tag:blogger.com,1999:blog-13468509270882701192024-03-13T03:14:45.389-07:00Ember AccountingDionnehttp://www.blogger.com/profile/12394855712257519904noreply@blogger.comBlogger13125tag:blogger.com,1999:blog-1346850927088270119.post-14332061903677137282011-10-10T09:04:00.000-07:002011-10-10T09:04:01.042-07:00Safeguard Tax Records from Natural DisasterThe 2011 hurricane season is on us, and Ember Accounting encourages individuals and businesses to safeguard themselves against natural disasters by taking a few simple steps.<br />
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<b>Create a Backup Set of Records Electronically</b>Taxpayers should keep a set of backup records in a safe place. The backup should be stored away from the original set.<br />
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Keeping a backup set of records –– including, for example, bank statements, tax returns, insurance policies, etc. –– is easier now that many financial institutions provide statements and documents electronically, and much financial information is available on the Internet. Even if the original records are provided only on paper, they can be scanned into an electronic format. With documents in electronic form, taxpayers can download them to a backup storage device, like an external hard drive, or burn them to a CD or DVD.<br />
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<strong>Document Valuables</strong><br />
Another step a taxpayer can take to prepare for disaster is to photograph or videotape the contents of his or her home, especially items of higher value. The IRS has a disaster loss workbook, Publication 584, which can help taxpayers compile a room-by-room list of belongings.<br />
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A photographic record can help an individual prove the market value of items for insurance and casualty loss claims. Photos should be stored with a friend or family member who lives outside the area.<br />
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<strong>Update Emergency Plans</strong><br />
Emergency plans should be reviewed annually. Personal and business situations change over time as do preparedness needs. When employers hire new employees or when a company or organization changes functions, plans should be updated accordingly and employees should be informed of the changes.<br />
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<strong>Check on Fiduciary Bonds</strong><br />
Employers who use payroll service providers should ask the provider if it has a fiduciary bond in place. The bond could protect the employer in the event of default by the payroll service provider.<br />
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<strong>IRS Help Available</strong><br />
If disaster strikes, an affected taxpayer can call 1-866-562-5227 to speak with an IRS specialist trained to handle disaster-related issues. Back copies of previously-filed tax returns and all attachments, including Forms W-2, can be requested by filing Form 4506, Request for Copy of Tax Return.<br />
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Alternatively, transcripts showing most line items on these returns can be ordered on-line, by calling 1-800-908-9946 or by using Form 4506T-EZ, Short Form Request for Individual Tax Return Transcript or Form 4506-T, Request for Transcript of Tax Return.Dionnehttp://www.blogger.com/profile/12394855712257519904noreply@blogger.com1tag:blogger.com,1999:blog-1346850927088270119.post-88930576134512456602011-09-30T13:51:00.000-07:002011-09-30T13:52:52.132-07:00New IRS regulations for Tax PreparersNew IRS regulations require that all paid tax return preparers register with the IRS and obtain a PTIN identification number. Renewals for the 2012 are expected to start in October 2011. In addition, preparers will need to pass a competency test and background check, and take continuing education courses. These new regulations are designed to protect the consumer from using fraudulant tax preparation services, and minimize untrained and incompetent tax preparers. <br />
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All tax preparers at Ember Accounting have always registered with the IRS and are required to take continuing education to keep current with tax law. We are excited for the protections the IRS is putting in place. When you are ready to complete your personal or business taxes, you can have confidence in Ember Accounting.Dionnehttp://www.blogger.com/profile/12394855712257519904noreply@blogger.com0tag:blogger.com,1999:blog-1346850927088270119.post-76800105765991591282011-08-29T05:50:00.000-07:002011-09-01T14:12:50.587-07:00The New SBA Woman-Owned Small Business Program Explained<strong><span style="font-size: large;">Leveling the Federal Contracting Playing Field </span></strong><br />
