June 14, 2009
August 10, 2008
LOS ANGELES IRS TAX AUDIT GUIDELINE FOR BUSINESS AUTO EXPENSE
Los Angeles Tax Attorney Internal Revenue Service IRS TAX today announced an increase in the optional standard mileage rates for the final six months of 2008. Taxpayers may use the optional standard rates to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
The rate will increase to 58.5 cents a mile for all business miles driven from July 1, 2008, through Dec. 31, 2008. This is an increase of eight (8) cents from the 50.5 cent rate in effect for the first six months of 2008, as set forth in Internal Revenue Procedure 2007-70. IRS TAX AUDIT - Auto Expense Miles
In recognition of recent gasoline price increases, the IRS made this special adjustment for the final months of 2008. The IRS normally updates the mileage rates once a year in the fall for the next calendar year.
"Rising gas prices are having a major impact on individual Americans. Given the increase in prices, the IRS is adjusting the standard mileage rates to better reflect the real cost of operating an automobile," said IRS Commissioner Doug Shulman. "We want the reimbursement rate to be fair to taxpayers."
While gasoline is a significant factor in the mileage figure, other items enter into the calculation of mileage rates, such as depreciation and insurance and other fixed and variable costs.
The optional business standard mileage rate is used to compute the deductible costs of operating an automobile for business use in lieu of tracking actual costs. This rate is also used as a benchmark by the federal government and many businesses to reimburse their employees for mileage.
The new six-month rate for computing deductible medical or moving expenses will also increase by eight (8) cents to 27 cents a mile, up from 19 cents for the first six months of 2008. The rate for providing services for charitable organizations is set by statute, not the IRS, and remains at 14 cents a mile.
The new rates are contained in Announcement 2008-63 on the optional standard mileage rates.
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates. IRS Mileage Expense for Tax Audit
March 4, 2008
IRS Offer in Compromise - Resolve Tax Problem - Los Angeles, Long Beach California Tax Attorney
Many Los Angeles, Long Beach, Orange, Riverside, San Jose area business owners and taxpayers who have IRS tax problems may not have been aware of the tax settlement program called offer in compromise. Tax attorneys who handle these type of cases should prepare a comprehensive tax and financial analysis in order to prepare the most favorable tax settlement proposal which would result in minimum tax debt being paid to the IRS.
Although the IRS discourages and may create obstacles to have your IRS taxes reduced, a good tax attorney will often be able to prepare legal arguments that would contest and challenges put forth by the IRS concerning the tax settlement proposal.
An IRS Offer in Compromise allows taxpayers to settle their tax liabilities for less than the full amount. The objective of the IRS Offer in Compromise program is to accept a compromise when it is in the best interests of both the taxpayer and the government and promotes voluntary compliance with all future payment and filing requirements.
Major Changes to the IRS Offer in Compromise Program
The Tax Increase Prevention and Reconciliation Act of 2005 (TIPRA), created major changes to the IRS IRS Offer in Compromise program as it relates to lump sum offers, periodic payment offers, and a determination as to when an offer is accepted. These changes affect all offers received by the IRS on or after July 16, 2006.
March 3, 2008
IRS Offer in Compromise - Tax Settlement Los Angeles Tax Attorney
Los Angeles, California Tax Attorney - Most common questions asked by our Los Angeles, Orange County, Riverside and San Francisco area tax payers regarding IRS Tax Settlement - Offer in Compromise to resolve IRS tax problem.
1. What is the Tax Increase Prevention and Reconciliation Act ?
The Tax Increase Prevention and Reconciliation Act of 2005 was signed into tax law on May 17, 2006. Section 509 of this law creates significant changes to the IRS Offer in Compromise (OIC) program by amending Internal Revenue Service Code 7122.
2. When did the IRS Tax Increase Prevention and Reconciliation Act law go into effect?
The law went into effect for all offers that are submitted to the IRS on or after July 16, 2006.
3. How did IRS Tax Increase Prevention and Reconciliation Act , Section 509, impact the OIC program?
IRS Tax Increase Prevention and Reconciliation Act , Section 509, amends Internal Revenue Service Code 7122 by creating a new subsection (c), titled “Rules for Submission of Offers in Compromise.” The new subsection (c) requires that offers submitted on or after July 16, 2006, (and not subject to the waiver with respect to low-income taxpayers or offers filed under doubt as to liability only) must be accompanied by partial payments of the proposed offer amount. The form of these partial payments depends on the taxpayer’s proposed offer and terms of payment. The law also establishes a time period after which an offer would be deemed accepted by the IRS.
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February 15, 2008
