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Short Takes | |
Visit the OATC website members section for the June 2012 Executive Council and Annual Meeting minutes, OATC Bylaws and OATC SOPs. Call the office at 503-726-0100 for login and password information.
You can also edit your member information in this section. Call the OATC office for the exact directions on how to edit your listing.
Most of the Group Services orders are in and available for pickup. Contact your chapter representative for details. Quickfinders, The Tax Book, and other are still pending for delivery. |
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Oregon News
DECEMBER 2012 |
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PRESIDENT'S MESSAGE
Where has the year gone? As we rapidly approach the holidays I wish all of you a wonderful holiday season and hope your year has been happy and prosperous.
The state Update class is almost over, but you still have time to attend the last couple classes on the 21st in either La Grande or Metro South. Reviews for the classes have been excellent.
Group orders for supplies have gone out with mostly books such as The Tax Book and Quickfinder left for distribution. Linda, our Office Manager, has done a wonderful job in compiling items for purchase, ordering, sorting, and sending out your orders. We are also indebted to all the chapter volunteers in coordinating and distributing supplies. If you wish to add to the list for next year please let Linda know. We are open for suggestions.
We are also looking for members who are interested in supporting OATC any way you are able. Volunteers are needed as contact people to sign in seminar attendees, chapter officers, state officers, and committee members. There are numerous opportunities for you to participate in your organization. There are also numerous opportunities for you to benefit from your participation. I hear frequently from volunteers who express the things they have gained as a result of contributing their time and expertise.
I hope you enjoy the remaining days of 2012 and look forward to seeing you at chapter and state events.
~Vickie Hull |
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CAF OUTAGE PLANNED DEC. 26 - JAN. 2
The Centralized Authorization File system or CAF will be unavailable beginning Wednesday, Dec. 26 at 6 a.m. EDT through Tuesday, Jan. 2 at 6:30 a.m. for routine maintenance. Since the Transcript Delivery Service and Disclosure Authorization systems use the CAF to validate authority to act on behalf of a taxpayer, these systems will also be disabled from Dec. 26 through Jan. 2.
Please plan to request transcripts through e-Services' Transcript Delivery Service or new Form 2848, Power of Attorney and Declaration of Representative or Form 8821, Tax Information Authorization, through the Disclosure Authorization system, no later than midnight, Dec. 25, or hold your requests until systems are restored on Jan. 2.
If you need to contact the IRS for help with a client and you have an established power of authority on file, be prepared to provide a faxed copy of that authorization. Our Customer Service Representatives will not have access to the CAF and will have limited research capability during the outage. New authorizations submitted for this purpose will be forwarded to the CAF for processing. You will not need to re-submit it through the Disclosure Authorization function of e-Services.
Please contact the Practitioner Priority Service at 866-860-4259 if you have questions.
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FREE STATE/IRS POWER POINT FOR TRAINING
The State of Oregon and the Internal Revenue Service are partnering to offer small business organizations a FREE State/IRS power point with notes that you can use for small business training or employee training. The information is current for 2012.
The power point is entitled Worker Classification and Federal/State Treatment of Employees and Independent Contractors. The information contained in this power point is targeted to new and start up businesses as well as those businesses considering taking on new workers as either employees or independent contractors.
This training will provide an understanding of the differences in State and Federal laws relating to Independent Contractor vs. Employee determinations in order to avoid costly fines and penalties from both agencies. It also provides detailed information on the Federal and State treatment of both employees and independent contractors.
In return, all we ask is that you tell us how the power points will be used, i.e., for your employees' education or for a small business training, along with the numbers receiving the training and when. Both IRS and the State can help you advertise your training to enhance the attendance. With timely notice, IRS can post your training on IRS.gov under Oregon Workshops, and can include the training in Monthly Event Updates and Headliners to stakeholders in Oregon. The State can include the training in the States Payroll Tax News. |
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EDUCATION OPPORTUNITIES
OATC Update 2012 - December 21, Peter Bunce in La Grande and Robert Betts in Wilsonville at Metro South
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WHAT TO EXPECT FOR REFUNDS IN 2013
The IRS issued more than 9 out of 10 refunds to taxpayers in less than 21 days last year. The same results are expected in 2013. Even though the IRS issues most refunds in less than 21 days, it's possible your tax return may require additional review and take longer.
Use http://www.irs.gov/Refunds to Check the Status of Your Refund.
Where's My Refund? has a new look for 2013! The tool will include a tracker that displays progress through 3 stages: (1) Return Received, (2) Refund Approved and (3) Refund Sent.
You will get personalized refund information based on the processing of your tax return. The tool will provide an actual refund date as soon as the IRS processes your tax return and approves your refund. Remember, most refunds will be issued in less than 21 days.
