Year-End Tax Planning
As the 2010 tax year winds down there is still time to reduce this year’s tax bill, and plan for the 2011 tax year. Congress now has little time to enact new legislation to change the expiring tax cuts (see Upcoming Legislation discussion below), year-end planning, such as shifting income and deductions between this tax year and the next, may have more impact than ever on maximizing your tax savings. Follow the link for year-end tax savings tips. These examples vary with the taxpayer. If you would like to discuss any of the examples, or other possible actions, please contact us.
Small Business Jobs and Credit Act Of 2010
The Small Business Jobs and Credit Act of 2010 (the Act), signed into law on September 27, 2010, contains a number of valuable tax breaks. Two of the Act’s biggest incentives are extended and improved rules for depreciation expenses.
President Signs "Plain Writing Act of 2010"
In good news for taxpayers, the President signed into law the Plain Writing Act of 2010 on October 13, 2010. The Act requires all federal agencies, including the IRS, to write their rules and notices so that the intended audience (i.e. taxpayers) can clearly understand them. Some critics of the new law have stated that the new requirements may be difficult or impossible to enforce. Time will tell.
Congress is scheduled to return to Washington on November 15 after the midterm election recess. Congress has a lot on its plate, including expiring tax cuts, alternative minimum tax patch and other tax extenders, carried interest legislation and estate tax.
IRS Fast Track Settlements
Polsinelli Shughart attorneys in Phoenix and Kansas City recently worked together on an innovative IRS mediation procedure. The IRS Fast Track Settlement, a process for prompt resolution of business tax issues, formerly was used only for very large tax cases.
To preview the entire edition of our Tax News Alert, click here.