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October 2016


Spend an afternoon with us on Friday, October 21st and Improve your Practice Management Know-How!

In one afternoon, you’ll learn practical steps that you can take immediately to improve your Practice, including:

Session 1 (1 pm – 2:45 pm ) offers:

  • Option A – DiSC PERSONAL ASSESSMENT TOOL FOR BETTER MANAGEMENT with Laurie LaBrie, President/Integrated HR Team
  • Option B – PRACTICE MANAGEMENT FORUM - THE GOOD, THE BAD AND THE UGLY facilitated by Andrew Schwartz, CPA/Schwartz & Schwartz Partner, with informative presentations from various professionals who support the dental industry

Session 2 (3 pm – 4:30 pm) offers:

  • Option A – EAGLESOFT SOFTWARE AND REPORTS TRAINING with Christine Narducci, Patterson Dental Supply
  • Option B – CUT YOUR COSTS, CUT YOUR TAXES by Andrew Schwartz, CPA/Schwartz & Schwartz PC

Friday, October 21, 2016

at Cafe Escadrille
26 Cambridge Street, Burlington, MA
12 pm – 1 pm: Complimentary Lunch and Registration
1 pm – 5 pm: Class sessions 

Register today for our FREE dental client event
~ CE available ~ Lunch included



                            by Michael Bohigian CPA

Many of our physician clients work as Locum Tenens in states other than their home state for an occasional shift or sometimes for a longer stretch of time. Most states require taxes to be paid on the income earned in their state, even if it’s only for one day of work in a year.

So come tax time, as a reward for their industriousness, these doctors must file non-resident returns in all the various states they’ve worked.  This complicates their tax filing, of course, and puts a burden on the entire system, as more and more tax returns must be processed by the multiple states. Oftentimes minimal taxes are even owed on small sums of income. Moreover, since a person’s home state ultimately credits them for taxes paid to other states, it can be argued that this leads to a gigantic national net wash.

The House of Representatives will soon be considering a bill to simplify the process for all states: the H.R. 2315, the Mobile Workforce Income Tax Simplification Act of 2015.  Originally sponsored with bi-partisan support in the spring of 2015, the bill will limit states from collecting individual income tax on people who are in the state for less than 30 days.  The main objectives of the bill are to reduce the needless tax complexities and red tape of the current processes, while encouraging and fostering interstate commerce. 

We'll keep you posted on any developments, so stay tuned.



New Procedure Helps People Making IRA and Retirement Plan Rollovers

IR-2016-113, Aug. 24, 2016

WASHINGTON — The Internal Revenue Service today provided a self-certification procedure designed to help recipients of retirement plan distributions who inadvertently miss the 60-day time limit for properly rolling these amounts into another retirement plan or individual retirement arrangement (IRA).

In Revenue Procedure 2016-47, posted today on, the IRS explained how eligible taxpayers, encountering a variety of mitigating circumstances, can qualify for a waiver of the 60-day time limit and avoid possible early distribution taxes. In addition, the revenue procedure includes a sample self-certification letter that a taxpayer can use to notify the administrator or trustee of the retirement plan or IRA receiving the rollover that they qualify for the waiver.

Normally, an eligible distribution from an IRA or workplace retirement plan can only qualify for a tax-free rollover treatment if it is contributed to another IRA or workplace plan by the 60th day after it was received.  In most cases, taxpayers who fail to meet the time limit could only obtain a waiver by requesting a private letter ruling from the IRS.

A taxpayer who missed the time limit will now ordinarily qualify for a waiver if one or more of 11 circumstances, listed in the revenue procedure, apply to them. They include a distribution check that was misplaced and never cashed, the taxpayer’s home was severely damaged, a family member died, the taxpayer or a family member was seriously ill, the taxpayer was incarcerated or restrictions were imposed by a foreign country. 

Ordinarily, the IRS and plan administrators and trustees will honor a taxpayer’s truthful self-certification that they qualify for a waiver under these circumstances. Moreover, even if a taxpayer does not self-certify, the IRS now has the authority to grant a waiver during a subsequent examination. Other requirements, along with a copy of a sample self-certification letter, can be found in the revenue procedure.

