DENTAL PRACTICE MANAGEMENT SUMMIT OFFERED BY MDTAXES AND SCHWARTZ & SCHWARTZ
Spend an afternoon with us on Friday, October 21st and Improve your Practice ManagementKnow-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
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
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
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.
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).
Procedure 2016-47, posted today on
IRS.gov, 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
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 theCan
You Move Retirement Plan Assets?section
in Publication 590-A or the
Rollovers of Retirement Plan and IRA Distributionspage
Example of the Certification for Late Rollover Contribution (included in
Certification for Late Rollover Contribution
City, State, ZIP Code
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
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.
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
For 2015, the personal exemption is $4,000. Individuals will claim a personal deduction for themselves, their spouse, and
The maximum earnings subject tosocial security taxes is $118,500
for 2015 and 2016, up from $117,000 in 2014.
The standard mileage rateis $.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
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.