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HORNE Tax Alerts

October 12, 2011
HORNE's 2011-2012 Tax Guide Now Available

HORNE's 2011-2012 Tax Guide is an online resource that is updated regularly in coordination with any tax law change so the information is both accurate and current. This is a free resource to you.

September 22, 2011
Mississippi Secretary of State's LLC Annual Report Grace Period Ends December 1, 2011

Under Mississippi law, all limited liability companies operating in Mississippi are required to file an annual report with the Secretary of State beginning in 2011. The Mississippi Secretary of State has announced that both Mississippi and foreign LLCs have a one-time grace period until December 1, 2011, to file an annual report without a penalty.

September 21, 2011
IRS Explains Tax Treatment of Employer-Provided Cell Phones

In Notice 2011-72, the IRS favorably provides that when an employer provides an employee with a cell phone primarily for noncompensatory business reasons, it will be nontaxable to the employee as a working condition fringe benefit [See IRC section 132(d).] (the value of which is excludable from the employee's income) and recordkeeping of business use will not be required. In addition, the IRS will treat the value of any personal use of a cell phone, provided by the employer primarily for noncompensatory business purposes, as excludable from the employee's income as a de minimis fringe benefit.

June 9, 2011
Mississippi STEPS 2 Program--Registration Deadline Set for Sept. 30

In August, Mississippi Governor Haley Barbour announced the STEPS 2 program details and deadlines. STEPS 2 will subsidize the wages of a new qualified employee hired by any public hospital, private non-profit or for-profit entity in the state over a four-month period, and employers must sign up for the program by September 30, 2011.

May 4, 2011
Disaster Victims in Mississippi, Tennessee and Other Southern States Qualify for Tax Relief

The Internal Revenue Service has announced on its Web site that victims of severe storms, tornadoes, straight-line winds and associated flooding beginning on April 25, 2011, in counties in Tennessee; beginning on April 15, 2011, in counties in Mississippi; and on April 27, 2011, in counties in Georgia that are designated as federal disaster areas qualifying for individual assistance have more time to make tax payments, file returns, and perform certain other time-sensitive acts.

April 20, 2011
Recent Developments that May Affect Your Tax Situation

• The recent 2010 Tax Relief affects bonus depreciation for new property owners, as well as write offs for business. Health insurance coverage and allocation of increase in basis for property acquired from a decedent also have recent development. These recent developments, among others, may affect your tax situation and are discussed in this article.
• IRS further delays health insurance coverage information reporting for small employers
• The IRS has announced that Form 8939, Allocation of Increase in Basis for Property Acquired from a Decedent, is not due Apr. 18, 2011, and should not be filed with the final Form 1040 of persons who died in 2010.

April 8, 2011
Expanded 1099 Reporting Requirements Repealed

On April 5, 2011, the Senate (by a vote of 87-12) approved the "Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011" (The Act). The legislation retroactively repeals expanded Form 1099 information reporting rules added by recent legislation.

December 17, 2010
The 2010 Tax Relief Act

On December 17th, the President signed into law The 2010 Tax Relief Act that includes an extension of the Bush-era tax cuts for two years, estate tax relief, a two-year patch of the alternative minimum tax (AMT), a 2 percentage point cut in employee-paid payroll taxes and self-employment tax for 2011, new incentives to invest in machinery and equipment, and a host of retroactive and extended tax breaks for individuals and businesses.

November 15, 2010
Post Election Year-End Planning

The results of the recent midterm elections, with the Republicans winning control of the House of Representatives and gaining seats in the Senate, provided some added uncertainty surrounding the expiration of the Bush tax cuts, theestate tax, anAMT patchand thetax extenders package.　

October 1, 2010
Small Business Jobs Act of 2010

On September 27, 2010, the President signed into law the Small Business Jobs Act of 2010.　 There are numerous significant tax provisions within the new law that affect businesses discussed in this article.

July 9, 2010
Mid Year Tax Planning

We've already seen legislation with major tax changes, and more are almost certainly on the way. Therefore, tax planning actions taken between now and year-end may be more important than ever. This letter presents some planning ideas to consider this summer while you have time to think. Some of the ideas may apply to you, some to family members, and others to your business.

May 24, 2010
Report of Foreign Bank and Financial Accounts (FBAR)

If you own or have authority over a foreign financial account, including a bank account, brokerage account, mutual fund or other type of financial account, then you may be required to annually report the account to the Department of the Treasury. The annual due date　for filing　Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts (FBAR), is June 30.

March 29, 2010
Health Care Reform - Tax Provisions You Need to Know

On March 23, 2010, President Obama signed the Patient Protection and Affordable Care Act into law. There is a tagalong bill (the Health Care and Education Reconciliation Act of 2010) that was subsequently enacted. Some of the major provisions of the new law include: near universal health care insurance coverage, prohibiting the denial of insurance coverage due to pre-existing conditions, creation of health insurance exchanges, offering premium tax credits and cost-sharing assistance to low and middle-income Americans, and penalties for individuals for failure to maintain coverage and penalties for businesses that do not offer coverage to employees.