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Congress has set a goal to help woman-owned small businesses (WOSBs) gain their share of the federal contracting market. That is to say, a minimum of 5% of federal contracts should go to WOSBs. However, WOSBs only received 4% of the $400+ billion contracts awarded annually well shy of the 5% statutory goal.<br />
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Some of the industries included in the list are 'Interior Design Services' (541410), 'Environmental Consulting Services' (541620), and 'Business Support Services' (561499). This article can help you understand this program, or call <a href="http://www.ember-accounting.com/">Ember Accounting</a> (425-373-6210 or <a href="mailto:Info@Ember-Accounting.com">Info@Ember-Accounting.com</a>) to help you determine if you are eligible and get certified with the program.<br />
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In an effort to address this shortfall and create a more level contracting playing field for women-owned small businesses, in late 2010 the U.S. Small Business Administration (SBA) announced the final rule that would implement the WOSB program. Formally known as the <strong>Woman-Owned Small Business Federal Contract Program</strong>, the goals of the program were outlined by SBA Administrator, Karen Mills, in the agency’s <a href="http://www.sba.gov/about-sba-services/7367/5524" jquery1314376921595="118">press release</a>:<br />
<blockquote>“<em>Women-owned businesses are one of the fastest growing sectors of the economy…That’s why providing them with all the tools necessary to compete for and win federal contracts is so important. Federal contracts can provide women-owned small businesses with the oxygen they need to take their business to the next level</em>.”</blockquote>While the WOSB Program was formally launched by the SBA in February 2011, it wasn’t until April 2011 that the federal procurement officials were able to set-aside contracts under the program.<br />
So what is the WOSB Program and how can you take advantage of it? Here’s what you need to know and the steps you need to take to get your business certified to participate!<br />
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<strong>What is the WOSB Program?</strong><br />
The WOSB Program is a win-win for WOSBs and EDWOSBs (Economically Disadvantaged Women-Owned Small Businesses) and the federal government. WOSBs now have an opportunity to compete for and win contracts specifically set aside for WOSBs.<br />
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There are over <a href="http://www.sba.gov/sites/default/files/files/gc_wosb_naics_grids.pdf" jquery1314376921595="121">300 industries</a> (PDF) (in the contracting world these are known as <a href="http://www.sba.gov/content/identifying-industry-codes" jquery1314376921595="122">NAICS codes</a>) where WOSBs and EDWOSBs have been deemed “underrepresented” or “substantially underrepresented”. Contracting officers can do a WOSB or EDWOSB set-aside contracts in these industries if:<br />
<ul><li><span style="font-size: 14px;">There is reasonable expectation that two or more WOSBs/EDWOSBs will submit offers.</span></li>
<li><span style="font-size: 14px;">The anticipated award price of the contract does not exceed $6.5 million in the case of manufacturing contracts and $4 million in the case of all other contracts.</span></li>
<li><span style="font-size: 14px;">In the estimation of the contracting officer, the contract can be awarded at a fair and reasonable price</span>.</li>
</ul>Interested bidders can look on the <a class="ext" href="http://www.fbo.gov/" jquery1314376921595="123">Federal Business Opportunities</a><span class="ext"></span> web site to find federal government solicitations that may be set aside for WOSB or EDWOSBs<br />
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<strong>Are you Eligible for WOSB/EDWOSB Set-Asides?</strong><br />
To help determine your eligibility for the WOSB program you’ll need to be ask yourself a few eligibility questions:<br />
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1. Are you a small business as defined by SBA standards for your industry? – <br />
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2. Are you a woman-owned small business (WOSB)?<br />
3. Does your business function within one of the over 300 industries (known as NAICS codes) for the WOSB program?<br />
