Filing Season Opens on Time!

Filing Season Opens on Time Except for Certain Taxpayers Potentially Affected by AMT Patch


IR-2007-209, Dec. 27, 2007

WASHINGTON — The Internal Revenue Service announced today that the upcoming tax season is expected to start on time for everyone except certain taxpayers potentially affected by late enactment of the Alternative Minimum Tax “patch.”

Following extensive work in recent weeks, the IRS expects to be able to begin processing returns for the vast majority of taxpayers in mid-January. However, as many as 13.5 million taxpayers using five forms related to the Alternative Minimum Tax (AMT) legislation will have to wait to file tax returns until the IRS completes the reprogramming of its systems for the new law.

The IRS has targeted Feb. 11, as the potential starting date for taxpayers to begin submitting the five AMT-related returns affected by the legislation. The February date allows the IRS enough time to update and test its systems to accommodate the AMT changes without major disruptions to other operations related to the tax season. As the IRS has said previously, it will take approximately seven weeks after the AMT patch was approved to update IRS processing systems completely.

Although as many as 13.5 million taxpayers will not be able to file their returns until Feb. 11, the effect of the delay may be lessened by the fact that under previous filing patterns only between 3 million to 4 million taxpayers file returns with the five affected forms during these early weeks in the filing season.

“We regret the inconvenience the delay will mean for millions of early tax filers, especially those expecting a refund,” said Linda Stiff, Acting IRS Commissioner. “We’ve taken extraordinary steps to figure out a way that we can start the filing season on time for most taxpayers, including some using AMT-related forms. Our goal has always been to make sure we can accurately process tax returns while getting refunds to taxpayers as quickly as possible.”

The February delay caused by the AMT patch will affect taxpayers using any of these five forms:

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Form 8863, Education Credits.
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Form 5695, Residential Energy Credits.
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Form 1040A’s Schedule 2, Child and Dependent Care Expenses for Form 1040A Filers.
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Form 8396, Mortgage Interest Credit.
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Form 8859, District of Columbia First-Time Homebuyer Credit.

While these five forms require significant additional reprogramming due to the AMT patch, the IRS has been able to reprogram its systems to begin processing seven other AMT-related forms, including Form 6251, Alternative Minimum Tax – Individuals. Taxpayers filing these seven forms should not experience delays in filing, and the IRS expects to begin processing those returns starting on Jan. 14.

Electronic returns involving those five forms will not be accepted until systems are updated in February; similarly, paper filers should wait to file as well. All other e-file and paper returns will be accepted starting in January. The IRS urges affected taxpayers to file electronically in order to reduce wait times for their refunds. E-file with direct deposit gets refunds in as little as 10 days, while paper returns take four to six weeks.

“E-file is a great option for everyone, especially if they are affected by the AMT,” said Richard Spires, IRS Deputy Commissioner for Operations Support. “Filing electronically will get people their refunds faster, and e-file greatly reduces the chances for making an error on the AMT or other tax issues.”

In addition to filing electronically, the IRS urges taxpayers to take simple steps to avoid problems:

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Taxpayers filing electronically should make sure to update their tax software in order to get the latest AMT updates.
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Taxpayers with $54,000 or less in Adjusted Gross Income can use Free File to electronically file their returns for free. Free File will only be available by visiting the official IRS web site at IRS.gov. In all, 90 million taxpayers qualify for this free service.
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Taxpayers who use tax software to print out paper copies of tax forms should make sure they update their software before printing out forms. Taxpayers using paper forms can also visit IRS.gov to get updated copies of AMT forms.

The IRS has created a special section on IRS.gov to provide taxpayers with additional information and copies of updated forms affected by the AMT. In recent days, the IRS has posted updated copies of all forms affected by the late enactment of the AMT patch by Congress.

The IRS also reminds taxpayers that printed tax packages, which will begin arriving in the mail around New Year’s, went to the printer in November before the AMT changes were enacted. The packages reflect the law in effect at the time of printing. The tax packages include cautionary language to taxpayers that late legislation was pending.

The IRS is also working closely with tax professionals and the tax preparation software community to make sure they can help taxpayers with all of the latest developments on the enactment of the AMT patch and other tax changes.

“The IRS is going to continue to do everything it can to make this a fully successful filing season for the nation’s taxpayers,” Stiff said. “We will continue to work to keep taxpayers up to date and make this situation as easy as possible for everyone.”

Alternative Minimum Tax (AMT) – How It Affects Filing Season 2008

Dec. 27, 2007

The upcoming tax season is expected to start on time for everyone except for certain taxpayers potentially affected by late enactment of the Alternative Minimum Tax “patch.” Following extensive work in recent weeks, the IRS expects to be able to begin processing returns for the vast majority of taxpayers in mid-January. However, as many as 13.5 million taxpayers using five forms related to the Alternative Minimum Tax (AMT) legislation will have to wait to file tax returns until the IRS completes the reprogramming of its systems for the new law.

IRS has targeted Feb. 11, as the potential starting date for taxpayers to begin submitting the five-related returns affected by the legislation. The February date allows the IRS enough time to update and test its systems to accommodate the changes without major disruptions to other operations related to the tax season. See IRS News Release 2007-209 for more information.

Returns that include the following forms cannot be filed until Feb. 11, 2008:

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Form 8863, Education Credits
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Form 5695, Residential Energy Credits
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Schedule 2, Form 1040A, Child and Dependent Care Expenses for Form 1040A Filers
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Form 8396, Mortgage Interest Credit
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Form 8859, District of Columbia First-Time Homebuyer Credit

Check this page for further AMT-related updates. READ ON ->

¿Estás listo para la declaración de impuestos?

El Servicio de Impuestos Internos (IRS) alerta que éste es el mejor momento de preparación para la declaración de impuestos; y mediante su portavoz, Irma Treviño, dijo: “A días del cierre y corriendo el año, aquí hay unos consejos prácticos y rápidos del IRS que le ahorrarán tiempo y dinero al presentar su declaración de impuestos para el 2007”.

Reúna todos sus archivos. Se recomienda tomarse un momento para reunir y organizar sus archivos tributarios poniendo sus documentos en orden.

Consiga documentación de las donaciones que haya efectuado, esto incluye un récord bancario o un recibo escrito de la organización caritativa mostrando el nombre de la caridad, la fecha y el monto de la contribución. Continuar->

Esteban Martinez EA
MSE & Assoc
Valley Tax Office
(818) 787-6224

MORTGAGE RELIEF BILL

The President is expected to sign into law the “Mortgage Forgiveness Debt Relief Act of 2007.” The act was sent on to the President after passage by Congress on December 18th.

Under the Mortgage Relief Act, effective for indebtedness discharged on or after Jan. 1, 2007 and before Jan. 1, 2010, taxpayers generally may exclude from income up to $2 million of mortgage debt forgiveness on their principal residence.

