Posts Tagged ‘Tax Credits’

Federal HIRE ACT – 6.2% Payroll Tax Reduction/ $1,000 Hiring Credit

Friday, March 19th, 2010

Two new hiring tax benefits are now available to employers:

Read the IRS announcement of the 2010 Hiring Act:
http://www.irs.gov/newsroom/article/0,,id=220326,00.html

Download the CCH Tax Briefing Special Report .pdf:
President Signs HIRE Act

The links above provide a summary of the 6.2% employer FICA tax holiday through December 31st for hiring employees who have been unemployed (or worked less than 40 hours a week for another employer) prior to being hired.

The HIRE Act is now law:
An employer hiring credit of up to $1,000 is also available in 2011 for non-family employees hired after Feb. 3, 2010 and retained for at least 12 months.  The employee must either be: 1) hired for a newly created position, OR  a replacement of an employee who quit or was let go “for cause”.

So as not to put further strain on the Social Security system, the payroll tax reduction under the HIRE Act will be transferred from the federal General Fund.

For full text of the new HIRE ACT statute: http://www.bnatax.com/insightsdetail.aspx?id=2147484627

Find additional useful links on the Tax Professor Blog:
http://taxprof.typepad.com/taxprof_blog/2010/03/president-obama.html

For weekly tax and financial updates, please follow Blake on twitter:
http://twitter.com/taxcredits_CPA” target=”_blank

Year-End Tax Planning and Job Creation – Maximizing Refunds in a Tough Economy

Friday, December 4th, 2009

Sign up for my daily/ weekly tax update Twitter feeds at:

http://twitter.com/taxcredits_cpa

 Before we get into year-end tax planning, let’s focus on job creation for a moment.  President Obama held his White House “Jobs Summit” – without a few key business organizations, including the U.S. Chamber of Commerce which represents over 3 million companies and over 115 million employees.

Another stimulus package is being discussed, but a focus on job creation and tax reduction will be the best short-term strategy.  There are numerous federal and state programs which allow employers to claim credits ranging from $500 to $15,000 per “qualified” employee.  The Obama Administration needs to focus on refundable hiring credits, an investment tax credit for purchasing equipment and incentives for loaning funds or making equity investments in small businesses.

For a full library of articles focused on these tax incentive programs, please click on the following link:

www.blakechristian.com/blog

 

 

2009 federal and state tax changes provide huge opportunities for both business and individual taxpayers to minimize their 2009 tax liabilities and in many cases optimize refunds from prior years.

With some effort before year-end, March and April 15th can be much less taxing — but advance planning is necessary.

Businesses and individual taxpayers have had to navigate a challenging economic landscape for at least the last two years.  In addition to trying and maintain revenue levels while paring down costs, businesses and homeowners have found their financing options dramatically limited.

Therefore it is critically important for both businesses and individual taxpayers to carefully plan now for their year-end to ensure that they minimize their federal and state tax obligations – and insome cases – secure refunds for prior tax years.

As more fully detailed in the attached links to a variety of articles addressing topics raanging from:

- How to maximize tax refunds via the carryback of 2009 tax losses – including the recently passed 5 year federal carryback option for all businesses:

http://www.cpa2biz.com/Content/media/PRODUCER_CONTENT/Newsletters/Articles_2008/CorpTax/Corporate_Tax_Losses.jsp

http://www.blakechristian.com/blog/?s=tax+loss

- How to maximize write-off of wholly and partially worthless bad debts

http://www.cpa2biz.com/Content/media/PRODUCER_CONTENT/Newsletters/Articles_2007/CorpTax/Uncertainty.jsp

- Taking full advantage of federal and state depreciation and immediate write-off of equipment and other capital expenditures:

http://www.cpa2biz.com/Content/media/PRODUCER_CONTENT/Newsletters/Articles_2009/CorpTax/Stimulus_Maximus.jsp

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Claiming the wide variety of federal and state green/ eco-credits:

http://www.blakechristian.com/green_tax_incentives.html

- Claiming valuable federal and state Location-Based Investment Credits (LBICs) for hiring employees and making capital investments in any one of the 8,500+ incentive tax Zones.  There are over 42 state Enterprise Zones in California which can often eliminate taxes in the highest rate state in the country:

http://www.cpa2biz.com/Content/media/PRODUCER_CONTENT/Newsletters/Articles_2008/CorpTax/EZstreet.jsp

 

 2009 was an extremely active year for tax legislation and while federal changes were often beneficial for corporations and individuals, state changes, particularly California, often resulted in higher rates, less deductions and accelerated tax payment requirements.

