Standard Mileage Deduction Rate Raised
Because of skyrocketing gasoline costs, the Internal Revenue Service (IRS) has raised the standard mileage deduction rate to $0.585 (58.5 cents) per mile, effective July 1, 2008. When preparing records for your tax preparer next year, be sure to break out mileage driven for business purposes into two categories:

1. January 1, 2008, through June 30, 2008

2. July 1, 2008, through December 31, 2008

Increased Penalties for Late Filings on the Way?
The U.S. Congress is considering “increased penalties” for next year as a revenue raiser and as an enhanced compliance tool. Failure-to-file penalties could affect individuals, partnerships, and S corporations as part of the plan. Also on the table: doubling penalties for late filing of W-2s and 1099s.

Bottom line, file on time!

Get a Receipt for all Major Donations
Several years ago, Congress passed a law requiring documentation of all charitable donations of $250 or more, necessitating proof of payment and a written acknowledgement from the church or other charitable organization.

A recent tax court case backed the IRS disallowance of $6,000 in church donations because, even though the taxpayer had canceled checks payable to the church, he had no written acknowledgement of his contributions to the church.

Scam Alert!
Watch out for scammers who still send seemingly genuine e-mails claiming to come from the IRS or other federal agencies that may refer to “tax refunds”, “stimulus check”,  or other legitimate-sounding subjects.

Remember:  The IRS does not send taxpayers e-mails about their tax accounts.

Joe

Learn more about Joe DePetris, Jr., and IBO tax return preparation and tax issues at IBO Bookkeeping 101.

This article is provided as an educational resource for your guidance, and is strictly informational. It does not constitute legal, accounting, or other professional counsel. Nothing included herein implies a recommendation by the author, the IBOA International, or Quixtar, of any course or method of regulatory compliance. Readers and users who intend to take, or refrain from taking, any action based on information contained herein should first consult with their qualified tax advisor, preferably a C.P.A., or appropriate regulatory authorities.