Today, the IRS announced a plan to help taxpayers who: (1) are unemployed at least 30 consecutive days during 2011 or in 2012 up to the April 17 deadline; OR (2) are self-employed but have reduced business income of at least 25% in 2011. Under the plan, qualifying taxpayers can file IRS Form 1127A which will give a 6 month grace period (until October 15, 2012) for the qualifying taxpayer to pay his or her outstanding tax bill. To qualify for relief, the eligible taxpayer’s income cannot exceed $100,000 if filing as [...]

As the March 15 corporate tax filing deadline approaches, we are reminding small businesses to take advantage of the small business health care tax credit. This is a tax credit not a mere deduction. The tax credit is part of the 2010 Affordable Care Act (more commonly known as ObamaCare). The tax credit is worth up to 35% of a small business's premium costs (25% for tax-exempt employers). In 2014, this rate increases to 50% (35% for tax-exempt employers). Again, this is a TAX CREDIT not a mere deduction.

Eligible small employers will need to complete [...]

Beginning January 1, 2012, the IRS standard mileage rate deduction for business use of a vehicle is 55.5 cents per mile. In 2011, the IRS standard mileage rate was 51 cents per mile for January through June of 2011. Beginning July 1, 2011, the IRS standard mileage rate deduction for business use of a vehicle was increased from 51 cents per mile to 55.5 cents per mile.Pursuant to California Labor Code §2802, California employers are required to reimburse employees for all expenses incurred by the employee in performing their duties, including expenses for [...]

For 2011, the IRS standard mileage rate deduction for business use of a vehicle was 51 cents per mile. Beginning July 1, 2011, the IRS standard mileage rate deduction for business use of a vehicle is increased from 51 cents per mile to 55.5 cents per mile.

Pursuant to California Labor Code §2802, California employers are required to reimburse employees for all expenses incurred by the employee in performing their duties, including expenses for travel, dining, and mileage (other than to and from work/home). The employee cannot agree to waive this right to receive reimbursement.

The California [...]

For the first time, self-employed individuals will be able to deduct the cost of their health insurance premiums when computing the amount owed in self-employment tax.

In the past, small business owners were not allowed to deduct the cost of health insurance when calculating self-employment tax. Under the Small Business Jobs Act of 2010, and subject to specific statutory restrictions (i.e. deduction is not available [...]