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| 3% GOVERNMENTAL CONTRACTOR WITHHOLDING REPEALED (November 2011) SUMMARY: The “3% Withholding Repeal and Job Creation Act", eliminates the 3% governmental contractor withholding and enhances credits for hiring returning veterans. |
| PTIN NO LONGER REQUIRED FOR ENROLLED RETIREMENT PLAN AGENTS (November 2011) SUMMARY: Enrolled retirement plan agents and applicants to become enrolled retirement plan agents are no longer required to have a PTIN to apply for enrollment or renew enrollment as an enrolled retirement plan agent. |
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IRS EXTENDS 2010 E-FILING DATES (October 2011) SUMMARY: The IRS reconsidered its position on extending e-file availability past Monday, October 17 to include the additional time allowed victims of a variety of natural disasters. The agency will keep its e-file system open through Monday, October 31. |
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| IRS: PAID PREPARERS TO FILE DUE DILIGENCE CHECKLIST(October 2011) SUMMARY: The IRS has issued proposed regs that would require paid tax return preparers to file a due diligence checklist, Form 8867, with any federal return claiming the Earned Income Credit (EIC). |
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| IRS PROVIDES GUIDANCE ON EMPLOYEE USE OF CELL PHONES (September 2011) SUMMARY: The IRS has provided guidance on the treatment of employer- provided cell phones as an excludible fringe benefit to the effect that in most cases, personal use of the cell phone is generally nontaxable to the employee. |
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| FORM 8939 BASIS ALLOCATION DUE NOVEMBER 15th (August 2011) SUMMARY: Form 8939, the basis allocation form required to be filed by executors opting out of the estate tax, is due Nov. 15, 2011. |
MANY 2008 IOWA INCOME TAX RETURNS WILL REQUIRE AMENDING (July 2011) SUMMARY: On July 27th Governor Brandstad signed Iowa SF 533 that contains retroactive coupling for the 2008 and 2010 tax years with the federal provision for the tuition and fees deduction, educator expense deduction and casualty losses associated with certain disasters. The retroactive nature of the coupling will require amended returns for 2008. |
| IRS DISCONTINUES HI-LOW METHOD OF TRAVEL SUBSTANTIATION SUMMARY: The Service intends to discontinue authorizing the high-low substantiation method. |
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IOWA SALES TAX HOLIDAY AUGUST 5th AND 6th (July 2011) SUMMARY: The 12th annual Iowa Sales Tax Holiday will be held Friday and Saturday, August 5 and 6, 2011. Qualifying clothing or footwear with a selling price of less than $100 will be exempt from sales and local option tax. The holiday does not include Sunday. |
MANUAL ENTRY OF ITINs TO BE REQUIRED FOR 2011 RETURNS (July 2011) SUMMARY: For TY2011, the Internal Revenue Service will require manual key entry of the Taxpayer Identification Number (TIN) as it appears on Form W-2 received from the employer for all taxpayers with Individual Taxpayer Identification Numbers (ITINs) who are reporting wages. |
| TRUCKERS GET THREE MONTH HIGHWAY USE TAX EXTENSION (July 2011) SUMMARY: The Internal Revenue Service today advised truckers and other owners of heavy highway vehicles that their next federal highway use tax return, usually due Aug. 31, will instead be due on Nov. 30, 2011. |
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FUTA COMPUTATION COMPLICATED: RATE NOW 6.0% (July 2011) SUMMARY: The FUTA tax rate computation for 2011 is shaping up to be the most difficult one in years due to the expiration of the FUTA surtax on July 1 and the likelihood that employers in many states will see a reduction in their state unemployment tax credits used to offset the FUTA tax. Beginning July 1, the 0.2% federal unemployment tax (FUTA) surtax is no longer in effect. Thus, the FUTA tax rate, before consideration of state unemployment tax credits, is now 6.0%. |
| MILEAGE RATE INCREASES TO 55.5 CENTS PER MILE (June 2011) SUMMARY: The Internal Revenue Service today announced an increase in the optional standard mileage rates for the final six months of 2011. The rate will increase to 55.5 cents a mile for all business miles driven from July 1, 2011, through Dec. 31, 2011. |
