Our office will close at noon on June 19, but we will continue to monitor messages.  Please feel free to reach out to us by calling or emailing our office directly or contacting us through our website.

We are available to assist you.

Thank you and stay safe.

TO OUR MOST VALUED CLIENTS:

Beginning on Monday, June 15, 2020, our receptionist will be available in the office from 9:00 a.m. until  Noon and from 12:30 until 4:00 p.m.

During this time, if you reach our voicemail, the receptionist has stepped away from her desk momentarily.  Please either leave a message or try back in a few minutes.

At all other hours, you may leave a message on our main number (303.832.1900).  The mailbox is checked frequently throughout the day and messages are delivered to the appropriate party.  You may also use the dial-by-name feature to leave a personal message.

In addition, you may send a message via the contact submission form on our website - www.thedenverlawyers.com.  Please be sure to indicate the individual with whom you wish to communciate.  Those messages are monitored at all times.

Thank you and we hope to be able to assist you with whatever your needs may be.

IRS Extends 2019 Tax Filing AND Payment Deadline                          

In an effort to alleviate financial pressure from the mass shutdowns related to mitigating the spread of Covid-19, the IRS announced on March 18th that taxpayers would receive an automatic extension of time to pay any tax liability due on their 2019 individual income tax returns. On March 20th, the filing deadline was also extended thereby alleviating taxpayer’s obligation to submit an extension by April 15th. The new filing and payment deadline for individual income tax returns is now July 15, 2020.

During this three-month automatic extension, no late payment penalties or interest will accrue. Late filing penalties will also be waived.

Taxpayers do not need to take any action to receive this extension. It will be granted automatically to all eligible taxpayers. This does not mean that you should delay in compiling your information. Tax professionals will undoubtedly be overwhelmed in the coming months—especially as individuals who are unable to pay existing tax debts seek relief in the form of offers-in-compromise.

Taxpayers who expect a refund should file as soon as practicable. Since penalties only apply if tax is due, timely filing is not as critical for taxpayers receiving refunds. Delays in the payment of refunds could increase as time goes on, so filing timely is always encouraged.

If you cannot timely file your return by the new July 15th deadline, you may request a filing extension. You must submit Form 4868 https://www.irs.gov/pub/irs-pdf/f4868.pdf via mail or ask your tax preparer to submit the form electronically. You can also access many of the IRS’ free online filing partners to file your return or an extension request online https://www.irs.gov/filing/free-file-everyone-can-file-an-extension-for-free.

To Our Valued Clients:

Our office will be open on a very limited basis.  There will be employees in the office at varying times and we will make every attempt to accommodate your needs, however, in an effort to keep everyone safe, we encourage you to change any in-person appointments to telephone conferences. Of course, document signing requires in-person meetings and we will continue to meet with those who must come in

Please email us via our websit or leave messages on our voicemail system and we will return calls as promptly as we can.

If you or an immediate family member are experiencing symptoms of illness, please contact us and we will gladly reschedule any upcoming appointment. We appreciate everyone’s understanding and cooperation.

When we are in the office, we are implementing additional procedures within our office to insure your safety, and ours, including social distancing and more frequent cleaning of common areas, as well as asking our employees and guests to follow all safety guidelines as proposed by the CDC for personal protection.

Thank you for your trust in us and please stay safe !

New Distribution and Taxation Rules for Inherited Retirement Accounts

by Harley K. Look, Jr.

Under the SECURE Act of 2019, effective for all retirement accounts inherited after December 31, 2019, the IRA stretch has been repealed, with few very limited exceptions, to raise an estimated $15.7 billion in tax revenue over the next decade.  A spouse named as the beneficiary of a retirement account still receives the tax benefits of an IRA spousal rollover, but for nonspousal beneficiaries, the IRA stretch is gone, so they are no longer allowed to take required minimum distributions over their life expectancies to minimize their income taxes or to allow their inherited Roth IRAs to continue to grow tax-free.  Rather, the general rule is that for any beneficiary other than a spouse, all retirement accounts, including any 401(k), traditional IRA and Roth IRA, must be distributed within ten years after the account holder passes away.

For taxable accounts, distribution will trigger income taxes, and if distributed all at once after ten years, will result in a large tax bill.  Many trusts have IRA stretch language to distribute only the required minimum distributions to help protect beneficiaries from commingling or spending their inherited retirement accounts.  There are no more annual required minimum distributions for most beneficiaries, so a beneficiary could receive nothing for ten years, then a lump sum in the tenth year.

Beyond naming a spouse, the very limited exceptions of eligible designated beneficiaries who may still take required minimum distributions are chronically ill or disabled beneficiaries, those who are no more than ten years younger than you, and your minor children, but not other  beneficiaries such as grandchildren, even if they are minors.  When any of these beneficiaries are no longer eligible designated beneficiaries, as for example when a minor child reaches the age of 18, the remaining balance of the retirement account must be distributed by age 28.

Although a spouse is still eligible for the benefit of a spousal rollover, the spouse can later change the secondary beneficiary to a new spouse or other beneficiaries.  Similarly, although most other beneficiaries, including trusts for their benefit, must pay taxes within ten years, they can then commingle or spend the remaining net after-tax retirement funds.  Please keep in mind that all benefits payable to a named beneficiary pass outside of any trust or will directly to the named beneficiary.

You may therefore want to consider naming your trust as the primary or secondary beneficiary to control the net funds after required minimum distributions to a spouse and the net funds after income taxes for other beneficiaries. It will be imperative for you to review and potentially amend your trust to help protect your retirement accounts.

Katz, Look & Onorato has been named as a finalist in the 17th Annual Mergers & Acquisitions Awards for Industrials Deal of the Year Category for Partner Brian Onorato's work on behalf of a client of the firm.

The firm is proud to congratulate Brian for his work on behalf of the firm's client.

Katz, Look & Onorato, P.C., is happy to congratulate Partner, Klaralee R.Charlton, who was recently appointed to the Board of Trustees for the Denver Bar Association.  Klaralee is a very active member of both the Denver Bar Association and the Colorado Bar Association.   Click Here to View the Article from "The Docket" - August/September, 2017

 

Katz Look & Onorato, Firm Newsletter, August 2017

 Click Here for Link

Katz, Look & Onorato, P.C.

June 2017 Newsletter Topics:   

Are Calls from the "IRS" Real ? by Klaralee R. Charlton

Are Your Kids Covered if You're Away ?  (What You Need to Know About a Colorado Power of Attorney For Temporary Guardianship of a Minor Child) by Tanja W. Leung)

Click link to view Newsletter: Link

 


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