RetroTax - News

Wed, 02 Jan 2013 18:22:04 GMT

On Tuesday, January 1, 2013, the American Taxpayer Relief Act of 2012 was passed by the United States House of Representatives. President Obama is expected to sign the bill today, Wednesday, January 2, 2013.

Besides numerous provisions designed to avoid raising taxes for the majority of Americans, the bill also approves two-year extensions of the Work Opportunity Tax Credit (WOTC) and Federal Empowerment Zone programs, through the end of 2013. In addition, this WOTC extension is retroactive back to the beginning of 2012, effectively counteracting the program’s hiatus from January 1, 2012 to December 31, 2012. The extension also includes retroactivity for other federal tax credits including the Federal Empowerment Zone and Indian Employment Tax Credits. More specifics on each tax credit are expected be announced in the coming weeks.

Tax credits to aid in the Hurricane Sandy recovery for businesses are expected to be reviewed by the House as well. RetroTax is following these developments closely and will notify all affected clients when a bill has been passed.

Happy New Year!

Thu, 01 Nov 2012 16:48:09 GMT

Sean Parnell, Governor of the State of Alaska, proclaimed November 2012 as "Hire a Veteran Month" in Alaska, and encouraged all employers to extend employment opportunities to those who have served our nation faithfully in the United States Armed Forces.

On November 21, 2011, President Obama signed into law the VETERANS OPPORTUNITY TO WORK (VOW) to Hire Heroes Act. This new WOTC category offers increased credit amounts for hiring veterans and for the first time, allows qualified tax-exempt organizations to benefit from WOTC. VOW will provide tax credits of up to $2,400 for employers who hire veterans unemployed at least 4 weeks; $5,600 unemployed for longer than 6 months and $9,600 for businesses that hire veterans with disabilities unemployed longer than 6 months.

http://gov.alaska.gov/parnell/press-room/full-proclamation.html?pr=6292

Firms Pass Up Tax Breaks, Citing Hassles, Complexity Wall Street Journal Today

Thu, 20 Sep 2012 19:01:18 GMT

For years, politicians have used targeted tax breaks to try to influence corporate behavior, offering lower tax bills as an incentive to hire more workers, boost energy efficiency and buy more equipment, among other things.

But executives, particularly at small and medium-size companies, complain that many of the tax deductions are either too cumbersome or too confusing. In some cases, the cost of obtaining the tax benefit is greater than the benefit itself—a wrinkle that has helped spawn a cottage industry of tax-credit consultants. Also problematic is the threat of pushback from the Internal Revenue Service.

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3rd Quarter 2012 RetroTax Newsletter

Thu, 20 Sep 2012 18:39:12 GMT

Check out our most recent newsletter! If you would like us to add you to our newsletter distribution list, please let us know by filling out your information on our “Contact Us” tab to be added for future communications from us!
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2nd Quarter 2012 RetroTax Newsletter

Wed, 20 Jun 2012 18:45:57 GMT

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RetroTax Announces New Client - Midtex Oil, L.P.

Tue, 12 Jun 2012 19:37:04 GMT

Indianapolis, IN, June 12, 2012 – RetroTax is pleased to announce its partnership with Midtex Oil, L.P. The Texas petroleum wholesale company signed an agreement that will allow RetroTax to administer programs to generate federal and state tax credits and incentives. Midtex Oil specifically qualifies for the Federal Empowerment Zone (FEZ) and Work Opportunity Tax Credit (WOTC).

“Upon hearing about these tax credits that our company was eligible to receive it made my decision easy. Why not take advantage of every opportunity to save your company money, we are all in this to be successful any way we can.” Scott Schwind, CFO, Midtex Oil, L.P.

“We are very excited about our partnership with Midtex Oil, a leader in the petroleum wholesale industry,” said Alan Newcomb, CEO of RetroTax. “With Midtex Oil, we aim to ensure the company receives every available tax credit and incentive to which it’s entitled. We look forward to helping the partners reduce their tax liability while demonstrating our commitment to excellent customer service.”

For over 20 years, RetroTax has helped businesses from small and medium to Fortune 500 companies capitalize on the multiple tax credit opportunities statutorily available to them on a state and federal level. Federal tax credits such as Gulf Opportunity Zone, HIRE Act, Renewal Communities (RC), Veterans Opportunity to Work Act (VOW Act), Indian Tax credit and Federal Empowerment Zones can make a significant impact on a company’s bottom line.

