P. O. Box 284
Charleston, WV  25321
(304) 342-4441

Newsy Bits 

"There are two things in life that are inevitable - death & taxes"

"Maybe death and taxes are inevitable,
 but death doesn't get worse every time Congress meets."

Newsy Bits List

	UPDATED
2010 Mileage Rates	12-07-09
Where to Mail Returns and Forms for 2009	12-07-09
IRS Revenue Procedure 2006-41	10-01-06
SUTA Rate Reminder for 2010	12-07-09
Pay Online Contact Info	N/A
Request Transcripts Online via e-services	N/A
Apply for EINs online	N/A
"Where's My Refund?" info online	N/A

 

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IRS Revenue Procedure 2006-41

IRS Revenue Procedure 2006-41 provides rules for employees who are reimbursed for lodging, meals, and incidental expenses, or meals and incidental expenses only, while traveling away from home to substantiate the expenses by per diem allowance in lieu of actual expenses. It also provides an optional method for employees and self-employed individuals who are not reimbursed to use in computing the deductible costs paid or incurred for business meal and incidental expenses, or for incidental expenses only if no meal costs are paid or incurred, while traveling away from home. Use of a method described in this revenue procedure is not mandatory, and a taxpayer may use actual allowable expenses if the taxpayer maintains adequate records or other sufficient evidence for proper substantiation. It will be in IRB 2006-43 dated October 23, 2006.
 

Download a PDF copy of the Revenue Procedure

REMINDER: UPDATE THE SUTA RATES IN YOUR PAYROLL PROGRAMS

New WV SUTA rates go into effect January 1, 2010.

MILEAGE RATES ADJUSTED FOR 2010

The chart below outlines the changes in the Federal standard mileage rates for different types of travel. 

*In 2005, Congress also approved special rates in connection with miles driven in service of charities providing Hurricane Katrina relief.

For the period Aug. 25 to Aug. 31, 2005, the rate for miles driven for charities providing Hurricane Katrina relief is 29 cents, for deduction purposes, and 40.5 cents, for reimbursement purposes. For the months of September through December 2005, the special Katrina-related rates are 34 cents for deductions and 48.5 cents for reimbursements.

For 2006, these Katrina-related charitable rates will be 32 cents per mile for deduction purposes and 44.5 cents per mile for reimbursement purposes.

Revenue Procedure 2005-78 contains additional information and limitations on the use of the standard mileage rates.

Link: Revenue Procedure 2005-78

The business standard mileage rate may not be used to compute the deductible expenses of an automobile for which the taxpayer has (a) claimed depreciation using a method other than straight-line for its estimated useful life, (b) claimed a  §179 deduction, (c) used the Accelerated Cost Recovery System (ACRS) under former  §168, or used the Modified Accelerated Cost Recovery System (MACRS) under current §168. By using the business standard mileage rate, the taxpayer has elected to exclude the automobile (if owned) from MACRS pursuant to  §168 (f)(1). If after using the business standard mileage rate, the taxpayer uses actual costs, the taxpayer must use straight-line depreciation for the automobile's remaining estimated useful life (subject to the applicable depreciation deduction limitations under  §280F.)

PAY BY CREDIT CARD

OFFICIAL PAYMENTS CORPORATION

Taxpayers may  make their PERSONAL

• 1999-2008 personal income tax balance due payments
• 2006-2008 Advance Payment of a Determined Deficiency
• 1998-2008 Installment Agreement Payments
• 2009 Form 4868 extension payments
• 1999-2008 Trust Fund Recovery Penalty
• 2009 Form 1040ES payments via credit card.

Taxpayers may make their BUSINESS Payments

• Form 940 Employer's Annual Federal Unemployment Tax
  • Balance Due 2008
  • Prior Tax Years 1999-2007
  • Installment Agreement Payments 1999-2008
• Form 941 Employer's Quarterly Federal Tax Return
  • Balance Due Current Quarter
  • Prior Years Quarters 1999-2009
  • Installment Agreement Payments 1999-2008
  • Amended or Adjusted Balance Due 2006-2009
• Form 943 Employer's Annual Federal Tax Return for Agricultural Employees
  • Balance Due 2008
  • Prior Tax Years 1999-2007
  • Installment Agreement Payments 1999-2008
  • Amended or Adjusted Balance Due 2006-2009
• Form 944 Employer's Annual Federal Tax Return
  • Balance Due 2008
  • Prior Years Quarters 2006-2007
  • Amended or Adjusted Balance Due 2006-2008
• Form 945 Annual Return of Withheld Federal Income Tax
  • Balance Due 2008
  • Prior Tax Years 1999-2007
  • Installment Agreement Payments 1999-2008
  • Amended or Adjusted Balance Due 2006-200

WEST VIRGINIA PAYMENTS ACCEPTED:

• West Virginia State Tax Department
• Beckley Sanitary Board
• Kanawha County Sheriff's Tax Division
• Lavalette Public School District
• Ronald McDonald House Charities
• Wood County Chief Tax Deputy
• Wood County Clerk

Virtually all of the above are available to pay on www.pay1040.com except WV payments.

