2 Impending Deadlines-
Funding for Trad IRA is Aug 13, 2012 filing about it April 15, 2013.
From: evan gost
Date: 07/22/12 13:13:47
To: Mark Sztanyo
Subject: FW:
Help with 1040X
Mark-
This email does not apply to amended returns (IRS form 1040X) that attempted to re-characterize the bankruptcy settlement for medical claims as capital gains or requests for refund of FICA/Medicare taxes (IRS form 843).
However, if you filed an amended tax return relating to contributions of certain airline bankruptcy payments to a traditional IRA (allowed under the FAA Modernization and Reform Act of 2012), ALPA is willing to assist retired pilots in expediting the processing of that IRS form 1040X. Details about the FAA Modernization and Reform Act of 2012 were disseminated previously--including a post on the DDPSA website at www.ddpsa.org under NEWS dated Feb 22, 2012.
Below is an email that I received indicating ALPA's willingness to assist retired pilots. Please remember that the process applies only to IRS form 1040X relating to contributions to a traditional IRA.
Ev
This email does not apply to amended returns (IRS form 1040X) that attempted to re-characterize the bankruptcy settlement for medical claims as capital gains or requests for refund of FICA/Medicare taxes (IRS form 843).
However, if you filed an amended tax return relating to contributions of certain airline bankruptcy payments to a traditional IRA (allowed under the FAA Modernization and Reform Act of 2012), ALPA is willing to assist retired pilots in expediting the processing of that IRS form 1040X. Details about the FAA Modernization and Reform Act of 2012 were disseminated previously--including a post on the DDPSA website at www.ddpsa.org under NEWS dated Feb 22, 2012.
Below is an email that I received indicating ALPA's willingness to assist retired pilots. Please remember that the process applies only to IRS form 1040X relating to contributions to a traditional IRA.
Ev
"Feel
free to distribute this, as you see fit. We will be glad to forward the
name/SSN of any retirees who request it.
Item one.
ALPA and the IRS have jointly developed a process whereby those pilots who file
an IRS Form 1040X to reflect their contribution of an airline payment amount to
a traditional IRA under the provisions of the FAA Modernization and Reform
Act of 2012 can have the processing of their 1040X expedited. This process
applies if you have filed your IRS Form 1040X, whether or not you have already
received a denial letter from the IRS. If you wish to have ALPA intercede on
your behalf, please email your full name and Social Security Number (SSN) to IRSDenials@alpa.org, and we will forward this
on to the IRS for expedited processing. If you have received a denial of your
1040X, the IRS has informed us there is no reason to re-file or file an appeal,
so long as you provide your name and SSN to us for forwarding."
++++
RE:
Same topic
From: George Chaudoin
Date: 07/23/12 07:50:10
Subject: Helpful
Correction from ALPA see below
Hello George and Frank,
Note below from Kevin Powell, R&I Committee Chairman with regard to
the claim and note article in the One Claw. The returns that need to me amended
are for the tax year an airline employee may have received the claim and/or
note proceed. For most active Delta pilots at the time, that was calendar years
2007 and 2008.
As noted in the legislative language of Section 1106, the
deadline for amending returns is 15 APR 2013. The funding date of 13 AUG 2012
is correct.
There have been issues with the IRS denying the amended
returns and requiring pilots to go through an appeal process. In the last
couple of weeks, we have engaged our congressional allies to get the IRS to
clear up any misunderstanding, and last week we were able to resolve the
issues.
Item one in Kevin's email below is from this week's Delta
MEC code-a-phone.
Hope this info may be of assistance to you.
Dino
Begin forwarded message:
From: "Powell,
Kevin, DALMEC" <Kevin.Powell@alpa.org
Subject: Re: One Claw
#75 2nd 2012
Date: July 22, 2012
10:15:56 PM EDT
To: Dino Atsalis <k.ja@comcast.net
Dino,
I read this, and
George makes a mistake re: the 2012 Act. He claims that the tax refund is taken
off the 2012 tax return, rather than the 2007. That is wrong. You may wish to
correct that, if desired. Also, I'm fine with offering the following for their
use as well, if you wish to forward:
Item one. ALPA and
the IRS have jointly developed a process whereby those pilots who file an IRS
Form 1040X to reflect their contribution of an airline payment amount to a
traditional IRA under the provisions of the FAA Modernization and Reform Act of
2012 can have the processing of their 1040X expedited. This process applies if
you have filed your IRS Form 1040X, whether or not you have already received a
denial letter from the IRS. If you wish to have ALPA intercede on your behalf,
please email your full name and Social Security Number (SSN) to IRSDenials@alpa.org, and we will forward
this on to the IRS for expedited processing. If you have received a denial of
your 1040X, the IRS has informed us there is no reason to re-file or file an
appeal, so long as you provide your name and SSN to us for forwarding.
