More On Legal & Compliancefrom The Advisor's Professional Library
- RIAs and Customer Identification Just as RIAs owe a duty to diligently protect their clients privacy and guard against theft, firms also play a vital role in customer identification. Although RIAs are not subject to an anti-money laundering rule, securities regulators expect advisors to address these issues in their policies and procedures.
- Client Communication and Miscommunication RIA policies and procedures must specify what type of communications should be retained. The safest course of action is for RIAs to retain all communicationsto clients, from clients, and about client accounts. To comply with fiduciary obligations, communications must be thorough and not mislead.
Congress's original intention when it created the Alternative Minimum Tax, was to make sure that the wealthiest Americans weren't able to combine so many exemptions or deductions that they ended up paying little or no income taxes. In a study released today, the Tax Foundation lays out a revenue-neutral plan to restore the AMT to its original role.
The plan cuts tax rates for low- and middle-income groups, who were never the intended targets of the law, making the overall distribution of the tax burden more "progressive," i.e., shifting the tax burden up the income scale. The majority of individuals in every income group less than $500,000 would get a tax cut.
The report, Tax Foundation Special Report, No. 157, by economist
Gerald Prante calls for four tax-cutting provisions and four expansions of taxable income that offset each other, keeping revenue the same. This proposed solution would be in line with new rules in the House of Representatives requiring that any tax changes produce no change in revenue.
The full study is available here.