Tax Bulletins
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- Immediate Action May Be Required re: Employer-Owned Life Insurance
Employers owning life insurance policies on employees which were issued after August 17, 2006 must include a new IRS Form 8925 with their income tax returns. Form 8925 is required to be included with tax returns annually for years ending after November 13, 2007 and is an annual requirement per the Pension Protection Act (PPA) of 2006.
- Small Business and Work Opportunity Tax Act of 2007 (SBWOTA) Addresses Section 179 Election, AMT Limits, and “Kiddie Tax”
President Bush signed into law the Small Business and Work Opportunity Tax Act of 2007 (SBWOTA) on May 25, 2007. Passed in conjunction with legislation to continue funding the war in Iraq and to raise the minimum hourly wage, the tax-related provisions are designed in part to provide benefits to small businesses likely to be hit hard by the minimum wage increase.
- Important Tax Return Information: E-Filing
The Internal Revenue Service (IRS) and many states are now requiring electronic filing (e-filing) of tax returns. These new requirements affect the manner in which we send your tax returns to you. The following is a brief description of some of these changes for 2007.
- Tax Relief and Health Care Act of 2006
As you may know, on Dec. 20, 2006, President Bush signed into law the Tax Relief and Health Care Act of 2006. In addition to extending certain tax provisions that had expired at the end of 2005 or that had been set to expire soon, the act introduces some new rules and important tax breaks we think you'll want to know about.
- Refund Opportunity:
IRS To Give Refunds On Long-Distance Telephone Tax
The IRS recently announced that taxpayers who paid the federal telephone excise tax on long distance service from March 2003 through July 2006 can request a refund on their 2006 federal income tax returns. There are separate provisions for determining refunds for businesses, self-employed individuals and other individual taxpayers.
- Special
Tax Alert: New Jersey Residents Face Sales/Use Tax Increase
New Jersey residents may have noticed by now that the state is taking a bigger chunk of change out of their pocketbook:
- The sales tax has increased to 7% (as of July 15, 2006).
- As of October 1, 2006, sales and use taxes are now imposed on a large number of services that were formerly exempt. The laundry list of services that are now being taxed range from basic home maintenance items, such as certain dry cleaning services, to larger items such as landscaping.
- The new tax law clarified that an out-of-state business will have sales tax nexus in New Jersey through independent agent
- Special
Tax Alert: Pension Protection Act of 2006 Affects Retirement Plans,
Charitable Giving
On August 17, 2006 President Bush signed into law the Pension
Protection Act of 2006 (PPA). The 900+ page bill contains changes
for your retirement plan, as well as changes affecting charitable
giving. The following provides some of the highlights. Your Anchin
relationship partner will be glad to discuss with you how the
provisions of this act might affect your tax situation for 2006
and future years.
- Special
Tax Alert: Tax Increase Prevention and Reconciliation Act of 2005
brings tax relief to individuals and businesses
On May 17, President Bush signed the Tax Increase Prevention and
Reconciliation Act of 2005 (TIPRA). This bill provides a variety
of tax breaks that may apply to you. Specifically, it extends
expensing rules for small businesses and tax rate reductions on
dividends and capital gains. It also temporarily protects some
middle-income Americans from the alternative minimum tax (AMT),
expands the kiddie tax to age 18, and makes it easier to convert
traditional IRAs to Roth IRAs.
- IRS Offers Motorists
a Break on Gas Prices
To help businesses and individual taxpayers cope with soaring
gasoline prices, IRS Commissioner Mark Everson September 9 announced
an increase in the standard optional mileage rate for the rest
of the year.
- Charitable
Contributions for Tsunami Relief
The new law signed by the president January 7th 2005 provides
an unprecedented incentive for donations to help tsunami victims.
The legislation permits taxpayers to claim charitable deductions
on 2004 income tax returns for contributions made in
January 2005.
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