SOUTH DAKOTA DEPARTMENT OF REVENUE:
When you click on a link below, it will take you to the South Dakota Department of Revenue & Regulation website.
IRS NEWS FOR BUSINESS - February 2012
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IRS NEWS FOR BUSINESS - January, 2012
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IRS NEWS FOR BUSINESS - November, 2011
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IRS NEWS FOR BUSINESS - October, 2011
Due to a post office closing, please note this address change for Taxpayer Advocate Service in Aberdeen:
IRS - TAS / 115 4th Avenue SE - Suite 413 / Aberdeen, SD 57401-4360
> Tax relief will be given for victims of flooding and other disasters in Montana, Nebraska, North Dakota, and South Dakota. The IRS automatically encodes accounts of all taxpayers who live in the affected zip codes, in case relief is needed. If a person has recently moved into an affected zip code, or works in an affected zip code, they can self-identify by calling our Disaster Specialty Line at 1-866-562-5227. FEMA urges flood victims to call their toll-free number to register: 1-800-621-3362; TTY 1-800-462-7585 (6 am - midnight) www.fema.gov http://www.disasterassistance.gov/
> IR 11-90 A new round of outreach to small employers and tax preparers encourages them to review the new Small Business Health Care Tax Credit to see if they are eligible.
> View a Youtube video about how to deduct a home office, and more at IRS's YouTube Channel.
> A Direct Sellers webinar includes basic tax information for direct sellers including the nine factors used to determine if an activity is engaged in for profit. Other recent archived presentations will include Contractor Withholding by Government Employees and International Activities of Domestic Charitable Organizations.
> Recent Tax Tips include the following and more:
Tips for Employers Outsourcing Their Payroll
Keep Good Records Now to Reduce Tax-Time Stress
> The Departments of Health and Human Services and Treasury today took the next steps to establish Affordable Insurance Exchanges – one-stop marketplaces where consumers can choose a private health insurance plan that fits their health needs and have the same kind of insurance choices as members of Congress.
> Reinstatement of Airline Ticket Taxes The IRS provides a statement on the reinstatement of the airline ticket excise tax. Notice 11-69 provides guidance.
> Fiscal Year 2012 per diem rates are now available. These rates are effective October 1, 2011.
> In response to customer feedback, IRS has updated and expanded the information on The Use of Electronic Accounting Software Records; Frequently Asked Questions and Answers page on IRS.gov. For further information, also see Headliner 303.
> The SD Center for Enterprise Opportunity is having the second annual Women's Business Conference, "From High Heels to High Places" on October 26, 2011, (8:30 - 3:30) at Rushmore Plaza Holiday Inn-Rapid City. Register by Oct. 12th Online or call 605-642-6435. Early Bird Registration: $90.
IRS NEWS FOR BUSINESS - September 2011
H 312 The Federal Unemployment Tax Act (FUTA) surcharge has expired the tax percentage is reduced.
IR 11-77 IRS Gives Truckers Three-Month Extension; Highway Use Tax Return Due Nov. 30. Truckers and other owners of heavy highway vehicles have until Nov. 30, 2011, to file their next federal highway use tax return, which is usually due Aug. 31. The Internal Revenue Service advised truckers and other owners of heavy highway vehicles that their next federal highway use tax return, usually due Aug. 31, will instead be due on Nov. 30, 2011
Disaster Areas in North Dakota, Montana, Oklahoma, Illinois and several other states have been declared for individual assistance. To find specific counties in affected states, go to FEMA, scroll down to the map, and click on the state in question. When you click on a listed disaster, you will see a tab for "Designated Counties". Reconstructing Records
Notice 11-60 provides relief to North Dakota from certain low-income housing credit requirements under §42 related to providing housing for disaster victims.
Phone forums, webinars, and workshops
A Phone Forum on retirement plan topics on August 25th.
Recordings of these recent webinars are now available on the IRS Video Portal:
> Reporting Foreign Financial Accounts on the FBAR
>
The Examination Process for Employment Tax Returns
IRS customers can place orders for the 2012 IRS Tax Calendar for Small Business and Self Employed, Publication 1518, beginning July 18. The calendars will ship in late-November. To order, go to the IRS Small Business Products Ordering page.
Interim guidance SBSE-05-0711-044 states the trust fund recovery penalty may be assessed against third-party payroll service providers, as well as the employer. While the employer is ultimately responsible for the payment of the entire tax, a Trust Fund Recovery Penalty, depending on the circumstances, can be assessed against any responsible party including the third-party payroll service provider. Employment Taxes and the Trust Fund Recovery Penalty
IR 11-73 Avoid Becoming Victims of Tax Scams. Taxpayers are encouraged to be on their guard against those who would encourage them to file tax returns with false claims to get refunds to which they are not entitled.
