Padgett Business Services

When an employer provides an employee with a cell phone primarily for non-compensatory business reasons, the business and personal use of the cell phone is generally non-taxable to the employee.  The IRS will not require recordkeeping of business use in order to  receive this tax-free treatment. The IRS announced a similar administrative approach that applies to small businesses that provide cash [...]

Beginning January 1st 2012, the standard mileage rates for the use of a car will be: 55.5 cents per mile for business miles 23 cents per mile driven for medical / moving 14 cents per mile charitable service

Sole Proprietors: You will need a new EIN if you are subject to a bankruptcy, if you incorporate, take partners or operate as a partnership, or if you purchase or inherit an existing business that you operate as a sole proprietorship.  You will not need a new EIN if you change the name of your business, change your [...]

As the year comes to a close, you may find that the amount of tax withheld from your salary or paid in estimated tax vouchers isn’t enough to cover your required estimated tax payments.  Increasing your 4thquarter estimated tax payment will not avoid penalties, since these payments are applied in installments.  You may avoid the penalty [...]

Thanks to legislation enacted at the end of 2010, tax rates are stable for 2011 & 2012. These include ordinary income tax rates for individuals which are 10, 15, 25, 28, 33 and 35 percent; capital gains rates are zero and 15 percent.  However, not all is quiet on the tax front despite no dramatic rate changes [...]

The regular tax laws give special treatment to some types of income, allow special deductions for some types of expenses, and allow credits for certain taxpayers. Taxpayers who are not required to pay tax under the regular tax system may still be liable for tax under the AMT laws. According to the IRS, these laws create an “equity” [...]