• Attention: The Section 179 Expense deduction for 2009 is $250,000.  Deduction phase-out begins when SEC 179 property exceeds $800,000.  This is a great year to purchase fixed assets due to the increased deduction for 2009.  Reminder: the SUV expense limit is $25,000.

• Extension of Bonus Depreciation: Last year, Congress temporarily allowed businesses to recover the costs of capital expenditures made in 2008 faster than the ordinary depreciation schedule would allow by permitting these businesses to immediately write-off fifty percent of the cost of depreciable property (e.g., equipment, tractors, wind turbines, solar panels, and computers) acquired in 2008 for use in the United States. The bill would extend this temporary benefit for capital expenditures incurred in 2009.

• Federal Minimum Wage:  Effective July 24, 2009 the rate is $7.25 per hour.

• The time allowed for an automatic extension for filing has been reduced from six months to five months for the following returns: Partnership returns Form 1065, Estate & Trust returns Form 1041, and Partnership Withholding Tax Form 8804.

TAXPAYERS CAN NOW PAY ALL FEDERAL TAXES ON THE WEB

(Note: The following information is from the I.R.S.)

Taxpayers can now enroll and pay all Federal taxes through a secure web site, http://www.eftps.gov. Up until now, the Electronic Federal Tax Payment System, (EFTPS), has been a service that businesses and individuals can use to pay all their federal taxes electronically, 24 hours a day, 7 days a week, via the phone or personal computer (PC) software. Now taxpayers can pay via the Internet.

If you are currently making 1040 ES payments quarterly to IRS or expect to in the future, you are a perfect candidate for EFTPS. Set up your quarterly payments for the year and they will automatically be deducted from your account on the day you choose.

EFTPS-OnLine is the same, easy to use system as the telephone and PC software versions of EFTPS, but it also includes new features. EFTPS-OnLine users will not only be able to pay their taxes when they want, but they can also review their tax payment history and print out payment confirmation. By using any of the EFTPS methods to pay taxes, taxpayers benefit from increased accuracy, easier payment and less paperwork.

For enrollment information please visit http://www.eftps.gov, or call 1-800-945-8400 or 1-800-555-4477. Once enrolled it takes 2-4 weeks to validate the information.