Included in the $15.1 billion package of housing tax incentives in the recently enacted “Housing Assistance Tax of 2008” is a measure creating a new, temporary property tax deduction for non-itemizers (i.e., for taxpayers who claim the standard deduction rather than itemizing their deductions).  Here is a brief overview of this new provision:

• The provision creates a new standard deduction for state and local real property taxes paid by non-itemizers.  Since most homeowners who are paying on a mortgage have enough dudctions (e.g., mortgage interest and property taxes) to justify itemizing them on their return, this new provision chiefly benefits homeowners who have paid off their homes.
• The deduction is available only for one year 0 for tax years beginning in 2008.
• The amount of dudection is as much as $500 for single filers and $1,000 for joint filers.  Since this is a deduction and not a credit (i.e., a dollar-for-dollar reduction in tax liability), the actual tax benefit will not be substantial, for example on a maximum of $100 to a couple in the 10 percent tax bracket and $150 to a couple in the 15 percent bracket (and only $50 and $75, respectively, to singles in these brackets).
• The deduction isn’t limited to taxes paid on a principal residence.  Thus, for example, it may be claimed for state and local taxes paid on a vacation home as well as a principal residence.

Source: Ria Checkpoint

The IRS has given us clarification on the requirements for businesses making name changes.  The actions required for each type of business are listed below.  Additionally, some situations might require a new Employer Identification Number (EIN) and a final return.  To determine if you need a new EIN, see the IRS website www.irs.gov Publication 1635 or contact our office for more information.

Sole Proprietorship:  No amendment on your return is necessary, simply send notification signed by the proprietor or an authorized agent to the address you file your return.

Partnership:  Mark the appropriate name change box on your return when filing for the current year, or, if you have already filed, send notification signed by a partner in the business to the address you file your return along with the Articles of Amendment to the Certificate of Incorporation from the state that authorized the corporation’s name change. 

 Please note that our office hours are changed during the summer, June 2, 2008 through August 1, 2008.   

• Monday through Thursday, 7:30 a.m. – 5:30 p.m. 

• Office closed Friday, Saturday, and Sunday. 

 There is an e-mail being sent out from scam artists that replicates a letter that could be sent by the IRS.  The IRS, however, DOES NOT initiate taxpayer communications through e-mail.   

This e-mail contains an attachment that can potentially damage or completely crash your computer.  The link referenced in the copied e-mail below has been removed for your protection.  DO NOT open any attachments that come with an e-mail sent from someone posing as a representative of the IRS. 

Again, the IRS does not initiate correspondence through e-mail.  Another key indication that this is not from the IRS is the sender’s e-mail address.  All government websites and e-mail addresses end in .gov, never in .org.  The IRS will never ask that personal information such as PIN numbers or passwords be sent to them via e-mail.   

From: Internal Revenue Service [mailto:notice@irs.org]
Sent: XXX
To: XXX
Subject: Notice of Deficiency #76-11279-108620-290 

Department of the Treasury  Date of this Notice: XX

Internal Revenue Service    Letter Number 531(DO)

District Director           Form: 1040

             -NOTICE OF DEFICIENCY-

 Dear XXX,

      We have determined that you owe additional tax and other amounts, or both, for the tax year(s) identified above.  This letter is your NOTICE  OF DEFICIENCY, as required by law.  The enclosed statement shows how we  figured the deficiency.

      If you want to contest this determination in court before making any payment, you have 90 days from the date of this letter (150 days if addressed outside the United States) to file a petition with the United States Tax Court for a redetermination of the deficiency.

Original email has line here stating: "Please click here to download a Copy of the Order, Letter, Notice and Other Document Being Appealed."

      If you decide not to sign and return the waiver, and you do not file a petition with the Tax Court within the time limit, the law requires us to assess and bill you for the deficiency after 90 days from the date of this letter (150 days if this letter is addressed to you outside the United States).

Thank you for your cooperation.

                      Sincerely yours,

                      Charles O. Rossotti

                      Commissioner by

                      Roger K. Burgess  CR

                      District Director

                                  Letter 531(DO)

                                  (Rev.9-96)

The IRS suggests that you forward such emails to phishing@irs.gov and provides instructions on how to do this safely:  FROM THE IRS WEBSITE  http://www.irs.gov/privacy/article/0,,id=179820,00.html"

If you receive an unsolicited e-mail communication claiming to be from the IRS, please forward the original message to: phishing@irs.gov using the instructions provided below.  You may not receive an individual response to your e-mail because of the volume of reports we receive each day.

How to forward a phishing e-mail

It is important that the original communication you received is included, as well as Internet headers. The following instructions will assist you in forwarding a phishing communication to the IRS.

In MS OutlookYou can forward a message without double clicking to open it in a new window. Highlight the e-mail in the message list of your inbox and follow the directions for your particular mail client:

1. Create a new message
2. Drag and drop the phishing e-mail into the body of the new message. This ensures the original message is contained as an attachment with the appropriate Internet headers)
3. Address the message to phishing@irs.gov and send it

1. Open the phishing e-mail message*
2. Select View > Options. The Internet headers will appear. You can copy these as you normally copy text
3. Forward the original message to phishing@irs.gov, with the copied message headers pasted into this message"  

 For 2008, both regular tax and AMT purposes, an additional first-year depreciation deduction – 50 percent of the adjusted basis – is allowed for certain qualified tangible personal property placed in service in 2008. This deduction is also allowed in limited instances for property placed in service in 2009.  Additionally, for years beginning in 2008, the section 179 deduction maximum for taxable years is increased from $128,000 to $250,000, and the phase-out threshold is raised from $510,000 to $800,000. For more information, http://www.house.gov/jct/x-16-08.pdf.  

Source: AICPA Tax Alert Feb. 14, 2008