IRS Increases Mileage Rate to 55.5 Cents per Mile

The IRS today announced the increase of the standard mileage rates for the last six months of 2011 due to the increase in gasoline prices - action similar to 2008, the last time gasoline reached $4 per gallon.

The standard mileage rates are the following:

	Business	Medical/Moving	Charitable
July 1, 2011 - Dec. 31, 2011	55.5	23.5	14
Jan. 1, 2011 - June 30, 2011	51	19	14
2010	50	16.5	14
2009	55	24	14
July 1, 2008 - Dec. 31, 2008	58.5	27	14
Jan. 1, 2008 - June 30, 2008	50.5	19	14

Where's My Refund?

Taxpayers can check the status of their tax refund 24 hours a day, 7 days a week, worldwide, with a web browser and a few pieces of information.

• Navigate to IRS.gov and click the Where My Refund button,
• Next enter the social security number of the primary taxpayer. This information can be pulled from the upper right corner of Form 1040.
• Select the filing status from Boxes 1 through 5
• Finally, enter the exact amount of your refund from line 74a of Form 1040.

Generally, if the taxpayer e-filed, the refund information will available 72 hours after the acknowledgment saying the IRS received the tax return – allow three to four weeks if filing a paper tax return.

Pay your Medical Expenses with an HSA

A health savings account (HSA), is a tax-advantaged medical savings account available to taxpayers who are enrolled in a High Deductible Health Plan (HDHP). Contributions to these plans made on an employer reduces the taxpayer’s taxable income and are reported on Form W-2, box 12, code W. Taxpayers who make contributions directly to their HSA will receive Form 5498-SA and can deduct the contribution on Form 1040, line 25 of their tax return.

Let's play the "What if?" game

The Internal Revenue Service can assist taxpayers experiencing difficult financial times including what it means to your income taxes when experiencing major life events.

Can't File Your Tax Return or Make Your Tax Payments on Time?

If you can't meet the April 15 filing deadline, here's what you need to know:

• An extension allows you extra time to file but is not an extension of time to pay a balance due.
• File a Form 4868 by April 15 to extend the filing deadline to Oct. 15. You should also estimate your tax liability and pay as much of it as you can before April 15. If done electronically, the IRS will acknowledge receipt of the extension request.
• If the return is done but you do not have funds to pay a balance due, do not request an extension. File your return on time and pay as much as you can. By paying as much as possible now, the amount of penalties and interest owed will be less. You will be billed for the remainder of the amount you owe. 
• To request a payment plan, include a Form 9465 with your return. This arrangement allows you to make monthly payments after a one-time fee of $105 (reduced to $52 if you make payments through Direct Debit from your bank account). If you already have an installment agreement from a previous tax debt and your financial situation has changed, the IRS may be able to modify or restructure your installment agreement to include additional amounts owed into one agreement. Additionally, a Collection Information Statement may have to be completed to further illustrate your financial situation. If an installment agreement is modified, reinstated or restructured, a $45 user fee may be charged.