Small nonprofit organizations at risk of losing their tax-exempt status because they failed to file required returns for 2007, 2008 and 2009 can preserve their status by filing returns by Oct. 15, 2010, under a one-time relief program.
The relief announced is not available to larger organizations required to file the Form 990 or to private foundations that file the Form 990-PF.
Tuesday, July 27, 2010
Friday, July 23, 2010
Fees for Preparer Tax Identification Numbers
IRS released proposed regulations that would establish a fee for individuals who apply for a preparer tax identification number (PTIN).
The proposed regulations (REG-139343-08) would establish a fee of $50, payable to the IRS, to cover technology costs, as well as compliance and outreach efforts associated with the new PTIN program. The proposed regulations would also provide for an additional fee (expected to be substantially lower than $50) to be charged by the third-party vendor chosen to operate the new online system. That fee amount is expected to be announced soon, as well as additional details about the launch of a new online application system. These fees could change in future years as program costs are reevaluated.
Click the link to find more details on Oversight of Federal tax return preparation
The proposed regulations (REG-139343-08) would establish a fee of $50, payable to the IRS, to cover technology costs, as well as compliance and outreach efforts associated with the new PTIN program. The proposed regulations would also provide for an additional fee (expected to be substantially lower than $50) to be charged by the third-party vendor chosen to operate the new online system. That fee amount is expected to be announced soon, as well as additional details about the launch of a new online application system. These fees could change in future years as program costs are reevaluated.
Click the link to find more details on Oversight of Federal tax return preparation
Wednesday, July 21, 2010
Estate tax to return in 2011
Estate tax is repealed for the tax year 2010. So everyone inheriting in 2010 can look forward to a hefty inheritance due to a big estate tax saving.
Good things don't last long and speculations are on that federal estate tax will come back. Only fact unknown is what will be the exemption amount.
Many believe that the the Federal estate tax is scheduled to return on Jan. 1, 2011, imposing a levy of up to 55% on estates valued at more than $1 million. However, a $1 million exemption would affect a lot of families considering the fact that cost of living and property values have gone up from what it was 8 to 10 years ago.
Considering the current economic conditions it seems reasonable to enact the estate tax to its 2009 level, with a $3.5 million exemption and a 45% rate on assets that exceed that amount, But, whether it will be approved at this level is what the future will tell....
Good things don't last long and speculations are on that federal estate tax will come back. Only fact unknown is what will be the exemption amount.
Many believe that the the Federal estate tax is scheduled to return on Jan. 1, 2011, imposing a levy of up to 55% on estates valued at more than $1 million. However, a $1 million exemption would affect a lot of families considering the fact that cost of living and property values have gone up from what it was 8 to 10 years ago.
Considering the current economic conditions it seems reasonable to enact the estate tax to its 2009 level, with a $3.5 million exemption and a 45% rate on assets that exceed that amount, But, whether it will be approved at this level is what the future will tell....
Small Business Health Care Tax Credit
Small businesses can avail of the health care tax credit beginning 2010.
Eligibility.
To be eligible for the tax credit-
• A qualifying employer must cover at least 50 percent of the cost of health care coverage for some of its workers based on the single rate.
• A qualifying employer must have less than the equivalent of 25 full-time workers (for example, an employer with fewer than 50 half-time workers may be eligible).
• A qualifying employer must pay average annual wages below $50,000.
• Both taxable (for profit) and tax-exempt firms qualify.
Maximum Amount.
The credit is worth up to 35 percent of a small business' premium costs in 2010. On Jan. 1, 2014, this rate increases to 50 percent (35 percent for tax-exempt employers).
Phase-out.
The credit phases out gradually for firms with average wages between $25,000 and $50,000 and for firms with the equivalent of between 10 and 25 full-time workers.
Eligibility.
To be eligible for the tax credit-
• A qualifying employer must cover at least 50 percent of the cost of health care coverage for some of its workers based on the single rate.
• A qualifying employer must have less than the equivalent of 25 full-time workers (for example, an employer with fewer than 50 half-time workers may be eligible).
• A qualifying employer must pay average annual wages below $50,000.
• Both taxable (for profit) and tax-exempt firms qualify.
Maximum Amount.
The credit is worth up to 35 percent of a small business' premium costs in 2010. On Jan. 1, 2014, this rate increases to 50 percent (35 percent for tax-exempt employers).
Phase-out.
The credit phases out gradually for firms with average wages between $25,000 and $50,000 and for firms with the equivalent of between 10 and 25 full-time workers.
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