IRS
Resources for Small Business
 2009
Standard Mileage Rates
The IRS has announced the standard mileage rates for 2009.
Beginning Jan. 1, the standard mileage rates for cars (also vans, pickups or
panel trucks) will be:
- 55 cents per
mile for business
- 24 cents per mile for medical or
moving purposes
- 14 cents per mile in service of charitable organizations
The new rates for business, medical and moving purposes are slightly lower
than rates for the second half of 2008. For additional information visit the
IRS website.
Get Answers to Your Economic Stimulus
Payment Questions
As millions of Americans begin receiving their economic stimulus payments,
the Internal Revenue Service released a list of the most-frequently-asked
questions-and answers-that people now are asking. Find out how you can
get all your questions answered and read the
answers to the most often asked questions.
Don't Overlook These Valuable Tax
Credits
Tax credits can help you pay part of the cost of raising a family, going to
college, saving for retirement, making energy-saving improvements to your home
and getting daycare so you can work or go to school. Many taxpayers overlook
them even though they qualify. See if you qualify for
one of these tax credits >>
Business Tax Benefits of
the Economic Stimulus Package
The economic stimulus package aimed at putting a little cash in your pocket
contains some tax benefits for your business, too.
Find out what they are here >>
Tax Rebate Scams - Beware!
Although the economic stimulus package that would provide tax "rebates" to
US tax payers has not yet been passed into law, scammers are already out there
trying to use the IRS name to get individuals to divulge confidential personal
and financial information. Find out how to protect
yourself from tax rebate scams here >>
45B Credit (Employers with tipped employees)
Employers should be aware of two changes to the credit for the portion of
employer Social Security paid with respect to employee cash tips known as the
45B Credit. These changes are the result of recently enacted legislation.
In addition, the new law also allows the employer to use the 45B
credit to offset alternative minimum tax. For more complete details about this
law, see the
45B Credit Information page on the IRS website.
The law now requires employers to determine their credit using the minimum wage
in effect on January 1, 2007 even if the minimum wage increases.
For other tax changes including IRAs and other retirement plans
and individual taxes see
What's Hot In Tax Forms, Publications, and Other Tax Products.
It's Not Too Late to Get Your Telephone Tax Refund
The IRS announced in a June 8, 2007 news release that about 30 percent of
taxpayers did not request the Telephone Excise Tax Refund on their 2006 returns
so far this year, and although some of them may not be eligible, others may
qualify and not know it. Learn how you can get your
refund even if you forgot to request it on your tax return.
Avoid Common Tax Return Mistakes
The Internal Revenue Service is urging taxpayers to review their tax returns for
common errors that could delay the processing of their return and refund.
Here is a list of common tax return errors.
IRS Warns of Phony Emails
The Internal Revenue Service has alerted taxpayers about Internet scams in which
fraudulent e-mails are sent that appear to be from the IRS. The e-mails direct
the consumer to a Web link that requests personal and financial information,
such as Social Security, bank account or credit card numbers.
Find out more >>
"Dirty Dozen" Tax Scams
The Internal Revenue Service has identified 12 of the most blatant scams affecting American taxpayers and warned people not to fall for schemes peddled by scamsters.
This year the "Dirty Dozen" highlights five new scams
(and seven old ones) that IRS auditors and criminal investigators have
uncovered.
Watch Out for Inflated Telephone Tax
Refund Promises
Search warrants were carried out in seven cities this week by special agents from the Internal Revenue Service. According to affidavits filed in federal court, the IRS is seeking evidence from tax-preparation businesses suspected of preparing returns on behalf of clients requesting egregious amounts involving this year’s special telephone excise tax refund.
Read more >>
New E-mail Scam Cites Electronic Federal Tax Payment
System
The Internal Revenue Service is warning taxpayers to be on the lookout for a
new e-mail scam that uses the Treasury Department's Electronic Federal Tax
Payment System (EFTPS) as a hook to lure individuals into disclosing their
personal information. Read more >>
Business Income and the Tax Gap
The Internal Revenue Service recently completed a National Research Program
(NRP) reporting compliance study of individual taxpayers. Are you one of the
taxpayers who knowingly or unknowingly are paying less than tax laws
require? Could you be contributing to the tax gap? Read this article from
the IRS to find out.
Help for Hurricane Victims
The IRS has issued a new publication for hurricane victims. The publication
explains tax law changes and relief available to hurricane victims. Find a link
to the publication as well as other helpful information here:
Information on Tax Relief, Charitable Issues.
Business
Tax Extension Process Streamlined
The Internal Revenue Service has simplified the process for business taxpayers
filing for an extension. Now an automatic 6 month extension can be requested by
filing just one form instead of up to four.
Read more >>
Tips to Avoid Tax Preparer Fraud
While most preparers provide excellent service to their clients, the IRS
urges taxpayers to be very careful when choosing a tax preparer.
Here are tips from the IRS on how to choose
a tax preparer.
IRS Announces 2006
Mileage Rates
The Internal Revenue Service has issued the 2006 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
Details >>
IRS Warns of e-Mail Scam about Tax Refunds
The IRS issued a consumer alert about an Internet scam in which consumers receive an e-mail informing them of a tax refund. The e-mail, which claims to be from the IRS, directs the consumer to a link that requests personal information, such as Social Security number and credit card information.
Read more >>
Inflation Adjustments Widen Tax
Brackets
Personal exemptions and standard deductions will rise, tax brackets will widen
and individuals will be able to make larger tax-free gifts in 2006, thanks to
inflation adjustments announced by the Internal Revenue Service.
