IRS increases mileage rate until Dec. 31, 2005

WASHINGTON — The Internal Revenue Service and Treasury Department announced today an increase to the optional standard mileage rates for the final four months of 2005. The rate will increase to 48.5 cents a mile for all business miles driven between Sept. 1 and Dec. 31, 2005. This is an increase of 8 cents from the 40.5 cent rate in effect for the first eight months of 2005, as set forth in Rev. Proc. 2004-64.

“This is about fairness for taxpayers,” said IRS Commissioner Mark W. Everson. “People are entitled to deduct the real cost of operating a vehicle. We’ve responded to the recent gas price increases by making this special adjustment so taxpayers get the tax benefit they deserve.” In recognition of recent gasoline price increases, the IRS made this special adjustment for the final months of 2005. The IRS normally updates the mileage rates once a year in the fall for the next calendar year. - complete announcement

2004

Client tax letter
Shortly, it will again be time to prepare your 2004 individual federal/state income tax returns. If you are a current client, we have printed your income tax organizer and retained it at our office. If you would like to use it to help assemble the information required to prepare your tax return, just call or email our office and we will mail it to you immediately. Otherwise, we will use it in the tax preparation process. more...

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Tax organizer
If you would like a blank organizer for help in your 2004 individual income tax preparation, clink the links below and print out:
Page 1 - Page 2 - Page 3 - Page 4

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Tsunami contributions
A new law allows taxpayers who itemize to deduct on their 2004 tax returns certain contributions to charities to aid the victims of the tsunami even if the contribution was made during January 2005. More...

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Sandra Block (USA Today):
Your Money - Not all tax preparers created equal, so do some checking
If your idea of a truly terrifying Fear Factor is one in which contestants are forced to do their own tax returns, you'll find no shortage of people happy to do the job for you. Competition for tax returns has gotten so intense that tax-preparation companies are offering everything from free pizza to double-your-refund contests to get those 1040s in the door.

Prior years' information/links that are still relevant:

Jobs/Growth Tax Relief Reconciliation Act of 2003