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Date: January 3, 2008
Subject: G&G Newsletter - IRS Expects Refunds to be Delayed for Some

This is
G&G Associates
Tax & Financial Consulting Services
e-Newsletter


Check to see if any of these forms affect you. If you don’t know please contact us! Look out for more tips in the future.

IRS Expects Refunds to be Delayed for Some

The IRS plans to begin processing tax returns for the 2007 year on January 14, 2008. But the processing of returns for some taxpayers will be delayed. Congress passed tax law changes in late December, mostly involving changes to the alternative minimum tax.

As a result of those late-in-the-year changes, the IRS announced it will delay the processing of tax returns containing the following forms or schedules:

Form 1040A - Schedule 2, Child and Dependent Care Expenses
Form 8863, Education Credits
Form 5695, Residential Energy Credits
Form 8396, Mortgage Interest Credit
Form 8859, District of Columbia First-Time Homebuyer Credit

The IRS will not process tax returns containing those forms until February 11, 2008.

What should you do?

Individuals not filing these particular forms can file when they are ready and should not expect a delay in their refund. Individuals are who filing these forms should wait until at least February 11 before filing. They should also make sure their tax software is fully updated before attempting to electronically file their returns. The IRS also indicated that they will not accept any e-filed returns containing those forms until after they finish reprogramming their processing computers.

More information:

Filing Season Opens on Time Except for Certain Taxpayers Potentially Affected by AMT Patch (IR-2007-209 from the IRS Web site)
Alternative Minimum Tax – How It Affects Filing Season 2008 (from the IRS Web site)
IRS: Late tax fix delays refunds (Associated Press via Yahoo News)



Don't forget to close out your Monthly expense logs for 2007. Most common expense people forget to close out is logging your ending car mileage. Whether you use the standard deduction car mileage rate or actual expense method you'll need total miles driven and business miles driven and it's hard to accurately compute the numbers without your actual car mileage.


Gary Gray
Tax & Financial Consultant, RFC
G&G Associates
877-817-6031 toll-free
866-361-3872 toll free fax
www.gngassociates.net

"The hardest thing in the world to understand is income tax." Doing Your Taxes doesn't have to be difficult. You could do it yourself but that's like changing your own oil..what else could be wrong with the car? Let us do the job for you-accurately and efficiently to get you all the money you deserve. Visit our website for more information or call us today to set your appointment.

 

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