Can a VAT Tax Solve the Nation’s Fiscal Problems?

Unlike a retail sales tax, which is paid by consumers at the register in a single transaction, a VAT tax is collected bit by bit along the path of production. Consider a bagel. A VAT tax would be applied to each transaction starting with the farmer’s purchase of seed and fertilizer to grow wheat. Assuming a 10 percent VAT, if a farmer bought $500 of seed he would have to pay $50 in tax. When he then sells his wheat to a miller for $3,000, he would collect $300 in tax from the miller, take a $50 tax credit for the tax he already paid, and send $250 to Uncle Sam. If the miller then sells $7,000 in flour to a bagel maker, he will collect $7,700 ($700 in VAT), deduct the $300 he already paid in taxes, and submit $400 to the government.

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New hires complete new Form W-11 to qualify employers for HIRE Act tax breaks

IRS has released Form W-11, Hiring Incentives to Restore Employment (HIRE) Act Employee Affidavit. Newly hired, but formerly unemployed, workers must sign this form (or its equivalent) in order for their new employers to qualify for a payroll tax holiday and possibly an up-to-$1,000 credit under the HIRE Act ( P.L. 111-147 ). DDIFO Members read more…

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HIRE Act Aims to Encourage Immediate Hiring with Tax Credits

The President recently signed into law the “Hiring Incentives to Restore Employment Act of 2010” (the HIRE Act, P. L. 111-47, 03/18/2010). The centerpiece of this Act is a payroll tax holiday and up-to-$1,000 tax credit for businesses that hire unemployed workers. In addition to these new hiring incentives, the HIRE Act also includes a one-year extension of the enhanced small business expensing option under Code Sec. 179 . Both of these provisions are extremely important to many businesses. DDIFO Members read more…

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State of Massachusetts Institutes a Tax Amnesty Program for a Limited Time

The Massachusetts Commissioner of Revenue has established a 2-month amnesty period starting April 1, 2010 until June 1, 2010 applicable for tax periods ending on or before December 31, 2009 that is limited to sales-use taxes, withholding taxes, and certain business tax liabilities. Submitted by Jim Ventriglia, MST, CPA. DDIFO Members Read More…

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Brewing Up Campaign Cash

Livia Gershon writes in the Worcester Business Journal that in 2004, the state passed a law that kept restaurant staff with managerial responsibilities from being part of any tip pool.

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Indy Joe: What Tax Changes for 2009 Should I be Aware of?

Today’s Question is: What Tax Changes for 2009 Should I be Aware of? Today’s Answer is submitted by: Jim Ventriglia of James P. Ventriglia, CPA, Inc. or Cranston, RI. James P Ventriglia, MST, CPA, is DDIFO’s CPA and has been servicingthe accounting needs of Dunkin’ Donuts franchisees for decades. Contact him at jimv@jpvcpa.com or at 401-942-0008.

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Save BIG and Boost Cash Flow with Cost Segregation

With tax season upon us, Dunkin’ Donuts franchise owners might be interested to know about noteworthy tax-saving strategies. Enter: cost segregation which, depending largely on the scope of a franchisee’s holdings and investments, can yield upwards of $1 million in additional tax deductions. DDIFO Members Only Restricted Content.

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Mass Roundup: Budget off $3 Billion

Nancy Reardon of the Patriot Ledger reports that the outlook for next year’s state budget is a bit rosier than state leaders expected, but the chances of a full recovery anytime soon are dim.

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