Penalty provisions in fine print E-file saves taxpayers millions The Worker, Homeownership and Business Assistance Act of 2009, as signed into law by President Obama on November 6, among several important provisions, had a penalty provision inserted within the fine print of the law. I think there is a lot of fine print in some of these laws being passed by Congress. This particular penalty provision concerns the filing of partnership and Sub S Corporation tax returns. Our tax system is set up so that both partnerships and Sub S Corporations are reporting entities, technically called pass-through entities. This means usually that neither one has to pay any tax. The tax returns are used to report the income and expenses of the partnership or Sub S. These items are passed through to the partners of the partnership or the shareholders of the Sub S via a Form K-1. These partners and shareholders then report the income and expenses of the reporting entity on their personal tax returns and are responsible for any tax due to that income. This presents a small problem to the Internal Revenue Service when it comes to penalizing a partnership or a Sub S for not filing a tax return on time. For the most part, penalties are based on the amount of tax due. No tax due = no penalties. Congress has ridden to the rescue, in this instance, and instituted flat-dollar-amount penalties based on the late filing of tax returns. For partnerships and Sub S Corporations, the Worker, Homeownership and Business Assistance Act of 2009 has increased these late-filing penalties to $195 per partner or shareholder per month the return is filed late. Not too many years ago, the penalty was $50. For instance, for a partnership that has five partners and is late filing its return by two months, the penalty will be $195 times 5 partners, or $975 per month, times 2 months equals $1,950. That’s a lot of penalty! At those rates, no one is going to knowingly file a partnership or Sub S return late. Another provision in the law affects tax preparers and indirectly taxpayers. Starting in the year 2011, any tax preparer filing more than 10 tax returns must file those returns electronically. Previously, […]
Heart of Rockford businesses kick off holidays Healthcare product drive to benefit North Kent Service Center clients Grand Rapids ranks as one of the nation’s more philanthropic communities, and Rockford is certainly well-known for its support of charity events, food drives, faith-based initiatives, and support of nonprofits near and far. This rings especially true at the holidays, when families and businesses dig deep to buy toys, fill food baskets, and “adopt” members of the community who need extra help. The Heart of Rockford Business Association is one such group that supports numerous charity events throughout the year, including Rockford’s Relay for Life/American Cancer Society, Think Pink/Susan G. Komen for the Cure, Community Unity, and silent auctions and walkathons for multiple causes. This holiday season, the group decided on a somewhat alternative way to lend their hand. Heart Steering Committee member and Baskets in the Belfry owner, Polly VonEschen, explained, “Families relying on federal assistance cannot use WIC dollars to purchase basic healthcare items like shampoo, soup and deodorant, and food pantries and community service centers typically don’t receive these types of donations. As a result, many of our Heart businesses have set up collection bins in their stores and are offering some sort of gift or reward to customers who donate for their generosity. All of our donations will be sent to the North Kent Service Center to help residents in our community.” Acceptable products include toothpaste, toothbrushes, razors, shaving cream, shampoo, conditioner, lotion, bath gel, soap, and any additional items for cleanliness. Gifts will be accepted through the holiday season. For further details, contact one of these Heart of Rockford Business Association members: A Charmed Life Nail Salon, Aunt Candy’s Toy Co., Baskets in the Belfry, Bow-Dacious Designs, The Candle Shop, The Corner Bar, Creative Concepts Plus, Custard by the Dam, Dam Dogs, Frame & Mat Shop, G. Williker’s, Great Northern Trading Co., Gremel Communications Inc., Imperial Computer Solutions, Independent Bank, J.T. Stitchery & Frame Shop, Jade, Kimberly’s Boutique, Paperdoll, Pegasus Sports, Poindexter’s Specialty Marketplace, Reading Books, Reds on the River, Right at Home, Right Up Your Alley, Rockford Flower Shop, Rockford Independent, The Rockford Squire, Rogue River Tavern, Rudy Kazoody’s, Sage & Roses, WAR Chest Boutique, Ward’s Hair Place, and Xscape Salon.
A CAST FROM AN EARLIER SECOND CITY TIME—do you recognize anyone? Photo courtesy of DK/NY by CLIFF AND NANCY HILL Rockford Education Foundation (REF) Administrator Sue Arend and the gang at REF have gone outside the box and done themselves one better. In annually producing a mid-winter fundraising show, which featured mostly musical acts, this season REF has instead decided to bring a touring ensemble cast of Second City to Rockford. On Saturday, Jan. 23, Second City will star at the REF’s 14th Annual Benefit Performance. The iconic Second City bills itself as “a comedy powerhouse” and in celebration of 50 years of being recognized as America’s greatest comedy theater, they have taken their act on the road. Second City had its beginnings in 1959 in a small cabaret theater on the corner of North Avenue and Well Street on Chicago’s north side. It has since grown to become a comedy empire with resident theaters and training facilities in Chicago, Los Angeles and Toronto, currently enrolling over 3,000 students. Over the years, the cream of the crop have gone on to stardom on television and the big screen. Honing their comedic craft in Second City methodologies, recognizable superstars such as Alan Arkin, Joan Rivers, Gildna Radner, John Belushi, Dan Aykroyd, Bill Murray, Martin Short, John Candy, Bonnie Hunt, and more recently Julia Louis-Dreyfus, Mike Myers, Steve Carell, Stephen Colbert, Tina Fey and many, many more have become household names. Over the years, the popular late-night NBC program “Saturday Night Live” could not have survived without a steady stream of Second City graduates. “Attendees at the Rockford show will see stars in the making as they perform a comedy review that satirizes politics, culture and news of the day,” said Arend. Speaking for himself, the male half of the reporting team recalls attending Second City performances in Chicago during the ‘60s that were “side-splitting and hilarious comedy.” Remember the performance will be held in late January, and who isn’t looking for an evening of laughter to escape, if just for a couple of hours, from another bleak Michigan winter?! Christmas is coming and if you are looking for a gift for someone who has everything or who is hard to please, why not surprise them—or indulge […]
On Tuesday, Oct. 20, stylists from Hair Taylors (Northland Drive at 15 Mile Rd.) came to the North Kent Service Center and provided clients with free haircuts. Stylists Dawn, Scott and Susan provided their services to approximately 25 clients, who were all thrilled. One gentleman said he hadn’t had a haircut in about six months. Another client had her camera ready when her two-year-old daughter received her first haircut.