Tax Legislation

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The Tax Man and the "Electric Amish"

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We've talked before about how the internet is changing so much of how we live our lives. The internet is changing how we shop, how we book travel, and even how some of us find romance.

It's no surprise, then, that the internet is changing how we file and pay our taxes. Just 10 years ago, online filing was a novelty. Now it's become the norm. Last year, two out of three Americans e-filed their income tax returns. Those who also opted for electronically deposited refunds saved the government mailing costs, saved themselves a trip to the bank, and even got their refunds a week faster than waiting for paper checks.

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Tax Strategies for Anthony Weiner

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Just a few short weeks ago, Anthony Weiner was a rising star in the Democratic party. The seven-term Congressman from New York's Ninth District, straddling Brooklyn and Queens, was a well-respected liberal voice, with frequent appearances on cable news networks and a legitimate shot at becoming Gotham's next mayor. Now, he joins fellow New Yorkers Elliot Spitzer, Chris Lee, and Eric Massa in the Disgraced Politicians Hall of Shame. (Must be something in that New York water). Weiner's already enough of a national laughingstock that we can just skip all the wisecracks you expected when you saw the subject line of this email and get on with it!

Weiner may be on his way out for now, but he's not likely to be gone forever. Former Governor Elliot Spitzer, who left office after being uncovered as a high-end escort service's "Client 9," hosts his own talk show on CNN. New York native and former mayor of Cincinnati Jerry Springer, who

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HIRE Act Affidavit Posted by IRS, Form W-11

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The Internal Revenue Service has been working over time thanks to all the new tax laws just passed. Thankfully they placed a rush order for their team to create the new form needed to allow employers to take advantage of some nice provisions of the HIRE Act.

Form W-11, "Hiring Incentives to Restore Employment (HIRE) Act Employee Affidavit," is now posted on IRS.gov, along with answers to frequently asked questions about the payroll tax exemption and the related new hire retention credit. The new law requires that employers get a statement from each eligible new hire, certifying under penalties of perjury, that he or she was unemployed during the 60 days before beginning work or, alternatively, worked fewer than a total of 40 hours for anyone during the 60-day period. Employers can use Form W-11 to meet this requirement.

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Health Care and Education Reconciliation Act of 2010

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On March 23, President Obama signed the "Patient Protection and Affordable Care Act." With the next installment on March 30 he signed the companion "Health Care and Education Reconciliation Act of 2010." Together, these two acts represent the biggest change in how the US finances healthcare since Medicare was created back in 1965. Politics aside, It's truly monumental legislation. Just as President Harry Truman gave us the "Fair Deal," now Joe Biden -- as he commented when he thought he was off mic -- has given us the "Big *^@*#*@ Deal."

Healthcare reform has been an intensely political process. Not one single Republican voted for the law in either the House or the Senate. And polls show that Americans are overwhelmingly confused and concerned. They don’t know just what the new law does, and they don’t know how much it’s going to cost. That’s no surprise considering the actual texts of the bills runs over 2,500 pages. I wonder if there is actually any single person who understands it all, not likely.

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Hiring Incentives to Restore Employment (HIRE) Act

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As was expected, today President Obama signed the most recent jobs bill passed by Congress, the Hiring Incentives to Restore Employment (HIRE) Act.  While many businesses are hesitant about hiring new employees within the current economic climate, "this jobs bill should help make their decision that much easier," President Obama said during the bill signing.

While I am happy to see some effort being made to help small businesses let us be sure to keep this HIRE Act in perspective. First, unless you were already considering hiring another employee the Act is not going to offer you enough hard dollar incentive to make a hire. For example, if you were to hire a qualified previously unemployed worker and pay her $30,000 this year your tax savings would amount to $1,860. Plus, if you kept her on the payroll for a full 52 weeks you would also get a tax credit of $1,000. Your total potential savings is $2,860.  You can see that while nice to have, it is not likely these tax breaks by themselves will create much hiring. But, for all you business owners out there currently debating whether you need to add staff, this just might help you pull the trigger and make the hire.

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Worry no more, the government comes to our rescue... the HIRE Act

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President Obama is widely expected tomorrow, Thursday March 18, to sign into law the $17 billion Hiring Incentives to Restore Employment, or HIRE Act that passed the Senate on Wednesday on a bipartisan vote of 68-29.

What, you have doubts? The Senate has approved legislation that provides businesses with a payroll tax exemption for hiring new employees.  Certainly this legislation is a positive step but let’s face it, employers are not going to run out and start hiring the unemployed for the sake of hiring, at least not unless there is a 100% refundable tax credit. After all, would you spend $100 to save a little over $6? Of course not. But, for those businesses that may be on the brink of hiring the tax benefits in the HIRE Act could make a real difference.