IMPORTANT TAX
NEWS (If what Merrily states below is correct)
From: Jim
Horan
Date: 5/24/2012 11:53:23 AM
To: 'Mark Sztanyo'
Subject: Some info on Form 1040X and Form
843 for 2007
Hi
Mark:
I
am emailing this directly to you versus a specific area (e.g. Miscellaneous). I
don’t know what area you want to assign it to.
A
few days ago, I received an email from Bill Whalen with the subject line “RE/MAX
Cheap Properties”. It was sent from Bill’s email address and I suspect a worm
had invaded his Contact List. I tried to contact him via his sonetas@aol.com
address but it was kicked back as “undeliverable”. I suspect he had that
address terminated.
So
I contacted Merrily Probst Whalen. She had received the same email and has not
been in touch with Bill for over 6 months. Merrily was also kind enough to
provide some information that may be of interest to those subscribed to the
Pilot Communication Network (PCN). I asked her if that was OK and she said go
right ahead as it may “lighten her load”. So I will paste the info contained in
two of her emails below.
But
first, as a summary of my specific situation, I was successful with the filing
of my 1040X (filed by Whalen) and received a check for the filed amount plus
interest in June, 2011. My initial 843 filing (done by Whalen also) was denied
and I filed my own appeal. I recently received a denial of that appeal from the
PHL IRS office. The amount I was trying recover was $3451.00.
So
here is the content of her first email:
Jim,
I think you are
right and he was hacked since I got two of them. No, I haven’t spoken to him in
over six months but I am sure he has nothing to do with real estate.
Yes, I got the
info that the 843 was denied and it is no surprise. I did hear from an IRS
person that the General Counsel (IRS’s #1 attorney) has notified all the Districts that no further DAL
refunds are to be allowed. The only chance is if they allow the position
that Delta was guilty of breach of contract and the payment was for that breach
of contact. There is nothing new to report about anything with Bill and his
lawsuit in District Court.
Also, I have
received a lot of inquiries regarding the new “FAA Modernization and Reform Act
of 2012” (Public Law 112-95) provisions. Basically it is mental masturbation by
the IRS. It allows for 90% of the DAL distribution to be put into a regular IRA
account and amend the 2007 return to take the deduction. It does not change the
fact that they withheld Social Security and Medicare from the payment and it is
all taxable – just not all taxable in 2007. There is no difference in tax paid
except in timing. They win. Plus the amount you have to fund is more than you
received because 90% would include a lot of the taxes that they withheld.
What it does do is
give a refund of the tax paid on the amount in 2007 and make it taxable in a
future year. However, if they pay the refund there will be interest paid on the
amount for the four plus years (and that interest will be taxable of course).
The contribution has to be made into an IRA by August 13, 2012, and the 2007
again amended by April 15, 2013.
The previous plan allowed
the amount to be rolled into a Roth IRA (which is non-taxable when collected).
If a Roth was funded in 2007 when received they will allow 90% to be rolled
into a Regular IRA and the deduction allowed, but it has to be a
trustee-to-trustee transfer.
Take care,
Merrily
And
here is the second email:
Jim,
You are welcomed
to share any information with anybody that it would be helpful. I think lots of
you guys have contacted me already and maybe something from you will lighten my
load. You can say the info is my opinion, it’s a fact that is what I believe.
Thanks. You can cut and paste the whole narrative on the new law, and maybe add
this paragraph:
These provisions are especially wonderful
in that the tax liability may be spread over several year, those dollars that
you receive will be greatly inflated and have a greatly diminished buying
capabilities (thanks to our wonderful representation in DC) and the tax rates
will ‘necessarily’ be substantially higher (if the current regime continues).
Face it, whether you are a half empty or a half full person, you are still
being screwed out of 50%.
Every time I
answer a similar question like the one on this law, I cut and paste and
elaborate a bit every time while I personalize it, and came up with this addition.
Believe it or not I am smiling.
Take care,
Merrily
Merrily
has been very kind to respond to all of us that have either called or emailed
her, and this is without any financial remuneration from either Bill Whalen or
any of us.
So
where do we stand now? I honestly do not know. FYI I have BCC’d Merrily on this
email so she knows what was sent to all in the PCN.
Mark….I
hope you make it back to the left seat. Once there (as you know) it is hard to
go back.
Best,
Jim
767A/ATL
(ret. 7/1/2000)
Jim
Horan
P.O.
Box 7480
2165B
Saddle Ridge Loop
Avon,
CO 81620
970-845-7922
++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
From: Will Kattula
Date: 5/22/2012 9:42:36 PM
To: PCN Dir
Subject:
Rollover of Airline Payments to Traditional IRAs -- 04-APR-2012
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ The above post is not necessarily the opinion or shared view of the editor. Some posts may be excluded from the current issue because of too much content or deemed inappropriate. All PCN subscribers are welcome to post. PCN Home Page is located at: http://pcn.homestead.com/home01.html
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