Woodland Hills CPA, Accounting Services

PRESS RELEASE
3-10-11

http://www.eeoc.gov/eeoc/newsroom/release/3-10-11.cfm

WASHINGTON – The U.S. Equal Employment Opportunity Commission (EEOC) will hold a public meeting on employment of people with mental disabilities on Tuesday, March 15, at 1:00 p.m. (Eastern Time), at agency headquarters, 131 M Street, N.E. In accordance with the Sunshine Act, the meeting is open for public observation of the Commission’s deliberations.

The Commission will hear from invited panelists on the employment rates of people with intellectual disabilities and psychiatric disabilities and the challenges they face in the workplace, as well as why it makes good business sense to employ people with disabilities. The meeting agenda includes:

Panel 1: Employment Rates of People with Mental Disabilities

• Sharon Lewis, Commissioner, Administration on Developmental Disabilities, U.S. Department of Health and Human Services
• Dr. William Kiernan, Director, Institute for Community Inclusion
• Dr. Gary Bond, Professor of Psychiatry, Dartmouth Psychiatric Research Center
• Ruby Moore, Executive Director, The Georgia Advocacy Office, and Founder, New England Business Associates

Panel 2: Requirements of the ADA, Strategies to Comply and Outcomes for People with Mental Disabilities

• Samuel Bagenstos, Principal Deputy Assistant Attorney General, U.S. Department of Justice, Civil Rights Division
• Jack Eaton, Manager, Giant Supermarket
• Tenesha Abbott, Employee, Giant Supermarket
• Anupa Iyer, EEOC Intern, Law Student, Seattle University

Panel 3: Litigation to Enforce the Rights of People with Mental Disabilities

• Markus Penzel, EEOC Senior Trial Attorney
• Donna Malone, Plaintiff, EEOC v. Land Air Express

A brief question-and-answer session with EEOC Commissioners will follow each panel discussion.

Seating is limited and it is suggested that visitors arrive 30 minutes before the meeting in order to be processed through security and escorted to the meeting room.

The Commission agenda is subject to revision. Additional information about the hearing, when available, will be posted at http://www.eeoc.gov/eeoc/meetings/index.cfm.

The EEOC enforces federal laws prohibiting employment discrimination. Further information about the EEOC is available on its web site at www.eeoc.gov.

The following is an article in the March edition of the Nat’l Association of Tax Professionals, TAXPRO Monthly:

Albert Lawrence Bomer represented himself in a strange case he brought to Tax Court involving the IRS’s disallowance of his claim for the Earned Income Credit, and the imposition of an accuracy-related penalty on his 2007 self-prepared federal income tax return.

During the 2007 tax year, Bomer resided at a maximum security prison in Michigan, where he had lived since 1997 as part of a 40-year sentence. Bomer filed a 2007 federal income tax return and reported wages of $15,640 and claimed an Earned Income Credit amount of $4,667. Because of the circumstances of his residence and the lack of records indicating wages, the IRS determined a deficiency in Bomer’s 2007 income tax of $4,667 and an accuracy-related penalty under §6662(a) and (b)(1) of $933.  Liability for the penalty was determined based on disregard of the rules or regulations.

The earned income credit under §32 is based on a taxpayer’s qualifying income as defined under that section and includes wages, salaries, tips and other employee compensation. However, §32(c)(2)(B) specifically excludes certain items from the definition of earned income. It provides that “no amount received for services provided by an individual while the individual is an inmate at a penal institution shall be taken into account” in determining a taxpayer’s earned income.

Although he was unable to tell the Tax Court how he earned the income, Bomer argued that the income he reported on his 2007 federal income tax return was not earned for work within the prison. The Court said it did not matter whether the income was earned working inside or outside a penal institution. The fact that Bomer had the status of an inmate at a penal institution for all of 2007 disqualified any income from being taken into account under §32.

Section 6664 provides an exception to the imposition of the accuracy-related penalty if the taxpayer establishes that there was reasonable cause for, and the taxpayer acted in good faith with respect to, the underpayment. The Tax Court ruled that Bomer did not have reasonable cause to believe that he was entitled to the Earned Income Credit.  Additionally, he did not act in good faith and the Court upheld the assessment of the accuracy-related penalty under §6662.

Bomer v. Commissioner
TC Summary Opinion 2010-54

As first reported on Accounting Today online, at: http://www.accountingtoday.com/news/Obama-Proposes-Extending-Small-Business-Tax-Cuts-Permanently-57104-1.html?ET=webcpa:e1266:206946a:&st=email&utm_source=editorial&utm_medium=email&utm_campaign=WebCPA_Daily_013111 

Washington, D.C. (January 31, 2011)

The Obama administration proposed permanently eliminating capital gains taxes on some types of small business investments held for over five years.

The White House announced the tax cut extension Monday as part of a group of proposals aimed at encouraging small business entrepreneurship. The capital gains exemption extends a provision of last year’s Small Business Jobs Act that is set to expire this December.

The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 provides a 100-percent exclusion from tax for capital gains realized on the sale of certain small business stock held for more than five years.  The amount of gain eligible for the exclusion is limited to the greater of $10 million or ten times the taxpayer’s basis in the stock. This provision applies to qualified small business stock issued after Dec. 31, 2010, and before Jan. 1, 2012.  The administration’s fiscal year 2012 budget proposal would make this provision permanent, increasing private sector investment in small businesses.