 

For a full library of corporate tax articles log onto the AICPA Corporate Taxation Insider Newsletter:

http://www.cpa2biz.com/search/results.jsp?N=79&mode=content

 

For a wider variety of business and individual tax and economic articles, news and otherlinks, please click onto my personal website:

www.blakechristian.com

 

Our comprehensive year-end tax planning guide can be accessed at:

http://hcvt.com/

 

 

 

Quicker Federal Refunds – Congress Liberalizes Loss Carryback Rules – Tax Losses Can Generate Valuable Refunds

Friday, November 6th, 2009

Congress has approved a liberalized tax net operating loss (NOL) provision for companies have reported tax losses in 2008 or 2009.  Rather than the current limit of a 2-year carryback for most operating losses, this new rule (once signed by President Obama) will allow virtually all businesses to carryback their 2008 and 2009 losses as far back as 2003 to the extent they had reported federal taxable income in that year – or other intervening years.

This change means that many companies which have fallen on hard times the last couple of years can secure up to five years of refunds for taxes paid in prior years.

See Time Magazine.com article for more details regarding these latest changes (note these refunds are attributable to losses rather than credit; however certain tax credits are also eligible for carryback and refunds):

http://www.time.com/time/business/article/0,8599,1934813,00.html

 

See my December 2008 AICPA article detailing the refund filing process under the prior rules:

http://www.cpa2biz.com/Content/media/PRODUCER_CONTENT/Newsletters/Articles_2008/CorpTax/Corporate_Tax_Losses.jsp

Build America Bonds – Stimulating State & Local Infrastructure Projects

Sunday, November 1st, 2009

As part of the 2009 tax stimulus plan, congress approved three types of financing tools which offer investors tax-effective investment returns, and/or reduced financing costs for the issuer of the bonds.

The tax credit bonds include tax credits which can be used to offset both “regular” federal income tax as well as federal alternative minimum tax (AMT).

Since the credit earned is 35% of the interest income received, taxpayers in the AMT, or taxpayers in marginal tax rates lower than 35% will generally obtain even greater benefits.

Develelopers, government agencies and construction companies view Build America Bonds as a very effective financing tool.

 http://www.cpa2biz.com/Content/media/PRODUCER_CONTENT/Newsletters/Articles_2009/CorpTax/Build_America.jsp

State and Federal Tax Audit Activity Increases With Falling Economy

Friday, September 25th, 2009

With state and local tax revenues falling by the largest percentage in 50 years, state and local agencies are stepping up their income, sales/ use and property tax audit activities to close at least part of the tax gap.

Please click on the link below to read how 42 states have experienced drops in their tax revenue – and the current fiscal year looks equally bleak.

In light of increased audits and possible legislative tax increases, taxpayers should review the variety of ways to reduce their state and local tax bite and make sure that they only pay their statutory fair share

http://www.cpa2biz.com/AST/AICPA_CPA2BiZ_Nav/Top/Browse/Newsletters.jsp

 

Also read about proposed IRS collection procedures to close the $350 billion federal tax gap.

http://www.cpa2biz.com/Content/media/PRODUCER_CONTENT/Newsletters/Articles_2009/CorpTax/Federal_Tax_Gap.jsp

Tax Stimulus – March 31st Small Business Administration Presentation Handouts

Monday, March 30th, 2009

For those attendees of the Long Beach SBDC Economic Stimulus Seminar, attached are the various handouts from my tax presentation:

Download SBDC Presentation 3.31.09 ppt

Download LB Magazine April Article

Download LBACC Advocate Spring column Blake Christian

Download Socially Responsible YEP Article

Download CA Tax Rates article 12.2007

 Download CA Reduce Emissions article 12.2007

Additional articles, videos, etc. are available below and in the "Library" section of this site.

