Afternoon All,
I have been attending a few tax update seminars over the last week and a half.
Here is the tax information that you might be interested in.
Prior to the New Small Business Jobs Act of 2010
the penalty is $50.00 for each return with respect to such failure occurs during any calender year shall not exceed $250,000.00. As the result of the new legistration the $50.00 has increased to $100.00 and the $250,000.00 has increased to $1,500,000.00
This is for any 1099 MISC not mailed and postmarked by January 31, 2011 and recieved by your Drivers.
There are new penalties for late filing of you 1096/and 1099 red Copies of your 1099's. they must be Postmarked by February 28, 2011, These penaties all fall under IRS Code 6721
These penalties are for each 1099, not grouped as one. but for each.
Old Penalites
Tier 1 $30.00 per form and a $25,000.00 Max
Tier 2 $30.00 per form and a $50,000.00 Max.
Tier 2 $30.00 per form and a $75,000.00 Max
New
Tier 1 $30.00 per Form and a $250.000.00 Max
Tier 2 $50.00 per Form and a $500,000.00 Max
Tier 2 $ 100.00 per Form and 1,500,000,00 Max
No penalities if post marked by Feb. 28
Teir 1: all 1099's must be filed with the proper authorities with in 30 days and postmarked no later than March 28,
Teir 2 Any 1099's filed between March 28, and August 1.
Teir 3 Any 1099's filed after August 1.
The will start imposing these penalties in tax year 2011 for 2010 forms.
There are reduced penalties under the 30 day rule (T eir 1)
THE NEW STANDARD DEDUCTION RATES FOR MILEAGE FOR 2011 THESE MILEAGE RATES ARE EFFECTIVE JANUARY 1, 2011
BUSINESS MILES $ .51 CENTS PER MILE
MEDICAL MILES $ .19 CENTS PER MILE
MOVING MILES $ .19 CENTS PER MILE
CHARITABLE MILES $ .14 CENTS PER MILE.
THE PER DIEM RATE CHANGED OCTOBER 1, 2010 AND WILL REMAIN AT $59.00 PER DAY SUBJECT TO 80% OF THE TOTAL
THE DEPRECIATION RATE HAS CHANGED FOR 2010, AND 2011, IT IS $500.000.00 FOR NEW EQUIPMENT PLACED IN SERVICE DURING 2010. AND 2011
WHEN YOU PURCHASE NEW EQUIPMENT SUCH AS A NEW TRUCK, TRAILER OR ANY OTHER ASSET IT CAN BE COMPLETELY DEDUCTED IN THE YEAR IT WAS PURCHASED.
BUT MY ADVICE IS TO TAKE THE DEPRECIATION OVER THE YEARS ALLOWED, 3 5, 0R 7 YEARS THE REASON IS BECAUSE YOU MIGHT BE LIMITED TO HOW MUCH YOU ARE ACTUALLY ALLOWED AND CARRIED OVER TO THE FOLLOWING YEAR. pLUS IF YUOU TAKE THE FULL DEPRECIATION YOU HAVE NOTHING FOR THE FOLLOWING YEARS FOR DEDUCTIONS.
Franklin Katz, RTP, ATP ,PA, PB,
Frank’s Tax and Business Service
120 York Rd
Kings Mountain, NC 28086-3151
(704) 739-4039
Fax: (704) 739-3934
e-mail: [email protected]
Providing Professional Accounting Services and Income Tax Preparation
Circular 230 Disclaimer – Any tax advice in this communication (including any attachments) is not intended or written to be used, and cannot be used, by any taxpayer for the purpose of (1) avoiding tax related penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any transaction or tax-related matters addressed herein.
I have been attending a few tax update seminars over the last week and a half.
Here is the tax information that you might be interested in.
Prior to the New Small Business Jobs Act of 2010
the penalty is $50.00 for each return with respect to such failure occurs during any calender year shall not exceed $250,000.00. As the result of the new legistration the $50.00 has increased to $100.00 and the $250,000.00 has increased to $1,500,000.00
This is for any 1099 MISC not mailed and postmarked by January 31, 2011 and recieved by your Drivers.
There are new penalties for late filing of you 1096/and 1099 red Copies of your 1099's. they must be Postmarked by February 28, 2011, These penaties all fall under IRS Code 6721
These penalties are for each 1099, not grouped as one. but for each.
Old Penalites
Tier 1 $30.00 per form and a $25,000.00 Max
Tier 2 $30.00 per form and a $50,000.00 Max.
Tier 2 $30.00 per form and a $75,000.00 Max
New
Tier 1 $30.00 per Form and a $250.000.00 Max
Tier 2 $50.00 per Form and a $500,000.00 Max
Tier 2 $ 100.00 per Form and 1,500,000,00 Max
No penalities if post marked by Feb. 28
Teir 1: all 1099's must be filed with the proper authorities with in 30 days and postmarked no later than March 28,
Teir 2 Any 1099's filed between March 28, and August 1.
Teir 3 Any 1099's filed after August 1.
The will start imposing these penalties in tax year 2011 for 2010 forms.
There are reduced penalties under the 30 day rule (T eir 1)
THE NEW STANDARD DEDUCTION RATES FOR MILEAGE FOR 2011 THESE MILEAGE RATES ARE EFFECTIVE JANUARY 1, 2011
BUSINESS MILES $ .51 CENTS PER MILE
MEDICAL MILES $ .19 CENTS PER MILE
MOVING MILES $ .19 CENTS PER MILE
CHARITABLE MILES $ .14 CENTS PER MILE.
THE PER DIEM RATE CHANGED OCTOBER 1, 2010 AND WILL REMAIN AT $59.00 PER DAY SUBJECT TO 80% OF THE TOTAL
THE DEPRECIATION RATE HAS CHANGED FOR 2010, AND 2011, IT IS $500.000.00 FOR NEW EQUIPMENT PLACED IN SERVICE DURING 2010. AND 2011
WHEN YOU PURCHASE NEW EQUIPMENT SUCH AS A NEW TRUCK, TRAILER OR ANY OTHER ASSET IT CAN BE COMPLETELY DEDUCTED IN THE YEAR IT WAS PURCHASED.
BUT MY ADVICE IS TO TAKE THE DEPRECIATION OVER THE YEARS ALLOWED, 3 5, 0R 7 YEARS THE REASON IS BECAUSE YOU MIGHT BE LIMITED TO HOW MUCH YOU ARE ACTUALLY ALLOWED AND CARRIED OVER TO THE FOLLOWING YEAR. pLUS IF YUOU TAKE THE FULL DEPRECIATION YOU HAVE NOTHING FOR THE FOLLOWING YEARS FOR DEDUCTIONS.
Franklin Katz, RTP, ATP ,PA, PB,
Frank’s Tax and Business Service
120 York Rd
Kings Mountain, NC 28086-3151
(704) 739-4039
Fax: (704) 739-3934
e-mail: [email protected]
Providing Professional Accounting Services and Income Tax Preparation
Circular 230 Disclaimer – Any tax advice in this communication (including any attachments) is not intended or written to be used, and cannot be used, by any taxpayer for the purpose of (1) avoiding tax related penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any transaction or tax-related matters addressed herein.