Proposal to Limit the Conversion of a Non-Deductible IRA to a Roth IRA

Each year the Department of the Treasury issues General Explanations of the Administration’s Fiscal Year Revenue Proposal. The Fiscal Revenue Proposal for 2017 was released in February of 2016.

The proposal would permit only those pre-tax dollars in a non-deductible IRA account to be converted to a Roth IRA. Thus, after-tax amounts held in a traditional IRA could not be converted to a Roth IRA. The Proposal would apply to conversions occurring after December 31, 2016.

IRS Alerts Taxpayers to Summer Increase in Phone Scams, Requests for Fake Tax Payments

The IRS has warned taxpayers about a summertime increase in telephone scams, in the form of automated calls and new tactics from scammers demanding tax payments on iTunes and other gift cards. These fake calls generally claim to be the last warning before legal action is taken, the IRS explained. Scammers may threaten to arrest, deport or revoke the driver’s license of the victim if they do not agree to pay.