Month: May 6, 2024

PTIN renewals begin on October 22, 2011.  Before you begin your PTIN renewal application, be sure you have the following available:

• Personal information (name, mailing address, date of birth)
• Business information (name, mailing address, telephone number)
• Explanations for felony convictions (if any) ¹
• Explanations for problems with your U.S. individual or business tax obligations (if any) ¹
• Credit or debit card for the $63.00 PTIN user fee
• If applicable, your supervisor's PTIN (view the Notice 2011-6 fact sheetfor more information)
• If applicable, any U.S.-based professional certification information (CPA, attorney, enrolled agent, enrolled retirement plan agent, enrolled actuary, certified acceptance agent, or state license) including certification number, jurisdiction of issuance, and expiration date

After you renew your PTIN, you will receive information about next steps including testing, fingerprinting, and continuing education requirements (if applicable).

Note: All PTIN correspondence is delivered through secure online messaging in your PTIN account. Use the most up-to-date email address when obtaining your PTIN to ensure that you receive our messages.

If you need additional help with renewing/applying for your PTIN, feel free to call us at 770-877-5565.

2011 Basic Changes

Exemption Amount: $3, 700

Standard Deduction
Basic amounts for 2011 are:
Head of Household - $8, 500
MFJ and Qualifying Widow(er)s - $11, 600
MFS - $5, 800
Single - $5, 800

Additional standard deduction for Aged and Blind:

$1, 150 for each
$1, 450 if the individual is unmarried and not a surviving spouse

Standard Mileage Rates
The rates for 2011 are:

Business purpose (Applies to up to four vehicles):
January 1 – June 30: 51 cents per mile
July 1 – December 31: 55.5 cents per mile
Medical/Moving purposes:
January 1 – June 30: 19 cents per mile
July 1 – December 31: 23.5 centers per mile
Charitable Contributions: 14 cents per mile

Section 179 Expense Limits

Maximum Section 179 deduction: $500, 000
Maximum cost before the limit is reduced: $2, 000, 000

5% Capital Gains rate remains at 0%
The 15% capital gain rate remains the same.

Income from Credit Cards and Schedule C

As a reminder, beginning with calendar year 2011, banks will be issuing new information on Form 1099-K for their 2011 income received via credit cards.
The amounts from Form 1099-K must be reported on a separate line on the 2011 Schedule C.

The new income section for Schedule C will have a new look:

Line 1a: Merchant card and third party payments
Line 1b: Gross receipts or sales not reported on Line 1a
Line 1c: Total Gross Receipts
Line 1d: Returns and allowances plus any “cash back”
included on Line 1a
Line 1e: Net Gross Receipts
There will also be two questions added to Schedule C, E and F asking if the business made any payments in 2011 that require it to file Form(s) 1099 and, if so, did they or will they file all required Form(s) 1099.

If you discover an error after you file your tax return, you can correct it by amending your return.  Here are ten facts from the Internal Revenue Service about amending your federal tax return:

1. When to amend a return You should file an amended return if your filing status, your dependents, your total income or your deductions or credits were reported incorrectly.
2. When NOT to amend a return  In some cases, you do not need to amend your tax return.  The IRS usually corrects math errors or requests missing forms – such as W-2s or schedules – when processing an original return.  In these instances, do not amend your return.
3. Form to use Use Form 1040X, Amended U.S. Individual Income Tax Return, to amend a previously filed Form 1040, 1040A or 1040EZ.  Make sure you check the box for the year of the return you are amending on the Form 1040X. Amended tax returns cannot be filed electronically.
4. Multiple amended returns If you are amending more than one year’s tax return, prepare a 1040X for each return and mail them in separate envelopes to the appropriate IRS processing center.
5. Form 1040X The Form 1040X has three columns. Column A shows original figures from the original return (if however, the return was previously amended or adjusted by IRS, use the adjusted figures). Column C shows the corrected figures. The difference between Column A and C is shown in Column B.  There is an area on the back of the form to explain the specific changes and the reason for the change.
6. Other forms or schedules If the changes involve other schedules or forms, attach them to the Form 1040X.
7. Additional refund If you are filing to claim an additional refund, wait until you have received your original refund before filing Form 1040X.  You may cash that check while waiting for any additional refund.
8. Additional tax If you owe additional tax, you should file Form 1040X and pay the tax as soon as possible to limit interest and penalty charges.
9. When to file Generally, to claim a refund, you must file Form 1040X within three years from the date you filed your original return or within two years from the date you paid the tax, whichever is later.
10. Processing time Normal processing time for amended returns is 8 to 12 weeks.

*Source: IRS Summertime Tax Tip 2011-12 www.irs.gov