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02.07.2012
News, Nonprofit, Tax
The IRS Form 990, Return of Organization Exempt from Income Tax, is one of the most important documents that a non-profit organization prepares. The 990 provides reporting to the IRS on an organization’s programs, revenue sources, contributions, expenses and governance. One of the most important things about an organization’s 990 is that it is available for public review. Potential donors often download the organization’s 990 to gather more information before deciding to make a contribution and Press will often review the form when preparing articles about the non-profit. As you can see, it’s important that the 990 is accurate and complete. Read more
11.01.2012
News, Tax
The 2% cut in social security withholding in effect during 2011 has been extended until February 29, 2012. The Temporary Payroll Tax Cut Continuation Act of 2011 was signed by President Obama on December 23, 2011. The temporary cut means that employees will only have 4.2% of their wages withheld for social security as opposed to the normal 6.2%. Employers are required to comply with the law by January 31, 2012. Any social security tax over withheld before the employer has complied will then be adjusted in the employee’s pay by March 31, 2012. Read more
11.01.2012
Business, Matt, Personal Finance, Tax
Yesterday the IRS announced a third round of their highly successful Offshore Voluntary Disclosure Initiative (OVDI) program. The OVDI was highly publicized with the 2009 revelation that several large Swiss banks, including UBS, were going to be cooperating with the IRS in disclosing the names of US citizens and residents holding Swiss bank accounts. Read more
30.12.2011
News, Tax
On December 14, 2011 the IRS released form 8938 for reporting certain specified foreign assets. Per IRC §6038D, individual taxpayers holding an interest in a specified foreign asset must report that interest on their tax return if the combined value of all specified foreign assets is $50,000 or more. A specified foreign asset includes the following:
• Any financial account maintained by a foreign institution
• Stocks issued by a non US entity that are not held in an account maintained by a financial institution
• An interest in a foreign entity not held in an account maintained by a financial institution
• Notes, bonds, or debentures issued by a foreign person not held in an account maintained by a financial institution
• An interest in a foreign trust not held in an account maintained by a financial institution Read more
16.12.2011
News, Tax
2012 federal standard mileage rates were recently announced in IR News Release 2011-116. The business standard mileage rate will remain unchanged at 55.5 cents per mile. Medical mileage will decrease to 23 cents per mile and the charitable mileage rate remains at 14 cents per mile.
Remember, in most cases standard mileage is not required and taxpayers can instead choose to deduct the actual cost of operating their vehicle. As always, adequate documentation is required to support the business use of your vehicle.