Tax Tidbits

CHARITABLE CONTRIBUTIONS

Contributions of any amount are no longer deductible unless you have proper receipt. For contributions of $250 or more, written acknowledgment must state whether taxpayer received anything in return for their contribution.

NEW MILEAGE RATES FOR 2013

The standard mileage rate is increasing to 56.5¢ per mile. The rate for medical travel and moving will rise to 24¢ a mile. The rate for chariTabledriving will remain at 14¢ a mile.

VERIFY EMPLOYMENT ELIGIBILITY

Employers need to verify the employment eligibility of potential employees. The government has worked to streamline the process by developing E-Verify.

E-Verify is a free, internet based, federally run employment authorization program to determine eligibility of an employee to work in the United States. The website is https://e-verify.uscis.gov/. The government encourages employers to use E-Verify in conjuction with Form I-9 Employment Eligibility Verification. Employers should have potential employees complete Form I-9 and then enter that data into the E-Verify system to verify into authenticity.

Beginning in 2013, Tennessee employers with six or more employees are required to use the E-Verify system.

TENNESSEE TAX PAYMENTS

Beginning January 1, 2013, certain franchise & excise tax, sales & use tax returns and all professional privilege tax returns must be filed electronically. Specifically, all franchise & excise tax returns prepared using software certified by the Department of Revenue must be filed electronically. This includes most software programs used by public accounting firms. Regardless of which electronic filing option is used, tax payments must be made by Electronic Funds Transfer rather than check payments. To establish your account for an Electronic Funds Transfer, you must first submit an enrollment request and provide a voided check to the Taxpayer Advantage company which provides the electronic payment for the Tennessee Department of Revenue. This enrollment process needs to be completed as soon as possible to avoid any delays in the payment of taxes in 2013 and alleviate possible penalties for not paying your franchise & excise payments electronically.

ALABAMA WITHHOLDING TAX PAYMENTS

The Alabama Department of Revenue has announced that, effective July 1, 2013, the Paperless Filing and Payment System will no longer be available for filing and paying withholding tax. Taxpayers will be required to use My Alabama Taxes (MAT) to file and pay withholding taxes online. The Department advises taxpayers that MAT is a secure system with more functionality than the Paperless Filing and Payment System. MAT allows taxpayers to file tax returns, make payments, view their account history and departmental letters, and perform many other functions.