TRAVEL REIMBURSEMENTS: Announcement 11-42 advises taxpayers that the IRS intends to discontinue authorizing the high-low per diem method for substantiating lodging, meal, and incidental expenses incurred in traveling away from home. Beginning in 2011, the IRS plans to publish a revenue procedure providing the general rules and procedures for substantiating these expenses (omitting the high-low substantiation method) and a notice providing the special transportation rate. The IRS plans to discontinue publishing the per diem revenue procedure annually but will publish modifications as required.
IR 11-73 Avoid Becoming Victims of Tax Scams. Taxpayers are encouraged to be on their guard against those who would encourage them to file tax returns with false claims to get refunds to which they are not entitled.
There is a recently updated Audit Technique Guide on Business Consultants.
Form 14157 can be used to make a complaint about a tax preparer.
A North Dakota Prairie Family Business Conference, "Preparing Family Businesses for the Future" will be held on September 15th, 2011, at the Best Western Doublewood in Bismarck, ND.
SCORE in Sioux Falls will be having a seminar entitled "How to Really Start You Own Business" on Saturday, August 13, 2011 from 8 a.m. to 3 p.m.at the Ramkota Inn at I-29 and Russell Street in Sioux Falls, SD. Call 330-4243 to reserve your spot. The next seminar will be November 19 at the same location.
Join SCOREfor the FREE, 5-part, webinar series, Socially Successful: Simplifying Social Media for Your Business. This live webinar will be on every Thursday from August 4 to September 1, 2011 from 12-1 CT, to show you new ways to grow your business using social media
· August 4: Social Media, The BIG Picture
· August 11: The Five Steps To Social Media Success
· August 18: Top 20 Excuses For Not Using Social Media
· August 25: TraDigital Media, When Traditional Hits Social
· Sept 1: Every Social Media Question You Ever Had - Q & A
The 2011 Summer International Trade Forum will be held on August 24th & 25th, 2011 at the Holiday Inn-City Centre, 100 West 8th Street, Sioux Falls, SD. (8 a.m. both days).
It is conducted by the Great Plains International Trade Association, in partnership with the U.S. Department of Commerce, U.S. Small Business Administration, South Dakota Small Business Development Center, South Dakota District Export Council, Sioux Falls Development Foundation and Chamber of Commerce.
One of the featured Speakerswill be Suresh Kumar, Assistant Secretary for Trade Promotion and Director General of the U.S. & Foreign Commercial Service U.S. Department of Commerce International Trade Administration.
R.S.V.P. by MONDAY August 22nd to Rock Nelson: 605-338-3424 or rock@siouxfalls.com. Make checks payable via U.S. Mail to Great Plains International Trade Association at #1 West Weather Lane, Suite #400, Sioux Falls, SD 57104
IRS NEWS FOR BUSINESS - August, 2011
- IR 11-69 Starting July 1, the standard mileage rate for business miles driven is increased to 55.5 cents per mile. Announcement 11-40
- Tax Relief in Disaster Situations
- The following North Dakota counties have been declared a Federal disaster area for individual assistance: Burleigh, Ward, McHenry, Morton, and Renville.
- The IRS reminds restaurants that service charges added to a bill and paid to your employees are not considered tips for tax reporting purposes or for the 45B credit on Form 8846. These service charges constitute wages for purposes of social security tax, Medicare tax, and income tax withholding.
- The SCORE e-Business Now initiative provides free advice and mentoring to help small businesses grow using new technology.
- A 2011 South Dakota Marketplace will be held on July 26 and 27 at the Huron Event Center, funded by the USDA Rural Development.
- The Family Business Association will hold their 2011 North Dakota Family Business Conference on September 15th, 2011, in Bismarck. Register at http://www.fambus.org
- The latest news from the SD Department of Revenue and Regulation includes their upcoming workshops.
IRS NEWS FOR BUSINESS - July, 2011
- The Heavy Highway Vehicle Use Tax (Form 2290) is due to expire on Sept. 30, 2011. The tax should still be due for July 1, 2011 to Sept. 30, 2011 (for trucks first used in July, August or September 2011) at a rate of 25% of the tax normally due for the entire year, however the IRS is looking into several options as to how and when such a return needs to be filed. Visit IRS.gov/trucker on a regular basis for updated information.
