In June 2012, the IRS disclosed the voluntary offshore collections total to date. This follows the conclusion of two amnesty programs in 2009 and 2011. A direct quote from the IRS Commissioner Doug Shulman “We continue to make strong progress in our international compliance efforts that help ensure honest taxpayers are not footing the bill for those hiding assets offshore. People are finding it tougher and tougher to keep their assets hidden in offshore accounts.”
Based upon the provisions of the new healthcare law passed in 2010, the Medicare tax will increase for employees and self-employed individuals starting on January 1, 2013. The 2010 Health Care Bill is aimed at taxpayers that make over $ 200,000.00 in 2013 and file as single and $ 250,000.00 and file as joint on their tax returns. The tax is 0.9 percent on wages or self-employment income over those threshold amounts. Self-employed individuals will have to increase their estimated tax payments to cover the additional tax starting April 15th 2013.
By Jack Hagel and Alistair M. Nevius, J.D.
July 30, 2012
The National Association of Realtors has some tax advice for users of the internet: Don’t believe everything you read.
There has been a recent flare-up of chain emails purporting that, come Jan. 1, all real estate transactions will be subject to a 3.8% federal sales tax. The problem: That’s not true.
“This is grossly inaccurate,” said Stephanie Singer, a spokeswoman for the Washington-based Realtors association. “It’s not a sales tax on all properties.”
WASHINGTON — The Internal Revenue Service today released revised Form 941 enabling employers to properly report the newly-extended payroll tax cut benefiting nearly 160 million workers.
Recently, Keystone Collections Group, the bureau that took over the local tax collection services for the Lebanon County Earned Income Tax Bureau and several other local tax agencies has been mailing statements to taxpayers stating that additional taxes are due for tax year 2009. The agency has collected information from the Pennsylvania Department of Revenue for every taxpayer’s individual 2009 tax return. They are then cross-matching the PA income with the income reported on the taxpayer’s 2009 Local Earned Income Tax Return.
IRS released the 2012 mileage rates as follows:
Business rate - 55.5 cents per mile
Medical or moving - 23 cents per mile
Charitable - 14 cents per miles
As a result of Hurricane Irene and Tropical Storm Lee IRS has postponed deadlines for Pennsylvania taxpayers who reside or have a business in a federal disaster area until Oct. 31, 2011. This includes corporations and other businesses that previously obtained an extension until Sept. 15 to file their 2010 returns.
Congress has announced that the 0.2% FUTA surcharge will not be extended before June 30, 2011. Employers have been required to pay a flat rate of 6.2% on the first $7,000.00 of each employee’s annual wages for FUTA. The 6.2% FUTA rate included a temporary 0.2% surcharge that was first added in the 1970’s. The FUTA rate will be reduced from 6.2% to 6.0% effective July 1, 2011. Employers will still receive the 5.4% credit for paying state unemployment on time, reducing the FUTA rate to .6% on wages paid up to the annual FUTA limit of $7,000.00.
In response to rising gasoline prices, the IRS has raised the standard mileage rate for business use of an automobile from 51 cents per mile to 55½ per mile, effective July 1 (Announcement 2011-40). The medical and moving standard mileage rate is increasing to 23½ per mile, also on July 1.
The Social Security Administration (SSA) has announced that it is no longer mailing out annual earnings statements to workers. The statements show how much workers have paid into the Social Security system and how much they are scheduled to receive in retirement benefits. The SSA said that the decision was made “in light of the current budget situation.” It advises workers to estimate their retirement benefits using the “Retirement Estimator” on its website.