NEW - Mortgage Interest - Interest on a house that was never built is deductible, but only the first 24 months after construction begins.

NEW - E-File Regulations for Tax Preparers - Any person that prepares 10 or more tax returns must file them electronically. 

NEW - Earned Income Credit (EIC) - If you claim EIC you must complete and have form 8867 or a similar checklist to show you qualify for the credit. 

NEW - Estates - Form 8939 needs to be filed by January 17, 2012.

Medical Expenses - If you are paying for a caregiver for a dementia patient or someone that is not able to do at least two of the following six daily living activitiies (eating, toiliting, transfering, bathing, dressing, and continence), these payments qualify as a medical expense.

Payroll Tax Deposits - If you have had trouble making your payroll tax deposits because of financial trouble, you may qualify for abatements of the late deposit penalties.

Partnerships, Estates, Trusts - These tax returns are only granted a five-month extension. 

Per Diem Rates - The IRS has eliminated the high-low method for business travel costs.  Now you must use the federal per diem rates published by the Service every year. 

Non-Profit Organizations - If you credit fundraising amounts against Dues, you may loose your exempt status.

Casualty Loss – If you live in an area that is prone to natural disasters, such as flooding, tornado, etc.   You may want to consider taking pictures or video of your home before a potential disaster strikes.  This will help after in assessing the damage.  If you have been affected by disaster, a list of recognized areas is constantly being updated by the IRS.  To find out if you are located in a disaster area, click here: http://www.irs.gov/newsroom/article/0,,id=98936,00.html

Exempt Organizations – As of June 8, 2011, if you are an exempt organization and have not filed a tax return for the past three years, your tax exempt status has been revoked.  If you are unsure if your status has been revoked the IRS has published a list of all organizations that have lost their tax exempt status and can be found here (http://www.irs.gov/charities/article/0,,id=240099,00.html).  If your organization has lost its tax exempt status, it can be reinstated by submitting an application and fee.   

To read the full article, click here: http://www.irs.gov/newsroom/article/0,,id=240239,00.html?portlet=7

Donations – If you donate $250 or more to an organization, you must have written acknowledgement from the charitable organization to deduct the donation. 

For more information about charitable donations, visit: http://www.irs.gov/taxtopics/tc506.html

Return Preparer Registration – The IRS has implemented new regulations for tax return preparers.  All paid preparers must apply for a PTIN.  These regulations require all tax preparers to pass a competency test, and tax compliance and suitability checks.  They will also be required to complete and have continuing education 15 hours of Continuing Education.  The tests and continuing education will begin mid to late 2011.   

Health Care - With the new health care law, employers who provide health coverage to its employees will be required to include on the W-2 the amount the employee paid in health insurance.  In 2011 it is optional for all employers to report this.  In 2012 it will be optional for small businesses (if you issue 250 W-2’s or less). 

1099 Regulations – Currently there are regulations requiring business to send 1099’s for certain business payments and rental property expenses.  This bill is expected to be repealed.  The repeal  has been passed by the Senate and House, and when it reaches the President, he is expected to sign it.

For more information, click here: http://centralkycpa.com/content/pdf/tax_brief/US_repeal1099reporting.pdf