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2014 Tax Extenders

Taxonomy: 
Tax & Accounting
Body: 

In December 2014, Congress passed a tax extender bill that was then signed by the President, which extended tax write-off provisions for tax filing year 2014.  Previous to this Bill, these provisions were scheduled to expire on 12/31/13.  

Some of the extensions that were restored which may benefit you include:

  • IRC §179 expensing of business purchased equipment and/or software from $25,000 to the previous $500,000 value and raising the purchase amount limit from $200,000 to $2,000,000.

 

The IRS Wants to Know Who You Paid

Taxonomy: 
Tax & Accounting
Body: 

As we move through the first few weeks of January, it is important to take critical steps regarding any people or businesses you have paid throughout 2014 to decide if a 1099 should be issued.  Preparation for Form 1099 for the year 2014 has already begun.  Should you need assistance preparing this form see the information below for clarification. 

To prepare and complete Form 1099, you will need the following information for each recipient:

Luxemburg Tax Schemes

Taxonomy: 
Tax & Accounting
Body: 

Over 340 international companies have made secret deals in Luxemburg to save billions of dollars in taxes while maintaining little presence in the country based on leaked documents tied to the transactions.  These large companies can save in taxes by creating accounting and legal structures in Luxemburg to effectively pay tax rates less than 1 percent of the profits shifted in this country.  The leaked documents included diagrams of the complicated business structures and hundreds of pages of private tax rulings.  These letters asked for favorable tax treatment for the corpor

State of New Jersey - New Legislation 2014

Taxonomy: 
Tax & Accounting
Body: 

Refunds of Partnership Payments on behalf of Nonresident Partners:

In response to the Tax Court decision in BIS LP, Inc. v. Director, Div. of Taxation, 2014 N.J. Tax (App. Div. Apr. 11, 2014), the new law clarifies the circumstances in which the tax paid by a partnership on behalf of its nonresident partners may be claimed.

In 2002, legislation was enacted to require NJ partnerships to make payments on behalf of their nonresident partners.

Inversions Update

Taxonomy: 
Tax & Accounting
Body: 

On Monday September 22, 2014, the IRS and Treasury issued new tax rules to attempt to deter inversions. 

The first amended aspect of the rule is the IRS has removed hopscotch loans.  This will prevent inverted companies from accessing a foreign subsidiary’s earnings while deferring U.S. tax through the use of creative loans.  These loans are considered U.S. property for the purposes of applying the anti-avoidance rule. 

Resolve Your Tax Debt with State of New Jersey

Taxonomy: 
Tax & Accounting
Body: 

On September 17, 2014 the Division of Taxation launched its 2014 Fall Outreach Initiative. For a limited time businesses and individuals that have unpaid tax liabilities from tax periods 2005 through 2013 in the state of New Jersey, are being offered an easy way to request and enter into a closing agreement with the division in order to satisfy outstanding tax liabilities.

Individuals and businesses can reduce or eliminate their accumulated penalties and fees if they pay in full by November 17, 2014.

Massachusetts Cuts You a Break!

Taxonomy: 
Tax & Accounting
Body: 

On September 1st the Massachusetts Department of Revenue (DOR) began a two month period, which ends October 31, 2014, that cuts late tax payers a potentially huge break.

If you owe money to the Massachusetts DOR, as an Individual or a corporation, you may very well qualify for what they are calling a Tax Amnesty. What this Amnesty does is allow you to waive any late penalties that you have accrued on your state taxes.

Tax Identity Theft

Taxonomy: 
Tax & Accounting
Body: 

Tax identity theft happens when someone files a phony tax return using your personal information (i.e., your SSN) to get a tax refund from the IRS.  It also can happen when someone uses your Social Security number to get a job or claims your child as a dependent on a tax return.

Tax identity theft is the most common form of identity theft reported to the Federal Trade Commission.  Tax identity theft is a top priority for the IRS, and the IRS has hired new staff, explored new technologies, and adopted new procedures to fight it. 

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