Worker Misclassification Enforcement in MD
August 3, 2009 | 
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Martin O’Malley issued an executive order July 14 establishing a new task force in an effort to crack down on employers who violate tax and other laws by misclassifying employees as independent contractors.
“This executive order, combined with passage this year of the Workplace Fraud Act, should send the clear message that Maryland will not tolerate employers who try to cheat the system, and that we are committed to arming ourselves with the tools necessary to eradicate this pervasive practice,” O’Malley said in a statement.
Maryland Labor Secretary Thomas E. Perez said, “Our goals are threefold: to recoup state revenues, to ensure workers are treated fairly, and to level the playing field for employers who play by the rules.”
Tax Breaks Expiring in 2009
July 10, 2009 | Subscribe to our RSS Feed
With all the provisions, expirations and extensions in the tax code, it is difficult to keep track. Here is a snapshot of some of the provisions set to expire this year:
The Proposed Cell Phone Tax
June 15, 2009 | Subscribe to our RSS Feed
The IRS has recently proposed taxing employees up to 25% of the value of their work cell phone.
A 1989 law treats employer-provided cell phones as a taxable fringe benefit, so this new proposal is to make it easier to enforce this law. However, several issues arise, making it seem more of a burden to employers and employees, rather than a clarification or simplification.
Attn: Small Businesses – You Are Eligible for Faster Write-Offs
May 27, 2009 | Subscribe to our RSS Feed
Faster Write-Offs for Certain Capital Expenditures
Many small businesses that invest in new property and equipment will be able to write off most or all of these purchases on their 2009 returns. The new law extends through 2009 the special 50 percent depreciation allowance, also known as bonus depreciation.
Normally, businesses recover these capital investments through annual depreciation deductions spread over several years. Both of these provisions encourage these investments by enabling businesses to write them off more quickly.
Important Note for Start-Ups
May 26, 2009 | Subscribe to our RSS Feed
The tax court recently handed down an unfavorable decision to a taxpayer claiming deductible expenses for his start-up business (real estate investing).