Your IRS Tax Appeal Rights

Written by Richard A. Chapo

Are you inrepparttar middle of a disagreement withrepparttar 148230 IRS? One ofrepparttar 148231 guaranteed rights for all taxpayers isrepparttar 148232 right to appeal. If you disagree withrepparttar 148233 IRS aboutrepparttar 148234 amount of your tax liability or about proposed collection actions, you haverepparttar 148235 right to askrepparttar 148236 IRS Appeals Office to review your case.

During their contact with taxpayers, IRS employees are required to explain and protect these taxpayer rights, includingrepparttar 148237 right to appeal. The IRS appeals system is for people who do not agree withrepparttar 148238 results of an examination of their tax returns or other adjustments to their tax liability. In addition to examinations, you can appeal many other things, including:

1. Collection actions such as liens, levies, seizures, installment agreement terminations and rejected offers-in-compromise 2. Penalties and interest 3. Employment tax adjustments andrepparttar 148239 trust fund recovery penalty

Internal IRS Appeal conferences are informal meetings. The local Appeals Office, which is independent ofrepparttar 148240 IRS office, can sometimes resolve an appeal by telephone or through correspondence.

The IRS also offers an option called Fast Track

Early Distributions From Retirement Plans

Written by Richard A. Chapo

An early distribution from an Individual Retirement Arrangement (IRA) or a qualified retirement plan need not be a “taxing” experience. Fortunately, there are exceptions to early distributions.

Any payment that you receive from your IRA or qualified retirement plan before you reach age 59½ is normally called an “early” or “premature” distribution. As such, these funds are subject to an additional 10 percent tax. But there are a number of exceptions torepparttar age 59½ rule that you should investigate if you make such a withdrawal. Some of these exceptions apply only to IRAs, some only to qualified retirement plans, and some to both. IRS Publications 575, Pensions and Annuities, and 590, Individual Retirement Arrangements (IRAs), have details.

In addition torepparttar 148229 10 percent tax on early distributions, you will add to your regular taxable income any distributions attributable to “elective deferrals” that you contributed from your pay, your employer’s contribution and any income earned on all contributions torepparttar 148230 account. If you made any nondeductible contributions, their portion ofrepparttar 148231 distribution is not taxed, since you’ve already paid tax on this amount.

There is a way to avoid paying any tax on early distributions, however. It is called a “rollover.” Generally, a rollover is a tax-free transfer of cash or other assets from an IRA or qualified retirement plan to an eligible retirement plan. An eligible retirement plan is a traditional IRA, a qualified retirement plan, or a qualified annuity plan. You must completerepparttar 148232 rollover within 60 days of when you receivedrepparttar 148233 distribution. The amount you roll over is generally taxed whenrepparttar 148234 new plan pays you or your beneficiary.

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