Legislative Wrap UP by Ron Fuller May 3, 2013

Legislative Information from

Ron Fuller

May 3, 2013

 

At your request I am providing you a brief wrap up of the recently completed 100 day session. The AR House and AR Senate was controlled by Republicans for the first time since Reconstruction. While a good bit was accomplished, there was an air of partnership that has not been present in the past. Due to the staggered nature of state senate terms, the Republicans will in all likelihood remain in control of the state senate. The Republicans will have a battle on their hands to remain in control of the house due to the large number of party members who are affected by term limits.

The governor's race will probably come down to a real battle between former congressman Mike Ross (D) and former congressman Asa Hutchinson (R). I would expect this to be one of the most expensive governor's races in our history.

Senator Mark Pryor has announced and is raising money. AR congressman Tom Cotton is being encouraged by numerous individuals to challenge Senator Pryor.   

Major Legislative  Issues:

The legislature passed and the governor signed legislation allowing Medicaid funds to be used to pay for private insurance for approximately 250 thousand additional Medicaid enrollees. Arkansas has roughly 750 thousand people on the current Medicaid rolls and the passage of this law means that another 250 thousand will be receiving some level of assistance to help them pay for health care. Arkansas population is currently 2.9 million people.  The Federal Government has agreed with this approach in principle but details are still being worked out.

A package of tax cuts was passed totaling roughly $140 million dollars. These tax cuts included brakes for manufactures, farmers and armed service members. It also included cuts in the state's taxes on income and capitol gains.

The sales tax on groceries was also approved if bond obligations or desegregation payments to the three Little Rock-area school districts decline over a six-month period.  

Social issues were front and center at times as legislators overroad a pair of vetoes by Governor Beebe regarding abortion restrictions and legislation requiring voters to show photo identification at the polls. Also passed were extended gun rights in the state. Churches and campuses may now allow concealed handguns to be carried on their premises.

Recent Article by Richard Bell published in Arkansas business

Our very own Richard Bell recently wrote and article about Taxes and Looking Foward.  Please click on link below to read full article.

Taxes and Looking Forward Article

Bell and Company Celebrates 30 Years

Bell and Company recently celebrated 30 years of business and put together a video of our clients and what they had to say about our company please enjoy the following link to the video.

http://sterlingimageworks.com/p871245256/h51e09806#h51e09806

Bell and Company Wins National Public Servcie Award

10.22.12

Bell and Company, PA was selected by the American Institute of Certified Public Accountants as the recepient of the 2011 Public Service award where we traveled to Ameila Island Florida to receive.

Here is the press release from the award.

Amelia Island, Fla. (Oct. 22, 2012) – The American Institute of CPAs is pleased to announce that Johnny K. Hudson, CPA is the 2011 recipient of the Institute’s Public Service Award for Individuals. Bell and Company, North Little Rock, Ark. and the Reznick Group, Bethesda, Md. have received the 2011 Public Service Award for Firms. The annual awards honor members and firms of the AICPA who have made significant contributions to their communities. The recipients received their awards at the fall meeting of the Institute’s governing Council in Amelia Island, Fla.

Kathy G. Eddy, chair of the awards committee presented the awards.

“The many strong candidates for these awards make it difficult to select individuals and firms. So many make significant contributions to their communities,” said Kathy Eddy, chair of the AICPA’s awards committee, “It is our belief that all of compassionate and tireless volunteers should be recognized. But this year’s winners, Johnny K. Hudson, Bell & Company and the Reznick Group clearly stand out.”
Bell and Company’s partners and employees have served in pivotal roles in community organizations throughout North Little Rock, Ark. and Haiti. Following the 2010 earthquake in Haiti, the firm raised much needed funds for school supplies for children residing a remote village. The firm gathered, sorted and packed the supplies into 400 individual containers per child. In the same village, Bell & Company supported a medical clinic by providing Internet service and funding a full-time nurse. The firms sent two employees to the location to personally distribute the school supplies and help set up the clinic.

In Arkansas, Bell& amp; Company supports the Arkansas State Mental Hospital through volunteerism and donations, staff members serve meals for the homeless at the Salvation Army the first Wed. of each month and is actively involved in the Susan G. Komen Race for the Cure and Hearts and Hooves, a therapeutic horse riding and teaching facility for those with disabilities.

Independent Contractors

Richard Bell recently spoke at the TEANA conference in New Orleans here is a link to the White Paper he handed out "The Five Evil Sisters: An Attach on Indpendent Contractors".

Following is what TEANA said about he topic.

"Transportation accountant Richard Bell pointed out threats facing the independent contractor model many TEANA members utilize. Bell contends business owners do a better job of allocating and managing resources than government, as local, state and federal authorities seek revenue during times when tax coffers are thinning. Bell encourages TEANA members aggregate against government controlling independent contractor law and for members to work towards changing state workers compensation laws to make them statutory. Bell advises all members to understand the definition of "employee" in each state they provide services, for workers compensation purposes."

If you would like more information on this topice or would like the exhibits in the white paper listed above please contact deanna.lovelady@bellandcompany.net or call Richard Bell 501.753.9700.

Charitable Donations

Have you noticed the following language at the bottom of a receipt you receive for your donations?

No goods, services, or other tangible benefits were received in exchange for these contributions. The language is magical. In a recent tax court case, Durden v Commissioner, tc memo 2012-40, a case out of Texas, a $25,000, charitable deduction was disallowed on the taxpayers 1040. A computer generated notice in 2009 asked for verification for the 2007 itemized charitable deduction. A letter from the church which was the bulk of the donations was sent to the IRS along with the cancelled checks for verification. The IRS said it was not adequate documentation. A second letter was sent from the church that added the statement if any goods or services were provided in consideration for the contribution. The second letter was rejected by the IRS, The IRS PREVAILED because the letter was not obtained prior to the filing of the return including extensions. ......... Bell and Co will step up its efforts in 2013 to review your charitable contributions if significant, for the proper paper work.

 

If questions, please give us a call at 501.753.9700.

Job Search Expenses

If you’re looking for a new job, you may be able to deduct some of your job hunting expenses on your tax return. 

·        The deduction will be an itemized deduction on schedule A, to be combined with other miscellaneous expenses, deductible to the extent that the total exceeds 2% of your adjusted gross income.

·        To qualify for a deduction, your job search must be in your current occupation.  You cannot deduct expenses when searching for a job in a new occupation, if you’re looking for a job for the first time, or if there was a substantial break between your last job and the time you began looking for a new job.

·        You can deduct amounts spent in preparing and mailing your resume to prospective employers.

·        Travel expenses in looking for a new job may be deductible.  The trip must be primarily for a new job.  The amount of time spent in personal activities versus looking for a new job is important in determining the deductible amount of travel expenses.

·        Any amounts paid to an employment or outplacement agency are deductible.  However, if your employer pays you back for those fees in a later year, you then have to include that amount in income, up to the benefit you received from the deduction. 

If you have questions about this deduction call Kelly Phillips at Bell and Company 501.753.9700.