Cell Phones are a Tax Free Fringe

If an employer provides a cell phone for business reasons, the employee will not be taxed on the business or personal use of the phone. The employee will not have to keep a log of the business and personal calls.
Small business may want to provide cell phone to their spouse or children if they work for the company.
The same theory applies to health insurance assuming an employee/employer relation exist.

Hello to Leslie at the Bruce S concert.

Another Tax Form to Track Income

For 2011, credit and debit card companies will begin to issue 1099K forms on payments to merchants, and third party networks such as PayPal.
The IRS will begin matching the income on the tax return to spot discrepancies and under reporting.
We always appreciate the IRS helping us keep accurate records. At some point in the future, the IRS will already have your taxable information and will just send you a bill for the tax you owe!

Accounting Position Available

We are recruiting for one of our clients for an accounting position. This position is for a full charge general ledger person with extensive knowledge of Peachtree Accounting software. This is a full time position and salary will be based on experience.
Please fax a resume to 678-216-0617 or email danny@ptfs.biz.

Unemployment Compensation

Due to the second depression, many people still cannot find employment. So, you apply for unemployment compensation. This must be included in your income and it is TAXABLE.
You can have federal and state withholding taken out of the check.

New Business Mileage Rates

IRS has announced an increase in the optional mileage rates for the final six months of 2011.
Business rate is now 55.5 per mile;
23.5 for medical;
14 for charitable.
This is due to the higher gas prices - thank you IRS.

Business Meals and Entertainment Expenses

To deduct these expenses, the IRS indicates the taxpayer must establish that the expense was "ordinary and necessary" in carrying on the trade or business.
To substantiate the expense, the following information is necessary (1) The amount and description of each expense (2) the time and place (3) the business purpose of the activity and any business benefit (4) the nature of the business discussion (5)the business relationship to the person.

WOW - who is doing that?

I believe that the requirements would be met by retaining your receipt (1 and 2)and on the back write the purpose and benefit and the nature of the discussion and the business relationship (3,4,&5).
Attach these receipts to an expense report or a statement which should substantiate the expense.

Thanks Julie.