According to USA Today, in 2012, self-employed workers, small businesses, charities and government agencies will be required to issue Form 1099s to every vendor from which they purchase more than $600 in goods during the year. The IRS national taxpayer advocate said that a little-known provision in the health care reform law could significantly increase tax record keeping requirements and costs.
Currently, businesses are required to provide Form 1099s for services, but not for goods. With this new rule, for example, a self-employed consultant who buys a $700 computer from an office supply store would be required to send a Form 1099 to the store and the IRS.

To read more about this click here.

The information contained in this blog is not intended to be tax advice, is of a general nature, and is based on authorities that are subject to change. Application to your specific situation should be determined in consultation with your tax advisor. IRS Circular 230 Disclosure: Any tax advice in this communication is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties that may be imposed on any taxpayer or (ii) promoting, marketing or recommending to another party any matters addressed herein.

Accounting Web gives us a thorough overview of IRS Trust Fund investigations relating to the use of payroll tax money as operating capital, which is a breach of the government's trust. As the article notes, "The failure to remit payroll taxes is a cardinal sin in the eyes of the IRS."

It behooves anyone who comes into contact with such procedures to be aware of the law and its consequences, as even those who are acting ethically may fall under suspicion if such a case arises, Accounting Web notes. And should you be wrongly suspected, you will need to be aware of the likely questions you will face.

Of course, we recommend proper management steps to avoid such problems ever arising. If you have a question about payroll tax management, please contact today.

The information contained in this blog is not intended to be tax advice, is of a general nature, and is based on authorities that are subject to change. Application to your specific situation should be determined in consultation with your tax advisor. IRS Circular 230 Disclosure: Any tax advice in this communication is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties that may be imposed on any taxpayer or (ii) promoting, marketing or recommending to another party any matters addressed herein.

If you've been considering a charitable donation to the Chilean relief effort, the U.S. government wants to give you an extra incentive to do so now.

As WebCPA reports, a bill passed unanimously by the House would allow donations made before April 15, 2010, to be deducted on 2009 tax returns. The bill is H.R. 4783.

Similar measures were passed for the disasters in Haiti after its earthquake and the South Pacific region after a devastating tsunami.

These changes show that this year will be exceptionally challenging with so many new and modified tax credits and deductions, the reason you want to trust your return to our highly experienced Tax Services team.

The information contained in this blog is not intended to be tax advice, is of a general nature, and is based on authorities that are subject to change. Application to your specific situation should be determined in consultation with your tax advisor. IRS Circular 230 Disclosure: Any tax advice in this communication is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties that may be imposed on any taxpayer or (ii) promoting, marketing or recommending to another party any matters addressed herein.

According to a recent article in Accounting Today, all but five U.S. states are operating in deficits, a pressure that will almost certainly lead to state and local tax increases or changes that could affect businesses.

Locally, the City of Albuquerque is forecasting a $54.6 million budget shortfall in FY2011, and the state is wrestling with a current fiscal year gap of nearly $1 billion--close to 12 percent of the current fiscal year budget. Gov. Bill Richardson has proposed temporary tax increases totaling $200 million. He has said taxes on food could be considered. The governor also seeks in the current legislative session to expand a Renewable Energy Production Tax Credit.

Nor are our neighbors in the Southwest immune. Arizona, for instance, in the next fiscal year faces a $2.6 billion shortfall; Colorado $1.8 billion; and Utah $700 million. All of these deficits are on top of sizeable gaps in the current fiscal year.

With so many changes afoot, it's an excellent time to touch base with your financial professionals. If your company or your clients need help anticipating these changes, please contact our Tax Services team today. REDW stays abreast of all the latest news and its implications for many types of businesses across the country.

The information contained in this blog is not intended to be tax advice, is of a general nature, and is based on authorities that are subject to change. Application to your specific situation should be determined in consultation with your tax advisor. IRS Circular 230 Disclosure: Any tax advice in this communication is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties that may be imposed on any taxpayer or (ii) promoting, marketing or recommending to another party any matters addressed herein.

If you are a business taxpayer with total assets in excess of $10 million, you should be aware that the IRS is considering making changes to the rules governing how you report uncertain tax positions. IRS Commissioner Doug Shulman drew attention to these proposed changes in the prepared remarks he recently made at the New York State Bar Association Taxation Section Annual Meeting:

Finally, I want to talk about Transparency….

We have been taking a hard look at transparency regarding business tax issues. Accounting for income taxes and tax risk has changed over the past several years. Accounting for uncertain tax positions is much more articulated now than in the past. And auditing firms are conducting much more extensive reviews of materials used to make decisions on tax reserves reflected in a taxpayer’s financial statement.

Several months ago, I announced that the IRS was studying these changes and was exploring ways to improve transparency regarding material tax issues so that we can achieve the three objectives of certainty, consistency, and efficiency for us and taxpayers.

The IRS is taking a major step towards transparency that I want to announce today related to changes we are proposing to reporting requirements regarding business taxpayers’ uncertain tax positions

The Announcement we are issuing today does two things. First, it describes proposed reporting requirement at the “time-of-filing.” Second, it highlights specific areas where we are requesting public comment and thus serves to further our continuing dialogue with practitioners, business taxpayers, and others regarding how to improve tax administration and compliance regarding many of our nation’s business taxpayers.

If after reviewing the full announcement you want to explore what this may mean for you, please contact REDW's tax services team.

The information contained in this blog is not intended to be tax advice, is of a general nature, and is based on authorities that are subject to change. Application to your specific situation should be determined in consultation with your tax advisor. IRS Circular 230 Disclosure: Any tax advice in this communication is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties that may be imposed on any taxpayer or (ii) promoting, marketing or recommending to another party any matters addressed herein.