- A webinar on Reporting Foreign Bank and Financial Accounts will be archived within a few weeks of its June 1st airing at www.tax.gov. File Form TD F 90-221, for Foreign Bank Account Recording (FBAR), by June 30. There are no extensions for FBAR forms.
- Headliner 313 A webinar on the Examination Process for Employment Tax Returns will be archived for viewing within a few weeks of its June 22 airdate at www.tax.gov.
- The IRS has tips to protect your tax documents during the tornado and flood seasons and against other disasters in this YouTube video. IR 11-59 The IRS encourages individuals and businesses to safeguard themselves against natural disasters by taking a few simple steps.
- The IRS mailed out several thousand Letters 4664 to indoor tanning service businesses who have not filed their excise taxes. Anyone who receives a letter should 1) Respond within the time frame specified. (30 days from date of the letter); 2) Keep copies of all correspondence; and 3) Refer to the IRS Indoor Tanning Services Tax Center for information.
EMPLOYERS
- Computing FUTA tax. Before July 1, 2011, the FUTA tax rate is 6.2%. After June 30, 2011, the FUTA tax rate is scheduled to decrease to 6.0%. If entitled to the maximum 5.4% credit, the FUTA tax rate after credit is 0.8% (0.6% after June 30, 2011.)
- Employers of Tipped Employees: A new line 5e was added to Form 941, Employer's Quarterly Tax Return, so certain employers can report previously unreported tip income that IRS has identified under tax code Section 3121(q). The line should only be used by employers when IRS has provided detailed information and amounts for reporting.
- Employers contracting with third-party providers for all or part of the payroll tax process should sign up for Electronic Federal Tax Payment System access to verify that deposits are made timely and accurately. Clients also should not change their tax address to the provider's address because the move can limit IRS's ability to contact the employer. Employers should ensure that third-party providers receive copies of notices or account information sent by IRS.
- Revenue Procedure 11-32 provides the 2012 inflation adjusted deduction limitations for annual contributions made to a health savings account (HSA) under section 223. For calendar year 2012, the annual limitation on HSA deductions for an individual with family coverage under a high deductible health plan is $6,250.
- The IRS explains how and when employers will need to report health insurance coverage on W-2s in this new YouTube video.
- Coming: Bar-coded W2s that can be scanned by a 2-D Bar Code Scanner. There are specifications at SSA's site.
- Form 5500 (Annual Return/Report of Employee Benefit Plan) is be filed electronically at http://www.efast.dol.gov/welcome.html
- IRS Criminal Investigation had three-year high in 2010 of recommended prosecutions for employment tax cases, with 83 percent of convictions leading to incarceration and an average 24-month sentence upon conviction -- both all-time highs.
- The third party reporting information center has up-to-date information to help you stay current with changes in information reporting. The 2011 Instructions for 1099s are available now.
Small businesses asked to participate in an IRS survey can check a new IRS.gov page, customer satisfaction surveys, to verify the legitimacy of the request.
Protect yourself and your clients from phishing, and verify that the call really is from the IRS.
Miss getting that paper form in the mail as a reminder to file? IRS.gov offers several options to ensure you don’t miss important filing dates. Install and customize the IRS CalendarConnector and new events will automatically update via the desktop tool. Or subscribe to the IRS tax calendar:
Using Outlook 2007
Using iCal
Import the calendar into Outlook 2003
North Dakota, Iowa, Wyoming, and Kansas were among the states having the lowest rate of small business failures according to Dun and Bradstreet.
IRS NEWS FOR BUSINESS - June, 2011
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The June 22 IRS Live broadcast will cover the employment tax examination process, taxpayer rights, settlement agreements and payment options.
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How the IRS focus on international tax compliance will affect retirement plans is the topic for a May 26 webinar. Watch e-news for future webinars on Safeguards, Offers in Compromise, and the Fresh Start program.
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The new FBAR Regulations (Foreign Bank and Financial Accounts) became effective on March 28, 2011. The new rules will apply to all reports required to be filed on June 30, 2011 with respect to foreign financial accounts maintained in calendar year 2010.
- Tax Tip 10-07, has Nine Tips on the 10 Percent Tax on tanning services and excise tax on indoor tanning services FAQs
- Form W-9 now has new tax classification checkboxes for s corporations, trusts and estates, due changes in TD 9504 concerning cost basis reporting rules for these entities, which repeal the "eyeball test". TD 9504 W-9 instructions
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The requirements for the start of of 3% withholding on contractor payments made by federal, state and local governments have been delayed for one year, until 2012.
- IR 11-50 Public comment is requested on issues relating to the shared responsibility provisions of the Affordable Care Act.
