Charitable donations to qualified charities providing earthquake relief in Haiti can be claimed on your 2009 tax return.  Cash contributions made after January 11, 2010 and before March 1, 2010 are eligible for deduction in 2009.  Contributions can be made by text message, check, credit card or debit card.


Our Tax Planning Letter has been updated.


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


More fake emails that appear to be from the IRS.  The IRS will NEVER email you.  These emails contain malicious software.   


The IRS warns of suspicious emails regarding refunds
Don't fall for email scams about your refund.  The Internal Revenue Service will never email you about any tax matters.


Massachusetts Sales & Use Tax Changes Effective August 1, 2009
Rate
Effective August 1, 2009 the rate of tax for sales (including meals) and use tax increases from 5% to 6.25%.
Computation
The "bracket" system is now repealed for a method of computation.  The new legislation replaces it with a rounding system.  Computations must be made to the third decimal place, rounding up to the next whole cent whenever the third decimal place is greater than 4.  The tax due on a transaction may be computed on an item or an invoice basis.
Scope
Legislation repealed the existing exemption for alcoholic beverages, including beer, wine & liquor sold at retail.  Otherwise, the scope of of the sales/use tax has not changed.  Tangible personal property, prepared food (meals), and telecommunications services remain and are taxable at the new higher rate of 6.25%.
Transition Rules
Some transactions will be subject to a transition rule and taxed at the old rate of 5%.  These include periodic utility bills, certain unconditional contracts, and certain contracts for construction of buildings.  Please contact us for further information.