The Tax Update is in sunny, but very cold, Denison, Iowa today.
The IRS has issued updated standard mileage rates for 2014:
– 56 cents for business travel (down from 56.5 cents for 2013);
– 23.5 cents for medical travel;
– 14 cents for charitable travel.
Gas is down. (Notice 2013-80)
Related: Paul Neiffer, IRS Almosts Eliminates the 1/2 cent
Mickey Kaus, Big Obamacare payoff for tax cheats?:
Doesn’t Obamacare create a big new incentive to fudge your income on your tax returns? The subsidies available on the health care exchanges seem to be based on adjusted gross income (line 37 on Form 1040)– and there’s a huge, conspicuous difference between the subsidy available at, say, a $25,000 income and a $46,000 income. (The subsidy cutoff of is $45,960 for a single person). In California, for the “bronze” policy I’m interested in, at $46,000 I’d pay $507 a month. At $25,000 I’d pay … $63. A difference of $444 a month.
I have mentioned quite often the high hidden marginal rates caused by the phase-out of the earned income tax credit. The Obamacare subsidy phase-outs worsen this. The government pays you to stay poor, or to cheat on your taxes if you aren’t poor anymore. You get what you pay for. (via Instapundit)
William Perez, Year End Review of Choice of Business Entity. “There is definitely no one-size-fits-all answer when it comes to deciding on an appropriate tax structure for a business.”
Margaret Van Houten, What our Estate Planning Clients Need To Know – What are Digital Assets? (Davis Brown Tax Law Blog). On the importance of including “digital assets” in your estate planning.
Jason Dinesen, Colorado Tax Guidance for Same-Sex Marriage
Lyman Stone, Missouri Gives In With $2 Billion Incentive to Boeing. Missouri taxes its residents and existing businesses to give cash to an insider with good lobbyists.
How do you know that the new proposed 501(c)(4) regulations are designed to silence right-side speech? The left-side advocacy groups have dropped their lawsuit demanding the IRS enact regulations to silence right-side speech (Huffington Post).
Robert D. Flach, HERE’S A THOUGHT – A FEW MORE CENTS ON A VOLUNTARY CREDENTIAL FOR TAX PROS. “If the IRS does not decide to go ahead with a voluntary RTRP program after it loses the appeal of Loving v IRS, I have proposed an independent industry-based organization to administer a voluntary RTRP-like tax preparer credential in my ACCOUNTING TODAY editorial ‘It’s Time for Independent Certification for Tax Preparers‘. ” It would be an improvement over the IRS system.
Peter Reilly, Cigarette Importer Sees $300M Deduction Go Up In Smoke
Greg Mankiw, The Progressivity of the Current Tax Code :
TaxGrrrl, IRS To Rapper: It’s Hammertime! Remember M.C. Hammer? The IRS does, even if you don’t.