How to get IRS penalty abatement on back taxes

Courtesy: Get IRS Help

Understanding IRS Letters and Notices

Understanding IRS Letters and Notices
Understanding-Your-IRS-Notice-or-Letter  
Letters and Notices Offering an Appeal - Examination Letters/Collection Letters
Order-a-Transcript
CP 11 - We Changed Your Return You Have a Balance Due [Balance Due]
This notice reflects adjustments the IRS made to your return and the effect it had with penalties and interest.  If you don’t agree, speak up now, usually the longer you are in the collection process the harder it is to undo things.  If you don’t understand why the changes were made, contact the IRS and ask.  You don’t have to answer questions beyond the verifying questions to prove that you are you, or make promises of when you will make payment.  Just say you will call back soon after looking into the matter.

Letter 11 - Final Notice of Intent to Levy [Balance Due]

And notice of your right to a hearing.  You have 30 days to appeal.  We prefer solving the case before 30 days and getting the Revenue Officer (RO) to hold off on the levy (file Form 12153).  Appeals are time consuming, and still won’t solve the compliance issues of filing delinquent returns, and payment issues of paying delinquent taxes.  If you can’t file the delinquent taxes and fill out the collection information statements within the 30 days, call the RO or Automated Collection Service (ACS) Individuals 800.829.7650, Small Business 800.829.8310, ACS Collections 800.829.3903; and explain your great desire to cooperate.  Give the IRS information and answer the IRS' questions, and you will probably be given more time.  If not, call back again.  Don’t give up.  You are allowed to have time to resolve your case.

CP 14 – Request for Tax Payment [Unpaid Taxes]

This is your first bill for taxes due.  A nice simple request for payment.  The IRS feels that you still did not pay enough to cover the liability plus interest and penalties.  This letter will go to great lengths to explain the interest and penalties, and often less about why you owe money.

CP 22E [Balance Due]

This is a change based on the results of an IRS audit examination.  You don’t even have to be aware of it!  There are many things that can set off audit triggers.  Auditing without your knowledge, is a common IRS practice.  If the IRS thinks everything is okay, then you probably will never know it happened.  If not you will get a letter.  You should respond with your proof for any items you want to claim are justified as stating the way you reported them.  Or you can just agree to their changes.  Often the reasons for the change are missing.  How nice.  Pull your third party payer information (1099's) and see why the IRS has different information than you.   If you can’t get it in time, call and ask for more time.  You may have to make a few calls.  Hang in there.

CP 71A or CP 71D – Reminder of Balance Due [Unpaid Tax, Penalty and/or Interest]
Your annual notice of what is still owed.  This notice will also inform you of your “currently not collectable” status.  How nice of them!

CP 90 – Final Notice of Intent to Levy and Notice of Right to a Hearing
As it says, they will levy.  The ball is in your court to fix what is wrong.  Get into compliance and work out payment arrangements.  You have 30 days to appeal the notice of levy.  You can appeal a lien separately as a lien appeal.  You can appeal a collection action with a specific appeal.  You appeal the tax by an offer, appeal, or tax court petition.  You have the right to a Collection Due Process (CDP) hearing.

CP 101 – Math Errors
This form consists of math errors the IRS says you made.  Examples are; computational errors, tax deposit errors, or no reply to additional information, etc.  If the IRS is wrong, correct them.  If they are right, just ignore the letter.

CP 161 – Underpaid Tax
This shows the underpaid tax according to the IRS records.  Pull your record of account and verify your payments and filing of returns, Order a Transcript. You will see how the IRS came up with the balance. If you owe it, pay it. Use EFTPS if you are set up or call the IRS office on the letter to resolve it. If you need to do an installment agreement or an offer-in-compromise consult us.

CP 210 or CP 220 – Penalty Notice for Failure to Deposit [FTD Penalty]
Check your records against the IRS.  Check circular E and make sure you understand when to make your deposits, and how much they should be.  You should not rely on IRS notices to tell you how often to deposit.  You also must use the correct deposit method. Certain large employers must use electronic deposits and not regular bank deposits.

