Tax Audit Red Flags
April 1, 2013
by Michael W. Blitstein, CPA
The IRS audits only slightly more than 1% of all individual tax returns annually. So why do they pick some returns to investigate and ignore others? Although there’s no sure way to avoid an IRS audit, you should be aware of the following red flags that could increase your chances of drawing unwanted attention from the IRS.
You Have Foreign Assets…
Stashing money overseas? Then you’re probably well aware that the IRS has been ramping up its efforts to rein in offshore accounts. Launched in 2009, the agency’s voluntary disclosure program has already raked in more than $5 billion in back taxes, interest and penalties for illegally hiding assets in offshore accounts.
Taxpayers are asked to check a box on Schedule B if they have an ownership interest in foreign accounts. If they then fail to provide information about those assets, it will undoubtedly trigger an audit.
Indicating on your return that you do business in foreign countries or take many trips abroad for work could also raise eyebrows if no foreign assets are reported.
Your Return Has Too Many Zeroes…
While rounding numbers on your tax return to the nearest dollar is okay, rounding to the nearest thousand is not – especially when itemizing deductions like business expenses, unreimbursed employee expenses and job hunting costs. If you submit figures like $5,000 in auto costs, $2,000 in gas mileage and $4,000 in lodging, it may look like you pulled those numbers out of thin air or inflated them by rounding – since it’s unlikely that every single expense was a perfect multiple of $1,000.
You Have a Home Office…
Just because you do some work on your couch while watching TV doesn’t mean it counts as a home office.
After years of watching people abuse the home office deduction, the IRS is on the look out. In order to avoid being scrutinized, make sure you only claim reasonable expenses – and only those that directly apply to the part of the home used as an office. Remember, the credit can only be claimed if the home office is your primary place of business and is used exclusively for work. People get into trouble when the IRS suspects they are mixing personal costs with their business costs.
You Forgot Some Income…
For people who earn money from various places, remembering to report every single cent can be difficult. But ‘I forgot’ isn’t a good enough excuse for the IRS. For any miscellaneous income over $600 you received throughout the year, the company you worked for should send you a Form 1099. If you don’t receive it for some reason – it was mistakenly sent to a previous address, for instance – you can be sure that the IRS will still get it. You can either request the missing form from the employer or simply report the income without the form. This is why it helps to track your income throughout the year.
Of course, some people earn money that may not get reported on. Even if the IRS doesn’t know about it, you must report this income as well or you risk the agency finding out.
You Exaggerate Donations…
Even good deeds can spark suspicion at the IRS. If you report extremely high charitable contributions – especially relative to your income – make sure you have the proof to back it up. Receipts for cash donations of more than $250 are required in the event the IRS comes knocking. Donating items gets a little trickier, because it’s common for people to think the items are worth a lot more than someone will actually pay for them. So it’s important to be reasonable with your valuations.
You Own a Money Losing Business…
If you own a business that is reporting losses year after year, the IRS may grow suspicious that it’s actually a hobby. There’s a rule-of-thumb saying you must have a profit in two [out] of five years – if you don’t have a profit they’re going to look at it as a hobby. To fend off the IRS, make sure to keep diligent financial records and do little things like have business cards and company letterhead.
You Have a Shady Tax Preparer...
If your tax preparer tries to convince you to claim deductions that sound too good to be true or to report income that doesn’t line up with what you would have reported, watch out. You want a preparer that will get you the best refund possible – but not if it means breaking the law.
CJBS, LLC is a Chicago based firm that assists its clients with a wide range of accounting and financial issues, protecting and expanding the value of mid-size companies. E-mail me at michael@cjbs.com if you have any questions about this posting or if I may be of assistance in any way.
IRS Increases Audit Examinations
March 27, 2013
by Michael W. Blitstein, CPA
The Internal Revenue Service has stepped up its examinations in the past year of taxpayers with high adjusted gross income.
The IRS released its 2012 IRS Data Book on March 25th, providing a snapshot of agency activities for the fiscal year. The report describes activities conducted by the IRS between October 1, 2011 and September 30, 2012, and includes information about returns filed, taxes collected, enforcement, taxpayer assistance and the IRS budget and workforce, among others.
The IRS said it examined just under 1 percent of all tax returns filed and about 1 percent of all individual income tax returns during fiscal year 2012. Overall, in fiscal year 2012, individual income tax returns in higher adjusted gross income (“AGI”) classes were more likely to be examined than returns in lower AGI classes.
