On June 15, 2011, the North Carolina General Assembly overrode the Governor’s veto and passed a new $19.7 billion budget bill. Included in the bill are two key changes to the way individuals calculate their NC personal income tax beginning in 2012.
Retirement Plans For Businesses With No Employees
There are two retirement plans that a business owner, that has no employees, can implement that can provide a significant deferral of income and taxes: 1) a Simple-IRA and 2) an Individual or Solo 401(k) Plan.
Nonprofit Board Members: Paid Or Volunteer?
The propriety of pay for board members serving tax-exempt organizations is in the news again. While not a new topic (it has been raised at any number of points in past years), the sentiments of some opposed to the practice has intensified.
Disaster Planning – “An ounce of prevention…
Whether it be flood, fire or other disaster striking, your individual and business records are vital to getting back on your feet. One of the best methods to minimize damage is to have a backup set of records, preferably in the electronic form. Keep this backup set away from the original set, in a safe offsite location.
IRS Correspondence Examinations
Recently, the IRS has expanded correspondence examinations of individual tax returns. What is a correspondence examination?
Nonprofit Expense Allocation
Over the past fifteen years, there has been more pressure on nonprofits to conform to the expectation set by stakeholders to keep overhead expenses (supporting services activities) down and therefore maximize the use of unrestricted and temporarily restricted funds that can be used on programmatic activities.
Payroll Taxes – A Hot IRS Initiative
Because the IRS believes it can collect a lot of taxes, it is going to select 500 nonprofit organizations for payroll audits in each of the next three years (as well as a high number of for-profit companies).
NC Sales and Use Tax Rate Decreasing
The North Carolina general sales and use tax rate is scheduled to decrease from 5.75% to 4.75% on July 1, 2011. As a result, 82 counties in North Carolina will have a combined state and county tax rate of 6.75% with 17 other counties taxing at 7%.
2010 Form 990: Calm After The Storm
We are now approaching the third year of the redesigned form 990 with its 14 new lettered schedules.
Expanded 1099 Requirements Repealed
With the passage of the Patient Protection and Affordable Care Act and the Small Business Jobs Act during 2010, you might have heard of new reporting requirements for Form 1099.