In addition to the myriad of tax changes we’re facing as we go into the new year, here’s a reminder that CFTC Reg 4.27 requires all CTA’s to file a Form PR within 45 days of year end. This gives you a filing deadline of February 14, 2013 for the 2012 calendar year. This report must be filed using the NFA’s EasyFile System. Keep in mind that there is a proposal pending that this be expanded to a quarterly filing requirement.
Here is the link detailing how to establish an EasyFile account
Here is a link to a Form PR template provided by the NFA
As we leave 2012 behind, the Bankruptcy Trustee for Peregrine Financial Group has been authorized to make a bulk transfer of approximately $123 million to Vision Financial Markets, LLC . For those of you who have clients or associates involved in PFG’s failure and subsequent bankruptcy filing, you can find additional information at the website set up by the trustee, www.pfgchapter7.com.
Some additional tax items that NIBA members may find helpful:
- There is now an itemized deduction phase out that begins at $250k(s) and $300k(mfj)
- There is a 0.9% Medicare Surtax on incomes above $200k(s) and $250k(mfj)
- There is a 3.8% Medicare Surtax on Net Investment Income for incomes above $200k(s) and $250k(mfj)
- These and other items may combine to potentially bring your top marginal tax rate above the 39.6% rate of the top tax bracket.
On the plus side, the $500 home energy credit was extended into 2013 and the mass-transit-pass cap was retroactively increased for 2012 to $240 per month. That may require employers to reimburse previous FICA withholdings from employees. Additionally, there is now a simplified option for claiming the home office deduction in 2013 which uses a standard rate of $5/sq ft, with a maximum of $1,500.
Budget cuts at the IRS and a shift in focus towards identity theft has reduced the individual audit rate in 2012 from 1.11% to 1.03%. However, should your income exceed $1M, the audit rate increases to 12.14%. Finally, due to congressional delays, the IRS will not begin processing individual returns until after Jan 30th. For those of you who file certain additional forms such as 4562 for depreciation, 5695 for energy tax credits or8852 for passive losses, the delay may stretch into late February.
For questions or to discuss these ideas further, contact Joe DeMarco, CPA or Joe Skibinski CPA/MBA at 708.629.7985 or jd@dscpagroup.com and jskibinski@dscpagroup.com, respectively. Joe DeMarco is a partner and Joe Skibinski is a Manager at DeMarco Sciaccotta Wilkens & Dunleavy, LLP. Remember that your own individual circumstances may have significant impact on the ideas discussed here and you should always consult with your own tax professional before making any decisions.