The IRS examined about 12.1 percent of the 337,477 tax returns reporting income of $1 million or more, compared to 2.8 percent of those reporting at least $200,000 and under $1 million, and 0.4 percent of those reporting income under $200,000 who didn’t file a Schedule C, E, F or Schedule 2106, and 1.1 percent of those with income under $200,000 and filing Schedule E or Form 2106. Of the 1.5 million individual tax returns examined, nearly 54,000 resulted in additional refunds. In addition, the IRS examined 1.6 percent of corporation income tax returns, excluding S corporation returns, in fiscal 2012.
During fiscal year 2012, the IRS collected almost $2.5 trillion in Federal revenue and processed 237 million returns, of which almost 145 million were filed electronically. Out of the 146 million individual income tax returns filed, almost 81 percent were e-filed. More than 120 million individual income tax return filers received a tax refund, which totaled almost $322.7 billion.
IRS acknowledged that one of the biggest challenges confronting the IRS today is tax refund fraud caused by identity theft. The IRS has more than doubled the number of staff dedicated to preventing refund fraud and assisting taxpayers victimized by identity theft, with more than 3,000 employees working in this area. As a result of these increased efforts, the IRS during fiscal year 2012 was able to prevent the issuance of more than 3 million fraudulent refunds worth more than $20 billion. Despite these efforts, much more work remains on identity theft as well as on overall refund fraud.
The IRS made significant progress last year on international enforcement, specifically in its efforts to combat the practice of illegally hiding assets and income in offshore accounts. They have continued a two-pronged approach: offering a voluntary disclosure program for those who want to come in and get right with the government, while at the same time pursuing tax evaders and the promoters and banks assisting them.
CJBS, LLC is a Chicago based firm that assists its clients with a wide range of accounting and financial issues, protecting and expanding the value of mid-size companies. E-mail me at michael@cjbs.com if you have any questions about this posting or if I may be of assistance in any way.
IRS Increases Standard Mileage Rate for 2013
January 7, 2013
by Michael W. Blitstein, CPA
Optional standard mileage rates for use of a vehicle will go up by 1 cent per mile for 2013. Taxpayers can use the optional standard mileage rates to calculate the deductible costs of operating an automobile.
For business use of a car, van, pickup truck, or panel truck, the 2013 rate will be 56.5 cents per mile. Driving for medical or moving purposes may be deducted at 24 cents per mile. Both rates are 1 cent higher than for 2012.
The rate for service to a charitable organization is unchanged, set by statute at 14 cents a mile.
The portion of the business standard mileage rate that is treated as depreciation will be 23 cents per mile for 2013, unchanged from 2012.
For purposes of computing the allowance under a fixed and variable rate (FAVR) plan, the maximum standard automobile cost for 2013 is $28,100 for automobiles or $29,900 for trucks and vans, increases of $100 and $600, respectively, from 2012. Under an FAVR plan, a standard amount is deemed substantiated for an employer’s reimbursement to employees for expenses they incur in driving their vehicle in performing services as an employee for the employer.
CJBS, LLC is a Chicago based firm that assists its clients with a wide range of accounting and financial issues, protecting and expanding the value of mid-size companies. E-mail me at michael@cjbs.com if you have any questions about this posting or if I may be of assistance in any way.
2013 Business Standard Mileage Rate Increases
November 30, 2012
by Michael W. Blitstein, CPA
The IRS has announced increases in both the optional business standard mileage reimbursement rate and the standard mileage rate for medical and moving expenses for 2013. All increased by one cent, to 56.5 cents and 24 cents per mile, respectively. Also showing a slight increase in 2013 is the maximum standard automobile cost that may be used in computing the allowance under a fixed and variable rate (FAVR) plan. The depreciation component of the business standard mileage rate, however, remains as it has been in 2012.
The standard mileage rate adjustment for 2013 reflects increases in maintenance and fuel costs. In recent years, the IRS made mid-year adjustments in the business and medical/moving standard mileage rates (except for the charitable rate which is set by statute) because of spikes in fuel costs. There was no mid-year adjustment in 2012.
The IRS works with an independent contractor to establish the business, medical and moving expense standard rates. The IRS and the independent contractor take into account the fixed and variable costs of operating an automobile, such as fuel costs and maintenance expenses.
The charitable mileage rate, in contrast, is set by statute at a flat 14 cents per mile without inflation adjustment each year. Congress could increase the charitable mileage rate in year-end legislation but that prospect does not seem likely at this time.
