The Net Investment Income Tax (NIIT) is an additional 3.8% Medicare tax, introduced by the addition of §1411 of the Internal Revenue Code by the Health Care and Education Reconciliation Act of 2010. The tax is in effect for tax years beginning after December 31, 2012. The regulations for §1411 are yet to be finalized, but the proposed regulations are suitable for taxpayers and preparers to rely on in the interim.
Bennett Thrasher shareholder Jonathan Swartz was cited in the article “Switcheroo: Is Tax Swap Best Move?” published in the Consumers Digest. In the past, the IRS enforced tight restrictions on who could convert 401(k) accounts to Roth 401(k) accounts.
Bennett Thrasher’s Jonathan Swartz, shareholder, Jeff Eischeid, shareholder, and Chris Benner, senior manager, presented, “An Accountant’s Guide to Common Estate and Gift Tax Compliance Issues” on Feb. 9, 2013 as part of the 58th Annual Estate Planning Institute at the Georgia Center for Continuing Education.
On January 3, President Obama signed into law the American Taxpayer Relief Act.
Despite negotiations taking place in private during the year-end holidays, this is one of the most important changes to Federal tax law in years.