Tax Alerts for March 2010

March 1, 2010 Haiti Earthquake Relief Congress approves 2009 deductions for 2010 Haiti earthquake donations ... IRS provides new first-time homebuyer credit for... IRS chooses to wait for Congress to act on employer-provided cell phone tax rules... IRS publishes maximum FMVs for business automobiles using the cents-per-mile and fleet average valuation methods... Due date relief now available for COBRA premium payment assistance ... PA - 2010 earnings and wage tax rates released... 2010 filing season gets underway; IRS expects many early filers The IRS opened the 2010 federal income tax filing season on January 15 when it announced it would start accepting electronically filed 2009 individual income tax returns. The IRS anticipates that more than 60 percent of individual taxpayers will file their 2009 returns electronically and it is preparing for a large number of individuals to file early. Triggering early filing is the expected interest in refunds because of the economic slowdown. more... Fate of health care reform, estate tax unclear as Congress returns to work January brought two surprises to Capitol Hill. Health care reform, which appeared to be on a fast track to enactment, was significantly slowed by the Democrats' loss of their filibuster-proof majority in the Senate. Congress also did not pass a retroactive extension of the federal estate tax for 2010, leaving intact, at least for the immediate future, a new carryover basis regime. The new make-up of the Senate is expected to shift Congress' focus to more job creation measures, possibly with some targeted business tax cuts. more... FAQ: Did Congress extend COBRA premium assistance for individuals involuntarily terminated from employment in 2010? Yes, but only for a limited time. In late December 2009, Congress passed the 2010 Defense Appropriations Act (2010 Defense Act). The new law temporarily extends the eligibility period for COBRA premium assistance through February 28, 2010 and the duration of the subsidy for an additional six months (up to 15 months). more... How Do I ... Convert a Traditional IRA to a Roth IRA? People are buzzing about Roth Individual Retirement Accounts (IRAs). Unlike traditional IRAs, "qualified" distributions from a Roth IRA are tax-free, provided they are held for five years and are made after age 59 1/2, death or disability. You can establish a Roth IRA just as you would a traditional IRA. You can also convert assets in a traditional IRA to a Roth IRA. more... February 2010 tax compliance calendar As an individual or business, it is your responsibility to be aware of and to meet your tax filing/reporting deadlines. This calendar summarizes important tax reporting and filing data for individuals, businesses and other taxpayers for the month of February 2010. more...