Networking Event on May 10, 2012

Monthly networking events are held the fourth Thursday of the month at Dierdorf & Hart's in Westport Plaza. Events start at 4:00 pm and last a few hours. This is an excellent opportunity to make connections and discuss business related issues with other business owners in the current economy. Guests are always welcome.

Please RSVP to meb@obcpa.com

Take Advantage of the Show-Me Green Sales Tax Holiday

The Missouri Department of Revenue announced that the second Show-Me Green sales tax holiday will run from April 19-25, 2012. During the holiday, purchases of new energy star-qualified appliances are exempt from the state sales tax. The sales tax exemption only applies to the first $1,500 on each appliance so that if an appliance costs more than $1,500, the regular sales tax rate is in effect for any of the purchase price above $1,500.

Energy star-certified appliances that qualify for the sales tax exemption are clothes washers, refrigerators, freezers, dishwashers, water heaters, furnaces, air conditioners, and heat pumps. Many local governmental entities have also opted to participate in the holiday. Qualified purchases in those areas will be exempt not just from the state sales tax, but also city, county and special district sales taxes

Rachael Haas

(March 2012)

Planning for 2012

New, changed and expired provisions affect 2012 individual estimated tax Apr. 17, 2012 is the due date for affected calendar year taxpayers to make their first installment of 2012 estimated tax. There aren't any changes in the estimated tax rules themselves for 2012. However, there are a number of new, changed and expired provisions that will affect some individuals' estimated tax computations for 2012.

Who needs to pay estimated tax.

Individuals who have income that is not subject to withholding (for example, earnings from self-employment, interest, dividends, rents, alimony, etc.) must pay estimated tax or face a penalty. In addition, taxpayers who do not elect voluntary withholding on certain types of income, such as unemployment compensation and the taxable part of social security payments, also may have to pay estimated tax on those items or face a penalty.

When and how much to pay.

For 2012 estimated tax, in general, a taxpayer must pay 25% of a “required annual payment” by Apr. 17, 2012, June 15, 2012, Sept. 17, 2012 and Jan. 15, 2013 to avoid an underpayment penalty.The required annual payment for most taxpayers is the lower of 90% of the tax shown on the 2012 return or 100% of the tax shown on the 2011 return, even if filed late. However, a taxpayer whose adjusted gross income on his 2011 return is over $150,000 (over $75,000 if married filing separately) must pay the lower of 90% of his 2012 tax or 110% of his 2011 tax.

Other exceptions to penalty.

There's no underpayment penalty if the tax shown on the return (after withholding) is less than $1,000. Estimated tax does not have to be paid for 2012 if the taxpayer was a U.S. citizen or resident alien for all of 2011 and had no tax liability for the full 12-month 2011 tax year.

Rachael Haas

(March 2012)

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