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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.
On April 14, 2011 President Obama signed into law, legislation to repeal the new Form 1099
information reporting rules. Under the now repealed rules, businesses would have been
required to issue a Form 1099 to corporations for goods and services that reach $600 or more
per year to each vendor. And, landlords would have been required to issue a Form 1099 to a
vendor for services (such as, plumbing, lawn maintenance, rental management, accounting,
etc.) when total payments reached $600 or more in a year. These new reporting requirements
have now eliminated, so you don’t need to worry about them any longer.
In the near future the IRS will likely be performing more examinations of individual income tax returns reporting rental real estate activity. On March 9, 2011, the Treasury Inspector General for Tax Administration (TIGTA) published the results of an internal audit to identify ways to improve enforcement activity in the area of rental real estate income. The audit was undertaken in response to an August 2008 Government Accountability Office (GAO) report that found, “at least 53 percent of individual taxpayers with rental real estate activity for Tax Year 2001 misreported their rental real estate activity, resulting in an estimated $12.4 billion of net misreported income.”
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.