BTW, we send that out
Friday, and got 88 requests over the weekend! Liz will be forwarding those
tomorrow AM.
Kevin
On Jul 22, 2012, at
8:03 AM, Dino Atsalis wrote:
On The Green Side
George
++++
ALPA’s R & I Tax Memo regarding the
issue of funding a TIRA:
July 26, 2012 12-04
Latest
Update Regarding the Traditional IRA
Rollover
of Airline Payment Amounts
NOTE: This R&I Report supersedes R&I Report 12-03
due to updated information
received directly from a new contact at
the IRS. Please disregard R&I Report 12-03,
and instead, carefully review the
guidance contained in this Report.
We are now less than one month away from
the August 13, 2012
deadline for making a
contribution or trustee-to-trustee
transfer under the IRA rollover provisions contained in
the FAA Modernization and Reform Act of
2012. Please review R&I Reports 12-01 and 12-
02 if you are still interested in taking
advantage of this legislation.
As explained in the previous two R&I
Reports, it is necessary to file an amended federal
tax return (IRS Form 1040X) in order to
exclude the rollover amount from your income,
retroactively, and claim a refund of the
federal income taxes you paid on such amount.
Under the rollover legislation, you have
until April 15, 2013 to file your amended federal
tax return.
Many pilots have already made their IRA
rollover contribution or transfer and subsequently
filed an amended tax return for tax year
2007 using IRS Form 1040X.
Unfortunately, a
number of these pilots have reported to
ALPA that the IRS denied their Form 1040X as
having been submitted past the filing
deadline. The filing deadline for an
amended return
is typically three years after the due
date for the tax return of the tax year in question.
For tax year 2007, for example, the
deadline would typically be April 15, 2011.
However,
the rollover legislation clearly extends
that deadline to April 15, 2013. ALPA has reached
out directly to the IRS as well as to
our contacts on Capitol Hill to resolve this issue. We
recently received word from one pilot
that the IRS accepted his Form 1040X, and this is a
hopeful sign that the IRS has now
established a protocol for the correct handling these
amended tax returns under the new
rollover legislation. This pilot also confirmed our
understanding that the IRS pays interest
on the refund, and in his case, it amounted to an
additional 18% of his amended refund
amount.
If you have made an IRA rollover
contribution or transfer under the new legislation but
have not yet filed your Form 1040X,
please follow the guidance in R&I Report 12-02 and
include the words “AIRLINE PAYMENT –
FILING DEADLINE EXTENDED” in bright red letters
on the top of your Form 1040X.
We have confirmed a new process the IRS
has agreed to implement, as a result of our
efforts. Any pilot who would like ALPA
to intercede on his behalf to have the IRS expedite
the processing of his return, upon
filing the return, should email his full name and Social
Security Number (SSN) to ALPA at IRSDenials@alpa.org . We will forward
that to our IRS
contact who will retrieve your 1040X
from the IRS’s system and forward it to a specialist
for expedited processing. There is no
reason to wait for a denial letter to submit your
information to us. If you would like our
assistance, email your name/SSN as soon as
you file your return.
If you filed an amended return using
Form 1040X, and have already received an IRS denial
letter, there are three separate options
you may take:
a) Email your full name and SSN to ALPA at IRSDenials@alpa.org . If you elect this
option, you will receive back a
confirmation email and no further action is
required on your part. We will forward
your information to our IRS contact for
expedited processing of your previously
submitted amended return. If you have
previously provided this info to us, you
should have received back a confirmation
email and no further action is required
on your part. We have already forwarded
your information to our IRS contact for
expedited re-processing of your original
Form 1040X. We believe this option will result in the
most expeditious handling of
your amended return.
b)
Re-file your Form 1040X. We have been advised by our IRS contact that it
is not
necessary to file an appeal since the
initial denial was based on the IRS’s failure to
apply the appropriate filing
deadline. Furthermore, unlike option
(a), this option
will not result in expedited
re-processing by the IRS.
c)
File an appeal through formal channels, as prescribed in your IRS denial
letter.
