New Mileage Rates for 2005
Beginning January 1, 2005, the standard mileage rates for the business use of a car (including vans, pickups or SUVs) will be 40.5 cents; 15 cents a mile when computing deductible medical or moving expenses; and 14 cents a mile when giving services to a charitable organization.

California Tax Amnesty
California will provide tax amnesty to individuals, businesses, fiduciaries, estates, and trusts for tax years 2002 and prior. The amnesty period will run from February 1, 2005 through March 31, 2005. (Applications must be postmarked on or before April 1, 2005.)

To participate, the amnesty application must be postmarked on or before April 1, 2005, the original or amended tax return must be filed, and either the applicable tax and interest due must be paid or an installment agreement must be initiated before May 31, 2005. Amnesty does not apply to interest due.

The IRS is not participating in the amnesty program; however, any information disclosed to California will be shared with the IRS.

Document Retention Chart
Generally, records such as tax returns and related documents should be kept for a minimum of 6 to 7 years. Records pertaining to the purchase of a home or other such assets should be kept for a longer period. The Statute of Limitations is 3 years for Federal and 4 years for California returns or under certain circumstances, generally cases involving fraud, the Statute is 6 years..

However, if you fail to file a return, the Statute of Limitations never closes. The AICPA in conjunction with the Office of the Federal Register issued a checklist which may be used as a guide. However, in some cases your advisor should be consulted due to other legal considerations.

Retention of Records - - How Long?
Accident Reports/Claims (Settled Cases)	7 Years
Accounts Payable/Receivable Ledgers And Schedules	7 Years
Audit Reports	PERMANENTLY
Bank Reconciliations	2 Years
Bank Statements	3 Years
Capital Stock And Bond Records: (Ledgers Transfer Registers, Stubs Showing Issues, Record Of Interest Coupons, Options, Etc.)	PERMANENTLY
Cash Books	PERMANENTLY
Charts Of Accounts	PERMANENTLY
Checks (Canceled)	7 Years
Checks: (Canceled For Important Payments, I.E. Taxes, Purchase Of Property, Special Contracts, Etc. Checks Should Be Filled With The Papers Pertaining To The Underlying Transaction)	PERMANENTLY
Contracts, Mortgages, Notes And Leases: (Expired) (Still In Effect)	7 Years PERMANENTLY
Correspondence (General)	2 Years
Correspondence (Legal And Important Matters)	PERMANENTLY
Correspondence (Routine) With Customers/Vendors	2 Years
Deeds, Mortgages And Bills Of Sale	PERMANENTLY
Depreciation Schedules	PERMANENTLY
Duplicate Deposit Slips	2 Years
Employment Applications	3 Years
Expense Analysis / Expense Distribution Schedules Financial Statements (Year-end Other Optional)	7 Years PERMANENTLY
Garnishments	7 Years
General / Private Ledgers, Year-end Trial Balance	PERMANENTLY
Insurance Policies (Expired)	3 Years
Insurance Records, Current Accident Reports, Claims Policies, Etc.	PERMANENTLY
Inventories of products, materials, and supplies	7 Years
Invoices (to customers, from vendors)	7 Years
Journals	PERMANENTLY
Magnetic Tape And Tab Cards	1 Year
Minute Books Of Directors, Stockholders, Bylaws And Charter	PERMANENTLY
Notes Receivable Ledgers And Schedules	7 Years
Options Records (Expired)	7 Years
Patents And Related Papers	PERMANENTLY
Payroll Records And Summaries	7 Years
Personnel Files (Terminated)	7 Years
Petty Cash Vouchers	3 Years
Physical Inventory Tags	3 Years
Plant Cost Ledgers	7 Years
Property Appraisals By Outside Appraisers	PERMANENTLY
Property Records, Including Costs, Depreciation Reserves, Year-end Trial Balances, Depreciation Schedules, Blueprints And Plans	PERMANENTLY
Purchase Orders (Except Purchasing Department Copy )	1 Year
Purchase Orders (Purchase Department Copy )	7 Years
Receiving Sheets	1 Year
Retirement And Pension Records	PERMANENTLY
Requisitions	1 Year
Sales Commission Reports	3 Years
Sales Records	7 Years
Scrap And Salvage Records (Inventories Sales, Etc. )	7 Years
Stenographer's Notebooks	1 Year
Stock And Bond Certificates (Canceled)	7 Years
Stockroom Withdrawal Form	1 Year
Subsidiary Ledgers	7 Years
Tax Returns And Worksheets, Revenue Agents' Reports And Other Documents Relation To Determination Of Income Of Income Tax Liability	7 Years
Time Books / Cards	7 Years
Trademark Registration And Copyrights	PERMANENTLY
Training Manuals	PERMANENTLY
Union Agreements	PERMANENTLY
Voucher Register And Schedules	7 Years
Vouchers For Payments To Vendors, Employees, Etc (Includes Allowances and Reimbursements of Employees, Officers, etc. for Travel and Entertainment Expenses)	7 Years
Withholding Tax Statements	7 Years