September 13, 2010 |
Dear Karen: Does the healthcare law require me to send out more 1099s? Answer: A provision of health insurance reform that goes into effect in 2012 requires companies to issue a tax form 1099 to any vendor with whom they spend $600 or more annually on goods or services. It is an attempt to close an estimated $300-billion tax gap on unreported income, said Gregg Wind, a certified public accountant with Wind & Stern in Los Angeles. Because companies currently issue 1099s mainly to independent service providers, accountants have warned that this provision could double accounting costs for small firms.
May 17, 2010 |
Small businesses fear that they may face expensive new payroll paperwork requirements as part of little-known tax provisions in President Obama's healthcare overhaul. Starting in 2012, the law would require all businesses to file special forms with the Internal Revenue Service not just for freelancers who work for them, as in the past, but also for stores, vendors and anybody else from whom they buy more than $600 in goods or services over the course of a year. The new tax provisions were intended to help collect from businesses and individuals who do not report all of their income, said Michael Mundaca, assistant secretary for tax policy at the Treasury Department.
December 21, 2009 |
California is targeting service businesses in its latest bid to collect more of the estimated $1.1 billion in taxes that go unpaid each year on out-of-state purchases. California is taking the step, which it said will bring in an additional $631 million over the next three fiscal years, to bridge what is projected to be a widening gap between use taxes owed and those paid as both Internet sales and the service sector continue to grow. "It's $1 billion a year now, but the concern is it's going to grow," said Annette Nellen, an accounting and finance professor at San Jose State University who writes frequently about tax issues.
April 14, 2009
Re "Cutting politics out of the cuts," Opinion, April 10 Robert Krol implies in his Op-Ed article that we should avoid tax increases and implement budget cuts instead. A lot of times, the difference between tax increases and budget cuts is an imaginary one. When we cut the budget, we implicitly tax people who have to cover the difference. A case in point is educational cuts: What sounds like avoiding a tax increase is really taxing the parents who have to contribute to fundraisers to keep the schools running.
January 21, 2009
Re "Controller 'pulls trigger,' suspends state tax refunds," Jan. 17, and "Gov. says budget is No. 1 goal," Jan. 16 Can I charge the state of California penalties for its late payment of my tax refund? My family also has budget problems, so I would like to suspend all state tax payments at this time and offer an IOU that is free of interest and penalties. When my wife and I decide how to solve our budget problem, I would be happy to send what we owe in taxes. Steve Shaevel Woodland Hills -- So California Controller John Chiang has decided to suspend state tax refunds.
May 24, 2008 |
Sen. John McCain unexpectedly released part of his wife's 2006 tax return on Friday, showing that she reported income of $6.1 million through a combination of salary, dividends, capital gains and payments from trusts. Cindy McCain, who controls one of the nation's largest beer wholesalers, has steadfastly refused to discuss her finances, saying she wants to protect her children's privacy. But late Friday, McCain's campaign office posted her two-page IRS Form 1040 on the Internet.
January 17, 2008 |
The state agency that prints tax forms said a mistake on some of them could cost taxpayers. The Franchise Tax Board said Wednesday that early versions of Schedule CA (540), California Adjustments, tells filers to enter information from the wrong federal tax box. The form is used to make adjustments to federal adjusted gross income and claim itemized deductions.
December 28, 2007 |
Tax refunds will be delayed for millions of middle-income taxpayers next year because of late action by Congress to limit the widening reach of the so-called alternative minimum tax, the Internal Revenue Service said Thursday. Until lawmakers passed a one-year "patch" last week, the alternative tax, once aimed at wealthy filers, had threatened to ensnare about 23 million Americans for the first time -- including about half of the taxpayers earning $75,000 to $100,000 a year.