December 13, 2011

On Friday the Internal Revenue Service released standard mileage rates for 2012 (Notice 2012-1).  For business use of an automobile the rate remains at 55.5 cents per mile.  For medical or moving expenses, the rate decreases to 23 cents per mile.  For services to charitable organizations, the rate is 14 cents per mile.   

 

Withholding Repeal & Job Creation Act

December 11, 2011

On November 21, 2011, the President signed the 3% Withholding Repeal and Job Creation Act that repealed the withholding requirement under IRC Sec. 3042(t) on government contractor payments that is to take effect after 2012 and add a one-year extension through 2012 to the Work Opportunity Tax Credit under IRC Sec. 51 for hiring qualified veterans. 

 

Small Business Healthcare Credit

December 10, 2011

The Treasury Inspector General for Tax Administration (TIGTA) reported a lower than expected volume of taxpayer claims for the credit under IRC Sec. 45R available to small employers providing health insurance coverage to employees.  Despite IRS outreach efforts, fewer than 230,000 taxpayers had claimed the credits as of May 2011.