Showing posts from January, 2011

Little Leagues Must file 990 with IRS

All non profit organizations, including local Little Leagues, must file annually with the IRS. If the 990 is not filed, the Local Little League will lose its tax exempt status. See Notice

Congress Finally Addressing Tax Reform

Congress refused for over a decade to make the Estate and Gift Tax law changes. They only passed a last-minute 2 year extension in December. The Internal Revenue Code was last overhauled in 1986 in the Reagan era attempt toward simplification. Since then, more than 20,000 amendments and additions have been made. The result is a patchwork mess which is filled with "tricks" and "gottchas" making the Tax Code incomprehensible.

THe other issue is the high tax rates and the taxation of worldwide income. Most developed countries, including those in the European Union, only tax income earned in their own country. This worldwide taxation puts US companies and citizens at a big disadvantage. This hurts jobs and the economy. See WSJ article.

Spouses can combine $10 Mil Estate Tax Exemption

Starting in 2011 widows and widowers can add to their own estate tax exemption the unused exemption of the spouse who died most recently. This provision, plus an increase in the exemption amount to $5 million per person, enables married couples together to transfer as much as $10 million tax-free to their children or other heirs, either by making lifetime gifts or through estate plans. This 2-year provision expires January 1, 2013

Brooklyn Bar Owner Jailed for not Paying $1.3M in Sales Taxes

Brooklyn Bar Owner Jailed for not Paying $1.3M in Sales Taxes
On December 30, 2010 The principal owner of The Kettle Black, a popular sports bar and restaurant in the Bay Ridge section of Brooklyn, has pleaded guilty to stealing more than $1.3 million in city and state sales taxes over a five-year period. More