Update to DOMA decision on same-sex couples

October 14, 2013

IRS is reminding same-sex couples, legally married in jurisdictions that recognize their marriages, are now treated as married for tax purposes, regardless of where they live. This applies to any return, including 2012 returns, filed on or after September 16th, 2013. This means returns must be filed using either the married filing jointly or married filing separately filing status.


IRS Warnings regarding Government Shutdown

October 14, 2013

For those taxpayers who requested a six-month extension of their taxes, and are still in the process of getting their 2012 individual income taxes prepared, the October 15th deadline still remains in effect to submit their individual tax return on a timely basis. The only additional time applies to military and others serving in a combat zone and those in parts of Colorado affected by the recent severe weather.

Payments submitted to IRS will be processed, however expect delays on refunds which will not be issued until normal government operations resume.


Legal Same-Sex Marriage Recognized for All Federal Tax Purposes

September 3, 2013

Same-sex married couples will be recognized as legally married for all federal tax purposes, regardless of where they live, so long as they were married in a jurisdiction that recognizes such marriages as legal, the Treasure Department and Internal Revenue Service said in a joint statement issued on August 29, 2013. “This ruling also assures legally married same-sex couples that they can move freely throughout the country knowing that their federal filing status will not change,” Treasury Secretary Jacob J Lew said.

Under the ruling, same-sex couples will be treated as married for all federal tax purposes, including income and gift and estate taxes. The ruling applies to all federal tax provisions where marriage is a factor, including filing status, claiming personal and dependency exemptions, taking the standard deduction, employee benefits, contributing to an IRA and claiming the earned income credit or child tax credit.

The ruling applies to any same-sex marriage legally entered into in any of the 50 states, the District of Columbia, U.S. territories, or a foreign country, Treasury said. However, the ruling DOES NOT apply to registered domestic partnerships, civil unions, or similar relationships recognized under state law.

Legally-married same-sex couples generally must file their 2013 federal income tax return using either the married filing jointly or married filing separately filing status.

Individuals who were in same-sex marriages prior to the Supreme Court decision, may, but are not required to, file original or amended returns to be treated as married for federal tax purposes for years still open under the statute of limitations.

Additionally, employees who purchased same-sex spouse health insurance coverage from their employers on an after-tax basis may treat the amounts paid for that coverage as pre-tax and excludable from income.

Florida Business Compliance Posters

June 18, 2011

Every so often we will get a call from a client telling us they have just received a notice in the mail requesting a certain amount of money for posters to be displayed at their location as required by the State of Florida.

These posters can reference discrimination, unemployment compensation, worker’s compensation, minimum wage, child labor law and a host of others.

While it is true Florida  & Federal Labor Laws require these notices to be current and posted, you do NOT and should not pay for these notices.

Simply contacting the agency (and in some cases they can be downloaded from the website) and requesting the poster which applies to you, they will send it to you FREE of charge.

Please check www.floridajobs.org, www.osha.gov, www.dol.gov and type “posters” in your search. These are not all the sites but Iam simply showing you where to get started.

Special Tax Considerations In Bankruptcy

May 9, 2011

In today’s struggling economy, more individuals and businesses are filing bankruptcy each day than ever before. The saying “you don’t know what you don’t know” is never truer than in the tax considerations in Bankruptcy.

Of course, I can’t go over all the rules/regulations in the space provided. However, let’s cover some basic information.

Failure to file tax returns timely or obtain an extension can cause a bankruptcy petition to be converted to another chapter or dismissed. In chapter 13 cases, the debtor must file all required tax returns for the periods ending within 4 years of the filing of the bankruptcy petition.

Not all debts may be discharged depending on the chapter and the nature of the debt. For discharge of unpaid tax under chapter 7, taxes for which no return was filed, taxes for which a return was filed late after 2 years before the bankruptcy petition was filed, taxes for which a fraudulent return was filed, and taxes that you willfully attempted to evade or defeat are NOT subject to discharge. There can be different rules under chapter 13 as a payment plan.

What happens to a cancellation of debt that the debtor must generally include in income such as a 1099-C? The debtor may not have to report the entire amount of canceled debt as income under a bankruptcy exceptions.

Two very good Internal Revenue Publications are Pub #908 & #334. Also the instructions for Form 982 could aid you in this very difficult area of tax considerations.

If you are thinking you are filing bankruptcy to discharge taxes due, you may find out too late that you have missed one of the important timing deadlines to include those particular taxes.

Please seek out professional guidance from an Enrolled Agent or a Bankruptcy Tax Attorney experienced with bankruptcy issues prior to filing.

Is IRS Auditing QuickBooks?

November 2, 2010

The Internal Revenue Service recently acquired 1,200 QB licenses in 2010 and will utilize the program to conduct field audits of taxpayers who use the QB program.

Internal Revenue Service employees completed their training on use of the QB program the last week of September, 2010.

Please be aware that your QB back-up files are required to be produced if requested by an IRS Agent.

Just another reason not to throw caution to the wind if you receive that dreaded IRS notice for any type of inquiry.

Your accounting should be handled by a professional accounting firm.  ALL IRS responses should be handled by an experienced Enrolled Agent.

There are many “behind-the-scenes” events that Taxpayers simply are not aware of which can costs thousands  of dollars in additional tax, interest or penalties if IRS notices are not responded to promptly and accurately.

State of Florida Tax Amnesty

July 19, 2010

Most State of Florida taxes ie: Corporate Income Tax, State Sales Tax-owed prior to July 1, 2010 (UNLESS you have already entered in to an agreement) will qualify for the State’s amnesty program. You will need to complete an amnesty agreement which can be found on-line at www.myflorida.com  Someone will then contact you to schedule a payment plan. You may qualify for no penalty, 75% of the interest due, 12.5% payment of the amount due and then the balance over 7 months. Interest continues to accrue during the payment plan option.

However, you must continue to be current on all filings and future taxes owed or the agreement can be voided with all penalties and/or interest reinstated.

You can apply anytime between July 1, 2010 – September 30, 2010.