CP 297
See CP-90 final notice

CP 501 or CP 502 – Reminder of Balance Due, etc.
These are initial requests before the CP-503 and CP-504 are issued.  You are in notice status now.  Probably no collection action yet if this is your only IRS contact.  What a great time to plan for your resolution with us!

CP 503 – Important Immediate Action Required
If you have received this notice, it means you have ignored the initial tax bill, CP-14, they skipped the CP-501 and CP-502 notices (or you received them prior to this), or your case is back in collections after being declared “currently not collectable” for a while.  If you owe for more than one tax period, you will receive this notice even if you made arrangements to make installment payments, or you have been placed in a “hardship” status.  It will say on the face of it to ignore it if you have entered into an installment agreement or paid the balance.  As long as you have confirmed this, then you can ignore the letter.

CP 504 – Urgent we Intend to Levy on Certain Assets
This means that you have 30 days before the IRS will actually seize (levy) a bank account or wages, etc.  If you owe for more than one tax period, you will receive one of these notices each year.  You may receive this notice even if you have made arrangements to make installment payments, or you have been placed in a “hardship” status. You may get this notice at any stage of collections.  It requires immediate attention. 

CP 515 – Request for your Tax Return [Filing Requirements]
If you have received this notice, it means you have failed to file a tax return, or at least the IRS has not logged in a copy on their computer system.  The type of return and tax period will be shown in the upper right corner as well as in the body of the notice.  File the return as soon as possible, otherwise your case will be transferred to an audit group who will prepare the return for you, without those necessary deductions you need to lower your liability.

CP 518 – Your Tax Return is Overdue [Filing Requirements] 
Well now you know.  Get it prepared and sent in.  If you owe more than you can pay, then prepare to deal with the collection division. 

CP 521 – This is an Installment Agreement Payment Notice
As long as you are meeting your terms of your payment plan, there is nothing else for you to do.  If you’ve broken your agreement, even if you didn’t receive this notice, take the initiative to immediately get back into your agreement.

CP 522 – Two Year Review for more Financial Statement Information
Be careful responding.  If your income has gone up, your monthly payments to the IRS will probably go up too.  Maybe your living expenses, especially medical, has increased too!  You want to maximize deductions to offset any increase in income.  If you need to lower your monthly payments, argue that too.

CP 523 – Notice of Intent to Levy [Intent to terminate Installment Agreement]
Oops, either you defaulted on your agreement or the IRS isn’t posting your payments properly.  Remember the IRS must receive payment by the due date of your monthly payments.  The IRS must also receive payment by the due dates for all taxes you are liable for.  Not a day late or a dollar short.  You have about a week to straighten it out.  Call and get it fixed.

CP 525 – 30 Day Letter to Appeal
After getting audited, the audit adjustment letter gives you 30 days to appeal if you disagree with the adjustments.  It’s a good idea to prepare this appeal along with your continued arguments and give it to the auditor.  This way you protect your rights if you and the auditor disagree about the changes.

CP 531 – Notice of Deficiency
This shows how much you owe for each year, and how to dispute the adjustments.  In many dispute cases you must pay first, and then file a claim for refund.  Otherwise you have 90 days to file a tax court petition.

CP 566 – Initial Contact Letter on an Audit
Be glad you received it.  Many audits take place without taxpayer notification.  At least you get a chance up front to defend your positions.  Make sure you prepare properly.

Form 668W – Wage Levy
Fill out the exemption portion so you can get the biggest paycheck.  This is a very serious collection action.  If you want your next full check, you need to take care of delinquent filings and information the IRS needs from you to determine a payback plan right away.  Get your information together and develop a defensible position of your financial situation.  File any delinquent returns, and pay any current payments of estimated taxes that are delinquent (or prove that you are not required to make one by providing your estimated tax calculation).  Provide this calculation anyway if your payment is less than it normally should be.  Then call for an immediate levy release.  Give the IRS the name and the fax number of the person in your company whose job it is to receive wage levy releases.  Your social security or retirement can be levied.

Form 668A – Levy
Same as above, except this is a one time bank or financial institution levy.  Works on anyone who is holding your money.  The funds are on hold for 21 days, then they are sent to the IRS collection person who sent out the levy.  Banks generally follow the rules on the one time nature of this levy.  On the back of the levy it states that this is a one time, not continuous levy.  It is for funds on hand the day it is received only. 

