The IRS recently released Notice 2010-69 which says, in part:“Provides that reporting the cost of coverage under an employer-sponsored group health plan on Form W-2, Wage and Tax Statement, pursuant to § 6051(a)(14) of the Code, will not be mandatory for Forms W-2 issued for 2011.”What does this mean?

The IRS is in the process of auditing 2,000 firms, and will be auditing an additional 6,000 firms in the upcoming years. While similar to traditional audits, these Employment audits will focus more on employment tax and compliance issues. An IRS spokesperson said, “A National Research Project (NRP) is the first the agency has undertaken in 25 years. During that time business practices have changed significantly, prompting the need for this study”.

You are working hard, very hard. In fact, you have never worked so hard in your life. Your employees are also working hard. Therefore, your business must be doing, amazingly well. Right? BUT...your bank account is nearly empty, your desk drawer is full of checks that you can't mail, and your line of credit is maxed. So, what is wrong - where is all the cash going? Often, the mystery may be explained by analyzing your financial statements.

If you’re a business owner, you are probably familiar with Section 179 and its benefits. Section 179 allows business owners to fully deduct certain equipment purchases in the year they were purchased rather than depreciating the expense over several years. To qualify, property must be used more than 50% in a trade or business and be acquired from an unrelated party.

Do you have aging parents that live in an appreciated home, but no longer reap any tax benefits from ownership? For example, their home is paid off and there is no mortgage interest deduction for them to deduct. By buying your parents’ home, and then rent it back to them at the going market rate, they would gain instant access to their home equity (without moving) and you’d pick up some generous tax deductions.

If you drive to college classes, your commuting expenses are an often overlooked deduction. For 2010, you can use the standard mileage rate of 50 cents per mile plus tolls and parking fees for education-related travel.