President Obama signed the Hiring Incentives to Restore Employment (HIRE) Act on March 18. Among other provisions, the HIRE Act provides new tax breaks for hiring and retaining unemployed workers and extends the enhanced Section 179 deduction for another year. Without the extension, the maximum Section 179 deduction would drop from $250,000 for 2009 to $134,000 this year.
These tax benefits are partially offset by new foreign account tax compliance rules.
Note: The HIRE Act doesn’t include any tax extenders, alternative minimum tax (AMT) relief or a resolution to the estate tax uncertainty.
Thousands of employers have been snared in the IRS's all-out initiative to increase employment-tax audits—its first such initiative in 25 years. A main target: the tax treatment and reporting of employee fringe benefits....Click here to find out more.