Changes in the Emergency Economic Stabilization Act of 2008 were undoubtedly the most significant tax developments in the final quarter of 2008. However, there were many less-publicized developments which may affect you, your family, and your livelihood. These other key developments have been reported to its members by the Federation of American Consumers and Travelers (FACT). They include:
Required minimum distributions (RMDs) for calendar year 2009 are WAIVED.
A new law enacted in late 2008 provides that retirement plan account participants, IRA owners, and their beneficiaries do NOT need to take RMDs for 2009. This means that taxpayers who can take advantage of this change won't be forced to sell stock or mutual fund shares held in retirement accounts when their value is exceptionally depressed.
Qualified plans MUST offer post-2009 rollover option for non-spouse beneficiaries.
The rollover option will give much-needed flexibility to those who inherit retirement plan accounts from someone other than their spouse, such as a parent, an uncle, or a same-sex partner.
Standard mileage rates down for 2009
The optional mileage allowance for owned or leased autos (including vans, pickups or panel trucks) is 55¢ per mile for business travel after 2008. That's 3.5¢ less than the 58.5¢ allowance for business mileage that applied in the last six months of 2008.
Simplified per diem rates rise effective Oct. 1.
The IRS has issued the “high-low”
IRS expedites lien process for homeowners trying to sell or refinance
The IRS has announced an expedited process to make it easier for financially distressed homeowners to avoid having a federal tax lien block refinancing of mortgages or the sale of a home.
Final rules for information reporting of employer-owned life insurance.
The IRS issued final regulations providing guidance on the information reporting required on employer-owned life insurance contracts. In general, employers must treat death benefits from such insurance on many employees as taxable income, for contracts issued after Aug. 17, 2006. FACT is a not-for-profit association which was founded in 1984 and which provides a variety of benefits -- ranging from medical insurance and dental care discounts to prescription drug savings and
timely consumer information -- for more than 1 million Americans.
Vicki Rolens, managing director of FACT, says: “FACT doesn’t purport to be a tax-advisory organization. We do, however, keep abreast of tax changes which could impact our members ... we report our understanding of those changes ... and we hope our reports will trigger everyone to talk with a qualified tax professional.”
Rolens says that a more comprehensive explanation of recent tax changes will appear in the association’
FACT News Releases Consumer Hotline Medical Insurance Dental Care Discounts Prescription Drug Savings Tax Changes IRS
