Supreme Court Upholds Health Care Law's Individual Mandate Penalty
The Supreme Court, in a 5 to 4 decision, has upheld the Patient Protection and Affordable Care Act of 2010, as amended by the Health Care and Education Reconciliation Act of 2010, the provisions together comprise the Obama health care laws. The landmark decision, handed down on June 28, focused on a key provision of the law - the "individual mandate" - and affirmed...

Summer Brings Likely Slowdown in Progress of Tax Legislation in Congress
As summer arrives in Washington, so does the usual slowdown in legislative activity and 2012 appears to be no exception. Lawmakers have a full plate of tax-related bills on their agenda but progress is slow at best as both parties prepare for the November elections...

Maximizing the Benefits of Dependency Tax Status Not Always Straightforward
The dependency exemption is a valuable deduction that may be lost in many situations simply because some basic rules for qualification are not followed. Classifying someone as a dependent can also entitle you to other significant deductions or credits. Here is a rundown of some of the rules and their implications...

How Do I - Make Matching Contributions to a SIMPLE IRA Plan?
A SIMPLE (Savings Incentive Match Plan for Employees of Small Employers) IRA is a retirement savings plan designed specifically for small employers. A SIMPLE IRA is an IRA-based plan with ease of use features intended to encourage small employers, which may otherwise not offer a retirement plan, to create a retirement plan...

FAQ - Has IRS Fresh Start Penalty Relief Expired?
Yes, penalty relief under the IRS Fresh Start initiative was a one-time offer, which required individuals to file Form 1127-A, Application for Extension of Time for Payment of Income Tax for 2011 Due to Undue Hardship, by April 17, 2012...

July 2012 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 July 2012...

Supreme Court Hands Down Landmark Health Care Decision - Now What?
On June 28, the U.S. Supreme Court issued its long-awaited landmark decision on the Patient Protection and Affordable Care Act (PPACA) and its companion law, the Health Care and Education Reconciliation Act (HCERA). In a 5 to 4 decision of historic proportions, the nation's highest court upheld the law - except for a certain Medicaid provision involving state funding...

IRS Oversight Board Gives IRS Mixed Reviews in Latest Annual Report
The IRS Oversight Board delivered its "Annual Report to Congress 2011" on June 5, 2012, as required by law. The latest report highlighted the drop in the IRS's level of service by the IRS toll-free telephone assistors, the continued trend of focusing examination resources on higher income taxpayers, and serious concerns about the effect that IRS budget cuts will have on the agency's...

IRS Will Consider Student Loans / State Taxes into Ability-to-Pay Analysis
The IRS has released guidance that clarifies and revises its procedures under which agents analyze a taxpayer's ability to pay its tax liability. The guidance now instructs agents to consider payments on student loans and delinquent state and local income tax liabilities when determining whether a taxpayer is able to pay what it owes to the government...

Estate Tax Regulations Provide for Portability
Legislation enacted in 2010 provided an important estate tax benefit to married couples where the one spouse dies after December 31, 2010 and before January 1, 2013 and is survived by the other spouse. This benefit is known as portability...

Only Bona Fide Shareholder Loans Can Create S Corp Basis
The IRS has issued new regulations that address when S Corp shareholders may increase their adjusted basis because of "indebtedness" of the S corp to them. The shareholder may increase the adjusted basis only if the indebtedness is bona fide. The new rules that elaborate on this basis principle are intended to assist S corp shareholders in determining whether their arrangement...

Tax Alerts - June 2012

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