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Tag: tax laws

  • Tax Returns: Jan. 30 is When Processing Begins

    The U.S. Internal Revenue Service (IRS) announced this week that the 2013 tax filing season won’t open until January 30. The IRS will not begin processing individual income tax returns until then.

    The IRS had originally planned to open electronic tax filing on January 22. The delay is due to changes in tax law passed by congress on New Year’s Day. The American Taxpayer Relief Act (ATRA) was the compromise bill that was the result of the “fiscal cliff” standoff between the president and house Republicans.

    The IRS is now updating forms and “completing programming and testing of its processing systems.” The updates should, the IRS states, allow the “vast majority” of Americans to file their tax returns beginning January 30. For those few who need more obscure forms for things such as residential energy credit claims, depreciation of property, or general business credits, further form updating and processing systems changes should allow them to file in late February or early March.

    “We have worked hard to open tax season as soon as possible,” said Steven T. Miller, acting commissioner of the IRS. “This date ensures we have the time we need to update and test our processing systems.”

    The IRS stated that not even paper tax returns will be processed before January 30, and that taxpayers receive their refunds more quickly when filing electronically anyway. Over 80% of taxpayers in the U.S. filed electronically in 2012.

    “The best option for taxpayers is to file electronically,” said Miller.

  • Amazon Collecting Sales Tax in New Jersey

    Amazon Collecting Sales Tax in New Jersey

    Amazon, who is planning to install two new distribution centers in New Jersey, which would create 1,500 new jobs, is now going to be charging sales tax in that state in July, 2013. Amazon has had issues with taxes in various locales, where ‘Amazon Laws” have been revoked in states like Hawaii and Colorado, and upheld in California.

    Now New Jersey will begin charging 7% on all Amazon orders, regardless of whether or not the distribution centers are actually built. NJ governor Gov. Chris Christie states, “We will now in the state of New Jersey begin collecting sales tax at least from a fraction of the market we otherwise would not have gotten.” Out of state retailers presently don’t collect tax from New Jersey customers, and consumers are expected to pay when they file their tax returns, though not many do.

    Amazon had been lobbying for a 2-year tax break on the state which was delayed in the senate, essentially in return for the facilities. Now taxation is moving along regardless of what Amazon plans to do – New Jersey Assembly member Al Coutinho (D-Essex), commenting on allowing Amazon their tax holiday, stated, “We need jobs, economic growth and a level playing field, and we get all three with this agreement.” Still, Christie points out that the new taxes will create thousands of jobs in the state, and bring in roughly $40 million. Paul Misener, Amazon’s vice president for global public policy, states, “Certainly we’re going to have to work out the economic development arrangements.”