January 9, 2007 Tax Relief and Health Care Act of 2006 New guidance expands use of debit cards for medical expense reimbursements to supermarkets, discount stores and other stores... IRS simplifies substantiation rules for charitable donations made through payroll deductions... IRS sets five-year limit for consecutive audits of same taxpayer by same agent... IRS announces start of reporting/withholding requirements for 2005/2006 taxable deferred comp... Fact sheet highlights depreciation rules... AL - Governor orders homestead refunds... CA - SBE formally adopts proration method... CA - Tentative decision finds LLC fee unconstitutional, nonreformable... CA - Apportionment rule proposed for mutual fund services... CA - Amendments to water's-edge reporting rule proposed... CA - New procedures for resolving docketed disputes adopted... CA - Rehearing Denied in Microsoft, GM cases... FL - Electronic filing obligation discussed... GA - Company had priority to payment of excess funds... GA - Propriety of tax sale upheld... IL - Right to loss carryback must be affirmatively waived... NY - Employee trusts subject to state unrelated business income tax... NY - Department issues report questioning value of SST conformity... NY - Electronic funds transfer regulations updated... NY - Claims based on assessor corruption rejected... NY - Corporate partner regulations adopted... NC - Boundary database updated... NC - Taxability of telecommunications services discussed... PA - Tax on Archer MSAs, HSAs conforms to federal law... PA - Tax implications of like-kind exchange explained... SC - Rebates for fuel-efficient vehicles available... SC - Warranty, maintenance, and service contracts discussed... SC - Taxability of communication services discussed... SC - Heavy equipment rental surcharge imposed... TN - Senior-citizen tax relief approved...

New tax law adds to New Year's "to do" list
By now, you've probably heard that the new Tax Relief and Health Care Act of 2006 extends some valuable but temporary tax incentives. That's only part of the news. Every taxpayer needs to start planning to take full advantage of the extended tax breaks. The good news is that our office had been anticipating that Congress would extend these tax cuts so we are familiar with them and ready to help you maximize your tax savings. more...

What planning opportunities should I be thinking about for 2007?
With the start of a new year, you should already be thinking about actions you can take in 2007 to reduce your taxes. Congress has provided significant incentives for individuals and businesses. Here is a "top 10" list of some of the opportunities that may be especially valuable to you in this New Year. more...

How do I? Compute the new AMT tax credit break?
Employees of dot.com companies have been struggling with the weight of the alternative minimum tax on stock options they exercised. The employees were given qualified incentive stock options (ISOs). ISOs are not taxable when exercised. However, the spread between the stock's value and the option's exercise price is subject to the alternative minimum tax (AMT). That spelled big tax problems for thousands of taxpayers. more...

FAQ: Does filing at any particular time or manner increase my odds for an audit?
If you call attention to your return, it probably will be noticed. Whether by writing in red across your return a "tax protestor" slogan, by not signing your return, or by not filling in all required lines, you will get your return noticed and at the very least you'll get a letter asking to further explain your position. Absent such blatant attention-getting behavior, however, your chances of audit depends upon the numerical amounts you place on your return and how they compare to certain norms determined by IRS computers (and kept secret from the public). Some audit selection is also done randomly, although those odds are less than a fraction of one percent under current practice. more...

January Tax Compliance Calendar
As an individual or business, it is your responsibility to be aware of and to meet your tax filing/reporting deadlines. This calendar summarizes important tax reporting and filing data for individuals, businesses, and other taxpayers for the month of January 2007. more...