Tax Changes and Updates

Getting Your Records Together
The key to being compliant and correctly taking all of the deductions that you are entitled to is to have your information organized and available for consideration for input onto your tax return.  Following are some recommendations for getting your 2009 records pulled together.

IRS Hot Button Issues
IRS statistic:  61% of sole proprietors underreport net business income.
Revenue Ruling 56-407:  You must report all of your expenses.
Per the National Association of Enrolled Agents, the following are key audit categories:  gross receipts, costs of goods sold, auto expenses, supplies, meals & entertainment, rent, telephone and depreciation.

Mileage Rates
Here are the standard mileage rates for business use of your car.
2009 = 55 cents per mile
2010 = 50 cents per mile