The Mortgage Relief Act also includes the following important tax changes not connected to mortgage debt tax relief:

o A three year extension of the rule treating qualifying mortgage insurance premiums as deductible qualified residence interest.
o An exclusion for qualified state or local tax benefits (e.g., reduction or rebate of state or local income or property tax) and qualified payments (up to $360 a year) granted to members of a qualified volunteer emergency response organization. The new exclusion will apply for tax years beginning after 2007 and before 2011.
o Effective for sales and exchanges after Dec. 31, 2007, surviving single spouses will qualify for the $500,000 home-sale exclusion if the sale occurs not later than 2 years after their spouse's death and the requirements for the $500,000 exclusion were met immediately before the spouse's death. Currently, the up-to-$500,000 exclusion is available only if spouses file a joint return for the year of sale. READ ON->

Revise el Estado de Su Rembolso

Usted presentó su declaración de impuestos y ahora espera un reembolso. Tiene una sola pregunta, y desea una contestación ahora mismo a la pregunta, ¿Dónde está mi reembolso?

Revise el estado de su reembolso de impuesto federal en cualquier momento, desde cualquier lugar. Comuníquese directamente con el IRS a través de tecnología segura, la cual protege la confidencialidad de su información. Instrucciones sencillas en-línea le guiarán a través de un proceso sencillo y usted podra revisar el estado de su reembolso.

Haga Clic aqui, e ingrese al sitio del IRS en el Internet, (solamente en inglés), donde se le pedirá provea la siguiente información:

• Número de Seguro Social (SSN) o Número de
Identificación Personal del Contribuyente (ITIN)
• Estado civil para efectos de la declaración; y
• La cantidad del reembolso que aparece en su declaración


Esteban Martinez EA
Tax Consultant
MSE & Assoc
Licensed to Practice before the IRS
Website: Valleytaxoffice.com
Tele (818) 787-6224

Late tax fix means taxpayers will wait for refunds

Millions of taxpayers could find their refunds delayed next tax season due to Congress’s late action earlier this week to fix a glitch in the federal tax law.

The IRS said today that it had started to update its computer system to accommodate changes related to the Alternative Minimum Tax, passed this week by Congress and expected to be quickly approved by President Bush. But even with those efforts, the late start could delay tax-return processing—and refunds—for an estimated 15.5 million taxpayers.

“There could be delays for certain taxpayers, but we’re working to minimize the impact,” said Nancy Mathis, an IRS spokesperson.

Mathis said the IRS could not yet say exactly how many—or who—would be affected. However, based on earlier estimates by IRS Acting Commissioner Linda Stiff and the independent IRS Oversight Board, some 15.5 million returns—and some $39 million refunds—could be delayed.

The agency said it would be working over the next week to finalize its processes. Taxpayers should check the IRS’s Web site for updated information. READ ON->


Stephen Martinez EA
Tax Consultant
MSE & Assoc
Licensed to Practice before the IRS
Website: Valleytaxoffice.com
Tele (818) 787-6224

Seleccione su Estado Civil Correcto

Seleccione su Estado Civil Correcto

Su estado civil para fines de la declaración se basa en su estado civil y situación familiar. El estado civil es un factor importante, el cual determinará si usted tiene la obligación de presentar declaración de impuestos, la cantidad de su deducción estándar y la cantidad correcta de su impuesto.

Su estado civil para efectos de la declaración, se basa en el último día del año. Si más de un estado civil tributario le es aplicable, usted puede escoger el que le permita pagar menos impuestos.

Hay cinco estados civiles para efectos de la declaración federal:

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Soltero. Generalmente, si no está casado, esta divorciado, o legalmente separado, de acuerdo a las leyes de su estado, su estado civil para efectos de la declaración es soltero.
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Casados que Presentan una Declaración Conjunta (Married Filing Joint). Si está casado, usted y su cónyuge pueden presentar declaración conjunta. Si su cónyuge murió durante el año y usted no se volvió a casar, usted puede presentar declaración conjunta con su cónyuge para el año en que su cónyuge falleció.
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Casados que Presentan Declaraciones Separadas (Married Filing Separate). Contribuyentes casados pueden elegir presentar declaraciones separadas.
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Cabeza de Familia (Head of Household). Usted debe estar soltero y haber pagado más de la mitad del costo de mantener una hogar para usted y una persona calificada.
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Viudo Calificado con un Hijo Dependiente. Si su cónyuge falleció durante el año 2006 y usted tiene un hijo calificado, y cumple con ciertos requisitos; podría seleccionar el estado civil para fines de la declaración de viudo calificado.

Continuar->

Your Refund could be delayed! Tax Season Delayed?

IR-2007-202, Dec. 19, 2007
(Updated 12/21/07 to 11 impacted forms instead of 12)

WASHINGTON — The Internal Revenue Service announced it will immediately begin the final reprogramming steps for its income-tax processing systems to prepare for the upcoming tax season following final passage of the Alternative Minimum Tax “patch” Wednesday by the House.

“Our people will do everything they can to quickly update our systems for this major change and make this filing season as smooth as possible for everyone,” said Linda Stiff, IRS Acting Commissioner. “Our goal is to process tax returns accurately and to issue refunds to taxpayers as quickly as possible.”

The AMT and AMT-related tax calculations affect a number of core IRS processing systems that will need to be updated. The IRS is continuing to aggressively explore options for the 2008 filing season in order to minimize the impact of processing delays on taxpayers. Additional details will be available to the public as soon as plans are finalized.

To help the tax professional and software communities prepare for the upcoming filing season, revised copies of the 11 tax forms impacted by the AMT legislation will be posted to IRS.gov within 72 hours after the AMT patch is signed into law.

As more details on the AMT situation develop, the IRS encourages taxpayers to visit IRS.gov for more information. SOURCE

Is your Employer giving you a 1099 instead of a W2?

WASHINGTON — The Internal Revenue Service has developed a new form for employees who have been misclassified as independent contractors by an employer. Form 8919, Uncollected Social Security and Medicare Tax on Wages, will now be used to figure and report the employee’s share of uncollected social security and Medicare taxes due on their compensation.

Generally, a worker who receives a Form 1099 for services provided as an independent contractor must report the income on Schedule C and pay self-employment tax on the net profit, using Schedule SE. However, sometimes the worker is incorrectly treated as an independent contractor when they are actually an employee. When this happens, Form 8919 will be used beginning for tax year 2007 by workers who performed services for an employer but the employer did not withhold the worker’s share of social security and Medicare taxes. Read on->

FTB Hoping to Return Nearly $10 Million in Unclaimed Tax Refunds

Released: December 20, 2007

The Franchise Tax Board (FTB) is trying to find more than 37,000 California taxpayers who are owed $9.8 million in state tax refunds that remain unclaimed.

“California taxpayers that have not received their 2006 refund can call the Franchise Tax Board and have a quick replacement check sent.” said State Controller and FTB Chair John Chiang.

