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Posted by on Jun 20, 2011 in Businesses, Individuals | 0 comments

Special Increase on Standard Mileage Rates

Higher Gas = IncreaseEffective July 1, 2011, the IRS has increased the optional standard mileage rates in recognition of recent gasoline price increases.  IRS Commissioner Doug Shulman commented that “This year’s increased gas prices are having a major impact on individual Americans. The IRS is adjusting the standard mileage rates to better reflect the recent increase in gas prices,” “We are taking this step so the reimbursement rate will be fair to taxpayers,” said Shulman.

 

The 4.5-cent increase applies to business, medical or moving miles driven from July 1, 2011 through December 31, 2011.  The rate for providing services for charitable organizations is set by statute, not the IRS, and therefore remains at 14 cents per mile.

 

For Business Related Travel: 55.5 cents per mile
For Medical or Moving Purposes: 23.5 cents per mile
For Charitable Use: 14 cents per mile
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Posted by on Jun 5, 2011 in Businesses | 0 comments

Reinstatement of Non-Profit Tax Exempt Status

Click Here for List of Revoked OrganizationsIn June, the IRS announced that approximately 275,000 organizations lost their tax-exempt status because they did not file required reports for three consecutive years.  While the IRS believes most of these organizations are defunct, they have announced special steps to help existing organizations to apply for reinstatement, including retroactive reinstatement. 

 Those seeking reinstatement must file an application for exemption and pay the appropriate user fee.  If the IRS determines that the organization meets the requirements for tax-exempt status, it will issue a new determination letter.  The date of reinstatement will be the date that the new application was submitted to the IRS.  Under certain limited circumstances, the IRS will grant retroactive reinstatement.

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