DEADLINE COMING UP FOR FLEX PLANS

A deadline for many flex plan participants is coming up.  The 2011 set-asides must be used by March 15 if the plan uses IRS’ 2½-month grace period.  Any funds left over are forfeited. The deadline for other FSAs was Dec. 31, 2011.

Remember that after this year, the ceiling on FSA set-asides will drop to $2,500.

FARMERS WATCH OUT FOR UNEMPLOYMENT TAX

Because of the excellent numbers, many of the owners of farm corporations paid high wages commodity wages in the fourth quarter of 2011.  In many cases the wages reported in this quarter can easily exceed $20,000.

This becomes a problem.  When cash and commodity wages reported for any quarter exceed $20,000, the corporation is subject to paying Nebraska Unemployment taxes (SUTA) (federal unemployment is based soley on cash wages so most farm corporations are not subject to federal unemployment). 

If you paid over $20,000 of cash and commodity wages in any quarter don’t forget you are now required to register with the State Department of Labor and file state unemployment tax returns quarterly.

THE IRS WARNS OF REFUND DELAYS

Last week the Internal Revenue Service warned that tax refunds could be delayed a week this tax season because of new anti-fraud safeguards.

“The IRS has opened its filing season successfully this month, and refunds have started going out to many taxpayers,” the agency said in an email to tax professionals. “As with the start of any tax season, there are system validations that occur requiring some fine-tuning of our systems. As part of this, some taxpayers will receive refunds approximately one week later than initial projections they may have received, but these are still in line with historical refund delivery times.”

The IRS noted that the one-week delay is related to the fine-tuning of IRS systems to adjust for new safeguards that were put in place this tax season to provide for stronger protection against tax refund fraud. The agency has come under heavy criticism for the increasing number of identity theft cases related to tax refunds, and it recently added more stringent measures.

The IRS said it is providing additional screening for fraud this year before issuing refunds, but the vast majority of taxpayers can still continue to expect to receive their refunds in a timely fashion.

The IRS also noted that the refund time frames provided by the “Where’s My Refund” tool on its Web site are projected time frames and are subject to revision. “Many different factors can affect the timing of the refund after the IRS receives the return for processing,” said the agency. “The IRS apologizes for any inconvenience caused by the revised refund dates.”

The IRS promised that the delay only affects some early filers, and taxpayers whose returns were accepted by the IRS on or after January 26 would not experience the delay.

TIPS FOR RECENTLY MARRIED OR DIVORCED TAXPAYERS WITH A NAME CHANGE

The IRS just issued a reminder to people with name changes.  Processing of your return will be slowed down if you do not properly follow their steps. 

Five Tips for Recently Married or Divorced Taxpayers with a Name Change

If you changed your name after a recent marriage or divorce, the IRS reminds you to take the necessary steps to ensure the name on your tax return matches the name registered with the Social Security Administration. A mismatch between the name shown on your tax return and the SSA records can cause problems in the processing of your return and may even delay your refund.

Here are five tips from the IRS for recently married or divorced taxpayers who have a name change.

1. f you took your spouse’s last name -- or if you hyphenated your last names, you may run into complications if you don’t notify the SSA. When newlyweds file a tax return using their new last names, IRS computers can’t match the new name with their Social Security number.

2. If you recently divorced and changed back to your previous last name, you’ll also need to notify the SSA of this name change.

3. Informing the SSA of a name change is easy. Simply file a Form SS-5, Application for a Social Security Card, at your local SSA office or by mail and provide a recently issued document as proof of your legal name change.

4. Form SS-5 is available on SSA’s website at http://www.socialsecurity.gov/, by calling 800-772-1213 or at local offices. Your new card will have the same number as your previous card, but will show your new name.

5. If you adopted your spouse’s children after getting married and their names changed, you'll need to update their names with SSA too. For adopted children without SSNs, the parents can apply for an Adoption Taxpayer Identification Number – or ATIN – by filing Form W-7A, Application for Taxpayer Identification Number for Pending U.S. Adoptions with the IRS. The ATIN is a temporary number used in place of an SSN on the tax return. Form W-7A is available on the IRS.gov website or by calling 800-TAX-FORM (800-829-3676).

FARM LENDING COMPETITION IS FEROCIOUS

(Bloomberg News/JournalStar.com) -- Bloomberg reports, "Farmers are taking advantage of a resurgence in government-chartered credit providers and Federal Reserve efforts to stoke the economy by holding the Fed funds rate near zero."According to Jason Henderson, vice president and Omaha branch executive at the Federal Reserve Bank of Kansas City, "We're seeing very aggressive activity by the Farm Credit System and commercial banks. ... Everyone is battling for market share."In Nebraska, farm real estate loans went for an average rate of 5.72% in the third quarter last year, according to the article -- "about half what they were 25 years ago."

To read more on this article: READ MORE

NEW FARM BILL

'New Farm Bill Not Likely Until Spring Of 2013, Insiders Say'

(Nebraska Radio Network) -- NebraskaRadioNetwork.com reports that Barry Flinchbaugh, a noted ageconomist at Kansas State University, "says Nebraska farmers and ranchers who are hoping to see a new farm bill come out of Congress this year will likely be disappointed." Flinchbaugh "doesn't expect a lot of work to be done on the farm bill until next year," after the election. He also predicts "ag income will likely increase this year, following the approval of the trade agreements last fall."

To read more on the article: READ MORE

HERE’S SOME GOOD NEWS

Law School Applications Fall 15%

The total number of applications and applicants for the Class of 2015 at ABA-approved law schools as of January 13, 2012 were:

· Applicants: 31,815, down 16.7% from last year
· Applications: 233,361, down 15.3% from last year