Useful Information

States are allocating more resources toward nexus claims - 7/29
Almost every state in the nation now faces severe budget crises, if not outright fiscal deficits. As a result, states are allocating more resources to tax collections and audits and are increasing their focus on expanding or asserting “nexus” claims... Read more


Massachusetts Storm Victims Get Tax Deadline Postponed Until May 11, 2010 - 3/31
The president has declared the Massachusetts counties of Bristol, Essex, Middlesex, Norfolk, Plymouth, Suffolk and Worcester federal disaster areas qualifying for individual assistance. Affected taxpayers include individuals who live, and businesses whose principal place of business is located in, the covered disaster area. Please see attached listing of cities and towns by county to determine if you are affected. The IRS is giving affected taxpayers until May 11, 2010, to file most tax returns including individual, corporate, estate and trust income tax returns, partnership returns, S corporation returns, gift, and generation-skipping transfer tax returns, employment and certain excise tax returns and Form 5500 series returns... Read more
 
 
Health Care Act changes for Individual taxpayers - 3/30
Below is a brief overview of the key tax changes affecting individuals in the recently enacted health reform legislation. Unless otherwise indicated most of the provisions under this act take effect in 2013. Individual mandate. The new law requires U.S. citizens and legal residents to have qualifying health coverage or be subject to a tax penalty. The penalty will be phased in between 2014-2016 and will range from a minimum of $695 to a maximum of 2.5% of taxable income over the filing threshold... Read more
 
 
Health Care Act changes for Small Business taxpayers - 3/30
For small businesses the recently enacted health reform legislation has some key provisions. Some of the more significant changes are highlighted below. Tax credits to certain small employers that provide insurance. The new law provides small employers with a tax credit for nonelective contributions to purchase health insurance for their employees. The credit can offset an employer's regular tax or its alternative minimum tax (AMT) liability... Read more
 
 
Business tax changes in the 2010 HIRE Act - 3/19
The new law gives a one-year lease on life to enhanced expensing rules, which allow qualifying businesses the option to currently deduct the cost of business machinery and equipment, instead of recovering it via depreciation over a number of years. For tax years beginning in 2010, the maximum amount that a business may expense is $250,000, and the expensing election begins to phase out when a business buys more than $800,000 of expensing-eligible assets. These dollar limits are the same as those that were in effect for 2008 and 2009... Read more
 
 
Haiti – US Government provides incentives for relief contributions - 1/28
Anyone contemplating making a contribution to help the victims of the earthquake in Haiti should do so before March 1, 2010. On January22nd, President Obama signed the Haiti Assistance Income Tax Relief Act. The law allows calendar year taxpayers (individuals, corporations and other entities) to choose to take an income tax deduction in 2009 or 2010 for donations made through March 1 2010 for the relief of Haiti earthquake victims. It is, therefore, not too late... Read more
 
 
Alternative Energy Incentives for Business - 1/10
In the United States there are currently three major alternative energy incentive programs available for businesses. The first two incentives are the investment tax credit and the production tax credit. Both of these tax incentives are provided for under the Internal Revenue Code and equate to a tax credit that can be claimed on a taxpayer’s federal income tax return. The third incentive is ... Read more
 
 
Choice of Entity - 12/09
Whether you are planning to purchase a business or form a new business, one of the first issues to consider is choosing the right type of entity to most efficiently accomplish your goals. Should you form a partnership? Should it be a general or limited partnership? If a corporation is the right entity for you, should you elect to be a Subchapter S Corporation, or a traditional C Corporation, or would a limited liability company (LLC) be the right choice? Depending on the facts and ... Read more
 
 
Massachusetts Extends the Deadline for Compliance with Data Security Regulations Until March 1, 2010 - 12/09
How does this impact you and your business? Do you have personal information about Massachusetts residents on your computer system or in your paper files, such as name, social security number, driver’s license number, or bank account or credit card information? If so, you may be required under Massachusetts 201 CMR 17.00, Standards for the Protection of Personal Information of Residents of the Commonwealth to develop and maintain a comprehensive written information... Read more
 
 
Financial Planning for Non-Traditional Families - 12/09
The number of non-traditional families is rapidly increasing in society today. It is common to see unmarried partners living together (same or opposite sex) with or without children. We see blended families, single parents, grandparents raising their grandchildren, parents with adopted children, parents with children conceived through reproductive technologies, and many other family situations. In general, automatic legal protections for property rights, inheritance, and medical decision-making are not... Read more
 
 
Year End Tax Planning for Individuals - 12/09
It’s not too late for you to think about tax planning for 2009. The most basic of all tax planning strategies is to accelerate and maximize deductions and defer income. The following list is not exhaustive, but it includes tried and true ideas, as well as new ones resulting from recent tax legislation ... Read more
 
 
Business Year-End Tax Planning - 12/09
Effective planning in any situation can make achieving goals much easier and more efficient. The same holds true for business year-end tax planning. Below are just a few items that Tonneson + Co wants to make sure all of our clients are thinking about as we approach the end of 2009 ... Read more
 
 
What You Need to Know Now About Roth IRA Conversions - 12/09
Many people have traditional individual retirement accounts (IRAs). The key benefit to traditional IRAs is that assets are invested and allowed to grow tax free until the account holder withdraws funds in retirement. These withdrawals are required when ... Read more
 
 
MA Pass-through Entity - 2/09
Pass-through entities that conduct a trade or business in Massachusetts have a new withholding tax in 2009. This withholding tax is on the income passed through to the owners of the pass-through entities. Entities that are affected include partnerships, limited partnerships, limited liability partnerships, limited liability companies, S-corporations, and certain trusts and estates. The withholding tax is ... Read more
 
 
Changes to the Alternative Minimum Tax as it Applies to Individual Taxpayers - 2/09
The alternative minimum tax (AMT) was initially enacted to close tax loopholes for the wealthy, but in recent years, many middle income taxpayers have been surprised to find out they are paying AMT. Individual taxpayers are required to pay AMT when the liability calculated under the AMT rules is higher than their regular tax liability ... Read more
 
 
Lifetime Non-charitable Gifting - 2/09
When it comes to gifts and taxes we typically think of charitable donations, however there are a variety of reasons, tax and nontax, which make lifetime non-charitable gifting attractive. What are the nontax advantages of making lifetime gifts? ... Read more