>*

tax tips

Rates, Due Dates & IRS Limits

Prime rate and CPI-U
Prime rate:                      3.25% (effective Dec. 16, 2008)
December 2009 CPI-U ( 1. )      2.7% (2.)
1. Covers all goods/services purchased by urban consumers.
2. Goods costing $1,000 in Dec. 2008 cost $1,027 in Dec. 2009

January 2009 CPI-U:                       Available February 19, 2010
For the latest CPI-U and general information        202-691-6994
For other CPI-U indices and more details              202-691-7000   

200% GDS nonfarm MACRS property rates  
                                 5-year* property                  7-year** property
Year 1

20.00%

14.29%
Year 2

32.00%

24.49%
Year 3

19.20%

17.49%
Year 4

11.52%

12.49%
Year 5

11.52%

8.93%
Year 6

5.76%

8.92%
Year 7

8.93%
Year 8

4.46%
* Autos, trucks, computers/peripherals, typewriters,
   calculators, etc.
** Furniture and fixtures, desks, files, etc.
Note: The IRS includes cellular phones as listed property, but does not give a number of years, so most firms take a Sec. 179 deduction.

IRS depreciation limits: Vehicles put in service in 2009  
                         Passenger autos           Light SUVs, Pickups/Vans*
 
 

50% bonus
dep.

No bonus
or used

50% bonus
dep.

No bonus
or used
1st Year

$10,960

     $2,960   $11,060

$3,060
2nd Year

4,800

     4,800   4,900

4,900
3rd Year

2,850

     2,850   2,950

2,950
4th/after

1,775

     1,775   1,775

1,775
* 6,000 lbs., or less, built on truck chassis, and not specially modified

Latest changes in federal per diems within the U.S.
 www.irs.gov/publications/p1542/ar01.html#d0e22

Latest changes in per diems outside the U.S.
 aoprals.state.gov/content.asp?content_id=184&menu_id=78

Payroll rates and bases         2009                 2010
 Soc. Sec. and Medicare rates      6.20%/1.45%         6.20%/1.45%
Social Security wage limit             $ 106,800             $ 106,800
Medicare wage limit                       Unlimited           Unlimited
FUTA taxable wage base               $7000                   $7000
FUTA rate                                          6.2%                     6.2%
FUTA maximum credit                   5.4%                     5.4%
Minimum FUTA deposit rate        0.8%                     0.8%

 Std Mileage                             
Business*

55¢/mile

   50¢/mile
Relocation

24¢/mile

 16.5¢/mile
Medical

24¢/mile

  16.5¢/mile
Char. Rate

14¢/mile

   14¢/mile

* Can be used only if taxpayer owns/leases a passenger auto, van, pickup, or panel truck not for hire (eg., as a taxi) that was not depreciated under ACRS, MACRS or Sec. 179 in earlier years.

Qualified retirement plan limits       2009             2010

Pretax contributions for 401(k) & SEP plans & 403(b) annuities  $   16,500  $   16,500
Workers over 50 (catch-up) $     5,500 $     5,500
Sec. 415(b)(1)(A) defined benefit
plan annual benefit ceiling 		$ 195,000 $ 195,000
Combined employer/employee pay-in limits all defined cont. plans $   49,000 $   49,000
Annual compensation  limit under Sec. 401(a)(17) and Sec. 404(1) Sec. 408(k)(3)(C) IRA, SEP or SIMPLE plan limits $ 245,000 $ 245,000
SIMPLE pretax contribution limit  $   11,500  $   11,500
Workers over 50 (catch-up)  $     2,500  $     2,500

Key phone numbers
> IRS forms and publications                            800-829-3676
> Retiree benefit status check                         800-772-1213


Applicable Federal Rates (AFR) for January 2010

Under IRC§ 1274, if your firm extends a loan due more than 6 months after a customer purchased or exchanged an item and there is no stated interest rate, the IRS imputes one. The IRS imputed interest rates for October 2009 are as follows:

 

Annual

Semiannual

Quarterly

Monthly
Short-term:
3 years or less

0.57%

0.57%

0.57%

0.57%
Mid-term: Over 3 but not more than 9 years

2.45%

2.44%

2.43%

2.43%
Long-term:
Over 9 years

4.11%

4.07%

4.05%

4.04%


Tax Calendar

Due
date		 Day of
week		 Deposit FICA and FITW  for wages paid for the period from
Feb. 15 Mon. President's Day - Banks closed
Feb. 16 Tues. Should have new W-4 for claiming exempt
Feb. 16 Tues. Monthly due date for Jan. liabilities
Feb. 18 Thurs. Feb. 10 - 12                    Fri.
Feb. 19 Fri. Feb. 13 - 16                    Tues.
Feb. 24 Wed. Feb. 17 - 19                    Fri.
Feb. 26 Fri. Feb. 20 - 23                    Tues.
Mar. 1 Mon. 2009 paper W-3 with W-2, copy A, due at SSA.
Mar. 1 Mon. Paper information returns due at IRS.
Mar. 3 Wed. Feb. 24 - 26                    Fri.
Mar. 5 Fri. Feb. 27 - Mar. 2             Tues.
Mar. 10 Wed. Mar. 3 - 5                        Fri.
Mar. 10 Wed. Form 4070 due from tipped employees
File Form 940
Mar. 12 Fri. Mar. 6 - 9                        Tues.                    

*  If banks are closed statewide because of a state holiday,
    the deposit date is delayed until the next banking day.
*  Deposits of $ 100,000 or more must be made within one
    banking day following the day the tax liability is incurred.

 © The General Ledger

ARTICLES:
PAYROLL - DUE DATES FOR YEAR-END 2009 AND YEAR-BEGINNING 2010
2009 FRINGE BENEFITS - WHERE TO REPORT THEM ON FEDERAL FORMS

For more information, contact us.         
 

“It feels good to be here at work knowing I can trust our numbers, have procedures that are sound, and an accounting system that is reasonable, simple and accurate. Your help has been invaluable.”

Leslie Rose, Business Manager
The Natural Childbirth & Family Clinic


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