Value Billing Model

In this excerpt from his presentation, "Transition to Value Billing Model", Glen Thomas describes some of the benefits ThomasYork, LLP has received by moving to a value billing model. This was recorded on December 3, 2009 at the Boomer Technology Circles™ Circle #5 meeting in Kansas City.

Tax Exempt Organizations

I thought this might be of interest for those of you with tax exempt organizations. There have been some significant changes to the Form 990. If you haven't looked into the changes I would recommend doing that sooner rather than later. It may take longer to prepare the return this year. The IRS posted a list of FAQs (updated 4/5/10) to www.irs.gov/charities/article/0,,id=96581,00.html on the annual reporting requirements for exempt organizations. The applicable return (Form 990 or Form 990-EZ, the short form return) is due on the 15th day of the 5th month after the end of the organization's tax year. This is May 15th for calendar year organizations. Organizations with gross receipts and assets below certain thresholds at the end of their tax year can file Form 990-EZ. In addition, certain church-affiliated organizations and governmental organizations are not required to file an annual return. Organizations whose annual gross receipts are normally less than $25,000 are not required to file an annual return, but may be required to file an annual electronic notice (e-Postcard).

Haiti Donations Deductible for California

From the California Franchise Tax Board Tuesday:

The Franchise Tax Board (FTB) announced today that a new state law allows taxpayers to immediately deduct their donations made to provide relief for the January 12 Haitian earthquake.

"This is welcome news for Californians who are supporting earthquake recovery efforts in Haiti," said State Controller and FTB Chair John Chiang.

Charitable deductions are normally taken on a tax return the following calendar year. The new law gives donating taxpayers the added option to claim the deductions immediately on their 2009 returns instead of waiting to claim it on their 2010 returns.

To claim the charitable deduction on the 2009 tax return, both individuals and businesses must have made the Haitian-relief contributions to qualified charities before March 1, 2010. Only cash contributions such as those made by text message, check, credit card or debit card qualify. The contributions must be made specifically for the relief of victims in areas affected by the January 12, 2010, earthquake in Haiti.

The new legislation, Assembly Bill 347 (Stats 2010, Ch. 8), conforms to similar federal law (Haitian Relief Bill H.R. 4462; P.L. 111-126).

Information on the federal law is available in our previous post here.

Women in Construction Week

Women in Construction (WIC) Week will be celebrated March 7-13 by the National Association of Women in Construction (NAWIC). NAWIC’s mission is to enhance the success of women in the construction industry. As a NAWIC community, we will strive to make changes, to build new homes and businesses, roads and bridges. Together, we can make a difference in the lives of others. WIC Week provides a unified time for more than 5,500 NAWIC members to raise awareness of the opportunities the construction industry holds for potential employees and to highlight women as a visible, growing force in the industry. A broad range of activities will be employed to spread NAWIC members’ passion for working in construction. Award banquets, membership drives, community service projects and hands-on workshops will be conducted from coast to coast - all designed to promote construction and the value of women's contributions to the industry. We ask that you take few minutes this week to recognize the Women in Construction who have made a difference in your lives. Women who "do it all" from leading successful businesses, to raising great kids, or being a loving wife, or excelling in a career. We do it all. If there is a woman who you think has made a difference and made things better or brighter, this is the time to recognize her. For more information on WIC Week or NAWIC, click any of the links below. http://www.nawic.org/nawic/WIC_Week_2010.asp http://www.nawic.org http://www.facebook.com/nawicregionten

Free Webinars on California Withholding

The California Franchise Tax Board if offering free webinars about employer's withholding requirements, including changes that became effective in January of this year. To view descriptions, times, and register for a free webinar, click here.

Accelerated California Estimated Taxes Required

In an effort the keep cash coming into the state coffers, the legislature included in the most recent budget a provision requiring taxpayers who make estimated tax payments to pay more upfront. This applies to both individual and corporate taxpayers. Taxpayers may be required to make estimated tax payments if their withholding will not cover their tax liability. For federal tax purposes, the payments must be paid in four equal quarterly installments. Starting in 2009 with the state's fiscal challenges, California began to require a higher percentage of the payments in earlier quarters. Starting in 2010, it is accelerating required payments even more, to the following schedule:

Quarter	% due
1st quarter	30%
2nd quarter	40%
3rd quarter	0%
4th quarter	30%

If you are required to make estimated tax payments, be sure to reference these new requirements.