irs - Linkenheimer LLP CPAs & Advisors

Fewer IRS Audits Predicted for 2015

In an email to employees, IRS Commissioner John Koskinen said the IRS will not be able to close as many audits in 2015 due to the agency’s budget cuts. With a reduction in enforcement personnel (they announced a hiring freeze in December), he indicated that there will likely be at least 46,000 fewer individual and business audit closures and more than 280,000 fewer collections from automated notices or field revenue agents. Additionally, two furlough days for IRS employees in 2015 may be planned. Furthermore, aging information technology systems will not be replaced, which could delay new taxpayer protections against identity theft. This announcement comes on the heels of a budget reduction for the agency of $346 million during the remaining nine months of the fiscal year ending 9/30/15, which, according to the Commissioner, is the lowest funding since 2008.

By Linkenheimer LLP|2020-09-03T20:05:33+00:00January 29th, 2015|audit, irs|0 Comments

Required Minimum Distribution Reminder

Taxpayers born before 7/1/1944 generally must receive the Required Minimum Distribution (RMD) payments from their Individual Retirement Arrangements (IRAs) and workplace retirement plans [including Section 401(k) , 403(b) , and 457(b) plans] by 12/31/14. A special rule allows those who reached age 70 1/2 during 2014 to wait until as late as 4/1/15 to receive their first RMD. The special April 1 deadline applies only to the RMD for the first year; the remaining RMDs must be received each year by December 31. Consequently, deferring the first-year payment into 2015 will result in the taxpayer having two taxable distributions in 2015. If you have questions, please contact your Linkenheimer LLP CPA.

By Linkenheimer LLP|2014-12-16T00:19:08+00:00December 16th, 2014|irs|0 Comments

Mileage Rate Change for 2015

Optional standard mileage rates for use of a vehicle will change a little for 2015, the IRS announced on Wednesday, with the business use rate going up and the medical and moving rate going down (Notice 2014-79). Taxpayers can use the optional standard mileage rates to calculate the deductible costs of operating an automobile.

For business use of a car, van, pickup truck, or panel truck, the 2015 rate will be 57.5 cents per mile, slightly higher than the 56 cents per mile rate that applies for 2014. Driving for medical or moving purposes may be deducted at 23 cents per mile, which is one-half cent lower than for 2014.

The rate for service to a charitable organization is unchanged, set by statute (Sec. 170(i)) at 14 cents a mile.

The portion of the business standard mileage rate that is treated as depreciation will be 24 cents per mile for 2015, up two cents from the 22-cent rate in effect for 2014.

For purposes of computing the allowance under a fixed and variable rate (FAVR) plan, the maximum standard automobile cost for 2015 is $28,200 for automobiles (not including trucks and vans) and $30,800 […]

By Linkenheimer LLP|2020-09-03T20:05:37+00:00December 11th, 2014|irs, mileage|0 Comments

The Shutdown and What That Means For You

And a Few Things You Should Know Relating to Your Taxes:

You can file your tax return electronically or on paper –– although the processing of paper returns will be delayed until full government operations resume. Payments accompanying paper tax returns will still be accepted as the IRS receives them.

Tax refunds will not be issued until normal government operations resume.

For taxpayers seeking assistance, only the automated applications on the regular 800-829-1040 telephone line will remain open.

All other tax deadlines remain in effect, including those covering individuals, corporations, partnerships and employers. The regular payroll tax deadlines remain in effect as well.

While the government is closed, people with appointments related to examinations (audits), collection, Appeals or Taxpayer Advocate cases should assume their meetings are cancelled. IRS personnel will reschedule those meetings at a later date.

No live telephone customer service assistance will be available, however most automated toll-free telephone applications will remain operational. IRS walk-in taxpayer assistance centers will be closed.

The Federal Government might be “shutdown” and IRS employees are on furlough, but deadlines remain in effect and extensions are due on October 15. Individuals and businesses should keep filing their tax returns and making deposits with the IRS, as they are required to […]

By Linkenheimer LLP|2020-09-03T20:05:48+00:00October 11th, 2013|federal shutdown, file return, irs, october 15, refunds, tax, tax deadlines, tax implications|0 Comments

Bonus Depreciation & Section 179 Depreciation Deduction Rules for 2012

Taxpayers may want to consider making fixed asset purchases before December 31, 2012 to take advantage of two accelerated depreciation options:

1. Bonus Depreciation: For most qualified property placed into service in between January 1, 2012 and December 1, 2012, the maximum bonus depreciation allowance is 50% of the cost of the property. Purchasing new assets that have a useful life of 20 years or less generally qualify for bonus depreciation. Bonus depreciation amounts are based upon a calendar year.

2. Section 179: For tax […]

By Linkenheimer LLP|2020-09-03T20:05:56+00:00November 15th, 2012|2012, bonus, CPA, deduction, depreciation, fixed asset, irs, planning, rules, Santa Rosa, section 179|0 Comments