New Law Extends Tax Relief, Reinstates Estate & Gift Tax
Key Provisions of the Tax Relief Act of 2010 Incentives for Individuals Federal Estate & Gift Taxes Incentives for Businesses On December 17, 2010, President Obama signed into law the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 , or H.R. 4853 (hereafter, “the Act”). The bipartisan legislation extends for two additional years many of the so-called “Bush-era tax cuts” originally enacted under the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA). Key provisions of the new law extend the individual and capital gains/dividend tax cuts for all taxpayers through 2012, enact a payroll tax cut for 2011, provide a two-year AMT patch, establish a top estate tax rate of 35 percent with an exclusion of $5. Read More.
Time is Running Out to Claim California LLC Fee Refund for 2004
The California LLC fee previously imposed on an LLC’s total unapportioned gross receipts has been held unconstitutional. The rules were prospectively changed for tax years beginning in 2007 to allow for an apportioned gross receipts tax base. If your LLC has paid the fee for the 2004 tax year, you should act now to determine whether a protective refund claim is warranted as the statute for 2004 expires on April 15, 2009. LLCs that filed Form 568 and paid the state fee based on the company’s total worldwide income should file a refund claim. Claims may be filed within four years of the. Read More.
Study Shows More Small Businesses Turning to Accountants as Economic Concerns Grow
According to a study by Intuit, Inc., almost 80% of small business owners say “they would feel more confident having an accountant as a close business advisor” during the current economic downturn. The report also finds that as owners’ concerns have changed, interest in receiving business consulting and financial advice has “nearly doubled.” The survey, conducted in mid-January by the developer of the popular QuickBooks® and TurboTax® software products, polled 250 accountants and 250 small business owners across the U.S. about the growth challenges they face. The January results were then compared to the results of a similar survey conducted last. Read More.
IRS Issues Extended NOL Carryback Guidance, Promises Prompt Refunds
The IRS released important new guidance on extended net operating loss (NOL) carrybacks under the American Recovery and Reinvestment Act of 2009 (the “Recovery Act”). This new guidance clarified important issues and provided an essential financial means for businesses to maximize cash flow in difficult times. The IRS further stated that they will work to issue NOL carryback refunds within 45 days or less “to the degree possible.” Normally, net operating losses (NOLs) may be carried back to the two years before the year that the loss arises and carried forward to each of the succeeding 20 years after the year that the loss arises. For 2008, the Recovery Act extended. Read More.