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This is in regards to a previous post called “New 1099 Regulations”. The law has been repealed (as many people had hoped for). No longer will companies have to issue 1099 forms to all firms that they pay over $600 for goods and services (whether or not they are incorporated). However, the current law still stands that a 1099 needs to be issued when $600 or more is paid to an unincorporated company for a service.  

The IRS recently released a draft of the 2011 Form W-2. Previously, it announced that that form had to include the cost of coverage of employer covered group health care plans. However, they now pushed the requirement back to 2012, making the reporting optional for 2011. Even though the cost of health care will be reported on the W-2, the amount is NOT taxable. The IRS simply wants it reported to increase transparency and make employees aware of the cost of health care for the employer.

In order to claim the adoption credit, the taxpayer must not only file Form 8839, but one must also attach a copy of the following based on the type of adoption:

·         Finalized in the U.S. - copy of adoption order or decree

·         Finalized abroad – copy of foreign adoption decree, Hauge Adoption Certificate, or IH-3 visa  

·         Special Needs child – State determination certificate along with adoption order or decree

Therefore, since extra paperwork needs to be attached, taxpayers claiming the credit cannot e-file their return.

In 2010, businesses can take a 50% bonus depreciation on brand new SUV purchases. In order to take advantage of this tax break, the vehicle must be purchased and put into service before December 31, 2010, weigh more than 6,000 lbs., and be used solely for the business.