2011 Year-end Tax Planning for Individuals in a Changing Landscape
2011 year end tax planning for individuals lacks some of the drama of recent years but can be no less rewarding.  Last year, individual taxpayers were facing looming tax increases as the calendar changed from 2010 to 2011; particularly, increased tax rates on wages, interest and other ordinary income, and higher rates on long-term capital gains and qualified dividends. more

2011 Year-end Tax Planning for Businesses - Bonus Depreciation, Expensing and More Available
Many tax benefits for business will either expire at the end of 2011 or become less valuable after 2011. Two of the most important benefits are bonus depreciation and Code Sec. 179 expensing. Both apply to investments in tangible property that can be depreciated. Other sunsetting opportunities might also be considered. more

Washington Debates Raising Taxes on Higher-income Taxpayers to Cut Deficit, Fund Jobs Program
Autumn 2011 in Washington, D.C. is expected to be a season of contentious debates over tax reform, and at the heart of the debate is the amount of taxes paid by higher-income individuals. President Obama wants Congress to raise taxes on higher-income individuals to help reduce the federal government's budget deficit and to pay for a jobs program. Many lawmakers, especially Republicans, are opposed to any tax increases. The two sides appear far apart but the need to cut the nation's deficit could encourage compromise. more

How Do I - Compute a “Substantial Equal Periodic Payment”
Taxpayers who wish to withdraw funds from a retirement account such as an IRA before they reach the age of 59 and a half, can do so without their distributions becoming subject to the additional 10 percent tax. One option is to have their distributions made in substantially equal periodic payments, as outlined in Sec. 72(t) of the IRC. Taxpayers can use one of three methods to calculate these substantially equal payments. more

FAQ - Are Social Security Survivor Benefits Received by Children Taxable Income?
When an individual dies, certain family members may be eligible for Social Security benefits. In certain cases, the recipient of Social Security survivor benefits may incur a tax liability. more

October 2011 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 September 2011. more

IRS Won’t Tax Personal Use of Employer-provided Cell Phones
The IRS has announced in its recent Notice 2011-72, that it will not tax employees' personal use of their employer-provided cell phones. In other words, all usage is nontaxable as long as the employer provided the phone primarily for noncompensatory business reasons. Likewise, employer reimbursements to their employees for using personal cell phones for business are non-taxable. more

Offshore Disclosure Initiatives Show IRS Progress on International Tax Evasion
The IRS's 2011 Voluntary Disclosure Initiative has made more in-roads to combating international tax evasion, securing 12,000 disclosures this year. The IRS has received 30,000 voluntary disclosures since it launched its first disclosure program in 2009 and collected a total of $2.7 billion. more

New IRS Lien Processes Favor Taxpayers
On August 31, 2011 an IRS webinar on the Fresh Start Initiative discussed revised lien processes intended to help individual taxpayers remain in compliance despite economic hardships. The new processes increase the threshold at which the IRS will file a lien against a delinquent taxpayer's funds from $5,000 to $10,000. more

IRS Announces Voluntary Classification Settlement Program for Employers
The IRS has announced a new program to bring employers that have misclassified employees as independent contractors into compliance. The Voluntary Classification Settlement Program (VCSP) offers a reduced penalty framework and audit protection exchange for employers voluntarily reclassifying their workers for federal employment tax purposes. more

2012 Inflation-adjusted Rate Brackets and Other Tax Amounts Projected
For over two decades, the Tax Code has required that federal income tax brackets and certain other figures be adjusted for inflation annually. CCH, a Wolters Kluwer business, has projected several key projected inflation-adjusted tax amounts for the 2012 tax year based on the relevant inflation data just released by the U.S. Department of Labor (DOL). more

To ensure compliance with requirements imposed by the IRS, please note, any advice contained in this publication was not intended, or written, to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein. This publication is distributed with the understanding that the publisher and distributor are not providing legal, accounting or other professional advice and assume no liability whatsoever in conjunction with the information contained within this publication.