Individual Tax Updates

IRA Contribution Limits: 2009 IRA contribution amount is $5,000 with catch up provision of $1,000 for an individual age 50 or older. Allowable contributions to traditional IRAs are always deductible if taxpayer (and spouse, if married) is not an active participant in...

Tax Updates

Business Tax Updates: Penalty Increase: The penalty for failure to file federal partnership or S corporation returns is increased to $195 per partner or shareholder for each month for up to maximum of 12 months for tax years beginning after December 31, 2009. New...

Individual Tax Incentives

The American Recovery and Reinvestment Act of 2009 has the following provisions. “Making Work Pay” Credit This is a new but temporary refundable credit for year 2009 and 2010. Qualified taxpayers will either take the credit through a reduction in the amount of income...

Tax Audits

Mortgage Interest Audits As many individuals are not complying with the mortgage interest deduction rules, there has been an increase in audits in this area. Qualified residence interest is paid during the year on acquisition debt or home equity indebtedness....

Important New Acts

Restaurants Property & Leasehold Improvements The Emergency Economic Stabilization Act extends 15-year depreciation on qualifying restaurant property and leasehold improvements through 2009. In addition, it changes the definition of restaurant property to include...