So I just deducted $20,000 in entertainment costs. 

What are my chances of getting audited?

Wait a minute - you had $20,000 in entertainment and you never asked Gary and Mike to dinner?

The IRS has just announced the audit rates for 2012, and - good news - budget cuts have resulted in the lowest rate of audits since 2007.

About 10.85% of those of you who earned more than $1 million a year were audited last year.

About 3.26% of those of you who earned more than $200,000 per year received one of those nasty IRS audit notices, and only 0.88% of you who made under $200,000 heard from the IRS.

And remember - if you get one of those charming notices from our friends at the Internal Revenue Service or Franchise Tax Board, contact us as soon as possible.

PLEASE don't ignore notices from the Internal Revenue Service and California Franchise Tax Board!! 

I just celebrated my 85th birthday. 

When do I no longer have to file tax returns?

Congratulations!

We should have sent a card, but we're sad to report that no matter how old you get, 

you are always subject to tax on your income. 

And, of course, you certainly don't look 85!

I need to look presentable at work and when I visit clients.  I can deduct the cost of my suits, right?

 Gary and Mike once had a suit; actually, we didn't phrase that right. EACH of us actually had a suit but suits are - apparently - illegal in Hermosa Beach so now we wear shorts.

That being said, needing to look good doesn't mean you can deduct the cost of your suit or whatever 

you might wear to work.

Only work-related uniforms for very specific occupations are deductible. Gym memberships, health foods, or spa memberships may be great for your business mindset, 

but they are never deductible.

I'm retiring in a few years because I just don't understand these new computers and electronic gadgets. 

Can you tell me what my Social Security 

payments might be?

Wow - did you come to the right place for that answer!

The Social Security Administration has JUST announced that, starting this September, they will resume mailings of your Social Security benefit statements. Those forms provide a glimpse of what you have paid and what your benefits might be upon retirement. 

They'll be mailed when you turn -

25, 30, 35, 45, 50, 

55 and 60.

Now, of course, you can always try to master that tricky internet and visit the Social Security Administration website to get the same information a bit more timely, but you have a new option.

Anything new this year?

 Well, let's get serious with this question by talking US Tax Court decisions and IRS proposed regulations.

Following a US Tax Court decision this year, the IRS has indicated that they will follow the Tax Court ruling regarding rollovers of Individual Retirement Accounts.

It is important to distinguish a rollover from a direct transfer. A rollover is a transaction where you take possession of the funds from an IRA and replace those funds in the IRA or a new qualified plan within 60 days. 

A taxpayer will now be restricted to ONE such transaction within a 12-month period beginning on the date of the withdrawal. The number of direct transfers between custodian/trustees of IRAs or qualified plans (where the taxpayer never receives any funds) remains unrestricted.

Wow - you sound like you know what 

you are talking about.

Is there anything else new? 

We've often written about the Internal Revenue Service and US Treasury rules regarding foreign bank accounts. 

Those of you with those foreign bank accounts likely know that you previously had to file the so-easy-to-remember Form TD F 90-22.1 with the US Treasury by June 30th of each year. This form detailed those foreign bank accounts you owned or had signature authority over.

Well, the Treasury has trashed those 90-22.1 forms and replaced them with the new (but not necessarily improved) 

FIN CEN 114.

(We actually don't remember FIN CEN 1 thru 113 

but that's not important).

The FIN CEN 114 is due June 30th and you MUST file this electronically so consider visiting the website

 http://bsaefiling.fincen.treas.gov/main.html 

to get started.

And to demonstrate how serious the US Treasury takes this, 

note that you are filing on the

Financial Crimes Enforcement Network website!

Remind me again - what are the mileage rates for 2014?

The 2014 mileage rate for business is 56 cents, for medical or moving is 23.5 cents, and for charity driving is 14 cents.

I'd like to come by and see Gary and/or Mike tomorrow.

Would 9am be good?

Gary and Mike are much easier to reach this time of year, but please give us several days notice if you want to schedule an appointment, and PLEASE try to provide us with your tax information no later than September 30th if you want us to complete your extended returns before the 

October 15th deadline.

  I'm getting married!

I'm inviting all of my office mates and my clients so I can deduct everything, right?

Congratulations to both of you.

We'll not spoil the moment by talking about the marriage tax penalty, but we do want you to know that having clients attend a non-professional event - whether it's your wedding, birthday or your child's birthday - does not make it deductible. 

Remind me how I unsubscribe to these rambling and pointless emails?

 Okay, Mike and Gary CAN ramble - unsubscribe if you must by visiting the very bottom of the page but if you have read this far, you may as well just keep reading 

and keep subscribing.

 Are there any new faces at Wayland & Vukadinovich?

 You're not saying we have old faces, are you? Mike and Gary are very sensitive about their age!

Well, we do have a new staff accountant - Emily Yamate. 

She's working on our tax staff and was invaluable during this past tax season.

How often do you send these emails to us?

We can only summon enough energy and information to send emails to you monthly.

Remember, we're here all year - contact us if you have questions and perhaps we'll use it in a future email!