2011 Filing Season Trending Higher in Return Processing and Refunds
April 18, 2011 (the deadline for filing 2010 federal income tax returns) marks the official end for the 2011 filing season. According to the IRS, this year's filing season has moved along with few problems. Statistics show that return filings of all Form 1040s for individual taxpayers are trending at a slightly higher pace from this time last year...

Estimated Tax: Getting It Right
Estimated tax is used to pay tax on income that is not subject to withholding or if not enough tax is being withheld from a person's salary, pension or other income. Income not subject to withholding can include dividends, capital gains, prizes, awards, interest, self-employment income, and alimony, among other income items...

IRS Issues 2011 Vehicle Depreciation Dollar Limits
The IRS has issued the limitations on depreciation deductions for owners of passenger automobiles, trucks and vans first "placed in service" (i.e. used) during the 2011 calendar year. The IRS also provided revised tables of depreciation limits for vehicles first placed in service (or first leased by a taxpayer) during 2010 and to which bonus depreciation applies...

How Do I? Make an In-plan Roth IRA Rollover?
In-plan Roth IRA rollovers are a relatively new creation, and as a result many individuals are not aware of the rules. The Small Business Jobs Act of 2010 made it possible for participants in 401(k) plans and 403(b) plans to roll over eligible distributions made after September 27, 2010 from such accounts, or other non-Roth accounts, into a designated Roth IRA in the same plan...

FAQ: What are My Chances of Being Audited?
Often, timing is everything or so the adage goes. From medicine to sports and cooking, timing can make all the difference in the outcome. What about with taxes? What are your chances of being audited? Does timing play a factor in raising or decreasing your risk of being audited by the IRS? For example, does the time when you file your income tax return affect the IRS's decision to audit you...

April 2011 Tax Compliance Calendar
As an individual or business, it is your responsibility to be aware of and to meet your tax filing/reporting deadlines. This calendar summarizes important tax reporting and filing data for individuals, businesses and other taxpayers for the month of April 2011...

S Corp's Associates/Clerks Were Employees, Not Independent Contractors
Despite flexible pay and work arrangements, the Tax Court has found that the president, associate attorneys and law clerk of an S corporation doing business as a law firm were employees and not independent contractors for tax purposes (Donald G. Cave A Professional Law Corp., TC Memo. 2011-48)...

IRS Revises Collection Financial Standards
The IRS has posted updated collection financial standards for use in calculating repayment of delinquent taxes on its web site. These national standards apply to food, clothing, health care and certain other expenses. Local standards apply to housing, utilities and transportation costs...

IRS Reports Delays in Processing Repayments of the First-time Homebuyer Credit
The IRS reported the agency is aware of certain processing delays affecting some taxpayers who must repay the first-time homebuyer tax credit. The repayment requirement generally affects qualified taxpayers who purchased a principal residence in 2008...

Senate Grapples with Repeal of Controversial Form 1099 Reporting
Momentum to repeal the controversial Form 1099 expanded business information reporting has slowed as the Senate debates how to pay for removal of the recently-enacted provision. The Senate recessed on March 18 for a one-week break with lawmakers still divided over offsets. There are two controversial reporting requirements that most business leaders want to see removed...

IRS Finalizes Form 1099-K for Merchant Card and Third Party Network Payment
The IRS recently released Form 1099-K, Merchant Card and Third Party Payments, and Instructions, as part of the new reporting requirements for payment card and third party network transactions. The first information return covering calendar year 2011 must be filed with the IRS in early 2012...

PA - Newsletter Discusses Budget Proposal, Bonus Depreciation
The Pennsylvania Department of Revenue has issued a Tax Update bulletin discussing, among other items, Gov. Tom Corbett's budget proposal, conformity to bonus depreciation, electronic income tax filing systems, and property tax/rent rebate program applications...

Tax Alerts March 2011

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