It seems there is no rest for our hero Super Tax Preparer. Fresh from exploits with business tax changes, Federal payroll changes and business retirement plans, “Super” rolls up her sleeves and dons her cape emblazoned with her IRS-issued PTIN, to do battle with the onslaught of recent changes in the realms of corporate tax, partnerships, and audit issues.

New! HIRE Act provides a payroll tax credit for keeping HIRE workers for 52 weeks. What if a worker left voluntarily in week 51? What if an employer paid a worker less in the second 26 weeks than in the first 26 weeks? Does the employer still qualify for the $1,000 credit in 2011?

New! IRS introduces amnesty program for employers who’ve misclassified employees as independent contractors.
New! National Research Project (NRP) audits begin for employment tax returns—and they’ll be vigorous! The IRS wants know whom to audit and what issues to focus on.
New! Employee and self employed Social Security rate is decreased for 2011.

New! The built-in gains (BIG) recognition period for S Corporations is temporarily reduced to 5 years. Will a company that elected S corporation status effective June 1, 2006 have to pay any BIG tax on assets sold in 2011?

New! Percentage exclusion of gain for qualified small business stock purchase is increased. What percentage of gain can a noncorporate taxpayer exclude from income on the sale of small business stock issued on October 11, 2010? That depends on the gross assets of the small business and the length of time that the taxpayer holds the stock.

New! Form 1099 Reporting Requirements for Payments to Corporations are repealed.
New! Form 1099-K Credit Card Income must be reported on a separate line from cash and checks.
New! IRS wins first case on S Corporation More Reasonable Compensation
New! Registration is required of all tax return preparers in your office. Not just those who sign returns.
New! IRS can’t interview our clients after POA is signed; four IRS agents reprimanded.
New! Economic Substance Doctrine kills tax shelters. Be very careful.
New! IRS clarifies reasons for demanding QuickBooks (and other accounting software) files.
New! Reporting requirements required by Health Bill.
New! IRS eases collection practices.
New! Signed consent before releasing any tax info to third parties.

Ready to conquer these Federal Tax Updates, “Super” strides confidently into current Tax Season. And we wish you safe travels into yours!

Advertisements