SUMMER 2010 NEWSLETTER
F S T R I A D.C O M
Hello Everyone,
I hope you are enjoying the summer! The filing deadline for income tax extensions is fast approaching, so please let me know once you have gathered all your information so we can complete your return before the deadline of October 15th. I look forward to seeing you soon and take care.
Carolyn Walters
STILL HAVENT RECEIVED YOUR REFUND? ....
Federal Refund https://sa2.www4.irs.gov/irfof/lang/en/irfofgetstatus.jsp
NC Refund https://eservices.dor.nc.gov/wheresmyrefund/SelectionServlet
TAX UPDATE
New Law Allows Tax-Free Health Coverage to Older Children
Changes made by the recently enacted Patient Protection and Affordable Care Act, provide tax-free health coverage for an employee's children who are under age 27. The change is effective March 30, 2010. These changes immediately allow employers with cafeteria plans to permit employees to begin making pre-tax contributions to pay for this expanded benefit.
In addition to extending coverage to older children, the Affordable Care Act also requires plans that provide dependent coverage to continue to make the coverage available for an adult child until the child turns age 26. The extended coverage must be provided no later than plan years beginning on or after September 23, 2010.
BUSINESS INFORMATION
If you are considering hiring new employees, now is a good time. Employers can be exempt from paying payroll taxes (6.2%) for hiring and retaining unemployed workers. This applies to workers hired after February 3, 2010 and before January 1, 2011.
Employers who pay health insurance premiums for their employees may qualify for a credit of up to 35% of the premiums paid. The credit is specifically targeted to help small businesses and tax-exempt organizations that primarily employ low and moderate income workers. It is generally available to employers that have fewer than 25 full-time equivalent (FTE) employees paying wages averaging less than $50,000 per employee per year. Because the eligibility formula is based in part on the number of FTEs, not the number of employees, many businesses will qualify even if they employ more than 25 individual workers. More information on this will be available in the fall of 2010.
FYI
TIGTA Report Uncovers Homebuyer Credit Fraud
A recent report released by the Treasury Inspector General for Tax Administration (TIGTA) reveals that additional steps are necessary to prevent fraud and abuse with regard to the first-time homebuyer credit. It should have come as no surprise that a refundable credit of as much as $8,000 would cause some individuals to fabricate information to make it appear they were eligible. According to the report, as many as 4,600 incarcerated individuals filed claims for the credit. Apparently, at least 1,295 prisoners were allowed to receive more than $9.1 million in credit refunds related to the first-time homebuyer credit. The IRS has plans to recover the money.
The results of this report could mean that the IRS steps up its audits of returns on which the credit was claimed.
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