JANUARY 19, 2012
Head's Up…
Business tax returns now ask about Form 1099 compliance

2011 corporate and partnership tax returns now inquire if all Form 1099's are filed by the company. Right now is the 1099 filing season - we suggest special consideration be given in the filing of all 1099 forms so this question can be clearly answered "yes."

Changes afoot in the 401(k) space
  • New fee disclosure requirements
  • Target Date Retirement Funds
  • Is your Qualified Default Investment Alternatives the most "prudent"

Learn More >>

 Upcoming Events
Jan. 31, 2012 Tim Farrell with be presenting "Tax Impacts of Debt Restructuring - What Your Client Should Know Before They Take the Discount" for TMC See Details >>
Feb. 3, 2012 Bob Ingham and Mili Protic Lytell will be presenting "Understanding Contractor Financial Statements" for ABC.
Feb. 7, 2012 GSS Motivated Women's Group Inaugural Networking & Educational Meeting. See Details >>
Feb. 10, 2012 Tim Farrell and Catherine Mary Sullivan will be presenting "Making Taxes Work for Contractors" for ABC.
Washington Tax Update
Happy New Year! - Now it's tax season
It's that time of the year when your income tax documents start arriving in the mail. Some will document income earned that you need to report on your income tax return. Others will document deductions you can claim on your income tax return. You should expect to receive most of your 2011 tax documents by early to mid-February 2012.
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IRS issues new tangible property rules
The IRS has issued new temporary regulations that will affect virtually all taxpayers that acquire, produce or improve tangible property. Businesses can currently deduct a repair expense if the cost is incidental in nature and the repair neither materially adds to the value of the property nor appreciably prolongs its useful life. Costs also are currently deductible if they are for materials and supplies consumed during the year. Expenses must be capitalized if they are for certain permanent improvements or betterments. The new temporary regulations, effective Jan. 1, 2012, adopt or modify these familiar rules.
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Tax Court differentiates interest and dividends
A recent Tax Court case confirms that dividends receive different treatment from interest. Investors who purchase bonds are generally aware of the accrued interest rule: When you purchase a bond between coupon dates, or the dates on which the bond issuer pays interest, you have to pay the seller any interest that has accrued since the last coupon date, in addition to the purchase price of the bond. In a recent Tax Court case (George E. Ham v. Commissioner, T.C. Summary Opinion 2012-3, Jan. 5, 2012), George Ham tried to apply a similar principle to dividends received on mutual funds.
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Value of health care - when and what to report
The IRS has issued a notice providing interim guidance on reporting information to employees about the cost of their group health insurance coverage. This guidance restates and updates earlier guidance issued late in 2010.
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Is it a doll? An action figure? Only the taxman knows
Many young girls play with dolls. Many young boys play with action figures. Is there a gender bias in the tax law? Most toys - dolls and action figures included - are manufactured overseas and imported into the United States. The Harmonized Tariff Schedule of the United States imposes an import duty - or tax. The tax rate on dolls is 12 percent of value, while the tax rate on other nonhuman toys is 6.8 percent of value. The United States Court of International Trade has recently decided how Marvel Comics characters will be taxed.
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Manufacturing
Six strategies for reducing labor costs
In today's economy, it's critical to reduce costs and increase productivity wherever possible. Here are six strategies for reducing expenses and maximizing the productivity of one of your major costs -- your labor force.
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 Nonprofit
Nearly half of nonprofits have giving increase
In years of high giving, as many as 65 percent of groups enjoyed an increase in giving -- and fewer than 25 percent had a decline. For the first six months of 2011, 44 percent saw an increase in donations from the year before, similar to 2010 figures.
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 Construction
What's in store for contractors in 2012?
The construction industry continues to struggle, but there are still profitable projects to be found and completed. Here are some key predictive factors of contractor profitability for 2012.
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General Business & Strategies
How corporate integrity helps your bottom line
According to a new study, if a company focuses on seven characteristics of corporate integrity, it can expect better employee performance, less misbehavior, higher shareholder returns and an improved bottom line. What are those characteristics?
Read About it >>
 Wealth Advice / Estate Planning
Jan. 17 deadline for estate tax relief
The executors and beneficiaries of large estates of people who died in 2010 will now have until Jan. 17, 2012 to file some required returns and pay estate taxes. Learn more about these IRS requirements.
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 Family Business / Succession
Children should work away from family business first
Most family business owners are thrilled when adult children show a desire to work in the family business. But it may be best to let them work elsewhere first. Why? The experience can teach some very valuable lessons that may help the family business someday.
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Physicians
Incentive programs change for physicians in 2012
Some Physician Quality Reporting System incentive program changes in 2012 are designed to align with other Centers for Medicare & Medicaid Services quality reporting programs. New reporting measures also have been introduced.
Read About it >>
Valuations
Changes in valuation techniques will affect business owners
For those actively involved in acquiring companies, significant advances are being discussed and taught regarding the way acquired intangible assets are valued and tested for impairment. The impact of these changes on financial statements cannot be ignored.
Read About it >>
Latest Headlines
For big money, a new option in big TVs: OLED >>
Fox Business News
Taking the nonprofit route for launching your career >>
Wall Street Journal
2012 Medicare debate is all about the baby boomers >>
Yahoo Business News
Six New Year's resolutions for homeowners >>
Bankrate
2012 economic outlook: What's in store? >>
ABC News
A Closer Look…
Gregory, Sharer & Stuart is the largest independent accounting and business consulting firm in St. Petersburg, serving clients in the Tampa Bay area and beyond. Founded in 1984, we offer the expertise and resources of a national firm, while still giving the personal attention and responsiveness usually found only at smaller firms.

Our vision is to continue to grow in the Tampa Bay area, expanding to become the leading firm in our service area. You'll work with advisers who will provide the right answers, right now.®

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The technical information in this newsletter is necessarily brief. No final conclusion on these topics should be drawn without further review and consultation. Please be advised that, based on current IRS rules and standards, the information contained herein is not intended to be used, nor can it be used, for the avoidance of any tax penalty assessed by the IRS. Read the CPAmerica marketing policy.

© 2012 CPAmerica International