Update on the Bill Congress Passed to Avert “Fiscal Cliff”
The House and Senate passed the bill on Tuesday and sent it to President Barack Obama for his signature.
- Income tax rates: Extends decade-old tax cuts on incomes up to $400,000 for individuals, $450,000 for couples. Earnings above those amounts would be taxed at a rate of 39.6 percent, up from the current 35 percent. Extends Clinton-era caps on itemized deductions and the phase-out of the personal exemption for individuals making more than $250,000 and couples earning more than $300,000.
- Estate tax: Estates would be taxed at a top rate of 40 percent, with the first $5 million in value exempted for individual estates and $10 million for family estates. In 2012, such estates were subject to a top rate of 35 percent.
- Capital gains, dividends: Taxes on capital gains and dividend income exceeding $400,000 for individuals and $450,000 for families would increase from 15 percent to 20 percent.
- Alternative minimum tax: Permanently addresses the alternative minimum tax and indexes it for inflation to prevent nearly 30 million middle- and upper-middle income taxpayers from being hit with higher tax bills averaging almost $3,000. The tax was originally designed to ensure that the wealthy did not avoid owing taxes by using loopholes.
- Other tax changes: Extends for five years Obama-sought expansions of the child tax credit, the earned income tax credit, and an up-to-$2,500 tax credit for college tuition. Also extends for one year accelerated "bonus" depreciation of business investments in new property and equipment, a tax credit for research and development costs and a tax credit for renewable energy such as wind-generated electricity.
- Unemployment benefits: Extends jobless benefits for the long-term unemployed for one year.
- Cuts in Medicare reimbursements to doctors: Blocks a 27 percent cut in Medicare payments to doctors for one year. The cut is the product of an obsolete 1997 budget formula.
- Social Security payroll tax cut: Allows a 2-percentage-point cut in the payroll tax first enacted two years ago to lapse, which restores the payroll tax to 6.2 percent.
- Across-the-board cuts: Delays for two months $109 billion worth of across-the-board spending cuts set to start striking the Pentagon and domestic agencies this week. Cost of $24 billion is divided between spending cuts and new revenues from rule changes on converting traditional individual retirement accounts into Roth IRAs.
Please contact us at 610-544-5900 if you have any questions or would like further information. As the new Legislation becomes clearer, we will update you with changes that will impact your taxes.
IRS Gives Additional Time to Taxpayers and Preparers Affected by Hurricane Sandy;
WASHINGTON — The Internal Revenue Service today announced it is granting taxpayers and tax preparers affected by Hurricane Sandy until Nov. 7 to file returns and accompanying payments normally due today.
The relief applies to taxpayers and tax preparers in an area affected by Hurricane Sandy or otherwise impacted by the storm that hit the Mid-Atlantic and Northeastern United States this week.
This relief primarily applies to businesses whose payroll and excise tax returns and payments are normally due today. No action is required by the taxpayer; this relief is automatic. Regular federal tax deposits are due according to current rules. However, the IRS notes that if taxpayers or tax practitioners receive a penalty notice for this period, they can contact the IRS at the number on the notice to request penalty abatement due to reasonable cause on account of the storm.
IRS expects to grant additional filing and payment relief as qualifying disaster declarations are issued by the Federal Emergency Management Agency (FEMA). Details will be posted on the Tax Relief in Disaster Situations page on IRS.gov.
"One of the things EO Philadelphia members like to do besides business," said the group's incoming president, Bob Simpson, "is teach". The Entrepreneurs Organization of Philadelphia (EOP) introduced Andre Norman to the city's Network For Teaching Entrepreneurship (NFTE). Andre overcame an abusive family, gangs and prison to become a successful world entrepreneur. And this week he brought his message to dozens of Philadelphia teenagers. Watch the video--and see Bob Simpson, Partner of Brinker, Simpson & Company, being interviewed--in the link below.
