Current Tax News
Avoid account inactivity for extended periods
You may assume it's safe to deposit money in a bank — or buy stocks or other financial assets — and then simply leave your account alone. It's not. Under most state laws, if you don't initiate a transaction or communicate with the financial institution about it, the account is considered dormant. After three years of inactivity, your assets typically can be turned over to the state. click here for full article
Supreme Court Upholds Exemption for In-State Muni Bond Interest
The U.S. Supreme Court has upheld the traditional state tax treatment of municipal bond interest, under which a state exempts from its corporate and personal income taxes the interest on bonds issued by the state and its own localities, but taxes the interest on bonds issued by other states and their localities. The issue arose after the Kentucky Supreme Court case ruled that the different treatment of in-state and out-of-state muni bond interest was unconstitutional. Levering & Hvasta filed a number of refund claims with the State of California in anticipation of the U.S. Supreme Court ruling on the issue. Those refund claims are now moot and will not result in refunds.
Tax Rebate Info Posted on IRS Website
Starting in May, the Treasury will begin sending economic stimulus payments to more than 130 million individuals. The stimulus payments will go out through the late spring and summer.
2008 Stimuls Act Provides Benefits for Business
Two important provisions included to stimulate the econonmy are aimed at businesses and are intended to encourage investment in new property and equipment. These include a 1 year increase in the Section 179 expense that allows a current deduction for qualifying property $250,000, and 50% bonus depreciation for qualifying property that is purchased new (not used) and placed in service during 2008.
New E-Mail and Phone Scams Use IRS Name
http://www.webcpa.com/article.cfm?articleid=26645
IRS Is Likely to Get More Resources to Combat Cheating on Tax Returns
http://online.wsj.com/article/SB120225460358145477.html
Who is likeliest to get audited -- and tips for avoiding scrutiny
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/01/09/BU2AUBCA5.DTL
IRS Sets Rules for Charitable Contributions
http://www.webcpa.com/article.cfm?articleid=26385
Disaster Recovery Resources
In addition to the information from the IRS and Franchise Tax Board, the California Society of Certified Public Accountants has a very informative area on their web site regarding disaster preparedness and recovery at:
CalCPA Disaster Recovery Resources
Other Topics
Tips For New Business Owners
We are often asked by new business owners what is important when it comes to managing the finances of their business, recordkeeping requirements, things they need to know about taxes. This article, Quick Tips for New Business Owners, addresses some of the more common questions we're asked:
Online Auction Sellers
If you are an online auction seller, you may have tax responsibilities. You may be subject to liabilities for income tax, self-employment tax, employment tax, or excise tax. Your sales may result in capital gains, nondeductible personal losses, or you may have ordinary business income. While few people were ever affected by the auction rules, on-line sales sites such as eBay™ has changed that. See the IRS site for information about Online Auction Sellers.
Levering & Hvasta, CPAs LLP offers the above information for general guidance purposes only. Information provided on this web site should not be relied upon without consulting a competent tax or other relevant financial professional. Please do not hesitate to contact us if you have any questions or would like to meet with us to dicuss your tax or financial planning matters.
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©2008 Levering & Hvasta, CPAs LLP
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