- Notice 11-36 solicits public input on several issues that will be the subject of future proposed guidance. In particular, the notice requests comment on possible approaches employers could use to determine who is a full-time employee for health insurance coverage purposes. The deadline for comments is June 17, 2011.
- Revenue Procedure 10-51 removed the limitation on the use of the standard mileage rate for “automobiles used for hire, such as taxicabs” effective 1-1-2011. The change is not retroactive. For years before 2011, the standard mileage rate is disallowed for automobiles used to transport persons or property, requiring these taxpayers to use actual costs.
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New Audit Technique Guides for Timber Casualty Loss and the Wine Industry are now available.
- Publication 4929, Withholding Flyer, is now available for ordering, and provides information on the withholding calculator.
- Publication 850 (EN/SP), English-Spanish Glossary of Tax Words and Phrases used in Publications by the IRS is now available.
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A Department of Labor chart lists the tip credit rate for specific states.
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Tax Receipt Too: With this tool, you can plug in the U.S. taxes you paid, and find out how it was allocated in the U.S. budget by percentage. http://www.whitehouse.gov/issues/taxes
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The United States Citizenship and Immigration Services (USCIS) has released a revised handbook on Form I-9 and the new E-Verify Self-check program. Questions regarding the I-9 process or E-Verify? Contact USCIS at (888) 464-4218 or E-Verify@dhs.gov. USCIS also offers free live webinars about the Form I-9 process. For E-Verify Self Check, employees should call (888) 897-7781 or email E-VerifySelfCheck@dhs.gov.
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The Social Security Administration has recently decided to stop mailing annual Social Security statements to workers to save money. The agency is working on an online option for younger workers to download their statements. Workers can get an estimate of their retirement benefits online using SSA’s retirement estimator tool. But this tool does not provide all the information that appears in the written statement, such as estimates of disability and survivor’s benefits and your complete earnings record. And young workers who don’t yet have the 40 credits of work necessary to qualify for a retirement payout can’t use the tool yet.
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South Dakota ranks as the most tax-friendly state for small businesses, according to data from the Small Business and Entrepreneurship Council, which based rankings on 18 measures, including income and property taxes as well as gas and other consumption-based taxes.
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The Great Plains International Trade Association, in partnership with the U.S. Department of Commerce, the South Dakota District Export Council and U.S. Small Business Administration, are co-hosting Wells Fargo Bank’s “Developing An Export Tool Chest Of Products To Assist U.S. Companies Who Plan To Be Successful Exporters”, to be held on Tuesday, May 24th, 2011, from 9 a.m. to 4:00 p.m. at the Hilton Garden Inn, Sioux Falls. It is free, but limited to the first 75 registered individuals. To register, contact Rock Nelson at rock@siouxfalls.com or phone (605)-941-6696.
IRS NEWS FOR BUSINESS - May, 2011
> H.R. 4, repealing the expanded 1099 requirements for businesses and rentals, was signed into law on April 14, 2011.
> Scammers have been targeting those who receive SSI or other governmental assistance, telling them that they are eligible for a tax rebate, and that the scammer will file a Form 1040X for a fee. If you hear of this in your area please notify TIGTA. (800-366-44848) or your Stakeholder Liaison, Anne.L.Hullinger2@irs.gov.
> Register for a free webinar entitled Small Business Advantage: Put Our Knowledge to Work for You, which will air on May 18, 2011. This webinar will be archived on the IRS Video Portal for later viewing approximately two weeks after the date of the event.
> IR 11-114 Those hiding assets offshore have through Aug. 31, 2011, to come forward.
> Revenue Procedure 11-26 provides guidance on the new 100 percent bonus depreciation.
>Some per diem amounts have changed for travel. Check gsa.gov for details
States affected include: AL, AR, CA, CO, IL, MI, MN, MO, MS, NY, OK, PA, TX, TN, and VA.
> New videos explain the federal tax lien discharge and subordination process. In some cases, a federal tax lien can be made secondary to another lien. Refer to Publication 784, How to Prepare Application for Certificate of Subordination of Federal Tax Lien.
>Employers of tipped employees should watch a webinar, first aired on Sept 29, on Collecting Employer Tax on Tips. It covers a newer program that the IRS has initiated that covers all tipped industries such as restaurants, cosmetology, transportation, valet parking, massages, etc. Under this program employers will receive a notice advising them that they have employees who filed Form 4137 and that the employer will now need to pay its share of the FICA taxes.
> The small business health care tax credit webinar is now available in the IRS Video Portal. Health Care Tax Credit.
