The Blau Company, Ltd. Newsletter                                                                                                        October 2010
Greetings!
 
If your Individual Tax Return has not been completed, please be aware that extensions are effective through October 15th.  We ask that you contact our office as soon as possible to schedule your tax appointment.  The last day for tax appointments will be October 8th.  Therefore if we do not have your information by this date we cannot guarantee that your returns will be filed timely.   
 
Alan will be available Monday - Friday, 11am to 4pm and Aaron will be taking appointments on Tuesday - Thursday's, 11am to 4pm.  However, we do make special accommodations outside of these hours if necessary.  Please contact Kirstin to schedule your tax appointment at (480) 946-7732 or kirstin@blauco.com. 
 
For those clients that are new to QuickBooks® or would just like a refresher course, Aaron and Denise will be teaching two QuickBooks® classes this month.  The first class will be on the basics of QuickBooks® and the second, will be an intermediate course, which will focus on more detailed information to customize QuickBooks® to your needs.  Below is a link to register online, each class is $50 and this month will be held at KTAR Radio, located at 7740 N. 16th , Suite 200, Phoenix, AZ 85020.
 
October 31st is the deadline for 3rd quarter payroll.  We sent our quarterly sheets out last week, and would appreciate you returning them to us as soon as possible.
 
Also, it is that time again for year end reviews.  Some questions to think about:  Did your income change in the past year?  Have you gained or lost a dependent?  Did you buy a house this past year?  If you answered yes to any of these questions, please call to schedule an appointment at (480) 946-7732.  These changes can change your tax significantly!
 
Lastly, below are the links to the Arizona State tax credits along with how much you are able to donate.  
                                                 Single /                   Married
Tax Credit List                      Head of Household      Filing Joint
Working Poor Tax Credit                 $200                      $400
 (Form 321)  Click Here! 
 
Public/Charter School Tax Credit     $200                      $400
(Form 322) Click Here!
 
Private School Tuition Organization  $500                    $1000
Tax Credit (Form 323) Click Here! 
 
Arizona Military Family Relief Fund  $200                      $400
Click Here!                                                                                            
Total you can donate:                    $1100                    $2200
Sincerely,

 

Kirstin Smith - Client Coordinator

Important Dates for October & November
Oct.  11      Columbus Day
Oct.  14      Quickbooks - Basic (SCORE Phoenix)
Oct.  15      INDIVIDUAL TAX RETURNS DUE
Oct.  16      Boss's Day
Oct.  21      Quickbooks - Intermediate (SCORE Phoenix)
Oct.  31      Halloween
Nov.   7      Daylight-Saving Time Ends
Nov.  11      Veterans Day
Nov.  25      Thanksgiving
2011 Tax Changes
Although the 2010 tax law has not been settled (expect another bill after the November 2nd election), 2011 is rapidly approaching. This document is courtesy of the American Institute of Certified Public Accountants.
 
Payroll News - Payroll Coupons (Form 8109) Discontinued
Effective January 1, 2011 clients that make federal tax deposit by paper coupon will no longer be able to continue. Federal tax deposits will need to be made online at www.eftps.gov. If you have not already registered please do so as soon as possible.
You may register at www.eftps.gov or by calling EFTPS Customer Service at 1-800-555-4477.
 
If you have any questions or would like our assistance in registering, please contact Monica Wood (480) 946-7732 or monica@blauco.com.
Address Changes
You are required to keep a current address on record with the Internal Revenue Service.  The IRS keeps a record of your address from your most recent income tax return.  If your address has changed, it is important to fill out and submit Form 8822 to update your address in order to receive essential notifications.  Failure to keep a current address is not a defense in case of an audit notice. 
 
Patient Protection and Affordable Care Act - Implementation Timeline
The Patient Protection and Affordable Care Act (PPACA) contains some of the most dramatic healthcare reform in the history of the United States.  Many provisions have income tax effects which will be phased in over the next few years.  Here are a list of provisions enacted in this tax year, and will be enacted in the coming years.   
 
2010
  • Small business tax credit: A temporary small business tax credit is available for some firms who provide qualified health coverage. However, the credit puts small business owners through a series of complicated tests to determine the actual amount of the credit. (1) Very few small firms will receive the full credit (only firms with 10 employees or less). For firms with 11-25 employees, the credit is reduced per employee. Firms with more than 25 employees get NO credit. (2) Only firms who pay their workers an average of $25,000 or less are eligible for the full credit. The credit is reduced as the average wage goes up, stopping when it reaches $50,000. (3) Only firms covering 50% or more of insurance costs will be eligible. (4) The credit is only available for a maximum of six years. There are additional provisions for start-up firms beginning business after the enactment of this law.
  • Age 26: Children may stay on their parents' policies until age 26.
  • Tanning salon tax: A 10% excise tax on indoor tanning services begins July 1.
  • Economic substance doctrine: The bill alters long-standing judicial doctrine in ways that could reduce tax-planning options and increase litigation.
 
2011
  • W-2 reporting: Employers will be required to report employees' health benefits on W-2s.  This is informational only - the amount does not change taxable income.
  • Brand-name drug tax: Manufacturers and importers of brand-name drugs will pay a tax of $2.5 billion in 2011, $3.0 billion per year for 2012 through 2016, $3.5 billion for 2017, $4.2 billion for 2018, and $2.8 billion for 2019 and thereafter.
  • HSA & FSA limits: Consumers are prohibited from using HSA and FSA funds to purchase non-prescribed items, including over-the-counter medication (except insulin).
  • HSA penalty: The penalty for using HSAs for non-qualified purchases increases to 20%.
  • Federally subsidized long-term care: Employers may voluntarily participate in the CLASS long-term care program. Participating firms' employees will be automatically enrolled and subject to payroll deductions unless they choose to opt out. This program will almost certainly cost the federal government far more than what the payroll deductions will cover. So this entitlement is yet another unfunded liability to add to federal deficits for decades to come.
  • Cafeteria plan safe harbor rules added: Employers will have to meet minimum contribution requirements to receive protection from nondiscrimination requirements under cafeteria plans.
  
2012
  • 1099 reporting: Businesses will have to send Form 1099s for every business-to-business transaction of $600 or more - a tremendous new paperwork burden for small business.

1204 East Baseline Road, Suite 104           Tempe, Arizona 85283           Tel (480) 946-7732            Fax (480) 345-0033