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Medlin, while the Google voice seems a workable solution to the problem of unwanted calls, aren't you spooked by the possibility that your entire life is out there for advertisers and data miners? Google is pretty famous for sharing your info (not as bad a Facebook, but bad enough). If they turn your phone messages into words, they can mine those words and suddenly everything you ever said or anyone said to you is ripe for the picking. They may sell your info only to "reputable" parties, who then sell it to other reputable parties, and it eventually can wind up on the dark web for sale to organized criminals. In recent months IRS had to shut down taxpayer access to transcripts and PINs, including IRS-issued IP PINS. Even though these sites used "out of wallet" questions to verify taxpayer identities, thieves had enough info to answer the questions and get in. Where do you think they got that info? Social media and google searches to be sure, but maybe GV? We have been warned to never answer surveys of any kind because anything we voluntarily offer is owned by the survey taker and can be sold to anyone at all. Can the same be said for our internet phone calls and messages? I'm scared.

I've gotten the fake IRS robo calls repeatedly too, got my first one on the cell phone earlier today. It's just so annoying.

I received 2 calls in rapid recession on Wednesday (they must be working MA this week). It was from a Seattle area code. Like Catherine I will be advising my clients in my tax letter. These calls have been all over the news but so many seniors are taken aback by the tone and immediacy of the calls that they still get rattled. Looks like it's up to us to be on the front line to battle this, like Batman and Robin, Wonder Woman, and the Green Lantern to protect the public.

IRC 269A clearly states that a personal service corporations (PSC) formed or availed of to avoid or evade income tax by reducing the income of, or securing the benefit of any expense, deduction, credit, exclusion, or other allowance for, any employee-owner which would not otherwise be available, then the Secretary may allocate all income, deductions, credits, exclusions, and other allowances between such personal service corporation and its employee-owners, if such allocation is necessary to prevent avoidance or evasion of Federal income tax or clearly to reflect the income of the personal service corporation or any of its employee-owners. So yes it is a violation of the tax code as I understand it to elect to be an S-Corp simply in an effort to recognize losses on a PSC that is no longer operational. You either loose those losses or you figure out a way for the PSC to make $$ to offset losses. However there is no language in IRC 1362 prohibiting a viable ongoing PSC from filing IRS Form 2553 Election by a Small Business Corporation . IRC 1362 address the election; revocation and; termination of Sub-chapter S status. In general a small business corporation may elect, in accordance with the provisions of this section, to be an S corporation if all shareholders consent to the election and the election is timely made and the entity is not listed as an ineligible corporation (bank, insurance company, 'possession corporation', or a domestic international sales corporation).

With 401ks, if you're still working and contributing to the same 401k, you can skip the RMDs until you stop working. If you have old 401ks hanging around, you have to take those RMDs. Five percent owners have to begin RMDs, although they can still contribute. Are 403b rules different? I'm sure they are, because this whole area is so #%@ complicated with different mandates for plans that are essentially the same thing. In your case, though, the client is not contributing to her old plan so must begin RMDs. She may not want to wait until April 1 following the year she turned 70 1/2. She will be required to take two distributions that year, one by April 1 and the next by Dec 31 (the RMD for that year). This might bump up her tax bracket, raise her Medicare premiums, reduce allowable deductions, etc. I agree with Pacun that she should take the distribution and put the max into a Roth.

Summer isn't ready to wane around here! 90s at the coolest; humidity meets or exceeds the temperatures.