Monthly Newsletter for December 2012
Standard Mileage Rates for 2013
The Internal Revenue Service issued the 2013 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
Beginning on January 1, 2013, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
56.5 cents per mile for business miles driven
24 cents per mile driven for medical or moving expenses
14 cents per mile driven in service of charitable organizations
The rate for business miles driven during 2013 increases 1 cent from the 2012 rate. The medical and moving rate is also up 1 cent per mile from the 2012 rate.
The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs.
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates. A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (NACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for more than four vehicles used simultaneously.
South Carolina Suffers Cyber-Attack
“Approximately 3.6 million Social Security numbers and 387,000 credit and debit card numbers have been exposed in a cyber attack,” the South Carolina Department of Revenue announced.
Anyone who has filed a tax return in South Carolina from 1998 through 2012 may have had their Social Security number, credit card number or debit card number compromised by the data theft.
The Department of Revenue has set up a special telephone hotline (1-866-578-5422 and special Web page (http://www.sctax.org/security.htm) to assist South Carolina taxpayers. Also, a one-year, free credit protection is being provided by visiting, www.ProtectMyID.com/scdor. Please follow those instructions to set up this protection.
“This incident affects more than three-quarters of South Carolina’s 4.6 million population,” reports Anthony Kosner at Forbes.
South Carolina’s Governor Nikki Haley said, “We are taking immediate steps to protect the taxpayers of South Carolina, including providing one year of credit monitoring and identity protection to those affected.”
State government officials urged taxpayers to review their credit reports, place fraud alerts with credit reporting bureaus, and to place security freezes with the credit bureaus.
Taxpayers may also consider monitoring their bank and credit card statements closely for transactions that they do not recognize.
South Carolina’s Division of Information Technology informed the Department of Revenue of a potential attack on their computer network systems involving the theft of taxpayer data on October 10, 2012, and investigations were begun. On October 16, investigators discovered that at least five attempts had been made to probe the Department of Revenue’s computers systems and that data had been stolen in mid-September. The state claims that the security vulnerability was closed by October 20, and that their computer system is now “to the best of the department’s knowledge secure.” A more detailed chronology of the events that transpired is available on the Department of Revenue’s Web site.
Women’s Business Resources
The US Small Business Administration and the Office of Women’s Business Ownership collaborate with many organizations to make the best possible resources available to women entrepreneurs. Whether you are a woman interested in starting a business, applying for a business loan, finding government contracting opportunities, or improving an existing business, this place is a good point of reference for you.
A Little Humor Please
“Like Mothers, taxes are often misunderstood, but seldom forgotten.” – Lord Bramwell, 19th century English jurist
“Next to being shot at and missed, nothing is really quite as satisfying as an income tax refund.” – F. J. Raymond, humorist
“The hardest thing in the world to understand is the income tax.” – Albert Einstein, physicist
“Income tax has made more liars out of the American people than golf.” – Will Rogers, humorist