Fiscal Cliff Legislation is "Law"

President Obama has signed into law the American Taxpayer Relief Act of 2012 (H.R. 8) that allows tax rates to rise on the nation’s highest earners while also extending dozens of tax cuts for individuals and businesses. Specifically, the bill:

Raises the top tax rate to 39.6 percent for married couples earning $450,000; single taxpayers earning $400,000. These amounts will be indexed for inflation.

Raises long-term capital gains and qualifying dividends tax rate to 20 percent (from 15 percent) for taxpayers in the 39.6 percent tax bracket for regular and alternative minimum tax.

Permanently extends Bush-era tax cuts from 2001 and 2003 for all other taxpayers.

Reinstates phase out of personal exemptions and overall limitation on itemized deductions for married couples filing jointly earning over $300,000 and single taxpayers earning over $250,000.

Raises the maximum estate tax rate to 40 percent but keeps the exemption amount at $5 million, adjusted for inflation.

Extends for 5 years (through 2018) the American Opportunity Tax Credit to pay for higher education, and special relief for families with 3 or more children for the refundable portion of the child tax credit and increased percentage for the earned income tax credit.

Patches the AMT for 2012 and adjusts the exemption amount for inflation going forward.

Extends through 2013 the following individual tax benefits: above the line deduction for teacher expenses, relief from cancellation of debt income for principal residences, deduction for mortgage insurance premiums as interest, election to deduct state and local sales taxes in lieu of income taxes, above the line deduction for qualified education expenses, tax-free distributions from IRA accounts for charitable purposes.

Extends through 2013 certain business tax provisions that expired at the end of 2011 including: work opportunity credit, the Section 179 asset expensing at $500,000,

Extends 50 percent bonus depreciation through 2013.

Extends through 2013 certain energy tax incentives that expired at the end of 2011 including: energy efficient credit for existing homes, energy efficient credit for new homes

Access your client portal anywhere, anytime!

Announcing the NetClient CS Mobile App


Available as a free download to Apple® or Android™ devices, the NetClient CS mobile app offers our clients on-the go access to the services and content our firm has made available. Clients can access tax returns, financial statements, and other documents pushed to NetClient CS by Shawn M. Williams, CPA, LLC, as well as online accounting and payroll services, payroll data, and much more. This convenient app is a mobile extension of NetClient CS client portal services—making it even easier for us to connect with our clients and do business anywhere, anytime.

Apple:  http://itunes.apple.com/us/app/netclient-cs/id572952397?mt=8&uo=4
Android: http://play.google.com/store/apps/details?id=com.thomsonreuters.clientess

SHAWN M. WILLIAMS, CPA, is Appointed to FLORIDA GULF COAST UNIVERSITY ACCOUNTING & TAX COMMITTEE

FORT MYERS, June 25, 2012 – SHAWN M. WILLIAMS, CPA, of Chouinard & Williams Certified Public Accountants, LLC, Fort Myers, Florida, has been appointed by the Florida Institute of Certified Public Accounts to both Florida Gulf Coast University Accounting & Tax Committee and State Tax Conference Committee beginning July 1, 2012.


Chouinard & Williams Certified Public Accountants, LLC is a full-service CPA firm with expertise in the area of federal and state tax compliance & controversy, small business accounting, QuickBooks services, CIRA/HOA audits, reviews, compilations, new business formation, and strategic business planning. Shawn M. Williams, CPA, is an active member of the Florida Institute of Certified Public Accountants, the professional association representing the interests of more than 18,400 CPAs with over 4,400 offices throughout Florida.

Chouinard & Williams Certified Public Accountants, LLC can be reached by telephone at 239-275-9997, or via email at info@ftmyerscpa.com.

Low Tax Rates & Low Interest Rates Provide Unique Planning Opportunities

Bush Tax Rates are set to expire at year-end, and, income tax increases in 2013 and later from the phased-in health care legislation, as well as other tax increase proposals advance in Congress, 2012 may be the last years of low tax rates.

Interest Rates (Source Rev. Rul. 2012-15)

Short Term/Demand Less than 3 years - 0.23%
Mid-term Over 3 but not over 9 years - 1.07%
Long-term Over 9 years - 2.61%

With both of these factors in place, Businesses and Individuals may be able to properly plan and benefit from these in 2012. A few examples may be:

• Refinance and Restructure Business Debt;
• Bargain Term Employee Loans;
• Transfer Business Property for Services;
• Trigger Capital Gains in 2012;
• Accelerate Qualified Dividends in 2012;
• Accerlerate income into 2012;
• Defer 2012 expenses;
• Estate Planning;
• Gifting of Business Interests.

Each of these strategies must be evaluated on an individual basis both on a federal and state perspective. These strategies are provided as general knowledge and should not be considered a substitute for seeking the advice of your Accountant, CPA or Attorney.

