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November, 2010
Dear Clients and Friends:
Thank you for signing up to my newsletter service. I launched this due to the quick changing tax laws that I wanted to share with all of you. There are many things coming in the near future that you should be aware of. Some of these changes you will like, but many you will not. In either case, my goal is to help provide you the tools that allow my staff and I to assist you in your tax planning.
Please take a moment to look at the below important news items available on our site:
Here are a few very new items:
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1099 Law change. Effective for payments after 12/31/10, all landlords of rental property must issue a form 1099-MISC to any supplier, vendor or contractor that charges you $600 or more in the 2011 calendar year. That means the landlord must issue form(s) W4 immediately (as soon as possible) or when services are rendered, to vendors so the correct information will available to you to issue 1099s to them. (Remember, this is NOT just subcontractors and it no longer matters if the vendor is a corporation or not).
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1099 Law change #2- Effective for payments after 12/31/10- Credit card processors will be issuing 1099Ks to all merchants that accept credit cards.
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1099 Law change #3- Effective for payments after 12/31/11 – Same as #1 above but valid for ALL companies, regardless of product, service or type of entity. If these laws remain, I will most likely offer an enhanced type of 1099 service for those that would like these forms prepared for them. We do these now for the regular 1099 issuers under existing law.
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Bush tax cuts – Don’t know yet but as of now rates have been released for all taxpayers without these “cuts” for anyone. If Congress fails to act, effective 01/01/11 all taxpayers will see a significant tax increase.
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AMT (Alternative Minimum Tax) – Officially don’t know yet but sources tell me to expect another “patch” to give some relief to middle-class taxpayers
Things are changing daily! I will try to keep everyone posted as much as possible. Remember that my website has a “newsletter archive” section to view any and all newsletters. Remember too that there is still time to come in and have me sit with you for tax planning if you feel that is necessary. I also continue to work IRS resolution cases, those clients that are a few years behind or under audit after having someone else prepare their tax return, and my firm continues to offer Bookkeeping services as well.
May everyone have a safe close to the (tax) year 2010!
Henry
HENRY C KULIK, JR. CERTIFIED PUBLIC ACCOUNTANT,LLC 114 Merriam Ave; Suite 201 Leominster, MA 01453 978-514-8829 www.henrykulik.com
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