U.S. Citizenship and Immigration Services (USCIS) reminds employers that beginning May 7, 2013 they must use the revised Form I-9, Employment Eligibility Verification (Revision 03/08/13)N for all new hires and reverifications. All employers are required to complete and retain a Form I-9 for each employee hired to work in the United States.

Read More » [uscis.gov]

The Internal Revenue Service today issued the 2013 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
Beginning on Jan. 1, 2013, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
• 56.5 cents per mile for business miles driven
• 24 cents per mile driven for medical or moving purposes
• 14 cents per mile driven in service of charitable organizations

Read More » [IRS]

A new tax 3.8% income tax surcharge will become effective on taxable years beginning on and after January 1, 2013. These new surcharges have been put into place to help finance the recent healthcare reform.

This surtax will apply an annual 3.8 percent tax to the net investment income of individual taxpayers, including distributions of net investment income from trusts and estates. The surtax will generally be paid by taxpayers on net investment income when the taxpayer’s modified adjusted gross income exceeds the established thresholds, which are $125,000 for married person filing separate, $200,000 for an individual or $250,000 for a married couple filing jointly.

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By the end of 2012, all Maryland homeowners must reapply for the Homestead Tax Credit, which helps offset large assessment increases for property tax purposes in a given year. The law requires the state government to limit increases in the taxable assessment of a property to a maximum of 10% per year for properties to which the Homestead Tax Credit applies, and certain counties and municipalities have a lower percentage for their portion of the property tax assessment. The tax credit works by providing a reduction in the actual taxes paid, rather than reducing the assessment value of the property. The result is that homeowners do not pay property tax on assessments that exceed the percentage thresholds in the current year.

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There’s a good chance during open enrollment this fall that you will be offered a high-deductible insurance plan with a savings account — if you haven’t already been nudged into one.
Increasingly, employers are offering this as a way to rein in their health insurance costs. The high deductible means lower premiums, benefits experts say. And employees — confronted with the prospect of potentially paying thousands of dollars before insurance kicks in — are less likely to run to the emergency room for minor problems, which also keeps costs down.

Read More » [baltimoresun.com]

These personal tax matters could see changes in 2013, depending on who wins the White House.
Whatever happens in the election on Nov. 6, the next Congress and president will face a heaping helping of unfinished tax business. Here’s the second part of our two-part story on the most important unresolved personal tax issues — along with some fearless predictions.

Read More » [marketwatch.com]

Taxpayers should keep copies of their tax returns, but if they cannot be located or have been destroyed during natural disasters or by fire, the IRS can help. Whether you need your prior year’s tax return to apply for a loan or for legal reasons, you can obtain copies or transcripts from the IRS.
Here are 10 things to know if you need federal tax return information from a previously filed tax return.

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How the enactment of so-called “Amazon” or “affiliate nexus” laws may provide states with more sales tax collectors.

In the first half of 2011, five states enacted laws that modify the definition of retailer for sales-tax purposes in the hopes of making certain remote retailers become tax collectors in their states.

Read More » [cpa2biz]

A recent West Virginia case is a reminder that the use of intangibles in a state does not automatically lead to a finding of income tax nexus.

In May, the West Virginia Supreme Court, famous for its 2006 MBNA ruling on economic nexus, found that ConAgra Brands, which received royalties from intangible trademarks used in the state, satisfied neither the “purposeful direction” test under the Due Process Clause nor the “significant economic presence” test under the Commerce Clause to be subject to the state’s corporate net income or business franchise tax.

Read More » [cpa2biz]

The deductibility of the cost of a Master of Business Administration (MBA) degree under Sec. 162(a) as a trade or business expense for an employee is a complex subject, with several factors to consider. The costs of an MBA are generally deductible if the degree maintains or improves skills required by the individual’s employment or trade or business or meets the express requirements of the individual’s employer or the requirements of applicable law.

Read More » [aicpa]