Small Employer Health Insurance Credit

The Small Employer Health Insurance Credit is a credit for Employers with a staff of no more than 25 full-time workers who earn average annual wages of no more than $50,000 the credit can be claimed on your Annual Income Tax Return with attached Form 8941 Showing the calculation of the credit.

If you need help with this credit our firm is able to help Call us Today!

Financial Fitness Friday

As a member of the Florida Institute of CPAs (FICPA), I wanted to let you know about a terrific opportunity we have coming up. On Friday, Nov. 5, 2010, from 9 a.m. to 3 p.m., volunteer FICPA members will be available to answer financial-related questions – free of charge – to Florida residents.

According to The National Foundation for Credit Counseling’s 2010 Consumer Financial Literacy Survey Final Report, about 4 in 5 adults agree that they would benefit from advice and answers to everyday financial questions from a professional.

• Are you part of Florida's high unemployment rate?
• Do you have a budget in place? Have you put it into action?
• Are you expecting an addition to your family?
• Have you been thinking about withdrawing from or increasing your contribution to your retirement funds?
• Did you recently start or are ready to graduate from college?
• Are you a recent empty-nester?
• Are you aware of any year-end tax breaks that could affect you?
• Did you start your own business this year?

Our certified public accountants are qualified professionals who can help answer questions you have about these and any other life and financial changes you’re experiencing.

I hope you can take advantage of this once-a-year event, free to Florida residents.
FICPA Financial Fitness Friday

Nov. 5 from 9 a.m.-3 p.m.
(800) 342-3197 Ext. 554 (in Florida) | (850) 224-2727 Ext. 554
Submit your question(s) today

Questions may be asked online anytime, but will be answered on Nov. 5, between 9 a.m. and 3 p.m.

For more information on this event, visit www.ficpa.org/public/financialfitnessfriday or contact Brenda Hubbard, the FICPA Director of Academic Relations & Student Initiatives:
(800) 342-3197 Ext. 419 (in Florida) | (850) 224-2727 Ext. 419 | hubbardb@ficpa.org.

I am pleased to be a part of an association that helps Florida get financially fit and wanted to share this information with you. Please feel free to forward this to your friends, family and coworkers.

Thank you for participating in and helping to make this event successful.

Small Not-for-Profit Organizations May Be at Risk of Losing Tax Exempt Status

Small nonprofit organizations at risk of losing their tax-exempt status because they failed to file required returns for 2007, 2008 and 2009 can preserve their status by filing returns by October 15, 2010, under a one-time relief program, the Internal Revenue Service announced today.

The IRS today posted on a special page of IRS.gov the names and last-known addresses of these at-risk organizations, along with guidance about how to come back into compliance. The organizations on the list have return due dates between May 17 and October 15, 2010, but the IRS has no record that they filed the required returns for any of the past three years.

“We are doing everything we can to help organizations comply with the law and keep their valuable tax exemption,” IRS Commissioner Doug Shulman said. “So if you do not have your filings up to date, now’s the time to take action and get back on track.”

Two types of relief are available for small exempt organizations — a filing extension for the smallest organizations required to file Form 990-N, Electronic Notice, and a voluntary compliance program (VCP) for small organizations eligible to file Form 990-EZ, Short Form Return of Organization Exempt From Income Tax.

Small organizations required to file Form 990-N simply need to go to the IRS website, supply the eight information items called for on the form, and electronically file it by October 15. That will bring them back into compliance.

Under the VCP, tax-exempt organizations eligible to file Form 990-EZ must file their delinquent annual information returns by October 15 and pay a compliance fee. Details about the VCP are on the IRS website, along with frequently asked questions.

The relief announced today is not available to larger organizations required to file the Form 990 or to private foundations that file the Form 990-PF.

The IRS will keep today’s list of at-risk organizations on IRS.gov until October 15, 2010 which can be found by Clicking Here. Please note that this is an incomplete list, as there may be entities out there that need to comply but are not found at that link. Organizations that have not filed the required information returns by that date will have their tax-exempt status revoked, and the IRS will publish a list of these revoked organizations in early 2011. Donors who contribute to at-risk organizations are protected until the final revocation list is published.

The Pension Protection Act of 2006 made two important changes affecting tax-exempt organizations, effective the beginning of 2007. First, it mandated that all tax-exempt organizations, other than churches and church-related organizations, must file an annual return with the IRS. The Form 990-N was created for small tax-exempt organizations that had not previously had a filing requirement. Second, the law also required that any tax-exempt organization that fails to file for three consecutive years automatically loses its federal tax-exempt status. The IRS conducted an extensive outreach effort about this new legal requirement but, even so, many organizations have not filed returns on time.

If an organization loses its exemption, it will have to reapply with the IRS to regain its tax-exempt status. Any income received between the revocation date and renewed exemption may be taxable.