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4. Are you an economically disadvantaged woman-owned small business (EDWOSB)?<br />
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There will also be two informational seminars hosted by Ember Accounting to help you understand the program and decide how to best proceed.<br />
Call Ember Accounting (425-373-6210 or Info@Ember-Accounting.com) to help you determine if you are eligible and sign up for our informative seminar.Dionnehttp://www.blogger.com/profile/12394855712257519904noreply@blogger.com0tag:blogger.com,1999:blog-1346850927088270119.post-39360305181840603812011-08-08T18:49:00.000-07:002011-08-29T05:10:08.990-07:00Avoid Criminal Charges with the IRS - August 31st Deadline Approaches<i><b><span style="color: red;">UPDATE: Hurricane Irene pushes IRS to extend deadline to Sept. 9th</span></b></i><br />
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IRS Reminds Taxpayers that the Aug. 31 Deadline Is Fast Approaching for the Second Special Voluntary Disclosure Initiative of Offshore Accounts<br />
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WASHINGTON — U.S. taxpayers hiding income in undisclosed offshore accounts are running out of time to take advantage of a soon-to-expire opportunity to come forward and get their taxes current with the Internal Revenue Service.<br />
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The IRS today reminded taxpayers that the 2011 Offshore Voluntary Disclosure Initiative (OVDI) will expire on Aug. 31, 2011. Taxpayers who come forward voluntarily get a better deal than those who wait for the IRS to find their undisclosed accounts and income. New foreign account reporting requirements are being phased in over the next few years, making it ever tougher to hide income offshore. As importantly, the IRS continues its focus on banks and bankers worldwide that assist U.S. taxpayers with hiding assets overseas.<br />
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“The time has come to get back into compliance with the U.S. tax system, because the risks of hiding money offshore keeps going up,” said IRS Commissioner Doug Shulman. “Our goal is to get people back into the system. The second voluntary initiative gives people a fair way to resolve their tax problems.”<br />
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The 2011 OVDI was announced on Feb. 8, 2011, and follows the 2009 Offshore Disclosure Program (OVDP). The 2011 initiative offers clear benefits to encourage taxpayers to come forward rather than risk detection by the IRS. Taxpayers hiding assets offshore who do not come forward will face far higher penalties along with potential criminal charges.<br />
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For the 2011 initiative, there is a new penalty framework that requires individuals to pay a penalty of 25 percent of the amount in the foreign bank accounts in the year with the highest aggregate account balance covering the 2003 to 2010 time period. Some taxpayers will be eligible for 5 or 12.5 percent penalties in certain narrow circumstances.<br />
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Participants also must pay back-taxes and interest for up to eight years as well as paying accuracy-related and/or delinquency penalties. All original and amended tax returns must be filed by the deadline.<br />
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The IRS has made available the 2011 OVDI information in eight foreign languages for those taxpayers with undisclosed offshore accounts.Dionnehttp://www.blogger.com/profile/12394855712257519904noreply@blogger.com0tag:blogger.com,1999:blog-1346850927088270119.post-32868580687739243572011-08-05T08:35:00.000-07:002011-08-05T08:35:23.484-07:00Can I deduct state sales tax ?<strong><span style="font-size: large;">Can I deduct state sales tax on my federal income tax return?</span></strong><br />
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If you itemize deductions on Schedule A of IRS Form 1040, you are generally able to deduct state and local taxes including income tax, real property tax and personal property tax. For 2011, if it works to your benefit, you can elect to deduct state and local general sales tax in lieu of state and local income tax. One thing to keep in mind: if your total itemized deductions don’t exceed your standard deduction amount (for 2011, as an example, a married couple filing a joint federal income tax return would typically be able to claim a standard deduction of at least $11,600), you generally won’t get any additional tax benefit from deductions you claim on Schedule A.<br />
