* 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.
* Recently the House passed the Taxpayer Assistance and Simplification Act of 2008 by a vote of 238 to 179.
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.
* 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.
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.
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.”
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”.