This year FTB issued nearly 10 million refunds worth more than $8.4 billion. At issue are uncashed individual refunds ranging from a few dollars to more than $68,000. In many of the cases the refund checks are returned to the FTB as undeliverable by the U. S. Post Office because taxpayers have moved between the times they filed their taxes and the refunds were mailed.

FTB automatically reissues returned refunds once a new address is received. Taxpayers who have changed addresses are encouraged to call the FTB to update their address.

Taxpayers can check the status of their refund at the FTB Website www.ftb.ca.gov. The feature is available in English and Spanish.

Taxpayers may also check the status of their refund and update their address by calling (800) 852-5711 between the hours of 7 a.m. and 6 p.m., Monday through Friday.
Continue->

Santa Monica Doctor Arrested on State Income Tax Evasion

A Santa Monica physician was arrested today on three felony charges of state income tax evasion, the Franchise Tax Board (FTB) announced.

Barnett J.W. Grier, Jr., 63, a self-employed physician who appears to be residing between Santa Monica and Plumas County in northern California was arrested without incident this morning by FTB special investigators. According to investigators, Grier allegedly failed to file state income tax returns for 2002 – 2004 failing to claim the more than $5.2 million he earned during these years. He was employed by a Plumas County medical clinic at the time of his arrest.

Each felony count carries a maximum term of three years in state prison.

This marks the sixth arrest by FTB who have been working with the Los Angeles County District Attorneys Fraud Interdiction Program. In 2004, District Attorney Steve Cooley launched the program to more effectively investigate and prosecute health care fraud cases, which cost health insurers and government-funded health plans over $100 billion nationally each year. The program targets attorneys, medical doctors, chiropractors, dentists and clinic owners who have allegedly engaged in health care fraud. The program was designed and implemented by Deputy District Attorney Al MacKenzie, who has more than 30 years experience as a prosecutor.

Since the program’s inception, the most blatant abusers of health care insurance fraud have been convicted and sentenced to prison. FTB is working on over 40 other cases concerning health care providers involved in tax evasion from health care insurance fraud.

The most common health care fraud schemes include billing for services not rendered or medically unnecessary, double billing for services, and engaging in kickbacks.

Grier was booked into the Los Angeles Inmate Reception Center. Bail is set at $1 million. The date for his arraignment has not been set.

Los Angeles County Assistant District Attorney Amy Suehiro is prosecuting the case. This is a joint investigation between the Los Angeles District Attorney, the California Department of Justice, and the Franchise Tax Board. Source

IRS Works to Quickly, Accurately Implement AMT Patch

R-2007-202, Dec. 19, 2007

WASHINGTON — The Internal Revenue Service announced it will immediately begin the final reprogramming steps for its income-tax processing systems to prepare for the upcoming tax season following final passage of the Alternative Minimum Tax “patch” Wednesday by the House.

“Our people will do everything they can to quickly update our systems for this major change and make this filing season as smooth as possible for everyone,” said Linda Stiff, IRS Acting Commissioner. “Our goal is to process tax returns accurately and to issue refunds to taxpayers as quickly as possible.”

The AMT and AMT-related tax calculations affect a number of core IRS processing systems that will need to be updated. The IRS is continuing to aggressively explore options for the 2008 filing season in order to minimize the impact of processing delays on taxpayers. Additional details will be available to the public as soon as plans are finalized.

To help the tax professional and software communities prepare for the upcoming filing season, revised copies of the 12 tax forms impacted by the AMT legislation will be posted to IRS.gov within 72 hours after the AMT patch is signed into law.

As more details on the AMT situation develop, the IRS encourages taxpayers to visit IRS.gov for more information.
++++++++++++++++++++++++++++
Question: Define quickly

Stephen Martinez EA
MSE & Assoc
ValleyTaxOffice.com

House to Vote on Preventing Expanded Tax

By JIM ABRAMS (Associated Press Writer)
From Associated Press
December 19, 2007 4:47 AM EST

WASHINGTON - After agonizing for weeks, the House planned to vote Wednesday on legislation that would protect more than 20 million people from seeing their tax bill balloon this year as a result of the dreaded alternative minimum tax.

One of Congress' last acts before it closes shop for the year, passage of the bill providing a one-year stay on growth of the AMT was a political must: Neither party wanted to leave Washington taking blame for a tax increase, averaging $2,000 a person, that would affect millions. House passage would send the bill to President Bush.

The last-minute nature of the vote on the AMT fix resulted from a fundamental difference between the House and Senate. House Democrats had insisted that the $50 billion in tax relief resulting from the one-year fix must be paid for by an equivalent amount of revenue elsewhere, mainly by closing a loophole on offshore tax havens.

Senate Republicans, however, have blocked the Senate from taking up legislation that includes a tax increase, and Bush threatened to veto any bill that raised taxes.

On Tuesday night the Senate for a second time rejected the House-backed approach of a paid-for AMT bill. The House Democratic leadership, which was committed to paying for the tax relief, had asked the Senate to make one last stab at the issue. The Senate vote was 48-46 for the House bill, 12 short of the 60 needed to approve it.

Continue-->


Stephen Martinez EA
MSE & Assoc
ValleyTaxOffice.com

¿Ha sido Robada su Identidad?

¿Qué debe hacer si cree que su identidad ha sido robada?

Presente una denuncia a la Comisión Federal de Comercio, Federal Trade Comisión (FTC)

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EL FTC mantiene un registro de casos de robo de identidad usado por las agencias del orden público en sus investigaciones.
* EL FTC es la agencia del gobierno responsable de la información sobre el robo de identidad.

Comuníquese con el departamento de fraude de cualquiera de las tres agencias de información al consumidor.

* Las agencias de información al consumidor colocarán alertas de fraude en su informe crediticio, solicitando que todo negociante se comunique con usted antes de abrir una nueva cuenta o hacer cambios a sus cuentas actuales.
* Una vez la agencia de información al consumidor confirma su alerta de fraude, las otras dos agencias automáticamente recibirán notificación para también colocar alertas de fraude.
* Los tres informes de crédito le serán enviados libres de cargo.

Cierre toda cuenta que usted sabe o cree ha sido utilizada fraudulentamente.

Presente una denuncia a la policía

* Provea una copia de su informe a los negociantes y demás personas que pudieran requerir prueba de este crimen.

Hoyer says Congress may not be able to patch AMT

By Mike Soraghan | Posted: 12/18/07 12:06 PM [ET]
December 18, 2007

House Majority Leader Steny Hoyer (D-Md.) hinted Tuesday that Congress may not be able to stop a big tax increase from hitting 23 million Americans.

Hoyer, pressed on whether Congress would resolve disputes over the Alternative Minimum Tax (AMT), said, “Maybe.”

His remark came as a surprise, since it has widely been assumed that Democrats will give up their effort to “pay for” the AMT patch and go with the Senate plan to load the cost onto the deficit.

Hoyer’s statement came the morning after nearly 30 conservative Blue Dog Democrats signaled their discontent with the Senate AMT plan by voting with Republicans against an adjournment resolution.

