December 17, 2007
Greetings! The winter season is upon us and everyone is busy planning for Christmas. The CPAs are preparing for the upcoming tax filing season like the squirrels packing nuts. The tax law changes are not as extensive in past years but a stalled AMT patch in Congress is presently threatening the processing of individual returns by the IRS.
If the Congress does not extend the AMT exemption provisions from last year individuals could be delayed until the first week of February 2008 to receive any potential refunds. It takes the IRS about 5-6 weeks to reprogram its computer system for last minute changes in the tax code as passed by Congress. So we will keep you posted.
2007 is the last year for energy credits. Please Contact Us for further detail.
Rules have been tightened on the recording of Charitable Contributions. The IRS will no longer accept a log book as substantiation for cash contributions. The IRS now requires a canceled check, bank statement, or receipt from the donee listing the organizations name, date of contribution, and the amount. Also any gift given with a value of $500 or more must have an appraisal. Keep in mind that clothing and household goods must be in good condition in order to take a deduction. Charitable mileage for Hurricane Katrina Relief is $0.32 per mile; all other charitable mileage is $0.14 per mile.
We will be putting our 2007 tax law changes in once the final bill is passed in Congress.
Please don’t hesitate to call or send an e-mail if you have any questions for us or want further analysis on the information above. We look forward to visiting with you and preparing the best possible return again in 2008!
Lawrence R. Yoder, CPA
Tax Advice Disclosure: To ensure compliance with requirements imposed by the IRS under Circular 230 we inform you that any U.S. federal tax advice contained in this communication (including any attachments), unless specifically stated was not intended and cannot be used for the purpose of avoiding penalties under the Internal Revenue Code and or promoting, marketing or recommending to another party any matters addressed herein.