President Looks to 2011 to Begin Debate on Tax Reform

  • January 4, 2011

After touting legislative victories achieved during the lame-duck session, particularly the massive tax cut package - the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 (2010 Tax Relief Act) - President Obama is looking ahead to 2011. The president signaled that he expects Republicans and Democrats in the 112th Congress to debate reforming the U.S. Tax Code.

Late Passage of Tax Legislation Delays Filing Season Start for Itemizers and Others, IRS Cautions

  • January 4, 2011

Because of late passage of the massive tax cut and extenders package by Congress at the end of December 2010, taxpayers who itemize deductions and certain others will need to wait until mid- to late February 2011 to file their individual tax returns, the IRS has cautioned. The IRS must reprogram its computer systems for the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 (2010 Tax Relief Act), In addition, the IRS reported that Form 1040, Schedule A will need to be updated as well.

2010 Tax Relief Act Extends Lucrative Tax Breaks for Families Through 2012

  • January 4, 2011

Congress not only extended the current, lower individual income tax rates through 2012 in the recently enacted Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 (2010 Tax Relief Act); it also extended a number of beneficial tax breaks for families and individuals. Through 2012, the law extended significant tax incentives for education, children, and energy-saving home improvements.

Businesses Get Boost with 100% Bonus Depreciation and Code Sec. 179 Expensing

  • January 4, 2011

Businesses will benefit from a number of extended and enhanced tax breaks under the recently enacted Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 (2010 Tax Relief Act). The 2010 Tax Relief Act boosts 50-percent bonus depreciation to 100 percent through 2011 and provides increased Code Sec. 179 expensing in 2012.

Guidelines for 2011 Payroll Tax Cut

  • December 22, 2010

With the recently enacted payroll tax cut for employees beginning in January 2011, the IRS has issued some guidelines for this 2.0% reduction in social security tax for your employees. It provides some relief for you, as an employer, so that your payroll software provider or services provider has time to make the necessary programming changes for this new law

Tax Provisions in the 2010 Tax Relief Act

  • December 17, 2010

The recently enacted “Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010” is a sweeping tax package that includes, among many other items, an extension of the Bush-era tax cuts for two years, estate tax relief, a two-year “patch” of the alternative minimum tax (AMT), a two-percentage-point cut in employee-paid payroll taxes and in self-employment tax for 2011, new incentives to invest in machinery and equipment, and a host of retroactively resuscitated and extended tax breaks for individuals and businesses.

More Updates about Health Care Reform

  • December 3, 2010

IRS has issued the second wave of detailed guidance on the small employer health insurance credit created by the Patient Protection and Affordable Care Act and proposed regs phase in next year's e-file mandate. Read more about recent health care reform updates.

IRS Eases Interim Rules for Grandfathered Health Plans

  • December 1, 2010

Reversing course, the IRS has amended interim final rules the agency issued earlier this year to allow certain changes in coverage without loss of "grandfathered status" under the Patient Protection and Affordable Care Act (PPACA). All group health plans may switch insurance companies and preserve their grandfathered status, as long as the structure of the coverage does not violate one of the other rules for maintaining grandfathered plan status.

IRS Releases Audit Technique Guide on Deductible Repairs vs. Capitalized Expenses

  • December 1, 2010

The IRS has released an Audit Techniques Guide (ATG) that addresses whether an expense should be considered a currently deductible repair or is required to be capitalized under current law. This latest ATG is important for taxpayers in two respects: first, it provides insight into how examiners will review a taxpayer's change in accounting method (CAM) request dealing with the recharacterization of previously capitalized expenses as currently deductible.