The task of determining how much tax you owe on retirement income is not an easy one, and taxpayers consistently get it wrong. Because of this, the IRS has recently turned its attention to capturing lost funds, and a report released Tuesday by the Treasury Inspector General for Tax Administration cites ways this can be done. Their No. 1 suggestion? Revising the 1099-R form to clarify that a return marked “Taxable amount not determined” requires the taxpayer to determine the taxable amount. The profits resulting from this one small change could be huge. TIGTA found forms listing $107.5 billion in taxable amounts in total that all had a box checked that said “Taxable amount not determined.” It also found forms with distributions totaling $67 billion where the taxable amount was left blank. “This contradictory or absent information can confuse taxpayers, resulting in them reporting the incorrect amounts of retirement income on their tax returns,” the report says.
The groups are working to get the Secure Act out of neutral.
The publicly traded China Oceanwide unit says it needed cash partly because of the state of the economy.
Nassau, the Phoenix Companies Inc. buyer, aims to sell new products, not just administer old products.
Sponsored by LPL Financial
Get an in-depth look at how you can lock in future value through proven tactics that will grow your bottom line.
Sponsored by Smarsh
Many companies today are making the move to Office 365. Find out whether it’s the right move for your firm.
Don’t miss crucial news and insights you need to make informed investment advisory decisions. Join ThinkAdvisor.com now!
- Free unlimited access to ThinkAdvisor.com which provides advisors, like you, with comprehensive coverage of the products, services and trends necessary to guide your clients in making critical wealth, health and life decisions.
- Exclusive discounts on ALM and ThinkAdvisor events.
- Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.
Copyright © 2019 ALM Media Properties, LLC. All Rights Reserved.