April 15th is seen as the end of the traditional tax-filing season. And, while it may be tempting to purge certain tax documents from your files for the current and past tax years, you want to be careful. It is important to retain relevant tax records in the event that the IRS — or another taxing authority — requires that those records be produced as part of an audit. Keep at Least Three Years The following records are commonly used to substantiate a taxpayer’s income and deductible expense items: Form(s) W-2 Form(s) 1099 Form(s) K-1 Bank and brokerage statements Canceled … Continue reading →

  The IRS has issued the 2013 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical, or job-related moving purposes. Effective January 1, 2013, the various standard mileage rates for the operation of a car, van, pickup, or panel truck are as follows: 56.5 cents per mile for each business mile driven (up from 55.5 cents in 2012). This rate is based on an annual study of the fixed and variable costs of operating an automobile. 24 cents per mile driven for medical or moving purposes (up from 23 cents in … Continue reading →

  The IRS has announced many cost-of-living adjustments (COLAs) that apply to retirement benefit plan limitations. Below are selected COLAs for 2013, compared to their 2012 levels. Limit on elective deferrals to 401(k), 403(b), and 457 plans — $17,500, up from $17,000 Traditional and Roth IRA contribution limit — $5,500, up from $5,000 Maximum SIMPLE contributions — $12,000, up from $11,500 Limit on annual additions to defined contribution plans — $51,000, up from $50,000 Maximum annual benefit accrued under a defined benefit plan — $205,000, up from $200,000 Compensation limit for qualified plan purposes — $255,000, up from $250,000 Traditional … Continue reading →