Letter 692 – Request for Consideration of Additional Findings
This comes with proposed adjustments to your tax return.  It gives you courses of action.  You can sign it, or request an appeal.  Be careful, you usually have less than 15 days from your receipt of the letter, to take action.

Letter 1058 – Final Notice of Intent to Levy and Notice of your Rights to a Hearing.  Please Respond Immediately.
If you received this notice, it means you owe tax and have ignored Letter 2050.  This is one the most serious collection attempt notices the IRS sends to a taxpayer owing tax.  It must be responded to or you will lose appeal rights and the IRS will levy anything they can find.  As always prepare a preliminary financial statement to know where you stand before contacting the IRS.

Letter 1085 – This is a 30 Day Letter to Protest an Assessment on a 6020(B)
This is a 30 day letter to protest an IRS tax assessment on a 6020(B), which is the IRS code for a payroll report they filled out and filed for you.  Don’t just accept their figures, even if they are close to the actual amounts.  Your 941 payroll reports must balance to the 940, the state reports, W-2′s, etc.  At a minimum, you must see that the total gross wages for the year is the same for each report.  Hire a professional to help you if you can’t do this on your own.

Letter 1153 – Trust Fund Recovery Penalty
The remaining FICA and withholding not collected from the business is now being charged to you.  Very serious.  Different regions of the country rely on different court rulings to settle some disputes.  Basically you must show that you didn’t have authority to direct the company’s funds and that you did not have knowledge of the taxes not being paid.  You should send the RO your appeal along with your proof that you are not liable, just in case they don’t agree with you.  It shows that you are very serious.  Many people will wait on this part until it is absolutely necessary.  Sometimes RO’s will chase everyone who has signature authority on the bank account, any stockholder, any signer of a tax form, or listed officer, and then leave it up to you to defend yourself.

Letter 1389 – 30 Days Protest on Tax Shelter
This gives you 30 days to protest changes made to your return because of your tax shelter activity.  Sign it or appeal it.

CP 2000 – We are Proposing Changes to your Return [Proposed Adjustment for Underpayment/Overpayment] If you received this notice, it means that you have omitted income from your return or the amount of income or expenses on your return does not match the amount reported to the IRS.  Respond immediately, with all the proof you have nothing to worry about.  Do not shortcut your proof.

Letter 2050 – Please Call us about your Overdue Taxes or Returns
If you received this notice, it means you owe tax and have ignored previous notices CP-504 or CP-523 or you have delinquent tax returns.  You may receive this notice even if you have made arrangements to make installment payments or you have been placed in a “hardship” status.  Call and explain you will spend time now preparing the delinquent returns, and preparing your financial statements.

Letter 3016 – Preliminary Determination Letter
You have 30 days to appeal, if the IRS turned down your request for innocent spouse relief.  Go back and develop your arguments before calling for a new determination.  If you can’t get the reviewer to understand your position, then file an appeal in a timely manner.

Letter 3172 – Notice of Federal Tax Lien and Right to a Hearing
You now have a real property lien in a particular county only.  Just the county listed.  Not all counties you own property in.  If the lien causes a hardship, then appeal it.

Letter 3174(P) – Notice of Levy
Similar to letter 1058.  Used when a taxpayer changes address.  This needs immediate attention.  You avoid levies by resolving the collection issues, or you can appeal based on a hardship.

Letter 3173 – 3rd Party Contact
This letter advises taxpayers that the IRS may be contacting 3rd parties to ask questions.  You can’t really do anything about it.  Don’t worry though, your personal information will be kept confidential.

Letter 3219 – Notice of Deficiency
Issued to a taxpayer before an assessment is made.  Usually the result of an audit.  If you disagree, you need to file a tax court petition within 90 days.  You can file an appeal to contest it.  Don’t worry, if you miss the deadline for an appeal you can usually get Appeals to take the case, by filing a tax court petition.  Once accepted by the IRS legal division you can call and convince them that this is really a case to be heard by Appeals.

