If you have seen our sign on Route 30 you know that we are now accepting walk ins. So if you want to refer a friend to the firm, they can just walk in and get their tax return prepared by one of professionals without a prior appointment. For our existing clients we appreciate if you could make an appointment with your usual preparer to reduce your wait time.

Employers in many states are likely to pay more federal unemployment tax (FUTA) in 2012 than in previous years due to a higher FUTA rate because of outstanding federal loans.

Under Code Sec. 3302(g), provided that certain requirements are met, a state with an outstanding loan under Title XII may repay any advances using its unemployment trust fund account in lieu of having the credit reduction rules apply to its employers.

Higher FUTA rate. A higher 0.3%, 0.6%, or 0.9% FUTA rate applies in the following states:

• The tax rate on the 2011 federal unemployment tax return due on Jan. 31, 2012 was 0.3% higher than it otherwise would have been because of these 18 states’ failure to repay their outstanding federal unemployment insurance (UI) loans for two consecutive years: Arkansas, California, Connecticut, Florida, Georgia, Illinois, Kentucky, Minnesota, Missouri, Nevada, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, Virginia, and Wisconsin. Similarly, the tax rate on the 2011 federal unemployment tax return due on Jan. 31, 2012 was 0.3% higher than it otherwise would have been because of the Virgin Islands’ failure to repay its outstanding federal UI loans for two consecutive years.
• The tax rate on the 2011 federal unemployment tax return due on Jan. 31, 2012 was 0.6% higher than it otherwise would have been because of Indiana’s failure to repay its outstanding federal UI loans for three consecutive years.
• The tax rate on the 2011 federal unemployment tax return due on Jan. 31, 2012 was 0.9% higher than it otherwise would have been because of Michigan’s failure to repay its outstanding federal UI loans for four consecutive years. Michigan has now repaid the federal UI loans, so employers will not pay a higher federal unemployment tax (FUTA) rate on their 2012 federal return (due in 2013).

The audit rate rose .63%, or one out of every 159 returns, up from .58% in 2010. S companies, partnerships and regular corporations saw a boost in examinations.

That’s one out of every 90 returns. But the number of exams actually fell slightly. The audit rate remained the same bacause the number of returns filed dropped.

The maximum amount that may be expensed under Code Sec. 179 for tax years beginning in 2012, the maximum amount will be $125,000 (indexed for inflation with 2006 as the base year). For tax years beginning in 2012, the investment ceiling will be $500,000