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Show THE SAN JUAN RECORD Special Section Wednesday Business News Auto Depreciation Limited. The total section 179 and depreciation allowed on a car used in business and first placed in service in 1992 is $2,760. The depreciation cannot exceed $4,400 for the second year of recovery, $2,650 for the third year, and $1,575 for each later tax year. IRS Publication 917, Business Use of a Car, has details. January 27, 1993 Page 2 1 I tax, interest and penalties are still adding up. The IRS may waive some penalties if you can show a valid reason for not filing. Also, if you dont file a tax return and you owe social se- Preparers Fees Deductible. The Mileage Rates Announced. The standard milage rate per mile in 1992: Business 28 cents; rural mail carriers 42 cents; charitable 12 cents; medical ex9 cents; and, moving 9 cents. purposes penses Education Assistance Exclusion Limited. The employees exclusion from income of up to $5,250 of educational assistance provided by his or her employer under a quali- fied plan was extended beyond December 31, 1991. However, only amounts paid by the employer before July 1, 1992, qualify for the exclu- sion. Educational expenses are covered in IRS Publication 508. Group Legal Services Plan Exclusion Extended. Employees th work history to qualify you for social security benefits when you self-employ- ed cost of preparing that part of a tax return relating to the business as a sole proprietor or farmer is tax deductible as a trade or business expense on Schedule C (Form 1040) or as a farm business expense on Schedule F. For those who itemize deductions, any remaining costs can be claimed on Schedule A (Form 1040) as a personal expense. Also, a business deduction can be taken on Schedule C or F for the amount paid or incurred in resolving asserted tax deficiencies for a business. An exception to the waiting period for IRA rollovers was recently created. An IRA distribution from a failed financial institution that is made unilaterally by the Federal curity tax, you wont have a Health Insurance Deductible. Certain persons or persons who own more than 2 percent of the outstanding stock of an S corporation can deduct as an adjustment to income 25 percent of the amount paid for medical insurance they paid for themselves and their families. Only amounts paid before July 1, 1992, for insurance coverage for periods before that date will qualify. See IRS Publication 334, Tax Guide for Small Business, for more information. Involuntary Rollovers Not Taxed IRS Helps Ease Fears of Filing Deposit Insurance Corporation (FDIC) and the Resolution Trust Corporation (RTC) can be rolled over into another IRA, even if the retire. If nonfilers dont come The Internal Revenue Service faces a real challenge. They're looking for nonfilers; those millions of people who didnt file their required tax return for the past year or more. The IRS is appealing to nonfilers, offering special assistance and education programs, to get them back in the tax system with a clean slate. Here are a few answers to questions you may have to help ease your fear of filing. Q. I heard that the IRS is giving amnesty to people who havent filed a tax return in awhile. Can you tell me about it? A. The IRS is not offering an amnesty program, but it is encouraging nonfilers to come back into the tax system. The IRS realizes that people have many reasons for not filing, such as procrastination or not having the money to pay. The IRS will work with those people to help them with their overdue returns and explain the different payment options. Nonfilers are still expected to file all tax returns and pay any tax and interest that are due. Q. Why should I file now? A. For several reasons. Not filing is costing you more than you think. You may be due a refund that you could lose if you dont file within three years. If you owe forward voluntarily, they could face criminal charges. Q. What if I owe tax, but cant pay it? What are my payment options? A. If you cant pay the entire amount, you should file your return and pay what you can. Attach a letter to your return explaining your financial situation. The IRS will work with you to set up a payment plan or to pursue an offer to settle the account. amount distributed was rolled over into the distributing IRA within the last 12 months. This exception applies only to an involuntary distribution that the IRA owner does not request and cannot prevent. All or part of the involuntary distribution must be rolled over into another IRA within 60 days of the receipt of the distribution. Any amount not rolled over is subject Q. I havent filed a tax return for the past year or so. How do I know I wont go to jail if I come forward? A. The IRS has never pressed criminal charges against people who came forward on their own to file a truthful return. It is the people who willfully keep failing to file that will face criminal charges. Q. What forms do I file? Can I get help filling them out? A. You can get most of the prior year forms you need from your local IRS office or by calling to tax. See IRS Publication 590, Individual Retirement Arrangements (IRAs), for more information on IRAs. Order it by calling Divorce Affects Taxes, Too If you are recently divorced or separated, IRS Publication 504, Tax Information for Divorced or Separated Individuals, explains tax rules that could affect your filing status, dependency exemptions and the treatment of alimony and property settlements. To order, call Assistors are available in most IRS offices to answer questions about tax laws and offer help with completing the forms. They can work with you on your payment options. You also can get tax help by e number. In calling the some parts of the country, volunteers trained by the IRS offer free help with prior year returns. LYoulHaveTAskedSMB commonLQuesnSStojRS toll-fre- received an IRS notice. Ive contacted the IRS 3 times about it, but the problem still hasnt been fixed. What can I do? Q. For more information, call I IRS office, listed in your tax package, and ask for A. Call your local can exclude amounts paid before July 1, 1992, by an employer for an employer-provide- d group legal services plan. For more information, see IRS Publication 525, Taxable and Nontaxable Income. the Problem Resolution Office JOHN FOGG MAY HELP (PRO). Listen to recorded information about the IRS PROs by calling YOU SAVE ooking for value in isurance for your home, your car, your business, your life? request Topic 104. I More for Your Miles! How far did you go for your business? Generally, business travelers can deduct 28 cents a mile for an unlimited number of business miles in 1992. As an alternative, business travelers can choose to deduct their actual expenses. IRS Publication 917, Business Use of a Car, explains. Call to order it; or listen to Topic 310 on the IRSs recorded information phone line, Tele-Taat loSSSs x, EVERY THURSDAY 181 Souih Main 587-280 Monlicclio 5 Allstate Allstate Insurance Company Life From: Allstate Life Insurance Company Toll Free Mileage Deductions |