> The free IRS CalendarConnector makes it easy to remember important tax and deposit deadlines on a daily, weekly or monthly basis.
> Do you
Twitter? Find IRS
YouTube videos and other social media.
> Northwest Iowa, Southeast South Dakota, and Northeast Nebraska will be having a Small Business Forum on Wednesday, September 14 at
the Western Iowa Tech Small Business Development Center, 4647 Stone Avenue, Iowa.
> Tax information for truck owners: The IRS has stopped sending Form 2290, Heavy Highway Vehicle Use Tax packages in the mail and has Information on filing Form 2290 electronically.
TAX TIPS for 2011
> Tax Tip 11-73 Eight Things to Know If You Receive an IRS Notice
> Tax Tip 11-5 Work From Home? Consider the Home Office Deduction
> Tax Tip 11-51 Health Insurance Tax Breaks for the Self-Employed
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IR 11-23 IRS Debunks Frivolous Tax Arguments
> IR 11-31 has interim guidance to employers on informational reporting on Form W-2 of the cost of the health insurance coverage they sponsor for employees. Notice 11-28
> IR 11-39 Beware the Dirty Dozen tax scams.
Register for South Dakota business education seminars .
The Futurallia Kansas City 2011” will be held on May 18–20, 2011. “Open the Door to a World of Business!” and features networking for international trade. www.futuralliakc2011.com
IRS NEWS FOR BUSINESS - April, 2011
● Flooding may be an issue in many parts of the country this year. Check out Disaster Assistance and Emergency Relief for Individuals and Businesses, There, you will find information on Preparing for Disasters.
● Businesses will no longer get Form 941, Employer’s Quarterly Federal Tax Return and other business forms in the mail. All IRS forms, schedules and related instructions are available on IRS.gov.
● The draft Form 941 with a new line 5e, Section 3121(q) Notice and Demand—Tax due on unreported tips, is now on IRS.gov.
● This month’s IMRS Hot Issues answers questions about Form 941 versus Form 944 filing requirements and more.
■ Register for webinars and phone forums.
● Recent tax tips include information about health insurance benefits for the self-employed. bartering, scams, and more.
● Install the IRS Calendar Connector and access Important Tax Dates for Small Businesses right from your desktop, even when you're offline. As new events are added, they will be automatically updated via the desktop tool. This customizable tool allows you to specify what types of events you wish to view (general, employer, excise, or all) and how you want them displayed (by day, week or month).
● Russell Research will be conducting a survey for the IRS of tax preparers on tax preparation
● IR 11-18 The Taxpayer Advocacy Panel member selected for SD is Cindi Williams of Summerset.
● IR 11-20 Major changes made to the lien process: The IRS announced a series of new steps to help people and businesses pay back taxes and avoid tax liens. IR 11-20SP
● Revenue Procedure 11-21 provides the depreciation deduction limitations for owners of passenger automobiles (including trucks and vans) first placed in service during calendar year 2011 and the amount to be included in income by lessees of passenger automobiles first leased during calendar year 2011.
Multi Lingual Materials
● IRS's Multi-Lingual gateway has information and tax glossaries in Spanish, Chinese, Vietnamese, Russian, and Korean.
Publication 1779 Independent Contractors
IRS NEWS FOR BUSINESS - March, 2011
■ Publication 4894 is a tri-fold that outlines the Affordable Care Act. It is only available on-line.
■ Register for webinars and phone forums. To get timely notice of planned events, subscribe to e-News for Small Businesses IRS Video Portal IRS Live Practitioner Events
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April 7, 2011
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Retirement Plan Seminar
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webinar
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to be determined
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Construction
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phone forum
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■ The IRS national phone forum on recordkeeping is now available as an audio file.
■ IR 11-8, IRS Launches the IRS2Go App for iPhone, Android; Taxpayers Can Check Refunds,
■ Tax Tips for 2011 includes IRS Tax Tip 11-17, Tax Help for Small Businesses and Self-Employed and many other topics.
■ Under the Small Business Jobs Act (SBJA) taxpayers can claim the self-employed health insurance deduction against 2010 SE tax if the insurance plan is established under the business and any of the following are true:
They were self-employed and had a net profit for the year, or
They received wages from an S corporation in which the taxpayer was a more-than-2-percent shareholder.
The deduction is not available if a self-employed individual is eligible to participate in an employer-subsidized health plan maintained by an employer of the taxpayer or the taxpayer’s spouse. The self-employed health insurance deduction may be limited and may not exceed the earned income derived from the trade or business to which the health plan is established. The 2010 Form 1040 Schedule SE and its instructions contain directions on how to calculate the deduction.