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When claiming a deduction on Schedule A for state and local sales tax, you have two options. You can deduct the amount that you actually paid in sales tax, as evidenced by receipts that you have accumulated showing amounts paid. Alternatively, you can use tables published by the IRS that are based on average consumption in each state, and factor in modified gross income (AGI) and number of exemptions you take. Even if you use the optional tables you’re still generally able to deduct the sales tax on certain specified items, like cars, boats or an airplane.<br />
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One caution here: special rules apply to married couples who file separate federal income tax returns. If both you and your spouse elect to deduct state and local sales tax in lieu of income tax, and your spouse elects to use the optional state sales tax tables, you’ll have to use the tables as well.<br />
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Things can get a little more complicated if you lived in more than one state during the year or if the sales tax rate for the state in which you live changed during the year. Currently the ability to deduct state and local sales tax in lieu of income tax expires at the end of 2011. And if you’re subject to the alternative minimum tax (AMT), the AMT rules may limit the deductions available to you, including the deduction for state and local taxes.<br />
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For additional information, call our office (425-373-6210) and talk to our tax professional, or see IRS <em>Publication 600 State and Local General Sales Tax</em>, and the instructions for IRS Form 1040: Schedule A.Dionnehttp://www.blogger.com/profile/12394855712257519904noreply@blogger.com0tag:blogger.com,1999:blog-1346850927088270119.post-37345827599952696852011-07-20T12:48:00.000-07:002011-07-20T12:48:00.536-07:00Beware of e-Mails Claiming to be from the IRSWe have received notification from the IRS that bogus email scams are resurfacing, including one involving payments allegedly rejected by the Electronic Federal Tax Payment System. The email has a link that may download malicious software. <br />
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<strong>All unsolicited e-mail claiming to be from either the IRS or any other IRS-related components should be reported to</strong> <a href="mailto:phishing@irs.gov">phishing@irs.gov</a><strong>.</strong><br />
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For more information about how to protect your personal information and what to do if you receive a suspicious IRS-related communication is available on IRS.gov at this <a href="http://www.irs.gov/privacy/article/0,,id=179820,00.html"><strong>LINK</strong></a>Dionnehttp://www.blogger.com/profile/12394855712257519904noreply@blogger.com0tag:blogger.com,1999:blog-1346850927088270119.post-65821985326876991592011-07-11T13:00:00.000-07:002011-07-11T13:02:45.579-07:002011 standard mileage rates increase for Business OwnersThe Internal Revenue Service announced an increase in the optional standard mileage rates for the final six months of 2011. Taxpayers may use the optional standard rates to calculate the deductible costs of operating an automobile for business and other purposes.<br />
In recognition of recent gasoline price increases, the IRS made this special adjustment for the final months of 2011. The IRS normally updates the mileage rates once a year in the fall for the next calendar year.<br />
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"This year's increased gas prices are having a major impact on individual Americans. The IRS is adjusting the standard mileage rates to better reflect the recent increase in gas prices," said IRS Commissioner Doug Shulman. "We are taking this step so the reimbursement rate will be fair to taxpayers."<br />
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The rate will increase to 55.5 cents a mile for all business miles driven from July 1, 2011, through Dec. 31, 2011. This is an increase of 4.5 cents from the 51 cent rate in effect for the first six months of 2011, as set forth in Revenue Procedure 2010-51.<br />
While gasoline is a significant factor in the mileage figure, other items enter into the calculation of mileage rates, such as depreciation and insurance and other fixed and variable costs.<br />
