Q: I have yet to contribute to my IRA. When is the last day I can contribute funds to my IRA for the 2011 year?
A: Generally, funds contributed to an IRA must be contributed before the individual tax filing date for that particular year. For 2011 tax year, April 16, 2012 is the deadline to file and make IRA contributions for 2011.
Q: I will end up owing taxes for the 2011 tax year. What can I do in order to reconcile the situation with the IRS?
A: There are a few avenues that can be taken. First, you can pay the bill in full. If the liability is too large you may file an installment agreement with the IRS to pay the debt over time.
Q: What will the estate exemption be for 2012?
A: It is indexed for inflation and should generally be 5,120,000.
By: Basi & Basi at the Center for Financial, Legal and Tax Planning for Transworld M&A Advisors