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June, 2011

Message from Nelson & Company, P.S., CPAs

IRS Increases Mileage Rate

The rate will increase to 55.5 cents a mile for all business miles driven from July 1, 2011, through Dec. 31, 2011. 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.

"This year's increased gas prices are having a major impact on individual Americans. The IRS is adjusting the standard mileage rates to better reflect the recent increase in gas prices," said IRS Commissioner Doug Shulman. "We are taking this step so the reimbursement rate will be fair to taxpayers."

David S. Nelson, CPA, CTRS
Certified Public Accountants

IRS Times & Inquirer

Inside This Issue...

'Celebrity Apprentice' Star Owes $50k
AZ Real Estate Broker Guilty of Tax Evasion, Failure to File

'Celebrity Apprentice' Star Owes $50k

One of the stars of Celebrity Apprentice owes the Internal Revenue Service $50,000 in back taxes.

Actress Marlee Matlin, 45, told People magazine that she is negotiating a payment arrangement with the IRS. She and her husband, a Burbank, CA police officer, are also trying to sell their five-bedroom home in Pasadena.

Matlin won an Academy Award for her performance in Children of a Lesser God. She also had appearances on such television shows as Seinfeld, Picket Fences and Law & Order: Special Victims Unit.

AZ Real Estate Broker Guilty of Tax Evasion, Failure to File

A federal jury has found a former Arizona real estate broker guilty of income tax evasion and failure to file tax returns.

Sue J. Taylor, also known as Janice Sue Taylor, 67, of Gilbert, AZ, failed to file income tax returns for the years 2003 to 2006 and evaded payment of taxes on income earned from real estate commissions and land sales during those years. Taylor was convicted of four felony counts of tax evasion and four misdemeanor counts of willful failure to file tax returns.

Evidence in the case showed that during the tax years 2003 to 2006, Taylor used her purported real estate brokerage, National Landbank, and purported real estate trusts to hide from the IRS her earnings from commissions and ownership interest in real property. The government also produced evidence that Taylor earned a $72,000 sales commission and had an interest in $1.3 million in proceeds from the same sale, none of which was reported to the IRS. Testimony from an IRS revenue agent established that Taylor evaded assessment and payment of at least $910,000 from 2003 to 2006.

She faces up to five years in prison and a $250,000 fine for each of the four counts.


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Nelson & Company, P.S., CPAs Since 1979

Circular 230 Disclosure:
To ensure compliance with requirements imposed by the IRS, we inform you that (i) any tax advice contained in this communication (including any attachments) was not intended or written to be used, and cannot be used for the purpose of avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.