California LLC Fee Constitutionality Update

Via Spidell

The US Supreme Court declined to review the Ventas case pertaining to LLC fees paid by LLC’s with income from both California and non-California sources.

According to the FTB, they will issue a notice sometime in the next few weeks with instructions on when and how to obtain refunds for LLCs that have income inside and outside the state of California and have filed protective claims for refunds.

LLC’s that had income outside of California in a year prior to 2007 should file a protective for refund as the statute of limitations of four years expires in 2009.

Filed under: California, Tax, Tax Season

The AICPA Reports Success in Efforts for CPA Interstate Practice Privilege

The AICPA has announced that they are seeing success in their efforts to enact a uniform mobility provision in every jurisdiction hat licenses CPA’s.  Nearly every state is at some point in the process of considering the concept per a recent email announcement.

Thirty-eight states have passed some form of legislation allowing CPA’s to practice in other states without providing notification, and nine states have mobility legislation pending.  It is anticipated that 45 states (out of 55 jurisdictions) could have legislation passed by the end of the 2009 legislative sessions.

This has been a big issue for a while now, and this is good news for CPA’s who at least from time-to-time prepare returns for states other than the one in which they reside.

Filed under: Licensing

Six Tips for Coping with Tougher Loan Covenants

Via the AICPA Journal of Accountancy

In this current economic climate, it is well known that credit sources have tightening up (if not completely dried up).  The Journal of Accountancy has six tips to consider before you talk to a lender:

1. Negotiate and monitor your ratios
2. Prepare to be audited
3. Watch out for positive cash flow covenant
4. Get ready for new rate structures
5. Be prepared for more stringent “personal guarantees”
6. Know what’s typical

 

Read the article here for a detailed explanation of each of these helpful hints.

Filed under: Business, Lending

Depreciation Limits Updated for Inflation

Via the Journal of Accountancy

IRS Revenue Procedure 2009-24 issued in April adjusted depreciation limits for considered “luxury automobiles” to $2,960 for the first tax year, $4,800 for the second tax year, $2,850 for the third and $1,775 for each year thereafter.

Filed under: Tax

California Apparently Postpones Penalties for Failure to Comply with the New E-Pay Requirements

Via Spidell

Spidell has reported that the California Franchise Tax Board will NOT assess penalties if a taxpayer subject to the new mandatory e-pay requirements pays by check instead of electronically during 2009.

The law currently states that all payments made by an individual on or after January 1, 2009, regardless of taxable year or amount, must be remitted electronically to the FTB after the individual has:

• Made a single estimated tax or extension payment greater than $20,000 for a taxable year beginning on or after January 1, 2009; or
• Filed an original return with a tax liability greater than $80,000 for a taxable year beginning on or after January 1, 2009

Filed under: California, Tax

Congress Urges IRS to Ease Up on Audits of Small Businesses

Via Webcpa

A recent study found that in 2007, small businesses were 41% more likely to be audited than in 2005, ,while companies with $250 million in assets or more were audited 40% less often.  In a recent hearing, law makers pressed the IRS to ease up on audits of small businesses.

Read the full story here:

http://www.webcpa.com/article.cfm?articleid=31216

Filed under: Tax