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David M. Kaufmann, CPA
7200 S. Alton Way,
Suite B-195
Centennial, CO 80112
Voice: 720.493.4804
(toll-free) 800.326.6686
Fax: 303.796.7768
(toll-free) 888.326.6686
Email:
contact2@kaufmann-cpa.com |
Contribution Deduction Recordkeeping Change
These changes to the charitable contribution rules were
hidden in the Pension Protection Act of 2006. There are other changes than
the ones listed below. The ones listed below are likely to hit a large
percent of taxpayers.
Monetary Contributions
After 8/17/06 to deduct a
cash payment to a charity you would need a letter from the charity stating the
name of the charity, the date of the contribution and the amount. This
spells an end to deducting the small cash payments made to organizations like
the Salvation Army. The solution is to write a check to the charity.
Clearly this will be a pain when dealing with the very small contributions.
Noncash Contributions
- The items donated must be in good used
condition or better. Our Recommendation: In an age of
cheap digital photography, take pictures of the noncash contributions.
-
Congress has asked the IRS
to come up with rules for items of minimal value. Used socks and
undergarments fall into this category. [In the discussion of this part of the
law the subject of Bill Clinton's donated underpants came up. This
donation happened when he was governor of Arkansas.]
Phishing in Denver
Denver is rated as the 3rd
most risky city for identity theft.
I have seen an increase in
phishing attempts that look like they are from trustworthy banks.
Naturally, these are not coming from banks. Con artists are the source of
these emails.
The idea is to make you
think that the bank needs updated personal information from you. The email
contains a convenient link that will take you to a bogus Website that looks just
like the bank's Website. Never click on these links! If you need to
go the a bank's Website, type in the Web address (URL), and bookmark the page
for your convenience.
Take this extra step to
make sure that the Website belongs to your bank. At the bank's logon screen,
enter an invalid username and password. The true Website should then
display a screen showing that you entered a bad username and password. If
that is the case, there are good chances that this is a valid Website. If
the Website doesn't give you a nasty bad username warning, exit out of your
browser ASAP.
Telephone Excise Tax Refund For Everyone
Anyone that paid long
distance excise tax after 2/28/2003 and before 8/1/2006 can have those taxes
refunded on your tax returns. There will be an easy and a time consuming
way to compute this refund amount.
The Easy Way
The IRS will let you use a
standard refund based on your 2006 personal exemptions. The refund will be
$30 for 1 exemption, $40 for 2 exemptions, $50 for 3 exemptions and $60 for 4 or
more exemptions.
The Time Consuming Way
Add up your excise taxes
paid for the 41 months after 2/28/2003 and before 8/1/2006.
Circular 230 Disclosure
To ensure compliance with requirements imposed by the IRS, we inform you
that (i) any tax advice contained in this communication (including any
attachments) was not intended or written to be used, and cannot be used, for the
purpose of avoiding penalties under the Internal Revenue Code or (ii) promoting,
marketing or recommending to another party any transaction or matter addressed
herein. |