Letter 3228 – Annual Reminder Notice
This is a notice to let you know what taxes and years you owe.  This is sent yearly as long as there is an unpaid balance.

Letter 3391 – 30 Day Notification Letter
The IRS says you owe for the years stated.  The letter shows you what the liability is based on.  Agree to it or protest.  However, if you never filed the return, then file it.  Use the IRS numbers for income and expense if you feel comfortable with them.  If you just want to accept their information without filing a return, ask for a signature form so you can show you signed the return they prepared. The IRS files an SFR (substitute for return) using the 3rd party payer information they have on file.  This includes the W-2′s, K-1′s, 1099′s, etc. filed under your tax ID number.  Signing a return and having the IRS enter it on their system will start the Statue of Limitations on collections.  IRS can try to collect tax liabilities way beyond 10 years if the taxpayer never starts the running of the collection statute.  The statute starts when the taxpayer files a signed return accepted by the IRS.

If you have any kind of IRS tax liability (large or small) and would like to be considered for an streamlined Installment Payment Plan (liabilities under $50,000), Offer in Compromise, partial payment plan for existing life of statute or noncollectable status) contact us for a FREE confidential consultation regarding your options please call Stephen B. Jordan EA at 603.893.9336 or go to our website Stephen B Jordan EA

Document Value - Types of Authority - IRC Regs: 1.6662-4(d)(3)(iii)

Federal Tax Info - 2009 to 2014

Federal Tax Info - 2009 to 2014

• To reduce taxable income, taxpayers can choose between itemizing tax deductions (which requires accurate record-keeping and documentation) or taking the standard deduction.  The standard deduction is a fixed amount that reduces the amount of money on which taxpayers calculate tax to the federal government.   Generally, it's better to itemize if you can show that you have more itemized deductions than the amount of the standard deduction.  Itemized deductions include:
• mortgage interest
• property taxes
• state income tax
• medical expenses
• charitable donations
• union dues
• unreimbursed employee expenses  

• IRS Publication 501 outlines each year’s standard deduction amounts. There are circumstances where increases can be made to the standard deduction.  For example, if you are 65 or older, or blind, the standard deduction increases. 
• The personal exemption is another deduction from your income that you can take for yourself, spouse and for any dependents.
• The information contained in this presentation is current as of the date it was presented. It should not be considered official guidance.

