Newsletter October 2007

NEWSLETTER October 6, 2007

     Hello, this is Jody Tiernan from Tiernan & Associates Tax consultants, your source for income tax preparation and tax related issues. This is the fourth issue of our informational newsletter; we hope to bring to you on a quarterly basis, in an effort to communicate issues, and information, that we find are important to our clients.
     As time goes on, we will refine the look and the content, to make it a source of information for you, our clients. We will bring you tax related news, tips about how to avoid common problems that we see facing our clients, information about Tiernan & Associates, and our points of view on various subjects
     One very important point we would like to emphasize, We are here to inform and help throughout the entire year! We are not just here, January through April. Many taxpayers want to think of taxes just one time a year and forget about it the rest of the year. However there are many transactions that can happen through the year that may impact us when tax time comes around.
     The last thing I wish to happen is for us to complete a tax return, and then to inform the client that they now owe many hundreds, or even thousands of dollars. This situation is usually due to a transaction, or change, that happened during the year, and the taxpayer was not aware of the potential tax consequences.
      This newsletter will also focus on a few of the most common areas that we found to cause concern to our tax clients in the 2006 tax filing year and the upcoming 2007 tax year.

This is very important!!!

Latest e-mail Phishing Scam!!

http://www.irs.gov/newsroom/article/0,,id=170894,00.html

Updated Sept. 19, 2007 — Another recent e-mail scam tells taxpayers that the IRS has calculated their "fiscal activity" and that they are eligible to receive a tax refund of a certain amount....(more)

New for tax year 2007

Mortgage Insurance Premium Deduction

Premiums that you pay or accrue for “qualified mortgage insurance” during 2007 in connection with home acquisition debt on your qualified home are deductible as an itemized deduction. The amount you can deduct is...(more)

More important information new for tax year 2007 below...

New recordkeeping requirements for cash contributions.

You cannot deduct a cash contribution, regardless of the amount, unless you keep as a record of the contribution a bank record (such as a canceled check, a bank copy of a canceled check, or a bank statement containing the name of the charity, the date, and the amount) or a written communication from the charity. The written communication must include the name of the charity, date of the contribution... (more)

Online or "Do it yourself" tax software and programs.

I know this was in the last newsletter, but it has great importance! "Do it yourself" is a risky thing:

For tax year 2006, we have helped dozens if not hundreds of folks correct mistakes made on returns that were prepared with "Do it yourself" programs. The mistakes range from... (more)

We hope this newsletter is a help, and we welcome your comments and suggestions to allow us to improve it.

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