CJBS, LLC is a Chicago based firm that assists its clients with a wide range of accounting and financial issues, protecting and expanding the value of mid-size companies. E-mail me at michael@cjbs.com if you have any questions about this posting or if I may be of assistance in any way.
Tax Policies of the Major Presidential Candidates
October 30, 2012
by Michael W. Blitstein, CPA
On November 6, 2012, Americans will elect the occupant of the White House for the next four years. As President of the United States, the winner will play a major role shaping tax policy and possibly reforming the entire Tax Code. This briefing describes the tax policies of President Obama and former Governor Mitt Romney, with analysis of the potential impact of their tax positions both for the immediate future and for 2014 and beyond.
Impact
Under current law, the Bush-era tax cuts (reduced income tax rates, reduced capital gains/dividends tax rates, and much more) are scheduled to expire after December 31, 2012. Effective January 1, 2013, sequestration under the Budget Control Act of 2011 is scheduled to take effect, with the goal of reducing the Federal budget deficit by nearly $1 trillion over 10 years. In addition, after 2011, a host of so-called tax extenders expired, and after 2012, numerous additional temporary incentives are scheduled to sunset. Moreover, the 2012 payroll tax holiday, which reduced the employee-share of OASDI taxes by two percentage points, is also slated to expire after December 31, 2012. The combination of all these events has many commentators referring to 2013 as “taxmageddon” or the “fiscal cliff.”
The balance between Democrats and Republicans in the House and the Senate may also change on election day. However, whether either party acquires sufficient political capital, let alone a mandate, on taxes to address short-term issues such as sunsetting provisions and long-term issues like tax reform, remains to be seen.
Caution
Between the date of publication and election day, the positions of the candidates may change. CJBS has based this briefing on what we consider accurate, nonpartisan and unbiased information at the time of publication.
| SELECTED POSITIONS | |||
| Obama —Individual taxes | Romney – Individual taxes | ||
| 2013 rates higher for higher-income taxpayers only | 2013 rates same as 2012 for all taxpayers | ||
| Unspecified future date: lower rates for middle/lower income brackets | Unspecified future date: 20% income tax rate reduction for all taxpayers | ||
| Higher capital gains/dividend rate for higher-income taxpayers | Eliminate tax on investment income for AGI below $200,000 | ||
| $3.5 million estate tax exemption/45% rate | Abolish the estate tax | ||
| Replace AMT with “Buffett rule” | Repeal the AMT | ||
| Obama – Corporate Taxes | Romney—Corporate Taxes | ||
| Reduce maximum corporate tax rate to 28% (25% for manufacturing) | Reduce maximum corporate rate to 25% | ||
| Maintain worldwide system but with reforms | Implement territorial system of international tax | ||
| SELECTED CHANGES IN FEDERAL TAXES: 2012-2013 IF CONGRESS FAILS TO ACT | |||
| 2012 | 2013 | ||
| Top individual tax rate | 35% | 39.6% | |
| Capital Gains | 15%* | 20% | |
| Dividends | 15%* | Taxed at ordinary income rates | |
| Top estate tax rate | 35% | 55% | |
| Child tax credit | $1,000 | $500 | |
| AOTC | Up to $2,500 | Unavailable | |
| Code Sec. 179 dollar limit | $139,000** | $25,000 | |
| WOTC for veterans | Up to $9,600 | Unavailable | |
| Research tax credit | Unavailable | Unavailable | |
| Wind energy PTC | Available | Unavailable | |
| *Zero percent for taxpayers in the 10 and 15 percent brackets | |||
| **As adjusted for inflation | |||
Individuals: 2014 and Beyond
The basic goal for tax reform on the individual tax level expressed by both candidates is to broaden the tax base and lower tax rates. The candidates agree that tax reform should be revenue neutral. Each candidate also forecasts an improved economy from the savings of a simplified tax system and lower overall rates.
Businesses: 2014 and Beyond
Corporate tax reform, and business tax reform in general, has been raised by several Congressional committees and both candidates over the past year as a necessary long range step in making businesses more innovative and competitive. Based upon the multilayered considerations involved, however, concrete changes are not anticipated until 2014 or later. Specific issues include:
- Corporate Tax Rates
- International Proposals
- Other Business Reforms
Note: A more comprehensive PDF version of this brief can be seen on the CJBS website at: http://www.cjbs.com/Email/October2012/CJBS_long.pdf
CJBS, LLC is a Chicago based firm that assists its clients with a wide range of accounting and financial issues, protecting and expanding the value of mid-size companies. E-mail me at michael@cjbs.com if you have any questions about this posting or if I may be of assistance in any way.