Hoyer was asked about efforts to resolve the dispute. He said he had come to the 11 a.m. briefing directly from the meeting to resolve the impasse and did not know the “state of play on AMT.”

“There’s no deal” with the Blue Dogs, he said.

An AMT patch must be passed soon to avoid a big tax hike. By waiting as long as they have, lawmakers have already raised the risk of a tax-filing mess that could provide fodder for political attacks. The IRS says it needs seven weeks from the time the president signs the AMT patch into law to update its forms and re-program its computer. Read On->


Stephen Martinez EA
Tax Consultant
MSE & Assoc
Licensed to Practice before the IRS
Website: Valleytaxoffice.com
Tele (818) 787-6224

Contribuyentes Extranjeros

Su estado como extranjero —residente, extranjero no residente o extranjero con doble residencia— determinará si usted tiene que y, además, cómo debe presentar una declaración de impuestos.

Las reglas que se usan para determinar su estado como extranjero se discuten en la Publicación 519, U.S. Tax Guide for Aliens (Guía tributaria para extranjeros), en inglés.

Extranjeros residentes. Si usted es extranjero residente durante todo el año, está obligado a presentar una declaración siguiendo las mismas reglas que aplican a los ciudadanos.

Extranjeros que no son residentes. Si usted es extranjero y no es residente, las reglas que aplican y los formularios que deberá usar son diferentes de las que aplican a los ciudadanos y residentes de los Estados Unidos. Vea la Publicación 519 para determinar si las leyes de impuesto sobre el ingreso aplican a usted y qué formularios deberá presentar.

Contribuyentes con doble residencia. Si usted era extranjero residente durante una parte del año tributario y extranjero no residente durante el resto del año, usted es extranjero con doble residencia. Diferentes reglas aplican para cada parte del año. Si desea obtener información adicional sobre contribuyentes con doble residencia, vea la Publicación 519. Continuar->



Stephen Martinez EA
Tax Consultant
MSE & Assoc
Licensed to Practice before the IRS
Website: Valleytaxoffice.com
Tele (818) 787-6224

House defies veto threat, again passes AMT fix

WASHINGTON (MarketWatch) -- Defying a presidential veto threat and warnings by the Senate, House Democrats on Wednesday passed legislation that would offset another year of relief from the alternative minimum tax to middle-class families by boosting taxes on some hedge-fund managers.
The House in a largely party-line 226-193 vote backed a bill that would provide a "patch" shielding around 20 million families from the alternative tax, or AMT, an alternate levy initially aimed at wealthy tax-dodgers that has threatened to encroach on middle-class taxpayers.
The legislation is estimated to reduce revenues by $50 billion - a figure that the package would offset in part by eliminating a tax-code provision that allows hedge fund managers to defer income on some of their compensation by holding it offshore.
"We have an opportunity to close a very unfair provision that we find in our tax code that certainly no one has come to me to defend" and combine it with AMT relief, said House Ways and Means Committee Chairman Charles Rangel, D-N.Y. READ ON->

IRS Fast Track Settlement Program Expands

WASHINGTON — The Internal Revenue Service today announced it is expanding the number of test areas for the Fast Track Settlement program for taxpayers under examination by the Small Business/Self-Employed Division.

The settlement program is now available for small businesses and self-employed taxpayers until Sept. 5, 2008, in five new areas, including Philadelphia, central New Jersey, San Diego, Laguna Nigel, Calif., and Riverside, Calif.

The Fast Track program is continuing in the three original test cities of Chicago, Houston and St. Paul.

The program is a jointly administered process designed to expedite case resolution. Under Fast Track, taxpayers under examination with issues in dispute work with IRS representatives from SBSE’s examination unit and the Appeals Division to resolve those issues. READ ON->

End of Year Tax Tips Offered for California Taxpayers

With tax season just around the corner, the Franchise Tax Board (FTB) today offered Californians tips on planning for next year’ filings.

"Taking stock of your taxes now can make reporting easier and faster for you next year," said State Controller and FTB Chair John Chiang. "The FTB offers services to help you look ahead to see if you are ready for April 15."

A few ways to help prepare for the filing of your 2007 tax return:

* Use the tax calculator available at www.ftb.ca.gov to estimate your tax. Now is a great time to project taxes due for 2007 before April 15 arrives. If you are under withheld, you have time to make added tax payments now to avoid problems later. To make a tax payment online, try FTB’s Web Pay service.
* Check your estimated tax payments. Claiming the wrong estimated payments is the most common error made on state tax returns. You can check your estimated payment on FTB’s Website. FTB renamed the View Payments and Balance Due application to My FTB Account. My FTB Account will be available January 2, be sure to check it to verify estimated tax payments. Customer Service Numbers are required for My FTB Account.
* Get organized. Now is a good time to start collecting the receipts and documents you will need to file your tax return. Items to collect include: last year’s tax return, receipts for charitable contributions, and your car registration. Watch your mail for W-2s and 1099s and put them in a safe place.
* Need an email reminder to file? You can request one from FTB’s Website via the Email Reminder to File. The reminder also contains links to other areas of the Website that provide information to make filing easier such as e-file information, tips to avoid common mistakes, and what to do if you cannot pay.
* Looking for a tax professional? Last year, 68 percent of taxpayers had their returns professionally prepared. If you choose to hire someone to prepare your tax return, be sure it is someone you know or you can trust. These organizations may be helpful in finding a tax professional:
o CPAs and Public Accountants are licensed by the California Board of Accountancy. To locate a CPA, contact the California Society of Certified Public Accountants at (800) 922-5272 or visit www.calcpa.org.
o Enrolled Agents are licensed by the federal government. To locate one near you, contact the California Society of Enrolled Agents at (800) 829-7765 or visit www.csea.org.
o Tax preparers registered with the California Tax Education Council can be found by calling (877) 850-2832 or visiting www.ctec.org. Read on->

California Billionaire Developer Admits Filing False Tax Return, Pays $52 Million to IRS

Dec. 14, 2007 (Associated Press) -- SANTA ANA, Calif. - A billionaire accused of stashing a fortune in foreign bank accounts pleaded guilty to filing a false tax return and has paid more than $52 million in back taxes, penalties and interest, the Internal Revenue Service said.

Igor Olenicoff entered the plea Wednesday in federal court, according to the IRS.

He could face up to three years in prison but is likely to serve less than six months when he is sentenced in April, said his attorney, Edward M. Robbins Jr. Dec. 14, 2007 (Associated Press) -- SANTA ANA, Calif. - A billionaire accused of stashing a fortune in foreign bank accounts pleaded guilty to filing a false tax return and has paid more than $52 million in back taxes, penalties and interest, the Internal Revenue Service said.

Igor Olenicoff entered the plea Wednesday in federal court, according to the IRS.

