As always, the goals of our firm are focused on helping you plan effective tax strategies and save money.
To help achieve these goals, we are pleased to provide you with our 2011/2012 Online Tax Planning Guide. In this year’s guide, which is offered through an easy to navigate web-based application, we offer essential information and resources on the latest tax law changes and opportunities.
Some tax incentives are not permanent, so it is important to understand the timeframe available to benefit from these temporary changes. In this guide we review key dates for the best savings and offer several methods to help minimize your tax bill.
As well as covering efficient tax planning for both the present and future, we highlight significant reform making an impact in 2011 and 2012, predominantly the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 (2010 Tax Relief Act).
For businesses, this includes:
- an increases in bonus depreciation for 2011 and extension of enhanced Section 179 expensing through 2012
- extension of the research tax credit and the Work Opportunity Tax Credit through 2011
- a one-year payroll reduction for employees and extension of the increased transit benefit exclusion through 2011
For individuals, this includes:
- a two year extension of reduced tax rates on individual income and dividends/capital gains
- a reinstatement of the estate tax with a lower tax rate and a higher exemption amount for 2011 and 2012 only
- a reunion of the gift tax and the estate tax
- a two-year extension of marriage penalty relief, education tax breaks and other tax breaks for families
Please note: This planning guide was compiled by a third party and then thoroughly and carefully reviewed by BNKJ professionals. As a result of our review we would like to make the following clarification:
- The information under “BUSINESS DEDUCTIONS” which discusses Inventory Issues currently states “ Many businesses with $10 million or less in gross receipts can now use the cash method of accounting, and not be required to account for inventory.” We believe this is the rare exception rather than the rule, and that the vast majority of entities must have average annual gross receipts that do not exceed $1 million to use the cash method.
We encourage you to review this tax guide and call us with any questions. If you would like to join our mailing list so you will be notified of any updates or revisions to this tax information, or if you would like a hard copy of the tax planning guide, please email info@bnkj.com.
In addition to this resource, the Internal Revenue Service has created a federal tax guide Publication 17, which can be found at http://www.irs.gov/publications/p17/index.html.
Our firm is committed to helping you through the tax planning process from start to finish. We hope you will take advantage of our resources in order to maximize your tax savings.
Our warmest wishes for a bright and prosperous 2012!
We are pleased to announce that Babush, Neiman, Kornman & Johnson, LLP– for the third year in a row! – has made the Bulldog 100 list, which honors and recognizes the 100 fastest growing businesses that are owned and/or operated by University of Georgia Alumni.
Click here to view the complete 2012 Bulldog 100 list.
BNKJ VOLUNTEERS!
BNKJ recently held its periodic Volunteer Day, this time helping to beautify the Reading Garden near the Sandy Springs Library, just over a mile from BNKJ’s office.
We will be holding Volunteer Days in the future at this location to help maintain the garden.
Now Could Be a Good Time to Reclassify Workers
In a new program aimed at giving employers a low cost, fair chance to correct worker misclassifications, the Internal Revenue Service (IRS) has unveiled the initiative Announcement 2011-64, which allows employers who prospectively treat their workers as employees to make a minimal payment covering past payroll tax obligations rather than waiting for an IRS audit.
The program, just launched on September 21, will save employers with misclassification problems the ramifications of back taxes, penalties, and interest for up to three years of the misclassification; in addition, taxpaying employees will be able to pay about 10 percent of the taxes for the most recent of those years, according to IRS Commissioner Douglas Shulman’s comments at a recent news briefing.
This program, called the Voluntary Classification Settlement Program (VCSP), eliminates all interest and penalties that previously would have come with correcting misclassification of workers, and notably provides that taxpayers will not be audited on classification issues for prior years. The IRS says it hopes it is providing the incentive needed to convince employers to “do the right thing.”
If you have any questions as you are assessing whether or not to reclassify your workers, please do not hesitate to contact Teri Cloud at 770-261-5447 or tcloud@bnkj.com so she can direct you to the proper person, or of course you can contact any of us at BNKJ for assistance.
It is our pleasure to congratulate our partner Dick Babush, who is the 2010 recipient of the Georgia Planned Giving Council’s Greater Good Award. Dick was nominated by the Jewish Federation of Greater Atlanta.
This prestigious award, which carries a $2,000 gift to a charity of the winner’s choice, recognizes exemplary service among Georgia's charitable advisors. Nominees have served at least 10 years in the field of planned giving and uphold superior standards in the field, increasing the quality and quantity of planned gifts to charities in Georgia. Past award winners include Ben White in 2005, Henry Bowden in 2006, Stephen M. Berman in 2007 and Zoe Hicks in 2008.
In choosing the winner, the selection committee cited Dick’s work in helping his clients meet their charitable goals, and benefitting scores of Georgia charities in the process. They also recognized Dick’s dedication to fundraising efforts on behalf of charitable organizations.
The Georgia Planned Giving Council is the statewide affiliate of the National Committee on Planned Giving, now known as the Partnership for Philanthropic Planning. Its membership consists of non-profit professionals, professional advisors and others throughout Georgia committed to promoting planned giving to charitable organizations. |
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BNKJ professional Valerie Turley gets traffic relief for her fellow co-workers and building mates. Thank you Valerie for decreasing our commute time!
http://www.11alive.com/News/Commuter_Dude/192171/326/Drivers-Sitting-at-Red-Light-Forever
BNKJ in the News • Recent News • Tax Update