You have 30 days from the date of your
IRS denial letter to file this appeal.
However, we have been advised by our IRS
contact that it is not necessary to file
an appeal since the initial denial was
based on the IRS’s failure to apply the
appropriate filing deadline. Furthermore, unlike option (a), this option
will not
result in expedited re-processing by the
IRS.
Please seek competent, professional tax
advice before deciding how to proceed.
We feel confident we have finally
resolved this very frustrating issue but the proof will be
when the refund checks start arriving in
pilot mailboxes. We would appreciate feedback
when you do receive your check as to ultimately
which option you selected (ALPA
assistance, re-file, or file appeal). We
will continue to monitor this situation closely in the
weeks and months ahead and provide
updated guidance as we receive it from the IRS.
As a reminder, the deadline for
contributing or making a trustee-to-trustee transfer
to a traditional IRA under this
legislation is August 13, 2012, and the deadline for
filing your amended tax return is April
15, 2013.
++++++++++++++++++++++++++++++++++++++++++++++++++++++++
And just who was that successful tax
refund “Bob” from the re-printed note that I flashed to the PCN ?
Answer: Bob Karantz from CO.
Greg Smith had asked about the “tax success”
letter that was signed Bob published in the ole RSP site.
Mark,
please feel free to share my address with Greg. My wife is a practicing CPA and
was the author of the letter so obviously she is whom Greg needs to speak with.
I will pass along any comm from him and depending on his needs and her workload
I'm sure she will try to be of help. Fritz, Bob Karantz twobears@mindspring.com
++++
From: John Miller
Date: 7/25/2012 3:42:25 PM
Subject:
RE: PCN "Open" Invitations
I signed up through Google but probably omitted
something to be considered "open". Currently not receiving PCN
notices. Would like to share information on recovering Federal Taxes on
Bankruptcy through IRA and Roth "trustee-to-trustee". Received letter
from IRS yesterday approving my request (1040X Amended Return) and refund to be
issued in 4-6 weeks including interest (~6% 2008, 5% 2009, 4% 2010, 3.5% 2011,
3% through 9/30 2012). Aug. 15, 2012 latest to complete action with Aug 15,
2013 latest to file 1040X. Would be willing to share "phraseology" to
prevent reject as a "barred" return.
Sincerely,
John Miller 2003 retired
Sincerely,
John Miller 2003 retired
Editor: I have asked John to forward out his successful
“phraseology” and I will forward as soon as received.
+++++++++++++++++++++++++++++++++++++++++++
From: gene
ferguson
Date: 7/25/2012 8:29:04 PM
To: Mark
Sztanyo
Cc: Gene Ferguson
Subject: Income Tax Appeals
Hi Mark,
I just got your name and e-mail address from a retired
pilot. I am in the process of amending and appealing the years 2007 and 2011
with the IRS. My 2007 843 was recently denied but my 1040X is still in appeals.
Both my 843 and 1040X for 2011 are in the ammended state. Please put me on any
E-mail list you might send out with information concerning our tax problems.
I am handling this on my own although I started will Bill
Whalen. I will continue to appeal to "Tax Court" on my own but would
rather join a "group of retired pilots" if any form up to take the
matters to Tax Court.
thanks,
Editor: Gene, I do not keep a list of
pilots that are working together for any particular issue. Rather I have
created and produce a network of over 2600 retired pilots and employees that
communicate on a myriad of issues. Should anyone in our group be a one horse show
(interested in but one issue) that is absolutely fine and made easier at the
PCN by the Blog with “Sections” that we have created. Your tax issue have had recent postings in
our blog in the “Finance section.” My best suggestion is that I will publish
your note and suggest that you subscribe and "get on board." It is
free (a favorite pilot term) and the water is fine. And you can review as much or as little as you
wish in each issue.
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