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:
Schedule SSA...Gone But Not Forgotten & New and Improved Form 8955-SSA...About Time!
Taxes - Planning, Rules and ReturnsThe Supreme Court’s recent decision in the case Cigna v. Amara sent a very important message to all plan sponsors/employers regarding the importance of maintaining their retirement plan documents, including the required summary plan descriptions and summary of material modifications (as applicable).
Posted by: Courtney Ockenden, CPA
Does your vehicle get used for business?
Early in June, we posted a blog entry indicating how Ohio was moving closer to an Estate Tax Repeal. With the signing of the biennial budget by Governor Kasich last Thursday, June 30, 2011, repeal is now official! The Ohio Estate Tax has been eliminated effective January 1, 2013.
Previously, Ohio held the dubious distinction of having the lowest state estate tax exemption amount in the country, at $338,333. That distinction will soon belong to New Jersey, with an estate exemption amount of $675,000.
We don’t know exactly how local governments will react to this change. It is projected that, over the long term, additional revenue to the state will be generated as a result of Ohioans not relocating to other states to avoid the estate tax. This, in turn, will have the effect of feeding the Ohio economy and job market, making up for the lost estate tax revenue.
Keep in mind though, that deaths occurring in 2011 and 2012 will still be subject to Ohio Estate tax at a potential rate of as much as 7%.
Needless to say, you should contact us or your estate attorney to determine how this change may affect your current estate plan.
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.
The Internal Revenue Service today announced an increase in the optional standard mileage rates for the final six months of 2011. Taxpayers may use the optional standard rates to calculate the deductible costs of operating an automobile for business and other purposes.
The rate will increase to 55.5 cents a mile for all business miles driven from July 1, 2011, through Dec. 31, 2011. This is an increase of 4.5 cents from the 51 cent rate in effect for the first six months of 2011, as set forth in Revenue Procedure 2010-51.
Posted by: DeAnna DeWitt
The Supreme Court’s recent decision in the case Cigna v. Amara sent a very important message to all plan sponsors/employers regarding the importance of maintaining their retirement plan documents including the required summary plan descriptions and summary of material modifications (as applicable).
International Financial Reporting Standards (IFRS)
international , Taxes - Planning, Rules and Returnsby Joe Ramey, ATS Manager
The SEC recently released a work plan for how International Financial Reporting Standards (IFRS) might be worked into the U.S. financial reporting system, stressing that the SEC has not yet committed to convergence of U.S. GAAP with IFRS.
The plan drew a picture of how dramatically Financial Accounting Standards Board’s (FASB) role may change in standard setting.
Have Nagging Financial Questions?
