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HomeMy WebLinkAboutHandouts_Pension General_02/05/2007HANSON~ PERRY ~ JENSEN~ P.A. 400 ExECUme CeNreR DRrvE, Sucre 207 -WEST PALM BeACI+, FLOr~IOA 33401-2922 JILL HANSON~ mJhanson@hpjlaw.com ANN H. PERRY aperry®hpjlaw.com BONNI SPATARA JENSEN bsjensen~hpjlaw.com 'N.so AoMmEO w N.Y. M E M O R A N D U M TO: Board of Trustees Tequesta General Employees Pension Fund FROM: Bonni S. Jensen Hanson, Perry & Jensen, P.A. DATE: February 5, 2007 Te-.EPHONe (561) 686-6550 FACSIMILE (561) 686-2802 RE: IRS Circular IR-2006-168 Regarding Standard Mileage Rate Increase Attached is IRS Circular IR-2006-168 regarding the 2007 Standard Mileage Reimbursement rate for the use of your personal vehicle for business. The IRS current rate is 48.5-cents per mile. Please let me know if you have any questions. BSJIka Enclosure H:\Tequesta GE 1012\Boarc!\2007\memo -IRS Std Mlg Rate 2007.wpd ® ..w:-' Page l of 1. Subj: TEQ General -IRS Mileage Rate Increase Date: 2/2/2007 9:26:45 A.M. Pacific Standard Time From: karena@hpjlaw.com To: C28hansen@aol.com Trustees: The memo I sent previously contained atypo -listing the 2006 rate of 44.5-cents/mile as the new 2007 rate. The 2007 rate, as stated on the attachment (Circular IR-2006-168) is actually 48.5-cents, a 4-cent increase over fast year. I apologize for any inconvenience. Karen Amenita <karena@hpjlaw.com> Legal Assistant to Bonni S. Jensen Hanson Perry & Jensen, PA 400 Executive Center Drive, Suite 207 West Palm Beach, FL 33401-2922 561-686-6550 (Phone) 561-686-2802 (Fax) CONFIDENTIALITY NOTICE: This communication is confidential, may be privileged and is meant only for the intended recipient. If you are not the intended recipient, please notify the sender ASAP and delete this message from your system. IRS CIRCULAR 230 NOTICE: To the extent that this message or any attachment concerns tax matters, it is not intended to be used and cannot be used by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Friday, February 02, 2007 America Online: C28hansen IRS Announces 2007 Standard Mileage Rates IR-2006-168, Nov. 1, 2006 WASHINGTON -The Internal Revenue Service today issued the 2007 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning Jan. 1, 2007, the standard mileage rates for the use of a car (incuding vans, pickups or panel trucks) will be: • 48.5 cents per mile far business miles driven; • 20 cents per mile driven for medical or moving purposes; and • 14 cents per mile driven in service to a charithble organization. The new rate for business miles compares to a rate of 44.5 cents per mile for 2006. The new rate for medical and moving purposes compares to 18 cents in 2006. The primary reasons far the higher rates were higher prices for vehicles and fuel during the year ending in October. The standard mileage rates for business, medical and moving purposes are based on an annual study of the flied and variable costs of operating an automobile. Runzheimer International, an independent contractor, conducted the study for the IRS. The mileage rate for charitable miles is set by statute. 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), after claiming a Section 179 deduction for that vehicle, for any vehicle used for hire or for more than four vehides used simultaneously. Revenue Procedure 2006-49 contains additional information on these standard mileage rates. Related Items: • Revenue Procedure 2006-49 Subscribe to IRS Newswire http://www.ire.gov/newsroom/arti.cle/0„id~163 828,OO.htm1 2/1 /2007