IRS Updates 2008 Mileage Rate

Effective July 1, 2008 the IRS increased the standard business mileage rate to 58.5 cent per mile. Barring any changes, this rate will remain in effect until December 31, 2008. The original rate of 50.5 cents per mile remains in effect for all mileage for January 1 to June 30, 2008.

IRS Audits Are On the Rise

Would your books hold up if you were audited? Are you prepared? IRS business audits are on the rise, especially for Partnerships and S-Corporations, which means the likelihood that you’ll be audited during the lifetime of your business is greater than ever before. A solid accounting system and good financial documentation not only help your business run smoothly, they’ll keep you out of trouble if that dreaded letter comes in the mail. If you are faced with an audit, give us a call. We’d be glad to represent you and make the audit as stress free as possible.

Employers are facing higher penalties for hiring illegal immigrants.

U.S. Attorney General Michael B. Mukasey has recently announced that civil fines imposed against employers who violate federal immigration laws will be increasing by as much as $5,000, effective March 27, 2008. The new rule will soon be published in the federal register. Under the Immigration and Nationality Act, employers who violate employment eligibility requirements are subject to civil monetary penalties. Employers may be fined under the Act for knowingly employing unauthorized aliens or for other violations, including failure to comply with the requirements relating to employment eligibility verification forms, wrongful discrimination against job applicants or employees on the basis of nationality or citizenship, and immigration-related document fraud. The new rule and applicable laws will adjust the civil penalties for inflation. The average adjustment is approximately 25%. The minimum penalty for knowing employment of an unauthorized alien will increase from $275 to $375. The maximum penalty for a first violation will increase from $2,200 to 3,200. The biggest increase under the new rules will raise the maximum penalty for multiple violations from $11,000 to $16,000. The penalties are assessed on a per-alien basis. Thus, if an employer knowingly employed, or continued to employ, five unauthorized aliens, that could result in five fines. The last time that these penalties were adjusted for inflation was in 1999.