Century Accounting & Tax

Speaking of 1099's, if you have people doing work for you for whom you issue Forms 1099-Misc, this is from one of my tax resources...a word to the wise... In February of 2010, in hopes of adding billions to depleted U.S. Treasury coffers, the IRS began a three-year initiative to crack down on what they believe to be a common practice of misclassifying employees as contractors. See next...

Six thousand businesses have already been targeted for audit, and the government hopes to hire 100 new Department of Labor employees specifically to police these abuses. And yes, the do share their successes with the IRS and State authorities. If you think you may be in such a situation, call us. You might be OK or...you might not in which case we can help you.

For those of you who may have a 1099 filing requirement, you'll be happy to hear that the senate has voted to repeal the 1099 issues contained in the health care act. Next comes the House, and then the President's signature. Yey! For landlords, the new 1099 requirements are still in place. Boo!

OK, tomorrow is the 18th, and because of the holiday, everything that is normally due on the 15th, is due tomorrow. Payroll Taxes, Estimated Payments #4, Form 592 Payments...

The IRS has announced a delay in the acceptance of certain individual income tax returns until mid to late February. If you itemize deductions or take the Tuition and Fees Deduction, you will be affected whether your return in e-filed or mailed. Other returns with less common credits and deductions are also affected.

Finally, Congress has passed and the President will sign the 2010 Tax Reduction and Unemployment Insurance Extension Act today. Besides extending the Bush tax cuts which were scheduled to expire on December 31st, this Act reinstitutes the Estate Tax but at a lower rate and with a higher exemption. It also temporarily lowers Social Security Withholding by two full points.