Tax Guru – Ker$tetter Letter

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Archive for December, 2019

IRS Mileage Rates For 2020

Posted by taxguru on December 31, 2019

A few weeks later than has usually been the case, IRS just today released its standard mileage rates for vehicle usage in 2020.  While these rates won’t be used on actual tax returns until more than a year from now, most businesses use the official IRS rates for charging customers and for reimbursing employees; so this is very relevant information for immediate use.

Beginning on January 1, 2020, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

  • 57.5 cents per mile driven for business use, down one half of a cent from the rate for 2019,
  • 17 cents per mile driven for medical or moving purposes, down three cents from the rate for 2019, and
  • 14 cents per mile driven in service of charitable organizations.

IRS Press Release: IRS issues standard mileage rates for 2020

I long ago gave up on ever understanding why IRS and the tax writers in Congress believe that vehicles cost less to operate when used for charity, medical or moving.  Like many aspects of tax law, we just have to accept it as gospel because our Rulers in DC consider themselves to be so much wiser than we “normal” little people are.

Posted in IRS, Vehicles | Comments Off on IRS Mileage Rates For 2020

Liberty Tax Service Busted By Feds

Posted by taxguru on December 12, 2019

Since they cater to a completely different kind of clientele than we work with, I haven’t made much effort to keep up with the latest workings of the big assembly line tax prep services.

While the long held stereotype for H&R Block has been that they don’t work as hard to use all of the tricks of the trade to legally minimize taxes for their clients, I had no idea that the guys who pay people to stand on street corners in Statue of Liberty costumes have had an established corporate culture of preparing fraudulent tax returns, as described in this recent news release from the U.S. Dept of Justice:

Justice Department Announces Settlement With Liberty Tax Service

With this heavy scrutiny on their tax prep practices, we can only guess as to how much longer they can stay in business.

It will also be very interesting to see if any of the other big assembly line tax prep services mention these legal problems that Liberty has been having in their ads.  That market is very competitive, so it is entirely possible that one or more of the other companies will contrast themselves as being free of this kind of scandal and government investigation.

 

 

Posted in Fraud, preparers | Comments Off on Liberty Tax Service Busted By Feds