 |
|||
|
|||
 |
|
|
|
|||||||||||||||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||||||||
|
||||
Here's a quick update on recent IRS activities that
might interest you.
*2011 REFUNDS ARE DELAYED. Taxpayers are waiting
longer for their tax refunds this year largely due to
IRS efforts to catch fraudulent filings. According to
a recent IRS report, the Service has identified more
than 2.1 million fraudulent tax returns, many of which
involve identity theft. IRS computers have had
additional screening steps added which is the major
factor in the refund delays.
* PENALTY RELIEF OFFERED. Aware of the difficult financial situation many taxpayers find themselves in today, the IRS has expanded its "Fresh Start" initiative offering penalty relief to certain unemployed taxpayers. Normally, a failure-to-pay penalty of one-half of one percent per month, up to a maximum of 25%, is charged on overdue taxes. Under the relief program, eligible taxpayers can get a six-month extension to pay their 2011 taxes before this penalty kicks in. The relief is available to workers who have been
unemployed at least 30 consecutive days during 2011
or 2012 and to self-employed individuals who
experienced a 25% or larger drop in business income
in 2011 due to the economy. Income limits apply, and
taxes due cannot exceed $50,000.
The Fresh Start program also changes the upper limit of taxes owed for requesting a streamlined installment agreement from $25,000 to $50,000 and increases the maximum term from five to six years. For details on the relief program, contact my office. |
||||
|
||||
|
||
The U.S. Supreme Court will soon issue its ruling on the
two health care laws passed back in 2010. States are
challenging the constitutionality of the law's requirement
that individuals must obtain minimum health insurance
coverage. The law could be upheld or overturned, or the
court could strike down select provisions.
Although the health care insurance mandate has received
the most attention, other provisions in the law could
have a major impact on your taxes. If these provisions
are allowed to stand, they will take effect in 2013.
Here's a quick summary.
* The amount that you can contribute to your flexible
spending account will be limited to $2,500.
* If you're under age 65, your medical expenses will
have to exceed 10% (rather than 7.5%) of your adjusted
gross income to be deductible.
* A Medicare surtax of .9% will be assessed on earned
income in excess of $250,000 for joint filers and
$200,000 for single filers.
* A new 3.8% Medicare tax will apply to unearned income
such as interest, dividends, capital gains, annuities,
royalties, and rents. This new tax will kick in when
your adjusted gross income exceeds $250,000 if you're
married filing a joint return or $200,000 if you're
single.
Take these scheduled changes into account in your midyear
tax review. Contact my office for additional information
and planning assistance.
|
||
|
|
||
If you give away money or property during your lifetime,
you may be subject to the federal gift tax. Here are
some gift tax facts the IRS wants you to know.
* Though the general rule is that gifts are taxable, there are many exceptions to the rule. Gifts that are not taxable include those that don't exceed the annual exclusion amount for a given year ($13,000 for 2012), gifts to your spouse, charitable gifts, gifts to political organizations, and payments for the tuition or medical expenses of someone that you make directly to the medical or educational institution. * You and your spouse can make annual gifts of double
the exclusion amount even if just one of you owns the
property being gifted. Such a split gift requires the
filing of a gift tax return even if half of the split
gift is less than the annual exclusion.
* Generally, the person who receives your gift is not taxed on the value of the gift. If any tax is due, you the donor are responsible for it. * You cannot take a tax deduction for gifts you make, except for gifts to charity. To be deductible, charitable gifts must be made to IRS-approved organizations; gifts to individuals are not tax-deductible. For more information or planning assistance on gift giving, contact my office. |
||
|
|
||
Tax Tip of the Week: Do you own rental real estate? Being an active participant, versus hiring a management company, can give you a significant tax savings. Read the article on my web site for more info.
Business Tip of the Month: Are you thinking of grooming a family member to be the successor in your business? There's a lot to think about if you're planning to retire and still reap any benefits of the years of hard work building the business. The article is filled with things to think about if "keeping it in the family" is your main concern. Read it on my web site. Financial Tip of the Month: Keep a clear head and don't let your emotions get involved with your investment decisions. A trusted advisor can provide an objective set of eyes to steer you away from poor investment decision. Check out this article for more info.
Fraud Alert: Don't be a victim to a car dealer scam. Know what you are looking for and do your homework before going to buy the car. Read this article for some of the schemes to watch out for. |
||
|
|
|
|
https://www.facebook.com/pages/Linda-L-Heineman-CPA/266124360085715?ref=tn_tnmn
Sincerely,
Linda Heineman
Linda L. Heineman, CPA
email:
linda@llhcpa.com
phone:
626-577-0979
web:
http://llhcpa.com
|
|