In 2013 you will be able to start checking on the status of your return sooner - within 24 hours after we have received your e-filed return or 4 weeks after you mail a paper return. |
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STANDARD MILEAGE RATES FOR 2013
R-2012-95, Nov. 21, 2012
WASHINGTON - The Internal Revenue Service today issued the 2013 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
Beginning on Jan. 1, 2013, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
- 56.5 cents per mile for business miles driven.
- 24 cents per mile driven for medical or moving purposes.
- 14 cents per mile driven in service of charitable organizations.
The rate for business miles driven during 2013 increases 1 cent from the 2012 rate. The medical and moving rate is also up 1 cent per mile from the 2012 rate.
The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs.
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for more than four vehicles used simultaneously.
These and other requirements for a taxpayer to use a standard mileage rate to calculate the amount of a deductible business, moving, medical, or charitable expense are in Rev. Proc. 2010-51. Notice 2012-72 contains the standard mileage rates, the amount a taxpayer must use in calculating reductions to basis for depreciation taken under the business standard mileage rate, and the maximum standard automobile cost that a taxpayer may use in computing the allowance under a fixed and variable rate plan.
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DON'T FALL FOR PHONY IRS WEBSITES
The IRS warns consumers about a new tax scam that uses a website that mimics the IRS e-Services online registration page. The actual IRS e-Services page offers web-based products for tax preparers, not the general public. The phony web page looks almost identical to the real one. The IRS gets many reports of fake websites like this. Criminals use these sites to lure people into providing personal and financial information that may be used to steal the victim's money or identity. |
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IRS PROCEDURE
IRS Issues Guidelines for Reducing Frivolous Tax Submission Penalty: In Rev. Proc. 2012-43, the IRS describes the limited circumstances in which a person may be eligible for a one-time reduction of any unpaid penalties under Code Sec. 6702 for a frivolous tax submission. The revenue procedure also describes how a person may request a reduction and the eligibility requirements for reduction. Generally, if a person satisfies all eligibility criteria, including filing all tax returns and paying all outstanding taxes, penalties (other than under Code Sec. 6702) and related interest, the IRS will reduce all unpaid Code Sec. 6702 penalties assessed against that person to $500. [Code Sec. 6702].
INCOME TAX UNCERTAINTY & CONGRESS SAYS...
The Fiscal Cliff defined - Major policy deadlines requiring across the board cuts in discretionary spending including defense and entitlements unless Congress agrees on a budget, the federal debt limit, and government funding which expires on May 27, 2013.
Looming expirations - 2001-2003 tax cuts and payroll tax relief, Estate and Gift tax rates and exemptions, AMT patch, increased rates on capital gains and dividend income.
Affordable Care Act - expected to be fully implemented, including two new taxes on high income invividuals of .9% and 3.8% for Medicare taxes effective January 1, 2013.
The news changes daily so we can only wait and see as we approach the new year.
INTEREST RATES REMAIN THE SAME FOR THE 1ST QUARTER 2013
The Internal Revenue Service today announced that interest rates will remain the same for the calendar quarter beginning Jan. 1, 2013. The rates will be:
- three (3) percent for overpayments [two (2) percent in the case of a corporation];
- three (3) percent for underpayments;
- five (5) percent for large corporate underpayments; and
- one-half (0.5) percent for the portion of a corporate overpayment exceeding $10,000.
FAX NUMBERS FOR CAF UNITS CHANGED
The fax numbers for sending Forms 2848 and 8821 to the Campus CAF Units are:
- Ogden 855-214-7522
- Memphis 855-214-7519
Continue to fax international POA forms to Philadelphia, (267) 941-1017.
PROPOSED REGULATONS ISSUED ON ADDITIONAL MEDICARE TAX
A new Additional Medicare Tax goes into effect starting in 2013. The 0.9 percent Additional Medicare Tax applies to an individual's wages, Railroad Retirement Tax Act compensation, and self-employment income that exceeds a threshold amount based on the individual's filing status.
The threshold amounts are:
* $250,000 for married taxpayers who file jointly,
* $125,000 for married taxpayers who file separately, and
* $200,000 for all other taxpayers.
An employer is responsible for withholding the Additional Medicare Tax from wages or compensation it pays to an employee in excess of $200,000 in a calendar year.
The IRS and the Treasury Department have issued proposed regulations on the Additional Medicare Tax. Comments may be submitted electronically, by mail or hand delivered to the IRS. For additional information on the Additional Medicare Tax, see our questions and answers. |
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FROM THE EDITOR
We are pleased to report our experience with the new newsletter format and association with Constant Contact has been very favorable. Not only is distribution a breeze, the ease of maintaining the email list has been wonderful. Recipients have the ability to add themselves to the distribution list as well as opt out.
Chapters also have the option of using the service for their chapter newsletters or other emails. Members' email addresses are already registered and sorted by chapter affiliation. All you have to do is create your email and choose the distribution list. Please contact Linda at the state office, or me, for more information.
Best wishes for wonderful holiday season, Susan High
Oregon Association of Tax Consultants Newsletter Editor __________________________________________________________ |
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