| Enrolled Actuaries |
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| An enrolled actuary is an individual who has satisfied established standards and qualifications and who has been approved to perform the actuarial services required under the Employee Retirement Income Security Act of 1974 (ERISA). These services include the application of the principles of probability and compound interest to determine the present value of payments to be made after certain specified conditions are fulfilled or certain specified events have occurred. More... |
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| Identity Theft Scheme Involving E-mails |
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| You get an email from the Internal Revenue Service informing you that you are under investigation for tax fraud and are subject to criminal prosecution. Once you have started breathing again, you read further and get to the good news. According to the e-mail, there is an IRS website that can help your investigation if you provide certain personal and financial information. You go the website, which is certainly official looking, and think about entering the requested data, including your social security and drivers license numbers, and bank and credit card information. But then you see a grammatical error in the website text, and a bell goes off in your head. Fortunately, you contact your local IRS office before doing anything else.More... |
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| Non-deductible Business Interest |
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| Not all interest is deductible by a business. In general, you are not permitted to deduct interest that must be capitalized under the Internal Revenue Code, that is not really interest, that is personal interest, or that is prohibited under other sections of the tax law.More... |
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| Veterans' Organizations Exempt under IRC 501c19 |
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| Prior to the enactment of Internal Revenue Code Section 501(c)(19) in 1972, war veterans' organizations were grouped together with all other veterans' organizations and recognized as tax-exempt under the social welfare and social club sections of the Code. Under the original version of the statute, an organization formed under Section 501(c)(19) could carry on programs involving Americanism, youth activities, community activities, and educational programs on issues of national security and foreign affairs. In addition, veterans' organizations could receive exempt income by providing certain insurance benefits for members or their dependents. More... |
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| Coverdell Education Savings Accounts |
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| Congress has created the Coverdell Education Savings Account (ESA) to encourage parents and students to save for the ng costs of education. The Coverdell ESA is a trust or custodial account set up in the United States solely for the purpose of paying qualified education expenses for the designated beneficiary of the account. Any taxpayer who meets the adjusted income requirements can make a non-deductible contribution of up to $2,000 on behalf of a child who is under the age of 18. The tax advantage occurs at the time that the funds are used because the earnings of the contributions are distributed tax-free as long as they are used for qualified education expenses.More... |
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