Health Care Rebates
August 13, 2012
Michael Blitstein
- Donald J. Schaffer
by Michael Blitstein, CPA, and Donald J. Schaffer, CPA/ABV, CVA, CFF
Insurance companies have begun to issue rebates to policyholders on premiums resulting from final rules on the calculation and payment of medical loss ratio.
As a quick summary, workers are entitled to the same share of the rebate as they pay for their health insurance. If an employer pays 80 percent and the worker pays 20 percent, then the rebate should be split 80/20, respectively. The rebates may be paid back to the workers in cash or applied to reduce premiums. The workers receiving the benefit can be either the actual workers who paid the premiums in 2011 or can be those who are currently employed in 2012.
The tax treatment of the rebate or credit has lots of variables. Treatment will differ depending on whether the plan is a pre-tax or an after-tax plan. It further varies depending on whether it is paid to current employees or to 2011 employees. Finally, it may depend on whether or not the employee deducted the payment on a 2011 return.
In a pre-tax plan, the employee would have to pay income taxes and possibly, but not always, employment taxes on any rebates they receive. In an after-tax plan the employee would not have to pay tax on the rebate unless the employee deducted premiums and received a tax benefit for the deduction. The employee may not receive any money if the employer decides to use it to lower future premiums or add benefits, but the “pre-tax” employee would have an increase in taxable wages and perhaps a larger fringe benefit reduction for the amount of refund applied to premiums.
The rebates are not taxable if received from or applied to premiums in an “after tax” (unless deducted) plan, but the rebates reduce current year medical expenses for the purpose of itemized deductions if paid to the employees participating in 2011, but perhaps not if distributed based on 2012 employment. Treatment of the rebate is extremely fact specific, and is discussed in detail at: http://www.irs.gov/newsroom/article/0,,id=256167,00.html
CJBS, LLC is a Chicago based firm that assists its clients with a wide range of accounting and financial issues, protecting and expanding the value of mid-size companies. E-mail Michael Blitstein at michael@cjbs.com or Don Schaffer at numbersman@cjbs.com if you have any questions about this posting or if we may be of assistance in any way.
Payroll Tax Services – Who is Responsible to the IRS?
August 9, 2012
by Larry Goldsmith, C.P.A., J.D., C.F.F.A.
As a Forensic CPA, I often hear stories about clients or their partners, employees, or spouses who have stolen or have hidden assets. But there’s one scam which you don’t hear about very often and which should scare every business owner: what happens when your trusted payroll service fails to make your tax payments to the IRS?
Just today a small business owner confessed to me that his payroll service stole $7 million from him and other businesses. The payroll service collected tax monies from their clients, and instead of making the payments to the IRS, the owners of the service simply pocketed the money. The trusting small business owner was required to pay the IRS nearly $40,000; in effect paying the payroll tax obligation twice.
Who is responsible?
More and more we hear about trusted people and businesses stealing from their clients and associates. Violation of fiduciary responsibility inevitably escalates during periods of economic hardship, but the potential to be a victim of ‘white collar crime’ is always present. As a business owner, it is important to continually verify that employees and business partners are doing what is expected of them.
Who is responsible in the case of non-payment of payroll taxes when a payroll service has been engaged? The Internal Revenue Service regulations state quite clearly:
- The employer is ultimately responsible for the deposit of Federal tax liabilities.
- The employer is liable even if a third party payer fails to make the payroll tax deposits in a timely manner.
- It is the employer, not the payroll service, who is liable for unpaid taxes, penalties and interest.
- The employer has a duty to review their EFTPS account to verify that the third party payer actually paid the taxes.
An ounce of prevention is always worth the proverbial pound of cure. To avoid the headaches and financial distress of misplaced trust, CJBS recommends that business owners follow this Five Step Anti-Swindle procedure:
- Examine checks clearing the bank accounts monthly.
- Have someone verify payroll tax deposit credits on-line.
- Examine customer credit memos regularly.
- Examine delinquent accounts receivable.
- Spot check cash payments.
