Tax planning for 2015 is a venture in uncertainty.
Last December, Congress passed legislation extending a number of expired tax provisions. Unfortunately, they were extended only until Dec. 31, 2014. At this point, we don’t know their status for 2015 and beyond.
There has been a great deal of talk about tax simplification, but currently it appears to be all talk with no substance and little momentum for achieving true reform.
On April 16, the U.S. House of Representatives voted to repeal the estate tax, but this was seen as largely a symbolic gesture because the U.S. Senate does not appear to have enough votes to pass the legislation. Even if the bill were to survive the Senate, President Obama is likely to veto it. The House is apparently attempting to keep the issue in the forefront with an eye to repeal in 2017.
Rules regarding IRA rollovers have changed. As of 2015, taxpayers may make only one IRA-to-IRA rollover per year. This does not limit direct rollovers from trustee to trustee.
It should also be pointed out that the penalty for failure to maintain qualifying health insurance takes a big leap in 2015. The penalty is the greater of $325 for each adult and $162.50 for each child (but no more than $975) or 2 percent of household income minus the amount of the taxpayer’s tax-filing threshold.
Dealing with the IRS has become more difficult as a result of budget cuts that make it difficult to reach IRS personnel by phone or in person at most offices. In that same vein, the chances of being audited by the IRS are at the lowest they have been for years. However, the IRS remains quite proficient at sending out computer-generated notices, usually from document-matching processes.
Visit VonLehman’s MidYear Tax Planning Insight here. If you have any questions, contact your tax adviser or send questions to info@vlcpa.com.
Curt Wenzler is a VonLehman shareholder, CPA and leader of VonLehman’s Tax Services Group.
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