Highlights of Newly Enacted Tax Law for Businesses

5-Year Carryback of 2008 and 2009 Net Operating Losses (NOLs) for Eligible Small Businesses (ESBs)

For 2009, you can choose a 3, 4, or 5-year carryback period for the part of your 2009 NOL that is an ESB loss.


Alcohol and Cellulosic Biofuel Fuels Credit

There are several changes to alcohol and cellulosic biofuel fuels credits.


Biodiesel and Renewable Diesel Fuels Credit

There are several changes to the biodiesel and renewable diesel fuels credit.


Build America Bonds

Find out what a build America bond is and how to claim a credit.


Cancellation of Debt

Certain businesses can make an irrevocable election to delay recognition income from the cancellation of business debt arising from the reacquisition of certain types of business debt repurchased in 2009 or 2010.


Capital Gain Tax Rate Reduction for Corporations With Qualified Timber Gain

Corporations with both a net capital gain and a qualified timber gain may have a reduced tax rate.


Carbon Dioxide Sequestration Credit

There are several changes to the carbon dioxide sequestration credit.


Changes to Investment Credit

There are several changes to the investment credit.


COBRA Premium Assistance Credit

The American Recovery and Reinvestment Act of 2009 (ARRA) allows a credit against employment taxes for providing COBRA premium assistance to assistance eligible individuals.


Credit for Employer Differential Wage Payments

Eligible small business employers may be able to claim a credit for differential wage payments.


Depletion

There is a change to the taxable income limitation on percentage depletion for 2009.


Depreciation and Section 179 Expense

The depreciation limit on certain business vehicles has been reduced.


Disqualified Corporate Interest Expense Disallowed Under Section 163(j) and Related Information

For tax years beginning after 2007, corporations will use Form 8926, Disqualified Corporate Interest Expense Disallowed Under Section 163(j) and Related Information, to figure the amount of any corporate interest expense deduction disallowed by section 163(j).


Domestic Production Activities Deduction

For tax years beginning in 2007, 2008, or 2009, the percentage used to figure the domestic production activities deduction increases to 6%.


Election to Accelerate Certain Credits in Lieu of the Special Depreciation Allowance

Corporations and a certain automotive partnership can elect to accelerate certain credits.


Employer-Owned Life Insurance Contracts

Policyholders owning one or more employer-owned life insurance contracts may have to file a report.


Health Savings Accounts (HSAs)

Information on changes for Health Savings Accounts (HSAs).


Maximum Automobile Value for Using the Cents-Per-Mile Valuation Rule

An employer providing a passenger automobile for personal use by an employee may use special rules for determining the value of the personal use.


Meal Expenses When Subject to "Hours of Service" Limits

Special rules for deducting business-related meal expenses.


New Forms to Adjust Employment Tax Returns

There are several new forms for adjusting employment tax returns.


Nonqualified Deferred Compensation Plans

There are new regulations on reporting requirements for amounts deferred under a nonqualified deferred compensation plan.


Original Issue Discount (OID)Tables

Contains latest version of OID tables. Prior year tables are also available.


Partial Exclusion Increased for Gain From Certain Small Business Stock

Exclusion of gain from the sale of qualifying small business stock is increased.


Penalty for Late Filing of a Partnership Return

The late filing penalty has changed for certain late filed partnership returns.


Penalty for Late Filing of an S Corporation Return

The late filing penalty has increased for certain late filed S-corporation returns.


Qualified Transportation Fringe Benefits

Monthly exclusion amounts have increased.


S Corporation Built-in Gains Tax

There is no tax imposed on the net recognized built-in gain for a certain period.


Self-Employment Tax

The maximum amount of net earnings subject to the social security part of the self-employment tax has increased.


Social Security and Medicare Taxes

The maximum amount of wages subject to the social security tax and Medicare tax has increased.


Standard Mileage Rate

The standard mileage rate for business use of your vehicle, medical and move- related use and charitable use has decreased for 2009.


Vehicle Credits

Information on new alternative motor vehicle credits.


Work Opportunity Credit

A targeted group employee now includes certain unemployed veterans and disconnected youth.

For more information on any of these click on the link below under Tax Information.

Choosing The Right Software For Your Business

It is critically important to choose the right software for your business needs. The software can be a major asset in running your business if it is chosen with a view of the kind of information you need on a regular basis to control costs, profitability and flexibility in adapting to current and future needs.

In looking for the right software supplier, I suggest the following considerations:

1. How long has the software company been in business?
2. Is it a nationally known company?
3. Do they have good product support?
4. Do they have bug reports and regular updates?
5. Do they charge for updates?
6. How long will the product be supported before you have to upgrade?
7. How does the cost of the package compare with competitors packages?
8. Is there on-going third party training available?
9. Do they have good manuals?
10. Are mass market books available?

In looking for the right software package, I suggest the following considerations:

1. Types of Business Entities: Sole Proprietors, Corporations, Non-Profits?
2. Is the system modular or integrated?
3. Accrual system of accounting?
4. Chart of Accounts - sample charts supplied? Can you setup your own?
5. Does it allow for cost centers or profit centers?
6. Does it support Budgeting?
7. Does it support inventory?
8. Does it support Purchase Orders?
9. Does it handle Job Cost?
10. Does it have good built in help?
11. Does it guide you through the setup process?
12. Will it export data to spreadsheets?
13. Will it export data to third party tax preparation software?
14. Does it have P/R included?
15. Does it have a report generator?
16. Will it handle sales taxes?
17. Will it handle finance charges?
18. Does it have built in form capability?
19. Can it use generic off the shelf forms or does the vendor require special forms?

Depending on whether your business is a product oriented or service oriented business will determine what questions need to be asked. An experienced professional adviser is a great asset in the selection process. Accounting personnel as well as management should definitely be involved in the selection process because they are all users and the selection process can benefit from their input.

A product comparison can be prepared in a spreadsheet such as Excel which has the packages listed across the top and the attributes/functions you are looking for listed down the side. Spending time in the process can prevent dissatisfaction on the part of management and accounting personnel.