The only credit cards that are accepted at this time are VISA, American Express, Discover, and MasterCard.  There is a convenience fee charged by the service providers. The convenience fee on business tax payments is tax deductible.

What labels do we have to print for 2009 Returns?

The following "Where to File" addresses are to be used
ONLY BY INDIVIDUAL TAXPAYERS MAILING THEIR OWN
individual federal tax returns in West Virginia for Calendar Year 2009.

If your client is a "BUSINESS" (defined as Schedule C, C-EZ, E, F attached - see next chart)

The first 2 lines of the address should be:   Department of the Treasury
                                                                 Internal Revenue Service

The following "Where to File" addresses are to be used
 ONLY by BUSINESSES filing THEIR OWN returns and
 TAX PROFESSIONALS mailing individual federal tax returns FOR THEIR CLIENTS
in West Virginia during Calendar Year 2009.

The first 2 lines of the address should be:   Department of the Treasury
                                                                 Internal Revenue Service

(Apparently, if there is no payment involved, the IRS doesn't care who is actually mailing the return, because the addresses are the same for each type of return. However, if there is an enclosed payment,
 it makes a difference which PO Box receives it, depending upon who mails it. Go figure.)
 

REQUESTING TAXPAYER TRANSCRIPTS

Tax professionals have three easy and convenient options for requesting copies of your clients’ federal tax return information – tax return transcripts and tax account transcripts – online or by mail or by phone. If they have your power of attorney or other authorization on file, you can download a transcript or if requested by phone, they will mail the transcript directly to you.

Online - Register with IRS e-services.

Phone - Call the IRS Practitioner Priority Service (PPS) toll-free at 866-860-4259 and follow the recorded prompts to use the automated system or to speak to an IRS representative. For more than 10 requests, use Form 4506.

Mail – fill out and have your client sign Form 4506 and mail it to the address in the instructions.

For more information and an explanation of the different types of transcripts, go to www.irs.gov

APPLY FOR EINS ONLINE

June 13, 2003

This online process eliminates the need to send paperwork to the IRS as well as the delay in issuing a number that may result from an incomplete application form. Once a business has its EIN, it can file tax returns and may enroll in the Electronic Federal Tax Payment System to handle its payments most efficiently. 

Businesses do not need to pre-register before requesting an EIN. The number issued is the permanent EIN for the business, unless the IRS finds that it has already issued an EIN for that business or if the principal officer’s name and social security number do not match Social Security records. In such cases, the IRS will void the number issued through the Web site and notify the business.

An accountant or tax preparer may use the Web site to request EINs on behalf of clients. The taxpayer must sign a copy of the Form SS-4 and a statement authorizing the representative to receive the number online. The representative must keep both documents on file. The Web site describes the elements required for an authorization statement , which a preparer may print out for the client to sign.

The online application process is not available to some EIN requestors, including federal, state or local government agencies, Indian tribal governments, real estate mortgage investment conduits, and taxpayers with addresses outside the 50 States.

Businesses may still obtain EINs by telephone at 1-800-829-4933 from 7:30 a.m. to 5:30 p.m. (local time), or by mailing or faxing Form SS-4, as provided in the form’s instructions. 

REFUND INFORMATION NOW ON-LINE

The IRS has an Internet-based service that provides a quick, easy and safe way to check the status of federal tax refunds. The service is called “Where’s My Refund?” and it’s available on the IRS website.

The “Where’s My Refund?” service meets stringent IRS security and privacy certifications. Once the Social Security Number, filing status and the exact amount of the refund is entered, the information is processed. Results can include one of several responses:

• That a return was received and is in processing;

• The mailing date or direct deposit date of the taxpayer’s refund; or

• Whether a refund has been returned to the IRS because it could not be delivered.

Refund information is also available by calling the automated refund service
 at 1-800-829-4477 or by using the new IRS refund hotline at 1-800-829-1954.

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