The HIRE or “Hiring Incentives to Restore Employment”, Act was enacted into law on March 18, 2010, to combat unemployment in the United States. This act will provide two new tax benefits to employers that hire employees whom were previously unemployed or only working part time.

Benefit #1

The, HIRE or “Hiring Incentives to Restore Employment”, Act was enacted into law on March 18, 2010, to combat unemployment in the United States. This act will provide two new tax benefits to employers that hire employees whom were previously unemployed or only working part time.

Benefit #1
Employers who hire workers after February 3, 2010 and before January 1, 2011 may qualify for a 6.2-percent payroll tax incentive. This means they are exempt from their share of Social Security taxes on wages paid to these workers. It is important to note, that this change will not affect the employee’s social security benefits. The employee’s 6.2-percent share of the Social Security taxes will still need to be withheld by the employer.

Benefit #2
For each worked retained for at least a year, businesses can claim man additional general business tax credit. This credit is worth up to $1,000 per worker.

Stipulations
1. If you are hiring to fill an existing position the worker who previously held the position must have left his/her position voluntarily or with cause.

2. Family members and relatives hired into a new position do not qualify.

3. A statement from the newly hired employee is required certifying he/she was unemployed 60 days before beginning work at the business, or that he or she was a part-time employee from his/her previous employer (was working less than 40 hours for someone else).

4. These laws only apply to Businesses, Agricultural employers, tax-exempt organizations, and public colleges and universities.

Employers who hire workers after February 3, 2010 and before January 1, 2011 may qualify for a 6.2-percent payroll tax incentive. This means they are exempt from their share of Social Security taxes on wages paid to these workers. It is important to note, that this change will not affect the employee’s social security benefits. The employee’s 6.2-percent share of the Social Security taxes will still need to be withheld by the employer.

Benefit #2
For each worked retained for at least a year, businesses can claim man additional general business tax credit. This credit is worth up to $1,000 per worker.

Stipulations
1. If you are hiring to fill an existing position the worker who previously held the position must have left his/her position voluntarily or with cause.

2. Family members and relatives hired into a new position do not qualify.

3. A statement from the newly hired employee is required certifying he/she was unemployed 60 days before beginning work at the business, or that he or she was a part-time employee from his/her previous employer (was working less than 40 hours for someone else).

4. These laws only apply to Businesses, Agricultural employers, tax-exempt organizations, and public colleges and universities.

The IRS has recently issued an 80-page document entitled, “The Truth About Frivolous Tax Arguments”, discussing some of the common frivolous tax arguments made by individuals and groups whom oppose federal tax laws. The IRS has also released a news article which reminds taxpayers that under Code Sec. 6702, the taxpayer would be responsible for paying $5,000 should that person submit a tax return or any specified submission, that the IRS deems frivolous.

We will briefly outline the major topics covered in the document:

• Various contentions that: the federal income tax system is voluntary; terms in the Code such as taxable income, gross income and “the taxpayer” are improperly defined; and payment of taxes is unconstitutional. Other arguments in the category have fictional legal bases, for example, that IRS isn’t an agency of the U.S., or that taxpayers are entitled to the refund of social security taxes paid over their lifetime.
• Frivolous arguments in collection due process cases brought under Code Sec. 6320 or Code Sec. 6330 , including various contentions that assessments are invalid, or that the statutory notice of deficiency, notice of federal tax lien or statutory notice and demand is invalid.
• Contentions that the Tax Court isn’t authorized to decide legal issues, or that IRS personnel don’t have the authority to seize property in satisfaction of unpaid taxes, or that IRS employees lack credentials.

A final section of IRS’s frivolous tax arguments document explains in detail the penalties that courts may impose on those who pursue tax cases on frivolous grounds, and cites scores of cases rejecting various frivolous arguments and imposing penalties.

President Obama signed bill H.R. 4462 into law on January 22. The new law allows donors to immediately benefit from contributions made to the Haiti earthquake victims on their 2009 tax returns.

The bill allows individuals who make charitable contributions to aid Haitian earthquake victims to elect to claim an itemized charitable deduction on their 2009 tax return (instead of having to wait until next year to claim the deductions on their 2010 tax return). The election applies only to Haitian relief contributions made in cash after Jan. 11, 2010, and before Mar. 1, 2010. If the election is made, Haiti relief donations are deductible on the 2009 return, not the 2010 return. The bill also relieves recordkeeping requirements for Haitian relief contributions. For these contributions, a telephone bill satisfies the Code Sec. 170(f)(17) recordkeeping requirements if it shows the name of the donee organization, the date of the contribution, and the amount of the contribution.