Contact Paul +

Time limit is exhausted. Please reload CAPTCHA.

IRA

A guide to drawing down your savings in retirement

A guide to drawing down your savings in retirement

As reported in the LA Times, “A guide to drawing down your savings in retirement.” The approach of retirement should be an exciting time for 50- and 60-somethings. But when the issue is your finances — and whether you’ve saved enough to last the rest of your life — excitement can quickly be overridden by […]

Read the full article →

How to divvy up assets as you head for retirement

How to divvy up assets as you head for retirement

As reported in the LA Times, “How to divvy up assets as you head for retirement.” Choosing how to invest retirement savings often ends up being a dartboard exercise for younger people, because it all seems so theoretical. As the date of retirement or semi-retirement gets nearer, however, you begin to realize that your financial […]

Read the full article →

Rollover requirement waived for taxpayer who relied on spouse’s financial acumen

Rollover requirement waived for taxpayer who relied on spouse’s financial acumen

PLR 201612017 In a private letter ruling (PLR), IRS has waived the 60-day IRA rollover requirement for a spouse who erroneously relied on her spouse’s financial know-how. However, the other spouse wasn’t as lucky. His untimely IRA rollover got no relief because he couldn’t show that he intended to make a valid rollover. He deposited […]

Read the full article →

Tax Court – IRA owner’s guarantee of loan to IRA-owned corporation resulted in deemed distribution

Tax Court – IRA owner’s guarantee of loan to IRA-owned corporation resulted in deemed distribution

Thiessen, (2016) 146 TC No. 7 The Tax Court has held that a taxpayer’s personal guarantees of loans made to a corporation that he formed and that was owned by his individual retirement account (IRA) were prohibited under Code Sec. 4975 and resulted in a deemed distribution of all of the IRA assets. It also […]

Read the full article →

Court of Federal Claims – taxpayers’ “rollover as business startup” account wasn’t valid retirement plan

Court of Federal Claims – taxpayers’ “rollover as business startup” account wasn’t valid retirement plan

Powell v. U.S., (Ct Fed Cl 3/16/2016) 117 AFTR 2d ¶ 2016-515 The Court of Federal Claims has denied taxpayers’ claim for refund, rejecting their argument that their Individual Retirement Account (IRA) withdrawals were nontaxable distributions that were rolled over into a “Business Owners Retirement Savings Account,” or BORSA — essentially, a variation of a […]

Read the full article →

Tax Court – failure to report court-ordered IRA liquidation results in accuracy-related penalty

Tax Court – failure to report court-ordered IRA liquidation results in accuracy-related penalty

Navaid, TC Memo 2016-37 The Tax Court has ruled that a taxpayer who failed to report the court-ordered liquidation of his bank-held IRA for restitution payments was liable for the accuracy-related penalty for substantial understatements of income tax. Although the taxpayer was never notified of the court’s action and never received a Form 1099-R, the […]

Read the full article →

Surviving spouse/sole trustee of decedent’s trust granted rollover relief for IRA despite regs

Surviving spouse/sole trustee of decedent’s trust granted rollover relief for IRA despite regs

PLR 201606032 In a Private Letter Ruling (PLR), IRS has ruled that it would waive the 60-day rollover requirement for a taxpayer whose failure to timely roll over funds from her husband’s individual retirement arrangement (IRA) to her IRA was due to her emotional distress following the death of her husband and the stress of […]

Read the full article →

Rollover relief granted to taxpayer who suffered emotional distress following spouse’s death

Rollover relief granted to taxpayer who suffered emotional distress following spouse’s death

PLR 201606032 In a Private Letter Ruling (PLR), IRS has ruled that it would waive the 60-day rollover requirement for a taxpayer whose failure to timely roll over funds from her husband’s individual retirement arrangement (IRA) to her IRA was due to her emotional distress following the death of her husband and the stress of […]

Read the full article →

No rollover relief for taxpayer who tried to use IRA distribution to buy partnership interest

No rollover relief for taxpayer who tried to use IRA distribution to buy partnership interest

PLR 201547010 In a private letter ruling, IRS has refused to waive the 60-day rollover requirement for a taxpayer whose attempt to use an IRA distribution to buy an interest in a partnership failed because the IRA custodian couldn’t hold the interest—a mistake that the taxpayer did not learn of for almost a year. Although […]

Read the full article →

Tax Court – Retirement plan participant couldn’t carry forward disallowed IRA contribution deduction

Tax Court – Retirement plan participant couldn’t carry forward disallowed IRA contribution deduction

Dunn, TC Memo 2015-208 The Tax Court has rejected various arguments made by a taxpayer to carry forward an IRA contribution deduction that was disallowed because, in the year for which the contribution was made, he was an active participant in a retirement plan and had high earnings.   Click here for the Opinion of the […]

Read the full article →

Year-end planning: reducing exposure to the 3.8% surtax on unearned income

Year-end planning: reducing exposure to the 3.8% surtax on unearned income

For high earning taxpayers, year-end tax planning for 2015 includes facing the complication of the 3.8% surtax on unearned income under Code Sec. 1411. This article takes a look at year-end moves that can be used to reduce or eliminate the impact of this surtax, including overall year-end strategies for coping with it and specific […]

