Posts Tagged ‘Tax’

Burlington bakery to receive tax credits

May 26th, 2014

An eastern Iowa bakery will receive nearly $400,000 from the state over the next 10 years for creating more than two dozen new jobs paying a higher-than-average wage.

Burlington is one of five cities in the state that qualify for the Targeted Jobs Withholding Tax Credit program, which has been administered by the Iowa Economic Development Authority since 2003. The other four are Council Bluffs, Fort Madison, Keokuk and Sioux City.

If a company’s location is within one of those cities’ urban renewal areas and creates 10 new jobs paying more than the countywide average, or invests $500,000 in real estate or equipment, it qualifies for the program and may apply.

Baker’s Pride was awarded the grant last week for promising 27 jobs that will pay more than the countywide average of $17.09.

In all, the bakery is adding 62 new jobs, with 35 of them being line-worker jobs paying $14 an hour.

Baker’s Pride also will be bringing new equipment online to improve its doughnut line and freezer facility and will add a new line of hot dog and hamburger buns.

The machinery and equipment will cost about $7.8 million.

Computer hardware and software will cost about $90,000. About $1 million will be spent on research and development. In total, Baker’s Pride will invest about $9.6 million over the next 18 months.

Source:http://www.desmoinesregister.com/story/news/2014/05/26/burlington-bakery-tax-credits/9586833/

Tax officials suggest many wait until April 3 to file

March 25th, 2014

Minnesotans entitled to share in $49 million of new individual income tax breaks should wait a week and a half to file tax returns, state revenue officials say.

“It will allow them to get their refunds quicker,” Assistant Revenue Commissioner Terri Steenblock said Monday.

If taxpayers who qualify for one of 10 new breaks file returns now, Revenue Commissioner Myron Frans added, it could be months before they get their refunds. If they wait to file until April 3, tax officials expect software and tax preparers to be ready to handle law changes state legislators and Gov. Mark Dayton approved Friday.

April 15 remains the income tax deadline.

On Friday, Frans urged people to wait until Monday to file returns if they might qualify for new tax breaks. On Monday, he and Steenblock said that waiting for everything to be ready is in the best interest of taxpayers and their department.

Steenblock said that even if taxpayers wait until April 3 to file, “we cannot guarantee every software vendor will be able to update their software.”

After April 3, she said, taxpayers filing returns electronically via software that does not include updates from the new law will be notified quickly that their returns were rejected. Returns will not be rejected if filed before April 3, but any refunds due taxpayers could be delayed for months.

Frans said he hopes to have a better idea Thursday about how long his department will need to finish the work reviewing tax returns for missed breaks.

In many cases, Revenue Department employees hope to make changes themselves and increase refunds for those who qualify, without taxpayers taking any further action.

In other cases, the department will notify taxpayers they must file an amended return to take advantage of the law.

“This is a very complex task we are undertaking,” Steenblock said.

Steenblock said the Revenue Department is working to change tax forms and instructions and briefing software venders on the changes. Next, she said, internal department processes will be updated, eventually followed by the department reviewing returns already filed to see if taxpayers may qualify for the new tax cuts.

The tax bill lawmakers passed and Dayton signed on Friday set aside $1 million for the department to undertake the job.

While tax cuts overall amounted to $443 million, just $49 million of them affect individual income tax returns being filed now.

“About 1 in 10 taxpayers probably will be able to benefit,” Frans said, meaning that up to 275,000 people will split the $49 million in new tax breaks.

Taxpayers who do not qualify for the new tax breaks can go ahead and file returns now.

Frans said that he expects Minnesotans to have a lot of questions, so his department is increasing the number of operators at its call center: (651) 296-3781 and (800) 652-9094.

Minnesotans will benefit from two tax changes when filing returns next year, Frans said.

A working family credit for people earning up to $40,000 a year was expanded a bit this year, but Frans said that it expands much more next year.

Also, he said, about half of Minnesota taxpayers will benefit next year from a change in how the state treats married couples. The change comes when the state conforms to federal law that gives married couples a tax break.

Source:http://www.wctrib.com/content/tax-officials-suggest-many-wait-until-april-3-file-0

Free Online Tax Software Offers for Nonprofits

February 7th, 2014

Small nonprofit organizations who need to file a Form 990-N can do so for free using Aplos Software, the company has announced. Prior year returns can be filed for $19.99 each.

Form 990-N is a short electronic return for organizations whose annual receipts are normally $50,000 or less. Aplos e-File takes the tax-exempt organization through the form step-by-step, provides relevant tips and guidance, and ensures that all needed information is included. When complete, Aplos e-File submits the return electronically to the IRS and provides a copy of the return for their records.

“Our mission is to make managing a nonprofit simple and that starts with required IRS returns to maintain their tax-exempt status,“ said Tim Goetz, co-founder of Aplos Software. “The majority of the nation’s nonprofits are small, so we made Form 990-N free and simple. As a result, these organizations can confidently submit their return and continue with their mission.

The deadline for submitting Form 990-N is the 15th of the fifth month after the close of the organization’s tax year. Nonprofits that start a new fiscal year on January 1 are now eligible to submit their 2013 return and their Form 990 filing deadline is May 15, 2014. If an organization fails to file the form three years in a row, the organization will automatically lose its tax-exempt status with the IRS. There are no penalties if a Form 990-N is submitted late.

Source:http://www.cpapracticeadvisor.com/news/11306812/free-online-tax-software-offers-for-nonprofits

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