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May 2012

AICPA LAUNCHES TAX INSIGHTS CALCULATOR

The AICPA this week announced a new online tool called Total Tax Insights calculator to help taxpayers understand where their tax dollars are being spent. This free resource allows users to have a clear picture of estimated totals of federal, state and local taxes.

The AICPA worked with a vendor and created more than 3,000 formulas that generate estimated taxes based on more than two dozen data inputs. The calculator and database, however, does not include some types of taxes nor does it cover all tax deductions and credits but additional features are being considered for future versions.

Learn More

http://journalofaccountancy.com/News/20125662.htm


HOUSE OF REPRESENTATIVES PASSES MOBILE WORKFORCE BILL

The U.S. House of Representatives on Tuesday passed the Mobile Workforce State Income Tax Simplification Act of 2011 (H.R. 1864) which establishes a uniform national standard governing the withholding of state income tax for non-resident employees.

Barry Melancon, CPA, CGMA and president and CEO of AICPA called the passage “a critical step toward balancing and streamlining onerous recordkeeping and reporting requirements for workers who are required to file non-resident personal income tax returns because they work temporarily outside their home state.”

Several state societies including TSCPA worked tirelessly with representatives to push the bill along. TSCPA recognizes Texas Congressman Lamar Smith (R-21) for bringing the bill to the House floor for passage. 

Learn More

http://www.aicpa.org/Press/PressReleases/2012/Pages/AICPA-Applauds-Passage-of-Mobile-Workforce-Bill-by-House-of-Representatives.aspx

TSCPA letter to Representative Kay Granger

TSCPA ltr to Rep Granger HR 1864 Mobile Workforce Act 5-4-12


LAWMAKERS INTRODUCE BILL TO PUNISH TAX PREPARERS WHO DEFRAUD CLIENTS

Bipartisan members of the House Ways and Means Committee lead by Rep. Erik Paulsen (R-Minn.) introduced legislation to increase the penalties on tax preparers who defraud taxpayers and the IRS by altering tax returns for personal benefit without their clients’ knowledge. The legislation came from a recommendation by National Taxpayer Advocate Nina Olson.

The “Fighting Tax Fraud Act” would double the current penalties for tax preparers who are involved with identity theft, with the goal of giving the IRS greater incentive to prosecute this type of theft.

http://www.accountingtoday.com/news/Congress-Bill-Increase-Tax-Preparer-Penalties-62586-1.html


New Franchise Tax Minimum Revenue Floor

The 2011 Texas Legislature extended the $1 million minimum revenue requirement for paying franchise taxes through Dec. 31, 2013. The amount is subject to inflations adjustments and State Comptroller Susan Combs announced that the inflation adjusted minimum revenue is now $1,030,000 for reports due in 2012.  The minimum revenue amount drops to $600,000 Jan. 1, 2014.

http://window.state.tx.us/taxinfo/taxpnw/tpn2012/tpn1204.html#issue1