Get the details here >>
IRS to Study S Corporation Reporting
Compliance
Internal Revenue Service officials announced the launch of a study to assess the
reporting compliance of S corporations. The study will examine 5,000 randomly
selected S corporation returns from tax years 2003 and 2004.
Read more >>
IRS to Accept Facsimile Signatures on
Employment Tax Returns
The Internal Revenue Service has issued new rules allowing corporate officers or
duly authorized agents to sign employment tax forms by facsimile, including
alternative signature methods such as computer software programs or mechanical
devices. Read more >>
IRS Offers New Retirement Plan
Resource Guide
Small business owners can now learn virtually everything they need to know about
setting up and maintaining IRA-based retirement plans for their employees,
thanks to a new, free compact disc from the Internal Revenue Service.
Details >>
IRS Reduces Paperwork, Strengthens
Withholding Compliance
Employers will no longer be required to send copies of potentially
questionable W-4 withholding forms to the Internal Revenue Service. It will also
step up its withholding compliance program to ensure that employees have enough
federal income tax withheld from their paychecks. Read
more >>
Filing Extensions Available by Phone
or Computer
People who need more time to complete their forms will find it easy to extend
their filing deadline--they don’t need an excuse or even a stamp. Automatic
four-month extensions are available by phone or by computer, as well as through
the paper Form 4868. Details >>
IRS FAQ on
Informational Returns
An information return is a tax document that businesses are required to file to
report certain business transactions to the IRS. It is not an income tax
return but used for reporting purposes only. Get answers
some of the most frequently asked questions regarding the filing and correction
of information returns.
IRS Provides Advice on
Claiming Depreciation
Depreciating equipment or vehicles on your income taxes can make a significant
cut in your tax bill. But just how does it work, and how much can you
depreciate? Get information and advice on
depreciation here >>
New Web Feature Helps with Lost Refund
Checks
“Where’s My Refund?,” the popular Internet-based service used by taxpayers to
check on their federal income tax refunds, now offers a safe and easy way to
trace refund checks and update a flawed mailing address.
Details >>
Employee Benefit Scheme Halted
The Justice Department recently filed suit to bar promotion of an abusive tax
shelter for employers. The tax scheme, sold to more than 100 employers
nationwide, falsely advises employers that the plans satisfy a tax-law provision
that allows employers to make unlimited tax-deductible contributions to certain
qualified welfare benefit plans. Read more >>
IRS Redesigns Form 941
The Internal Revenue Service recently unveiled the redesign of the employment
tax return Form 941, Employer’s Quarterly Federal Tax Return. The simplified
form should help businesses, tax practitioners and payroll companies avoid
common errors. Read more >>
Employers Get Ready to Report Tip Income
IRS Form 8027, Employer’s Annual Information Return of Tip Income and Allocated
Tips is due to the IRS by February 28, 2005. Any employer who operates a large
food or beverage establishment must file Form 8027. Read
more >>
Beware of Tax Preparer Fraud
Most tax preparers provide excellent service to their clients. But if you run
across someone claiming they can get you larger than expected refunds, you might
want to steer clear. Even if you aren't aware of false information on your
return, you could still be subject to penalties and back taxes.
Heed these helpful hints from the IRS for choosing a
tax preparer.
IRS e-file Now Available
IRS e-file marks a major milestone this year as half of the nation’s taxpayers
are expected to file their tax returns electronically. The popular program
favored by millions of taxpayers is now available for use.
Read more >>
Sales Tax Deduction Option
The American Jobs Creation Act of 2004 gives taxpayers the option to claim state
and local sales taxes instead of state and local income taxes when they itemize
deductions.
Find out more >>
IRS Issues Optional Sales Tax Tables
The Internal Revenue Service has made available on its Web site Publication 600,
Optional State Sales Tax Tables, which taxpayers may use for their 2004 returns.
Click here for more information and for a link to
download the form.
IRS Tightens Position on Abusive Tax
Shelter Settlement Terms
The Appeals Division of the Internal Revenue Service has reassessed and
tightened its settlement guidelines under which it will accept offers to settle
cases with taxpayers that participated in certain abusive transactions.
Read more >>
Check Carefully before Applying
for Offers in Compromise
The Internal Revenue Service has issued a consumer alert advising taxpayers to
beware of promoters’ claims that tax debts can be settled for “pennies on the
dollar” through the Offer in Compromise Program.
Read more >>
IRS Form Change Means Savings for
Businesses
The Internal Revenue Service announced it will expand the number of small
businesses eligible to file a simplified expense form, a move that will save
money and reduce paperwork burden. Read more >>
Although
most small businesses don't realize it, one of the best places to get
easy-to-understand information about federal income tax rules is the IRS
web site. Whether you need to know the latest
tax changes, need
an application for an employer
identification number, or want a place to find a wide variety of
tax information for
small businesses and the self-employed, you will find help on the IRS web site.
Here are some of the key sections you'll want to look at:
Pay Federal Taxes Online
EFTPS is the Electronic Federal Tax Payment System
developed by the U.S. Department of the Treasury’s Internal Revenue Service
(IRS) and Financial Management Service (FMS) to enable taxpayers to
pay federal taxes electronically.
Business Start-up Workshop
Get an overview of the steps you need to take when you start a business. Six informative modules cover the basics.
Gather Additional Small Business Startup Facts
Learn what you need to know to comply with federal laws when you start a
business. The IRS offers help with the basics in English and in Spanish from its
business startup section.
About EINs
Not sure if you need an EIN (Employer ID Number)? Everything you need to answer that question can be found on the
EIN
web page. Or if you already have an EIN, and have begun a new business,
find out if you’ll need a
new EIN.
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