Sep 252012
 
Overview Of The 5 Tax Amendments On The 2012 Florida Ballot

Included among the eleven measures which are set to appear on the November 6 ballot are five that will give Florida voters the opportunity to put more tax breaks into the Florida Constitution.    Here is a brief overview of each amendment: Amendment 2 – also known as the Florida Veterans Property Tax Amendment would amend Article VII Section 6 (Homestead exemptions) of the Florida Constitution to expand property tax discounts for disabled veterans.  As written now, the Constitution only provides a deduction if the disabled veteran was a resident of the state at the time of entering the military service.  More…

Sep 172012
 
Transfer Of Business Assets In Florida May Come With State Tax Liability

A recently enacted Florida statute clarifies that the transfer of a Florida business’s assets is considered a sale of the business and that the sale may come with Florida tax liability.  Florida Statute § 213.758 states that when a taxpayer who is liable for taxes with respect to a business transfers either the business, the assets of the business, or the stock of goods of the business, the taxpayer must file a final return and make full payment of taxes within 15 days after the date of the transfer.  The statute goes on to state that a transferee, or a More…

Aug 272012
 
Employers: What To Do If You Receive A Notice Of Wage Levy

When a taxpayer fails to satisfy their tax liabilities, the IRS has an wide variety of collection tools that it may call upon in order to force the taxpayer’s compliance. One (infamous) method is that of a wage levy, which requires employers to assist the IRS in its tax collection efforts by seizing the taxpayer’s income at the source. When the employer receives a Form 688-W, Notice of Levy of Wages, Salary, and Other Income, they have little option but to follow the IRS’ instructions.  The IRC requires that the employer deduct a certain amount of the employee’s pay and More…

Aug 012012
 
Winning Big At The Olympics Could Cost Some Serious Tax Dollars

According to an analysis done by American For Tax Reform, the cost of winning a medal at the 2012 London Olympics is not simply measured in blood, sweat, and tears, there are some serious tax consequences as well. Under the Internal Revenue Code, the American Olympians must count the value of the actual medals, as well as the cash prize they receive from the government for winning those medals, as taxable income.  At today’s commodity prices, the value of a gold medal is about $675, while a silver medal is worth about $385 and a bronze medal is worth about More…

Jul 022012
 
New Taxes In The Healthcare Law

Now that the United States Supreme Court has ruled on the constitutionality of the Patient Protection and Affordable Care Act (“PPACA”), President Obama’s signature healthcare legislation, we will all have to become more familiar with the taxing provisions contained within the bill.  Beyond the individual mandate, which now has the dubious distinction of being perhaps the most famous “tax” imposed by the PPACA, there are numerous other revenue-raising provisions found within the law’s hundreds of pages of statutes, rules, and regulations. The vast majority of the PPACA’s revenue raising potential will come from just a few of the many tax More…

Dec 232011
 
New Form 1099 Rules For 2012

The IRS will implement new rules in 2012 that will likely affect most businesses.  Changes have been made to the reporting rules for IRS form 1099, the form used to report various types of income other than wages, salaries, and tips (for which Form W-2 is used instead).  This form generally applies to independent contractors and business suppliers, and does not affect those who are full-time employees. The new regulations will require the issuance of 1099 forms for nearly all payments over $600 to a business’ suppliers, not just those payments made to independent contractors.  This includes items like commissions, More…

Nov 292011
 
End Of The Year Tax Planning - Set Up A Small Business Retirement Plan

Many small-business owners believe that their company will provide all that is necessary for a comfortable retirement.  As their golden years approach, they eagerly anticipate selling their creation and living off the proceeds.  Unfortunately, business owners who rely on the sale of their businesses for retirement income may ultimately be disappointed.  This is because, as the current recession has highlighted, not all businesses will stand the test of time and those that do may not be sold at a profit.  Small business owners who have no backup plan may find themselves at retirement age with nothing to live on. This More…

Nov 112011
 
Florida Employers Could See Major Unemployment Tax Hike

If the Florida legislature fails to act soon, Florida business owners could see a significant increase in their unemployment tax bill.  Business owners will see their bill go up to $172 starting Jan. 1, 2012 as the state continues to feel the effects of a lingering recession, sluggish payroll growth and double digit unemployment.  While certainly disturbing, the tax hike is not altogether unexpected, because it was supposed to occur two years ago.  Employers were initially bracing for a large tax hike in 2010, but state legislators decided to stall the increase in the hopes that the economy would recover. More…

Oct 242011
 
IRS To Require Accounting Software Data Files

The IRS has recently announced its intent to seek data records maintained by small businesses that utilize accounting software programs, such as QuickBooks or Peachtree, when the business is the subject of an audit.  IRS examiners will be requesting these files in the majority of cases where the taxpayer already uses electronic accounting software to maintain its books and records.  The IRS will not accept reports exported to Excel, “condensed” data, or any other data submission other than the accounting software’s backup file, which provides an exact copy of the original books of entry as well as a record on More…

Oct 052011
 
IRS Rules Against Medical Marijuana Dispensaries

The IRS has ruled that dispensaries of medicinal marijuana cannot deduct standard business expenses such as payroll, security, or rent.  In a ruling against Harborside Health Center of Oakland California, one of the nation’s largest medical marijuana dispensaries and one that is considered a model for the industry, the IRS held that the company owed $2.5 million in back taxes for the years 2007 and 2008. The basis for the IRS ruling was Section 280E of the Internal Revenue Code, which was originally enacted to target drug kingpins and cartels, and bans any tax deductions related to “trafficking in controlled More…