We help companies all over Georgia identify and obtain tax credits. Tax credits maximized. Risk minimized.

Archive for September, 2010

New Tax Credit Laws Start NOW

Filed under: Job Tax Credit,Retraining Tax Credit
September 30, 2010

There has been a lot of confusion about the changes made in the 2009 tax credit laws.  One big item that many of you have asked about involves the “look back” changes affecting when you can amend prior year returns for Retraining (RTC) and Job (JTC) tax credits.  The period was reduced from 3 years to one year.

The key driver is the activity and the tax year when it occurred.

The activity could be:

  • RTC = train employees
  • JTC = headcount increase that meets the threshold for the location

The tax year in which the activity occurred will determine how long the tax return can be amended for RTC and JTC purposes:

  • 2009 = can only amend up to one year after the return was due or extended
  • 2008 or prior years = can amend if the tax return is open (within 3 years)

When things slow down after tax season and year-end tax planning begins, make sure you talk with your clients about 2009 RTC and JTC activities — before the tax credit $$ are gone!

DaleSig

What is Immaterial About Tax Credits??

Filed under: Investment Tax Credit,Job Tax Credit,Port Tax Credit,Retraining Tax Credit,Withholding Tax Credit
September 30, 2010

As you review tax saving opportunities for your clients, you may not have much time to explore activities that qualify for state tax credits.  On the surface, tax credits may appear to be too small $ and not worth your or your clients’ time and resources. In addition, the cost to amend the corporate and the equity owners’ personal tax returns may cause hesitation.

Sound familiar? Clients have told us that their CPAs throw out buzz words like “immaterial” and “onerous duty” as vague reasons not to pursue the tax credits.

It is funny how a recession can redefine words. When things were great a few years ago, the tax credits had to be BIG $ to be worth pursuing. Well, this recession seems to have significantly lowered the $ threshold and changed the meanings of “immaterial and “onerous duty”!!

Suggestion:  Re-evaluate your clients’ situation and do a quick net-after-tax benefit analysis (after all other fees including fees for amending tax returns). If the hard $ benefit to each owner is a few $ thousand, it may be worth it. During these tough times, an “immaterial” event like a tax credit may keep your client happy!

JimSig