Tax News
2009 Filing Deadlines Fast Approaching
With the summer vacation season in full swing the last thing you want to think about is filing your 2009 tax return. However, the reality is that the filing deadlines are creeping ever closer!
- Corporate filing deadline is September 15.
- Personal return filing deadline is October 15.
If your 2009 return filing is not complete, please call our office to schedule an appointment to finish your return. If we have begun your return and are waiting for additional information from you, we can email a missing information report to you. The report contains a list of all information needed to complete your return. If you would like a copy of your missing info report sent to you please email us your request.
Still Waiting For 2010 Tax Law
Legislation that would renew a number of tax breaks that expired December 31,2009 is stalled in the Senate. Passage sometime this year is expected but not guaranteed. Some of the items affected include:
- College tuition deductions
- Teacher classroom expense deduction
- State sales tax deduction option
- Extra standard deduction for property tax payments
- Tax-free IRA pay-outs to charity
Also, AMT exemption amounts have reverted to pre-2001 levels. This would mean that millions of additional taxpayers could find themselves subject to Alternative Minimum Tax. A bill raising the exemption amounts is expected to pass this year — but probably not until after the fall elections.
Bush Tax Cuts Expire December 31
A number of tax cuts enacted during the Bush administration are scheduled to expire at the end of the year. Unless Congress acts to renew some or all of the expiring provisions, the 10 percent tax bracket would be eliminated and the top tax rate would rise from the current 35 percent to 39.6 percent. Also, the maximum tax rate on capital gains and dividends will increase from the current 15 percent to 20 percent and 39.6 percent, respectively.
Congress is expected to pass legislation that retains cuts for low and middle-income earners for an additional year. However, the top tax rate is expected to rise to 39.6 percent and maximum capital gains and dividend tax rates are likely to rise to 20 percent.
California Sales and Use Tax Enforcement Increasing
As a result of the ongoing financial crisis in California, the State Board of Equalization has increased collection and enforcement efforts. A number of our business clients have been audited by SBOE already this year and we are expecting the audit rate to increase.
It is vital that all businesses in the state be in full compliance with the sales and use tax regulations. Failure to comply will result in penalties and interest charges, in addition to any increase in sales or use tax due.
If you have questions regarding SBOE regulations or would like us to review your records to ensure that you are in compliance, please call our office to schedule a consultation.
Important Dates
- July 22 — New Business Entity Seminar — 6:30 pm
- August 15 — Due Date for Extended Non-Profit Returns
- August 26 — Retirement and Investment Planning Seminar — 6:30 pm
- September 15 — Corporate Tax Filing Deadline, Third Quarter Estimated Tax Due
- October 15 — Personal Tax Filing Deadline
Accountability News
Upcoming Free Seminars:
July 22, 2010 6:30 pm
Corporation, S-Corp or LLC? Things you need to know before decide
One of the most important and complex decisions a business owner faces is whether to remain a sole-proprietor or create a corporation, LLC or other entity. LLC's have also become attractive for landlords looking for liability protection.
The availability of online legal services has decreased the cost for setting up business entities and created the impression that the process is simple and straightforward.
Truth is, every year we see clients who have created tax and legal nightmares for themselves because they didn't fully understand the filing process or the ongoing compliance requirements.
We are presenting this seminar to help you avoid these errors and the costs associated with them. Topics we will discuss include:
- Are you a good candidate?
- Which type best serves your needs?
- Cost vs. benefits
- Impact of recent S-corp changes
- Filing: When, Where How?
- Tax and liability advantages
- Compliance requirements
- How not to lose liability protection
Interested in attending? Email us to reserve your seat.
August 26, 6:30 pm
Estate, Retirement and Investment Planning
Preparing for a financially secure retirement has never been simple. With the recent turmoil in financial markets and ever-changing tax laws, retirement planning has become even more complex. Add in the uncertain future of Social Security and proper planning becomes even more essential.
- What happens to my 401K when I change jobs?
- How to properly roll-over a retirement account
- Tax consequences of premature withdrawals
- Asset allocation-Make sure your investments are appropriate for your retirement goals.
- Roth vs. Conventional IRA's
- Roth IRA Conversions
- Estate planning and Living Trusts
Guest speaker: Jamie Harwood, Investment Advisor, Edward Jones Investments.
All seminars are open to the public and presented at no charge. However, seating is limited. If you or a friend are interested in attending, please email us early to reserve your seat.
— Karen Spencer
President