Bob Simpson was quoted in the following article that appeared in the business section in the March 25, 2012 edition of the Philadelphia Inquirer. "It is a very complicated, burdensome credit to compute, especially if the company doesn't have an outsourced payroll service that can get you the hours for the employees," said Bob Simpson of Brinker Simpson & Co. L.L.C., an accounting firm in Springfield, Delaware County. Simpson said that of the 150 corporate returns his firm filed, fewer than 10 received the health-care tax credit. The benefit often outweighs the cost of figuring out whether the business qualifies, he said."
Brinker, Simpson & Company is happy to announce that our client, Sun Center Studios, will be making a new movie, "After Earth" directed by M. Night Shyamalan. “This is the very first film to shoot at the new Sun Center Studios,” said film commission Executive Director Sharon Pinkerton. “It is also the biggest film shooting on the East Coast as of right now. So that is quite a remarkable way to kick off this amazing new facility in Delaware County that is adding so much to our industry.” "After Earth" is scheduled to be released in June 2013!
Bob Simpson appeared on WWDB’s Cucina Chatter show hosted by Lorraine Renalli. Listen to it here..
Bob Simpson appread on Executive Leaders Radio. Listen here..
Bob Simpson’s recent appearance on Executive Leaders Radio Program will air on Friday, September 16th on WIFI/1460AM at 2pm ( www.wifiam1460.com to hear it streamed live from their website), Sunday, September 18th on WCHE/1520AM at 3pm (live stream www.wche1520.com ) & Monday, September 19th on WSNJ/1240AM at 1:00 p.m. (live stream www.wsnjam.com ) .....so make sure you tune in! In addition, within a few weeks after it airs, it will also be posted on our website, where it will be archived ( www.executiveleadersradio.com ). You can also access the show on iTunes, SmartBusiness, The Entrepreneurship Institute and you will also find ELR content listed on these podcast sites: Castroller.com, Podbean.com, Podcast.com, Podcasters.tv and iBizRadio.com!
Bob Simpson, CPA was selected as a SmartCEO readers pick of the Philadelphia region’s top accountants. “The SmartCPA Readers Choice section recognizes Philadelphia’s CPA royalty. Not only have these accounting aficionados conquered the climb to CPA stardom, they’ve also won the affection of the region’s top business executives and proven their mettle by helping them run successful companies”. Paul Berman, President of Delaware Valley Valpak, Inc., has this to say about Bob, “What I feel is special about Bob is that he is always available for meetings or calls on other financial issues, be it working on our banking relationships, preparing documents for our operating lines of credit, partner issues, tax questions, financial planning questions and more.”
Bob Simpson has been named to the Board of Finance for the Philadelphia Chapter of The Entrepreneurs' Organization, an educational and support network for entrepreneurs.
On May 10, we co-hosted with the Delaware County Chamber of Commerce a Business After Hours. It was great networking with what looked like close to 70 people in attendance. A large number of business connections were made. Thanks to Difabios for the awesome food.
Small Business Person of the Year 2011
Bob Simpson, CPA being presented with the Small Business Person of the Year award by Mike Brady, President of the Delaware County Chamber of Commerce.
Bob Simpson, CPA is Small Business Person of the Year
Bob Simpson, CPA, was presented with the Small Business Person of the Year Award by the Delaware County Chamber of Commerce at their 2011 Small Business Awards Reception on April 6, 2011.
Bob founded Brinker, Simpson & Company LLC, a full service CPA and business advisory firm, in 1988 and has been Managing Partner ever since. Serving closely held businesses and individuals, Bob’s vision for the firm has been to provide a comfortable work place where employees are valued and clients receive top level, personal tax, accounting and business advisory services. The firm has grown over the years to now employ 20 people at the Springfield, Delaware County offices.
In addition to being voted a “Best Place to Work” by the Philadelphia Business Journal in 2010, Brinker, Simpson & Company is committed to giving back to the community by sponsoring families in need each holiday season, donating money to food banks, and participating in educational career day programs at local high schools and colleges. Elected auditor of Springfield Township in 2007, Bob sits on the board of the Entrepreneur Organization of Philadelphia and on local charity boards.
