Tax Increases Coming Whether Fiscal Cliff Is Averted or Not

From the Wall Street Journal: By Sudeep Reddy Neither the Obama administration nor congressional Republicans want to increase taxes on everyone, but most workers are likely to see lower take-home pay in 2013, eating away at economic growth. The White House, in its latest offer Monday to resolve the fiscal cliff, made a key concession that would be felt by every U.S. wage earner: allowing the expiration of the payroll tax cut, a provision that has lowered the workers’ share of Social Security taxes by two percentage points for the past two years. That translates into an average tax increase of about $1,000 ...

The payroll tax cut that boosted paychecks for millions of working Americans over the past two years may be on the brink of extinction.

From CNN Money: As Republicans and Democrats search for a plan to avert a fiscal cliff, it's looking more likely that the payroll tax holiday introduced under President Obama in 2010 won't be extended. Should this benefit expire, 125 million households would see their paychecks shrink, the Tax Policy Center estimates. Fiscal cliff quiz: How much will taxes go up? That's a far bigger slice of the population than the group of Americans who would be affected by proposed income tax hikes. If taxes are raised on incomes exceeding $250,000, roughly 2.8 million households would be impacted. Meanwhile, a mere 368,000 Americans would ...

IRS Warns Congress Tax Season Might Be Delayed until March or Later without AMT Patch

IRS Warns Congress Tax Season Might Be Delayed until March or Later without AMT Patch From Accounting Today Washington, D.C. (December 19, 2012) By Michael Cohn IRS Acting Commissioner Steven T. Miller warned Congress on Wednesday that if lawmakers fail to extend the traditional alternative minimum tax patch, up to 100 million American taxpayers could be affected, and most taxpayers might not be able to file their tax returns until late March 2013 or later. Steven T. Miller Miller sent a letter to leaders of the House Ways and Means Committee warning of the trouble ahead. He has warned Congress in the past about not patching ...

White House, nonprofit groups battle over charitable deductions

From the Washington Post: By Jerry Markon and Peter Wallsten, Thursday, December 13, 11:06 AM The White House and the nation’s most prominent charities are embroiled in a tense, behind-the-scenes debate over President Obama’s push to scale back the nearly century-old tax deduction on donations that the charities say is crucial for their financial health. In a series of recent meetings and calls, top White House aides have pressed nonprofit groups to line up behind the president’s plan for reducing the federal deficit and averting the year-end “fiscal cliff,” according to people familiar with the talks. In part, the White House is seeking to win the ...

Fiscal Cliff Negiotiations Seek to Expand the Embrace of the Alternative Minimum Tax

Last year some of our clients asked us why they were subject to the Alternative Minimum Tax when they didn't really make all that much. Unfortunately it's not the "rich" person's tax anymore. From CNBC: One of the key questions lurking in the "fiscal cliff" talks — though well below the public's radar — is what happens to the alternative minimum tax, or AMT. Diane Macdonald | Stockbyte | Getty Images Implemented in 1969 to make sure upper-income Americans pay their share of taxes, the AMT has increasingly snared more middle-income Americans over the years because it was never indexed for inflation. During the 2011 ...

401K’s Tax Exempt Status On the Table In Fiscal Cliff Negotiations

In what might be described as the biggest tax reform package since 1986 the government is considering limiting the tax benefits of ERISA programs such as the 401K. From CNBC: As the debate around tax reform grows more heated, broker-dealers and other companies that service retirement plans offered by employers are increasingly concerned that the tax benefits of 401(k) plans are on the chopping block. An industry group that normally works behind the scenes, the American Society of Pension Professionals and Actuaries, on Monday launched a media campaign intended to educate U.S. employers and workers that the federal government might consider changing the ...

What End of Bush Tax Cuts Would Mean for You

From Smart Money: Bischoff: Unless Congress takes action, it's not just the "rich" who will see higher tax bills. By BILL BISCHOFF The so-called Bush tax cuts are scheduled to expire at the end of this year. While you may already know that, you may not fully understand what's in store for you and your family. Here's what to expect. Higher Tax Rates for All You may think only individuals in the top two brackets will face higher federal income taxes if the Bush cuts go bye-bye as scheduled on Jan. 1, 2013. Not true. Unless Congress takes action and the president goes along (whoever ...

Tax Services Overview and Projected Tax Regulations

We provide full tax services for all forms in all states. We are licensed to file all federal and state personal and business income tax returns, sales tax returns, federal and state payroll and unemployment tax returns, and excise and specialty tax returns such as the condominium association 1120HA. We believe the tax reporting requirements for all businesses on all levels (municipal, state, and federal) will grow more complicated at an exponential rate. If you don't have an expert managing your tax reporting it may cost you.

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Tax Increases Coming Whether Fiscal Cliff Is Averted or Not

The payroll tax cut that boosted paychecks for millions of working Americans over the past two years may be on the brink of extinction.

From CNN Money: As Republicans and Democrats search for a plan to avert a fiscal cliff, it’s looking more likely that the payroll tax holiday introduced under President Obama in 2010 won’t...

IRS Warns Congress Tax Season Might Be Delayed until March or Later without AMT Patch

IRS Warns Congress Tax Season Might Be Delayed until March or Later without AMT Patch From Accounting Today Washington, D.C. (December 19, 2012) By Michael Cohn IRS Acting Commissioner Steven...

White House, nonprofit groups battle over charitable deductions

Fiscal Cliff Negiotiations Seek to Expand the Embrace of the Alternative Minimum Tax

Last year some of our clients asked us why they were subject to the Alternative Minimum Tax when they didn’t really make all that much. Unfortunately it’s not the “rich” person’s...

401K’s Tax Exempt Status On the Table In Fiscal Cliff Negotiations

In what might be described as the biggest tax reform package since 1986 the government is considering limiting the tax benefits of ERISA programs such as the 401K. From CNBC: As...

What End of Bush Tax Cuts Would Mean for You

From Smart Money: Bischoff: Unless Congress takes action, it’s not just the “rich” who will see higher tax bills. By BILL BISCHOFF The so-called Bush tax cuts are scheduled to...

Tax Services Overview and Projected Tax Regulations

We Can Provide Full Management Consulting for Your Business

We know your business. We know your financials. We can get you to the next level by listening to you and connecting you with customers and resources. We can make you look bigger than you may be. We can...

2012 W-2 Box 12 Code DD: Are They Trying to Subject Employer Paid Health Insurance Premiums to Income Taxes ?

New requirements for 2012 W-22012 W2 reporting include employer paid health insurance premiums. With a several trillion dollar deficit I am wondering if they would see healthcare benefits as potential...

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