About Midtex Oil, L.P.
With its beginnings in 1966, Midtex Oil has grown to become one of Texas' foremost petroleum wholesale companies. Today, Midtex Oil employs hundreds of people across the South-Central and Eastern regions of Texas. A family-owned business, Midtex Oil provides quality fuel and lubricating products as well as a convenient shopping experience at its Fischer Markets, Pit Stop and Petro Pantry Food Marts. For more information, please visit www.Midtex Oil.com.

About RetroTax
Established in 1996, RetroTax® helps businesses navigate complex legislation associated with finding and securing federal and state tax credits. These tax credits can be based on geographic regions in which your business operates, or on the demographic characteristics of your employees. In addition to finding and acting upon current and retroactive program eligibility, RetroTax® helps businesses establish policies and practices to create greater opportunities for receiving additional tax credits in the future. For more information, please visit www.retrotax-aci.com.

1st Quarter 2012 RetroTax Newsletter

Tue, 20 Mar 2012 18:45:57 GMT

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Important WOTC Information

Thu, 12 Jan 2012 17:12:15 GMT

On 12/31/2011, the Work Opportunity Tax Credit (WOTC) program formally expired for all non-Veteran target groups. However, legislation is still very much in the works to extend the program, and when the program is reauthorized it will be re-enacted retroactively as it has been many times in the program’s past. We have been in touch with the various state workforce agencies, as well as the Department of Labor, and they have informed us that they will be processing WOTC applications as usual during the legislative hiatus in anticipation of quick reauthorization.

Please continue to send WOTC forms to us for all new hires as usual until further notice. Doing so will ensure that you do not miss any of these valuable tax credits, as the 28 day deadline is still in effect during the hiatus. Please disregard the expiration dates on the forms; if you are using the versions listed below, you have the most recent documents:

IRS Form 8850, revision date August 2009
Form A, revision date 07/09
Form ETA 9154 (Disconnected Youth Self-Attestation Form), revision date May 2010

We will keep you updated on WOTC legislation developments, and as soon as updated documents are available we will send them out to all clients.

Please feel free to call or email with any questions, 800-925-0557 or wotc@retrotax-aci.com

RetroTax Screening for New Veteran WOTC Categories

Mon, 28 Nov 2011 18:56:10 GMT

Nov. 21 -- RetroTax is now screening for additional veteran Work Opportunity Tax Credit (WOTC) categories created by the “VOW to Hire Heroes Act.” The new categories offer increased credit amounts for hiring veterans and, for the first time, allow qualified tax-exempt organizations to benefit from WOTC.

Today, President Barack Obama, with the support of both Republicans and Democrats, signed into law the “VOW to Hire Heroes Act,” a measure that provides tax credits to companies that hire unemployed veterans. “With thousands of troops returning home before the end of the year and hundreds of thousands of unemployed veterans already here at home, it is increasingly important that we honor our promise to our veterans and their families. We must uphold our commitment to ensuring a seamless transition to civilian life for all our veterans,” said Rep. Jeff Denham, member of the House Committee on Veterans’ Affairs and veteran of Desert Storm.

The “VOW to Hire Heroes Act” will provide tax credits of up to $2,400 for employers who hire veterans who have been unemployed at least 4 weeks; up to $5,600 for hiring veterans who have been unemployed longer than 6 months; and up to $9,600 for businesses that hire veterans who have service-connected disabilities and have been unemployed longer than 6 months.

“As a Veteran and former member of the Marine Corps, I am very proud to be able to assist our clients with this important initiative,” said Alan Newcomb, CEO of RetroTax Tax Credit Services. “Our people in uniform deserve such an important opportunity to leverage the skills developed in the service with a reward to employers who understand what discipline and integrity these folks can bring to their organization.”

The new law also allows qualified tax-exempt organizations who hire veterans to benefit from Work Opportunity Tax Credits that can be used to reduce certain payroll taxes.

Currently, the unemployment rate for veterans is 12.1 percent. These tax credits would each incentivize businesses to hire service-members returning from Iraq and Afghanistan.

RetroTax continues to watch all related legislation and will contact clients with additional developments as well as new tax incentive opportunities as they become available.

In addition to administering the WOTC program, RetroTax can assist companies located in qualified geographic areas in securing retroactive tax credits for up to three years. These credits can equal as much as $3000 per person, per year.

