Archive for 'Accounting Advice for Businesses'

IRS Releases Draft Form 8960, But Is It Clear?

IRS Releases Draft Form 8960, But Is It Clear?

The Internal Revenue Service has just-released 2013 draft Form 8960. As so succinctly stated by Ted Batson, executive vice president at Renaissance Administration LLC., to Bloomberg News on Aug. 7th, he summarized 8960 as the form which:

… beneficiaries of charitable remainder trusts and others will use 8960 to compute the new 3.8 percent surtax on net investment income. This form accounts for the fact that not all items reported on a beneficiary’s Schedule K-1 meet the ...

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2013 “Tax Extenders” are Nearly Out of Time

2013 “Tax Extenders” are Nearly Out of Time

What are Tax Extenders?

The tax code contains temporary business tax provisions  to incentivize and help businesses from being over-taxed. Each time these provisions expire at the end of a tax year, legislation is introduced by Congress to extend the provisions. Proposals submitted on behalf of Congressional members to extend the expiration of given tax provisions have been coined “tax extenders.”

A Look Forward: Business Tax Provisions Ending This Year

Many business tax extenders are set to expire this year. Although Congress had ...

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Partners Be Warned: The IRS May Not View You Equally

Partners Be Warned: The IRS May Not View You Equally

What’s Your IRS Payment Responsibility for Joint Income?

People who are in receipt of money—whether by gift or for business purposes—often erroneously assume that if it’s split among other recipients, then the tax liability is on the final figure not the original dollar amount. Not so in some cases, says the IRS. You could be taxed on the entire amount if you were originally in receipt of the whole dollar payment and you cannot prove a partnership or “community” property relationship. ...

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ESR Provisions Delayed for Employers Until 2015

ESR Provisions Delayed for Employers Until 2015

On July 2nd, the U.S. Department of the Treasury announced a one year delay in the enactment of the Employer Shared Responsibility (ESR) provisions of the Affordable Care Act until January 2015.

 The ESR provisions, also known in the press as the “Employer Mandate,” state that the responsibility of applicable large employers—that is, employers who have 50 or more full-time employees and full-time equivalent employees—must provide qualified and affordable health insurance to their full-time employees and dependents or face a financial penalty. 

The U.S. ...

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Revised Version of Form I-9

Revised Version of Form I-9

On March 8, 2013, the U.S. Citizenship and Immigration Services (USCIS) released a revised version of Form I-9, Employment Eligibility Verification. It is required that employers use Form I-9 to verify the identity and employment authorization eligibility of their employees.

Employers should begin using the new version of Form I-9 (with a revision date of “03/08/13 N”) immediately.

The USCIS will allow a 60-day grace period, so after May 7, 2013, the only acceptable version will be the newly released form.

The revised Form I-9 includes ...

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Any Port in a Storm: Behind the New IRS ‘Safe Harbor’ Method

Any Port in a Storm: Behind the New IRS ‘Safe Harbor’ Method

The IRS has announced a new optional safe harbor method, effective for tax years beginning on or after January 1, 2013, for individuals to determine the amount of their deductible home-office expenses. Hailed by many as a long-overdue simplification, taxpayers can now determine their deduction by simply multiplying a prescribed rate by the square footage of the home office.

Over three million taxpayers in recent years have claimed home-office deductions, which normally require a 43-line form.  Now, a significantly simplified form is ...

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Review Your Options for Comfortable Retirement

Review Your Options for Comfortable Retirement

Have you thought about your retirement options? Have you reviewed all of your options? Do you know what your pension and health will be? Following is a basic review of some of the pertinent questions you should be asking and some relevant solutions for a comfortable retirement plan..

Social Security

  • Do you qualify for Social Security benefits? If you have been in the work force, you probably have received that letter from the IRS telling how much you are eligible for if ...
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Cloud Computing: Autonomy or Mutiny

Cloud Computing: Autonomy or Mutiny

Cloud computing is now not only becoming a standard but increasingly very popular as a mode of storing data. Here is how it works. Instead of tying all of your data to an in office system, cloud computing services are delivered through a Web browser remotely. This way of storing data has many perks. Here is the up side if you are on the fence. There is never a need to install computer software and you never have ...

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The 2012 Taxpayer Relief Act Extension

The 2012 Taxpayer Relief Act Extension

The American Taxpayer Relief Act of 2012 (2012 Taxpayer Relief Act) provides a one-year extension of the exclusion from income for the forgiveness of debt on a principal residence. The exclusion is applicable to discharges of qualified principal residence indebtedness which occurred on or after January 1, 2007, and before January 1, 2014. During this exclusion period, taxpayers who are entangled in the current subprime mortgage crisis do not have to pay taxes for debt forgiveness on their troubled home ...

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The New Tax Act

The New Tax Act

The Senate and House have passed a new federal tax law known as the American Taxpayer Relief Act of 2012 (“New Tax Act”).

But now with the swearing in of new Congress members, it is likely that they will be tackling the federal deficit during 2013. In light of this there will certainly be additional tax law changes in the new year.

Some of the more important provisions of this New Tax Act are listed below.

1. Income Tax Rates

The New Tax Act ...

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