More Tax and Financial News

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“Your most unhappy customers are your greatest source of learning.” — Bill Gates

Small Business and Work Opportunity Tax Act of 2007

This is another one of the almost countless tax acts that add layer upon layer to the already incredibly complex Internal Revenue Code, without any attempt at overall simplification. One of the major provisions is the final change (apparently) in the so-called “Kiddie Tax,” that we somewhat explained in the November 2007 issue of “Financial Fax.” Here are some more changes:

  • The favorable Section 179 write-off is generally increased to a $125,000 immediate federal tax deduction, for normally
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Before You File Your 2007 Tax Return, Read This

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“Under the English legal system you are innocent until you are shown to be Irish.” — Ted Whitehead

Audit Information and Misinformation

Many taxpayers seem to believe that if the IRS doesn’t call them in for an audit within six months after their return is filed, they are home free. WRONG!

  • The IRS has, at least, three years from the date your return was filed or due, whichever is later, to audit your return.
  • If you omit more than 25% of the gross income from your return, the statute of limitations is raised to six years.
  • There is a further
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