RetroTax^® helps businesses navigate complex legislation associated with finding and securing federal and state tax credits. These tax credits can be based on geographic regions in which your business operates, or on the demographic characteristics of your employees. In addition to finding and acting upon current and retroactive program eligibility, RetroTax^® helps businesses establish policies and practices to create greater opportunities for receiving additional tax credits in the future.

Support Renewal Community Legislation!

Thu, 21 Apr 2011 17:21:33 GMT

We are asking all clients, alliance partners and friends of RetroTax to contact their Congressmen/women and enlist their support for HR 1428 - To amend the Internal Revenue Code of 1986 to extend the Renewal Community program through end of 2012.

The expiration of this program in December 2009 meant the loss of millions of dollars in tax credits that encourage growth and development in economically distressed areas across the United States.

Please contact your Congressmen/women with your own message of support or by utilizing our message below. To locate your Congressmen's contact information, follow the links below:

Contact your Senator

Contact your Representative

Your name

Your address

Date

Congressman/Congresswoman Name

Local District Office Address

Dear Congresswoman/Congressman Name

This letter is to urge you to support HR 1428 – To amend the Internal Revenue Code of 1986 to extend the Renewal Community program through end of 2012.

I understand that the bill was referred to the House Committee on Ways and Means on April 7, 2011.

In the sprit of creating and retaining jobs, a number one priority would be to support programs that have proven to be successful in achieving the goal of supporting businesses.

I feel strongly that your support of this bill will help businesses like mine expand and continue to hire those individuals living in economically depressed areas and in desperate need of jobs.

Thank you for all you do as our representative in Washington.

Sincerely,

Your name

Incentives Pave Path for Hiring

Tue, 05 Apr 2011 16:50:11 GMT

Reprinted from MySanantonio.com, Wednesday, March 23, 2011

In a jobless recovery, employers do not want to hire workers until business activity increases. Business activities won't widen unless more people are working and spending.

To break the standoff, the federal and state governments have created or extended tax incentives to make it easier for employers to hire workers, like the federal Empowerment Zone program and the Texas Back to Work program.

Other incentive programs exist. Some have been around so long that they operate in the murky background and are underused. Some companies are missing out on thousands or tens of thousands of dollars in federal and state tax credits or wage refunds, money that could be used for further hiring.

Helping companies find the most benefit from hiring incentives itself has become a big business.

The federal Work Opportunity Tax Credit program has existed since 1978. About 70 percent of companies that could benefit from it do not, said Alan Newcomb, CEO of Indianapolis-based RetroTax, a company active in San Antonio.

The WOTC typically pays up to $2,400 for each adult hire, $1,200 for a summer youth hire, $4,800 for a disabled veteran hire and $9,000 for a long-term welfare recipient. The workers must fit within one of 12 groups, such as a welfare recipient, a veteran, having a disability, living in a low-income area, an ex-felon and other groups.

The benefit is based on wages paid the first year of employment.

The state Temporary Assistance for Needy Families, or Medicaid State Tax Refund, has a maximum $2,000 refund to employers per eligible employee the first year of employment. Employers must pay certain Texas state taxes, provide health insurance to their employees and pay for some or all of the premiums.

Congress recently extended the Empowerment Zone incentive, a program San Antonio joined in 2002. Many employers may not know they can file for tax credits on qualified hiring going back to 2007, Newcomb said.

Employees hired since 2007 must live in eligible low-income census tracts. In San Antonio, the designated tracts are mainly in the central business district and the near East and West sides. The Empowerment Zone also includes Port San Antonio, Brooks City-Base and the Fredericksburg Road corridor.

Employers hiring workers living in the Empowerment Zone sometimes can qualify for more than one tax credit, Newcomb said.

Employers can position themselves for the incentives by having newly hired workers fill out Internal Revenue Service Form 8850, which screens workers for tax-credit eligibility. If employers do not file the paperwork for the incentives themselves, which can be time-consuming, they can turn over the forms to companies like RetroTax to process with software.

“A typical company would have 25 percent of their people that qualify,” Newcomb said.

RetroTax keeps 20 percent to 25 percent of the incentives as its fee, depending on the amount of assistance it receives from each employer, Newcomb said.

“We generated $22 million in tax credits in San Antonio in 2009,” Newcomb said. “It's a small portion of what we could be doing for San Antonio businesses.”

The economic recovery depends on hiring. The incentives can help.

dhendricks@express-news.net

Read more: http://www.mysanantonio.com/business/article/Incentives-pavepath-for-hiring-1257779.php#ixzz1IfUmj6oU

Who's Cashing In?

