The Small Business Jobs Act of 2010 was signed by President Obama on Monday, September 27, 2010. It includes opportunities that businesses of all sizes can benefit from. Loans programs are expanded through the Small Business Association (SBA) and a variety of small business tax breaks. The AICPA has launched a web-site for small business tax resource news which you can access at http://www.aicpa.org/Research/Small-Business-Relief/Pages/SmallBusinessTaxResource.aspx.

IRS has issued proposed regulations to eliminate paper coupons for deposits of employment taxes, corporate income and estimated taxes. The paper coupon payment system will be shut down at the end of the year. Taxpayers will be required to use the IRS' Electronic Federal System (EFTPS) to make federal tax deposits of various taxes. 97.5% of all federal tax deposits are already made electronically. Enrolling for EFTPS and paying taxes by phone or online is easy. You can register at www.eftps.gov.

In addition to the tax rate changes and expiring energy credits, several other tax benefits are set to expire December 31, 2010 and cannot be counted on when planning for 2011 tax liabilities. These include the deduction for mortgage insurance premiums and the Making Work Pay credit. This refundable tax credit of up to $400 ($800 for married taxpayers filing a joint return), is allowed in 2009 and 2010 for individuals who are not non-resident aliens or dependents of another taxpayer. The credit is reduced when adjusted gross income exceeds $75,000 ($150,000 for married taxpayers filing a joint return). Economic recovery payments received during the year from the Veteran's Administration, Railroad Retirement Board or Social Security Administration reduce the amount of the available credit. On the other hand, the phase out of itemized deductions and personal exemptions expire after 2009 so some taxpayers may get more deductions.

Changes in individual federal capital tax rates for 2011 may be a motivator to complete sales and accelerate income into 2010 instead of deferring until 2011.The current maximum tax rates on capital gains and qualified dividends of 15%, 5% and 0% will expire at the end of 2010 increasing your tax burden on the sale of capital assets. The gains will be taxed at 10% for those with taxable income under $35,020 for single taxpayers and $70,040 for married taxpayers filing joint returns. Those earning more will pay 20% on capital gains. Ordinary tax rates are also set to increase from 35%, 33%, 28%, 25%, 15% and 10% back to 2000 rates of 39.6%, 36%, 31%, 28% and 15% on January 1, 2011.

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