Hiring Incentives to Restore Employment (HIRE) Act of 2010 – Passed on March 18, 2010 Latest Updates! Under the Hiring Incentives to Restore Employment (HIRE) Act, enacted March 18, 2010, two new tax benefits are available to employers who hire certain previously unemployed workers (“qualified employees”).

The first, referred to as the payroll tax exemption, provides employers with an exemption from the employer’s 6.2 percent share of social security tax on wages paid to qualifying employees, effective for wages paid from March 19, 2010 through December 31, 2010.

In addition, for each qualified employee retained for at least 52 consecutive weeks, businesses will also be eligible for a general business tax credit, referred to as the new hire retention credit, of 6.2 percent of wages paid to the qualified employee over the 52 week period, up to a maximum credit of $1,000.

First Time Homebuyers Credit – The credit has been extended for purchases made between 12/01/2009 through 04/30/2010. You must enter into a binding contract by May 1, 2010 and close on the house by July 1, 2010. The refundable credit is still up to $8,000 or 10% of the purchase price. (click here for more)

Upgrade Homebuyers Credit – Effective for purchases between November 7, 2009 and April 30, 2009, you may be eligible for a refundable credit of up to $6,500 if you purchase a home. You must have owned and lived in your present home for any five-consecutive of the past 8 years, and the new home must be your primary residence. [The loophole is that you can keep your old home as a rental property and still qualify for the credit.] (click here for more)

Mandatory Electronic Filing – Paid tax preparers, such as me, are now required to file all tax returns electronically. Fortunately we already do.

S-Corporation and Partnership Late Filing Penalties – The new law increases the late filing penalty on S-Corps and Partnerships from $89 to $195 per shareholder or partner for each month or part of a month (up to 12 months) that the return is filed late.

2010 Standard Mileage Rates – The 2010 standard mileage rates were released in Rev. Proc. 2009-54.

	50 cents per mile for business miles driven.
	16.5 cents per mile driven for medical and moving purposes.
	14 cents per mile driven for charitable services.