Tue, 05 Apr 2011 16:47:17 GMT

Link to article

Taking On Tax Breaks

Tue, 05 Apr 2011 15:55:52 GMT

(reprinted from WSJ.com, March 17, 2011)

By EMILY MALTBY

For small businesses, the anxieties of tax season go beyond filing returns and paying on time. Many owners realize, often too late, missed opportunities for tax breaks and how they will affect their businesses' future growth.

Numerous tax-law changes in recent years, especially small-business tax relief introduced during the recession, have been difficult for owners and their accountants to stay on top of. Among them: hiring credits, expanded capital-gains tax relief, a larger expensing limit for business assets and new health-care deductions.

The new provisions also come with a host of caveats and many lack permanency, making it difficult for owners to know which tax breaks are coming and going, and whether or not they qualify.

"It's a lot more stress than I ever recall," says Vadim Michael Korytny, a 28-year-old business owner. Each week, he spends three to four hours dealing with tax-related documents to stay in compliance. He also takes additional time to research tax information and talk with accountants and other owners.

"I'll learn about [a tax credit] and it will go and change on me," says Mr. Korytny, whose start-up, Paradigm AMO Corp. in Fort Lee, N.J., owns three Web businesses. "Or, I'll find out about it too late and realize I could have benefited." He recently found out about a five-year carry-back-loss provision introduced in the 2009 Recovery Act that his professional accountant hadn't mentioned.

For some firms, namely those in the technology sector, getting research-and-development tax credits is "a mind-numbing exercise," says Scott Hodge, president of the Tax Foundation, a research group based in Washington, D.C. "It's complicated, it's changed over time, and it requires a tremendous amount of paperwork backup and justification."

The most onerous tax breaks are those that tend to carry both a heavy paperwork burden and also frequently changing restrictions.

Congress has changed the Section 179 deduction several times in recent years, increasing the expensing limit from $150,000 to $250,000 for 2009 and then to $500,000 for 2010 and 2011. Businesses use Section 179 to write off certain equipment purchases. Although it means more available tax relief, the uncertainty of what the limit will be going forward stymies future business planning.

Two tax breaks enacted last year—one that gives a $1,000 credit for each new employee who was previously unemployed for 60 days, and another that relieves the employer's share of Social Security taxes on wages for newly hired workers—fell off the radar at many small firms because the health-care overhaul bill, which passed a few days later, overshadowed them. Owners who did know and qualify had to process additional paperwork, including the new IRS form W-11, to show that they and the employees met the requirements for the tax relief.

Not all missed tax breaks are unintentionally overlooked. Some business owners deliberately choose not to take them because they involve too much paperwork.

The home-office deduction "is so complicated that many business owners choose not to even claim the deduction," says Bill Rys, tax counsel for the National Federation of Independent Business, a lobbying group in Washington. "It's a one-page form and 13 different times they refer you back to the instructions to figure out how to calculate the deduction."

Other breaks have plagued business owners for years, says Jina Etienne, director of taxation for the American Institute of CPAs, based in New York.

Meals, for instance, have a host of stipulations on which types can and can't be deducted. And write-offs for car use, she says, are complicated. The deduction can be calculated either by the miles driven for business use, or by the actual expenses of the car, such as repairs, insurance and registration.

Tai Aguirre, 60, says he can't bear to keep track of the mileage on his car for business, so he takes the deduction based on the actual-cost method, even if the mileage-rate method could provide him with a greater relief.

Mr. Aguirre is vice president of sales and development at Taico Incentive Services Inc. in Patterson, N.Y.

"For all I know, I could benefit more if I take every single mile, but because of the paperwork and time investment, I take the general allotment," says Mr. Aguirre. "If I had a CPA sitting next to me all day…we could split hairs on everything that I do to collect more deductions."

http://online.wsj.com/article_email/SB10001424052748704893604576200772116931338-lMyQjAxMTAxMDEwNzExNDcyWj.html#

A Waste of a Perfectly Good Federal Tax Credit - Interview with John Hess

Tue, 19 Oct 2010 04:00:00 GMT

Read more about RetroTax and why you cannot afford to not take advantage of our services! Hear directly from one of our RetroTax Sales Team members, John Hess.
Link: http://crfusa.blogspot.com/2010/10/waste-of-perfectly-good-federal-tax.html