Scott Sanders and Elliott Lavietes Participates in Daily News Tax Hotline
Managing Partner Scott Sanders, CPA, PFS, CGMA, CFP, CFS, and Tax Director Elliott Lavietes, CPA, of Sanders Thaler Viola & Katz, LLP took part in the New York Daily News' Tax Hotline, via phone and text messaging, on March 21.
Mr. Sanders, who will be inducted in May as President of the New York State Society of CPAs (NYSSCPA) Nassau Chapter, and Mr. Lavietes were on hand to offer free tax advice — along with other NYSSCPA members — to residents and small business owners within the community.
One of the questions came from Kenneth Perez of Staten Island who was forced to withdraw money from his IRA to pay for repairs to his house that was damaged by Hurricane Sandy. The IRS imposes a tax plus a 10% penalty on withdrawals before the age of 59-1/2. However, under certain hardship circumstances, the penalty is waived.
Mr. Perez asked if he would be penalized. Mr. Sanders replied: "Right now, the income is taxable and there is an additional 10% penalty. In past disasters, the penalty has been waived. The IRS has not ruled on it yet."
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