Tax Records

The IRS is responding to a new scam by sending out letters to a random selection of taxpayers. If you receive a “Letter 6018” from the IRS, here’s what you need to know. Scammers are using phony disclosure authorization forms to request tax return transcripts from the IRS. These transcripts are then used to file a false return using the taxpayer’s identity. If the IRS has received a disclosure authorization form regarding your tax account, you may receive a letter asking

Updated travel per diem rates go into effect October 1. To simplify recordkeeping, they can be used for reimbursement of ordinary and normal business expenses incurred while employees travel away from home. Per diem advantages As long as employees properly account for their business-travel expenses, reimbursements are generally tax-free to the employees and deductible by the employer. But keeping track of actual costs can be a headache. With the per diem rates, employees don’t have

Rather than keeping track of the actual cost of operating a vehicle, employees and self-employed taxpayers can use a standard mileage rate to compute their deduction related to using a vehicle for business. But you might also be able to deduct miles driven for other purposes, including medical, moving and charitable purposes. What are the deduction rates? The rates vary depending on the purpose and the year: Business: 54 cents (2016), 53.5 cents (2017) Medical: 19 cents (2016), 17 cents

Keeping accurate track of your personal records is an important way to help organize your finances and ensure compliance. However, it can quickly become overwhelming. If you are flustered by the records you keep or throw out, it can lead to possible overlooked tax benefits. Don’t lose your head under stacks of receipts and paperwork! Instead, get the facts from Hogan-Hansen to ensure you’re ready when tax season hits. Q: Do I need to keep all of my receipts? A: The general rule