Monthly Archives: March 2016

IRS Releases Dirty Dozen Scam List: Don’t be a Victim

Each year, people fall prey to tax scams. That’s why the IRS sends a list of its annual “Dirty Dozen.” Stay safe and be informed – don’t become a victim.

Identity theft. Identity theft, especially around tax time, is at the top of the “Dirty Dozen” list again this year. The IRS continues to aggressively pursue criminals who file fraudulent returns using someone else’s Social Security number. The IRS is making progress on this front. Remain vigilant to avoid becoming a victim.

IRA FAQs – 2015 Contributions

How long do I have to make 2015 IRA contributions?

You can make 2015 IRA contributions until April 18, 2016, excluding extensions.

How much can I contribute to an IRA?

The contribution limit for 2015 and 2016 is $5,500, or $6,500 if you’re age 50 or older. Your Roth IRA contributions may also be limited based on your filing status and income. See IRA Contribution Limits.

2016 Standard Mileage Rates

As of Jan. 1, 2016, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) are:

  • 54 cents per mile for business miles driven, down from 57.5 cents for 2015
  • 19 cents per mile driven for medical or moving purposes, down from 23 cents for 2015
  • 14 cents per mile driven in service of charitable organizations

The business mileage rate decreased 3.5 cents per mile and the medical, and moving expense rates decrease 4 cents per mile from the 2015 rates. The charitable rate is based on statute.

Significant Tax Benefit: EITC

Millions of taxpayers who earned $53,267 or less last year may qualify for EITC for the first time in 2016, making awareness critical.

“One-third of the population eligible for EITC changes each year as their personal circumstances change,” said IRS Commissioner John Koskinen. “We want workers who may qualify for EITC for the first time to have all the information they need to get the EITC and get it right. This is an important credit for hard-working Americans, and one of the government’s best tools to fight poverty.”

Upcoming Tax Deadlines

March

Tu 15 Corporations: File Form 1120 for calendar year and pay any tax due. For automatic 6-month extension, file Form 7004 and deposit estimated tax.

Tu 15 S Corporations: File Form 1120S for calendar year and pay any tax due. Furnish a copy of Sch. K-1 to each shareholder. File Form 2553 to elect S Corporation status beginning with calendar year 2016. For automatic 6-month extension, file Form 7004 and deposit estimated tax.

Tu 15 Electing Large Partnerships: Furnish Sch. K-1 (Form 1065-B) to each partner.

Th 31 File Form 2290 and pay the tax for vehicles first used in February.

Th 31 File Form 730 and pay the tax on wagers accepted during February.

Th 31 Electronically file Forms W-2, W-2G, 1098, 1099, and 8027.