The IRS encourages eligible taxpayers wishing to transfer retirement plan or IRA distributions to another retirement plan or IRA to consider requesting that the administrator or trustee make a direct trustee-to-trustee transfer, rather than doing a rollover. Doing so can avoid some of the delays and restrictions that often arise during the rollover process. For more information about rollovers and transfers, check out the Can You Move Retirement Plan Assets? section in Publication 590-A or the Rollovers of Retirement Plan and IRA Distributions page on


Example of the Certification for Late Rollover Contribution (included in Rev. Proc 2016-47)

Certification for Late Rollover Contribution

City, State, ZIP Code
Date: ______________________

Plan Administrator/Financial Institution
City, State, ZIP Code

Dear Sir or Madam:

Pursuant to Internal Revenue Service Revenue Procedure 2016-47, I certify that my contribution of $ [ENTER AMOUNT] missed the 60-day rollover deadline for the reason(s) listed below under Reasons for Late Contribution. I am making this contribution as soon as practicable after the reason or reasons listed below no longer prevent me from making the contribution. I understand that this certification concerns only the 60-day requirement for a rollover and that, to complete the rollover, I must comply with all other tax law requirements for a valid rollover and with your rollover procedures.

Pursuant to Revenue Procedure 2016-47, unless you have actual knowledge to the contrary, you may rely on this certification to show that I have satisfied the conditions for a waiver of the 60-day rollover requirement for the amount identified above. You may not rely on this certification in determining whether the contribution satisfies other requirements for a valid rollover.

Reasons for Late Contribution

I intended to make the rollover within 60 days after receiving the distribution but was unable to do so for the following reason(s) (check all that apply):

 ___ An error was committed by the financial institution making the distribution or receiving the contribution.

___ The distribution was in the form of a check and the check was misplaced and never cashed.

 ___ The distribution was deposited into and remained in an account that I mistakenly thought was a retirement plan or IRA.

 ___ My principal residence was severely damaged.

 ___ One of my family members died.

___ I or one of my family members was seriously ill.

___ I was incarcerated.

___ Restrictions were imposed by a foreign country.

___ A postal error occurred.

___ The distribution was made on account of an IRS levy and the proceeds of the levy have been returned to me.

___ The party making the distribution delayed providing information that the receiving plan or IRA required to complete the rollover despite my reasonable efforts to obtain the information.


I declare that the representations made in this document are true and that the IRS has not previously denied a request for a waiver of the 60-day rollover requirement with respect to a rollover of all or part of the distribution to which this contribution relates. I understand that in the event I am audited and the IRS does not grant a waiver for this contribution, I may be subject to income and excise taxes, interest, and penalties. If the contribution is made to an IRA, I understand you will be required to report the contribution to the IRS. I also understand that I should retain a copy of this signed certification with my tax records.

Signature: ________________________________




Income Taxes

Saving and Investing




2015 & 2016 TAX FACTS

  • For 2015, the standard deduction for a single individual is $6,300 and for a married couple is $12,600. A person will benefit by itemizing once allowable deductions exceed the applicable standard deduction. Itemized deductions include state and local income taxes (or sales taxes), real estate taxes, mortgage interest, charitable contributions, and unreimbursed employee business expenses.
  • For 2015, the personal exemption is $4,000. Individuals will claim a personal deduction for themselves, their spouse, and their dependents. 
  • The maximum earnings subject to social security taxes is $118,500 for 2015 and 2016, up from $117,000 in 2014.
  • The standard mileage rate is $.54 per business mile as of January 1, 2016, down from $.575 for 2015.
  • The maximum annual salary deferral into a 401(k) plan or a 403(b) plan is $18,000 in 2015 and 2016, up from $17.5k in 2014.  And if you'll be 50 or older by December 31st, you can contribute an extra $6,000 into your 401(k) or 403(b) account this year.
  • The maximum annual contribution to your IRA is $5,500 for 2015 and 2016.  And if you turn 50 by December 31st, you can contribute an extra $1,000 that year.  You have until April 15, 2017 to make your 2016 IRA contributions.


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This Month's Topics

Annual Dental Practice Management Summit Offered By MDTAXES And Schwartz & Schwartz PC

Congress to Consider Bill to Simplify State Taxes for People Who Work in Multiple States 

IRS Helps Out Recipients Of Retirement Plan Distributions Who Miss 60-Day Deadline For Rollover

The FICA Refund for Medical Residents 

2015 & 2016 Tax Facts

Tax and Financial Planning Calendar for October 2016


Browse our index of previous months' newsletter topics

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In a shocking development, the IRS recently announced that they will be honoring the FICA tax refunds submitted by residency programs and individual doctors.  The catch is that only FICA taxes paid prior to 4/1/05 qualify.

For more information, go to our April 2010 Newsletter, our January 2009 Newsletter, or our February 2001 Newsletter or read through the IRS' Chief Counsel Advice Memorandum on this issue.

Let's work together to keep current on this hugely valuable tax break.  Please post whatever you read or hear regarding this FICA issue on our new Message Board we set up just for this topic.


Copyright 2016 The MDTAXES Network by CPANiche, LLC    Email us at Copyright 2016 The MDTAXES Network by CPANiche, LLC    Email us at