Scharf Pera & Co., PLLC celebrates FanFriday and shows their Panther Pride!
The IRS has announced that the optional mileage allowance for owned or leased autos (including vans, pickups or panel trucks) will decrease by $.05 to $.56 per mile for business travel starting January 1, 2014. This rate can also be used by employers to reimburse tax-free under an accountable plan employees who supply their own autos for business use, and to value personal use of certain low-cost employer-provided vehicles.
The rate for using a car to get medical care or in connection with a move that qualifies for the moving expense will also decrease by $.05 to $.235 per mile. The rate for service to a charitable organization is unchanged at $.14 per mile. Notice 2013-80, 2013-52 IRB ; IR 2013-95
April 15 will be here sooner than you think! With a little planning before the end of the year, you could take advantage of tax breaks to help you lower your tax bill. Several tax provisions are scheduled to expire at the end of this year. Many of these tax breaks have been extended in the past, so it’s possible Congress could extend them again. Click HERE for a look at eight tax breaks to consider now before they disappear.
The IRS has released its list of inflation-adjusted tax amounts for 2014. The list includes tax rate tables for estates, trusts and various filing statuses, standard deduction amounts, personal exemption amounts, AMT exemption, and gift tax annual exclusion. Below is a full list of the items from the IRS:
The tax items for tax year 2014 of greatest interest to most taxpayers include the following dollar amounts.
Details on these inflation adjustments and others not listed in this release can be found in Revenue Procedure 2013-35, which were published in Internal Revenue Bulletin 2013-47 on Nov. 18, 2013.
As the holiday season is upon us, this time of the year we find ourselves answering lots of questions from grandparents who want to use holiday gifts to help pay for or contribute to their grandchildren’s college education. The queries always revolve around one simple theme— how do I maximize my tax advantages when paying for my grandchild’s college expenses? There are a few options to consider and definitely some dos and don’ts. Our own Kelly Roberts has authored a nice piece on the subject that was featured in Carolina Business Connection. Read more HERE.
The North Carolina General Assembly recently enacted House Bill 998 which will affect individual taxes beginning on or after January 1, 2014. (These changes will not affect the tax returns you file on April 15, 2014) The new law eliminates all personal exemptions for taxpayers, their spouse, children, or any other qualifying dependents. As a result, every employer must have all employees provide a new Employee’s Withholding Allowance Certificate, either Form NC-4 EZ or Form NC-4 so the correct amount of State income tax is withheld for any payment periods beginning on or after January 1, 2014.
Read all about it HERE.
The IRS is warning consumers about a very sophisticated phone scam that has been targeting taxpayers— especially recent immigrants— throughout the country.
Often using fake IRS badge numbers and names, the perpetrators inform victims they owe money to the IRS which must be paid immediately through pre-loaded debit cards or wire transfers. Victims who refuse are told they face arrest, deportation and/or suspension of business/driver’s license.
The IRS will never ask anyone for a credit card number over the phone. If consumers receive such a call, they should call the IRS at 1-800-829-1040 to verify any claims of money owed. They can also report the incident to the Treasury Inspector General for Tax Administration at 1-800-366-4484.
For more information, click HERE or call Scharf Pera & Co., PLLC at 704-372-1167.
This weekend (Friday 11/1 – Sunday 11/3) will mark the final weekend North Carolina shoppers can enjoy tax-free shopping on qualified Energy Star appliances. More details in this article from the Charlotte Observer.
As America continues to feel frustration over the current partial government shutdown, here are two good articles that let you know exactly what services the IRS can and cannot perform for the time being:
The failure of Congress to agree on a continuing spending resolution on Monday led to the first federal government shutdown since 1995–1996. The shutdown involves a large number of federal government functions, including many affecting taxpayers and tax practitioners.
According to the Journal of Accountancy, for starters, the shutdown brings a stop to all IRS taxpayer services, such as responding to taxpayer inquiries. During the shutdown, all IRS audits and examinations will stop. All non-automated collection activity will also stop. To find out more and how the shutdown affects you, click HERE.