Archive for the ‘Breaking Tax News’ Category

The agreement hammered out in the Senate just before the clock struck midnight on December 31, 2012 and subsequently approved by the House on January 1 – pulled the nation back from the edge of the fiscal cliff. President Obama promptly signed the “American Taxpayer Relief Act of 2012″ into law on January 2. Following is an overview of the key tax provisions in store for individual and business clients in 2013.

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Just in time for the final deadline of tax season, the IRS has unveiled the latest incarnation of its website, IRS.gov, with features the agency said had been designed to better reflect how people typically use the site, and deliver services at a faster pace.

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Like clockwork, the Social Security Administration (SSA) announces an increase in the annual Social Security “wage base” practically every October. This year is no exception: Among other changes, the SSA says the wage base will jump from $110,100 in 2012 to $113,700 in 2013. For all the latest information, visit the SSA’s Fact Sheet website page.

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Even as Hurricane Sandy was hitting the mid-Atlantic, agencies and departments in Manhattan, Albany and Washington were issuing statements and modifying rules in anticipation of the storm. The following is a summary of key tax relief notices that may make life a little easier as individuals and businesses—and the CPAs who serve them—get back on track.
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One of the most popular tax deductions for individuals is the one allowed for donations to charitable organizations—from the local church or synagogue to the Red Cross and various other national organizations. Unfortunately, over the last several decades, this deduction has also been among the most abused. Thus, perhaps it is not surprising that Congress has responded to the problem by regularly enacting more rules around documenting donations.
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The Internal Revenue Service today issued the 2012 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

Beginning on Jan. 1, 2012, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
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NYS Employers are you prepared to comply with Section 195 of the New York Labor Law by
February 1, 2012?

To Comply, You MUST :
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New York State Passes The Marriage Equality Act

The Marriage Equality Act (Act) took effect on July 24, 2011, and provides that all marriages, whether between same-sex couples or different-sex couples, will be treated equally under the laws of New York.
The Act amends New York law to recognize all legally performed marriages between same-sex and different-sex couples, whether or not the marriage took place in New York.

The Act applies to all taxes administered by the Tax Department. As a result, any references in the
Tax Law or department documents to:

•spouse or married individual includes a person in a marriage with a same-sex spouse
•husband, wife, and spouse should be read as gender neutral to reflect both different-sex and same-sex couples
•marriage also includes a marriage between same-sex spouses

Tax Department And Consumer Protection Board Urge Taxpayers To Consider Alternatives To Costly Refund Anticipation Loans

Albany, New york February 22, 2011 – It’s tax time, and many New Yorkers will try to collect their refunds as quickly as possible. Some will consider a refund anticipation loan (RAL) or refund anticipation check (RAC) to speed up the process. However, the New York State Department of Taxation and Finance and the New York State Consumer Protection Board are urging taxpayers to consider lower-cost or free alternatives to receiving federal tax refunds.
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IRS Has $1.1 Billion for People Who Have Not Filed a 2007 Income Tax Return

WASHINGTON — Refunds totaling more than $1.1 billion may be waiting for nearly 1.1 million people who did not file a federal income tax return for 2007, the Internal Revenue Service announced today. However, to collect the money, a return for 2007 must be filed with the IRS no later than Monday, April 18, 2011.
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