If you have independent contractors who do work for you, today is the last day to prepare and issue 1099s for them. January 31 is the official due date, but since it falls on a Saturday this year, you have until Monday February 2 to complete your forms.

Basically, you must prepare a 1099-MISC if you paid $600 or more to an individual to perform services for you. Some examples would be web designers, eBay assistants, virtual assistants, affiliates, accountants, etc.

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Just a reminder that your fourth quarter 2008 tax estimate is due on January 15, 2009.

This estimate goes towards your 2008 tax liability so it reduces the amount you will owe on your 2008 tax return when you file.

To avoid the penalty for not paying enough estimated tax, you need to pay in at least 90% of your 2008 tax liability or 100% of your 2007 tax liability, whichever is less.

Alternatively, you can choose to file and pay your 2008 taxes by January...

In the second half of 2008, the IRS increased the standard mileage rate to 58.5 cents per mile from 50.5 cents per mile for people who use their personal car for business use. This was in response to skyrocketing gas prices earlier in the year.

Since then, gas prices have dropped dramatically. Prices were as high as $4.10 in some states during the summertime, but have dropped to a national average of $1.90 in this last week in November.

I was wondering how the IRS...