CJBS, LLC is a Chicago based firm that assists its clients with a wide range of accounting and financial issues, protecting and expanding the value of mid-size companies. E-mail me at larry@cjbs.com if you have any questions about this posting or if I may be of assistance in any way.
Illinois Small Business Jobs Creation Tax Credit Program
July 18, 2012
by Michael W. Blitstein, CPA
To help move the Illinois economy to a sustainable recovery, the Small Business Jobs Creation Tax Credit has been extended by Governor Quinn and the General Assembly with some new components.
Effective July 1, 2012, new, full-time jobs created beginning July 1, 2012 to June 30, 2016 will be eligible for tax credits. The program will either run until June 30, 2016 or it will immediately come to a close if $50 million in tax credits are issued prior to that 2016 date.
Overall, not a lot has changed from the pilot program to this extended program. Eligible businesses (and not-for-profit businesses) are still those with 50 or fewer full-time employees. Eligible jobs are those that pay at least $10/hour or $18,200/annually and the position must be sustained for one full year from the hire date.
One important thing to note: You do not have to keep the same individual in the position the entire year, but you will need to make sure the position is filled with any number of employees for at least one year from the actual hire date.
A new piece to this program is that PEO’s (Professional Employer Organizations) would be able to receive a tax credit based on their working relationship with an eligible business. If a PEO has been contracted by an eligible business to issue W-2s and make payment of withholding taxes, then they could enter their information and be eligible to receive a tax credit.
After creating one (or more) new, full-time positions that meet the eligibility requirements, employers are eligible to receive a $2,500 per job tax credit. Theoretically, this will provide an extra boost for employers, enabling them to grow their businesses in Illinois.
To register a position or to learn more about the program please visit http://www.jobstaxcredit.illinois.gov.
CJBS, LLC is a Chicago based firm that assists its clients with a wide range of accounting and financial issues, protecting and expanding the value of mid-size companies. E-mail me at michael@cjbs.com if you have any questions about this posting or if I may be of assistance in any way.
IRS Expands Its Fresh Start Initiative; Provides Penalty and Installment Payment Relief
April 16, 2012
by Michael W. Blitstein, CPA
The IRS announced enhancements to its “Fresh Start” initiative by providing higher dollar thresholds for using the streamlined application process for installment agreements and new penalty relief for qualified individuals affected by the economy in 2011. The IRS doubled the dollar threshold amount and increased the maximum term for streamlined installment agreements. Unemployed taxpayers, if they file their returns after April 17th, and the self-employed may be eligible for late payment penalty relief. The agency has updated its online materials about the Fresh Start initiative to reflect the new relief.
Fresh Start
The IRS launched its Fresh Start initiative in early 2011 to help taxpayers affected by the economic slowdown. The IRS modified its lien policies by increasing the lien-filing threshold to $10,000 from $5,000 and by creating a process in which a lien will be released if the taxpayer qualifies for a direct-debit installment agreement. Additionally, it eased and streamlined installment agreements to make them available to more small businesses. Small businesses with an outstanding tax liability balance of $25,000 or less are able to apply for an installment agreement without providing a financial statement and financial verification. Additionally, they could apply for up to 60 months to pay off their outstanding tax liability.
Installment Agreements
Effective immediately, the IRS has raised the threshold amount for using the streamlined installment agreement without having to provide a financial statement or verification from an outstanding tax liability of $25,000 or less to a balance due of $50,000 or less. The agency also increased the maximum term for streamlined installment agreements from the current 60 months to 72 months.
Taxpayers must agree to direct-debit payments. Under the Direct Debit Installment Agreement (DDIA) system, funds are automatically debited from a taxpayer’s bank account for the agreed upon installment amount.
Taxpayers should file Form 9465-F, Installment Agreement Request, but do not need to provide a financial statement, Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals, or Form 433-F, Collection Information Statement. Taxpayers seeking installment agreements exceeding $50,000 will still need to furnish a financial statement. Taxpayers must also pay down their balance due if over $50,000 to take advantage of the expanded streamlined program.
Penalty Relief
Taxpayers normally have until April 17, 2012, to file their 2011 tax returns and pay any tax due. Taxpayers requesting an extension of time to file have until October 15, 2012, to file their 2011 returns. This year, certain unemployed and self-employed taxpayers may be eligible for a six-month grace period on failure-to-pay penalties. Penalty relief is available to the following two groups of taxpayers:
- Wage earners who have been unemployed at least 30 consecutive days during 2011 or in 2012 up to the April 17th deadline for filing a Federal tax return this year.
