Several changes have been made to some of the Iowa fuel tax credits. For 2009 (and 2010) the E-85 tax credit amount has been reduced from $.25 per gallon to $.20 per gallon. This amount will continue to decline until it is eliminated, effective calendar year 2021.

While this year brought success for some, most of you missed an opportunity to utilize non-qualified patronage allocations. I use the term “missed” because making a non-qualified allocation with a cooperative that hasn’t utilized or discussed such allocation in advance, is difficult to do at the audit board meeting.

Recently, an issue has been raised with the IRS concerning the deductibility of grain payables recorded in a cooperative’s financial statements, and therefore in its tax return, for deferred payment contracts. The question was posed as to why the cooperative taxpayer should be allowed to deduct in its tax return a payable for grain purchased under a deferred payment arrangement, allowing the farmer/seller the opportunity to defer the reporting of his income to a subsequent tax year.

Without a clearly written policy, using additional paid time off as a benefit when deciding employee compensation, could put you at risk for a lawsuit.

The Department of Labor is helping companies remind their employees about the importance of saving for retirement. A series of four posters is available for companies to display. You can print them from the web site address below and display them in your workplace, or e-mail the messages to each of your employees. The posters come in text and graphic format and are available in English and Spanish.

W-9/1099 Reporting It is important for each business that issues checks to non-employees to have a form W-9 on file. Form W-9 is the non-employee equivalent of form W-4. Now is a good time to review your files to make certain that these forms are on hand and current. The information contained on form W-9 is used to determine if a form 1099 must be filed. Even you don’t need to issue a 1099, you are still required to have a W-9 on file. If a proper W-9 is not on file, backup withholding should be withheld from each check issued to the non-employee. Otherwise, the IRS can disallow related tax deductions and assess taxes equal to the backup withholding which you did not withhold, plus penalty and interest.