| IOWA EXTENDS TAX DEADLINES FOR DISASTER VICTIMS (June 2011) SUMMARY: Iowa Department of Revenue Director Courtney Kay-Decker has granted an extension of time for affected taxpayers to file the quarterly Iowa sales/use tax and withholding returns for the period ending 6-30-11. Those returns are normally due on July 31, but can now be filed by October 31, 2011 without penalty or interest. |
IOWA ENDS TAX FAX SYSTEM (June 2011) SUMMARY: The Iowa Department of Revenue (IDR) discontinued the Tax-Fax system in June, 2011. The Tax-Fax system was an automated method for taxpayers to have Iowa tax forms and publications faxed to them. |
| FUTA MAY REQUIRE SPLITTING POST-JUNE WAGES (June 2011) SUMMARY: The Internal Revenue Service today announced an increase in the optional standard mileage rates for the final six months of 2011. The rate will increase to 55.5 cents a mile for all business miles driven from July 1, 2011, through Dec. 31, 2011. |
| IOWA ENACTS IMMEDIATE RETROACTIVE INCOME TAX CHANGES (April 2011) SUMMARY: Changes for tax year 2010 Iowa Income Tax filing became effective April 12, 2011 with the enactment of Senate File 512. This legislation couples Iowa tax provisions with federal provisions retroactive to January 1, 2010 in the areas listed in the article. Taxpayers who are impacted by these changes and have already filed returns for tax year 2010 may want to consider filing an amended Iowa tax return. |
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| IRS HAS PROBLEMS WITH FIRST TIME HOMEBUYER CREDIT FILINGS (March 2011) SUMMARY: IRS has processing issues that are impacting some tax returns involving repayment of the First Time Homebuyer Credit (FTHB), primarily involving 2008 home purchases. |
| IRS ANNOUNCES 2nd VOLUNTARY OFFSHORE ASSET DISCLOSURE INITIATIVE (February 2011) SUMMARY: The IRS has announced a 2nd Voluntary Offshore Asset Disclosure Initiative that is less liberal than the 2008 initiative. The new initiative expires August 31, 2011. |
| TAXPAYERS WHO FILE ELECTRONCALLY MUST USE ELECTRONIC SIGNATURES (January 2011) SUMMARY: In a Fact Sheet, IRS has announced that it has eliminated paper signature documents for e-filed returns |
| ILLINOIS INCREASES INDIVIDUAL AND CORPORATE TAX RATES (January 2011) SUMMARY: Illinois Governor Pat Quinn signed legislation that substantially increases both corporate and personal income tax rates. The legislation also amends estimated tax, net loss deduction, and estate tax provisions. |
| NEW FORM 4948 AVAILABLE FOR PREPARERS NOT FILING ELECTRONICALLY (January 2011) SUMMARY: Final Form 8948 is available for preparers whose clients chose not to file electronically. |
| NEW LAW EXEMPTS TAX PREPARERS FROM FTC'S RED FLAG RULES (January 2011) SUMMARY: President Obama has signed the “Red Flag Program Clarification Act of 2010” ( P.L. 111-319 ) |
| NEW LAW SIGNIFINCANTLY CHANGES THE ENERGEY PROPERTY CREDIT (January 2011) SUMMARY: The nonbusiness energy property credit was not merely extended. The rules have actually reverted back to the 2006 and 2007 requirements triggering significant changes compared to 2010. |
| IRS PROVIDES ADDED GUIDANCE FOR NON-SIGNING PREPARERS (January 2011) SUMMARY: The IRS recently provided additional guidance on the preparer tax identification number (PTIN) registration process that addresses registration of non-signing preparers at CPA firms, law firms and other professional firms. |
| IRS DELAYS 2011 TAX FILING SEASON FOR MANY TAXPAYERS (December 2010) SUMMARY: Many taxpayers planning to file their 2010 tax returns early have been advised by IRS to cool their heels and wait until mid- to late-February, 2011. |
| IRS ISSUES 2011 PERCENTAGE WITHHOLDING TABLES (December 2010) SUMMARY: Shortly after the President signed the 2010 Tax Reform Act into law the IRS issued Notice 1036 that incudes the 2011 percentage withholding tables plus other information relating to 2011 income tax withholding changes. |
| PRESIDENT SIGNS 2010 MEDICARE & MEDICAID EXTENDER ACT (December 2010) SUMMARY: On December 15, the President signed into law H.R. 4994, the “Medicare and Medicaid Extenders Act of 2010” (Extenders Act). Sec. 208 of the Extenders Act amends Code Sec. 36B , relating to a requirement that taxpayers coordinate their post-2013 premium assistance credit with any advance credits paid to the insurer under Sec. 1412 of the Patient Protection and Affordable Health Care Act (Health Care Act, P.L. 111-148 ). |
| PRESIDENT SIGNS 2010 TAX RELIEF ACT (December 2010) SUMMARY: On December 17th the President Obama signed the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (the 2010 Tax Relief Act).
