Dec 12, 2018
Press Releases
2010 Tax Relief Act PDF Print E-mail

The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, also known as the 2010 Tax Relief Act, was signed into law on December 17, 2010. For the purpose of benefiting our clients, we have provided you with some key highlights of this Act.

Individual Tax Rates: Previously, for tax years beginning after Dec. 31, 2010, tax rates were scheduled to rise to 15%, 28%, 31%, 36% and 39.6%. The Act maintains the current rates of 10%, 15%, 25%, 28%, 33% and 35% for the next two years, through 2012.

Estates and Trusts Tax Rates: Beginning after Dec. 31, 2010, the top four income tax rates for estates and trusts were scheduled to rise to 28%, 31%, 36%, and 39.6%. The Act maintains the current rates of 25%, 28%, 33%, and 35% for an additional two years, through 2012.

Bonus Depreciation Extended: The Act extends first-year depreciation to equal 100% of the cost of qualified property placed in service after Sept. 8, 2010 and before Jan. 1, 2012 and 50% of the cost of qualified property placed in service after Dec. 31, 2011 and before Jan. 1, 2013. Thus, for eligible property, business may completely write off the depreciation in their 2011 tax return.

Changes to Form 1099 Requirements PDF Print E-mail

Previously, the law dictated that taxpayers must submit Form 1099 to service providers that were paid over $600 in the tax year. The form was not required to be submitted for service providers that operated as a corporation. Following the Patient Protection and Accountability Act of 2010, the requirements have changed. Beginning January 1, 2011, taxpayers must submit Form 1099 to every service provider that was paid over $600, regardless of their status as a corporation. The new requirements will affect the 1099s for the January 31, 2012 deadline. In other words, the 1099s due this year on January 31, 2011 will follow the old rule and will not be sent for service providers operating as a corporation. The 1099’s for next year, however, will follow the new rule. In order to better prepare for the new requirements, please keep track of all service providers that you pay over $600 throughout this year. Remember to collect the following information by having each provider fill out a form W-9:

·         Business/Individual’s Name and Address

·         Business/Individual’s status (ex: corporation, LLC, etc.)

·         Social Security Number (for sole proprietorships and individuals)

·         Tax ID Number (for business entities)