April 15th is rapidly approaching - ALL of the following are due by the 15th:

2009 Personal Tax Returns - If your taxes have not been filed by the end of next week, & you are a client of ours, we will assume that you need an extension (which will give you 6 additional months to file your return). Extensions do not give you more time to pay taxes.  If you think you will owe money for your 2009 taxes, you must send money with your extension in order to avoid penalties and interest charges.  Contact our office ASAP if you foresee owing money for the 2009 tax year.  Otherwise, you will receive a copy of your extension in the mail and we will file the originals on the 15th.

2009 Partnership Tax Returns - Form 1065 must be filed.  We will file an extension for your business if you are a client of ours and the return is not complete by the 15th.  A partnership extension will give you 5 additional months to prepare the tax return.

2009 Trust & Estate Tax Returns - Form 1041 must be filed by the 15th.  If not, the same partnership extension rules apply to trusts & estates.

2009 IRA Contributions - If you want to make a contribution that will apply to your 2009 taxes, make sure it's done by April 15th.  

1st Individual Estimated Payment - Individuals making quarterly payments for 2010 individual taxes must have their first payment in by the 15th.  We will provide clients with 2010 estimated-payment vouchers when you pick up your 2009 personal tax return.

The HIRE Act - Business Tax Credits

On March 18, 2010 the Hiring Incentives to Restore Employment Act (HIRE Act) was signed into law to encourage companies to hire (and retain) unemployed workers in this tough economy.  The new law provides temporary tax breaks for businesses who hire workers that have been unemployed for over 60 days.  It also extends the higher-expensing limit for business-equipment purchases another year.

Hiring Incentives:  The HIRE Act is offering a total of $13 billion in tax incentives to private businesses that hire unemployed workers. For every qualified worker hired between February 2, 2010 - January 1, 2011, businesses will receive an exemption from social security payroll taxes.  They will also received an $1,000 tax credit (or 6.2% of the wages paid if lesser) if the new hire is kept on payroll for at least 52 weeks.

Increased Expensing Limits: The 2009 maximum amount that could be expensed for the purchase of business equipment was $250,000 (with a dollar-for-dollar reduction once total equipment purchases for the year exceeded $800,000).  For 2010, the expensing limit fell to $134,000 (with phase-out set at $530,000).  The HIRE Act retroactively reinstated the higher 2009 expensing limit for 2010.  This is a one-year-only extension and does not include an extension of bonus depreciation which was allowed last year.

While signing the bill, President Obama said that many small businesses are hesitant about hiring new employees and that "this job bill should help make their decision that much easier."  If you are currently considering hiring new employees, we suggest that you not only consider the new tax incentives available to your business but also your ability to help lower the unemployment rate.  Do not hesitate to contact us if we can be of any assistance in helping you with decisions.

Need A Business Loan? Be Prepared.

Despite the recent bank bailouts, credit is still tight for many small business owners.  If you are looking to obtain  a bank loan, the following can help improve your chances. 

First, make sure you have at-hand all of the proper documentation.  Typically lenders require you to provide the following:

1. Business Plan.  Create a blueprint for business operation for at least one year.  Demonstrate through your plan how your expect to use the loan proceeds.
2. Cash Flow Projections.  The lender will expect a detailed analysis of what you expect to earn and the manner in which it will be spent.
3. Prior Tax Returns.  For an on-going business, provide copies of previous years' tax returns for a minimum of three years.  Owners of start-ups may substitute individual returns.
4. Financial Status Data.The lender will likely ask you to list your personal assets (i.e. home, cars, ect.) and outstanding debts.
5. Credit Rating Report.  A good credit history enhances your viability as a borrower.  Always keep an eye on your report to ensure its accuracy (you can obtain one from one of the major reporting agencies - Equifax, Experian, or TransUnion).  The bank will be able to obtain one on your behalf.

Second, you need to convince the lender that you deserve the loan.  Be prepared to give answers to some basic questions, such as:

• How much money do you need?
• How much do you intend to finance personally?
• How do you intend to repay the loan?
• What type of collateral do you have to secure the loan?
• What type of expertise do your have in your business?
• How will your proceed if you do not receive the loan?

Project an air of confidence.  The lender will want you to show the leadership qualities that can sustain a business through both good times and bad.  The interview is as much about you as it is about business. 

Our economy is dependent on small business success.  If we can be of any help in assisting you with preparing a loan request, please contact us.

This newsletter provides business, financial, and tax information to clients and friends of our firm. This general information should not be acted upon without first determining its application to your specific situation. For further details on any article, please contact us.