Hire a Veteran – Give a Job and Get a Tax Refund

Saturday, March 21st, 2009

Our returning troops are coming back to one of the worst employment environments in decades.  After giving so much for our country, we can show our gratitude by providing them a good job.   In addition to "doing the right thing", employers will find a variety of federal and possible state hiring tax credits ranging from $4,500 to $13,000 per veteran hired.

Read more how veterans can use these programs to improve their job prospects and how employers can save tens of thousands of dollars annually:

Download Veteran-Employer Tax Breaks REVISED for 2009 Recovery Act

Download NTCG Tax Credit Card Press Release 11.12.2007

Jobless rate for recent military veterans rises – CNN.com

 

 

www.usvetsinc.org 

 

www.ntcgtax.com   Check out our Tax Credit Card

Tea Party – Develop Your Own Tax Stimulus Package – Significant State and Federal Tax Credits Available Now

Saturday, March 7th, 2009

No need take any extreme measures when it comes to your taxes.

 

Even if you have already filed your 2008 business or personal tax return it is not too late to get some of your prior taxes back.   If you have extended your 2008 returns – read on and make sure you are not overpaying your state and federal taxes – since most taxpayers do.

 

Please scan through this entire blog and the "Library" Section of this site to find hundreds of tax refund opportunities for businesses as well as individuals.

 

With tax developments at both the federal and state level, it is time to make sure that you pay no more than your fair share of the growing tax burden.   I'm sure you can put your hard earned dollars to more effective use than the government – so get educated on all the existing, legitimate tax breaks available to you and your business.

 

Nationally, over 20 percent of businesses have one or more locations that fall within a Location Based Investment Credit (LBIC) zone and of this eligible pool of businesses, less than 10 percent of these qualifying companies actually claim the benefits they are entitled to. As a result, CPAs, CFOs and tax directors have an excellent opportunity to dramatically increase shareholder value by taking advantage of the valuable tax incentives. Since the federal programs allow up to three years of amended return refunds and many states also allow retroactive benefit claims, immediate tax advantages can be secured along with favorable EPS impact.

 

These benefits range from $500 to $15,000 per employee, depending on the specific state and federal program.

 

In addition to these location-based credit programs, there are a number of federal programs which apply to virtually any business.  These programs include the Work Opportunity Tax Credit (WOTC) and the Welfare-to-Work (WtW) programs which can generate federal hiring credits ranging from $2,400 to $8,500 per qualified employees.  The 2009 federal Stimulus Package and California Budget Package expanded these programs even further.

 

These programs apply to a fairly wide range of employees, including many veterans, laid off/ unemployed candidates and those individuals with economic or medical challenges.

 

These programs are seldom accessed by taxpayers due to their unfamiliarity with the program specifics.   The significant tax reductions (including refunds) available under these programs should encourage every employer to start utilizing these state and federal programs immediately.

 

In addition to saving taxes, by hiring these economically challenged individuals, employers are contributing to their community.   Download Focusing on Unemployment 12.2008

 

 

Click here for my various 2009 CNN News Reports on the Stimulus Package, Tax and Economic Issues:      http://www.hcvt.com/media.aspx

 

 

 

Download 2009 AICPA Top 10 Tips for Tax Planning

 

 

 

 

Click below to see our proprietary tax credit software and save taxes in any state:

http://tax.cchgroup.com/FlashDemos/tzl/main.htm

See a video of our slick software that will tell you the hidden tax benefits for any address in the U.S.

Below are a number of links and articles that explain the state and federal program benefits:

http://www.cpa2biz.com/Content/media/PRODUCER_CONTENT/Newsletters/Articles_2008/CorpTax/EZstreet.jsp

Steering Tax Life on 'EZ' Street

With combined federal and state burdens often in the 40 percent range, a material reduction in a company's tax rate can produce significant savings.

http://www.cpa2biz.com/Content/media/PRODUCER_CONTENT/Newsletters/Articles_2008/CorpTax/Tax_Burden.jsp

State Tax Burden

More taxing than you might think. SALT in the wound?

Download Urban Success Mag Tax Break article

Urban Success Magazine Article (No Urban Legend Here – Tax Benefits are Real)

Download Hire a Hero 19May08

Hire a Veteran – Save Taxes While Changing a Life

Download 2009 AICPA Top 10 Tips for Tax Planning

 

 

Stimulus Take 2 – Pork? Which Banks Have Received Infusions? 2009 Crystal Ball.