March 26, 2010
FICA Taxes on Severance Pay - What You Need to Consider Now

Over the past several decades, the IRS and courts have come to various conclusions on whether severance payments are subject to Federal Insurance Contributions Act (FICA) taxation. Most recently, a U.S. District Court in Michigan affirmed an earlier bankruptcy court decision holding that some types of severance pay are exempt from social security taxation under the FICA Act, and that the employer was entitled to a refund of FICA tax it had previously paid on the severance.

March 18, 2010
HIRE Act - Hiring Incentives to Restore Employment

On March 18, 2010, the President signed into law the Hiring Incentives to Restore Employment (HIRE) Act.　 The HIRE Act includes the following tax incentives: payroll tax holiday, new credit for retained workers and extension of increased expensing. Also, the 2010 Temporary Extension Act extended for one month (to March 31, 2010) the 65 percent premium subsidy to employers to cover the costs of former employees electing COBRA coverage.

March 18, 2010
Estate Tax Uncertainty in 2010 and Beyond

The federal estate tax rules changed radically on January 1, 2010. The rules could change again on January 1, 2011, unless Congress enacts new legislation. We encourage you to reevaluate your estate planning as soon as possible in light of this uncertainty.

December 28, 2009
COBRA Premium Subsidy Extended

The Department of Defense Appropriations Act of 2010, signed into law by the President on December 19, 2009, extends the 65 percent COBRA premium subsidy that was created earlier this year in the American Recovery and Reinvestment Act.

November 16, 2009
Worker, Homeownership and Business Assistance Act of 2009

On November 6, 2009, President Obama signed the Worker, Homeownership and Business Assistance Act of 2009. The primary focus of the bill is the extension of unemployment benefits, but there are two significant income tax benefits that you need to be aware of that were also provided by this legislation: Extension and Liberalization of Homebuyer Credit, and Business New Operating Loss Carryback Period.

November 9, 2009
HORNE's 2009-2010 Tax Planning Guide

HORNE's 2009-2010 tax planning guide provides year-round strategies to make the tax laws work for you. Tax planning basics include investing, real estate, business & executive comp, family & education, charitable giving, retirement, and estate planning.

August 26, 2009
IRA to Roth IRA Conversion - 2010 Presents a Window of Opportunity

Beginning January 1, 2010, any taxpayer may convert a traditional IRA to a Roth IRA regardless of income level. The former rule limiting these types of conversions to taxpayers with modified adjusted gross income of $100,000 or less has been eliminated as of January 1, 2010. Additionally, married taxpayers filing a separate return will be able to convert a traditional IRA to a Roth IRA. Currently they are prohibited from doing so. This article includes why you should make an Ira to Roth IRA conversion, who should make the conversion, a complicating factor for 2010 conversions, when the conversion should be done, and what windows of opportunity you have.

July 22, 2009
Federal Tax Credits for Energy Efficiency

If widely fluctuating energy costs and environmental concerns have you looking for ways to go green, here are some tips on how going green can cut energy costs and reap tax saving energy credits. Better yet all of these tax credits are available against Alternative Minimum Tax (AMT) this year and none of them are subject to any annoying phase out limits.

February 20, 2009
The American Recovery and Reinvestment Act of 2009 - Financial Institutions

Significant tax provisions for financial institutions include de minimis safe harbor exception for tax-exempt interest expense for financial institutions, modification of small issuer exception to tax-exempt interest expense allocation rules for financial institutions, revocation of IRS guidance exempting banks from loss limit rules, treatment of certain ownership changes, bonus depreciation, and small business expensing.

February 18, 2009
The American Recovery and Reinvestment Act of 2009 - Individuals

Significant tax provisions that may affect you or your family: "making work pay" tax credit, "American opportunity" education tax credit, refundable first-time home buyer credit, increased standard deduction for sales and excise taxes on vehicle purchases, suspension of tax on unemployment benefits, alternative minimum tax, computers as education expenses under 529 plans, bonus depreciation, and small business expensing.

February 18, 2009
The American Recovery and Reinvestment Act of 2009 - Business

Significant tax provisions that may affect your business: bonus depreciation, small business expensing, carryback period for net operating losses, cancellation of debt income, AMT/R&D credit carryovers, expansion of work opportunity tax credit, and small business capital gains.

January 29, 2009
How Can Tax Law Changes Benefit You in Today's Financial Downturn

There are tax advantages available that can improve your financial position during tough economic times. These include carry back unused tax benefits to prior years, cost segregation study for business real property, utilization of business credits, state and local taxes, and estate planning.

January 13, 2009
2009 Mileage Rates Released

The 2009 mileage rates have been release and reflect higher transportation costs but also factor in the recent reversal of rising gasoline prices.

December 30, 2008
New Economic Relief Act Benefits

With sales tax receipts declining and budget cuts on the rise, state governments are looking for new sources of revenue. Companies often forget to consider the impact of state taxes on their bottom line, particularly states other than their home state where the company has significant sales including Internet sales or other operations. This article discusses steps that companies should take to be actively managing their tax exposure in all jurisdictions.