The 2010 Tax Relief Act contains a two-year extension of the Bush-era tax cuts, significant estate tax relief and a trove of other tax breaks
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| NEW ON-LINE PTIN REGISTRATION SYSTEM NOW AVAILABLE (September 2010) SUMMARY: The new on-lineIRS PTIN Registration system is now available. All tax return preparers including those who already have a PTIN will need to register or reregister. |
PRESIDENT SIGNS SMALL BUSINESS JOBS ACT(September 2010) SUMMARY: On September 27, President Obama signed into law H.R. 5297, the Small Business Lending Funding Act. The “Small Business Jobs Act of 2010” includes a number of important tax provisions for businesses large and small, and changes for individuals as well. |
PRESIDENT SIGNS FINANCIAL REFORM ACT (July 2010) SUMMARY: On July 21, 2010, President Obama signed the “Restoring American Financial Stability Act of 2010”. This landmark financial reform package contains one Code amendment broadening the list of contracts that are excepted from the definition of Code Sec. 1256 contracts and thus are excepted from mark-to-market treatment. |
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"DOC FIX" ACT SIGNED INTO LAW (June 2010) SUMMARY: On June 25, the President signed into law H.R. 3962, the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010. The Act was passed by the Senate on June 18 and by the House on June 24. This “doc fix” law, so-called because it short-circuits a scheduled drop in payments to doctors, also includes funding relief provisions for some pension plans hard hit by stock market losses, and an information sharing provision to help identify fraudulent Medicare providers. |
NEW FORM W-11 REQUIRED FOR HIRE ACT TAX BENEFITS (April 2010) SUMMARY: The IRS has released Form W-11, Hiring Incentives to Restore Employment (HIRE) Act Employee Affidavit. Newly hired, but formerly unemployed, workers must sign this form (or its equivalent) in order for their new employers to qualify for a payroll tax holiday and possibly an up-to-$1,000 credit under the HIRE Act ( P.L. 111-147 ). |
| PRESIDENT SIGNS CONTROVERSIAL HEALTH CARE BILL INTO LAW (March 2010) SUMMARY: The president signed the Patient Protection and Affordable Care Act as passed by the Senate in December of 2008. This bill and if, as expected, the companion bill already passed by the house is also passed by the Senate, the two bills together, are expected to dramatically change U.S. health system and impact most employers, virtually all taxpayers, and all segments of the health care industry. |
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PRESIDENT SIGNS JOBS BILL (THE HIRE ACT) INTO LAW (March 2010) SUMMARY: The The Hiring Incentives to Restore Employment (HIRE) Act which recently was passed by Congress was signed by the President on March 18, 2010. This Summary explains how the "HIRE Act" encourages companies to hire (and retain) unemployed workers by creating an employer “payroll tax holiday” of sorts for hiring unemployed workers in 2010 and an employer tax credit if these new hires are retained for at least one year. It also explains how the Act boosts expensing for 2010 and permits certain bond issues to elect to receive a payment in lieu of providing a tax credit to the bondholders. It also includes a summary of the Act's new anti-offshore tax abuse measures and other revenue raising provisions. |
| IRS PROVIDES A NEW WAY TO LOOK UP ECONOMIC RECOVERY PAYMENTS (March 2010) SUMMARY: The IRS has now provided taxpayers with a simplified method for determining whether they received an economic recovery payment in 2009. |
| NEW TEMPORARY EXTENSION ACT OF 2010 AFFECTS COBRA PERMIUMS (March 2010) SUMMARY:
Late, on March 2, the President signed into law H.R. 4691, the “Temporary Extension Act of 2010” which, among other provisions extends the COBRA continuation premium subsidy for one month and makes a number of other clarifying and substantive changes to it. |
