FAQ: What Tax Legislation is Congress Expected to Pass This Year?

  • June 2, 2010

At the start of 2010, Congress had a full tax agenda. As summer approaches, many tax bills remain unfinished, most notably an estate tax bill. Other important tax legislation is also on Congress's agenda for action before year-end. Including: Estate tax, Individual tax rates, Capital gains and dividends, Child tax credit and more.

Planning for the 3.8 percent Medicare Tax on Investment Income

  • June 2, 2010

The health care reform package (the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010) imposes a new 3.8 percent Medicare contribution tax on the investment income of higher-income individuals. Although the tax does not take effect until 2013, it is not too soon to examine methods to lessen the impact of the tax.

IRS Ramps Up Guidance On New Small Employer Health Insurance Tax Credit

  • May 3, 2010

The IRS is moving quickly to alert employers about a new tax credit for health insurance premiums. The recently enacted health care reform package (the Patient Protection and Affordable Care Act of 2010 and the Health Care and Education Reconciliation Act of 2010) created the small employer health insurance tax credit. The temporary credit is targeted to small employers that offer or will offer health insurance coverage to their employees. The credit, like so many federal tax incentives, has certain qualifications.

IRS Issues Forms, Instructions For HIRE Act Employer Tax Incentives

  • May 3, 2010

Wasting little time in helping important business hiring, the IRS has released forms and instructions for the employer tax breaks in the Hiring Incentives to Restore Employment (HIRE) Act. The IRS unveiled new Form W-11, Employee Affidavit, which covered employees can use to certify that they meet the criteria of the HIRE Act. It also revised Form 941, Employer's Quarterly Federal Tax Return, and Forms W-2, Wage and Tax Statement, and W-3, Transmittal of Wage and Tax Statements, to reflect the HIRE Act.

Congress Completes Overhaul Of Health Care Law and Makes Many Tax Changes

  • April 21, 2010

More information to follow up on our first article regrading Health Care Reform. Passage of the Health Care and Education Reconciliation Act of 2010 (H.R. 4872) Reconciliation Act) by Congress, followed by its signing by President Obama on March 30, 2010, completes a massive overhaul of the nation’s health insurance and health delivery systems.

Employers Wait On Certification Form For New HIRE Act Tax

  • April 2, 2010

The recently enacted Hiring Incentives to Restore Employment (HIRE) Act rewards employers who hire qualified unemployed workers with payroll tax forgiveness and a worker retention tax credit. However, the newly hired worker must certify that he or she meets specific unemployment criteria; otherwise, the employer will be ineligible for payroll tax forgiveness and the tax credit. Congress instructed the IRS to design a certification form and the agency has announced that the form will be available soon.

IRS Unveils Safe Harbor For Certain Failed Like-Kind Exchanges

  • April 2, 2010

The IRS has unveiled a much-anticipated safe harbor for participants in multiple-party like-kind exchanges under Code Sec. 1031 that have gone bad because of the default of qualified intermediaries (QIs) during the current economic downturn. The safe harbor for reporting gain or loss is available to taxpayers that initiated deferred like-kind exchanges but failed to complete the exchange due to a QI's default on its obligation to timely acquire and transfer replacement property when its assets are suddenly frozen in bankruptcy or receiverships.

HIRE Act Provides Payroll Tax Forgiveness and Worker Retention Credit

  • April 1, 2010

On March 18, 2010, President Obama signed the Hiring Incentives to Restore Employment (HIRE) Act. The $18 billion HIRE Act is expected to be the first of several "jobs" bills out of Congress in 2010. The new law encourages companies to hire unemployed workers and also retain existing workers by providing two key tax incentives: payroll tax relief and a worker retention tax credit. Employers can take a tax credit of up to $1,000 for the year if they hire an unemployed worker and retain the new worker for at least one year.

Health Care Reform 101: New Responsibilities and Taxes

  • April 1, 2010

Health care reform is now law and many employers are asking how does it affect my business and my employees? The first thing to keep in mind is that reform is gradual. The health care reforms and tax provisions in the new health care reform package play out over time, with some taking effect this year or next year but others not until 2014 and beyond. However, the health care package imposes significant new responsibilities and taxes on employers and individuals so it is not too early to start preparing.