SEPTEMBER 2010

September 15, 2010

Federal:

File U.S. Corporate Income Tax Return, Form 1120, and pay entire tax due for corporations having a year-end of June 30.

File U.S. Corporate Income Tax Return, Form 1120, for 2009 for Corporations having a year-end of December 31 if previously granted an extension.

File U.S. Return of Partnership Income, Form 1065, for 2009 if previously granted an extension.

File U.S. Income Tax Return for Estates and Trusts, Form 1041, for calendar year 2009 if previously granted an extension.

Pay estimated tax installments for Corporations with a year-end of September 30, December 31, March 31 or May 30.

 

September 20, 2010

Texas:

File monthly report and make payment of Sales and Use Tax. No filing is required if previously qualified for quarterly or annual filing.

 

September 30, 2010

Federal:

File information return, Form 5500 or 5500-EZ, for employee benefit plans having a year-end of February 28.

 

Small Business Tax Incentives Vote

The Senate is expected to consider an enhancement to the Small Business Jobs Act of 2010 after August recess.  The enhancement referred to as the Senate Substitute 5297 makes additions to HR 5297 passed by the House on June 15th.  The Senate bill includes such items as extending bonus depreciation, doubling section 179, eliminating cell phones as listed property, and shortening the C corporation to S corporation holding period for appreciated assets. Under current law 50% bonus depreciation expired at the end of 2009.  If extended under this bill the additional depreciation will be retroactive to January 1, 2010. Under current law the maximum code section 179 deduction is $250,000 for tax years beginning in 2010.  The Senate bill potentially increases the maximum deduction to $500,000.  Cell phones are currently under the listed property classification. Removing cell phones from listed property classification will lift the strict substantiation requirements and the additional limitation on depreciation deductions.  A C corporation that converts to an S corporation generally must hold appreciated assets for a minimum of 10 years following the conversion.  If the appreciated assets are disposed earlier than 10 years, the corporation must pay tax on the appreciation at the highest C Corp rate.  Under the proposed Senate bill the holding period is shortened to 5 years.

 

 

Reminder -- Due Dates for Extended Partnerships and Fiduciaries

All Extended Forms 1065 and 1041 with a December year-end are now due to the Internal Revenue Service by September 15th.