Tax Pro Plus: Tax Tips - Did You Receive an IRS Notice?

Talk to your tax  professional right away

Every year the IRS sends millions of letters and notices to taxpayers. If one shows up in your mailbox, don’t panic! The IRS may simply be requesting payment of taxes, notifying you of a change to your account, or requesting additional information. Regardless, any notice you receive will normally cover a very specific issue about your account or tax return.

If you receive a notice about a correction to your tax return, you should review the correspondence and compare it with the information on your return. Call your tax professional right away! In most cases, the IRS will require a response within 30 or 60 days, and your tax professional will need time to review the notice and determine the appropriate response. Be sure to keep copies with your tax records of any

correspondence between you, your adviser and the IRS.

Tax Pro Plus - Tax Tips Winter 2010

At Tax Pro Plus, we take the stress out of taxes. Enjoy these useful Winter 2010 tax tips including answers about dependents, divorce, first time home buyer credit, gift giving, non-business energy credit, deductible IRAs, Roth conversions and more!Tax Pro Plus Tips Winter 2010

Money Back for New Vehicle Purchases

Taxpayers who buy certain new vehicles in 2009 can deduct the state and local sales taxes they paid. The American Recovery and Reinvestment Act of 2009 (ARRA) provides a deduction for state and local sales and excise taxes paid on the purchase of new cars, light trucks, motor homes and motorcycles through 2009. The deduction is available regardless whether a taxpayer itemizes deductions on Schedule A. Purchased before February 17, 2009 are not eligible for the special deduction. Purchases must be made prior to January 1, 2010.

The deduction is limited to the tax on up to $49,500 of the purchased price of an eligible motor vehicle. The deduction is phased out for joint filers with modified adjusted gross income between $250,000 and $260,000 and other taxpayers with modified AGI between $125,000 and $135,000.