American Taxpayer Relief Act of 2012

On January 2, 2013, President Obama signed into law the American Taxpayer Relief Act of 2012 (“the 2012 Tax Act”), which affects all taxpayers. The summary below highlights some of the more relevant tax provisions in the 2012 Tax Act: Payroll Tax Holiday The payroll tax holiday, which reduced the employee portion of social security […]

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Retroactive CA Income Tax Increase, Effective January 1, 2012

Governor Jerry Brown’s Proposition 30 passed this month, retroactively increasing income taxes effective January 1, 2012. These rates will remain in effect for seven years (through the end of 2018) as follows: New Rates for 2012-2018 10.3% (1% increase) on income of: $250,001–$300,000 for single/MFS; $340,001–$408,000 for HOH; and $500,001–$600,000 for MFJ. 11.3% (2% increase) […]

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Issuing K-1’s Electronically

Many partnerships are increasingly providing K-1’s to their partners electronically. If you are one of them, please be aware that on February 13, 2012, the IRS issued Revenue Procedure 2012-17, which contains rules that partnerships (including LLCs taxed as partnerships) must now follow when delivering K-1’s exclusively in electronic format. Please note that these new […]

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SB 459 – Independent Contractors

Effective January 1, 2012, California has a new law, Senate Bill 459 (SB 459), which significantly increases the penalties that can be assessed against employers who willfully misclassify individuals who should be treated as employees as independent contractors. If your business utilizes independent contractors, it is extremely important that you take the time now to […]

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Planning for 2013

As you may recall, the uncertainty we faced at the end of 2010 was not resolved but only deferred via a series of extensions, most of which are set to expire in 2013. If Congress fails to adopt a more permanent tax structure before the end of this year, the income tax rates and the […]

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HIRE Act & Health Care and Education Reconciliation Act

Earlier in March, President Obama signed two major bills into law – The Hiring Incentives to Restore Employment (HIRE) Act and The Health Care and Education Reconciliation Act. Below is a summary of the relevant tax provisions of these new laws. Hiring Incentives to Restore Employment (HIRE) Act: To help jumpstart business hiring and spending, […]

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California – Electronic Payment of Taxes

In response to the budget crisis in California, the state legislature has enacted several measures to raise revenues, including an increase in sales and use tax and income tax rates, higher penalties, stricter enforcement, and the accelerated collection of certain taxes and fees. One of the lesser-known changes being implemented by California may change the […]

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Conversion of a Traditional IRA to a Roth IRA

As you may know, as of the beginning of this year, all individuals are now eligible to convert a traditional IRA into a Roth IRA. For many individuals with higher incomes, a frustrating income tax rule prevented contributing to, or converting a traditional IRA to a Roth IRA, due to an income threshold limitation. Fortunately, […]

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