Posted by: Brett Neate, CPA
The Ohio Budget Bill signed by Governor Kasich on June 30th includes a massive tax break for businesses delinquent in filing Use Tax returns. Not only will interest and penalties be waived, but the tax itself will be abated for all pre-2009 periods! The amnesty period runs from October 1, 2011 to May 1, 2013 and offers benefits to both registered and unregistered taxpayers.
In early March, the IRS released Announcement 2011-21, announcing that it would “soon” release the 2009 version of Form 8955-SSA, which is the replacement for the old Schedule SSA to Form 5500. The 2010 form was promised “later.” As of June 18, 2011, the IRS released the 2009 Form 8955-SSA, but to date still has not released the 2010 version of this form.
In general, a plan sponsor must file the 2009 Form 8955-SSA (for a single employer plan) if the participant separates from service covered by the plan in a plan year and the participant is entitled to a deferred vested benefit under the plan. Form 8955-SSA must be filed no later than the plan year following the plan year in which the participant terminates employment with the employer.
It is anticipated that the 2010 Form will also require disclosure of individuals whose benefits were transferred in 2010 from another plan into the reporting plan, and individuals whose benefits ceased to be payable by the reporting plan during 2010 (because they received a distribution of their entire vested benefits in 2010).
As of now, what options does an employer have for satisfying the 2010 Form 8955-SSA filing requirement?
At present, there are three options:
In today’s struggling economy state and local taxing authorities are taking action to generate tax revenue in a variety of ways. States are discovering new ways to identify non-filers and utilizing new, and often questionable, criteria in determining who they can and can’t subject to tax.
read more…Christian Lopez, the 23-year-old baseball fan who returned Yankees’ Derek Jeter’s 3,000th career hit ball to the player, allegedly out of the goodness of his heart, received autographed bats, balls, and jerseys and four box seat tickets for the rest of the Yankees 2011 season from the appreciative team.
read more…Taking yet another step to streamline operations and reduce costs, the Ohio Department of Taxation will no longer mail its income tax booklets.
read more…The draft Form 706 was posted to the IRS website. For your convenience, here is a direct link to the form http://www.irs.gov/pub/irs-dft/f706–dft.pdf. It will only be used for decedents dying in 2010. If electing the modified carryover basis and zero estate tax, the instructions to the form still don’t explain how to make the election.
read more…The Internal Revenue Service issued guidance on the treatment of basis for certain estates of decedents who died in 2010 (See Notice 2011- 66 and Rev. Proc. 2011- 41) The guidance assists executors who are making the choice to opt out of the estate tax and have the carryover basis rules apply.
read more…As of now, the deadline for filing 2010 Form 706 is September 17, 2011. The due date for filing Form 8939, as mentioned above, is November 15, 2011. Both the 706 and 8939 have only been issued in draft form.
read more…With just days left before the Sept 19, 2011 filing deadline for 2010 Federal Estate returns, the IRS posted the final Form 706 and Instructions on their website on 9/8/2011.
read more…Still awaiting Final Form 8939 – Allocation of Increase in Basis for Property Acquired From a Decedent. Previously, the AICPA had requested that the IRS and Treasury provide a blanket extension until 90 days after the forms and instruction are finalized. No final word received yet.
read more…
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