May 23, 2015

Tax & Accounting News-in-Brief

Association News

 The Internal Revenue Service has issued the 2014 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning on Jan. 1, 2014, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be 56 cents per mile for business miles driven; 23.5 cents per mile driven for medical or moving purposes; and 14 cents per mile driven in service of charitable organizations. The business, medical, and moving expense rates decrease one-half cent from the 2013 rates. The charitable rate is based on statute.

Military Officers Association of America said the one percent annual reduction to uniformed service retired pay Cost of Living Adjustment could have disastrous unintended consequences. For those who retire at the 20 year point in their career, it will result in reducing retired pay by nearly 20 percent between the age at retirement and 62. “A 20 percent reduction in retired pay and survivor benefit values is a very substantial cut in military career benefits and does not represent good faith to our men and women in uniform,” MOAA president Vice Adm Norb Ryan said.

On a proposal in Congress to raise the Transportation Safety Administration aviation security tax, Global Business Travel Association executive director Michael W. McCormick said, “Instead of driving TSA efficiencies that curb spending, Congress’ solution is to double the amount travelers pay. Road warriors strengthen the economy, create jobs and drive economic security. Yet governments insist on treating travelers like their ATM. These types of punitive travel taxes will ultimately push business travelers to stay home, and we all pay when governments take a short-sighted approach that raises the costs for business travel

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