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“Taxing” is a word synonymous with “onerous” and “wearing.” Bond Beebe, Accountants & Advisors, have created a user friendly blog called “It’s Taxing” to inform and educate our clients and business associates on timely topics related to tax, estates, accounting and finance. We hope our blog answers your questions and alleviates the heavy burden and anxiety related to understanding complicated tax laws and related matters.
IRS CIRCULAR 230 DISCLOSURE: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in this document is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code, or (ii) promoting, marketing, or recommending to another party any transaction or matter that is contained in this document.
District of Columbia: Reports have shown that E-filing your return typically results in a quicker refund. Now DC is allowing individual taxpayers the opportunity to track his or her refund online. Follow the link to check your refund status: Refund Status Inquiry
Maryland: The Comptroller of Maryland has announced a ‘Tax Free’ Weekend. Well tax-free for those individuals and entities purchasing qualified energy efficient equipment. Qualified energy efficient equipment includes equipment with the ‘energy star’ product seal (refrigerators, heat pumps, furnaces, air conditioners, etc.). Purchases of ‘energy star’ products between February 19, 2011 through February 21, 2011 will NOT be subject to the 6% sales tax.
Virginia: Similar to Maryland, Virginia will have a qualified energy efficient equipment sales tax holiday between October 7, 2011 and October 10, 2011. Conversely, purchases of this nature will only be exempt from sales tax if the equipment is purchased for noncommercial home or personal use.
In addition, Virginia is following suit with the federal government. Virginia has again passed legislation for Fixed Date Conformity through 2010. Fixed Date Conformity simply means in general, the Commonwealth will comply with the current federal tax code.
The Virginia Department of Taxation clarified on Friday that calendar-year corporate and passthrough entity tax returns are due Friday, April 15, 2011. There was some confusion as the Federal and most states filing date was moved to Monday, April 18 this year, due to a holiday in Washington DC (Emancipation Day). Virginia does not recognize this holiday as a legal holiday and therefore will not move it's due date.
On Tuesday, February 8, 2011, the IRS announced another voluntary disclosure program giving taxpayers a second chance to report offshore assets. The first program began in March of 2009 and allowed taxpayers six months to voluntarily disclose all offshore assets going back six years, offering the chance to avoid criminal prosecution and limiting penalties. The penalties were 20% of the amount of foreign assets in the year with the highest value, plus all taxes, interest and a 20% accuracy or 25% delinquency penalty.
Last Wednesday, the Senate voted 81-17 in favor of an amendment to roll back the expanded 1099 reporting provisions passed as part of the healthcare bill. The expanded provisions are currently scheduled to take effect after 2011 and would add payments of goods to the list of items that must be reported on Form 1099. The healthcare bill also expands reporting to include payments to corporations (who were previously exempt from the reporting requirements). Included as a revenue-raiser in the healthcare bill, these new 1099 provisions have been widely criticized due to the burden on small businesses. After the President signaled his willingness to accept repeal of the expanded provisions in his 2011 State of the Union address, it was widely expected that the new 1099 reporting law would be changed. The Senate has taken that first step toward repeal. Unfortunately the Senate vote to repeal has no effect on the new 1099 reporting provisions that apply to rental expenses incurred in 2011 and beyond.
Still there, but not as good as it once was.
The non-business energy property credit available to homeowners has been extended for 1 year, but it is not as generous as it was for 2009-10. The credit is now allowed for 10% of eligible expenditures for qualified energy efficiency improvements to your principal residence in the U.S.
In recent years significant tax legislation has passed in order to stimulate our slow
economy. While this translates into additional tax deductions and credits for many
taxpayers, keeping track of these benefits and the years they apply to can be
challenging. Knowing if and when you can take a deduction will save you future headaches
with the IRS. It can also be a great tool for financial planning. We have compiled a
list of the most common tax provisions that are no longer available after 2009 and 2010,
and those that will end at the end of this year. Keep in mind that this is only a
summary, and you should contact a tax professional if you are unsure if they are
available to you.
What you need to know about the new 1099 Reporting
For 2010, all persons engaged in a trade or business who make certain payments in the course of that trade or business of $600 or more in any tax year to another person must report that information to that person and to the IRS. A taxpayer whose rental real estate activity was not considered a trade or business wasn't subject to this reporting requirement, (that distinction has changed for 2011).
Tax Filing Delayed
Yes, tax season is officially underway. Although, some of you early 1040 filers will have to wait. Due to the recent Tax Relief Act passed in mid-December, the IRS will need time to update the forms and its own software to adjust for the most recent tax changes. The IRS has released a list of forms and schedules that will delay processing by the IRS due to the recent legislation.