Friday, January 25, 2008


* The Social Security Administration has announced that due to a “programming error” an incorrect amount appears in the “Benefits for 2007” box on about 2.7 Million 2007 SSA-1099s. The SSA has corrected the problem and will be mailing out corrected SSA-1099s beginning today (January 25th). The revised SSA-1099 states in red typeface that it is a “Corrected Notice”. Click here for more information.

* The National Association of Tax Professionals reminds us of some items to keep in mind when filing your 2007 Form 1040:

· If you are eligible to claim a tax credit for child and dependent care expenses be sure to include the Social Security or Employee Identification number of your caregiver on the Form 2441.

· Remember to sign your return in the proper place. If you are filing a joint tax return with a spouse, both of you must sign.

· Attach Copy B of all Forms W-2 received during the year to the federal return. Also attach any Forms 1099 that report tax withholding. {make sure you attach Copy B - or else "Sam" will send the return back to you - rdf}

· Mail your return to the proper address. The IRS often changes the address for mailing returns. If the IRS sent you a tax booklet, use the enclosed envelope. If you have a balance due, you must use a payment voucher and mail your return to a lock box instead of the service center. If you electronically file your return, the chance of mailing your return to the wrong service center is virtually eliminated.

· Check the accuracy of all the Social Security numbers entered on your tax return. Each person for whom you claim a personal exemption is required to have a Social Security number or some other taxpayer identification number. Make sure the name and number appear just as they do on the officially-issued Social Security card. {this is very, very important - rdf}

· If you owe money this year, make your check payable to the “United States Treasury Service” not the “IRS. {I will explain why the checks are no longer payable to "IRS" in a future posting - rdf}

· Double check the tax from the tax tables, as well as all calculations.

· Make a copy of the return for your records.

· Be certain there is enough postage on the envelope. Include your full return address. If you owe, it’s a good idea to spend the extra dollars and use registered mail so there is a record that the IRS received your return.

* I have a final comment on what you should give your tax preparer. This year my annual January client mailing included the following:

The last word - I want to make sure you take advantage of all the deductions and credits to which you are entitled. In order to make sure that you pay the absolute least amount of federal and state income taxes possible I need complete and accurate information from you. This means I need specific numbers for deductions you are claiming. ‘Claim the maximum’ or ‘Whatever is allowed’ or ‘Same as last year’ won’t cut it. The maximum is what you actually paid – you are allowed what you actually paid - and it is rare that an expense or number of miles driven is exactly the same as it was the previous year (although, I will admit, not impossible). I cannot make up numbers for you– I need you to tell me $1023.50 or $20.00 per week for 50 weeks or 4638 miles!”


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