The IRS recently issued Rev. Proc. 2011-32 increasing the limits on contributions to HSA accounts for 2012. The new limits are $3,100 and $6,250 for self only and family coverage, respectively. The prior limits (2010 and 2011) were $3,050 and $6,150. Contributions can be made up until the due date of the return (not including extensions) to be counted for the tax year. The new contribution limits are effective January 1, 2012.
The requirement for 1099 reporting to corporations for payments of $600 or more has been repealed. On April 14, 2011 President Obama signed the Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011 repealing the expanded 1099 reporting requirement.
Before the repeal, 1099s were generally required to be issued for payments of $600 or more per year to a single recipient if those payments were made in connection with a trade or business. Payments made to corporations were exempt from this requirement in the past, but legislation passed in 2010 added corporations to the reporting requirement starting with payments made after December 31, 2011. The repeal passed on April 14, 2011 again exempts payments made to corporations from 1099 reporting.
The IRS announced it has released its first smartphone application, IRS2GO. The app allows people to check their refund status, get daily tax tips, and follow the IRS news feed on Twitter all through their Apple or Android platform smartphones.
To check a refund status, users will need their social security number, filing status, and expected refund amount from their 2010 tax return. Per the IRS website, sensitive information such as social security numbers will be masked and encrypted for security. If you e-file your return you can use the app to check the status of your refund within 72 hours of the IRS’s acceptance of the return. Paper filers will have to wait 3-4 weeks.
The app will also let users subscribe to Tax Tips. The IRS issues tax tips daily during the filing season and periodically during the rest of the year. The tips are designed to be easy to understand and provide users with information on tax planning and preparation.
Finally, if you are so inclined, you can follow the IRS Twitter news feed, @IRSnews. The Twitter feed provides the latest news, tax law changes, and information on IRS programs in short, timely messages.
The app is free and can be downloaded from the Apple App Store or the Android Marketplace.
LMGW Certified Public Accountants, LLP would like to congratulate Jennifer Hauck, Supervising Senior Accountant for completing her Enrolled Agent (EA) exam.
Jennifer has been with LMGW for 8 years. She serves both individual and business tax clients, providing consulting services for bookkeeping, tax preparation, and tax planning.
The Internal Revenue service issued new guidance January 13, 2011 that allows for additional small nonprofits to file a simpler tax form that contains far less information than was previously required. Small nonprofits may be able to file Form 990-N also known as an e-Postcard for their 2010 annual information reporting as long as they receive less than $50,000 per year. Read more