and revise its rules and publications accordingly. Continue reading