Federal Tax Info -- Source: IRC, Rev Proc's, Bulletins & Announcements

Who Must File?	2009	2010	2011	2012	2013	2014
Filing Status/Age Gross Income at least:
Single-Under 65	9,350	9,350	9,500	9,750	10,000	10,150
Single-65 or older	10,750	10,750	10,950	11,200	11,500	11,700
MfJ - Under 65 (both spouses)	18,700	18,700	19,000	19,500	20,000	20,300
MfJ - 65 or older (one spouse)	19,800	19,800	20,150	20,650	21,200	21,500
MfJ - 65 or older (both spouses)	20,900	20,900	21,300	21,800	22,400	22,700
MfS - Any age	3,650	3,650	3,700	3,800	3,900	3,950
HofH - Under 65	12,000	12,050	12,200	12,500	12,850	13,050
HofH - 65 or older	13,400	13,450	13,650	13,950	14,350	14,600
QW - Under 65	15,050	15,050	15,300	15,700	16,100	16,350
QW - 65 or older	16,150	16,150	16,450	16,850	17,300	17,550
Standard deduction/ Personal exemption	2009	2010	2011	2012	2013	2014
Standard Deduction
Single	5,700	5,700	5,800	5,950	6,100	6,200
MfJ/QW	11,400	11,400	11,600	11,900	12,200	12,400
MfS	5,700	5,700	5,800	5,950	6,100	6,200
HofH	8,350	8,400	8,500	8,700	8,950	9,100
Additional standard  deduction allowed for taxpayers blind or age 65 or older at end of tax year
MfJ/QW/MfS   Single/HofH	1,100 1,400	1,100 1,400	1,150 1,450	1,150 1,450	1,200 1,500	1,200 1,550
Child Tax Credit per child < age 17	1,000	1,000	1,000	1,000	1,000	1,000
Nondiscrimination Compensation Limits  Highly Compensated  Key employee  Qualified plans  Defined Benefit plan	110,000 160,000 245,000 195,000	110,000 160,000 245,000 195,000	110,000 160,000 245,000 195,000	115,000 165,000 250,000 200,000	115,000 165,000 255,000 205,000	115,000 170,000 260,000 210,000
Dependent Standard Deduction (claimed on another person's  tax return)     Greater of: or earned  income plus	950 300	950 300	950 300	950 300	1,000 350	1,000 350
Personal Exemption	3,650	3,650	3,700	3,800	3,900	3,950
Personal Exemption Phaseout 2% for every $2,500 over  AGI limit starts@   Single AGI limit   MfJ AGI limit	--	--	--	--	250,000 300,000	254,200 305,050
Foreign  Earned income    exclusion Max housing exp  Housing exclusion	91,400 27,420 12,796	91,500 27,450 12,810	92,900 27,870 13,006	95,100 28,530 13,314	97,600 29,280 13,664	99,200 29,760 13,888
Earned Income  Tax Credit	2009	2010	2011	2012	2013	2014
EITC is Zero @ AGI Married filing Joint with 3+ children with 2 children with 1 child with no children	48,279 45,295 40,463 18,440	48,362 45,373 40,545 18,470	49,078 46,044 41,132 18,740	50,270 47,162 42,130 19,190	51,567 48,378 43,210 19,680	52,427 49,186 43,941 20,020
EITC is zero @ AGI Single/HofH/QW with 3+ children with 2 children with 1 child with no children	43,279 40,295 35,463 13,440	43,352 40,363 35,535 13,460	43,998 40,964 36,052 13,660	45,060 41,952 36,920 13,980	46,227 43,038 37,870 14,340	46,997 43,756 38,511 14,590
EITC max credit with 3+ children with 2 children with 1 child with no children	5,657 5,028 3,043 457	5,666 5,036 3,050 457	5,751 5,112 3,094 464	5,891 5,236 3,169 475	6,044 5,372 3,250 487	6,143 5,460 3,305 496
Gift & Estate	2009	2010	2011	2012	2013	2014
Personal estate  exemption (Portability between  spouses-TRA2010)	3.5M	Repealed	5M	5.12M	5.25M	5.34M
GST tax exemption	3.5M	Repealed	5M	5.12M	5.25M	5.34M
Lifetime Gift-tax  exemption	1M	1M	5M	5.12M	5.25M	5.34M
Estate/GST  max/top tax rate	45%	35%	35%	35%	40%	40%
Gift-tax  max/top tax rate	45%	35%	35%	35%	40%	40%
Annual Exclusion Gift tax exclusion Gifts non-citizen spouse	13,000 133,000	13,000 134,000	13,000 136,000	13,000 139,000	14,000 143,000	14,000 145,000
Mileage Rates	2009	2010	2011	2012	2013	2014
Standard Mileage  Rates (cents/mile) §274(d)
Business	55	50	51 55.5	55.5	56.5	56
Depreciation  (component)	21	23	22	23	23	22
Medical & moving	24	16.5	19 23.5	24	24	23.5
