July 2022

Standard Mileage Deduction Changes for Last Six Months of 2022

The Internal Revenue Service has announced an increase in the optional standard mileage rate for the final 6 months of 2022. Taxpayers may use the optional standard mileage rates to calculate the deductible costs of operating an automobile for business and certain other purposes.

For those of you that keep a mileage log, you need two totals to figure your taxes. One total business miles for the first six months of the year and one total business miles for the last six months of the year.

Beware of Offer In Compromise Mills

As the old saying goes: When something sounds too good to be true, it probably is. Taxpayers with outstanding tax bills might be tempted by businesses who advertise and offer to help them reduce their tax debt. These businesses, often called Offer in Compromise mills, make huge claims about reducing unpaid taxes for pennies on the dollar. Unfortunately, these companies sometimes don't deliver and charge large fees.