Estimated Tax: Getting it Right

  • April 1, 2011

Estimated tax is used to pay tax on income that is not subject to withholding or if not enough tax is being withheld from a person's salary, pension or other income. Income not subject to withholding can include dividends, capital gains, prizes, awards, interest, self-employment income, and alimony, among other income items. Generally, individuals who do not pay at least 90 percent of their tax through withholding must estimate their income tax liability and make equal quarterly payments of the "required annual payment" liability during the year.

FAQ: What Are My Chances of Being Audited?

  • April 1, 2011

Often, timing is everything or so the adage goes. From medicine to sports and cooking, timing can make all the difference in the outcome. What about with taxes? What are your chances of being audited? Does timing play a factor in raising or decreasing your risk of being audited by the IRS? For example, does the time when you file your income tax return affect the IRS's decision to audit you?

Health Care Law’s Uncertain Future Complicates Planning for Businesses

  • March 1, 2011

Many businesses are uncertain as to whether they should start preparing for health care reform in light of numerous court challenges. Since the start of 2011, several federal district courts have either upheld or struck down the Patient Protection and Affordable Care Act. More courts are expected to issue decisions in coming months. Health care reform may ultimately be decided by the U.S. Supreme Court. In the meantime, businesses are confronted with mixed decisions.

Repeal of 1099 Business Reporting Gains Momentum in Congress

  • March 1, 2011

Before recessing for its Presidents’ Day holiday, the Senate voted to repeal the expanded business Form 1099 information reporting requirements under the Patient Protection and Affordable Care Act (PPACA). The Senate vote came after the House Ways and Means Committee approved a similar repeal bill.

The Small Employer Health Insurance Premium Credit

  • March 1, 2011

Under the Patient Protection and Affordable Care Act (PPACA) enacted in March 2010, small employers may be eligible to claim a tax credit of 35 percent of qualified health insurance premium costs paid by a taxable employer (25 percent for tax-exempt employers). The credit is designed to encourage small employers to offer health-insurance to their employees.

President’s FY 2012 Proposals: Higher Taxes on Wealthy, Limited Tax Breaks for Businesses

  • March 1, 2011

Every federal budget proposal is just that: a proposal, or a list of recommendations from the White House to Congress. Ultimately, it is for Congress to decide whether to fund a particular government program and at what level. The same is true for tax cuts and tax increases. The final budget for FY 2012 will be a compromise. Nonetheless, President Obama's FY 2012 budget is a helpful tool to predict in what direction federal tax policy may move.

National Taxpayer Advocate Says Tax Reform Cannot be Delayed

  • February 1, 2011

National Taxpayer Advocate Nina Olson has told Congress that the time for comprehensive tax reform is now. Olson delivered her annual report to Congress and also testified before the House Ways and Means Committee in January. Olson used both occasions to urge Congress to simplify the Tax Code.

FAQ: Who is Eligible for the Small Business Stock Exclusion?

  • February 1, 2011

Included among the many important individual and business incentives extended and enhanced by the massive tax bill passed in late December is a 100-percent exclusion of gain from the sale of qualified small business stock. Under the Tax Relief, Unemployment Reauthorization and Job Creation Act of 2010 (2010 Tax Relief Act) individuals and other noncorporate taxpayers should not overlook the benefit of investing in qualified small business stock considering the ability for qualifying taxpayers to exclude 100-percent of gain from the sale or exchange of the stock.

Tax Law Changes for 2011 Impact Individuals and Businesses

  • February 1, 2011

Legislation enacted during the past few years, including the Small Business Jobs Act of 2010 and the more recently enacted Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, contains a number of important tax law changes that affect 2011. Key changes for 2011 affect both individuals and businesses. Certain tax breaks you benefited from in 2010, or before, may have changed in amount, timing, or may no longer be available in 2011. However, new tax incentives may be valuable. This article highlights some of the significant tax changes for 2011.