New in 2010
For 2010: Roth Conversion
You can convert your traditional IRA to a Roth in 2010, and elect to pay the tax in equal parts on your 2011 and 2012 return. There are no exclusions for Adjusted Gross Income. So that means you can convert your IRA as soon as January 2, and not pay the tax on the conversion for 27 months. This is a 2010 provision only. Conversions in all other years are includible in the actual year of conversion.
Audit Targets in 2010
In any given year, the IRS will typically target specific portions of tax returns or specific industries for audits, or both. The IRS announced that starting in November 2009 it will begin a special initiative to audit individual income tax returns with Schedule C’s that show a loss. In addition, the IRS will specifically be focusing on certain industries in these audits, including craft sales, photography, art and writing. Therefore, anyone with these types of businesses will need to be particularly diligent in their record keeping. For more specific bookkeeping suggestions or questions, contact our office.
