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
Following the recent law changes passed in late December 2010, the IRS issued News Release IR-2010-126 announcing a delay in processing certain tax returns in order to allow the IRS time to revise applicable tax forms and update its processes for the law changes. If you fall into any one of the three categories below you can expect the filing of your tax return to be delayed until mid to late February:
•Taxpayers claiming itemized deductions on Schedule A.
•Taxpayers claiming the Higher Education Tuition and Fees Deduction. However, the IRS emphasized that there will be no delays for taxpayers claiming other education credits such as the American Opportunity Tax Credit and Lifetime Learning Credit.
•Taxpayers claiming the Educator Expense Deduction. This deduction is for kindergarten through grade 12 educators with out-of-pocket classroom expenses of up to $250.
The delay affects both paper and electronically filed returns. The IRS is expected to announce a specific date when it will begin processing tax returns impacted by the law changes. For more information and updates, visit www.irs.gov.
A.k.a., the Bush tax cuts extender act (as we like to call it) was signed into law by President Barrack Obama this past week with some sweeping tax cuts, extensions, and new provisions for both individuals and businesses. Some of the highlights of the new act are:
There are many changes to tax law for the next two years but these are some of the highlights. As always if you have any specific questions about how the new law pertains to your specific tax situation, please do not hesitate to contact your LMGW advisor at once!
California and federal incentives for buying certain clean vehicles are still available. California currently offers a rebate of up to $5,000 per light duty vehicle to individuals and businesses who purchase or lease a new eligible zero emissions or hybrid electric vehicle. Certain zero emissions commercial vehicles are eligible for a rebate of up to $20,000. The rebates are available on a first come first serve basis and apply to qualified vehicles purchased or leased after March 15, 2010. For more information on eligible vehicles, rebate amounts and to apply for rebates visit www.energycenter.org. Read more
Estate and generation-skipping transfer (GST) taxes have been repealed for 2010 but are scheduled to return in 2011. Next year’s rules, however, won’t be those that applied during 2009 when these taxes were last in effect. Rather, unless Congress acts, rules from 2001 will apply for next year. This Practice Alert explains what repeal means, what old rules are scheduled to return in 2011, and relevant concerns and planning considerations both for this year and next year.