Effective 6/1/2011, FL Minumum Wage Increases to $7.31 Per Hour

The Florida minimum wage is $7.31 per hour, effective June 1, 2011. Florida law requires the Agency for Workforce Innovation to calculate an adjusted minimum wage rate each year.  The annual calculation is based on the percentage change in the federal  Consumer Price Index for urban wage earners and clerical workers in the South Region for the 12-month period prior to September 1, 2010.

On November 2, 2004, Florida voters approved a constitutional amendment which created Florida's minimum wage.  The minimum wage applies to all employees in the state who are covered by the federal minimum wage.

Poor Mileage Log Prevents Deduction for Car Expenses

Your Income Tax, 43.11

Willie J. Moore et ux., TC Summary Opinion 2010-102

WARNING to Friends & Clients!

Don't be fooled by the increasing number of offers for FREE, EASY, home-based computer programs to prepare your own tax returns. The marketing information suggests that "anyone can do it" or "maximum refund guaranteed." Are these statements really true?

1040 Clients - Individual Tax Returns
First of all, when you go to use the free programs, you will often find that you do not qualify for the free program because your return is "too complex." After you have spent the time entering what you hope is correct information, you will be required to enter your credit card information to e-file the return.

Taxes aren't written in everyday English; we call it tax-ease. Words in tax forms, programs, and instructions don't always mean what you think they mean. If you make a mistake, misinterpret, or leave something out, it is your fault. The IRS charges the tax due, plus penalties, plus interest! The IRS says that it is the taxpayer's responsibility to know that the return they filed is correct. If you file only one tax return per year, don't read all of the instructions, and didn't research the IRS code, how will you know that what you e-filed is correct?

Recently, in tax court, a taxpayer requested a reduction of penalties because they had relied on their tax software. The IRS rejected their request because, according to the tax court, the taxpayer is 100% responsible for knowing that what the tax program printed was correct. That taxpayer paid the tax, plus penalties and interest on the full amount.

This year, with so many foreclosures, short sales, cancellations of debt, unemployment, and retirement plan distributions, tax returns will not be easy to complete correctly. With so many changes this year, are you ready to file a completely correct tax return without the help of a qualified tax professional?

Business Owners
The rules for business tax returns are very different and very complicated compared to a personal tax return (1040).

Partnerships, corporations, and S-Corporations have filing deadlines as early as March 15th! Until recently, the penalties and interest for filing late returns were moderate.

However, for 2008 and 2009, the penalties can be up to $90 per partner/shareholder, per month, for up to twelve months! (That's over $1000 per owner, per year!)

For 2010, the penalties will increase to $195 per partner/shareholder, per month, for up to twelve months!

These penalties apply even if you didn't make any money or have any sales. Unfortunatley, "I didn't know" or "I don't have any money" are not acceptable excuses in the IRS's eyes.

Either you follow the rules (that you may not understand) or the IRS could bankrupt you!

If you currently own a business and are behind in filing your taxes, contact us immediately! We can help. If you recently started a business or are thinking of starting one, please contact us for a complimentary, no obligation "New Business 101" conversation. We will answer your questions and help you understand your business requirements and responsibilities before it's too late.