■ Small Business Jobs Act of 2010 Tax Provisions: Find the latest information on tax provisions designed to encourage investment and provide access to capital for businesses.
■ IR 11-13 Over 12,000 free tax preparation sites will be open nationwide this year providing vital tax preparation services for low- to moderate-income and elderly taxpayers. See attached file for listings.
■ Check out how you can participate in Open Government today.
■ Pacific Market Research (PMR), will be calling randomly selected small businesses for the IRS to take a survey from January until mid – April, 2011. The survey is strictly voluntary and all responses will remain anonymous. PMR will not ask any personal financial information.
■ Startup America is an initiative for empowering entrepreneurship. Small business can submit ideas.
■ The SBA now has community pages for businesses with bulletin boards, blogs, and idea sharing.
■ The Prairie Family Business Association is holding their 19th Annual Conference, entititled "Preparing Family Businesses for the Future" on March 31- April 1, 2011.
■ The Futurallia Kansas City International Business Development Forum, to be held on May 18th - 20th, 2011, is a great way to expand international trade contacts. For questions or to register, contact: email: Rock Nelson at Great Plains International Trade Association or call 605.338.3424 or (cell) 605.941.6696.
IRS NEWS FOR BUSINESS - February, 2011
■ Register for webinars and phone forums. To get timely notice of planned events, subscribe to e-News for Small Businesses IRS Video Portal IRS Live Practitioner Events
■ FS 11-02 has information about new and expanded deductions and credits that small businesses should consider when completing tax returns and making business decisions in 2011.
■ Small Business Jobs Act of 2010 Tax Provisions. The provision that allows self-employed people to deduct their health insurance when computing their SE tax is taken on Schedule SE, line 3.
■ The updated Beauty Shops Audit Technique Guide is now available as Chapter 10 in the Cash Intensive Businesses Audit Techniques Guide on the Audit Technique Guide Webpage.
■ IR 11-2 The National Taxpayer Advocate released her annual report to Congress. The Advocate is also soliciting suggestions for tax reform at http://www.TaxpayerAdvocate.irs.gov.
■ IR 10-127 Cost of Living and Inflation adjustments to tax benefits and tax brackets affected by recent legislation have been released by the IRS. Revenue Procedure 11-12 Revenue Procedure 10-40
■ Small Businesses:
- Represent 99.7% of all employer firms
- Employ half of all private sector employees
- Pay 45% of total U.S. private payroll
- Generated 65% of net jobs annually over the past 17 years
- Create more than 50% of the nonfarm private gross domestic product (GDP)
- Produce 13 times more patents per employee than large patenting firms
- Hire 43% of high tech workers (such as scientists, engineers, computer programmers and others)
- Make up to 97.5% of all identified exporters
Information courtesy of the Small Business Administration Office of Advocacy
■ The 2011 Prairie Family Business Annual Conference will be held March 31- April 1, 2011 in Sioux Falls.
PAYROLL
■ The latest edition of the Employee Plans News page is available.
■ IR 10-24 Information to help implement the 2011 cut in payroll taxes and withholding is now on IRS.gov Notice 1036 Publication 15
■ IR 10-128 Notice 11-5 FSA and HRA participants can continue using debit cards to buy prescribed over-the-counter medicines, if requirements are met.
■ Effective Jan. 1, 2011 banks will no longer accept federal tax deposit coupons.
Deposits must be made through the Electronic Federal Tax Payment System. Financial Management Service has more information and TD 9507 contains regulations. IR 10-92
YouTube video Final regulations require all federal tax deposits be made electronically beginning Jan. 1
■ Notice 10-94 delays the effective date of Revenue Ruling 06-57, which provides guidance to employers on the use of smartcards, debit or credit cards, or other electronic media to provide qualified transportation fringes.
IRS NEWS FOR BUSINESS - January 2011
■ Find Current schedules and registration and archived presentations on-line.
IRS will no longer be sending out e-mails announcing webinars and phone forums, so if you haven’t already subscribed to one or more of these e-newsletters, the time is now.
o e-News for Small Businesses
■ IR 10-119 Notice 10-88 provides the 2011 standard mileage rates for taxpayers to use in computing the deductible costs of operating an automobile for business, charitable, medical, or moving expense purposes. Revenue Procedure 10-51
■ IR 10-117 and Notice 10-82 provides guidance on the small employer tax credit under section 45R. Section III A, on page three, addresses spouses for purposes of this credit.
