IRS Issues Adjusted Mileage Rates For Second Half of 2011

The IRS recently issued adjusted mileage rates for the second half of 2011 (effective 7-1-11) due to rising gas costs earlier in the year.

The new rates are as follows:

Business vehicle usage:  55.5¢ per mile
Medical vehicle usage:  23.5¢ per mile
Moving vehicle usage:  23.5¢ per mile

Driving for charity remained unchanged at 14¢ per mile.

-EAE

Share and Enjoy:
  • Print
  • Facebook
  • Twitter
  • email
Posted in Mileage Rates, News, Travel Expenses | Tagged , , | Leave a comment

Delayed Tax Returns May Now Be Filed For 2010

The IRS has announced that it started processing on February 14 the 2010 tax returns of certain taxpayers who had previously been advised to delay filing, namely those filing Schedule A or claiming above-the-line deductions for state and local sales tax, higher education tuition and fees, or educator expenses.

The delay was due to the IRS needing time to update its processing systems and accommodate the tax changes made by the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010.

Please call us today and let us help you file your 2010 tax return.

-EAE

Share and Enjoy:
  • Print
  • Facebook
  • Twitter
  • email
Posted in 1040 Filing Delay, Taxes | Tagged , , , , | Comments Off on Delayed Tax Returns May Now Be Filed For 2010

Deadline To Implement New Payroll Changes Is Close

Under the 2010 Tax Relief Act employees will pay only 4.2% Social Security tax on wages up to $106,800 (which is the limit on taxable wages for Social Security tax purposes).  The employer tax rate for Social Security remains unchanged at 6.2%.

Self-employed individuals will also benefit from this legislation.  Self-employment income will only be subject to a 10.4% Social Security tax which is down two percent from 12.4% in prior years.  The medicare tax still remains at 2.9% in 2011 for self-employed individuals.

Employers should be aware of the pending Jan. 31, 2011 deadline for implementing the new 2011 withholding tables and 4.2% employee Social Security tax rate brought about by this recent tax legislation.  Employers should also note after implementing the new 4.2% rate, they should make an offsetting adjustment in a subsequent pay period to correct any Social Security tax over-withholding by Mar. 31, 2011.

If you have any questions regarding this topic feel free to call us today and let us help you.

-EAE

Share and Enjoy:
  • Print
  • Facebook
  • Twitter
  • email
Posted in Payroll Taxes | Tagged , , , , , , , | Leave a comment

IRS Will Begin Processing Returns Impacted by 2010 Tax Changes on February 14, 2011

The delay in filing the 2010 Form 1040 for many individuals previously mentioned by the IRS will be over on February 14, 2011.

The delay impacts filers who will itemize on Schedule A or claim above-the-line deductions for higher education tuition and fees or educator expenses.  The IRS will begin accepting those returns on February 14, 2011.

If you are not one of the individuals mentioned above you can file your return immediately.  Call us today if you have any questions.

-EAE

Share and Enjoy:
  • Print
  • Facebook
  • Twitter
  • email
Posted in 1040 Filing Delay, News, Taxes | Tagged , , , , | Leave a comment

New 990-N Postcard Threshold Filing Requirements

Most tax-exempt entities who were just above the threshold of being able to file the 990-N postcard in prior years will now have that luxury.

For tax years beginning on or after January 1, 2010, most tax-exempt entities with less than $50,000 in gross receipts (up from $25,000 in prior years), are required only to file the 990-N postcard by the 15th day of the 5th month after the entity’s year end.

Call today if you think your organization might benefit from this new rule.  We can help you determine if your tax exempt entity can file the 990-N postcard for 2010 and save your group quite a bit in preparation fees due to the simplicity of this form.

-EAE

Share and Enjoy:
  • Print
  • Facebook
  • Twitter
  • email
Posted in Tax Exempt Organizations | Tagged , , | Leave a comment

Making the Switch to EFTPS

Beginning in 2011, taxpayers will no longer be able to make tax deposits (e.g. employment tax, excise tax, corporate income tax) using Form 8109, the Federal Tax deposit Coupon. These deposits must be made using the EFTPS (Electronic Federal Tax Payment System).

However, a small number of businesses—typically, those with a federal tax liability of less than $2,500 per quarter—would have the option of mailing a check with their quarterly or annual returns.

If your business is required to make deposits electronically, a 10% penalty may be charged for each non—electronic deposit made.

Click here for more information or call us today and we can assist you in using EFTPS to make your federal tax payments online.

-EAE

Share and Enjoy:
  • Print
  • Facebook
  • Twitter
  • email
Posted in EFTPS, Idea of the Week, Payroll Taxes, Self Employment Tax | Tagged , , , , , , | Leave a comment

IRS Releases 2011 Standard Mileage Rates

The IRS recently released the 2011 standard mileage rates below:

-51 cents per mile for business miles driven
-19 cents per mile driven for medical or moving purposes
-14 cents per mile driven in service of charitable organizations

-EAE

Share and Enjoy:
  • Print
  • Facebook
  • Twitter
  • email
Posted in Mileage Rates, News | Tagged , , , | Leave a comment

2010 Proposed Bush Era Tax Cut Extensions Update

The senate has overwhelmingly passed the bill to extend the Bush era tax cuts.

The house HAS NOT but it continues to appear they are likely to pass it—-but not without significant added earmarks. A vote is still expected this week.

When the bill finally passes it appears the income tax portion will pass with laws approximately as they now exist.

In regard to the estate and gift taxes the exemption increases to $5,000,000 per individual in the senate version. In addition the bill includes a provision to increase the lifetime gift tax exclusion to the same $5,000,000, up from $1,000,000 in 2010 to the $5,000,000 beginning in 2011. These increases mean that a couple with a $10,000,000 estate will pay no estate or gift taxes. THIS IS HUGE IF IT STAYS IN THE BILL.

If one is contemplating any large taxable year end gifts we suggest you wait as late as possible in 2010 to determine if the gift should be in 2010 or 2011. USE caution on this and visit with us as soon as possible to discuss the best timing decision for you.

-EAE

Share and Enjoy:
  • Print
  • Facebook
  • Twitter
  • email
Posted in Asset Protection, Estate & Gift Planning, Estate & Gift Taxes, Future Planning, News, Taxes | Tagged , , , , , , | Leave a comment

2010 Taxpayers Get An Extra Three Days To File

The deadline for 2010 tax returns is April 18, 2011 due to a government holiday.  Emancipation Day is a legal holiday in the District of Columbia and falls on April 15, 2011, therefore taxpayers have until April 18, 2011 to file 2010 tax returns and pay any taxes due.

-EAE

Share and Enjoy:
  • Print
  • Facebook
  • Twitter
  • email
Posted in News, Taxes | Tagged , , | Leave a comment

CIRCULAR 230 DISCLAIMER: ADVICE, ARTICLES AND COMMENTARY INCLUDED HEREIN DO NOT CONSTITUTE AN OPINION AND ARE NOT INTENDED OR WRITTEN TO BE USED, AND THEY CANNOT BE USED, BY ANY TAXPAYER FOR THE PURPOSE OF AVOIDING PENALTIES THAT MAY BE IMPOSED ON THE TAXPAYER.