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| IRS ANSWERS QUESTIONS ABOUT TAX RETURN PREPARER REGISTRATION AND TESTING (February 2010) SUMMARY: In January, the IRS announced that it intends to require individuals who are required to sign a federal tax return as paid return preparer to register with the IRS and pay a user fee. Since the announcement, the IRS has received and answered a number of questions regarding the registration and testing proposal. |
| IRS PROPOSES TO REQUIRE DISCLOSURE OF UNCERTAIN TAX POSITIONS (January 2010) SUMMARY: On Tuesday, January 26, 2010, the IRS announced a proposal that, if effective, would require many companies to disclose uncertain tax positions in their annual income tax return filings. |
| HAITI DISASTER CONTRIBUTIONS DEDUCTIBLE IN 2009 (January 2010) SUMMARY: President Obama signed into law a bill that allows donors to accelerate the income tax benefits of charitable cash contributions for the relief of victims of the earthquake in Haiti. |
| OBTAINING INFORMATION ABOUT ARRA'S $250 ERP PAYMENT (January 2010) SUMMARY: The IRS will not be providing information as to whether a taxpayer received the 2008 $250 Economic Recovery Pament. |
| IRS PLANS NEW PAID TAX PREPARER REQUIREMENTS (January 2010) SUMMARY: The IRS has issued a recommendation as to a number of
steps that it plans to implement for future filing seasons that are intended to better leverage the tax return preparer community, fostering higher compliance with
the law by taxpayers and better service to taxpayers through higher standards of
conduct by paid return preparers. |
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COBRA SUBSIDY EXTENDED (December 2009) SUMMARY: The the Department of Defense Appropriations Act of 2010 incuded a house amendment that, among other things, extended the Cobra Subsidy peiord for an additional six months. |
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DES MOINES SEMINAR MATERIALS SHIPPED (December 2009) SUMMARY: In the hope that it will help those who registered for Des Moines seminar, could not attend due to the blizzard and couldn't transfer to any of our other seminars, we're including a free self-study examination along with your Year-end Update Seminar materials. |
WORKER, HOMEOWNERSHIP & BUSINESS ASSISTANCE ACT IS NOW LAW (November 2009) SUMMARY: On November 6, 2009 President Obama signed H.R. 3548, the ''Worker, Homeownership, and Business Assistance Act of 2009'' (the Act).
For individuals, the act extends and liberalizes the first time homebuyer tax credit (FTHTC). Changes for businesses include modifications to return filing and penalties, an unemployment benefit extension, plus liberalized rules for net operating losses and toughened penalties for partnerships and S corporations. |
| CFP BOARD CHANGES ETHICS ACCREDITATION RULES (October 2009) SUMMARY: We have just been notified by the CFP Board that it no longer accredits any ethics credit request submission that does not deal exclusively with the CFP Board's Code of Ethics and Professional Standards. |
IRS HAS FORM 941 PROCESSING PROBLEMS (October 2009) SUMMARY: During the last two quarters, the IRS sent CP 207 notices to taxpayers that asked them to submit Form 941, Schedule B, Report of Tax Liability for Semiweekly Schedule Depositors, even though they had submitted the form with their paper filed return. |
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| PRESIDENT SIGNS RECOVERY ACT ON TUESDAY (February 2009) SUMMARY: This weekend Congress passed the American Recovery and Reinvestment Act of 2009 (the Recovery Act), a stimulus bill that includes tax breaks for businesses and individuals. The President is scheduled to sign the Act into law on Tuesday February 17th. |
| IRS CHANGES TAXPAY PAYMENT CENTERS IMMEDIATELY (January 2009) SUMMARY: On January 1, 2009, the Internal Revenue Service will discontinue operations at the Dallas, Texas lockbox facility. The changes affect five states for individual taxpayers and 23 states for business taxpayers. |
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