AKMCPA Alerts

New Cost Basis Reporting Rules Require New Attention from Investors

Beginning in 2011, brokers will be required to report the cost basis of securities acquired and sold after January 1, 2011 to the Internal Revenue Service for taxable accounts (not retirement accounts). Up until that date, brokers were required to report only the gross proceeds on sales for taxable accounts. Cost basis is the original purchase price you paid for an investment, plus commissions and fees. Continue reading

Posted in Alerts, News

Do Not Respond to Email “from the IRS”

Many clients have reported receiving email “from the IRS.”  The subjects vary, but include: “You are due a refund.” “We could not verify your information.” “We suspect an unauthorized transaction on your account.” Do not respond to such messages. The … Continue reading

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Estate Tax Repeal – Practical Implications

Under legislation passed in 2001, the federal estate tax was repealed for one year, effective January 1, 2010 and ending December 31, 2010. It is widely expected that Congress will reinstate the estate tax for tax year 2010, perhaps even retroactively. Needless to say, this may present problems for the heirs of people dying during 2010. Continue reading

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When Shouldn’t You Respond to the IRS?

As CPAs, we are always advising clients to respond to IRS notices as quickly as possible or, better yet, to bring them in and let us do it. But there is at least one instance when you should ignore a communication that seems to be from the IRS: when it’s an email. Continue reading

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