Monday, November 29, 2010
We shall see just how much this lame-duck Congress gets accomplished. It will be amazing to me just what they are able to get through, but I bet we will all be shocked by the results. If you're concerned about how these potential tax increases will affect you, call Saggio management group and set up an appointment so we can review your tax situation and plan accordingly.
Thursday, November 25, 2010
Tuesday, November 23, 2010
Beware of a New Fraud Risk!
There is a fraud risk related to the Electronic Federal Tax Payment System (EFTPS) that you need to be aware of.
Always remember that the IRS does not initiate taxpayer contact by e-mail. Therefore, if you receive an e-mail that appears to be from a tax agency telling you that your federal electronic funds transfer (EFT) payment did not go through, it is part of a phishing scheme and you should not respond to it. The perpetrators of this scheme have duplicated the IRS’s EFTPS logo and other characteristics of that system in an attempt to convince taxpayers that it is an official e-mail from the IRS. It is not!
If you receive a message claiming to be from the IRS or EFTPS, take the following steps:
1. Do not reply to the sender, access links on the site, or submit any information to them.
2. Forward the message as-is immediately to IRS at firstname.lastname@example.org.
3. Visit the IRS website to find out how to report and identify [http://www.irs.gov/privacy/article/0,,id=179820,00.html] phishing, e-mail scams and bogus IRS websites.
4. If you receive a suspicious e-mail or discover a website posing as the IRS, please forward the e-mail or URL information to the IRS at email@example.com.
5. EFTPS [http://www.irs.gov/efile/article/0,,id=98005,00.html]is a tax payment system provided free by the U.S. Department of Treasury.
Whenever you receive a communication from the IRS, it is generally good practice to contact Saggio Management Group, Inc., for assistance.
Monday, November 22, 2010
Tax Rumors Abound
There are two false tax rumors that have been circulating around and troubling clients. To set the record straight, a brief explanation of both rumors is provided below.
False Rumor #1 – “Employer-paid health insurance benefits will be taxable in 2011.”
Not true! Starting in 2011, the amount of employer-paid healthcare benefits was to be included on the W-2 as an information entry, but is not included in the taxable wages on the W-2. Many sources failed to properly analyze this requirement and reported that the benefits would become taxable in 2011.
False Rumor #2 – “Home sales will be subject to a sales tax.”
Not true! This rumor came about because of a 3.8% surtax, beginning in 2013, on net investment income of higher-income taxpayers - generally those with an AGI in excess of $200,000 ($250,000 for married taxpayers filing jointly).
Generally, investment income is, as the name implies, income from investments (such as interest, dividends and capital gains). Net investment income is investment income less certain deductible investment expenses.
Gain from the sale of a home is a capital gain and included in net investment income and, as a result, could be subject to the 3.8% surtax on the profit but not the sales price. In addition, for a home used by a taxpayer for 2 of the prior 5 years preceding the sale, the taxpayer can exclude up to $250,000 ($500,000 for a qualifying married couple) of the gain from the sale. Thus, only the excess above the home gain exclusion would be subject to the surtax.
Bottom line, you could get hit by this surtax if your home sale profits exceed the exclusion and you are a higher-income taxpayer - but it is not a sales tax based on the sales price of the home.
If you need more specific guidance, please contact Saggio Management Group, Inc. at (866) 874-9936
Friday, November 19, 2010
Thursday, November 18, 2010
Saturday, November 13, 2010
Friday, November 12, 2010
Watch out for this provision. Let Saggio Management Group assist you with the creation of these mandatory 1099 forms. Call us today 866-874-9936.
Wednesday, November 10, 2010
Monday, November 8, 2010
I still think that everyone should take the time to call or write to your elected representatives and let them know that they need to act now to keep the tax rates lower. If we don't move on this legislation, the effects to the economy will be terrible. I was speaking with a friend at the gym this morning and he asked me how much he should set aside, I told him that I am more concerned about inflation. Keep an eye on the grocery store shelves and be prepared for a ride on the inflation roller coaster. Can't say that I didn't warn you.
Thursday, November 4, 2010
Wednesday, November 3, 2010
For assistance in looking at your tax situation for 2010 and beyond, call Saggio Management Group, Inc., and takee advantage of our year-end $99 tax check-up. We will look at your particular situation and make some year-end recommendations. Call today!