SKR+Co Alert: Credit for Hiring Veterans, Foreign Financial Asset Reporting, & More!
November 28, 2011
The VOW to Hire Heroes Act
On November 16, Congress passed the VOW to Hire Heroes Act. A key provision of the act extends the Work Opportunity Credit through 2012 for companies that hire qualified veterans. (The credit is still scheduled to expire at the end of 2011 for other targeted groups.) The act expands the credit by:
Doubling the maximum credit – to $9,600 – for disabled veterans who've been unemployed for six months or more in the preceding year,
Adding a credit of up to $5,600 for hiring nondisabled veterans who've been unemployed for six months or more in the preceding year, and
Adding a credit of up to $2,400 for hiring nondisabled veterans who've been unemployed for four weeks or more, but less than six months in the preceding year.
To be eligible for the credit, you must take certain actions before and shortly after you hire a qualified veteran. Your tax advisor can help you determine exactly what you need to do.
Reporting Foreign Financial Assets
The IRS recently released draft instructions for Form 8938, which is the informational filing required by taxpayers with specified foreign financial assets. The instructions are newsworthy in that they come 18 months after the Foreign Account Tax Compliance Act (FATCA) was implemented, and two different draft Forms 8938 were released without instructions.
Taxpayers should note that the reporting requirement is much broader than the Report of Foreign Bank and Financial Accounts (FBAR), so it is possible that individuals who do not have an FBAR filing obligation may be subject to the FATCA reporting requirement. For example, the FATCA reporting requires taxpayers with investments in foreign entities, such as foreign hedge funds and private equity funds to report the existence of these investments.
The penalty for failure to disclose is $10,000. If the failure continues for more than 90 days following the mailing of notification, the penalty could go up to a maximum of $50,000.
We recommend you consult with your tax advisor if there is a possibility that you are subject to this reporting obligation.
Tax Seminar –
Last chance to register!
"Understanding Your Individual Tax Return"
DATE: Tues., Dec. 6th
TIME: 3:00-4:30 p.m.
LOCATION: The Fine Arts Center (or SKR, depending on number of registrations)
Judy Kaltenbacher, CPA, Managing Tax Partner
Doreen Merz, CPA, Tax Manager
Jordan Empey, CPA, Supervising Tax Senior
For additional information and to Register, Click Here
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If you have any questions or comments, please feel free to contact us at (719) 630-1186 or through our Secure Email.