Ask TaxGuru - General http://www.asktaxguru.com en Sat, 21 Nov 2009 19:09:38 GMT vBulletin 60 http://www.asktaxguru.com/images/monkeybatter/misc/rss.jpg Ask TaxGuru - General http://www.asktaxguru.com Most Businesses May Take Advantage Of Expanded Loss Carryback Option Under New IRS http://www.asktaxguru.com/2425-most-businesses-may-take-advantage-expanded-loss.html Sat, 21 Nov 2009 00:47:13 GMT Most businesses may use losses incurred during the economic downturn to reduce income from prior tax years, under a revenue procedure issued today by the Internal Revenue Service.

The relief provided under the Worker, Homeownership, and Business Assistance Act of 2009 differs from similar relief issued earlier this year in that the previous relief was limited to small businesses.

The current relief is applicable to any taxpayer with business losses, except those that received payments under the Troubled Asset Relief Program. The relief also applies to a loss from operations of a life insurance company.

Taxpayers under the procedure may elect to carry back a net operating loss (NOL) for a period of three, four or five years, or a loss from operations for four or five years, to offset taxable income in those preceding taxable years. An NOL or loss from operations carried back five years may offset no more than 50 percent of a taxpayer's taxable income in that fifth preceding year. This limitation does not apply to the fourth or third preceding year.

The procedure applies to taxpayers that incurred an NOL or a loss from operations for a taxable year ending after Dec. 31, 2007, and beginning before Jan. 1, 2010.

Source: IRS.gov ]]> General Samatg http://www.asktaxguru.com/2425-most-businesses-may-take-advantage-expanded-loss.html Seven Facts about the Nonbusiness Energy Property Credit http://www.asktaxguru.com/2405-seven-facts-about-nonbusiness-energy-property-credit.html Wed, 04 Nov 2009 02:53:52 GMT Taxpayers who take energy saving steps this year may get bigger tax savings next year. The Nonbusiness Energy Property Credit, a tax credit for making energy efficient improvements to homes has been increased as part of the American Recovery and Reinvestment Act of 2009.

Here are seven things the IRS wants you to know about the Nonbusiness Energy Property Credit:
  1. The new law increases the credit rate to 30 percent of the cost of all qualifying improvements and raises the maximum credit limit to $1,500 claimed for 2009 and 2010 combined.
  2. The credit applies to improvements such as adding insulation, energy-efficient exterior windows and energy-efficient heating and air conditioning systems.
  3. To qualify as "energy efficient" for purposes of this tax credit, products generally must meet higher standards than the standards for the credit that was available in 2007.
  4. Manufacturers must certify that their products meet new standards and they must provide a written statement to the taxpayer such as with the packaging of the product or in a printable format on the manufacturers' Website.
  5. Qualifying improvements must be placed into service after December 31, 2008, and before January 1, 2011.
  6. The improvements must be made to the taxpayer's principal residence located in the United States.
  7. To claim the credit, attach Form 5695, Residential Energy Credits to either the 2009 or 2010 tax return. Taxpayers must claim the credit on the tax return for the year that the improvements are made.
Homeowners who have been considering some energy efficient home improvements may find these tax credits will get them bigger tax savings next year.

For more information on this and other key tax provisions of the Recovery Act, visit the official IRS Website at IRS.gov/recovery.

Links: ]]> General Samatg http://www.asktaxguru.com/2405-seven-facts-about-nonbusiness-energy-property-credit.html What records does an Employer need to maintain to comply with the Federal Statutes? http://www.asktaxguru.com/2403-what-records-does-employer-need-maintain-comply.html Tue, 03 Nov 2009 00:54:26 GMT Federal statutes require that employers should maintain certain paperwork for all their employees. These laws require that all employers should maintain the following records as follows;

1. certain employee pre-hire paperwork,
2. employee health and safety logs,
3. retain employee payroll records,
4. employee I-9 forms.

In addition to the records that are required by law, employers should also be maintaining personnel files on all employees that include the following;

1. job descriptions,
2. training records,
3. performance reviews,
4. disciplinary notices.

Additionally, the following employee information is required to be maintained by Employers along with a suggested retention period as required by the Federal Statutes as follows;

1. Resumes & employment applications.
Equal Employment Opportunity (EEO) laws require employers to retain all paperwork related to the pre-hire process, including job ads and postings, resumes, employment applications, interview notes, employment tests, and notes taken during the reference check process..

Retention period:
It is suggested that for applicants that are hired, employers should keep their resume and application in their personnel file for the duration of their employment.

