Friday, April 25, 2008

STUFF

A few items of note.

* You can sing along to the TAX FREEDOM DAY song with Joe Kristan at the ROTH AND COMPANY TAX UPDATE BLOG.

* An update to The Tax Book reminded me of a Revenue Ruling from the end of 2007.

In Rev Rul 2007-72 the IRS states that amounts paid by healthy individuals for self-initiated diagnostic tests and similar procedures are deductible as medical expenses, even though no symptoms currently exist and it was not prescribed or recommended by a doctor or other health professional.

The example used in the update is of a home pregnancy test. It is deductible even though it is used to test the “healthy functioning of the body” and not to detect disease.
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* Recently the House passed the Taxpayer Assistance and Simplification Act of 2008 by a vote of 238 to 179.
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The bill repeals the controversial IRS Private Debt Collection program, which has been criticized for spending $75 million to collect just $35 million for the IRS from three private firms that take a 24 percent cut of the taxes they collect.
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Good move!
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* The IRS has issued a special reminder to retirees, disabled veterans and others who normally do not file a tax return that even though April 15 has passed there is still time to submit a 2007 form and get a “stimulus” rebate check.
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People who normaly do not have to file a tax return but have at least $3,000 in qualifying income should file a simple
Form 1040A. Qualifying income includes any combination of earned income, nontaxable combat pay, and certain payments from Social Security, Veterans Affairs and Railroad Retirement.
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According to IRS Commissioner Doug Shulman, “Don’t worry if you did not file a return by April 15. If you meet the criteria, you are still eligible for a stimulus payment. The quicker you file, the quicker you’ll get your payment.”
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The reminder applies to all taxpayers as well, not just “non-taxpayers”. The IRS further pointed out that you “must file a return by October 15 to receive an economic stimulus payment this year”.
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TTFN

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