I DIDN'T GET A W-2. NOW WHAT?

Q. I worked for a company during 2010 as an employee but I can't get them to send me my W-2 so I can't file my return. I know I should have a refund. What do I do?

A. You should receive a Form W-2, Wage and Tax Statement by January 31, 2011. Maybe they are just a little slow. If you don't get the W-2 or if you can't find the company, here are the steps you should take.

Next, since you did not receive your W-2 by February 14th, contact the IRS for assistance at 800-829-1040. When you call, you must provide your name, address, city and state, including zip code, Social Security number, phone number and have the following information:

• Employer’s name, address, city and state, including zip code and phone number
• Dates of employment
• An estimate of the wages you earned, the federal income tax withheld, and when you worked for that employer during 2010. The estimate should be based on year-to-date information from your final pay stub or leave-and-earnings statement, if possible.

Then, if you have not received your Form W-2 and contacted the IRS as stated above, you may use Form 4852, Substitute for Form W-2, Wage and Tax Statement. Attach Form 4852 to the return, estimating income and withholding taxes as accurately as possible. Note: There may be a delay in any refund due while the information is verified.

NEW INDEPENDENT CONTRACTOR REQUIREMENT IN OBAMA BUDGET

If you think that the government doesn't know that a lot of workers are being misclassified and a lot of that money is not being reported, you are wrong. Obama is trying to fix this by requiring verification of worker status and possible withholding.

The proposal in his budget would require independent contractors who receive payments of $600 or more from a business to provide a certified taxpayer identification number (TIN) to the business. The business would then be required to verify the contractor’s TIN with the IRS, and, if the TIN cannot be verified by the IRS, the business would be required to withhold a flat-rate percentage of the gross payments.

Contractors could also require businesses to withhold a flat-rate percentage of their gross payments. The contractor could choose withholding at a 15%, 25%, 30% or 35% rate.

This is just proposed for now and would have to get through Congress. We will watch this for you.

Larry Kopsa CPA

HOW DO I GET A REPLACEMENT OF MY SS BENEFITS FORM

Q. I can't find the form that the Social Security gave me showing my benefits for 2010. Now what do I do?

A. Easy just click on the following attachement.

https://secure.ssa.gov/apps6z/i1099/main.html

OBAMA CARE REQUIRES 1054 MORE IRS WORKERS

If you followed my comments on the health care reform, one of my concerns was that much of the monitoring and regulations was going to fall in the lap of the IRS. Now if you have ever tried to deal with the IRS on a question, you know how frustrating it can be. Imagine that they were going to be responsible for your health care. Now according to an article in the US News and World Report, the IRS is going to be expanding.

The USNews.com reports that "says it will need an battalion of 1,054 new auditors and staffers and new facilities at a cost to taxpayers of more than $359 million in fiscal 2012 just to watch over the initial implementation of President Obama's health care reforms." The story notes that "among the new corps will be 81 workers assigned to make sure tanning salons pay a new 10% excise tax." Of course, the new health care program "won't be fully implemented until about 2014."

http://app.expressemailmarketing.com/get.link?linkid=2651299&subscriberid=143772548&campaignid=706727&linkurl=http%3a%2f%2fwww.usnews.com%2fnews%2fblogs%2fwashington-whispers%2f2011%2f02%2f15%2fhealthcare-reform-law-requires-new-irs-army-of-1054

We will keep watching this for you.

Larry Kopsa CPA

ARE YOU READY FOR INFLATION?

A couple of article I picked up last weekend caught my attention.

Larry Kopsa CPA


State, local and federal debt in U.S. is highest since WWII

(Washington Post) The total debt of city, state and federal governments in the U.S. is greater than the size of the economy, the highest level since World War II, government data show. Debt declined quickly after 1946, but the level of indebtedness is increasing and stands to increase for years, regardless of action taken by Congress and President Barack Obama, according to this article. Rising interest rates and slow domestic growth make deficit reduction more difficult than it was after World War II, the newspaper noted.

http://r.smartbrief.com/resp/BimIvscgyzgPBasYajaoyAaldhkI?format=standard


World's economy is nearing a "breaking point," World Bank's Zoellick says

(Business Day) Commodity prices are driving the global economy to the "breaking point," World Bank President Robert Zoellick told finance ministers from the Group of 20 nations. Central banks throughout the world are under pressure to raise interest rates as surging commodity costs increase inflation.


http://r.smartbrief.com/resp/BimIvscgyzgPBasYajaoyAaldhkI?format=standard

THE WORST PLACE TO DIE

(MarketWatch) -- MarketWatch.com reports that even "with the new $5 million federal estate tax exemption for 2011 and 2012," there are still 20 states and D.C. that "impose estate or inheritance taxes that kick in below the $5 million mark, and some kick in below $1 million."

Ohio, New Jersey and Rhode Island have estate tax exemptions of less than $1 million (Ohio at $338,333; New Jersey at $675,000; and Rhode Island at $850,000).

MarketWatch reports, "The worst place to die is New Jersey with a combined effective estate and inheritance tax rate of 54.1%. ... In second place is Maryland at 50.9%." Meanwhile, "six states impose only inheritance taxes, which are assessed on the value of specific inherited assets in excess of the applicable exemption."

The inheritance tax rates "are 9.5% in Tennessee, 15% in Iowa and Pennsylvania, 16% in Kentucky, 18% in Nebraska, and 20% in Indiana." The story notes 28 states have no estate or inheritance taxes, and that "they are better places to die."

http://www.marketwatch.com/story/story/print?guid=6367c4fc-393f-11e0-ac3a-072128040cf6

Obama plan could bring employers higher taxes to pay for unemployment aid

The AP reports that U.S. employers "could face higher taxes in 2014 under an Obama administration budget proposal designed to help states hard hit by the recession and the weak recovery to refill their unemployment insurance funds and repay money borrowed from the federal government."

According to the story, "the proposal would give states the choice of increasing tax payments from businesses, altering their benefits or a combination of both." The AP notes that "the administration plan would increase the income level that is subject to unemployment insurance taxes from $7,000 to $15,000," and that the "states would be allowed to use the new income level to raise more money from employers." The story reports that 30 of the states owe the federal government $42 billion that was borrowed to make payments to individuals claiming unemployment.

http://app.expressemailmarketing.com/get.link?linkid=2651297&subscriberid=143772548&campaignid=706727&linkurl=http%3a%2f%2fwww.action3news.com%2fGlobal%2fstory.asp%3fS%3d13988815

Larry Kopsa CPA