December 2007


Dear Clients and Friends,


We hope you are all in good health and enjoying the holiday season! And speaking of seasons, the tax season of 2008 will soon be upon us all. Below are several informative subjects that we hope will be of help to you.


The IRS and You


-Oops! You realize that you omitted information from your tax return after it was filed. Not a problem, you can amend your return by filing Form 1040X.


-If you can’t meet the April filing deadline to file your tax return, you can file a six month extension of time to file and give yourself more time.


-There are various payment options, if you owe the IRS but cannot pay in full. You can pay by Credit Card, request an

Extension of Time to Pay or apply for an Installment Agreement.


-You receive correspondence from the IRS – and it’s not a refund check. Don’t panic; many of these letters can be dealt with simply and painlessly. You simply need to decide if you agree, disagree and communicate with them.


-The IRS urges you to beware of e-mail scams. Some of the scams out there claim to be conducting surveys, claim to have recalculated tax returns and take you to a fake IRS site. Recipients of questionable e-mails claiming to come from the IRS should not open any attachments or click any links.


Is It Taxable or Nontaxable?


-Gifts given to a person up to $12,000, is not taxable. If you give any one person gifts over $12,000 must be reported on your tax return and you may have to pay tax on the gifts. The person who receives your gift does not have to report the gift to the IRS or pay gift or income tax on its value.


-Generally, if social security benefits were your only income, your benefits are not taxable. If you receive income from other sources, your benefits will not be taxed unless your modified AGI is more than the base amount for your filing status.














Is It Taxable or Nontaxable?


Gifts given to a person up to $12,000, is not taxable. If you give any one person gifts over $12,000 must be reported on your tax return and you may have to pay tax on the gifts. The person who receives your gift does not have to report the gift to the IRS or pay gift or income tax on its value.





Generally, if social security benefits were your only income, your benefits are not taxable. If you receive income from other sources, your benefits will not be taxed unless your modified AGI is more than the base amount for your filing status.