So You Say Your Accounts Receivable Are Up?

December 3, 2009

           Then you won’t be shedding any tears for the great state of California–we hear the (formerly) “Golden State” has customers who owe Ahnold, as of last August, a paltry $1.6 billion more than the year before! 

            Seems individual income tax accounts due to California were up about $1 of the billion, with business entities making up the difference.

            We can hardly wait for the state’s decision on how to handle this fiscal fiasco. Anybody think the taxes might go up?
            On the other hand, FTB recently announced it will not assess the mandatory “e-pay” penalty on folks in 2010 who aren’t following the new rules. FTB says it will continue to “reach out,” and educate all of you blokes out there who are otherwise required to make periodic electronic estimated payments of $20,000 or more, or who will have tax liabilities of more than $80,000 in any tax year beginning on or after January 1, 2009.
            How cuddly.
            And our Moron of the Year award has to be bestowed on Senator Carl Levin, ChairBloke of the Senate Armed Services Committee, who wants “higher income” Americans to pay yet more tax if it is determined that more American troops have to go to Afghanistan.
            An “additional income tax to the upper brackets, folks earning more than $200,000 or $250,000” could fund more troops, quoth Michigan Democrat Levin recently.
            “They have done incredibly well, and I think that it’s important that we (sic) pay for it if we (sic) possibly can.”
            So, who’s “we,” we wonder? Levin?
            And recently released IRS forms relative to the Federal estate tax are not counting any chickens before hatching–the instructions don’t mention that the estate tax is slated to be repealed for folks dying in 2010. But who knows? While Barack/Harry/Nancy are in control, anything can happen, including some change which would reinstate the estate tax before New Years Eve hits at the end of the decade. But the Research Institute of America opines that Congress must “undo” the repeal before the end of 2009 in order to avoid constitutional challenges that could ensue if estate tax repeal were eliminated after it took effect!
            Those of you holding health care powers of attorney had better pay attention–this potential ethical conundrum has long been anticipated. And the future is now.
CONSULT YOUR TAX ADVISOR – This article contains general information about various tax matters. You should consult your CPA regarding the implications to your own particular situation.
            Jeff Quinn, the author of this article, is a shareholder in Ashley Quinn, CPAs and Consultants, Ltd., with offices in Incline Village and Reno. He can be reached at 831-7288 and welcomes comments below.

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