Taxes

Damaged by Hurricane Sandy? Let Your Employer Know

November 12, 2012 by Admin

The IRS has alerted employers and other taxpayers that because Hurricane Sandy is designated as a qualified disaster for federal tax purposes, qualified disaster relief payments made to individuals by their employer can be excluded from taxable income. Qualified disaster relief payments include:

Amounts to cover necessary personal, family, living or funeral expenses that were not covered by insurance
Expenses to repair or rehabilitate personal residences or repair or replace the contents to the extent that they were not covered by insurance

Another result of the Qualified Disaster status is that employer-sponsored private foundations may provide disaster relief to employee-victims without affecting their tax-exempt status.

IRS Offers Relief to Victims of Hurricane Sandy

November 5, 2012 by Admin

In the aftermath of Hurricane Sandy, the IRS have taken action to aid those affected by the storm. It has postponed various tax filing and payment deadlines that occurred starting in late October to February 1, 2013. These include:

Fourth quarter individual estimated tax payment
Payroll and excise tax returns
Tax-exempt organizations required to file Form 990 with a deadline between October 31, 2012 and January 31, 2013

In addition, the IRS is waiving failure-to-deposit penalties for federal payroll and excise tax deposits normally due on or after the disaster area start date. Taxpayers now have until November 26, 2012 to remit and avoid penalties.

Thus far, IRS filing and payment relief applies to Atlantic, Bergen, Cape May, Essex, Hudson, Middlesex, Monmouth, Ocean, Somerset, and Union counties in New Jersey. To view included counties in New York and Connecticut or for more information click here: IRS Tax Relief for NJ, NY & CT Hurricane Sandy Victims

Swiss Banks Looking to Drop American Customers

October 26, 2012 by Admin

If you’re an American citizen and own a Swiss bank account, there’s a good chance you’ll be receiving a letter from the Swiss bank politely asking you to take your business elsewhere. A pending U.S. regulation, known as the Foreign Account Tax Compliance Act, or Fatca, requires foreign banks to identify Americans among their clients and to provide their financial information to the Internal Revenue Service. A devastating penalty equivalent to 30% of a bank’s U.S. income could be assessed if even one person is overlooked. Swiss banks are particularly on edge, as the U.S. has alleged that 11 Swiss banks have helped Americans avoid paying taxes. As a result they have begun ushering American clients out or limiting the range of products offered to them. The administrative cost of complying with the law, given the relatively small number and size of U.S. accounts, just isn’t worth it. While the impact can already be felt in Switzerland, banks world-wide are also concerned about the complexity of the new rules, and the difficulties and costs involved with Fatca, whose full enactment is viewed as inevitable.

Thinking about Selling a Vacation Home? Get it Done Before 2013

September 21, 2012 by Admin

2012 is entering its final quarter, and that means it’s time to start year-end tax planning. This year presents a bigger challenge than most, as the Bush-era tax cuts are set to expire unless Congress takes action soon. If the tax cuts expire it will result in higher tax rates for individuals, including capital gains and dividends, as well as higher estate tax rates. [Read more…] about Thinking about Selling a Vacation Home? Get it Done Before 2013

NJ Court Rules: Non-Immigrant Workers Ineligible for Unemployment Benefits

September 2, 2012 by Admin

Under N.J.S.A. 43:21-4(c), to be eligible for unemployment benefits one must be “available for work”. An interesting question arose in Mukatoff v Board of Review with regard to non-immigrant workers.

In order to work as a non-immigrant one must obtain a written work authorization from the Department of Homeland Security (DHS). To obtain this authorization one must present appropriate documentation by the prospective employer. Once authorized by the DHS, he or she may only work for that identified employer. This poses a question. If that non-immigrant is subsequently laid off, does the lack of authorization to work for another employer exclude one from being considered “available for work” and therefore disqualify them from receiving unemployment benefits? [Read more…] about NJ Court Rules: Non-Immigrant Workers Ineligible for Unemployment Benefits

NJ Cosmetic Tax Phase Out Has Begun

August 5, 2012 by Admin

Medical practitioners and dentists in New Jersey offering cosmetic procedures, such as electrolysis or tooth whitening, are required to pay a cosmetic tax. The tax, which began in 2004, is on any cosmetic procedure performed in order to improve the patient’s appearance without significantly serving to prevent or treat illness or to promote proper functioning of the body. Gross receipts from such procedures were taxed at a rate of 6% until this year. [Read more…] about NJ Cosmetic Tax Phase Out Has Begun