Dec 232011
 
New Form 1099 Rules For 2012

The IRS will implement new rules in 2012 that will likely affect most businesses.  Changes have been made to the reporting rules for IRS form 1099, the form used to report various types of income other than wages, salaries, and tips (for which Form W-2 is used instead).  This form generally applies to independent contractors and business suppliers, and does not affect those who are full-time employees. The new regulations will require the issuance of 1099 forms for nearly all payments over $600 to a business’ suppliers, not just those payments made to independent contractors.  This includes items like commissions, More…

Dec 142011
 
IRS Releases 2012 Standard Mileage Rates

The IRS has released Notice 2012-1, which details the standard mileage rates taxpayers should use in 2012.  Taxpayers may use the optional standard mileage rates to calculate the deductible costs of operating an automobile for business, charitable, medical, or moving expense purposes. •    For business use of an automobile, the standard mileage rate for transportation or travel expenses remains at 55½ cents per mile. •    For gratuitous automobile services rendered to a charitable organization under § 170, the standard mileage rate is 14 cents per mile. •    For automobile use incurred as a result of medical expenses under § 213 More…

Dec 012011
 
End Of The Year Tax Planning - GRATs

With interest rates continuing to hold at near record lows, now is the time to consider adding a GRAT to an estate plan.  A Grantor Retained Annuity Trust (GRAT) is an estate planning technique based primarily on interest rate assumptions.  It utilizes a trust that is set to exist for a specific number of years and then terminate when the term ends.  The GRAT is funded using assets that are considered likely to appreciate in value at a rate greater than that projected by the IRS, which for GRATs established in December is 1.6%.  Essentially, the GRAT mechanism allows capital More…