Saturday, January 31st, 2009

As the second Stimulus Plan weaves through Congress, scrutiny is mounting regarding the specifics of the plan and which regions and industries will derive any benefit from the proposed $888 billion infusion.

Infrastructure Projects - Excellent Idea — if Executed Properly

While infrastructure projects are a cornerstone of this Stimulus Plan, careful monitoring of bidding processes, budgeting, and implementation of these large projects to ensure that the benefits are equitably spread to the communities and residents in the hardest hit regions.

The most cost effective way to allocate these contracts while ensuring that local residents are properly represented on the projects is to require that a minimum percentage (say 20%) of contracts/ sub-contracts are set aside for small businesses headquartered in the infrastructure city or county.  In addition, both union and non-union contractors should be required to employ at least 25% of local residents.  In addition to improving the stimulative effect, this strategy will reduce pollution and should also streamline the local approval process, since job creation and retention are the clear focus of municipalities.

Download Reduce Emissions article 12.2007

Download Long Beach Press-Telegram 2009 Infrastructure Op-Ed

Obama's Stimulus Package -Will the Democratic Bill Morph into a Bi-Partisan Bill?

Updates on the proposed Obama Stimulus Plan, and the list of financial institutions that have received federal infusions thus far are reflected below. 

http://royce.house.gov/News/DocumentSingle.aspx?DocumentID=109713  Congressman Royce Comments

http://online.wsj.com/public/resources/documents/st_BANKMONEY_20081027.html  TARP Recipients

http://www.webcpa.com/article.cfm?ARTICLEID=30588   House Passes Package

http://www.webcpa.com/article.cfm?ARTICLEID=30584   Senate Tax Breaks

2009 – Continuing Economic Chaos?

Looking forward into 2009, the stock market and money markets have some real challenges.  Read what local economists Clyde Kendzierski and Bill Gross and JP Morgan have to say about 2009.

Download Clyde Kendzierski 2009 Economic Forecast

Download Bill Gross – Big Brother Investing (2) 

Download Nouriel Roubini (NYU Professor) 2009 Economic Forecast

Download JP Morgan on Money Fund Risks

Hopefully the Senate will refine the Stimulus Package to make it smaller and more effective.  A slower, more thorough evaluation process in the Senate should result in a better package for the U.S. economy, U.S. taxpayers, as well as the worldwide financial markets.

Infrastructure Employment Stimulus, FDIC Insurance and Money Market Guarantees

Sunday, January 25th, 2009

Download Long Beach Press-Telegram 2009 Infrastructure Op-Ed 

Download 2008-dec-skyrocketing-unemployment-lbics-1

Download 2009 LB Magazine Investment Strategies

Download 2008 FDIC Insurance Coverage

Download 2008 SEC Money Market Guarantee

   http://www.sec.gov/answers/investoralert.htm

Infrastructure and Employment

Infrastructure projects are at the top of national, state and local agendas as the best way to stimulate the economy and reverse the spiraling unemployment trends.  There is a clear need for infrastructure investment; however,to maximize the stimulus effect and minimize the taxpayers' cost of these projects, legislators need to carefully allocate and monitor the underlying construction contracts. 

Bank Account Insurance and Money Market Guarantees

With the continuing banking and stock market uncertainties, businesses and personal investors are wise to exercise extreme caution and diversification of their investment and banking relationships.  Concentration of either interest-bearing or non-interest bearing accounts in any one bank – or even in multiple banks for taxpayers with large cash balances, may be regretted in coming months.

Money market funds and both corporate and tax-exempt bond portfolios should also be re-examined by a bond expert for both default risks and interest rate/ market  risks when rates increase in the future.

While municipal bonds may be viewed as reasonably safe by many experts, many state and local governments are also facing unprecedented revenue and cost challenges and higher cost of financing as a result of the faltering economy, which may add to risk on many outstanding bonds.  Therefore, extra care should be factored into the review of this part of your portfolio.

See other Blog entries below as well as a variety of articles in the "Library" section of this site.