Summer Newsletter
To our clients:
If you have extended your 2010 tax returns, or need to have us complete some other tax returns,
please try to get the information to us as quickly as possible. The sooner, the better, as we
begin to get quite busy around the middle of August. At that point, you might not get to the front
of the line quite so quickly! Call if you need to make an appointment: 704-846-3485.
If you haven’t reviewed us, and would like to, we would certainly appreciate it. You can do so at
either of these:
o CitySearch:
http://charlotte.citysearch.com/profile/46260643/matthews_nc/larry_a_clark_cpa.html?rai
d=40305631&publisher=citysearch#profileTab-reviews
o Angie’s List:
http://www.angieslist.com/companylist/charlotte/accountants.htm?cid=badge
o LinkedIn: http://www.linkedin.com/in/larryaclark
o We are also on Facebook – just search for Larry A. Clark, CPA!
Thank you very much; we truly appreciate you and hope to continue assist you with your tax and
accounting needs in the future! Let us know if we can do anything to better serve you.
Free Controller/CFO Consultation!
We work on an as-needed basis as Controller/CFO with businesses which neither need nor desire
a full-time employee for this function, providing the expertise you need at a fraction of the cost!
Call us for a free consultation; let us help you save $!! Your referrals are also welcome!
TIDBITS FROM THE TAX CORNER:
New standard mileage rates. The Internal Revenue Service recently announced an increase in
the optional standard mileage rates for the final six months of 2011. The rate has been increased
to 55.5 cents a mile for all business miles driven from July 1, 2011, through Dec. 31, 2011. This
is an increase of 4.5 cents from the 51 cent rate in effect for the first six months of 2011. The
new six-month rate for computing deductible medical or moving expenses will also increase by
4.5 cents to 23.5 cents a mile, up from 19 cents for the first six months of 2011. The rate for
providing services for charitable organizations remains at 14 cents a mile.
9905 Devereaux Drive Matthews, NC 28105 704-846-3485 www.LarryAClarkCPA.com
Tracking business miles. Rumor has it that the IRS is cracking down in this area. It is
absolutely critical that a mileage log be maintained to track your business miles. We’ve
encountered quite a few taxpayers who fail to keep adequate records, providing instead an
“estimate” of business mileage for the year. The IRS requires the following information in order
to substantiate a deduction for the standard mileage rate: date of trip, destination, business
purpose, mileage for each business trip and total miles for the year (business and non-business).
Failure to keep such records will result in no deduction on your return. Upon IRS audit, you
would owe penalties/interest on the additional tax owed because of disallowance of such
deduction. We will send you a free mileage log upon request-just let us know.
1099 provisions repealed; landlords take note. Last year, we reported on the expansion of
Form 1099 information reporting, requiring recipients of rental real estate income to file Form
1099-MISC for each service provider to whom $600 or more was paid during the calendar year.
This unpopular requirement was repealed in April of this year – it was rightly considered to be
unduly burdensome to individual taxpayers and small businesses. Also repealed was the
requirement that business file 1099’s when paying $600 or more to corporations for goods.
Increase in penalties for failing to file 1099’s. The Small
Business Jobs Act increased the penalties for failing to
file 1099’s and other information returns and to provide
copies to payees. The penalty per return is $100,
increased from $50. Basically, you must file Form 1099
if you make a payment of $600 or more to an individual
in the course of your trade or business. Contact us if you
have any questions regarding your specific situation.
Decrease in North Carolina Sales tax rate. Effective
July 1, 2011, the general State tax rate applicable to
sales and purchases of tangible personal property,
certain digital property, and certain services is
4.75%. As a result, the general State and local tax rate
will be 6.75% in eighty-two counties, 7% in Alexander,
Catawba, Cumberland, Duplin, Haywood, Hertford, Lee,
Martin, New Hanover, Onslow, Pitt, Randolph,
Robeson, Rowan, Sampson, Surry and Wilkes Counties,
and 7.25% in Mecklenburg County.
Fraudulent e-mails. Several clients have recently
received official looking e-mails supposedly from the
IRS stating that a payment to the IRS was returned and
asking them to click on a link that could have resulted in
a virus or other harm. Please check with us if you are
unsure about communication from the IRS. NOTE –
they rarely correspond to taxpayers via e-mail!
