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IRS Installment Agreement Request -- Form 9465
Updated: July 02, 2011 :: 10:22 AM
For those of us who cannot pay Federal tax due by the due date of the return, this information may be helpful:

Form 9465 is used for requesting an installment agreement with the IRS. If you are able to pay the full amount within 120 days of the due date of the income tax return, consider not filing the form. Instead, you may call IRS at 1 800 829-1040 to state your intent to pay in full or go to www.irs.gov, using the menu item under \"I need to..\" and select \"Set up a payment plan\".

If you cannot pay your tax within 120 days, you may file Form 9465 Installment Agreement Request. If you haved not failed to file any prior tax returns, not failed to pay prior tax, are able to pay your tax within 3 years, and your tax due is $10,000 or under (among other requirements), the IRS is required to enter into an installment agreement with you. There is a fee of $105 for standard agreement; alternatively a $52 fee for direct debit agreements. Lower income levels can qaulify for a reduced fee of $43.

If you owe more than $10,000 but less than $25,000, you can still enter into an installment agreement. You must be able to pay your tax within 60 months, or 5 years.

With any plan to pay tax after the due date of the return, interest and penalties will apply, plus the fee for establishing the payment plan.

For unpaid tax liabilities that exceed $25,000 and cannot be paid within 5 years, an Offer in compromise may be an option.

New penalties for S-Corporations filing late
Updated: March 13, 2011 :: 09:36 AM
S Corporations that fail to file timely under IRS Sec. 6037 face a penalty for 2010 returns, of $195 per shareholder, per month (for a maximum of 12 months), unless the corporation can show reasonable cause. Arizona has also provided a penalty for Forms 120S and 165: $100 for each month for failure to file, up to a maximum penalty for late filing of $500.
IRS Announces revised mileage rates for 2012
Updated: January 02, 2012 :: 10:48 AM
The Internal Revenue Service revised the 2012 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. The standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
  • 55.5 cents per mile for business miles
  • 23 cents per mile driven for medical or moving purposes
  • 14 cents per mile driven in service of charitable organizations
    • W-2 Reporting for Cost of Employer-Provided Health Coverage for 2012
    Updated: January 02, 2012 :: 10:48 AM

    For 2012, an employer may elect to disclose on the annual Form W-2 the value of employee health insurance coverage sponsored by the employer.

    The value of of the coverage is found by calculating the applicable premiums for the tax year under the rules for COBRA continuation coverage under Code Sec. 4980B(f)(4)and accompanying regulations. The amount calculated does not affect the employee tax liability.

    HSA contribution limits for 2012
    Updated: January 02, 2012 :: 10:47 AM
    These yearly limits are for the savings accounts established as a part of high deductible health insurance policies that qualify as HSAs:
  • Individuals $3,050
  • Families $6,150

    The catch-up amount for taxpayers 55 years of age or older is unchanged at $1,000.

    The penalty for non-medical withdrawals from an HSA savings account is 20%.

    • Vehicle Donations
    Updated: October 10, 2008 :: 12:11 PM
    Congress limited the deduction for vehicles contributed to charity. The amount of the deduction will depend on how the doner organization uses the vehicle. If the charity sells the vehicle without using the vehicle in any significant way, the amount of the charitable deduction cannot exceed the gross proceeds from the sale. The taxpayer also must produce an acknowledgment as to value from the charity if the charity keeps the vehicle for it own use.
    Tax time is here again
    Updated: January 02, 2012 :: 10:51 AM
    Yes, it is that time of the year once again where we are heading into the tax filing season. Many tax provisions are expiring after December 31, 2012 unless the Congress makes changes along the way. This is the time to take care of 2011 returns while planning for uncertainties after 2012. Watch for late breaking tax changes that will affect you in 2013 and after.