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The optional business standard mileage rate is used to compute the deductible costs of operating an automobile for business use in lieu of tracking actual costs. This rate is also used as a benchmark by the federal government and many businesses to reimburse their employees for mileage.<br />
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The new six-month rate for computing deductible medical or moving expenses will also increase by 4.5 cents to 23.5 cents a mile, up from 19 cents for the first six months of 2011. The rate for providing services for charitable organizations is set by statute, not the IRS, and remains at 14 cents a mile.Dionnehttp://www.blogger.com/profile/12394855712257519904noreply@blogger.com0tag:blogger.com,1999:blog-1346850927088270119.post-23442301895581604062011-05-11T22:45:00.000-07:002011-05-13T13:29:00.261-07:00Opportunity to comment on certain employer provisions of ACAThe IRS just put out the following notice:<br />
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<div></div><blockquote>The IRS and Treasury Department are seeking feedback from small business owners who employ at least 50 full-time employees on the shared responsibility provisions included in the Affordable Care Act.<br />
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<div></div>Under the Affordable Care Act, employers with 50 or more full-time employees that do not offer affordable health coverage to their full-time employees may be required to make a shared responsibility payment. The law specifically exempts small firms that have fewer than 50 full-time employees. This provision takes effect in 2014.</blockquote><br />
<div></div>Additional Links:<br />
<ul><li><a href="http://www.irs.gov/newsroom/article/0,,id=239023,00.html">IR-2011-50</a></li>
<li><a href="http://www.irs.gov/pub/irs-drop/n-11-36.pdf">Notice 2011-36</a></li>
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If you are interested in submitting coments, there are three ways to submit comments.<br />
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<div> </div><ul><li>E-mail to: Notice.Comments@irscounsel.treas.gov. Include “Notice 2011-36” in the subject line. </li>
<li>Mail to: Internal Revenue Service, CC:PA:LPD:PR (Notice 2011-36), Room 5203, P.O. Box 7604, Ben Franklin Station, Washington, DC 20044.<br />
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<li>Hand deliver to: CC:PA:LPD:PR (Notice 2011-36), Courier’s Desk, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC, between 8 a.m. and 4 p.m., Monday through Friday. </li>
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<div></div><strong>The deadline for comments is June 17, 2011. </strong><br />
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<div></div>Dionnehttp://www.blogger.com/profile/12394855712257519904noreply@blogger.com0tag:blogger.com,1999:blog-1346850927088270119.post-6615373796793677742010-05-07T12:04:00.000-07:002010-05-07T12:04:00.299-07:00Small Business Tax CreditOne of the first health care reform provisions to go into effect under the Patient Protection and Affordable Care Act is the new small employer health insurance credit for small businesses that provide health care coverage to their employees.<br /><br /><br /><br />This credit is worth up to 35% of eligible insurance premiums. The IRS announced that it will be sending postcards to more than 4 million business and not-for-progit organizations to inform them of the new credit.<br /><br /><br /><br />Eligibility Qualifications for 2010:<br /><br /><ul><br /><li>Have a maximum of 25 full time employees for the year*</li><br /><li>Pay no more than $50,000 annual wage per full time employee</li><br /><li>Pay at least 50% of the health insurance premiums on a qualifying plan.</li></ul><br /><p>* Full time employees are determined by the IRS term <strong><em>FTE (Full Time Equivalent) Employees</em></strong>. For purposes of the small business credit, FTE employees means a number of employees equal to the number determined by dividing:</p><br /><ol><br /><li>The number of total hours of service for which wages are paid by the employer to nonseasonal employees during a taxable year, by</li><br /><li>2080 </li><br /><li>The result is rounded down to the next whole number to determine the number of FTE employees.</li></ol><br /><p><strong>Do Not</strong> count more than 2080 hours for any employee, and don't count any employees that fall into the following categories:</p><br /><ul><br /><li>Business owners - including: sole proprietors, LLC members, 5% or more owners in a C corporation, partners in a partnership, 2% shareholders in an S corporation</li><br /><li>Family members of the individuals listed above</li><br /><li>Employees that are considered seasonal employees.