Taxpayers sometimes still owe after installment agreement

Some taxpayers still owe taxes even after the successful completion of a streamlined installment agreement program, according to a report from the Treasury inspector general for tax administration.  Installment payments have not included current and future accruals of penalties and interest, meaning that many taxpayers continue to owe money to the Internal Revenue Service after the 60-month program.
  Accounting Today (9/27)     

What Employers Need to Know About Claiming the Small Business Health Care Tax Credit

Many small employers that pay at least half of the premiums for employee health insurance coverage under a qualifying arrangement may be eligible for the small business health care tax credit. This credit can enable small businesses and small tax-exempt organizations to offer health insurance coverage for the first time. It also helps those already offering health insurance coverage to maintain the coverage they already have. The credit is specifically targeted to help small businesses and tax-exempt organizations that primarily employ 25 or fewer workers with average income of $50,000 or less.

High-Low Per Diem Extended

IRS reinstates high-low method, issues per diem rate guidance
On Friday, the Internal Revenue Service stated that it will continue to allow taxpayers to use the high-low method to substantiate travel expenses, reversing a July decision to discontinue the method.  The IRS also provided guidance on the use of the federal per diem rate. JournalofAccountancy.com (9/30)      .  If you incur business related travel, oftentimes per diem rates will provide a larger deduction for you than the actual expenses you incurred.  Contact me if you have questions regarding the use of per diem rates.

Impairment-Related Work Expenses

Impairment-Related Work Expenses

Impairment-related expenses are those ordinary and necessary business expenses that are:
1. necessary for you to do your work satisfactorily;

2. for goods and services not required or used, other than incidentals, in your personal activities; and

3. not specifically covered under other income tax laws.

For these rules to apply, you must first meet the definition of disability. You have a disability if you have:

a physical or mental disability (for example, you are blind or hearing-impaired) that functionally limits your being employed; or

a physical or mental impairment (for example, a sight or hearing impairment) that substantially limits one or more of your major life activities, such as performing manual tasks, walking, speaking, breathing, learning or working.

If you have a disability, you can take a business deduction for expenses that are necessary for you to be able to work. If you take a business deduction for these impairment-related work expenses, they are not subject to the 7.5 percent limit that applies to medical expenses.