He could face up to three years in prison but is likely to serve less than six months when he is sentenced in April, said his attorney, Edward M. Robbins Jr. Continue->

Certain Payments to Disabled Veterans Ruled Tax-Free; Some May Be Due Refunds

IR-2007-198, Dec. 12, 2007

WASHINGTON — Payments under the Department of Veterans Affairs (VA) Compensated Work Therapy (CWT) program are no longer taxable and disabled veterans who paid tax on these benefits in the past three years can now claim refunds, the Internal Revenue Service said today.

Recipients of CWT payments will no longer receive a Form 1099 from the Department of Veterans Affairs. Disabled veterans who paid tax on these benefits in tax-years 2004, 2005 or 2006 can claim a refund by filing an amended return using IRS Form 1040X. According to the VA, more than 19,000 veterans received CWT in Fiscal Year 2007.

The IRS agreed with a U.S. Tax Court decision issued earlier this year, which held that CWT payments are tax-free veterans’ benefits. In so doing, the agency reversed a 1965 ruling which held that these payments were taxable and required the VA to issue 1099 forms to payment recipients.

According to the VA, the CWT program provides assistance to veterans unable to work and support themselves. Under the program, the VA contracts with private industry and the public sector for work by veterans, who learn new job skills, re-learn successful work habits and regain a sense of self-esteem and self-worth. READ ON->

Fate of Expiring Tax Provisions in 2007 Tied to Revised AMT Package

With several temporary tax provisions scheduled to expire by December 31, 2007, prospects for passage in 2007 are dimming; however, a small window of opportunity remains, according to Senate Finance Committee Chairman Max Baucus, D-Mont. As the Senate awaits a revised alternative minimum tax (AMT) bill from the House, Baucus expressed hope that his Democratic counterpart in that chamber, House Ways and Means Committee Chairman Charles B. Rangel, D-N.Y., includes an extenders package to accompany a one-year patch for the AMT. Baucus said that would be the only way to renew several expiring tax provisions in 2007; otherwise they will be "pushed off until next year."

The prospects for passage in 2007 are not good, as President Bush has vowed to veto any legislation that includes what he terms tax increases, and House Democrats appear, at least for the moment, determined to pay for all tax cuts through the use of revenue offsets. So far, Senate Republicans have remained steadfast in their allegiance to the White House directive to oppose the use of offsets, but at this time of year, as lawmakers rush to move legislation before heading home for the holidays, anything is possible. Baucus planned to meet with Rangel later in the day on December 12 to discuss the AMT package and the inclusion of extenders. "It's all fluid," he told CCH. READ ON->

SEC to Check Corporate Disclosure to Investors on Subprime Mess

Dec. 12, 2007 (Associated Press) -- WASHINGTON - Federal regulators will scrutinize corporate financial reports to be sure they give investors adequate information on the impact of deteriorating conditions in mortgage and credit markets, a top Securities and Exchange Commission official said Monday.

In remarks to the American Institute of Certified Public Accountants, SEC Commissioner Kathleen Casey said corporate disclosure on mortgage and credit market conditions will be scrutinized in the course of normal SEC staff reviews of quarterly and annual corporate reports.

Securities and loans tied to riskier "subprime" borrowers, collateralized debt obligations, commercial paper exposure and market conditions will come under scrutiny, with particular attention paid to disclosure regarding off-balance sheet items and liquidity, said Casey. She gave the usual disclaimer that she was speaking for herself, not the SEC. READ ON->

H&R Block Expects Larger Loss of $502 Million

Dec. 12, 2007 (The Kansas City Star, Mo.) -- H&R Block Inc. said it lost a record half billion dollars in its fiscal second quarter, due largely to the increasing costs of closing its money-losing subprime mortgage lending arm.

In the same quarter a year ago, Block reported a loss of $156.5 million.

The Kansas City tax preparation and financial services giant also said this morning in a preliminary report that it would miss by a few days a deadline for formally filing its second-quarter results with the Securities and Exchange Commission. Block said it expects to file the report by Friday.

The company said that despite the setbacks, it still expected earnings for the full year ending April 30 to land in a previously projected range of $1.30 to $1.45 a share, though probably nearer the bottom of the range because borrowing costs are increasing.
READ ON->

Discurso Radial del Presidente a la Nación

Buenos Días. En unos pocos días, nuestra Nación celebrará el Día de Acción de Gracias. Al igual que millones de estadounidenses, los miembros del Congreso viajarán a sus hogares para celebrar el feriado. Desafortunadamente, al mismo tiempo que se dediquen a trinchar sus pavos, están dejando mucho trabajo inconcluso en Washington, DC. Y a menos de que terminen este trabajo pronto, estadounidenses de la clase media pagarán impuestos más elevados y tropas estadounidenses no recibirán el financiamiento crítico que necesitan para luchar y derrotar a nuestros enemigos.

Muchos contribuyentes de clase media tendrán facturas de impuestos más elevadas si el Congreso no actúa con relación al Impuesto Mínimo Alternativo, o AMT por sus siglas en inglés. El AMT fue diseñado para asegurar que los ricos paguen su parte justa en impuestos. Pero cuando el Congreso aprobó el AMT hace décadas, no llevaba un índice para inflación. Como resultado, la carga tributaria más elevada del AMT está incidiendo en un número cada vez mayor de familias de media clase.

Para lidiar con este problema, el Congreso en años recientes aprobó legislación provisional que evitaba que la mayoría de contribuyentes de clase media tuvieran que pagar el AMT. Pero este año el Congreso aún no ha aprobado esta legislación. El no hacerlo podría significar que 25 millones de estadounidenses estarían sujetos al AMT – más de seis veces el número de personas sujetas al impuesto el año pasado. Si usted es una de esas 25 millones de personas, tendría que enviar un promedio de 2,000 dólares más al Servicio de Impuestos Internos el año próximo. Este es un enorme aumento en los impuestos que la mayoría de estadounidenses no espera ni merece.

Continuar->


Stephen Martinez EA
Tax Consultant
MSE & Assoc
Licensed to Practice before the IRS
Website: Valleytaxoffice.com
Tele (818) 787-6224

Guidance Released on Medical Expense Deductions

Guidance Released on Medical Expense Deductions (Rev. Rul. 2007-72)

The IRS has issued guidance regarding the deductibility of amounts paid by individuals for diagnostic and similar procedures, including certain devices, not compensated by insurance or otherwise, as medical care expenses under Code Sec. 213(a). In each of the three scenarios presented, the amounts paid by taxpayers were expenses for medical care deductible under Code Sec. 213(a), subject to the limitations of that section including the seven and a half percent floor on deductibility.

Under Code Sec. 213(d)(1)(A), medical care expenses include amounts paid related to the diagnosis, mitigation, treatment, cure or prevention of disease, or any condition affecting any structure or function of the body, including obstetrical services. Diagnosis includes the determination of the absence of disease, and may involve testing for changes in the function of the body unrelated to disease. The guidance clarifies that (1) Code Sec. 213 does not limit the deduction to amounts paid for the least expensive form of medical care applicable, and (2) a physician's recommendation, while often important to determine whether certain expenses are for medical or personal reasons, is unnecessary when the expenditures are for items wholly medical in nature and that serve no other function.