“Entrepreneurs embody the promise of America: the belief that if you have a good idea and are willing to work hard and see it through, you can succeed in this country,” said Obama. “And in fulfilling this promise, entrepreneurs also play a critical role in expanding our economy and creating jobs. That’s why we’re launching Startup America, a national campaign to help win the future by knocking down barriers in the path of men and women in every corner of this country hoping to take a chance, follow a dream, and start a business.”

Other proposals from the administration as part of its budget plan include an expansion of the New Markets Tax Credit, which aims to encourage more small businesses and entrepreneurs in disadvantaged communities. The Treasury Department plans to simplify the rules for small businesses to access up to $5 billion in tax credits for private investment in lower-income communities.

The Treasury Department will host a March 2011 conference to explore access to capital for small businesses. A broad range of options to help small businesses access the capital they need to expand and grow will be discussed at the conference, according to the White House, and more details on the conference will be released in the coming weeks.

The administration also highlighted a new Startup America initiative led by America Online co-founder Steve Case. Intel and IBM also announced new investments in small businesses, while Facebook will be hosting Startup Days events at cities across the U.S.

The Network for Teaching Entrepreneurship, a nonprofit that provides a first-class entrepreneurship education for at-risk high school students from low-income communities, is launching new programs supporting young entrepreneurs and their teachers. Ernst & Young LLP will honor NFTE youth entrepreneurs at regional Ernst & Young Entrepreneur of the Year Award galas across the country to bring attention to the next generation of young entrepreneurs.

The Small Business Administration will also direct $2 billion in existing guarantee authority over the next five years to match private sector investment funding for startups and small firms in underserved communities, as well as seed and early-stage investing in firms with high growth potential, through its Small Business Investment Company program.

Together, the SBA and the Department of Energy will boost their mentorship for cleantech startups, while the Veterans Administration is launching new training programs for veterans who want to start new businesses.

The Department of Commerce will expand the i6 Challenge to help foster the commercialization of clean technologies. The Commerce Department is also finalizing a plan to allow entrepreneurs to request faster review of their patents, an initiative that should lower patent pendency times overall and speed the deployment of new ideas to the marketplace.

As reported on : http://www.irs.gov/newsroom/article/0,,id=106429,00.html 

IRS Tax Tip 2011-20, January 28, 2011

The Earned Income Tax Credit is a financial boost for workers earning $48,362 or less a year. Four of five eligible taxpayers filed for and received their EITC last year. The IRS wants you to get what you earned also, if you are eligible.

Here are the top 10 things the IRS wants you to know about this valuable credit, which has been making the lives of working people a little easier for 36 years.

1. As your financial, marital or parental situations change from year to year, you should review the EITC eligibility rules to determine whether you qualify. Just because you didn’t qualify last year, doesn’t mean you won’t this year.
2. If you qualify, the credit could be worth up to $5,666. EITC not only reduces the federal tax you owe, but could result in a refund. The amount of your EITC is based on your earned income and whether or not there are qualifying children in your household. The average credit was around $2,100 last year.
3. If you eligible for EITC, you must file a federal income tax return and specifically claim the credit – even if you are not otherwise required to file.Remember to include Schedule EIC, Earned Income Credit when you file your Form 1040 or, if you file Form 1040A, use and retain the EIC worksheet.
4. You do not qualify for EITC if your filing status is Married Filing Separately.
5. You must have a valid Social Security Number. You, your spouse – if filing a joint return – and any qualifying child listed on Schedule EIC must have a valid SSN issued by the Social Security Administration.
6. You must have earned income. You have earned income if you work for someone who pays you wages, you are self-employed, you have income from farming, or – in some cases – you receive disability income.
7. Married couples and single people without children may qualify. If you do not have qualifying children, you must also meet the age and residency requirements as well as dependency rules.
8. Special rules apply to members of the U.S. Armed Forces in combat zones. Members of the military can elect to include their nontaxable combat pay in earned income for the EITC. If you make this election, the combat pay remains nontaxable.
9. It’s easy to determine whether you qualify. The EITC Assistant, an interactive tool available on the IRS website, removes the guesswork from eligibility rules. Just answer a few simple questions to find out if you qualify and estimate the amount of your EITC.
10. Free help is available at Volunteer Income Tax Assistance sites and IRS Taxpayer Assistance Centers to help you prepare and claim your EITC. If you are preparing your taxes electronically, the software program you use will figure the credit for you. To find a VITA site or TAC near you, visit http://www.irs.gov.

For more information about the EITC, see IRS Publication 596, Earned Income Credit. This publication – available in both English and Spanish – can be downloaded from the IRS website or ordered by calling 800-TAX-FORM (800-829-3676).

Links:

• EITC Assistant
• Earned Income Tax Credit
• Publication 596, Earned Income Credit (EIC) (PDF 373K)
• Free File
• Tax Topic 601, Earned Income Credit

Starting January 1, 2011, if you get a 1099 for rental income, you will have to issue Form 1099-Misc to service providers. Read more