■ Revenue Procedure 10-47 sets out the cost limitations for expensing property under section 179 for taxable years beginning in 2010. The aggregate cost of any section 179 property a taxpayer may elect to treat as an expense cannot exceed $500,000. This amount is reduced by the amount by which the cost of the property placed in service during the year exceeds $2,000,000. These amounts reflect statutory changes made by the Small Business Jobs Act.
■ SCORE can use your help. SCORE is America's counselors for small business, and is a volunteer organization that mentors small businesses and start-ups. SCORE can use your help in a variety of meaningful ways, including counseling, teaching, and sharing your experiences as a small business person.
Contact: Sioux Falls chapter chair Cari Fossum at carilinn927@yahoo.com or 605- 759-6459
2329 N. Career Avenue, Sioux Falls
Rapid City chapter chair Steve Pigsley at spigsley@hotmail.com or 605-290-2151
525 University Loop, Rapid City
■ A Retirement Plans Navigator Toolkit is available. This contains a Web guide for small business owners to help choose, maintain and correct a retirement plan.
■ The IRS's various Twitter feeds, YouTube videos and e-newsletters provide news and information for taxpayers and tax professionals.
■ There is a new South Dakota site on health care reform.
■ Don't be a victim!
How to Identify and Report Suspicious Emails and Scams
El Robo de Identidad y su Record Tributario (SPANISH)
■ TD 9507 contains the final and temporary regulations explaining the discontinuance the paper Federal Tax Deposit coupon program. Depositors will be required to make their deposits electronically
From Social Security Administration
■ Business Services Online will begin accepting Tax Year 2010 W-2 on December 6, 2010.
■ For Social Security wage reporting question, look for the answers to many of your questions at their website. A "Frequently Asked Questions" link is in the left column.
■ Employer Reporting Assistance Email: employerinfo@ssa.gov
800-772-6270 Mon- Fri. 6 a.m. to 6 p.m. Central
■ BSO Technical Assistance Email: bso.support@ssa.gov
888-772-2970 Mon–Fri. 7:30 a.m. to 3:00 p.m. Central
■ Visit www.ssa.gov/employer/wage_reporting_specialists.htm for a complete list of Social Security experts that can help with complicated questions about submitting W-2s/W-3s
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South Dakota
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(303) 844-2364
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Denver, CO
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carolyn.sykes@ssa.gov
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IRS NEWS FOR BUSINESS - December 2010
■ Great Plains International Trade Association and US. Department of Commerce present "Incoterms 2010" Workshop on Friday, Dec. 17, 2010, at 8 a.m. - noon (CST). Attend either live at Holiday Inn City Centre, Sioux Falls, SD or via Webcast. For more information, contact rock@siouxfalls.com or call (605) 338-3424
■ IRS Letter 4631 will remind businesses who will be affected by the demise of paper FTD coupons. Some businesses may receive automatic enrollment packages in EFTPS. If these duplicate a business's their own enrollment, rite "cancel" or "delete" on the second one, sign it and date it and mail it back.
■ IR 10-103 The draft Form W-2 for 2011 has been released. Additionally, the new requirement for employers to report the cost of coverage under an employer-sponsored group health plan has been made optional for 2011. Notice 10-69 provides that reporting the cost of coverage under an employer-sponsored group health plan on Form W-2, Wage and Tax Statement, will not be mandatory for Forms W-2 issued for 2011. The IRS has determined that this relief is necessary to provide employers the time they need to make changes to their payroll systems or procedures in preparation for compliance with the new reporting requirement.
■ 2011 Cost of Living Changes: IR 10-108 Pension limitation amounts for tax year 2011 are now available. Many limits remain unchanged; see the COLA Table. Revenue Procedure 10-40 provides the cost-of-living adjustments to certain items for 2011 as required under the Internal Revenue Code.
■ You can view workshops, both upcoming and archived presentations, including Recordkeeping (Dec. 1), Collecting Employer Taxes on Tips/. See all Archived video presentations at the IRS video portal.
■ Headliner Volume 303 In audit situations, the IRS now accepts taxpayer records in electronic formats, such as Quickbooks or Peachtree.
■ CAR DEALERS Revenue Procedure 10-44 provides two safe harbor methods of accounting for certain motor vehicle dealerships to (1) treat certain sales facilities as retail sales facilities for purposes of § 263A, and (2) be treated as resellers without production activities for purposes of § 263A.
IRS NEWS FOR BUSINESS - November 2010
■ Read a summary of the H.R.5297: Small Business Jobs Act
■ IR 10-103 The IRS today issued a draft Form W-2 for 2011 and announced it would defer the new requirement for employers to report the cost of coverage under an employer-sponsored group health plan until 2011. Notice 10-69
■ With the continued growth in electronic filing and to reduce costs, Individual and business taxpayers will no longer receive paper income tax packages in the mail.
