Category Archives: Tax legislation

Tax Deductions Set to Expire in 2013

Even though many tax breaks were extended or made permanent in 2012, there are a number of tax deductions set to expire 12/31/2013. Here is a list of many of provisions that expire at the end of 2013: Educator’s expense … Continue reading

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Posted in Tax legislation, Tax Planning | 2 Comments

Prepared for the New Surtax?

As part of Obama Care, we have a new tax beginning in 2013. The official name of this tax is the “Unearned Income Medicare Contribution Tax,” and even though the name implies it is a contribution, don’t get the idea … Continue reading

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IRS Announces Simplified Option for Claiming Home Office Deduction Starting for 2013 Tax Year

The IRS just released the following update about deducting the home office deduction. This will allow eligible home-based businesses to a simplified deduction to deduct up to $1,500; overall this is estimated to saves taxpayers 1.6 million hours per year … Continue reading

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Congress passes bill to avert Fiscal Cliff

Late on January 1st, 2013 the Senate and House passed H.R.8, the “American Taxpayer Relief Act” (the Act). The Act will prevent many of the tax hikes that were scheduled to go into effect today and retain many favorable tax … Continue reading

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Fiscal Cliff Calculator

Interested in seeing how various possibilities of next year’s tax rates will affect your pocketbook? The Tax Policy Institute developed this calculator as a tool to help you understand how current tax policy affects real families and what would happen … Continue reading

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Posted in Personal Taxes, Tax legislation | 1 Comment

1099-K Business Return Reconciliation Eliminated

The Housing and Economic Recovery Act of 2008 required third-party payment entities, such as credit card companies, to begin filing informational returns with the IRS reporting merchant card transactions, such as credit and debit card payments. The purpose was to … Continue reading

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Posted in Small Business, Tax legislation, Tax Preparation | Leave a comment

Recently Enacted Tax Breaks for Small Businesses

Keeping track of tax changes these days is quite a task. Congress is constantly tweaking the tax laws in an effort to stimulate the economy and deal with the budget deficit. The following is a compilation of recent changes to … Continue reading

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How a Change in 1099 Reporting Will Cause Headaches for Business Owners and Tax Preparers

As part of new legislation passed during 2011, Congress has mandated new reporting for payments made by credit card processors and banks.  This new reporting requirement is sneaking up on the general public and will cause major headaches for business … Continue reading

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IRS Announces Increase to Standard Mileage Rate for 2011

The IRS announced today an increase in the standard mileage rate for 2011 due to the increased price of fuel. The revised standard mileage rates are 55.5 cents per mile for business use of an automobile and 23.5 cents for … Continue reading

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Key Business Changes in the Small Business Jobs Act

The recently enacted 2010 Small Business Jobs Act includes a wide-ranging assortment of tax breaks and incentives for businesses. Here’s a brief overview of the tax changes in the Small Business Jobs Act. Enhanced small business expensing (Section 179 expensing). … Continue reading

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IRS Phasing Out 8109 Coupons for Tax Payments

The IRS has issued proposed regulations that would eliminate paper coupons for deposits of employment taxes, corporate income and estimated taxes, and many other taxes (REG-153340-09).  The paper 8109 coupon payment system will be shut down at the end of … Continue reading

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Posted in Payroll, Tax legislation, Uncategorized | Tagged , , | 1 Comment

Illinois Tax Amnesty to Begin October 1

On Monday, August 16th, Governor Quinn approved the bill to establish a tax amnesty program for all taxpayers for taxes due for any taxable period ending after June 30, 2002 and prior to July 1, 2009.  The amnesty period will run … Continue reading

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Illinois Tax Amnesty Measure Goes to Governor

The Illinois General Assembly has passed a measure to implement an amnesty on taxes administered by the Department of Revenue and has sent the measure to Gov. Pat Quinn. The amnesty period would run from October 1, 2010, through November … Continue reading

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Reasonable Compensation is Becoming a Hot Issue

Corporate officers will sometimes attempt to disguise what should be payment for services as distributions of cash, dividends, and loans as a means of avoiding payroll taxes on the income.  Because they are pass-through entities, Sub Chapter S corporations are … Continue reading

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S Corporation Owners May Pay Higher Self Employment Taxes

The chairmen of the House and Senate tax-writing committees today released a summary of “H.R. 4213,” also called “The American Jobs and Closing Tax Loopholes Act of 2010.” It is considered an extenders bill because it extends some favorable tax provisions due to expire this year. However there is one item tucked away in this bill is something that could affect owners of small (3 or fewer employees) S corporations engaged in a professional service business. Continue reading

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Posted in Personal Taxes, Tax legislation, Uncategorized | Tagged , , | 2 Comments