Important Federal Tax Developments for 2011

The last few years have been extremely busy in terms of education for your accountants.

During the third quarter of 2011, there were many important federal tax developments -- enough to keep the team at BCWS hopping to stay on the front lines in terms of education.

Here are highlights of some of the most important updates:

Federal taxes

President Obama unveiled a number of tax proposals and revenue raisers in September as part of his proposed American Jobs Act.

• The Act proposes to extend and enhance the 2011 employee-side payroll tax cut
• Expand tax credits for hiring military veterans
• Extend 100 percent bonus depreciation
• The Jobs act proposes NOT to extend the Bush-era tax cuts for higher income taxpayers.

 

Worker classification

The IRS unveiled the Voluntary Classification Settlement Program (VCSP) in September. The VCSP is open to employers that currently treat their workers as independent contractors and that want to prospectively treat the workers as employees. The VCSP provides a reduced penalty framework and audit protection to qualified employers.

Cell phones

• The IRS announced that employer-provided cell phones, provided primarily for noncompensatory business reasons, will not be treated as taxable compensation to employees and that personal use is nontaxable.
• Likewise, employer reimbursements to employees who use their personal cell phones for business will not be taxable.

Exempt organizations

The IRS issued final regulations to implement redesigned Form 990, Return of Organization Exempt From Income Tax. The final regulations reflect proposed regulations and provide for the elimination of the advance ruling process for new Code Sec. 501(c)(3) organizations.

Health care reform

• The Sixth Circuit Court of Appeals upheld the constitutionality of the individual coverage mandate in the Patient Protection and Affordable Care Act (PPACA).
• In Thomas More Law Center v. Obama, CA-6, June 29, 2011, the Sixth Circuit found the health care reform law was a reasonable exercise of Congress’ authority to regulate commerce.
• However, the Eleventh Circuit Court of Appeals struck down the individual mandate in the PPACA in August.
• The Eleventh Circuit found that Congress cannot require individuals to enter into contracts with insurance providers.

 

Tax collection

The IRS increased its enforcement revenue in fiscal year (FY) 2010, the Treasury Inspector General for Tax Administration (TIGTA) reported in August. FY 2010 gross collections included approximately $1.2 trillion from individual taxes, $800 billion from employment taxes and $300 billion from corporate taxes.

The information here was culled from various issues of the CCH Federal Tax Weekly. For a complete resource for all the Federal Tax Developments for 2011, click here or here.

If you have any questions about these updates, or any tax questions, please contact our office.

 

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8 Easy Ways To Grow Your Social Media Footprint

In today’s economic climate, finding and retaining great people and great clients are two top concerns for any business. Social media is bridging the gap and helping businesses connect on both fronts.

Look at this article from Business Week back in 2008 – Social Media Will Change Your Business. There’s a fun recap at how far things have come since 2005. (Light years!) Now compare it to the L.A. Times article this week, Social Media Giving Small Firms A Boost, which cites social media as a portal to success for small businesses.

Below are eight low-cost tips to help you expand your current social media footprint. We'd love to hear from you in the comments section about how many of these you're already using.

1.  After-hours Voicemail If you haven’t added your Facebook address and Twitter username to your voicemail, you are missing out on some cheap easy marketing. Hundreds of people hear your voicemail each year and could be connecting with you online.

2.  Your website Does your company’s website have clear links to your Facebook, Twitter and LinkedIn Company page? What about to your blog? If someone finds your website, you want to make it easy for them to find the rest.

3.   Printed materials Do you have your social media information printed at the bottom of each letter and brochure you put out? What about on your business cards? It’s easy to make room in the address block for something so important. Try including this the next time you print any company materials.

4.   Email Signature Do you have all your social media icons in the signature blog on your email? It’s amazing how many people will click that link if you make it easy.

5.   Email marketing It’s a good idea to build an email list and use it for some email marketing. I didn’t say spamming. Once or twice a month is fine for connecting. Once a day is not. Be sure to include all your links as well as a periodic promotion. You’ll be surprised at the results. Tools like Constant Contact can track this for you.

6.   Signage at your workplace Do you have a sign up at your front desk or in your window telling your customers how to connect with you via social media? It’s likely you’re missing out on some contacts you could have made. When clients are waiting in your lobby, you’ve got a pretty captive audience.

7.   Business presentations Do you or other team members do any public speaking? Your social media contact information should be on each slide, in any handouts you provide and should also be verbalized by the presenter at the beginning and end of the presenation.

8.   Cross-promotion between platforms It’s a very good idea to be sure that your customers and potential employees can find you anywhere. The easiest way to do this is to list your social media information on each platform – Twitter, LinkedIn, Facebook and your blog.

Remember, “Content is King” – nothing will replace good content. But Social Media is Queen these days and small businesses should cast their social media net as widely as they can.

Are there any social media marketing tips you’d like to share? Which platform has worked best for your business?

BCWS would like to connect with you!

Please come join us at:

Our BCWS Blog or Our Website
On Facebook

BCWS’s Company Profile on LinkedIn On Twitter