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Want to talk intelligently about Trump and Clinton’s Tax Plans? Here’s help:

June 23rd, 2016 by Lapekas Law Staff

It’s officially summer and the election season is officially hot. Hilary is officially the Democratic nominee and Trump is still only “presumptive.” But unless Republican delegates conduct a successful coup d’etat (isn’t anything possible this year?) he will soon be an official nominee as well.

For those who take sides primarily on economic—rather than social—issues, understanding the candidates’ tax plans is critical. And lest you add even more hot air to the debate, to understand a tax plan you must understand the numbers. Read the rest of this entry »

Considering a Tax-Free Rollover? Take Note of the Tax Court’s Additional Requirement…

September 24th, 2014 by Lapekas Law Staff

Yesterday the U.S. Tax Court added an additional requirement for a distribution from an individual retirement plan (and subsequent contribution to an eligible retirement plan) to qualify as a tax-free rollover. In  Bohner v. Commissioner, 143 T.C. 11 (Sept. 23, 2014) the Tax Court essentially held that an “eligible retirement plan” may determine whether an individual’s IRA rollover is tax-free by simply refusing to “accept” tax-free rollovers—regardless of whether the form of the transaction otherwise qualifies as a tax-free rollover. If you read no farther, take note: before you attempt to conduct a tax-free rollover from one retirement account to another, not only must you be sure it qualifies under IRC § 408(d)(3)(A), but you must also be certain the retirement account to which you are transferring the funds accepts rollovers. “Accepts” means that, not only must the IRA accept the deposit, but it must also accept the tax treatment of a subsequent distribution of that deposit. Read the rest of this entry »

Lapekas Law on WSVN Channel 7

April 7th, 2014 by Lapekas Law Staff

Lapekas Law was featured on WSVN Channel 7’s “Business Monday” report last week. See the video here: http://www.wsvn.com/story/25121860/last-minute-tax-help

From WSVN.com:

The tax deadline is approaching fast but now is not the time to make common mistakes. In tonight’s Money Monday, Lynn Martinez has some last minute tax tidbits to remember.

WSVN — With just two weeks left to file your taxes, tax experts are busy answering questions.

Karen Lapekas: “It’s not too late to file.”

The former senior attorney for the IRS says if you are going to hire someone to prepare your taxes, be careful about who you select. Read the rest of this entry »

Want to complete tax-free rollovers from multiple IRAs this year? 2014 is your last chance!

March 26th, 2014 by Lapekas Law Staff

Pursuant to Section 408(d)(3)(A)(i), generally, the  Internal Revenue Code allows for only one non-taxable IRS rollover every 365 days[1]. Up until just last week the IRS interpreted this provision to mean that one rollover per year per IRA was permitted. The Tax Court disagreed in Bobrow v. Commissioner. 

Pursuant to the Bobrow opinion, the IRS announced that it will follow the Tax Court’s interpretation. Accordingly, both the IRS and the Tax Court agree that if you make a tax-free rollover from one IRA you will not qualify for another tax-free rollover from any IRA for 365 days. 

Fortunately, the IRS indicated that it will wait until January 1, 2015 to apply the Tax Court’s interpretation of Section 408(d)(3)(B). So plan accordingly. What’s allowable this year will not be permitted the next.


[1] Note that the Section 408(d)(3)(B) provides for one tax-free rollover during a 1-year period. Thus, if an individual makes a nontaxable rollover on December 31 of year 1, he may not make other nontaxable rollover until December 31 of year 2.

The IRS and the “Other” Trust Account Lawyers Can’t Afford to Ignore

March 5th, 2014 by Lapekas Law Staff

The following was published in the March 2014 Dade County Bar Bulletin

 “State Bars have frequently found that a lawyer’s failure to remit employment taxes

constitutes a violation of professional rules of ethics.”  Karen Lapekas, JD, LLM

A lawyer is only as good as his word, and his license to practice law is only as good as his trust accounting. Month after month the last pages of the Florida Bar News are full of stories of lawyers being suspended or disbarred from practicing law for failing to account for or diverting client trust funds. The stories are consistent reminders of the dire importance of holding inviolate a client’s funds. Not so frequent, however, are the reminders of the trust account many lawyers must maintain for someone who is not their client: the IRS. Read the rest of this entry »