Tax News from John T. Vetscher, CPA & Thomas R. Vetscher, CPA

Visit www.vetscher-cpas.com and find out how we can help your and your businesses financial needs.

March 2008

Issue: 8

Tax Season Going Strong

Tax season is in full swing and we are as busy as ever. If you haven't come in yet, we encourage you to call now to schedule an appointment to get your taxes prepared. The closer we get to April 15th, the harder it will be for us to get your taxes filed by the deadline. Another reason not to wait to the deadline is to expedite the rebate check that the government is sending out in May. The only requirement to receive the rebate is to file your 2007 tax return by the April 15th deadline. Please download our Income Tax Data Itemizer and fill out the areas that apply to you prior to your appointment. If you are a small business owner, then please visit the forms section of our website to download the worksheets to fill out to record the activity in your small business for 2007. It is much easier for us to prepare your tax return if these forms are completed when you come in for your appointment. If you have any questions when you are filling out the forms, then please contact us and we can answer your questions for you. Our extended busy season hours are Monday through Wednesday 9am - 9pm, Thursday and Friday 9am - 7pm, and Saturday hours are 10am - 3pm. Feel free to call anytime between these hours with questions or to make an appointment.

Enjoy this months newsletter!

IRS Sending Out Millions of Alerts About the Tax Rebate

Don't be alarmed. More than 130 million households will get letters from the Internal Revenue Service beginning next week and the news is good.

The letters are part of an effort to ensure people do not miss out if they are eligible for a tax rebate check under the recently passed $168 billion economic aide plan.

Changes in Tax Laws in 2007

Taxpayers should be aware of important changes to the tax law before they complete their 2007 federal income tax forms. Here are some changes that may affect your return.

1) The AMT Exemption Increased for One Year. For tax-year 2007, Congress raised the alternative minimum tax exemption to $66,250 for a married couple filing a joint return. The exemption rises to $33,125 for a married person filing separately and to $44,350 for singles and heads of household. While the vast majority of taxpayers can file as usual, about 13.5 million taxpayers who file any of five tax forms affected by recent tax law changes related to the AMT will have to wait until Feb. 11, 2008, to file their returns. IRS.gov has more information on this important subject, including downloadable copies of affected forms and questions and answers.

In This Issue

IRS Sending Out Millions of Alerts About the Tax Rebate

Changes to Tax Laws in 2007

Information on the Economic Stimulus Payments

Upcoming Tax Deadlines

Information on the Economic Stimulus Payments

Starting in May, the Treasury will begin sending economic stimulus payments to more than 130 million households. To receive a payment, taxpayers must have a valid Social Security number, $3,000 of income and file a 2007 federal tax return. IRS will take care of the rest. Eligible people will receive up to $600 ($1,200 for married couples), and parents will receive an additional $300 for each eligible child younger than 17. Millions of retirees, disabled veterans and low-wage workers who usually are exempt from filing a tax return must do so this year in order to receive a stimulus payment.