A number of my corporate clients have used this to their benefit. If you are an employer, think about taking advantage of this new law, by hiring new workers this year.
Under the Hiring Incentives to Restore Employment (HIRE) Act, enacted March 18, 2010, two new tax benefits are available to employers who hire workers after February 3, 2010 and before January 1, 2011. The employer may qualify for a 6.2 percent payroll tax incentive, in affect, exempting them from their share of Social Security taxes on wages paid to those workers after March 18, 2010. This reduced tax witholding will have no effect on the employee's future social security benefits. The employers would still need to withold the employee's 6.2 percent share of Social Security taxes, as well as other income taxes.
Additionally, for each new worker retained for at least one year, the employer may claim an addtional general business tax credit of up to $1,000 per worker, when they file their 2011 federal income tax returns.
Showing posts with label tax law. Show all posts
Showing posts with label tax law. Show all posts
Tuesday, July 27, 2010
Monday, July 26, 2010
What Can The IRS Really Seize?
from EA Journal: www.NAEA.org
If the IRS is in a position to levy or seize, it is important to know what is at risk. No matter what the IRS may tell you or your representative or what you may have heard, it is very unlikely the IRS will levy on a house, car, furniture, or equipment. The assets that you may be the most concerned about-your "stuff" are the items the IRS is least likely to take. This is important to know in negotiating with the IRS.
In 2009, the IRS made 581 seizures of "hard" assets such as houses, cars and other personal property. By comparison, in the same year the IRS sent out almost 3,500,000 levies on "soft" assets, such as bank accounts and wages.
IRS attempts to seize "hard" assets are serious, make no mistake about it. But the IRS is clearly more intent on tying up cash.
The reason for the focus on cash, not personal property, are in the Internal Revenue Code (IRC) and the Internal Revenue Manual. Both provide that if an asset-for instance a house- lacks equity, the IRS is prevented from seizing it. This eliminates a vast majority of potential seizures. Even if an asset has equity, it cannot be taken if it is listed as exempt in the IRC and is protected from the IRS as a matter of public policy.
If the IRS is in a position to levy or seize, it is important to know what is at risk. No matter what the IRS may tell you or your representative or what you may have heard, it is very unlikely the IRS will levy on a house, car, furniture, or equipment. The assets that you may be the most concerned about-your "stuff" are the items the IRS is least likely to take. This is important to know in negotiating with the IRS.
In 2009, the IRS made 581 seizures of "hard" assets such as houses, cars and other personal property. By comparison, in the same year the IRS sent out almost 3,500,000 levies on "soft" assets, such as bank accounts and wages.
IRS attempts to seize "hard" assets are serious, make no mistake about it. But the IRS is clearly more intent on tying up cash.
The reason for the focus on cash, not personal property, are in the Internal Revenue Code (IRC) and the Internal Revenue Manual. Both provide that if an asset-for instance a house- lacks equity, the IRS is prevented from seizing it. This eliminates a vast majority of potential seizures. Even if an asset has equity, it cannot be taken if it is listed as exempt in the IRC and is protected from the IRS as a matter of public policy.
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