Tax Extender Update - 2015
On December 18, 2015, the President signed into law the Protecting Americans from Tax Hikes Act of 2015. The new law extends several tax provisions retroactice to the beginning of 2015, and also makes some provisions permanent. Among those tax provisions affected are the Additional Child Tax Credit, American Opportunity Credit, Earned Income Credit, Educator expenses deduction, Qualified Charitable Contribution from an IRA, Section 179 depreciation, and many other tax laws that had expired as of 12/31/14. Please contact Renae for more information at firstname.lastname@example.org
The Department of Labor has announced a proposed rule that would extend overtime protections to nearly 5 million white collar workers within the first year of its implementation. Failure to update the overtime regulations has left an exception to overtime eligibility originally meant for highly-compensated executive, administrative, and professional employees now applying to workers earning as little as $23,660 a year. For example, a convenience store manager, fast food assistant manager, or some office workers may be expected to work 50 or 60 hours a week or more, making less than the poverty level for a family of four, and not receive a dime of overtime pay. Proposed regulations would increase the limit for salaried (exempt) employees to earn $50,440 annually or be converted to hourly employees subject to overtime rules. This change could greatly affect small business owners across the country but having to pay additional wages for their employees. As of today, no update is available and this is a PROPOSED regulation only.read more
Did you get a letter from the IRS?
Don't be alarmed! Call PKC today and we can help. This is the time of year that the IRS will send out notice letters by mail to those that may have forgotten to include income on their tax return. Generally, a notice received now is for tax year 2013. When you receive a notice, you will have 30 days to respond. Please notify PKC at 608-783-0440 and we can assist you in resolving your issue.
For families with children and aging parents, it's important to make sure everyone guards their personal information online and at home. The IRS, state revenue departments, and the tax industry have teamed up to combat identity theft in the tax arena. Our theme: Taxes. Security. Together. Working in partnership with you, we can make a difference. Especially for families that use the same computer, students should be warned against turning off any security software in use or opening any suspicious emails. They should be instruction to never click on embedded links or download attachments of emails from unknown sources. Kids should be warned against oversharing personal information on social media. Aging parents are also prime targets for identity thieves. If they are browsing the internet, they made need to be a part of the same conversation about online security, avoiding spam email schemes, and oversharing on social media. Seniors also are especially vulnerable to scam calls and pressure from fraudsters posing as legitimate organizations, including the IRS, and demanding payment for debts not owed. The IRS will never make threats of lawsuit or jail or demand that a certain payment method, such as a debit card, be used. Fraudsters will try to trick seniors, telling them they have won a grand price in a contest or that a relative needs money – anything to persuade a person to give up personal information such as their Social Security number or financial account information. Some simple steps – and a conversation – can help the young and old avoid identity theft schemes and scammers. Taken from the IRS Security Awareness Tips, December 21, 2015Read more from the IRS
Whether you're seeking to manage your own assets, control how your assets are distributed after your death, or plan for incapacity, trusts can help you accomplish your estate planning goals. Their power is in their versatility--many types of trusts exist, each designed for a specific purpose. Although trust law is complex and establishing a trust requires the services of an experienced attorney, mastering the basics isn't hard. PKC Consulting recommends that all clients work with an attorney and an accountant to develop an estate plan.Read here to get a basic understanding of types of trusts.