In the first scenario, money spent for an annual physical examination qualified as an expense for medical care, even though the taxpayer was not experiencing any symptoms of illness. In the second scenario, a taxpayer who was not experiencing any symptoms of illness paid for a full-body electronic scan at a clinic without having obtained a physician's recommendation for this procedure. Because the procedure served no non-medical purpose, it, too, qualified as an expense for medical care. In addition, neither the high cost of the procedure nor the possibility of less expensive alternative diagnostic tests barred the deductibility of the expense. Finally, in the third scenario, the expense of a self-administered pregnancy test kit qualified as an expense for medical care, even though it tested the healthy functioning of the body rather than attempted to detect disease.

Rev. Rul. 2007-72, 2007FED ¶46,744

Bush Lobbies for Tax Relief Bill

Dec. 10, 2007 (Associated Press) -- WASHINGTON - President Bush pushed the House on Friday to follow the Senate in passing a bill to prevent millions of taxpayers from paying an average of $2,000 more to the Internal Revenue Service.

The Senate on Thursday approved a one-year fix for the alternative minimum tax , though without matching the cost of the tax relief with new tax revenues. The Democratic plan would have raised taxes on investors to pay for the AMT fix.

Without the fix, an estimated 25 million people would be subject to the higher AMT tax, up from 4 million in 2006. READ ON->

Analizan intereses financieros de latinos

Estudio busca terminar con los mitos sobre el consumo de esta comunidad

María León
/EFE

09 de diciembre de 2007

PHOENIX, Arizona.— Un estudio de la Universidad del Estado de Arizona (ASU) busca averiguar cómo gastan en realidad su dinero los hispanos de la frontera EU-México para cambiar una serie de mitos sobre el consumo en esta comunidad.

"Este es un estudio que venimos realizando desde hace tres años en 32 condados fronterizos, desde California hasta Texas", dijo Bárbara J. Robles, directora del programa de asuntos financieros latinos del Centro de Desarrollo Comunitario y Derechos Civiles de ASU. Continuar->

Stephen Martinez EA
Tax Consultant
MSE & Assoc
Licensed to Practice before the IRS
Website: Valleytaxoffice.com
Tele (818) 787-6224

House leaders reject Senate's AMT fix

By Bob Cusack and Mike Soraghan
December 07, 2007

Despite the Senate’s overwhelming vote to pass an Alternative Minimum Tax (AMT) patch without offsets, House leadership officials Friday indicated they will continue to press the upper chamber to pass a measure that is paid for.

Stacey Bernards, spokeswoman for House Majority Leader Steny Hoyer (D-Md.), said Hoyer “has said repeatedly he will not vote for an AMT bill that is not paid for. I also expect the House to send back to the Senate a responsibly paid-for bill in response to what they passed [Thursday].”

Senate Democrats have tried to pass an AMT patch that would shield 19 million to 23 million taxpayers from the tax, which hits middle- to upper-class households. But Republicans have balked at the offsets, noting that the AMT tax was crafted to hit only wealthy families and has spread to taxpayers it never was intended to affect.
Read on->

Bush 'congela' las hipotecas

Bush 'congela' las hipotecas a más de un millón de afectados por la crisis

* Pacta con los bancos una moratoria de cinco años en la revisión de los créditos de alto riesgo
* Admite que es una "solución imperfecta", ya que no tiene carácter vinculante


PABLO PARDO

WASHINGTON.- El presidente de EEUU pacta con los bancos una moratoria de cinco años en la revisión de los créditos de alto riesgo firmados entre 2005 y julio de 2007 que beneficiará a 1,2 millones de personas.

La explosión de la burbuja inmobiliaria ha obligado a la Administración Bush a abandonar su defensa del libre mercado. Ayer, justo el día en el que se hacía público que la morosidad en el pago de hipotecas en EEUU alcanzaba su récord histórico, George W. Bush comparecía en la Casa Blanca acompañado del secretario del Tesoro, Hank Paulson, para anunciar un plan que la Administración lleva negociando varios días con los bancos. Y que esencialmente consiste en una oferta a los suscriptores de hipotecas de alto riesgo para que éstas queden congeladas durante cinco años.
Continuar->


Stephen Martinez EA
Tax Consultant
MSE & Assoc
Licensed to Practice before the IRS
Email: taxwork@valleytaxoffice.com
Tele (818) 787-6224

Senate passes AMT patch

By Klaus Marre | Posted: 12/06/07 8:23 PM [ET]
December 06, 2007

The Senate late Thursday passed a one-year fix to the alternative minimum tax (AMT), setting up a potential confrontation with the House, which passed a much different version of the bill earlier.

Democrats want to offset the cost of the patch, which would shield millions of Americans from becoming eligible for the higher tax. However, Republicans are balking at the idea and in the Senate they have enough support to block such a plan.

“I am relieved that the Senate has acted this evening to extend AMT relief for 19 million taxpayers – including nearly 100,000 Nevadans,” Senate Majority Leader Harry Reid (D-Nev.) said following the vote. “But I want to make it perfectly clear that I am very disappointed Republicans prevented the Senate from passing AMT relief in a fiscally responsible manner. Instead, Republicans insisted that the $50 billion cost of this proposal be added to the national debt – a debt that is already growing at a rate of $1 million a minute.”

The Senate bill without offsets passed 88-5. Read on->

Demora de ley de impuestos atrasará devoluciones

Silena Davis estaba contando con que le llegara su devolución de impuestos para pagar por un arreglo dental. Ahora, como el Congreso se ha pasado el año demorando una ley de impuestos, tanto ella como millones de otras personas tendrán que esperar semanas enteras para recibir reembolsos que el año pasado fueron de un promedio de $2,291.

El Servicio de Rentas Internas está estudiando cuidadosamente posponer el inicio de la temporada de impuestos para que comience el 14 de enero si el Congreso no aprueba una ley al respecto en las próximas dos semanas. Lo que está en juego es cómo manejar lo que podría ser un drástico aumento en el número de personas que van a tener un impuesto mínimo alternativo (AMT).

La Junta de Fiscalización del IRS dice que si hay una prórroga y se extiende hasta mediados de febrero, eso haría tardar casi 32 millones de reembolsos de un valor total de alrededor de $87,000 millones. Continuar->

IRS Issues List of Vehicles that Qualify for the Alternative Motor Vehicle Credit

WASHINGTON — Purchasers of certain large trucks, buses or other heavy vehicles running on alternative fuel can claim a credit of up $32,000, and purchasers of certain large hybrid trucks and other heavy hybrid vehicles can claim a credit of up to $12,000 if they qualify for the Alternative Motor Vehicle Credit.

