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Tax Strategy: New Medicare Taxes

IRS issues final and proposed regs

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In late November 2013, the Internal Revenue Service issued final regulations on the 3.8 percent Medicare contribution tax on net investment income and the additional 0.9 percent Medicare tax on earned income. The IRS had issued proposed reliance regulations in late 2012. The IRS also issued new proposed reliance regulations in certain areas where significant changes were being made to the 2012 proposed regulations on net investment income.

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