IRS: under direct frontal attack, but seemingly quite resilient
By Kim Magdalein
Here is an excerpt from a recent article in the The Wall Street Journal by Peggy Noonan:
"I don't know." "I don't remember." "I'm not familiar with that detail." "It's not my precise area." "I'm not familiar with that letter."
These are quotes from the Internal Revenue Service officials who testified this week before the House and Senate. That is the authentic sound of stonewalling, and from the kind of people who run Washington in the modern age—smooth, highly credentialed and unaccountable. They're surrounded by legal and employment protections, they know how to parse a careful response, they know how to blur the essential point of a question in a blizzard of unconnected factoids. They came across as people arrogant enough to target Americans for abuse and harassment and think they'd get away with it.
Read the rest of the piece here.
The IRS is under a direct frontal attack, but they seem to be quite resilient. We may not be able to get to the bottom of this, but with Obamacare coming aboard and to be enforced by the IRS, we need to warn our clients about qualified money. A great opportunity for Roth conversions ASAP.
Clients should seriously consider the amount of qualified money that can be moved each year without changing tax brackets. A systematic process can clean the taxes out before we have a tax code change which could cost them unnecessary principal loss. I have used this method with annuities and annual withdrawals of less than 10 percent for years and have clients that have more than half of their qualified money growing tax free in a Roth.