Qualified Alternative Fuel Motor Vehicles (QAFMV) are powered solely by alternative fuels, such as compressed natural gas, liquefied natural gas, liquefied petroleum gas, hydrogen and any liquid at least 85 percent of the volume of which consists of methanol. Vehicles powered by a combination of an alternative fuel and a petroleum-based fuel may qualify for a reduced credit. Purchases of new vehicles with special equipment, as well as ones converted for alternative power, may qualify.

A credit also is available for certain new qualified heavy hybrid vehicles with a gross vehicle weight rating in excess of 8,500 pounds. A qualifying heavy hybrid motor vehicle draws propulsion energy from onboard sources of stored energy which are both an internal combustion or heat engine using consumable fuel, and a rechargeable energy storage system. This credit should be not confused with the alternative motor vehicle credit for qualified hybrid passenger automobiles and light trucks.
Read on->

California Self-Compliance Letters for Car and Truck Expenses

A self-compliance pilot project initiated by the FTB's audit unit to verify car and truck expenses claimed on taxpayers' Schedule Cs filed with their personal income tax returns indicated that taxpayers incorrectly reported their car and truck expenses on more than 80% of returns selected. Although taxpayers can deduct expenses incurred while driving from their homes to a client's place of business while conducting business or between one place of business and another place of business if they are business-related, taxpayers can not deduct transportation expenses incurred between their homes and their business or regular place of work, as those are personal commuting expenses. Under the pilot project, the FTB sent self-compliance letters to taxpayers who claimed the car and truck expense. The letters included FAQs, the applicable law, and a simplified auto expense worksheet(s) for taxpayers to determine the allowable amount of their car and truck expense deductions. Due to the success of the project the FTB will consider the self-compliance letters for future use.

California Alimony Audit Project

he FTB is launching a new audit project to examine alimony payments deducted or received by California personal income taxpayers. The alimony audit project was initiated by a pilot study that indicated a 40% noncompliance rate, affecting multiple years in most cases.

Under federal law as incorporated by California, alimony payments are only deductible by the payer spouse if they are taxable to the recipient spouse. If the divorce or separation agreement designates such payments as not includable in the recipient's income, then the ex-spouse making the payments cannot deduct them. For example, property settlements are not includable as alimony income and are not deductible.

The FTB's analysis indicates that many taxpayers mistakenly consider all payments, including child support payments, made to their ex-spouses as deductible alimony payments. Conversely, many alimony recipients do not consider the payments from their ex-spouses as taxable income, and do not report it. Frequently, taxpayers fail to report income designated as "family support" by the divorce decree even though this type of support is considered taxable alimony income in most cases.

Under the new audit program, the FTB will mail a "Tax Liability Discrepancy" letter to the taxpayer if the FTB feels an audit adjustment is required rather than conducting a complete and time-consuming audit. If the taxpayer agrees with the FTB's audit determination, the taxpayer can pay the tax and interest, and be finished with the process. If the taxpayer disagrees, the FTB will request substantiation from the taxpayer supporting the taxpayer's position. The FTB will be developing a Frequently Asked Questions (FAQ) brochure, which will be included in the letters sent to taxpayers with alimony issues to help taxpayers understand the tax implications regarding alimony payments, as well as address penalties that may be imposed.

California AGI Phase-Out Limits for Traditional IRAs

Although California conforms to the federal Roth IRA AGI phase-out amounts, California does not conform to federal law that indexes the AGI phase-out limits for traditional IRAs beginning in 2008 for taxpayers who are active participants in their or their spouses' employer-sponsored retirement plan. Therefore, taxpayers participating in their or their spouses' employer-sponsored retirement plan could potentially have a different federal basis than state basis if they fall between the phase-out limits, and are contributing to a traditional IRA beginning in the 2008 taxable year.

For 2008, the phase-out range for federal purposes for single taxpayers is between $52,000 and $62,000, whereas the range for California personal income tax purposes remains between $50,000 and $60,000. The AGI phase-out range for joint federal returns is $83,000 to $103,000, as compared to the California phase-out range of between $75,000 and $85,000. Finally, for individuals who are not an active participant, but whose spouse is an active participant, the phase-out range is between $156,000 and $166,000 on the federal return and between $150,000 and $160,000 on the California return.

Mejora tu Situación Económica

Ponte en Forma en el 2008

Elena Alejandro, Univision Online

Opina en los Foros de Univision

Con el año entrante uno se encuentra con una multitud de esperanzas, deseos y aspectos en la vida que quisiera mejorar. Cuando se trata de formular una resolución, o una meta para el año nuevo, la más popular sigue siendo perder peso. No es de extrañar, entonces, que el número de inscripciones a los gimnasios aumente precipitadamente durante los primeros dos meses del año. Pero lo que indudablemente también ocurre es que antes de que lleguen las fiestas de Pascuas, ya no se ve tanta gente. Lo que pasa es que a veces, la meta simplemente no es realista, o quizás no es tan clara como debería. No es lo mismo decir, “Quiero perder 10 libras”, que decir: Voy a dejar de comer dulces e iré al gimnasio por lo menos 3 veces a la semana.
Continuar ->

U.S. puts heat on lenders to freeze rates

WASHINGTON - The Bush administration raced against time Monday to wrap up an agreement designed to prevent a surge of mortgage foreclosures that many analysts fear could send the economy into recession.

Treasury Secretary Henry Paulson told a housing conference here he is working "aggressively and quickly" to persuade financial institutions to freeze interest rates on hundreds of thousands of "subprime" adjustable-rate mortgages held by marginally qualified buyers. Read on ->

Safekeeping Records Essential for Financial Wellbeing

Dec. 5, 2007 -- Protecting important family records from the ravages of fire and water damage could save a family heartache and possible financial difficulties should a natural disaster like a fire or earthquake occur.

That's why a fire- and waterproof safe is perhaps the most important gift you can give yourself, your family and your friends this holiday season, according to the California Society of CPAs.

"Losing your home in a fire is bad enough without the added burden of your vital records going up in smoke," says Mitch Freedman, CPA/PFS. He noted that even if documents survived a fire or an earthquake, they could be damaged by water from burst pipes or fire hoses. Read on ->

Para salvar a Citigroup y otros bancos, Bush va al rescate de los deudores hipotecarios

En horas más, el Gobierno estadounidense anunciará un plan de alivio del costo financiero de las hipotecas para intentar detener ejecuciones masivas que provocarían un gran descontento social e inevitable efecto en un electoral año 2008. Y básicamente ayudar a los bancos. Pero hasta ahora Wall Street se ha mostrado escéptico con el probable anuncio porque cree que la recesión es más fuerte.

CIUDAD DE BUENOS AIRES (Urgente24). El anuncio del secretario del Tesoro de USA, Henry Paulson, de que habrá un acuerdo en breve con la industria hipotecaria para congelar de forma temporal los tipos de interés de ciertas hipotecas de alto riesgo o "subprime", hasta ahora no sirvió para levantar el ánimo de los inversores.

