Archives for January 2013

IRS ANNOUNCES HOME OFFICE SAFE HARBOR

January 29, 2013 by Frank

The IRS announced (Rev. Proc. 2013-13) a safe harbor method that individual taxpayers have the option of using to determine the amount of deductible expenses attributable to certain business use of a personal residence. The safe harbor method is effective for taxable years beginning in 2013. The IRS has stated that the current computation of the home office deduction is complex and is hoping that the safe harbor method will reduce taxpayer compliance.

The requirements that the taxpayer must use the home office exclusively and on a regular basis as the taxpayer’s principal place of business or as a place to meet with the taxpayer’s patients/customers/clients remain unchanged. Likewise, if an employee deducts a home office expense, the IRS requirement that the home office is required by the employer for the convenience of the employer remains a requirement.

The taxpayer computes the home office deduction by [Read more…] about IRS ANNOUNCES HOME OFFICE SAFE HARBOR

2013 PA Department of Labor Unemployment Tax Rate Changes

January 22, 2013 by Frank

The Office of Unemployment Compensation Tax Services plans to mail the PA Contribution Rate Notice for the 2013 calendar year, Form UC-657, on December 31, 2012. Important deadlines include:

Jan. 30, 2013 is the last day to file a timely Voluntary Contribution.
April 1, 2013 is the last day to file a timely rate appeal for 2013 (a timely rate appeal must be filed within 90 days of the mailing date of the Form UC-657). Note that PA does not allow appeals concerning the Surcharge Adjustment, Additional Contributions and the Interest Factor.

The taxable wage base for employer contributions (per employee per calendar year) increases from the current $8,000 to the following amounts:

2013: $8,500

2014: $8,750

2015: $9,000

2016: $9,500

2017: $9,750

2018: $10,000

The employee portion of the tax is being reduced [Read more…] about 2013 PA Department of Labor Unemployment Tax Rate Changes

IRS ANNOUNCES 2012 TAX RETURN DELAYS – AND HOW TAXPAYERS ARE AFFECTED

January 15, 2013 by Frank

The IRS announced that it will not be able to start to process any tax filings until January 30, 2013. The IRS stated that there are about 30 forms that it will not be able to process until late February or early March, including any form with depreciation.

Once the IRS releases the new forms, then the tax preparation software companies will need time to program their software which can take a couple of weeks. After the software is re-programmed, then the IRS and states need to approve the software programs for compliance.

If you are applying to FAFSA for college financial aid and you need to file your financial information by January 31, you now have the above roadblocks to consider.

If you are seeking a quick refund from the IRS, you will [Read more…] about IRS ANNOUNCES 2012 TAX RETURN DELAYS – AND HOW TAXPAYERS ARE AFFECTED

American Taxpayer Relief Act of 2012 Tax Changes

January 8, 2013 by Frank

On January 1, 2013, Congress passed the American Taxpayer Relief Act of 2012, averting the “Fiscal Cliff.” Although the Act has far too many provisions for us to include in a blog posting, we wanted to share with you our understanding regarding some key elements of the legislation.

For many taxpayers, the most important changes in the “New Year’s Day” Act are [Read more…] about American Taxpayer Relief Act of 2012 Tax Changes

IRS TAX LIEN – EGREGIOUS ASSAULT ON HOMEOWNER?

January 2, 2013 by Frank

The recent court case of William B. Gregory, et al., v. The United States Department of the Treasury – Internal Revenue Service, Case No. 1:12CV00042 in the Western District of Virginia, entered on Nov. 7, 2012, is one of those court cases that illustrates the “Buyer’s Beware” adage. The Gregorys found themselves liable for another person’s tax liabilities!Joe and Betty Watson had purchased their residence [Read more…] about IRS TAX LIEN – EGREGIOUS ASSAULT ON HOMEOWNER?