Read the full article →

Court rejects scheme to overfund Roth IRA via DISC commissions

Court rejects scheme to overfund Roth IRA via DISC commissions

Summa Holdings Inc., TC Memo 2015-119 Applying the substance-over-form doctrine, the Tax Court has held that the payments that a corporation made to a domestic international sales corporation (DISC), that was in turn owned by Roth IRAs of the sons of the corporation’s controlling shareholder, were not DISC commissions. Rather, the Court concluded that these […]

Read the full article →

Retirement planning techniques that could be going away soon

Retirement planning techniques that could be going away soon

While Presidents and Congresses have for decades championed tax incentives for Americans to save for their retirement, a number of recent proposals aim to close down certain retirement planning techniques that some deem inequitable. In this article, we discuss three of those techniques and some of the proposals that would close down their use. High […]

Read the full article →

Court of Appeals, Eighth Circuit holds payment of wages to taxpayer by his IRA-owned LLC was prohibited transaction

Court of Appeals, Eighth Circuit holds payment of wages to taxpayer by his IRA-owned LLC was prohibited transaction

Ellis, et ux. v. Comm., (CA 6/5/2015) 115 AFTR 2d ¶ 2015-805 The Court of Appeals for the Eighth Circuit, affirming the Tax Court, has concluded that where an individual taxpayer had his IRA own the shares of his business, a limited liability company (LLC), the LLC’s payment of compensation to the taxpayer for his […]

Read the full article →

TIGTA Addresses IRS Action On Excess IRA Contributions

TIGTA Addresses IRS Action On Excess IRA Contributions

A new Treasury Inspector General for Tax Administration (TIGTA) report finds that IRS hasn’t done enough to address the problem of taxpayers making excess contributions to IRAs. The report suggests ways the agency could improve its outreach program for IRA custodians and its methodology for identifying noncompliant taxpayers.  Click here for the TIGTA Report titled “Actions Can […]

Read the full article →

New Q&As Explain Single Distribution Rule For Retirement Plans

New Q&As Explain Single Distribution Rule For Retirement Plans

IRS has explained two important aspects of the new rule providing that when a taxpayer makes a retirement plan rollover to multiple qualified destinations, the amounts are treated as a single distribution for allocating pre- and after-tax contributions. The first is that a taxpayer can’t take a partial distribution of only after-tax amounts in a […]

Read the full article →

Charitable IRA Rollovers Could Get Reprieve

Charitable IRA Rollovers Could Get Reprieve

Charitable IRA Rollovers Could Get Reprieve – Many Expect Congress to Revive the Popular Provision Retroactively for 2014, as reported in the WS Journal. Congress ended the week poised to revive a popular tax provision that encourages charitable donations of individual-retirement-account assets. The charitable IRA rollover provision, which expired at the end of 2013, allowed […]

Read the full article →

The IRA Advantage of a Low Tax Bracket

The IRA Advantage of a Low Tax Bracket

The IRA Advantage of a Low Tax Bracket – In Years When Your Income Is Low, Consider a Roth Conversion, as reported in the WS Journal. What’s worse than paying taxes? Not paying any taxes at all—and wasting a great opportunity. Suppose 2014 is a year when you’ll have little or no taxable income. Perhaps […]

Read the full article →

Taxpayer Given Extension To Recharacterize Erroneous IRA-To-Simple-IRA Rollover

Taxpayer Given Extension To Recharacterize Erroneous IRA-To-Simple-IRA Rollover

PLR 201446036 IRS has granted a taxpayer an extension of time under Reg. § 301.9100-1 and Reg. § 301.9100-3 to make an election to recharacterize (i.e., undo) an erroneous 2008 IRA-to-Simple-IRA rollover as a contribution to an IRA. The taxpayer got the extension because she relied on her advisor when she made the forbidden rollover. […]

Read the full article →

IRAs can buy shares in trust invested in gold without triggering collectibles tax

IRAs can buy shares in trust invested in gold without triggering collectibles tax

PLR 201446030 IRS has privately ruled that the acquisition of shares of a trust invested in gold by either an IRA or an individually-directed account under a qualified retirement plan won’t be considered the acquisition of a collectible under Code Sec. 408(m). Thus, the amount invested won’t be treated as distributed under Code Sec. 408(m)(1). […]

Read the full article →
Page 1 of 212
Meet Paul Raymond

Meet Paul Raymond

Mr. Raymond is a sought after speaker in tax controversy law by many attorney, accountant, and business groups and at the request of the Internal Revenue Service, has presented programs at the IRS Nationwide Tax Forum, attended by tax professionals throughout the United States.

Additionally, he continues to be an active member in the Section of Taxation, American Bar Association, where he was the Past Chair of the Employment Taxes Committee.

Read More

Connect With Paul on Social Media

Practice Areas & Information

Certifications &
Associations
Member CA Bar Member Orange County Bar US Tax Court Attorney