Por el momento, se desconoce durante cuántos años se congelarían los tipos de interés según ese plan, cuyo objetivo es evitar una ola de ejecuciones hipotecarias en el país ante la dificultad de los propietarios a hacer frente al alza de las cuotas mensuales de sus hipotecas.

En teoría, el objetivo es auxiliar a 2 millones de hipotecas de alto riesgo que están por aumentar de un pago promedio de US$ 1.200 mensuales a US$ 1.550. Pero en la realidad es mejorar la situación de la banca estadounidense,

Continuar->

U.S. puts heat on lenders to freeze rates

Hopes to avert foreclosure surge, recession

By William Neikirk | Tribune senior correspondent
December 4, 2007

WASHINGTON - The Bush administration raced against time Monday to wrap up an agreement designed to prevent a surge of mortgage foreclosures that many analysts fear could send the economy into recession.

Treasury Secretary Henry Paulson told a housing conference here he is working "aggressively and quickly" to persuade financial institutions to freeze interest rates on hundreds of thousands of "subprime" adjustable-rate mortgages held by marginally qualified buyers . . . Read on->

Millions of Tax Refunds Could Be Delayed

Dec. 4, 2007 (Associated Press) -- WASHINGTON - Silena Davis had counted on an early tax refund to pay for getting her teeth fixed. Now, because Congress has dawdled all year on a tax bill, she and millions of other early filers could have to wait extra weeks for refunds that last year averaged $2,291.

The Internal Revenue Service is looking hard at delaying the start of its filing season, set to kick off on Jan. 14, if Congress fails to pass legislation in the next two weeks. At issue is how to handle what could be a dramatic increase in the number of people facing a higher alternative minimum tax.

If there is a delay and it extends into mid-February, it would slow nearly 38 million refunds worth a total of about $87 billion, the IRS Oversight Board predicts.

Continue->

Demora de ley de impuestos atrasará devoluciones

Silena Davis estaba contando con que le llegara su devolución de impuestos para pagar por un arreglo dental. Ahora, como el Congreso se ha pasado el año demorando una ley de impuestos, tanto ella como millones de otras personas tendrán que esperar semanas enteras para recibir reembolsos que el año pasado fueron de un promedio de $2,291.

El Servicio de Rentas Internas está estudiando cuidadosamente posponer el inicio de la temporada de impuestos para que comience el 14 de enero si el Congreso no aprueba una ley al respecto en las próximas dos semanas. Lo que está en juego es cómo manejar lo que podría ser un drástico aumento en el número de personas que van a tener un impuesto mínimo alternativo (AMT). Continuar->

IRS considers delaying start of tax season

WASHINGTON - The Internal Revenue Service is looking hard at whether to delay the start of tax-filing season if Congress, in the next two weeks, doesn't pass a law exempting millions of people from the Alternative Minimum Tax.

If there is a delay and it extends into mid-February, it would slow the return of 32 million refunds worth a total of about $87 billion, the IRS Oversight Board predicts.

The board, an independent advisory group, told lawmakers last week that it is "gravely concerned about the serious risks" to the filing season if Congress does not make timely changes to the tax. They include more mistakes by both taxpayers and the IRS and more people failing to pay taxes because of uncertainty about what they owe. READ ON->

Ahora es cuando hay que comprar casa

Por JUAN F. JARAMILLO/Al Día

Es muy probable que ya hayas escuchado las noticias sobre la crisis del mercado de los préstamos hipotecarios que afecta a todo el país.

Y es también muy probable que te hayas preguntado si ahora es o no un buen momento para comprar una casa.

Agentes y corredores de bienes raíces, e incluso observadores del sector están de acuerdo en que ahora es el mejor momento para tomar la decisión de hacerlo, especialmente para aquellos que quieren comprar su primera vivienda en un rango entre 80,000 y 150,000 dólares.

"El mercado tiene una sobreoferta de propiedades y los compradores tienden a tomar una actitud expectante, lo que quiere decir que los precios van a ser muy negociables. Probablemente disminuirán o, al menos, no subirán", sostiene James P. Gaines, analista del Real Estate Center de la Universidad Texas A&M.
Continuar->

Anti-Tax Advocate Charged With Evasion

An anti-tax advocate hid millions in income for himself and clients through an elaborate web of shell companies, federal prosecutors charged Wednesday in an 11-defendant indictment.

Bernard J. Bagdis, 58, a lawyer and tax preparer, was arrested after a six-year investigation that netted two doctors, an engineer, several executives and an older woman with a small cleaning service.

At one point, Bagdis agreed to help an undercover Internal Revenue Service agent hide $100,000 in cash so that it would not be taxed, officials said. Continue->

Ex-CPA Convicted of Not Paying Taxes

Nov. 1, 2007 (The Atlanta Journal-Constitution) -- Sherry Peel Jackson, a former IRS revenue agent and certified public accountant, told a federal jury Tuesday she was sure she did not have to file income tax returns.

But after less than 30 minutes of deliberations, the jury convicted Jackson of failing to file income tax returns from 2000 through 2004. The Stone Mountain woman faces a maximum of four years in prison. She will be sentenced early next year. Continue->

Senado pide eximir de impuestos a tabasqueños

El Senado, por unanimidad, exhortó a la Secretaría de Hacienda que exima del pago de impuestos a los tabasqueños afectados por las inundaciones.

Sería del periodo comprendido del 1 de octubre de 2007 al 31 de diciembre de 2008.

A propuesta del grupo parlamentario del PRI y con el aval de las demás fuerzas políticas, se acordó que se exima a los damnificados del pago del Impuesto Sobre la Renta, del Impuesto al Activo, del Impuesto Empresarial de Tasa Única y del Impuesto a los Depósitos en Efectivo.

También cancelar los adeudos de los productores con la Banca de Desarrollo y que los Fideicomisos Instituidos en Relación con la Agricultura renegocien con la banca privada los créditos descontados.

Además, autorizar un mayor acceso de los pequeños productores a créditos de avío y al seguro agropecuario.
Continuar->

Crude Oil Falls Below $90 on Concern Economic Growth Will Slow

Nov. 30 (Bloomberg) -- Crude Oil fell below $90 a barrel for the first time in a month on concern U.S. economic growth will slow, reducing energy demand.

Consumer spending in the U.S., the world's biggest oil user, rose less than forecast in October and incomes increased at the slowest pace in six months, the Commerce Department said in Washington today. Oil is heading for its biggest one-week drop in two years. Prices climbed to a record $99.29 a barrel on Nov. 21. Read on->

IRS Tiene $2.2 Billones para Quienes No Presentaron Declaraciones de Impuestos para 2003

IR-2007-51-SP, 6 de marzo, 2007 WASHINGTON — Reembolsos que no han sido reclamados sumando más de $2.2 billones están esperando a unas 1.8 millones de personas que no presentaron declaraciones de impuestos federales para 2003, anunció hoy el Servicio de Impuestos Internos (IRS). Continuar->