At the awards ceremony, Bob explained in his speech that “as a business owner, you need to start each day by shaking off the problems and stresses you know you will face, and believe that the office you are about to walk into is the best place to work. If you believe it, so will your employees.” Bob’s family and employees were in attendance to congratulate him on receiving this great honor.
Brinker Simpson and the Delaware County Keystone Innovation Zone (DCKIZ) are pleased to announce the firm’s inclusion on the Zone’s Operating Partners’ Group. Effective March 25, 2011, Bob Simpson accepted the invitation and will begin advising the Partners and the Zone’s portfolio companies on matters related to Brinker Simpson’s core specialties.
A Keystone Innovation Zone (KIZ) is a state designated zone that has been established in communities which host institutions of higher education - colleges, universities, junior colleges and technical schools. These zones are designed to foster innovation and create entrepreneurial opportunities. The primary financial incentive for qualified companies is the KIZ tax credit, which is sellable, used to grow businesses.
“The Delaware County Keystone Innovation Zone is thrilled to welcome Brinker Simpson to our Operating Partners Group,” said John Dixon, Coordinator for the Zone. “Brinker Simpson brings much needed accounting, tax, financial planning, and business advisory services and expertise to our partners and companies and truly helps us realize our goal of benefitting early stage companies – both as they develop out of the university research community and as they form by other means. Bob Simpson’s outstanding reputation in Delaware County and throughout the Philadelphia region will be a true value-add for our zone for years to come.”
Designated in May 2006 to support the industry clusters of homeland security and defense, and a variety of related industries, the Delaware County Keystone Innovation Zone catalyzes and matches the knowledge and intellectual assets of regional academic institutions with the support of local partners to benefit entrepreneurial, early stage companies. Comprised of (14) portfolio companies and a range of for-and-non-profit partners with expertise from legal and strategic planning to real estate and accounting, the zone is headquartered in Chester, PA. The Delaware County KIZ’s vision is to become a local, regional and national leader in innovation led commercialization.
“We are very excited to join the Operating Partners Group of the Delaware County KIZ, said Bob Simpson. “Assisting entrepreneurs in the development of their business is our way to give back to Delaware County.”
Tony Mitchell, CPA, Partner, Matt Mingey, CPA, Partner, Andrew Brenner, CPA and Denise Farrell, CPA of Brinker, Simpson & Company, CPAs/Business Consultants and Corporate Sponsors attending the 2008 Arena Bowl Champion Philadelphia Soul Christmas Party at Chickie's & Pete's in Philadelphia.
Tony Mitchell, CPA, Partner of Brinker, Simpson & Company and sponsor with Ron Jaworski, co-owner, attending the 2008 Arena Bowl Champion Philadelphia Soul Christmas Party at Chickie's & Pete's in Philadelphia.
Bob Simpson, Partner, Brinker, Simpson & Company, CPAs/Business Consultants and Corporate Sponsor, Head Coach Hohensee of the Philadelphia Soul and Cos Denecola, Co-owner of the Philadelphia Soul enjoying the official "Welcome Back" party for the 2008 Arena Bowl Champion Philadelphia Soul on September, 16, 2010 at Chickie's & Pete's in Philadelphia.
On Monday August 30, 2010, Brinker, Simpson & Company was notified by the Philadelphia Business Journal that we were selected as one of the Best Places to Work 2010. The Best Places to Work program ranks the top employers in the Delaware Valley according to scores given to the companies by their own workers. According to Sonja Sherwood, special reports editor for the Philadelphia Business Journal, "The contest is based on how workers score their companies in an anonymous online survey administered by an independent third party, so there are no outside judges or subjective criteria, and companies are benchmarked against their size peers. If you don't have the loyalty of your employees, not only can't you win, you can't even qualify to compete." We, at Brinker, Simpson & Company are very proud to receive this honor and are especially grateful for our loyal, dedicated and hard-working employees.
Brinker, Simpson & Company, a 2010 Best Place to Work Winner, attended a private reception on October 14, 2010 where the Philadelphia Business Journal revealed the top winners of the Best Places to Work. We finished in the top 10.