Friday, June 24, 2011

IRS Standard Mileage Rates goes up July 1...

We have been waiting for this! The high cost at the gas pump prompted the Internal Revenue Service to adjust the standard mileage rate for the second half of the year.

The standard mileage rate is used by taxpayers to determine the tax deduction without tracking actual costs to operate a vehicle. It also is used by the federal government and many businesses to determine the reimbursement rate for employee mileage.

The IRS announced Thursday the rate for business miles will increase by 4.5 cents. Taxpayers will calculate mileage driven from January through June at 51 cents a mile and miles driven July through December at 55.5 cents.

The IRS announced Thursday that the standard business mileage rate is increasing for the second half of the year. The Obama administration said the U.S. will tap into strategic gas reserves in an effort to lower the price at the pump. Considering the next presidential election is roughly a year away, this move was not unexpected!

The mileage rate for moving and medical travel will increase by 4.5 cents to 23.5 cents a mile. Mileage for charitable work will remain at 14 cents a mile.

Friday, June 10, 2011

IRS ends non profit status for many nonprofit orgs

IRS identifies revoked tax-exempts, provides fix

June 10, 2011

The IRS has published a list of tax-exempt organizations that have lost their tax exemption for failure to file information returns with the IRS for three straight years. The IRS has also published an automatic procedure (Rev. Proc. 2011-33) for such organizations to regain their exempt status. The list can be seen at the following website:,,id=240099,00.html

Thursday, June 02, 2011

Hurricanes and taxes!

With the hurricane season now here, we thought some items should be discussed!

Create a Backup Set of Records Electronically.Taxpayers should keep a set of backup records in a safe place. The backup should be stored away from the original set. Keeping a backup set of records –– including, for example, bank statements, tax returns, insurance policies, etc. –– is easier now that many financial institutions provide statements and documents electronically. Even if the original records are provided only on paper, they can be scanned into an electronic format. With documents in electronic form, taxpayers can download them to a backup storage device, like an external hard drive, or burn them to a CD or DVD.

Document Valuables
Another step a taxpayer can take to prepare for disaster is to photograph or videotape the contents of his or her home, especially items of higher value. The IRS has a disaster loss workbook, Publication 584, which can help taxpayers compile a room-by-room list of belongings.
A photographic record can help an individual prove the market value of items for insurance and casualty loss claims. Photos should be stored with a friend or family member who lives outside the area.

Update Emergency Plans

Emergency plans should be reviewed annually. Personal and business situations change over time as do preparedness needs. When employers hire new employees or when a company or organization changes functions, plans should be updated accordingly and employees should be informed of the changes.