</li></ul><br /><p>We will discuss this new tax credit in detail in our next post.</p>Dionnehttp://www.blogger.com/profile/12394855712257519904noreply@blogger.com0tag:blogger.com,1999:blog-1346850927088270119.post-71215055324518756842010-05-04T10:21:00.000-07:002010-05-04T10:21:00.515-07:00California offers a New Home and First-Time buyer CreditBeginning May 1, 2010, Californians who purchase a new home and California first-time home buyers can qualify for one of two state tax credits.<br /><br />Only one of the credits may be claimed per taxpayer, and there are some general guidelines:<br /><ul><li>The home must be a principal residence; rental and investment properties don't qualify.<br /></li><li>The home must be purchased on or after May 1, 2010 and before January 1, 2011.<br /><br />However, a binding contract entered into by December 31, 2010 may also qualify if the escrow closes by August 1, 2011.<br /><br />Also, if you enter into a contract before May 1, 2010, you may also qualify if escrow closes on or after May 1, 2010.<br /></li><li>The credit is 5% of the purchase price of the home up to a maximum of $10,000.<br /></li><li>Unlike the federal credit, the California credit is nonrefundable (can't reduce the taxpayers tax liability below zero) and must be claimed in equal amounts over 3 successive tax years. No more than one-third of the credit may be claimed in any one year.<br /><br />This tax can't be carried back or forward, so if your tax liability for one year is already at zero, you can't 'hold' your credit and apply to a different year.<br /></li></ul><p>There is a limit to how much money the California government is willing to spend. There is a cap of $100 million for the New Home Credit and $100 million for the First-Time Buyer Credit. So if they run out of funds before you purchase your house, you are out of luck.</p><p>Check the <a href="http://www.ftb.ca.gov/"><strong>state website</strong> </a>for updates regarding these limits. Once the funds are completely allocated, home buyers will no longer be issued a Certificate of Allocation. This certificate is required to claim the tax credit on a California income tax return.</p>Dionnehttp://www.blogger.com/profile/12394855712257519904noreply@blogger.com0tag:blogger.com,1999:blog-1346850927088270119.post-76110768585300517662010-04-30T10:06:00.000-07:002010-05-04T12:22:01.641-07:00Can HSA funds be used for insurance premiums?This is a question that comes up quite often. Can HSA funds be used for insurance premiums? The answer, is in fact, a definitive maybe.<br /><br />Heaslth insurance premiums are generally not qualified medical expenses for HSA purposes. However, there are four specific exceptions where premiums are considered qualified expenses:<br /><ol><li>COBRA premiums</li><li>Premiums for a long-term care contract</li><li>Medical premiums</li><li>Premiums paid while the taxpayer is receiving unemployment benefits.</li></ol><p>If none of these exceptions are applicable, then the health insurance premiums are not qualified expenses and you should not withdraw funds from your HSA to pay them.</p><p>What happens if you have already withdrawn funds to pay for an unqualified insurance premium?</p><p>If your HSA plan allows for repayment due to a mistake made with reasonable cause, make the repayment immediately. Reasonable cause includes a reasonable, but incorrect assumption that your premiums are a qualified expense. The amount MUST be repaid no later than April 15 of the year following the year of the mistake. If these steps are taken the amount repaid is not included on FORM 1099-SA and is not subject to tax or penalty.</p><p>If your plan does not allow for repayment because of a mistake due to reasonable cause, you may still repay the amount under the general 60-day rollover rule. But only one 60-day rollover is allowed each year, so pay attention to your payments.</p><p>If you have mistakenly made unqualified premium payments with HSA funds and have already passed the 60-day rollover period on a plan that doesn't allow for repayment be prepared to pay taxes and penalties come April 15th.</p>Dionnehttp://www.blogger.com/profile/12394855712257519904noreply@blogger.com0tag:blogger.com,1999:blog-1346850927088270119.post-36404318796907464942010-04-27T19:27:00.000-07:002010-04-27T19:27:00.291-07:00April Legislative WatchLegislative activities in the month of April include the House version and the Senate version of the Taxpayer Act:<br /><br /><strong><span style="font-size:130%;">House of Representatives</span></strong><br /><strong>Taxpayer Assistance Act</strong> - (HR4994, The Taxpayer Assistance Act of 2010) Last week the House voted 399-9 in favor of HR4994. Although passage in the Senate is likely, it's not yet on the Senate calendar. One of the most important provisions in the bill would remove cell phones from the definion of listed property so that employees would not be required to account for personal-use of employer provided phones.