Forms 1065, 1041 and 8884 extended deadline

Are incomplete or late deliveries of Form K-1 affecting the timely filing of your personal income tax return? As of July 2, 2008 the IRS has implemented change in an effort to help make this problem less prominent. To assist with IRS compliance and an easier, more accurate filing of your personal income tax return, the extended deadline for Form 1065 -partnership income tax returns, Form 1041 - fiduciary income tax returns and Form 8884 - partnership withholding tax returns, will be moved ahead one month to September 15th, similar to that of corporations. This is effective for all tax years beginning on or after January 1, 2009 for the mentioned tax returns. The old deadline of October 15th was also the extended due date for your personal income tax returns which made accurate and timely filing of your personal tax returns difficult if the K-1 for the above tax returns was not complete or delivered until at or near October 15th.

Mileage Increase

With gas prices rising across the country, the IRS has decided to step in and and give businesses a little relief for the second half of the 2008 income tax filing year. Effective July 1, 2008, the Internal Revenue Service will change the standard mileage rate by increasing the optional standard mileage rate that taxpayers can use to calculate the deductible costs of operating an automobile. The rate will go up from 50.5 cents to 58.5 cents per mile for all business miles driven from July 1, 2008 through December 31, 2008. Rates have also increased for medical and moving expenses to 27 cents per mile. Charitable contributions mileage rates remain at 14 cents per mile. The IRS usually revises mileage rates once a year in the fall for the upcoming year, but high gas prices prompted the IRS to make a change for the last six months of 2008.