NEW BUSINESS MILEAGE RATES for 2010 will be .50 cents per mile, medical mileage rate will be 16.5 cents per mile and Charitable Contribution rate will be .14 cents per mile.

IRS LETTERS AND AUDITS have really increased in the past year.  We are seeing lots of clients recieved bills for not filing on time when in fact they did.  You have to send copies of your extension with proof of certified mailing (which we have at the office).  Quite often a phone call and fax will take care of this.  I think they are counting on a lot of people simply assuming they owe it and paying it.  Also, IRS is auditing Schedule C's (Sole Proprietorship) more than ever.  Good records and proof of business intent is extremely important.  This, again, makes consideration of filing all businesses as Sub-S Corporation a serious consideration.