Blog | WM. F. Horne & Company, PLLC

04Nov2010

Tax Rumors Abound

There are two false tax rumors that have been circulating around and troubling clients. To set the record straight, a brief explanation of both rumors is provided below.

False Rumor #1 – “Employer-paid health insurance benefits will be taxable in 2011.”

Not true! Starting in 2011, the amount of employer-paid healthcare benefits was to be included on the W-2 as an information entry, but is not included in the taxable wages on the…

  • 4 Nov, 2010
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02Nov2010

Health Care Professionals Working in Underserved Areas May Qualify for Special Benefit

Under the Affordable Care Act, health care professionals who received student loan relief under state programs that reward those who work in underserved communities may qualify for refunds on their 2009 federal income tax returns, as well as an annual tax cut going forward.

The Affordable Care Act included a change in the law, effective in 2009, that expands a tax exclusion for amounts received by health professionals under loan repayment and forgiveness programs. Prior to…

  • 2 Nov, 2010
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28Oct2010

Over-the-Counter Medication and Medical Reimbursement Plans

For many years, taxpayers have not been able to deduct as a medical expense on their tax return the cost of unprescribed over-the-counter medications. However, taxpayers with Flexible Spending Arrangements (FSA), Health Reimbursement Arrangements (HRA), Health Savings Accounts (HSA) and Archer Medical Savings Accounts (Archer MSA) could reimburse themselves for the cost of over-the-counter drugs, and, as a result, pay for the medication with tax-deductible dollars.

As part of the new Health Care legislation, that benefit will…

  • 28 Oct, 2010
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22Oct2010

Is Your Business Ready for 2011 Credit Card Income Reporting?

Beginning for sales made in 2011, payment settlement entities (e.g., merchant card processing companies like American Express, Visa and MasterCard merchant banks) will be required to report each business’s payment transactions to the IRS.

To facilitate this reporting, the IRS has developed Form 1099-K which will report a merchant’s credit and debit card income for the year and will be issued to the merchant in the early part of the subsequent year just like 1099s for interest,…

  • 22 Oct, 2010
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19Oct2010

Will You Be Hit by the AMT in 2010?

AMT is the acronym for Alternative Minimum Tax. It is a different (alternative), and generally punitive, method of computing income tax when either certain types of income receive preferential tax treatment or there are excessive deductions in certain categories. Congress originally implemented it to impose a minimum tax on higher-income taxpayers who were avoiding taxes though tax shelters and other legal means. However, years of inflation without corresponding adjustment to the AMT components have, each successive year,…

  • 19 Oct, 2010
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14Oct2010

Time is Running Out for the Home Energy Property Credit

Planning to make an “energy-saving” improvement to your home? 2010 is the final year to take advantage of the tax credit available so you will need to act quickly as there are only three months left. Whether you simply want to cut your utility bills or winterize your home, do it soon!

The name “Home Energy Property Credit” given by Congress is not as descriptive as it could have been and is easily confused with other credits….

  • 14 Oct, 2010
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11Oct2010

New Penalties for Failure to File or Furnish Information Returns

Tax law requires businesses to provide information returns, such a 1099s, to each payee that the business has paid $600 or more for the year. The law also includes penalties for failure to file the same information returns with the IRS.

To ensure compliance with these requirements, there are substantial penalties, and, as part of the recently passed Small Business Jobs Act of 2010, those penalties have been doubled. The penalties are generally based upon how late…

  • 11 Oct, 2010
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06Oct2010

New Breaks for Small Businesses

The 2010 Small Business Jobs Act enacted September 27, 2010 includes an assortment of incentives and tax breaks for small businesses. The following is a brief overview of some of the key provisions included in the new law. Watch for additional details in future newsletters.

  • Cell Phones No Longer Listed PropertyThis means that cell phones can be deducted or depreciated like other business property, without the complicated recordkeeping required for listed property. …

  • 6 Oct, 2010
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21Sep2010

Does the IRS Owe You Money??

If you have not filed a prior year tax return and are due a refund, you should consider filing the return to claim that refund. If you are missing a refund for a previously filed tax return, you should check the status of your refund and confirm your current address.

Unclaimed Refunds

Some people may have had taxes withheld from their wages but were not required to file a tax return because they had too little income….

  • 21 Sep, 2010
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14Sep2010

Reminders for September 15th

Individuals:

  • The third installment of 2010 individual estimated taxes is due.

Corporations:

  • File a 2009 calendar year income tax return (Form 1120 or 1120-A) and pay any tax, interest, and penalties due. This due date applies only if you timely requested an automatic 6-month extension.
  • Deposit the third installment of estimated income tax for 2010 for calendar year corporations.

S Corporations:

  • File a 2009 calendar year income tax return (Form 1120S) and pay any tax due. This due date applies…

  • 14 Sep, 2010
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