<br /><br /><strong><span style="font-size:130%;">Senate</span></strong><br /><strong>Taxpayer Protection Act - </strong>(S3215, The Taxpayer Protection Act of 2010) was introduced in the Senate on Friday, April 16th. This bill includes several important provisions:<br /><ul><li>Authorizes a $35 million grant program for Volunteer Income Tax Assistance (VITA) programs. This is the grant money that pays for free volunteer tax preparation by organizations such as AARP. It is worth noting that a similar provision was removed from the bill in the House (HR4994) before it passed, so it's likely this will be eventually stripped from the Senate bill as well.<br /></li><li>Enhances regulations placed on paid tax preparers. This would require unenrolled preparers to register and pass a competency exam and background check to enter the profession. It also requires annual continuing education and re-testing every 3 years.<br /></li><li>Prohibits the IRS from providing a debt indicator for Refund Anticipation Loans before verifying that the refund won't be offset. This means that unless there is a specific reason for a previous IRS debt to be divulged, this bill will keep it private.<br /></li><li>Provides an alternative payment method, such as a pre-paid credit card or debit card for unbanked taxpayers.</li></ul>Dionnehttp://www.blogger.com/profile/12394855712257519904noreply@blogger.com0tag:blogger.com,1999:blog-1346850927088270119.post-90894436732659314512010-04-25T22:37:00.001-07:002010-04-26T20:24:51.667-07:00Gambling Winnings now Taxed in New Hampshire<span xmlns=""> <p>Tax Form DP-300 Finally Released!<br /></p><p>Haven't heard of Form DP-300? If you are a resident of New Hampshire, or hit a lucky streak while visiting New Hampshire, you might want to read on.<br /></p><p>In July of 2009 the state of New Hampshire legislature passed a law that imposes a 10% tax on gross gambling winnings. Although the form required to file this new tax – Form DP-300, wasn't available until late February, 2010, you may still be required to file for the 2009 tax year.<br /></p><p>Who is required to pay? This new tax applies to all New Hampshire residents, regardless of where they received the winnings. So if you currently reside in the granite state but hit the jackpot in Las Vegas, Nevada, you will still have to pay the newly imposed taxes in the state of New Hampshire. When it comes to taxes, what happens in Vegas doesn't stay in Vegas.<br /></p><p>Not a resident of New Hampshire? Don't breathe easy just yet, if you had any gambling winnings in the state of New Hampshire, you too will be subject to the 10% tax. The determining factor is if you received a federally required W-2G form from a New Hampshire payer.<br /></p><p>The form itself is fairly simple, with most of the information required available on the W-2G form.<br /></p><p>However, if you aren't sure if this new tax applies to you, it's in your best interest to follow up and file as soon as possible. Lack of knowledge will not excuse you from paying interest and penalties if you don't file on time. Form DP-300 gives you the opportunity to determine how much you might own in interest. The interest rate is 6% or decimal equivalent .000164. The equation to figure out the exact amount (Number of days x daily rate decimal equivalent x Tax due = interest) is also detailed on the back side of the form.<br /></p><p>The penalties for failure to pay and failure to file are much stiffer. The penalty for failure to pay is 10% unless you fraudulently attempt to hide your winnings, then the penalty jumps to 50% of the amount of non-payment.<br /></p><p>Example: You won $10,000 at the Happy New Hampshire Casino, because you were late to discover the new tax law, you filed form DP-300 two weeks late. Your fees would be:<br /></p><p>Tax - $1000 (10%)<br /></p><p>Interest - $2.296 (14 days x .000164 x $1000)<br /></p><p>Penalty - $100 (10% of nonpayment)<br /></p><p>Total - $1,102.296<br /></p><p>Form DP-300 can be found at <a href="http://www.revenue.nh.gov/forms/By_Number/documents/dp_300.pdf">www.revenue.nh.gov/forms/By_Number/documents/dp_300.pdf</a></p></span>Dionnehttp://www.blogger.com/profile/12394855712257519904noreply@blogger.com0