Extension Made Available to Employers to File Work Opportunity Tax Credit Paperwork 03-04-2015

Employers have been provided extra time to file a form required to claim the Work Opportunity Tax Credit for eligible employees. Thanks to the IRS, employers now have until April 30, 2015 to file the required form, Form 8850, to claim this valuable tax credit for qualifying workers that were hired during 2014. This article contains details concerning the IRS relief and outlines the steps an employer must take to take advantage of this valuable opportunity. Continue reading

A Victory for Small Businesses: The IRS Simplifies Repair Regulations 03-04-2015

GREAT NEWS! A major burden on small business was lifted by the IRS. The recently published final repair regulations presented a tax filing nightmare for many small businesses. However, the IRS recently made it easier for small businesses to take advantage of the final repair regulations. Here's some background on what the regulations address and how the IRS has provided relief from some of the red tape for qualifying small businesses. Continue reading

IRS Announces 2014 Standard Mileage Rates 12-06-2013

The Internal Revenue Service has announce the Standard Mileage Rates for 2014. Beginning January 1, 2014, the mileage rates for business use of an automobile are:

  • 56 cents per mile for business miles driven
  • 23.5 cents per mile driven for medical or moving purposes
  • 14 cents per mile driven in service of charitable organizations

For more information, please visit the IRS site by clicking here.

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Affordable Care Act Provisions Delayed 07-02-2013

The Obama Administration announced on July 2, 2013, that implementation of certain provisions found in the Affordable Care Act (“ACA”) will be delayed until January 1, 2015.  Specifically, the delay affects the shared responsibility payment provisions of the employer mandate. Prior to this announcement, employers with more than 50 full-time employees would have been exposed to a penalty for not offering health insurance to their full-time employees beginning January 1, 2014.  In plain English, the penalties (shared responsibility payment) for failing to provide health insurance coverage have been delayed by one year.

The Administration explained that this delay was to allow employers, insurers, and other affected parties time to comply with the reporting requirements of the law.  In its published release, the U.S. Department of Treasury went on to encourage employers to voluntarily implement information reporting in 2014 even though it will not be enforced.  To view the full text of the publication on the U.S. Department of the Treasury’s website, please click here.

At this time, there are many unanswered questions.  However, even if there is a delay in the enforcement of the penalties until 2015, testing periods for plan years beginning January 1, 2015, will start on October 15, 2013, if employers want a 12 month measurement period.  The Administration is delaying the penalty provisions because employers did not have enough time in 2013 to implement these testing periods, among other things.  It is critical that employers use this delay to their advantage and begin testing employee hours at the earliest date of October 15, 2013, depending on plan year and management decisions.

In addition, based on the information presently available, we have seen nothing to suggest that other reporting requirements, scheduled for 2014 implementation, are being delayed.  One such requirement is the disclosure to employees concerning their coverage options within the state run exchanges.  The state health insurance exchanges are required to be operational by October 1, 2013, regardless of whether the exchange is operated by the state or federal government.  One of the requirements that must be met is the distribution of information by employers to employees, regardless of the number of employees, concerning the new health insurance exchanges.  As an employer, this information must be given to all of your employees no later than October 1, 2013, the same day the health insurance exchanges are set to open.   There is an additional requirement if your business address is in a county in which 10% or more of the population is only literate in a non-English language.  If you meet this requirement, you must provide the material in their native language.   Templates for this information are available below along with a link to the Department of Labor’s website.

We will continue to update you on new developments as they occur.

Templates Regarding Required Information to be Disclosed to Employees Regarding State Run Health Exchanges:

Notice to Employees of Coverage Options

Department of Labor Website

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Tax Refund – What to do? 04-25-2013

If you are looking for ways to spend your tax refund, check out the Wall Street Journal’s article “Don’t Just Spend It – Smart Moves for Your Tax Refund.”  This article discusses various ways to spend (or save) your tax refund from paying down debt, increasing your educational background, or saving for retirement.  What move will you make?


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Jason Westbrook Nominated to AICPA Joint Trial Board 02-26-2013

Jason Westbrook, CPA, CVA has been nominated to serve on the American Institute of Certified Pubic Accountant’s Joint Trial Board. The Joint Trial Board consists of 36 members elected for a three year term by the Nominations Committee and ratified by the AICPA Council. Jason’s formal election to the Joint Trial Board is scheduled at the annual member’s meeting in October, 2013.

The Joint Trial Board provides for uniform enforcement of professional standards by adjudicating disciplinary charges against state society and AICPA members. Its decisions affect both AICPA and state society memberships.

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2013 Automobile Depreciation Limits Announced 02-25-2013

On Monday, February 25th, the Internal Revenue Service announced the 2013 inflation-adjusted depreciation limits and lease income inclusion amounts for passenger automobiles. These limits are published in Revenue Procedure 2013-21.

For passenger automobiles placed in service in 2013 where the 50% bonus depreciation applies, the depreciation limit is $11,160. Trucks and vans first year is $11,360.

For passenger automobiles for which the bonus depreciation does not apply, the limit is $3,160. The limit for trucks and vans in this category is $3,360. Both of these amounts represent the first year depreciation limit.

Additional guidance on the limits can be found in the aforementioned Revenue Procedure or in the recent Journal of Accountancy article.

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CCH Offers 2012 Tax Year-In-Review Special Report 01-10-2013

CCH has issued a Special Report highlighting the 2012 Tax Year-In-Review.  The special report issued on January 10, 2013 highlights the following occurrences:

  • American Taxpayer Relief Act Passes Congress
  • Supreme Court Upholds Affordable Care Act
  • IRS Issues Guidance On Many Health Care Tax Measures
  • Retirement Incentives Take On New Importance
  • IRS Expands Voluntary Compliance Settlement Program
  • Treasury Releases FATCA Model Agreements
  • IRS Focuses On Domestic And International Compliance
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American Taxpayer Relief Act of 2012 01-04-2013

The American Taxpayer Relief Act of 2012 was passed by Congress on January 1, 2013. CCH has developed an explanation and analysis of the American Taxpayer Relief Act of 2012 in a CCH Tax Briefing Special Report. This document highlights the new tax rates, Bush-Era tax rates extended, the AMT patch, extension of various credits and business tax extenders, and a number of extenders retroactive to the beginning of 2012.

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Proposed regs. issued by IRS on 3.8% net investment income tax 12-04-2012

The IRS has released proposed regulations for the 3.8% investment income tax imposed under Code Section 1411. The tax is equal to 3.8% of the lesser of an individual’s net investment income for the tax year or the excess of the individual’s modified adjusted gross income for the tax year over $250,000 for married filing joint, $125,000 for married filing separately, and $200,000 for singles. To view the full article on the Journal of Accountancy’s website, click here.

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