- Self-employed individuals who experienced a 25 percent or greater reduction in business income in 2011 due to the economy.
The taxpayer’s 2011 calendar year balance must not exceed $50,000. Additionally, the taxpayer’s income must not exceed $200,000 if he or she files a joint return or $100,000 if he or she files as single or head of household.
The request for relief from the failure to pay penalty is only available for tax year 2011 and only if all taxes, interest and any other penalties are paid in full by October 15, 2012.
Generally, taxpayers who fail to pay taxes owed by the original due date are subject to a failure to pay penalty of 0.5 percent of the unpaid taxes for each month or part of a month after the due date that the taxes are not paid. The penalty can reach 25 percent of the unpaid taxes. Thus, under this program, taxpayers will have until October 15, 2012, to avoid the penalty.
The IRS is legally required to continue to charge interest at the current annual rate of three percent on the unpaid tax liability. It does not have the authority to waive statutorily imposed interest. Taxpayers should note that the failure to file penalty remains in effect at 5 percent a month with a 25 percent cap.
Offers in Compromise
The IRS also reminded taxpayers that the expanded streamline Offer in Compromise (OIC) program, one of the first Fresh Start Initiative, is still available. The streamlined OIC application is available to more taxpayers, has fewer financial document requirements, and, most importantly to struggling taxpayers, a greater flexibility and more common-sense approach to determining feasibility of collection.
CJBS, LLC is a Chicago based firm that assists its clients with a wide range of accounting and financial issues, protecting and expanding the value of mid-size companies. E-mail me at michael@cjbs.com if you have any questions about this posting or if I may be of assistance in any way.
by Michael W. Blitstein, CPA
Democrats and Republicans have begun a two week recess with lawmakers returning home to promote very different visions of tax reform. Before recessing, the House passed a Republican budget blueprint calling for individual and business rate cuts, the Ways and Means Committee approved a GOP small business tax package, and the Senate prepared to debate the so-called “Buffett Rule.” Congress also approved a short-term extension of Federal transportation excise taxes and funding.
The small employer incentive in the Senate bill appears to be a good and targeted expansion of the employer credit in the HIRE Act, Adam Lambert, CPA, managing director, Employment Tax Services, Grant Thornton, LLP, New York, told CCH: “The proposed credit has less limitations and hurdles for small businesses to jump.”
GOP budget
The House voted to approve the GOP budget blueprint on March 29th. The GOP budget proposes to cut the corporate tax rate to 25 percent, reduce the individual tax rates to 10 and 25 percent and eliminate unspecified tax preferences.
Senator Rob Portman, R-Ohio, recently said that he is developing a bipartisan legislative proposal to overhaul corporate taxation and reduce the U.S. corporate tax rate to 25 percent. Portman said his proposal would be revenue-neutral by reducing tax preferences.
Buffett Rule
Democratic leaders have indicated that the Senate will vote on the Buffett Rule after the two week recess. The vote is expected to be on April 16th on the Paying a Fair Share Act, which would subject taxpayers earning over $2 million to a 30 percent minimum federal tax rate. The tax would be phased-in for taxpayers with incomes between $1 million and $2 million.
Small Businesses
On March 28th, the Ways and Means Committee approved the Small Business Tax Cut Act along party lines. The GOP bill would allow a deduction for 20 percent of qualified domestic business income of the taxpayer for the tax year, or taxable income for the tax year, whichever is less. However, a taxpayer’s deduction for any tax year could not exceed 50 percent of certain W-2 wages of the qualified small business.
In the Senate, the Democratic bill would provide a 10 percent income tax credit on new payroll (through either hiring or increased wages) added in 2012. The maximum increase in eligible wages would be capped at $5 million per employer and the amount of the credit would be capped at $500,000. The bill would also extend 100 percent bonus depreciation through the end of 2012.
Transportation
Before recessing, the House and Senate approved an extension of Federal transportation excise taxes and funding, which President Obama signed on March 30th. The extension was necessary because Congress failed to pass a comprehensive transportation bill before the expiration of transportation tax authority and funding.
The Senate-passed transportation bill has become bogged down in the House. Some House members are opposed to its non-transportation tax provisions
CJBS, LLC is a Chicago based firm that assists its clients with a wide range of accounting and financial issues, protecting and expanding the value of mid-size companies. E-mail me at michael@cjbs.com if you have any questions about this posting or if I may be of assistance in any way.
