Borrowing From Your 401(k)?

{3:07 minutes to read} A recent court case demonstrates the need to pay very close attention to the procedures for a repayment of a 401(k) loan, and that there is no “reasonable cause” exception when a taxpayer fails to make a 401(k) loan repayment. 

Borrowing From Your 401(k) by Susan Moussi

In Frias, T. C. Memo. 2017 – 139, July 11, 2017, an employee left for maternity leave on July 30, 2012, to have her third child. Here are the facts of the case: 

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The Alimony Recapture Rule: What It Is & How to Avoid It

The Alimony Recapture Rule: What Is It & How to Avoid It by Susan Moussi

{2:10 minutes to read} The alimony recapture rule is a potential tax consequence when alimony is paid for a period of fewer than three years and when there are dramatic drop-offs in the amount paid from year to year. 

There are times when alimony may be paid by one spouse to another for a very short period of time. When this happens, the payor of alimony risks the possibility of having to report so-called phantom income. 

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Don’t Be a Victim of Tax-Related Identity Theft

Don’t Be a Victim of Tax-Related Identity Theft by Susan Moussi

{2:55 minutes to read}

During the last tax season, I had several clients – even in my very small tax practice – experience a new twist in tax-related identity theft.

Clients received notices from the IRS thanking them for filing their 2014 tax return, although we had not yet even filed one. Someone else used their stolen Social Security number to file a tax return and claim a fraudulent refund. The thieves used stolen Social Security numbers and even stolen Employer Identification Numbers (EIN) from a business to create false W2 forms to support the false claims.

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