October 17, 2012
Joseph Perry, Partner-in-Charge, Tax & Business Services & Robert Spielman, Tax & Business Services Partner, Featured in Long Island Business News Article "CPAs Urge Firms to Pay 4Q Dividends in 2012"
Accountants are urging companies to pay dividends this year rather than wait until next year, when rates are slated to nearly triple.
That tax rate on dividends is slated to rise from a taxpayer-friendly 15 percent to 43.4 percent next year if the Bush tax cuts expire.
The tab will include a 39.6 percent tax on dividends as ordinary income and a 3.8 percent Medicare surcharge on unearned income.
“Unless the Bush tax cuts are extended, shareholders will have tremendous tax exposure in 2013,” said Joseph Perry, Marcum’s partner in charge of tax and business services. “Moving their dividend pay dates into the 2012 tax year is an easy, no-cost way for companies to help shareholders avoid the extreme impact of this part of the so-called fiscal cliff.”
Billions of dollars in taxes could be at stake, based on whether companies pay dividends in December or wait until early next year.
“This is the most attractive and accessible option available to public companies looking for shareholder-friendly programs.” said Robert Spielman, a partner in Marcum’s tax and business services division. “We’re recommending that all our publicly traded clients move their fourth quarter dividend pay dates into 2012.”
Click here to read the full article on LIBN.com >>