Charitable	14	14	14	14	14	14
Lease inclusion Table When FMV is over   Automobile   Truck/Van	18,500 18,500	16,700 17,000	18,500 19,000	18,500 19,000	19,000 19,000	18,500 19,000
Alternative Min Tax	2009	2010	2011	2012	2013	2014
AMT Exemption
MfJ/QW filers	70,950	72,450	74,450	78,750	80,800	82,100
Single/HofH filers	46,700	47,450	48,450	50,600	51,900	52,800
MfS filers	35,475	36,225	37,225	39,375	40,400	41,050
AMT tax rate (low26%/high28%) high rate starts
MfJ/QW filers	175,000	175,000	175,000	175,000	175,000	182,500
Single/HofH filers	175,000	175,000	175,000	175,000	175,000	182,500
MfS filers	87,500	87,500	87,500	87,500	87,500	91,250
Education Provisions	2009	2010	2011	2012	2013	2014
Education Provisions  (only one education  benefit for same  qualifying expense)
American Opportunity  (modified HOPE) credit* (1st 4 years) (40% refundable)	2,500	2,500	2,500	2,500	2,500	2,500
Lifetime  Learning credit** (non-refundable)	2,000	2,000	2,000	2,000	2,000	2,000
Tuition & fees  deduction**	4,000	4,000	4,000	4,000	4,000	4,000
Student loan  interest deduction**	2,500	2,500	2,500	2,500	2,500	2,500
Coverdall Education Savings Account contribution*	2,000	2,000	2,000	2,000	2,000	2,000
§529 Contribution   Annual limit/Donor*    * per student  ** per family	13,000	13,000	13,000	13,000	14,000	14,000
Depreciation/§179	2009	2010	2011	2012	2013	2014
Depreciation limits for vehicles put in use:
1st year cap: Bonus Depr. (New)	10,960	11,060	11,060	11,160	11,160	11,160
No Bonus (Used)	2,960	3,060	3,060	3,160	3,160	3,160
2nd year limit	4,800	4,900	4,900	5,100	5,100	5,100
3rd year limit	2,850	2,950	2,950	3,050	3,050	3,050
4th etc year limit	1,775	1,775	1,775	1,875	1,875	1,875
Code §179 Vehicle Expensing - 1st year
SUV limit (per vehicle) for Trucks & Vans having loaded GVW  over 6,000 lbs. (Plus  50% or 100% additional  1st year Bonus  depreciation. Subject  to depreciation dollar  limits within MACRS  allowable percentages)	25,000	25,000	25,000	25,000	25,000	25,000
Code §179
Expensing	250K	500K	500K	500K	500K	500K
Investment limitation (on cost of property) Phase-out begins when §179 property exceeds	800K	2M	2M	2M	2M	2M
Capital gains	2009	2010	2011	2012	2013	2014
Long term Capital Gains & Qualifying Dividends Tax Rate plus 3.8% Medicare  surtax on lessor of  Net Investment Income (NII)  or AGI >$250K (MfJ) or >$200K (single) ATRA2012 IRC §1411	--	--	--	--	3.8%	3.8%
For taxpayers in  10% or 15% bracket	-0-%	-0-%	-0-%	-0-%	-0-%	-0-%
Higher tax  brackets <39.6%   Taxable income  >$450K (MfJ) or >$400K (single) ATRA2012	15% --	15% --	15% --	15% --	15% 20%	15% 20%
Tax on §1250 gain depreciation recapture (buildings) TRA1997	25%	25%	25%	25%	25%	25%
Capital gains tax rate on collectibles (gold, coins, art, antiques) §1202	28%	28%	28%	28%	28%	28%
Retirement	2009	2010	2011	2012	2013	2014
401(k),403(b),SARSEP 457 Annual Elective Deferral Limit
Under age 50	16,500	16,500	16,500	17,000	17,500	17,500
Age 50 or older	22,000	22,000	22,000	22,500	23,000	23,000
SEP/Profit-sharing  contribution limit (limited to 25%  of compensation)    Solo 401(k)  (limited to 100%  of compensation) §415(c)(1)	49,000	49,000	49,000	50,000	51,000	52,000
Saver's credit Nonrefundable    Individual   Couples	1,000 2,000	1,000 2,000	1,000 2,000	1,000 2,000	1,000 2,000	1,000 2,000
SIMPLE IRA
Under age 50   Age 50 or older	11,500 14,000	11,500 14,000	11,500 14,000	11,500 14,000	12,000 14,500	12,000 14,500
IRA Contribution limits (Lesser of this or earned income)
IRA or Roth   Under age 50   Age 50 or older	5,000 6,000	5,000 6,000	5,000 6,000	5,000 6,000	5,500 6,500	5,500 6,500
Social Security	2009	2010	2011	2012	2013	2014
Social Security items: Taxable when Modified Adjusted Gross Income (MAGI) is more than:
