At Beall Barclay & Company, PLC, our goal is to serve you in ways that are valuable to you. We offer a variety of accounting services, and have offices in Western and Northwestern Arkansas. By reviewing the various departments of our firm, we hope to familiarize you with Beall Barclay & Company and the many services we provide. We have posted answers to many of the frequently asked questions that could be of interest to you, as well as posted more in-depth articles on various aspects of accounting. Our goal in providing you with this rich resource of information is for your own knowledge and convenience. If your questions aren’t answered below, don’t hesitate to contact us and one of our professionals will provide you with further information.

Common Questions

Q: What is the mileage reimbursement rate for January 1, 2012?
A: The IRS on Friday released standard mileage rates for use in 2012 (Notice 2012-1). Taxpayers can use the optional standard mileage rates to calculate the deductible costs of operating an automobile.

For business use of an automobile remains at 55½ cents per mile. For medical or moving expenses, it is 23 cents per mile (a half-cent decrease from the second half of 2011). For services to charitable organizations, the rate (which is set by statute) is 14 cents per mile.

Rather than using the standard mileage rates, taxpayers may instead use their actual costs if they maintain adequate records and can substantiate their expenses. The rules for substantiating these amounts appear in Rev. Proc. 2010-51.

For automobiles a taxpayer uses for business purposes, the portion of the business standard mileage rate treated as depreciation is 23 cents per mile for 2012 (it was 22 cents per mile for 2011).

Q: What is the mileage reimbursement rate for July 1 - December 31, 2011?
A: Beginning on July 1, 2011, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

• 55.5 cents per mile for business miles driven
• 23.5 cents per mile driven for medical or moving purposes
• 14 cents per mile driven in service of charitable organizations

This is an increase of 4.5 cents from the 51 cent rate in effect for the first six months of 2011, as set forth in Revenue Procedure 2010-51. In recognition of recent gasoline price increases, the IRS made this special adjustment for the final months of 2011. The IRS normally updates the mileage rates once a year in the fall for the next calendar year.

Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

The new rates are contained in Announcement 2011-40 on the optional standard mileage rates.

Q: What is the mileage reimbursement rate for January 1 - June 31, 2011?
A: Beginning on Jan. 1, 2011, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

• 51 cents per mile for business miles driven
• 19 cents per mile driven for medical or moving purposes
• 14 cents per mile driven in service of charitable organizations

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 as determined by the same study. Independent contractor Runzheimer International conducted the study.

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 (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for any vehicle used for hire or for more than four vehicles used simultaneously.

Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

Q: What is the mileage reimbursement rate for 2010?
A: Beginning on Jan. 1, 2010, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

• 50¢ per mile for business miles driven
• 16.5¢ per mile driven for medical or moving purposes
• 14¢ per mile driven in service of charitable organizations

The new rates for business, medical and moving purposes are slightly lower than last year’s. The mileage rates for 2010 reflect generally lower transportation costs compared to a year ago.

Q: What is the mileage reimbursement rate for 2009?
A: January 1, 2009: IRS has announced that the optional mileage allowance for owned or leased autos (including vans, pickups or panel trucks) is 55¢ for business travel after 2008. That's 3.5¢ down from the 58.5¢ allowance for business mileage in the last six months of 2008. Further, the rate for using a car to get medical care or in connection with a move that qualifies for the moving expense deduction is 24¢ per mile, down 3¢ from the 27¢ per mile allowance for the last half of 2008.

Q: What is the Federal Minimum Wage?
A: Effective July 24, 2009 is $7.25

Q: What is the phone # for the Fort Smith, Arkansas IRS office?
A: 479-648-9433

Q: Where do I send/mail my 1099/1096?
A: If you are an Arkansas business...
Submit a state copy to Arkansas:
Department of Finance & Administration
W/H Tax Branch
PO Box 8055
LITTLE ROCK, AR 72203-8055

Submit a federal copy to the IRS:
INTERNAL REVENUE SERVICE CENTER
CINCINNATI, OH 45999

If you are an Oklahoma business...
Submit a state copy to Oklahoma:
OKLAHOMA TAX COMMISSION
P O BOX 26860
OKLAHOMA CITY, OK 73126-0860

Submit a federal copy to the IRS:
INTERNAL REVENUE SERVICE
KANSAS CITY, MO 64999

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Link to: Consent To Disclosure of Tax Return Information Form

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Records Retention Table

Q: How long should I retain my important documents?
A: The schedule below is provided for informational purposes only. Please contact legal counsel for guidelines applicable to your situation.

Type of Record	Retention Period
Tax and legal correspondence	7 years after liquidation of entity
Audit reports	7 years after liquidation of entity
General ledger and journals	7 years after liquidation of entity
Financial Statements	7 years after liquidation of entity
Contracts and leases	7 years after liquidation of entity
Real estate records	7 years after liquidation of entity
Corporate stock records and minutes	7 years after liquidation of entity
Bank statements and deposit slips	6 years
Sales Records and Journals	6 years
Other records relating to revenue	6 years
Employee expense reports and records relating to travel and entertainment expenses	7 years after liquidation of entity
Canceled checks	3 years
Paid vendor invoices	3 years
Employee payroll expense records	4 years
Inventory records	3 years (longer if you use LIFO)
Depreciation schedules	At least tax life of asset plus 3 years
Other capital asset records	At least tax life of asset plus 3 years
Other records relating to expenses	3 years
Partnership agreement and amendments	Permanently
Operating agreement and amendments(LLC)	Permanently

Taxpayers retaining records using paperless alternatives should refer to the following revenue procedures to ensure that records are acceptable to the IRS. Rev. Proc. 81-46 addresses retaining books and records on microfilm or microfiche (micrography technology). Rev. Proc. 97-22 updates the procedures in Rev. Proc. 81-46 for the advances in retaining records via electronic storage media such as magnetic tape, optical disk, CD-ROM, etc. Rev. Proc. 98-25 provides guidance on retention of automated data process (ADP) files or machine sensible records

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