ACCOUNTING & TAX BLOG
Leadership and Solutions for Small Businesses.

Arizona Tax Forms Now Have a Spot to Note Online Sales Tax

Online shoppers, pull out your calculators.

The state is requiring you to declare how much sales tax (at a rate of 6.6 cents on the dollar) you would have paid for online sales made in 2011, as well as items purchased out of state if there was no sales tax levied on the purchase.

It’s nothing new, but the reporting requirement has long been obscure and ignored.

To make the task easier and more obvious, the Arizona Legislature earlier this year passed a law requiring that a special line be added to the 2011 individual-income tax forms for reporting such purchases. It makes Arizona the 23rd state to add such a specific reporting requirement.

The line is being added after the balance of tax has been calculated but before taxpayers apply any credits.

Look for tax forms mailed out this month.

Email Scam – Form 5471

Emails posing to be from IRS agencies are not new, but this year they seem to have amped up. We want to bring to your attention the newest scam. This email is from support@irs.gov and notifies the taxpayer they need to pay a failure to file fee for not filing Form 5471. The email tells the recipient to see the attached file for more information. Opening such attachments can compromise the user’s computer. It’s important to remind your clients that they will not receive email from the IRS.

IRS Announces 2012 Mileage Rates

The IRS kicked off the issuance of notices for 2012 with Notice 2012-1 which announced various auto mileage rates for 2012.

The standard mileage rate for transportation or travel expenses will remain at 55.5 on January 1, 2012, the rate which the IRS set for the last half of 2011.

The notice also provides other rates for 2012, including a 14 cents per mile rate for use for a charity and a 23 cent per mile rate that will be invoked for use of an automobile for medical care transportation or for moving expenses.

The portion of the business mileage rate treated as depreciation to reduce the basis of the vehicle is listed as follows:

 

Year

Rate in Cents per Mile

2008

21

2009

21

2010

23

2011

22

2012

23