New tax law changes have recently been made and this information pertains to many of you. This briefly summarizes several of those changes most likely to affect you or your business; however, further information can be provided by the Carbis Walker Team. If you have questions about these changes and how they may apply to you or your business, please do not hesitate to contact us.

By June 30, 2011, every U.S. person who has a financial interest in a foreign financial account must file Form TD F 90-22.1 (Report of Foreign Bank and Financial Accounts, or FBAR) if the value of the account totaled more than $10,000 at any time during the calendar year 2010. New regulations issued earlier this year defined who is required to file, with the most significant changes affecting individuals who have signature authority over accounts owned by their employers; however, the IRS has since granted an additional extension for individuals with signatory authority over a foreign financial account to June 30, 2012. While there are some exemptions to this new ruling, a Carbis Walker Team Member can help determine if this filing change applies to you. (Please note: Failure to file an FBAR when required to do so may result in penalties and unlike the rule for tax forms, the Form must be received by the Treasury on or before its due date.)

In April, President Obama signed into law the 2011 Taxpayer Protection Act which repeals recently enacted requirements for expanded information reporting introduced in last year's healthcare legislation, as well as 1099 reporting requirements imposed on taxpayers who receive rental income as previously mandated by the 2010 Small Business Jobs Act.

To refresh, last year's healthcare legislation presented a new obligation that required all businesses to report to the IRS on Form 1099-MISC, each vendor to which it paid a total of $600 or more for products or services throughout the filing period. Similarly, the 2010 Small Business Jobs Act created the requirement for rental property owners to report on Form 1099-MISC payments totaling $600 or more for the year that were made to any one service provider (person or entity, other than a corporation). Due to the new 2011 Taxpayer Protection Act, these provisions have been repealed as if they had never been enacted.

This is a brief overview…for additional information and questions, please contact your Carbis Walker Client Service Coordinator, or a Team Member at 800.452.3003.