Keep an eye on tax provisions expiring at year-end 2013
Unless Congress acts by Dec.31, 2013, 50% bonus depreciation expires, the $500,000 section179 deduction reverts to $25,000 and phases out dollar for dollar when assets put in service during the year excess $200,000 and both the work Opportunity Tax Credit and higher tax-free limit on employee transit benefits expire.
IRS IDENTIFIES EMPLOYMENT TAX TARGETS
The IRS is wrapping up its research program comprising detailed audits of 6,000 employers, and will use the results to target future education and audit efforts. final numbers have not been compiled, but an IRS official gave a preview of problem areas the IRS has identified:
- 1099s and backup withholding. A high percentage of employers do not file required 1099s for workers treated as ICs. A related issue is failing to use backup withholding when an IC does not provide a valid TIN for the employer to put on a 1099.