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15
Connecticut CPA
g
January/February 2013
paid advertisement
JET Employer Credits
TheJobExpansionTaxCredit(JET)is
available for each new, qualifying em-
ployee ($500 per month) or veteran
($900permonth)hiredonorafterJanu-
ary1,2012andpriortoJanuary1,2014.
Theemployercreditmaybeappliedto
(1) insurance company, hospital, and
medicalservicestaxes,(2)corporation
business tax, (3) utility company tax,
and(4)personalincometax.
Business E-File
Electronicfilingmaybeavailableforthe
ConnecticutCompositeIncomeTaxre-
turnandCorporationBusinessTaxre-
turn­buttaxpayersshouldfirstcheck
onavailabilitywithsoftwareproviders.
File Early to Help Prevent Fraud
Federalandstatetaxpayersandtheir
taxpreparersareurgedtofileasearly
aspossibleinordertoreducetherisk
oftaxfraudduetoidentitytheft.Fed-
erally, at least, an increasing number
oftaxpayerswhofilelaterhavebeen
left with the onerous burden of chas-
ingafterrefundsalreadyprocessedto
fraudulentfilerswhobeatthemtoit.
Guidance for Tax Penalty Wavers
We hope that new regulations pro-
posed by the DRS will be in place in
2013 to provide better guidance for
tax penalty waivers. We appreciate
thehelpofpractitionersindeveloping
theseregulations.
Like the moon rising on a new fall-
en snow, the fiscal trifecta of a new
biennialstatebudget,newstatelegisla-
tivesession,andpost-electionpolitics
inWashingtonarealsoonthehorizon.
It remains to be seen whether a very
slowlyrecoveringstateeconomyand
modest state budget deficit may yet
be balanced by higher income indi-
vidualswhomaytax-planforthefinal
quarter of the 2012 tax year based
on the problematic status of federal
taxesfor2013.Inanyevent,finding
the fiscal balance for the new state
biennialbudgetwillremainchalleng-
ing ­ although Malloy has already
indicatedhedoesnotexpecttopro-
posenewtaxes.
For the federal budget, the test re-
mainswhetherthepresidentandCon-
gresscanfindcommongroundonthe
kind of balanced approach recently
recommendedbyanationalcoalition
of business leaders that includes re-
duced spending and increased rev-
enue.Neithermycrystalballnormy
oldMagic8Ballareuptopredicting
whatwillhappeninWashington.
The 2013 legislative session will also
be the first opportunity to consider
action on the phased recommenda-
tions of the governor's Business Tax
TaskForce.Whatevercanorcannot
be accomplished legislatively now,
Malloy has already given the green
lightforanumberofimportantagen-
cyinitiatives.AttheDRS,theseinitia-
tivesinclude:
·Expandingelectronicfilingandadd-
ingEZfilingforlowertaxableincome
businesses.
·Establishingexternaladvisorygroups
onsimplifiedbusinesstaxaccounting,
expedited tax rulings, broader tax
advisories,andexternalreviewofma-
jorformsandpublications.
·Increasingcapacityfortaxmodeling
and policy analysis as well as estab-
lishingastatehighereducation-based
partnership for applied tax and eco-
nomicresearch.
·Workingwithotherstateagenciesto
launch a one-stop, online, effectively
linked"businessportal."
Season's greetings and here's to a
happynewyear.
Formoreinformation,goto:
www.ctcpas.org/StateTaxAlert.
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