This Frequently Asked Questions (FAQ) page compiles answers to some general tax questions. Specific tax issues are best answered by contacting your accountant. The IRS website also provides answers to your questions. Their Tax FAQ covers many general tax questions. Also, the IRS issues publications on more specific topics. Find the appropriate one in the Topical Index to IRS Forms and Publications. Documents are in .PDF format. To view, you must have Adobe Acrobat Reader installed.

Questions: Where can I find particular tax forms? How long must I keep tax records? What is the standard mileage rate? Is an individual an employee or an independent contractor? What are the rules regarding sales tax? Answers: Where can I find particular tax forms? For your convenience, we have provided certain payroll forms as downloads on our site. Other forms can be downloaded from the IRS or Minnesota Revenue. Top How long must I keep tax records? Records and documents must be retained until the statute of limitations expires. Generally, this is 3 years for tax returns and supporting records. Employment records must be retained for at least 7 years. Records regarding fixed assets or property are used to determine any gain or loss and should be retained for 3 years after the sale is reported. For a complete listing of the statutes of limitations, read the following document: IRS Statute of Limitation Information Top What is the standard mileage rate? In addition to the amounts listed on the table below, there are special deduction rates for charitable use of providing relief related to Hurricane Katrina. These amounts are 34 cents per mile during Sept-Dec, 2005, and 32 cents per mile in 2006. Mileage Rates Business Medical/ Moving Volunteer/ Charitable 2010 50 cents 16.5 cents 14 cents 2009 55 cents 24 cents 14 cents 2008 Jul-Dec 58.5 cents 27 cents 14 cents 2008 Jan-Jun 50.5 cents 19 cents 14 cents 2007 48.5 cents 20 cents 14 cents 2006 44.5 cents 18 cents 14 cents 2005 Sept-Dec 48.5 cents 22 cents 14 cents 2005 Jan-Aug 40.5 cents 15 cents 14 cents 2004 37.5 cents 14 cents 14 cents Top Is an individual an employee or an independent contractor? As a general rule, you have the right to control or direct only the result of the work done by an independent contractor and not the means and methods of accomplishing the result. Meanwhile, you can control what and how services are performed by an employee. We compiled a list of the 20 factors the IRS uses to judge whether and individual is an employee or independent contractor. The key difference between an employee and an independent contractor is control--behavioral and financial control. The type of relationship between parties also matters. The IRS addresses this in Tax Topic 762. This classification matters for reporting and tax purposes. Payments to an independent contractor of $600 or more are reported on Form 1099-MISC. Payments to employees are subject to payroll taxes and are reported on Form W-2. Top What are the rules regarding sales tax? Sales tax rules are too numerous to list here. Please refer to the Sales and Use Tax section of the Minnesota Revenue website. Contact us if you cannot find an answer to your question there. If necessary, we will research the issue for you. Top