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Lewitz, Balosie, Wollack, Rayner & Giroux, LLC
Certified Public Accountants
Newsletter
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New Sales Tax Permit Penalty
Connecticut has enacted a new civil penalty for failing to obtain or renew a sales tax permit. The penalty is $250 for the first day a person transacts business without a permit and $100 for each subsequent day. A permit can be obtained by filing CT form REG-1. New legislation approved by the General Assembly prohibits the renewal of sales tax permits for taxpayers with outstanding liabilities unless they have entered into a payment agreement with DRS. This new law is effective July 1, 2013. |
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Connecticut Tax Amnesty Program
On June 1st the Connecticut House of Representatives approved a two-month tax amnesty program. The program will run from September 16, 2013 through November 15, 2013 and will give eligible taxpayers an opportunity to pay back taxes without incurring criminal and civil penalties. The amnesty applies to taxable periods ending on or before November 30, 2012. Interest will be due on the late payments, but will be reduced to one-fourth of the interest normally charged. Delinquent taxpayers are encouraged to take advantage of this program; failing to do so will subject the person to an additional 25% penalty once the program ends.
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Excise Tax on Self-Insured Health Plans
The Affordable Care Act imposes an excise tax on applicable self-insured health plans to help fund the Patient-Centered Outcomes Research Institute. Many employers will be surprised to learn that this tax applies to them and that the first payment is due by July 31st, 2013.
An "applicable self-insured health plan" is any plan for providing accident or health coverage if any portion of such coverage is provided other than through an insurance policy. In other words, if the plan allows employees to be reimbursed for some of their costs, such as medical expenses up to the policy's deductible, the plan is an applicable self-insured health plan.
The fee for the first year is $1.00 multiplied by the average number of lives covered under the policy and is reported on Part II of Form 720. More information and a description of the different methods that can be used to determine the average number of lives covered under a plan can be found in the instructions for Form 720.
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Ten Things Every Senior Citizen
Should Do
If you are a senior citizen you should be sure to have your "house in order". Here is a list of things you should take care of. Not yet a senior? Then these are good things to talk to your parents about.
- Be sure that your will is updated for current tax laws and beneficiaries and that a trusted and competent individual is named as executor.
- Consider whether any of your beneficiaries have special needs and should have special provisions made for them.
- Complete a health care directive and name an appropriate individual to make decisions if necessary.
- Be sure you understand the provisions of any long-term care insurance policies that you have and whether they are still appropriate.
- Consider moving investments held in certificate form into brokerage accounts to facilitate transfer by your executor.
- Leave written instructions for you funeral wishes.
- Make arrangements to be sure funds are available upon your death to pay for your funeral or other immediate needs.
- Be sure that all of your retirement accounts and life insurance policies have named beneficiaries and contingent beneficiaries. It generally is not appropriate to name your estate as the beneficiary of these accounts.
- Make arrangements for someone to care for your pets.
- Discuss these topics with family members and professional advisors and let them know where the documents are kept.
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A word of caution: this is a brief summary and does not include all of the details that may impact your individual situation. Please contact us if you would like more information.
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About Lewitz, Balosie, Wollack,
Rayner & Giroux, LLC
Our five partners have over 160 years of combined professional experience. We provide accounting, tax, and financial services to individuals, businesses, nonprofit organizations, estates, and trusts. Our services include tax return preparation, software consulting, and compilations, reviews, and audits of financial statements. We have been located in the shoreline community of Old Saybrook, Connecticut for over 50 years. Feel free to contact us if we can be of service. We can be reached at 860-388-4451.
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IRS Circular 230 Disclosure
To ensure compliance with requirements imposed by the Internal Revenue Service, we inform you that any tax advice contained in this communication, unless expressly stated otherwise, was not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any tax-related matters addressed herein.
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