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The information below was lifted from the IRS website and provides details regarding the Tax Season Delay resulting from the AMT patch. Please read.
Updated Dec. 28, 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 8859, District of Columbia First-Time Homebuyer Credit
Check this page for further AMT-related updates.
Additional Information on the Alternative Minimum Tax
What is the AMT? The AMT came into being with the
Tax Reform Act of 1969. Its purpose was to target a small number of
high-income taxpayers who could claim so many deductions they owed
little or no income tax. A growing number of middle-income taxpayers
are discovering they are subject to the AMT.
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1040 Central — Forms, publications, calculators and other information for the filing season
December 22 2006
Form 1040 Changes
The IRS also announced details today on how taxpayers can use existing lines on the current Form 1040 and other tax documents to claim the three major extenders provisions. The key forms (Forms 1040, 1040A, Schedule A&B, and instructions) went to print in early November and reflected the law in effect at that time. The instructions contain a cautionary note to taxpayers that the legislation was pending at the time of printing.
The majority of taxpayers file electronically, but taxpayers using a paper Form 1040 will have to follow special instructions if they are claiming any of the three deductions. Form 1040 will not be updated. Instead, taxpayers should follow these steps:
State and Local General Sales Tax Deduction:
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The deduction for state and local general sales taxes will be claimed on Schedule A (Form 1040), line 5, “State and local income taxes.” Enter "ST" on the dotted line to the left of line 5 to indicate you are claiming the general sales tax deduction instead of the deduction for state and local income tax.
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The IRS also will issue Publication 600 for 2006, which includes the state and local sales tax tables, a worksheet and instructions for figuring the deduction.
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This option is available to all taxpayers regardless of where they live, though it’s primarily designed to benefit residents of the eight states without state and local income taxes.
Higher Education Tuition and Fees Deduction:
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Taxpayers must file Form 1040 to take this deduction for up to $4,000 of tuition and fees paid to a post-secondary institution. It cannot be claimed on Form 1040A.
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The deduction for tuition and fees will be claimed on Form 1040, line 35, “Domestic production activities deduction.” Enter "T" on the dotted line to the left of that line entry if claiming the tuition and fees deduction, or "B" if claiming both a deduction for domestic production activities and the deduction for tuition and fees. For those entering "B," taxpayers must attach a breakdown showing the amounts claimed for each deduction.
Educator Expense Adjustment to Income:
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Educators must file Form 1040 in order to take the deduction for up to $250 of out-of-pocket classroom expenses. It cannot be claimed on Form 1040A.
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The deduction for educator expenses will be claimed on Form 1040, line 23, “Archer MSA Deduction.” Enter "E" on the dotted line to the left of that line entry if claiming educator expenses, or "B" if claiming both an Archer MSA deduction and the deduction for educator expenses on Form 1040. If entering "B," taxpayers must attach a breakdown showing the amounts claimed for each deduction.
April 2006
The IRS has established an electronic mailbox for taxpayers to send information about suspicious e-mails they receive which claim to come from the IRS. Taxpayers should send the information to: phishing@irs.gov.
The new mailbox allows taxpayers to send copies of possibly fraudulent e-mails involving misuse of the IRS name and logo to the IRS for investigation. Instructions on how to properly submit one of these communications to the IRS may be found on the IRS website at www.irs.gov. Enter the term “phishing” in the search box in the upper right hand corner. Then open the article titled “How to Protect Yourself From Suspicious E-Mails” and scroll through it until you find the instructions.
November 30 2005
According to news media reports there is a phishing scam circulating on the internet posing as official IRS correspondence. The email scam purportedly indicates that you have a refund due of $571 and directs you to click on a legitimate link that then redirects you to a bogus website.
The IRS does not send taxpayer correspondence via email and does not usually ask you to enter personal information into a web page.
Please call us at 803 732-4288 if you need assistance determining the legitimacy of any taxing authority correspondence.
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