Posts Tagged ‘Congress’

Contributions for Haiti Relief – 2009 Deductions Allowed until 2/28/10

Monday, February 22nd, 2010

On 1/22/10, the Internal Revenue Service (IRS)  designated the January 2010 earthquake in Haiti as a qualified disaster by for federal tax purposes.  That same day, both houses of Congress passed legislation allowing taxpayers to deduct cash contributions made to the Haiti earthquake relief effort before March 1, 2010 deductible on the taxpayer’s 2009 tax return.  Contributions before 2/28/10 can be claimed on either a 2009 or 2010 return, but not both; Contributions after that date but before the end of the year can only be claimed on a 2010 return.  Cash contributions include amounts charged to credit cards and amounts sent to charities by text on a cell phone; a copy of the credit card or cell phone bill will be accepted as supporting the donation.  This law changes the rule that deductions must be made before year end (December 31st) to be deductible on the tax return for that year, but only for those charities assisting in Haiti and only for a short time.  Note that this rule only applies to individuals who itemize their deductions.  Additional IRS guidance is available at the following links: (1) Providing Earthquake Relief to Haiti; (2) Feb. 28 is Last Day for Special Tax Option for Haiti Relief Donations.  Have tax questions?  Contact Aronson & Company’s tax experts: Mark Gossart, Officer: (301) 231-6278 or mgossart@aronsoncompany.com.

Obama to Announce Discretionary Spending Freeze – Dollars Available to contractors Will Shrink Substantially

Tuesday, January 26th, 2010

President Obama is expected to announce a three-year freeze on non-security, discretionary spending in the State of the Union address this Wednesday, January 26th, according to CNN. The three-year freeze will hold discretionary spending at the current level of $447 billion, about one-sixth of the federal budget, with a goal of creating savings of $250 billion.  The freeze does not include defense, homeland security or the so-called “entitlement” programs such as Medicaid and Social Security.  Congress will be able to shift funding from one program to another within that amount.

Aronson predicted such a drop in discretionary spending in our January 15th, New Year’s Resolution’s post: Resolution #10: We Will Prepare for the Inevitable Government Contracting Economic Crisis. Combined with the federal deficit, a drop in discretionary funding  means an economic crisis in the government contracting industry.  As noted previously, it is critical that you start to develop a contingency plan now as very few areas will be immune from the shrinking pool of money. See the key areas to incorporate in your contingency plan here. Aronson’s Government Contracts Services Group can provide  information and assistance succeeding in these tough times – contact Lexy Kessler, Lead Officer via email or at 301.231.6218.