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January 2013 Newsletter

Bryan's Random Thoughts

Hello ,
 
In case you just arrived back from a trip to Tim Buk Tu, Congress agreed on new tax legislation on January 1, 2013.  For most Americans, this eludes tax increases that would have cost thousands of dollars in additional tax.
 
The new legislation creates two systems of tax.  One for singles with taxable income of $400,000 or less and couples with taxable income of $450,000 or less and one for everyone above these levels.  We have included an article breaking this down for everyone so I won't explain all the details here.
 
The piece of legislation I'm most excited about is the Permanent AMT (Alternative Minimum Tax) Patch.  This should alleviate a substantial amount of tax from the lower middle class.  Many of you had experienced this when we were preparing tax projections during 2012.  AMT was originally designed to only affect the top 5% income in the U.S.  This summer, without any change, it was affecting almost everyone in the middle class.
 
With the changes to the 2012 AMT Exemption, we are now looking forward to a great tax season.  We have built new relationships and continued our existing relationships during 2012.  We have more associates helping us with tax season.  If you are contacted by Jeff, Jennifer, Jen, or Dru rather than myself, don't be surprised.
 
We hope you enjoy this month's articles!
 
Bryan Mogg

CCH Tax Briefing, January 3, 2013

LEGISLATION: President Signs Eleventh-Hour Agreement To Avert Fiscal Cliff

The tax side of the "Fiscal Cliff" has been averted.  The U.S. Senate overwhelmingly passed legislation to avert the so-called fiscal cliff on January 1, 2013 by a vote of 89 to 8, sending the American Taxpayer Relief Act of 2012 (HR 8, as amended by the Senate) to the House, where it was similarly approved on January 1, 2013 by a vote of 257 to 167.  The American Taxpayer Relief Act allows the Bush-era tax rates to sunset after 2012 for individuals with incomes over $400,000 and families with incomes over $450,000; permanently "patches" the alternative minimum tax (AMT); revives many now-expired tax extenders, including the research tax credit and the American Opportunity Tax Credit; and provides for a maximum estate tax of 40 percent with a $5 million exclusion.  The bill also delays the mandatory across-the-board spending cuts known as sequestration.  President Obama signed the bill into law on January 2, 2013.

Click here for the entire article

Journal of Accountancy, January 8, 2013

TAXES: Start of tax season delayed until Jan. 30; later for some taxpayers

The IRS announced on Tuesday that it plans to open the 2013 filing season and begin processing many individual income tax returns on Jan. 30 (IR-2013-2). However, not all taxpayers will be able to start filing tax returns on that date.
 
The IRS says it will be able to begin accepting tax returns on Jan. 30 after updating forms and completing programming and testing of its processing systems to account for most of the tax law changes enacted Jan. 2 by the American Taxpayer Relief Act of 2012, H.R. 8. The IRS says that this will allow “the vast majority of tax filers—more than 120 million households” to start filing tax returns on Jan. 30. The delayed start of tax season applies to both electronic and paper returns. The IRS had originally planned to open electronic filing of tax returns on Jan. 22.
 
The IRS says that on Jan. 30 it will be able to accept tax returns affected by the late change in the alternative minimum tax (AMT) exemption amount as well as three other major extended provisions: The state and local sales tax deduction (Sec. 164(b)), the higher education tuition and fees deduction (Sec. 222), and the deduction for certain expenses of elementary and secondary schoolteachers (Sec. 62).

Click here for the entire article

IRS Circular 230 Notice

IRS CIRCULAR 230 NOTICE: We are required by U.S. Treasury Regulations to inform you that, to the extent this communication (including any attachments) includes any tax advice, it is not intended to be used, and cannot be used, by any taxpayer for the purpose of avoiding penalties imposed by any governmental taxing authority or agency.

In This Issue

Bryan's Random Thoughts

LEGISLATION: President Signs Eleventh-Hour Agreement To Avert Fiscal Cliff

TAXES: Start of tax season delayed until Jan. 30; later for some taxpayers

IRS Circular 230 Notice

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Mogg & Associates, LLC  •  68 Inverness Lane East, Suite 203  •  Englewood  •  CO  •  80112
http://www.bmoggcpa.com
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