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STRATEGIC ISSUES...ONLINE    
For week of September 12, 2005, Issue #228
Featured Articles:
1.  IRS Increases Rate of Mileage Deduction for Business Driving
2.  Focus on Fraud:  Fraud Prevention Begins With You
3.  Tech Tip Weekly:  Looking at MS Outlook Express File Formats
4.  Compliance Calendar
 
1.  IRS Increases Rate of Mileage Deduction for Business Driving
 
The Internal Revenue Service responded to the steep cost of gasoline by announcing on Friday a midyear change to the mileage rate used for business-expense deductions.
 
The standard mileage-rate deduction is jumping to 48.5 cents a mile for business miles driven from September 1 through December 31 from the 40.5 cent rate that will remain in effect for the first eight months of the year, the agency said.
 
The eight-cent increase is the largest one-time change to the mileage deduction.  The standard mileage deduction is limited to companies using four vehicles or fewer.  But for larger companies ineligible to take the deduction, the IRSs standard mileage figure is widely used as a benchmark in setting reimbursement rates for employees' driving expenses.
 
Generally, the IRS announces the mileage rate for the next year in the fall of the preceding year, but the volatile nature of gas prices prompted the agency to alter its plans.
 
Taxpayers claiming the standard mileage rate for moving expenses or for driving related to medical needs will see the rate rise to 22 cents a mile for the final four months of the year, up from 15 cents for the first eight months.  The rate for driving related to charitable purposes, which is set by Congress, remains at 14 cents a mile.
 
Source:  Dow Jones Newswires
 
2.  Focus on Fraud:  Fraud Prevention Begins With You
 
In the building where you work, I think most people would feel reasonably secure.
 
However, I wonder how many people feel any vulnerability for identity theft?  And I don't mean identity theft from interaction on the Internet.
 
What if, a crime occurs within your building.  A handbag disappears from a secretary's desk.  No one may have seen who took it.  No one saw where it went.  But it was gone.  Cash, credit cards, driver's license, ID cards, family photos and a doctor's prescription gone.  An individual's identity potentially compromised.
 
Continued...next week.
 
3.  Tech Tip Weekly:  Looking at MS Outlook Express File Formats
 
MS Outlook Express can use one of two file formats for the e-mail messages that you compose: Rich Text and Plain Text.  The Rich Text (or HTML) format can display all the formatting you see on Web pages on the Internet (including graphics).  The Plain Text format can display only text characters similar to a file opened in the Windows Notepad text-editing utility).
 
When you first install MS Outlook Express, it uses the Rich Text (HTML) format for any new e-mail messages that you compose.  This setting is fine as long as the e-mail program used by the recipient(s) of the message can deal with HTML formatting.  (Many older e-mail programs, especially ones running under the UNIX operating system, cannot.)
 
If you send a message using the Rich Text (HTML) format to someone whose e-mail program can't accept anything but pain text, the message comes to the recipient as plain text with an HTML document attached.  That way, he or she can view all the HTML formatting bells and whistles that you added to the original e-mail message by opening the attached document in her Web browser.
 
4.  Compliance Calendar
 
September 15
-Monthly depositors deposit Social Security, Medicare and withheld income tax for August.
 
-Individuals should make payment of their 2005 estimated tax if they are not paying enough tax for the year through withholding.  Use Form 1040-ES.  This is the third installment due for 2005 estimated tax.
 
-Corporations should file a 2004 calendar year income tax return (Form 1120 or 1120-A) and pay any tax due.  This due date applies only for corporations that timely requested an automatic six-month extension.
 
S corps should file a 2004 calendar year income tax return (From 1120S) and pay any tax due.  This due date applies only for S corps that timely requested an automatic six-month extension.
 
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