50% Taxable
Single	25,000	25,000	25,000	25,000	25,000	25,000
Married	32,000	32,000	32,000	32,000	32,000	32,000
85% Taxable
Single	34,000	34,000	34,000	34,000	34,000	34,000
Married	44,000	44,000	44,000	44,000	44,000	44,000
Benefits Planner
Quarter of Coverage: Earnings needed  to earn one Social  Security credit	1,090	1,120	1,120	1,130	1,160	1,200
Max earnings: Social Security recipients
Under Full  Retirement age  (Loss of $1 in benefit for each $2 over limit)	14,160	14,160	14,160	14,640	15,120	15,480
Year of Full  Retirement age (Loss of $1 in benefit  for each $3 over limit)	37,680	37,680	37,680	38,880	40,080	41,400
After Full  Retirement age	no limit	no limit	no limit	no limit	no limit	no limit
Social Security Benefits
Max earnings  subject to  Social Security tax	106,800	106,800	106,800	110,100	113,700	117,000
Max earnings subject to Medicare tax plus 0.9% Medicare  surtax withheld on taxable income >$250K (MfJ) or >$200K (single) Obama Care	no limit	no limit	no limit	no limit	no limit	no limit
Medicare Part B Premium-base/year Yearly income <$85K (doctor visits, lab  tests, surgeries,  ambulance, supplies)	1,157	1,157	1,385	1,199	1,259	1,259
General deductions & exclusions	2009	2010	2011	2012	2013	2014
Adoption credit &  exclusion (non-refundable)	12,150	13,170	13,360	12,650	12,970	13,190
Nanny tax threshhold:   Amount FICA begins   Amount FUTA begins Household EE (Sch H)	1,700 1,000	1,700 1,000	1,700 1,000	1,800 1,000	1,800 1,000	1,900 1,000
Kiddie Tax threshold (Kids under 19) Kid's unearned income  over earnings limit taxed @ parent's  highest rate	1,900	1,900	1,900	1,900	2,000	2,000
Attorney fee award limitation (per hour) §7430(c)(1)(B)(iii)	180	180	180	180	190	190
Itemized Deductions Phaseout max 80% Reduced by 3% of AGI limit starts@   Single AGI limit   MfJ AGI limit	--	--	--	--	250,000 300,000	254,200 305,050
Transit pass/highway Commuter fringe (per month) vanpool, bus, ferry, rail & all public  transportation	230	230	230	125	125	130
Parking fringe (per month)	230	230	230	240	245	250
HSA  Contribution Limit  100% Deductible  Single  Family  Catch-up (55+)	3,000 5,950 1,000	3,050 6,150 1,000	3,050 6,150 1,000	3,100 6,250 1,000	3,250 6,450 1,000	3,300 6,550 1,000
HDHP Minimum deductible  Single  Family	1,150 2,300	1,200 2,400	1,200 2,400	1,200 2,400	1,250 2,500	1,250 2,500
HDHP Maximum out-of-pocket  Single  Family	5,800 11,600	5,950 11,900	5,950 11,900	6,050 12,100	6,250 12,500	6,350 12,700
LTC Premium deduction limit   Age 40 or less   Age 41 to 50   Age 51 to 60   Age 61 to 70   Age over 70	320 600 1,190 3,180 3,980	330 620 1,230 3,290 4,110	340 640 1,270 3,390 4,240	350 660 1,310 3,500 4,370	360 680 1,360 3,640 4,550	370 700 1,400 3,720 4,660
LTC Benefit   Max daily excludable	280	290	300	310	320	330
Flex-Spending Account  Max excludable ($500 max unused  annual carryover)	no limit	no limit	no limit	no limit	2,500	2,500
Property exempt from levy §6334(a)(2)  Household effects  Tools of the trade	8,230 4,120	8,250 4,120	8,370 4,180	8,570 4,290	8,790 4,400	8,940 4,470
Per Diem Rates §274(d) High-cost locality  Lodging    Meals & Incidentals  Max high-cost rate	198 58 256	193 65 258	168 65 233	177 65 242	177 65 242	186 65 251
Low-cost locality Lodging Meals & Incidentals  Max low-cost rate	113 45 158	111 52 163	108 52 160	111 52 163	111 52 163	118 52 170

---♥---
Please copy & distribute freely
---♥---
This information is provided for general information and educational purposes only.
It is based upon publicly available information from sources believed to be reliable.
No assurance to accuracy or completeness can be made,
 and information may change at any time and without notice.