■ Tentatively scheduled webinars/phone forums include the following. Subscribe to "e-news for Tax Professionals" for details. Webinars will be archived approximately 3 weeks after airing.
- Oct. 6, 2010 –Tanning Tax webinar
- Oct. 21, 2010 - Employee 401K plans phone forum
- Nov. 3, 2010 – Employment Tax webinar
- November and later: Recordkeeping - National Phone Forum
■ Taxpayers can request free transcripts by calling a new toll-free number, 800-908-9946, and follow the message prompts, or complete IRS Form 4506T, Request for Transcript of Tax Return, and mailing it. For an exact copy of a tax return with attachments (including Form W-2), complete Form 4506, Request for Copy of Tax Return, and mail it to the address listed in the instructions, along with a $57 fee for each tax year requested. Copies are generally available going back six years.
■ IR 10-95 Employers and employees may want to take recent changes regarding flexible spending arrangements and health reimbursement arrangements into account when making health benefit decisions for 2011. Publication 4884 is a flyer on Flexible Spending Accounts and the changes in regard to over-the-counter purchases that can be provided to employees.
IRS NEWS FOR BUSINESS - October 2010
■ Register for a free webinar on Collecting Employer Taxes on Tips, which will be aired on
September 29, 2010, at 1:00 p.m. Central, 12:00 Mountain.
■ Register for a free webinar on Indoor Tanning Excise Tax, which will be aired on October 6, 2010, at 1:00 p.m. Central, 12:00 Mountain.
These events will be archived for later viewing, approximately two weeks after the date of the event.
Other presentations can be found at the IRS Video portal http://www.tax.gov/. Check out this IRS video on YouTube: Preparing for Disasters. Watch this and other videos on the IRS’s YouTube Channel.
■ The Advanced Earned Income Credit will end in 2011, per PL 111-226 or HR 1586, Education Jobs and Medicaid Assistance Act of 2010, which also has other provisions..
■ IR 10-92 Paper FTD coupons are discontined in 2011. Required deposits can be made by computer of telephone.
■ According to Revenue Procedure 09-49 and Revenue Procedure 08-33, W2s may no longer have slogans, advertisements, or logos.
■ Fraud Alert: If you receive a fraudulent phishing e-mail, claiming to be from the IRS or EFTPS, please do not reply to the sender, access links on the site or submit any information to them. Forward the message immediately to us at phishing@irs.gov.
■ The 2011 Tax Calendar for Small Businesses and Self-employed (Pub 1518) is available for pre-order. If you order now, the English version of the 2011 Tax Calendar will be shipped by early November. Copies can be ordered online or from the IRS by calling (800) 829-3676.
■ Tip 10-20 explains Employee vs. Independent Contractor – Seven Tips for Business Owners.
■ IR 10-95 had guidance on the use of flexible spending arrangements (FSAs), to pay for over-the-counter medicines and drugs. Notice 10-59, Revenue Ruling 10-23
■ An international trade event will be held in in Winnepeg on October 20, 2010. Read more at http://www.centrallia.com/
IRS NEWS FOR BUSINESS - September 2010
● The Affordable Care Act contains some tax provisions that may affect a business. Find timely tips, fact sheets, news releases and legal guidance on IRS.gov.
● IR 10-83 The National Taxpayer Advocate mid-year report to Congress expresses concern about the new information reporting burdens facing small businesses.
● Small Business Virtual Workshop irsvideos.gov/virtualworkshop
● Your Guide to an IRS Audit irsvideos.gov/audit
● The IRS.gov Small Business Resources section offers links to a broad range of information from federal and state agencies.
● Summertime Tax Tip 10-05 offers six tips for new business owners.
● Checklists provide the basic steps to follow when:
● Small Business Development Centers offer one-stop assistance to individuals and small businesses by providing a wide variety of information and guidance in branch locations.
IRS News for Small Business - August 2010
Among the topics covered this month:
- Phone forum: Audit process & resolution
- IRS Live presentation on the Affordable Care Act
- Public comment on law change which requires businesses to report a wider range of payments to contractors, vendors and others.
- 10-percent tax on tanning services
- Tips on Tips reporting webinar (archived)
- "Employee Plans" News
IRS News for Small Business - June 2010
- Information on the Small Business Health Care Tax Credit and other information on health care issues
- What do IRS examiners look for when auditing businesses that receive most of their income in cash? Check out the Cash Audit Techniques Guide.