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March 10, 2010 - Forms 1099-R — they arrive in your mailbox this time of year, taxing reminders of your retirement account decisions during 2009. Right there, in box one, is the total amount you withdrew from your pension, annuity, IRA, or other retirement plan.

But before you enter that figure as income on your federal tax return, it may pay to review your reasons for the withdrawal, especially in the case of IRA distributions.

For instance, if you took money from a traditional IRA in which you have basis, the taxable portion will be less than the gross distribution reported on Form 1099-R. You account for the difference on Form 8606, "Nondeductible IRAs."

Qualified charitable contributions made directly from your IRA may also reduce the taxable amount of the distributions shown on Form 1099-R. In this case, you indicate the reason for the difference on the first page of Form 1040 with the notation "QCD."

Did you roll part or all of the distribution you received into another qualified IRA? As long as you made only one transfer during the past twelve months, and did so within the statutory
60-day time period, the amount rolled over is tax-free. Notify the IRS that you qualify for this exception by entering "Rollover" on page one of Form 1040.

Other IRA distributions reported on Form 1099-R may require additional action during 2010. For example, you may want to "undo" last year's Roth conversion.

The tax rules governing retirement account withdrawals are complex. Contact our office for any assistance you need.

March 3, 2010 - Henry & Horne, LLP will be conducting a dental symposium on April 30th and May 1st at the Scottsdale Plaza Resort.

At the symposium attendees will learn how to obtain a better work/life balance while finding hidden wealth in their practices.

Presenting will be Thomas M. Cooper, JD, CLU, ChFC, the Managing Director of the Health Care Consulting Group at Henry & Horne, LLP. Tom is the former leader and co-developer of the Mercer Transitions Company and has been advising dental, medical and other professional service businesses for twenty years.

The symposium is open to all dental professionals and their spouses. For more information on the symposium, or to RSVP please visit our website at www.hhcpasymposium.com or contact Heather Mason at (480) 483-1170. Space is limited!

February 24, 2010 - Accept no substitute.

Fortunately, you can forget that slogan when events like natural disasters or bankruptcies cause your employer to neglect issuing your W-2. The IRS will accept a substitute in situations that leave you unable to obtain year-end wage statements.

• What to do. First, make an attempt to get your W-2 by contacting your employer. You can also ask the IRS to do the nudging for you.

If those remedies fail, your next step is to complete Form 4852, Substitute for Form W-2, Wage and Tax Statement.

• What you'll need. Since Form 4852 is a replacement for your W-2, you'll need the same information shown on that statement, including your employer's name, address, and
federal identification number. You can estimate your 2009 wages and withholdings, using pay stubs or another reasonable method.

• What else to do. Consider waiting until April to file your return. That way you avoid having to prepare an amended return if you do receive the actual W-2 and it differs from your estimate.

If you have to use Form 4852, mark your calendar to check next year's annual social
security estimate of your potential future benefit. You'll want to be sure the wages are included in the "earnings record" portion of the statement.

Call us if you need additional information about how to proceed when you're missing a W-2.

February 18, 2010 - Every year Arizona Business Magazine Ranks the best of Arizona’s Businesses in select categories. Henry & Horne, LLP has been lucky enough to have been ranked every year since its inception. These rankings would not be possible without the help of our clients, contact and referrals voting for us!

This year is no different. We need your help to make Henry & Horne number one. Click on the link below, put in your email address and it will automatically vote for Henry & Horne. It is quick, easy and remember every vote counts! The voting deadline is July 31, 2010. Thanks in advance for your help in making Henry & Horne number one!

www.hhcpa.com/vote