2.New hire paperwork.
Upon the hiring of new employees, all employers are recommended to require that these new hires complete the following paperwork:

-offer letter,
-employment agreement,
-non-compete,
-confidentiality agreements,
-an acknowledgment of having received the employee handbook,
-I-9 forms, the completion of this form is a Federal Requirement,
-W-4 forms, the completion of this form is a Federal Requirement.

Retention period:
All new hire paperwork should be retained for the duration of the employees s employment with the company.

3.I-9 form.
All new hires "must complete the Employment Eligibility Verification Form, also known as the I-9 form, within three (3) days of hire. The I-9 form requires the employee to provide evidence of their eligibility to work."

Retention period:
For all new applicants that are hired, employers should maintain their completed I-9 forms for the both the duration of the employment and for a period of at least 3 years following the termination of employment. ]]> General TaxGuru http://www.asktaxguru.com/2403-what-records-does-employer-need-maintain-comply.html New Form Aids Processing of Mortgage Applications and Ordering Tax Transcripts Simple http://www.asktaxguru.com/2390-new-form-aids-processing-mortgage-applications-ordering.html Fri, 23 Oct 2009 21:22:52 GMT The Internal Revenue Service today issued a new form to aid the processing of mortgage applications under the Home Affordable Modification Program (HAMP) as part of the Making Home Affordable Program. The new form will make it simpler for people, especially homeowners trying to modify or refinance their mortgages, to order copies of their tax return transcripts. Taxpayers often need copies of their tax return information, especially when they are obtaining a new mortgage or when they are refinancing or modifying an existing mortgage. Taxpayers can use Form 4506T-EZ, Short Form Request for Individual Tax Return Transcript (http://www.irs.gov/pub/irs-pdf/f4506tez.pdf), to order a Form 1040 series tax return transcript free of charge. A transcript is a computer print-out that includes most lines on the original return. A transcript often is an acceptable substitute for a copy of the original tax return for purposes of verifying income. Form 4506T-EZ is a streamlined version of the Form 4506T, Request for Transcript of Tax Return. The Form 4506T-EZ is only for individuals who filed a Form 1040 series. Businesses, partnerships and individuals who need transcript information from other forms must still use the Form 4506T. Transcripts ordered through the Form 4506T-EZ can be mailed to a third party, such as a financial institution. The IRS cautions taxpayers that they should complete all required fields, especially the requested years, before signing and dating the form. Taxpayers can obtain Form 4506T-EZ at IRS.gov. It is a fillable form so people can complete the form online and print a copy. They can mail it or fax it to the addresses and numbers listed in the instructions. It generally takes 10 days to process the request. The IRS also recommends that people retain copies of their original tax returns in a safe, secure place. Exact copies of tax returns are available by filing Form 4506, Request for Copy of Tax Return, but each copy costs $57 and can take 60 days to process. Source: IRS.Gov The Internal Revenue Service today issued a new form to aid the processing of mortgage applications under the Home Affordable Modification Program (HAMP) as part of the Making Home Affordable Program. The new form will make it simpler for people, especially homeowners trying to modify or refinance their mortgages, to order copies of their tax return transcripts.

Taxpayers often need copies of their tax return information, especially when they are obtaining a new mortgage or when they are refinancing or modifying an existing mortgage. Taxpayers can use Form 4506T-EZ, Short Form Request for Individual Tax Return Transcript, to order a Form 1040 series tax return transcript free of charge.

A transcript is a computer print-out that includes most lines on the original return. A transcript often is an acceptable substitute for a copy of the original tax return for purposes of verifying income.

Form 4506T-EZ is a streamlined version of the Form 4506T, Request for Transcript of Tax Return. The Form 4506T-EZ is only for individuals who filed a Form 1040 series. Businesses, partnerships and individuals who need transcript information from other forms must still use the Form 4506T.

Transcripts ordered through the Form 4506T-EZ can be mailed to a third party, such as a financial institution. The IRS cautions taxpayers that they should complete all required fields, especially the requested years, before signing and dating the form.

Taxpayers can obtain Form 4506T-EZ at IRS.gov. It is a fillable form so people can complete the form online and print a copy. They can mail it or fax it to the addresses and numbers listed in the instructions. It generally takes 10 days to process the request.

The IRS also recommends that people retain copies of their original tax returns in a safe, secure place. Exact copies of tax returns are available by filing Form 4506, Request for Copy of Tax Return, but each copy costs $57 and can take 60 days to process.

Source: IRS.Gov ]]> General Samatg http://www.asktaxguru.com/2390-new-form-aids-processing-mortgage-applications-ordering.html