Small Charities Can Retain Status with Special Filing Relief Program

The IRS has just released a one-time relief program for small charities.  Under the one-time relief program, small nonprofit organizations at risk of losing their tax-exempt status because they failed to file required returns for 2007, 2008 and 2009, would be allowed to preserve their status by filing returns by October 15, 2010.

To check if your organization qualifies, check for charities located in California or the full list.

If you need assistance with your organization’s return filings, please contact LMGW.

Financial Regulatory Reform Bill

The Dodd-Frank Wall Street Reform and Consumer Protection Act was signed by President Obama on July 21, 2010. Among the highlights of bill are:

•The establishment of a Financial Stability Oversight Council. This council will identify and monitor companies that engage in activities that could threaten the stability of the financial system. The council will also have the ability, through the Federal Reserve, to break up large firms.

•The establishment of the Consumer Financial Protection Bureau, which will consolidate most of the federal regulation of financial services offered to consumers. Most credit providers, including mortgage lenders, payday loan providers and bank and credits unions with assets over $10 billion will be subject to the new regulations.

•Executive compensation will require a nonbinding shareholder vote. Compensation based on financial statements that are later restated may have to be returned.

•Companies that file with the SEC will be required to disclose in a proxy statement the reasons why they have separated or combined the positions of chairman and CEO.

•The Office of Thrift Supervision will be eliminated and savings-and-loan institutions will now be regulated by the Office of the Comptroller of the Currency, which currently regulates federally chartered banks.

To read the full bill click here.

LMGW Receives Highest Rating in Peer Review Report

LMGW Certified Public Accountants, LLP has received a rating of “pass” related to the system of quality control for the accounting and auditing practice in the most recent peer review.  Pass is the highest rating a firm can receive.  The peer review program is dedicated to enhancing the quality of accounting, auditing and attestation services performed by CPAs in public practice.  Peer reviews are required every 3 years.  For our clients, this ensures that LMGW is providing the highest quality service.  For a copy of our lastest system review report, please click the link below:

Peer Review Report – 2009

Extended Deadline for Homebuyer Tax Credit

If you were eligible for the Homebuyer Tax Credit but did not close by June 30, 2010, Congress enacted new legislation on July 2nd extending the closing date to September 30, 2010. Under the Homebuyers Assistance and Improvement Act of 2010 buyers that were under contract by April 30, 2010 will now have until September 30, 2010 to close and still qualify for the Homebuyer Tax Credit. Under previous law, the closing date had to occur by June 30th. The requirement that the binding contract must have been entered into by April 30, 2010 remains the same.
Taxpayers claim the credit by filing form 5405 with their tax return. A copy of a properly executed settlement statement, and proof of living in your home for a 5 consecutive year period if you are claiming the credit as a long time resident, should be attached to the form. Failure to submit proper documentation may delay the issuance of a refund.

New Tax Law Alerts

Fraudulent E-Mails– Phony e-mails claiming to be from the IRS have been circulating. As fraudulent e-mails containing harmful viruses or requesting personal information in an identity theft scam are becoming more and more frequent we want to remind our clients that the IRS does not send unsolicited e-mails to any taxpayers nor do they request personal information via e-mail. Visit www.irs.gov/privacy for more information.

Report of Foreign Bank and Financial Accounts (FBAR)-If you have an interest in or signature authority over a foreign financial account, you may have a FBAR filing requirement if the aggregate value of these accounts was $10,000 or more at any time during 2009. FBARs are due by June 30, 2010 and there are hefty penalties for failing to file a timely FBAR. Some taxpayers may be eligible for an extension to file until June 30, 2011. Read more