We are pleased to annouce the merger of our firm. Baldwin & Associates, PLLC has merged with Christian, Sturgeon & Associates, PSC of London, Ky. to become Baldwin CPAs, PLLC. This union will bring a broader range of services and expertise, more talented people to work with and a wider geographic base with two offices. The staff at each office has not changed and as before, our address, phone and fax will stay the same. Please have patience with us during this transition and as we update the site.
Our firm believes that a well informed client is our best client. We know that there is a lot of information on the Internet and it can be tough to determine what is valuable. The following articles have been selected for your benefit. Please click on the article titles below to show the text.
IRS announces 2010 standard mileage rates
Beginning on Jan. 1, 2010, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
* 50 cents per mile for business miles driven
* 16.5 cents per mile driven for medical or moving
purposes
* 14 cents per mile driven in service of charitable
organizations
For details go to:
http://www.irs.gov/newsroom/article/0,,id=216048,00.html
Information courtesy of Mostad & Christensen, Inc.
The IRS has published facts about the tax deduction for tuition and fees that is available to help parents and students pay for post-secondary education. If you're facing college expenses this fall, here's what the IRS wants you to know.
* The deduction is up to $4,000 for single filers with adjusted gross income (AGI) of $65,000 or less and joint filers with an AGI of $130,000 or less. If income exceeds these amounts, the deduction drops to a maximum of $2,000 for an AGI up to $80,000 for single filers and $160,000 for joint filers. No deduction is allowed over these income thresholds.
* The deduction is "above the line," so you don't have to itemize to benefit.
* You can't take the deduction if your filing status is married filing separately.
* You can't take the deduction if you are claimed, or can be claimed, as a dependent on someone else's tax return.
* You can't claim the deduction if you or anyone else claims the American Opportunity or lifetime learning credit for the same student in the same year.
* The deduction can't be based on expenses paid with tax-free scholarship, fellowship, grant, or education savings account funds, tax-free savings bond interest, or employer-provided education assistance. This also applies to expenses paid with a tax-exempt distribution from a qualified tuition plan, except for expenses paid with the portion of the distribution that is a return of your contribution to the plan.
There are other tax breaks for college expenses, all with requirements and restrictions of their own. As you can see, the rules make planning necessary if you want to maximize your tax benefit for college costs. For help in identifying and utilizing the deductions and credits most beneficial in your situation, give us a call now.
nformation courtesy of www.irs.gov
It’s a moment many taxpayers dread. A letter arrives from the IRS — and it’s not a refund check. Don’t panic; many of these letters can be dealt with simply and painlessly.
Each year, the IRS sends millions of letters and notices to taxpayers to request payment of taxes, notify them of a change to their account or request additional information. The notice you receive normally covers a very specific issue about your account or tax return. Each letter and notice offers specific instructions on what you are asked to do to satisfy the inquiry.
If you receive a correction notice, you should review the correspondence and compare it with the information on your return.
• Agree? If you agree with the correction to your account, usually no reply is necessary unless a payment is due.
• Disagree? If you do not agree with the correction the IRS made, it is important that you respond as requested. Write to explain why you disagree. Include any documents and information you wish the IRS to consider, along with the bottom tear-off portion of the notice. Mail the information to the IRS address shown in the upper left-hand corner of the notice. Allow at least 30 days for a response.
Most correspondence can be handled without calling or visiting an IRS office. However, if you have questions, call the telephone number in the upper right-hand corner of the notice. Have a copy of your tax return and the correspondence available when you call to help us respond to your inquiry.
Be sure to keep copies of any correspondence with your records.
For more information about IRS notices and bills, see Publication 594, What You Should Know about the IRS Collection Process. Information about penalties and interest charges is available in Publication 17, Your Federal Income Tax. Both publications are available at IRS.gov or by calling 800-TAX-FORM (800-829-3676).
