News
Worker, Homeownership and Business Assistance Act of 2009
Apr 1, 2010 —The Worker, Homeownership and Business Assistance Act of 2009 contains four items in particular CPAs should be aware of:
1) The First Time Homebuyer Credit has been extended and the rules have been changed. http://www.irs.gov/newsroom/article/0,,id=215791,00.html
2) The 5 year net operating loss deduction was extended and its rules have been changed. http://www.irs.gov/newsroom/article/0,,id=215657,00.html
3) The failure to file penalty for partnerships and S corporations has been increased from $89 in 2009 to $195 in 2010. See Below:
SEC. 16. INCREASE IN PENALTY FOR FAILURE TO FILE A PARTNERSHIP OR S CORPORATION RETURN.
(a) In General- Sections 6698(b)(1) and 6699(b)(1) of the Internal Revenue Code of 1986 are each amended by striking `$89' and inserting `$195'.
(b) Effective Date- The amendments made by this section shall apply to returns for taxable years beginning after December 31, 2009.
4) A federal e-file mandate has been passed impacting the filing of 1040 and 1041 returns. See below:
SEC. 17. CERTAIN TAX RETURN PREPARERS REQUIRED TO FILE RETURNS ELECTRONICALLY.
(a) In General- Subsection (e) of section 6011 of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:
`(3) SPECIAL RULE FOR TAX RETURN PREPARERS-
`(A) IN GENERAL- The Secretary shall require than any individual income tax return prepared by a tax return preparer be filed on magnetic media if-
(i) such return is filed by such tax return preparer, and
(ii) such tax return preparer is a specified tax return preparer for the calendar year during which such return is filed.
(B) SPECIFIED TAX RETURN PREPARER- For purposes of this paragraph, the term `specified tax return preparer' means, with respect to any calendar year, any tax return preparer unless such preparer reasonably expects to file 10 or fewer individual income tax returns during such calendar year.
(C) INDIVIDUAL INCOME TAX RETURN- For purposes of this paragraph, the term `individual income tax return' means any return of the tax imposed by subtitle A on individuals, estates, or trusts.'.
(b) Conforming Amendment- Paragraph (1) of section 6011(e) of the Internal Revenue Code of 1986 is amended by striking `The Secretary may not' and inserting `Except as provided in paragraph (3), the Secretary may not'.
(c) Effective Date- The amendments made by this section shall apply to returns filed after December 31, 2010.
