December 6, 2013 – 2014 Standard Mileage Rates

The IRS has released Notice 2013-80, with the following optional 2014 standard mileage rates for taxpayers to use in computing the deductible costs of operating an automobile:

• 56 cents per mile for business miles driven
• 23.5 cents per mile driven for medical or moving purposes
• 14 cents per mile driven in service of charitable organizations

November 11, 2013 – The Affordable Care Act

In March 2010, President Obama signed the Patient Protection and Affordable Care Act into law. While some provisions of the ACA have already gone into effect, a number of new provisions are scheduled to take effect January 1, 2014. Although we do not intend this update to be the answer-all to the ACA, we thought this information would be useful and timely. Read more...

October 31, 2013 – IRS Warns of Pervasive Telephone Scam

The Internal Revenue Service today warned consumers about a sophisticated phone scam targeting taxpayers, including recent immigrants, throughout the country. Victims are told they owe money to the IRS and it must be paid promptly through a pre-loaded debit card or wire transfer. If the victim refuses to cooperate, they are then threatened with arrest, deportation or suspension of a business or driver´s license. In many cases, the caller becomes hostile and insulting. Read more...

October 16, 2013 – Important 2013 Third Quarter
Federal Tax Developments

During the third quarter of 2013, there were many important federal tax developments. We highlight here some of the more significant developments for you. As always, contact our office if you have any questions. Read more...

October 2, 2013 – IRS Announces Cutback in Operations

The IRS announced today that “due to the current lapse in appropriations, IRS operations will be limited.” Read more...

September 24, 2013 – No California Principal Residence Cancellation
of Debt Exclusion for 2013

The California Legislature did not extend the cancellation of debt (COD) exclusion for canceled qualified principal residence debt when SB 416 (Liu) was defeated. Read more...

September 16, 2013 – Expiring Business Tax Provisions

A description of many business tax provisions that are scheduled to expire. Read more...

August 22, 2013 – 2013 California State Income Tax Rate Schedules Adjusted

The Franchise Tax Board (FTB) has released the 2013 state tax brackets. Brackets are “indexed” each year by adjusting them to reflect changes in the California Consumer Price Index (CPI). Read more...

July 18, 2013 – Important 2013 Second Quarter Federal Tax Developments

During the second quarter of 2013, there were many important federal tax developments concerning DOMA, Exempt Organizations, Tax Reform, and several other topics. Read more...

July 5, 2013 – Supreme Court Strikes Down Section 3 of the Defense of Marriage Act

The United States Supreme Court has handed down its much-anticipated decision on the fate of Section 3 of the Defense of Marriage Act (DOMA) and the ruling has many implications for taxpayers. The Court struck down Section 3 of DOMA in Windsor v. U.S., June 26, 2013, opening the door for the federal government to extend to same-sex married couples the same benefits available to opposite-sex married couples, including a host of tax-related benefits. The IRS has promised to provide guidance to taxpayers as soon as possible but the agency has a daunting task ahead because so many Tax Code provisions are impacted by the Court´s decision. Read more...

May 16, 2013 – Charity Auctions

We are often asked how to determine the charitable contribution deduction for auction items, both as a purchased item at a silent or live auction or as donated goods to be auctioned by a charitable organization. Donors who purchase items at a charity auction may claim a charitable contribution deduction for the excess of the purchase price paid for an item over its fair market value. The donor must be able to show, however, that he or she knew that the value of the item was less than the amount paid. Read more...

May 7, 2013 – Important 2013 First Quarter Federal Tax Developments

April 15 has come and gone but it´s not time to stop thinking about taxes and strategic tax planning opportunities. Since the start of 2013, there have been many new federal tax developments, which will impact tax planning for this year and beyond. As 2013 unfolds, many changes made to the Tax Code by the American Taxpayer Relief Act of 2012 (ATRA) take effect. Additionally, there are new taxes to take into account because of the health care reform package, along with enhancements to many tax credits and deductions. Read more...

April 23, 2013 – Small Business Health Care Credit

If you are a small employer with fewer than 25 full-time equivalent employees, pay an average wage of less than $50,000 a year, and pay at least half of your employee health insurance premiums then you may be eligible for the Small Business Health Care Tax Credit. Read more...

March 26, 2013 – New Form I-9 Released

On March 8, 2013, the U.S. Citizenship & Immigration Services (USCIS) released a new Employment Eligibility Verification Form I-9. Employers are required to complete Form I-9 for all newly-hired employees to verify their identity and authorization to work in the United States. Employers should begin using the new Form I-9 with revision date 03/08/13 immediately for all new hires. (Note: Employers may continue to use previously valid Forms I-9 for sixty calendar days. However, beginning May 7, 2013, employers must only use the new Form I-9). In the cases of reverification or rehires, the new version of the Form I-9 (Rev. 03/08/13)N must be used, effective immediately. Read more...

March 4, 2013 – Bogus IRS Emails

The Internal Revenue Service is warning taxpayers about potential e-mail scammers who claim to be the IRS. Scammers use the IRS name or logo to make the message appear authentic so you will respond to it. In reality, it´s a scam attempting to trick you into revealing your personal and financial information. The IRS does not initiate contact with taxpayers by e-mail or social media channels to request personal or financial information. Never share confidential information via e-mail with someone alleging to be the IRS. If you receive a suspicious e-mail claiming to be from the IRS, or directing you to an IRS site, do not reply, do not open any attachments, and do not click on any links. For more information on these scams and what to watch for, go HERE.

February 18, 2013 – Home Office Deduction – Introducing a Simplified Option

The home office deduction rules are among the most complex in the Tax Code and are strictly enforced by the IRS. On January 15, 2013, the IRS announced a new simplified option (also known as a safe harbor method) to calculate the home office deduction. The simplified option, at this time, is capped at $1,500 per year based on $5 a square foot up to 300 square feet. It is important to weigh the benefits of using the new simplified option against computing the home office deduction under the regular Tax Code rules. Read more...

February 8, 2013 – Identity Theft and Taxes

Across the nation, identity thieves are using legitimate information to scam honest taxpayers, and frequently posing as a representative from the IRS or a state tax authority to do so. The IRS and Franchise Tax Board are taking this problem very seriously. Being aware of some of the most common scams can help protect you from having your personal information used to commit fraud or other crimes. Read more...

January 22, 2013 – 2012 Taxpayer Relief Act: Alternative Minimum Tax

The alternative minimum tax (AMT) traps more middle income taxpayers every year. To partially alleviate this tax burden, Congress has been enacting annual “patches” to the AMT to increase exemption amounts. The American Taxpayer Relief Act of 2012 (2012 Taxpayer Relief Act) provides immediate relief for the AMT by permanently increasing the AMT exemption amounts retroactive to the 2012 tax year. Beginning in 2013, these base AMT exemption amounts will be adjusted annually for inflation. Read more...

January 10, 2013 – IRS Announces Opening of 2013 Filing Season

The IRS announced that it plans to open the 2013 filing season and begin processing individual income tax returns on January 30th, 2013. This means that January 30th is the first day they will accept e-filed returns. The IRS will accept paper-filed returns before that date, although they will not begin processing them until January 30th. The IRS also announced that the processing date for returns containing certain forms will be delayed until late February or into March. Two of the more common forms on the list are Form 4562, Depreciation and Amortization, and Form 8582, Passive Activity Loss Limitations. For a complete list of forms, go HERE.

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