In an effort to help close the $41 billion California budget deficit, the legislature raised the sales tax rate by 1 cent, or 13%, and the annual car license fee by 77%. The sales tax increase goes into effect April 1st 2009, and the car license fee increase goes into effect May 19th, so you may want to keep this dates in mind if you are planning a major purchase, especially an auto purchase.
Under the old formula, a car buyer in Orange County paid $1,938 in taxes on a $25,000 car. The new formula means that buyer will pay $2,188, or $250 more.
On a new car valued at $25,000, the vehicle license fee will go from $163 (0.65 percent of the value) to $288 (1.15 percent of the value).
Filed under: Uncategorized
March 18, 2009 • 10:59 pm
Via the Journal of Accountancy
The IRS has released Revenue Procedure 2009-19, which provides guidance on net-operating-loss provisions for small businesses that were enacted in the economic-stimulus package. Under the new law, small businesses — those with less than $15 million in revenue — can elect to carry NOLs back five years instead of two. The IRS guidance describes how businesses can make the election.
Filed under: Uncategorized
Via Marketwatch
The investors in Bernard Madoff’s monumental fraud can recover some of their losses as theft-loss deductions for 2008, including their original investments and "phantom" earnings that were reported to them but never really existed, the Internal Revenue Service says. If the deduction exceeds the taxpayer’s income for 2008, they may be able to carry the deduction back for either three or five years, depending upon their specific circumstances.
Filed under: Uncategorized
Via the Journal of Accountancy
The Financial Accounting Standards Board (FASB) are calling on the SEC for additional study on the possible shift of US accounting standards to International Financial Reporting Standards (IFRS). A comment letter from the organization said the SEC should allow limited early adoption of IFRS by US public companies only after there is a decision that all US public companies will ultimately be required to adopt IFRS.
Filed under: Uncategorized
Via the AICPA
The question of which parent is entitled to the dependency exemption for a child arises often in divorce cases. New regulations specify the rules that a custodial parent must follow to give the dependency exemption to the other parent and special rules for determining custody. The Tax Adviser
Filed under: Uncategorized
Via the AICPA Economic Crisis Resource Center
One of the less publicized provisions of the recent stimulus bills is that it calls for $730 Million in additional funding to the Small Business Administration to reach more small businesses.
Check out www.sba.gov for more information, but here’s a highlight of how the funds are to be used:
- $375 million for temporary fee reductions or eliminations on SBA loans and increased SBA guaranteed shares, up to 90 percent for certain loans
- $255 million for a new loan program to help small businesses meet existing debt payments
- $30 million for expanding SBA’s Microloan program, enough to finance up to $50 million in new lending and $24 million in technical assistance grants to microlenders
- $20 million for technology systems to streamline SBA’s lending and oversight processes
- $15 million for expanding SBA’s Surety Bond Guarantee program
- $25 million for staffing up to meet demands for new programs
- $10 million for the Office of Inspector General
Filed under: Small Business
The California Controller announced that it will begin releasing the delayed refunds, including $1.96 billing in personal income tax refunds and $181 million in bank and corporate tax refunds. The controller will make all refund payments on a “first in, first out” basis and anticipates all of the refunds will be made within the next several weeks.
Filed under: California, Tax
Via AICPA’s Journal of Accountancey
For mortgage refinancings, loan applications and various other reasons, clients often ask tax-return preparers to verify the client’s financial information to third parties. It seems like a simple request, but tax practitioners should tread carefully because professional standards, privacy statutes and the Internal Revenue Code can make this area a minefield for the unwary.
It has always been a confusing prospect for our firm, trying to be our client’s advocate, going the extra mile, by providing whatever information we can. But, those people asking for the information seem to not always have our client’s best interests in mind, and, there is a litany of state and federal law, and professional standards controlling what we can and can’t do.
This article from the Journal of Accountancy helps with this issue.
Concerns About CPA Letters to Third Parties
Filed under: CPA Professional Standards
CPA’s preparing financial statements are always confronted with the need to address an entity’s ability continue as a “going concern.” We diligently complete a disclosure checklist which ensures that we are providing all of the disclosures necessary for the reader to have a complete understanding of the financial position of the company.
During good times, this issue has been something that is easy to brush past, quickly looking at profitability and stockholder’s equity. But, in a sign of the times, in their judgment, Deloitte & Touche this year has been required to include a disclosure of their concerns over GM’s ability to continue as a going concern. It seems surreal to see the same disclosure we consider for our business clients being made on the financial statements of General Motors.
For the full story click here.
Filed under: Uncategorized
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