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NJ DOL Employer Contribution Deadline -Aug 22nd!

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 Beginning 2012, employers no longer receive an annual paper Notice of Employer Contribution Rates. Instead, the notice is now accessible through the Tax Web Enabled System (TWES). As a result of this change, it’s urgent that you check your TWES account as soon as possible. The new rates were posted as early as July 23, and there’s a 30 day deadline (from the date of “mailing”) to make a voluntary contribution. In many circumstances a voluntary contribution represents an excellent opportunity to reduce labor costs.  For more information regarding TWES check out our blog at: http://ua-cpas.com/blog/2012/01/nj-unemployment-rate-notice/ [Read more…] about NJ DOL Employer Contribution Deadline -Aug 22nd!

Property Settlement Agreement Missing “Little” Detail makes for Big Consequences

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Overlooking a minute detail in the Property Settlement Agreement (PSA) is by no means as minor as it may seem. It often results in much grief, wasted time, and squandered money – for both litigants, as well as taxpayers funding the judicial system. In Dawn Zera v. Kevin Krushinski, an incomplete PSA resulted in just that.

Dawn and Kevin were divorced in Jan. 2006. The judgment of divorce (JOD) failed to designate who could claim the children as dependents on his or her tax return. While the JOD ended the marriage, an ensuing nightmare was just beginning. More than six long, costly years of litigation later, on May 22, 2012, the NJ Supreme Court ruled that the parents alternate odd and even years.

The Moral: Divorcing spouses must scrutinize the PSA, making sure the lawyers covered everything. It is wise to have a tax accountant review the PSA for all tax issues.   The investment of time and effort may spare you loads of grief.      

 

Physicians’ Needles are Subject to NJ Sales Tax (Ouch!)

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A common tax question asked by physicians is whether hypodermic needles and syringes purchased for use in providing patients with medical care are subject to sales and use tax or not. The answer may sting a little.  N.J.S.A. 54:32B-8.1c states that sales of supplies “purchased for use in providing medical care for compensation, but not transferred to the purchaser of the service….”are taxable. Hypodermic needles and syringes would fall under that category, so they are taxable.

NJ Cosmetic Tax Phase Out Has Begun

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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

Separated Husband’s Will Upheld by Court despite Spouse’s Court Order

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In Estate of Jon den Hollander, an interesting question arose regarding a court order restricting a separated spouse from dissipating marital assets. This order is often established to prevent the deprivation of one’s spouse of equitable distribution. What if the separated husband dies before the divorce is finalized with a will directing his assets to those other than his spouse? Would that be considered, “dissipating marital assets” and therefore be in violation of the court order? [Read more…] about Separated Husband’s Will Upheld by Court despite Spouse’s Court Order

Got Unreported Foreign Assets? Get Out of Jail Free

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The FBAR: Who Should File? Do you have income overseas you forgot to report? Did Grandpa leave you his foreign bank account when he passed away? If you have foreign bank accounts holding more than $10,000 in the aggregate anytime during the year, you are required to file an FBAR (Report of Foreign Bank Accounts) by June 30th of the following year. It doesn’t matter whether the foreign accounts generate income or not; just owning them, or having signature authority, requires you to file.

What’s the Big Deal? Failure to file can result in serious consequences. The sanctions for not completing the FBAR include numerous severe civil penalties and potential prosecution followed by a term in federal prison. [Read more…] about Got Unreported Foreign Assets? Get Out of Jail Free