This is a continuation of a multi-part series presented on our various Silkin Management Group blog sites covering some key tax issues that Silkin Management Group clients and blog readers should be aware of for this new year.
Previous articles have covered the following points: a) increased tax audits and b) some potential tax consequences of the federal health care legislation that will be ruled on by the Supreme Court this year, c) extensions of some favorable tax rules, d) federal, state and local governments on the look-out for new sources of revenue and e) the Presidential race and election. Yesterday’s article can be accessed at this Silkin Management Group blog site: http://bit.ly/xOWgXK.
Here are two more issues to consider:
• Unemployment taxes: Many states borrowed from the federal government to help pay for unemployment benefits during the economic downturn as they didn’t have enough money to pay for the extended benefits. 20 states have not repaid their loans. Employers in those states will be paying higher FUTA (federal unemployment) taxes due to this. The states involved are: Arkansas, California, Connecticut, Florida, Georgia, Illinois, Indiana, Kentucky, Michigan, Minnesota, Missouri, Nevada, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, Virginia and Wisconsin. Be on the look-out for higher unemployment taxes if you are a business owner in one of these states,
• Estate taxes: Through the remainder of this year the Bush-era rules regarding estate taxes remain in effect. One of the important items from these rules is a $5,000,000 exemption. Once the rules expire the exemption reduces to the pre-Bush figure of $1,000,000. This could have a major effect on business owners, especially small business owners whose businesses could easily be valued at more than the exempt amount, thus making it very difficult to pass on their business to their heirs without onerous taxes being assessed. Keep an eye on whether the $5,000,000 exemption is extended or allowed to expire. With the recent State of the Union Address by the President, it seems unlikely that the Democrats would be willing to extend this rule.
Keep an eye out on our Silkin Management Group blog sites for additional tax issues to be aware of this year.
Jono LoBue
Silkin Management Group Consultant
If you’d like to know more about Silkin Management Group visit our website at www.silkinmanagementgroup.com.
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