by David Hernandez, Enrolled Agent
HOLLYWOOD, CA (Hollywood Today) 2013/2/1 – Another tax filing season is upon us. Time to look at new tax developments.
We should know by summer if same-sex married couples can file joint IRS tax returns. The Supreme Court has agreed to hear the Edie Windsor case. If the Supreme Court rules for Edie Windsor it should make joint Federal tax returns by same sex couples legal. We should be able to amend tax returns for years the statute of limitations hasn’t expired on. I recommend filing a “Protective Claim” for 2009 before April 15th, 2013, if this affects you. The Statute of Limitations to amend 2009 tax returns expires on that date.
There is a new mandate to get health insurance by January 1st, 2014. The penalty will be $695 per person when fully phased in. If your income is between 100% to 400% of the Federal Poverty Line you qualify for state subsidized coverage. If you are opposed to this insurance it will always be a lot cheaper to pay the penalty rather than buy the insurance. Many companies are reducing employees to 29 hours per week to keep from the requirement to provide insurance
PayPal and eBay will be sending out 1099s if they sent you over $600 in payments. Sales of personal property sold for less than cost are not taxable or reportable. Sales of inherited property sold for less than the Fair Market Value at the date of death are not taxable or reportable. Sales of property acquired by gift sold for less than the cost of the purchaser are not taxable or reportable. If you receive form 1099K from issuer’s like PayPal, eBay and credit cards. It will generally be overstated and include sales tax. Chargebacks also will generally not be subtracted
The Foreign Account Tax Compliance Act takes effect in 2013 requiring foreign banks to report US account holders to the IRS who have more than $50,000 on deposit. The IRS has already concluded an agreement with the UK and is in the process of finalizing agreements with about 50 more countries
The State of California can now garnish wages and levy bank accounts for amounts owed that are between ten and twenty years old due to a new state law. They have a new computer system called The Enterprise Data Revenue System that lets them find money owed to them like they have never been able to before.
Section 181 expensing rules for film & television producers and investors has been extended through 2013.
The IRS is now holding for review all tax refunds greater than $10,000. California is changing direct deposit requests to paper checks when they must change your tax return by even just $1.
In my next article I’ll review significant tax court cases from the past year.
Remember to your City of Los Angeles Business Tax return by February 28, 2013 or you will lose the $100,000 small business exemption.
Dave Hernandez is a tax accountant and IRS-licensed Enrolled Agent. His website is www.LATaxGuy.com