The IRS announces standard mileage rates for 2018

/in , , , , , /by

The optional mileage allowance for owned or leased vehicles (including autos, vans or pickups) will climb 1 cent to 54.5 cents per mile for business travel. Employers also can use this rate for reimbursements to employees who supply their own autos for business use, and to value personal use of certain low-cost employer-provided vehicles. The rates for using a car to get medical care and in connection with a move that qualifies for the moving expense deduction also increase by 1 cent, to 18 cents. (Notice 2018-3)

Deductions must Be Proven

/in , , , , /by

Where’s the proof? Taxpayers engaged in business may be able to deduct reasonable business-related expenses from their gross income, if they provide adequate proof. The IRS denied most of the deductions claimed by one married couple, citing a lack of substantiation. This included utility costs, which weren’t proven to be business related, and mileage logs, which lacked sufficient detail, such as the business purpose of trips. The IRS did allow a deduction for the cost of a messaging service related to the husband’s business. (TC Memo 2017-173)

IRS offers Pilot stock distribution Letter Ruling Program

/in , , /by

A new IRS pilot program will allow taxpayers to obtain rulings on tax-free stock distributions. In Revenue Procedure 2017-52, the IRS introduced a pilot program expanding the scope of available letter rulings for an 18-month period to include requests for rulings on the tax consequences of a distribution of stock, or stock and securities, of a controlled corporation under Internal Revenue Code Section 355. The guidance provides procedures to request these rulings and clarifies how to ask for a ruling on significant issues related to these transactions.

Facebook IRS Request Fails

/in , , /by

Facebook’s IRS document request suit fails because the claim didn’t match FOIA request. A district court has denied Facebook’s motion to compel the IRS, based on the Freedom of Information Act (FOIA), to provide the social media giant with documents about the IRS’s audit of the company. The court held that Facebook’s claim in its complaint didn’t match its FOIA request to the IRS and, thus, Facebook didn’t “exhaust its administrative remedies.” In FOIA cases, a party must exhaust administrative remedies before that party can seek judicial review.