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Summer Newsletter 2013 from Pescatore-Cooper, PLC
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Start Planning Now

for next year's Tax Return Preparation


Now that the April 15th tax deadline has passed and most taxpayer have filed their returns, they can start now to get organized and plan ahead to save time and money in 2014.  Here are a few ideas:
  1. Adjust your withholding – if you had a large balance due or a large refund on your 2012 return, it may make sense to adjust your withholding currently to make up the difference.
  2. Organize your records – establish one location where everyone in your household can put tax-related records and receipts throughout the year.
  3. Consider Itemizing Deductions – If your itemized deductions usually fall slightly below the standard deduction you could look at “bundling” your deductions.  For example, an extra real estate tax payment, mortgage payment or charitable contribution made during the 2013 year may help you to be over the standard deduction amount.

Net Investment Income Tax


Beginning with 2013 tax year, individual taxpayers and trusts with Modified Adjusted Gross Income (MAGI) above certain thresholds will be subject to a 3.8% income tax surcharge on net investment income over the threshold.  The thresholds for individuals are $250,000 married filing joint, $125,000 married filing separately, $200,000 single and head of household.  The Trust threshold is $11,950 of net annual income.  There are three defined categories of income that are subject to the net investment Income Tax:

Category I – Gross income from interest, dividends, rents, royalties and non-qualified annuities.

Category II – Other gross income from businesses that are in the business of trading financial instruments or commodities and businesses that are passive activities.

Category III – Net gain attributable to the disposition of property other than property held in a trade or business (unless the property is used in a passive activity).

If you would like to discuss this Net Investment Income Tax and how it may pertain to your particular tax situation, please contact our office.

Identity Theft


Identity Theft is a growing problem and the IRS wants to let you know that this has become a top priority.  The IRS does not initiate contact with taxpayers via email or social media to request personal or financial information, notify people of an audit, refund or investigations. 

If you receive a request via email or social media, please use the following link to report the abuse at http://www.irs.gov/uac/Report-Phishing .

If you feel that you may be at risk or have had an identity theft situation, the IRS suggests that you contact them at 800-908-4490 or visit their Identity protection home page at http://www.irs.gov/uac/Identity-Protection

The IRS also recommends contacting the Federal Trade Commission for additional information on reporting identity theft http://www.consumer.ftc.gov/topics/repairing-identity-theft  and file a complaint with the Internet Crime Complaint Center http://www.ic3.gov/default.aspx .

IRS to be Closed 5 Days in 2013 Due to Budget and Sequester

 
The IRS was closed on Friday, May 24, 2013 and will be closed on June 14, July 5, July 22 and Aug 30, 2013.  The IRS will close all IRS offices, including all toll-free lines, the Taxpayer Advocate Service and the agency’s nearly 400 taxpayer assistance centers nationwide.  The employees will be furloughed without pay.  There will be no processing of tax returns or compliance-related activities.  These mandated furlough days are not considered Federal holidays and therefore there will be no impact or change to tax filing for payment deadlines that may be due on the above mentioned days.  The IRS will however give taxpayers extra time to comply with document requests.
JUNE
6/17 - Individuals pay second installment of estimated taxes for 2012.

6/30 - Foreign bank account reporting due
 
JULY
7/31 - Quarterly Payroll Tax Reports due
 
SEPTEMBER
9/16 - Individuals pay third installment of estimated taxes for 2012,
Partnerships file 2011 Form 1065 if you timely requested a 5-month extension,
Corporations file calendar year 2011 Form 1120 or 1120S if you timly requested a 6-month extension,
Trusts file calendar year 2011 Form 1041 if you timely requested a 5-month extension
 
OCTOBER
10/15 - Individuals file 2011 Form 1040 if you timely requested a 6-month extension

10/31 - Quarterly Payroll Tax Reports due

2013 Year End Tax Planning

IRS Requiring EIN updates


The IRS has issued final regulations which require all taxpayers that have obtained employer identification numbers (EINs) to update their information with the IRS.  When the final regulations are published soon there will be a new form to be used by such persons to update, disclose and correct any information the IRS may have on file.

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Thanks in advance for your vote and continued support!

2014 HSA Contribution


For 2014 the new HSA contribution limit will be $3,300 for individuals with self-only coverage and $6,550 for family coverage.
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