IRS Tax Tip 2006-06

Taxpayers who pay someone to do their taxes should choose a preparer wisely. If you choose to use a paid tax preparer, it is important that you find a qualified tax professional. Taxpayers are ultimately responsible for everything on their return even when it’s prepared by someone else. While most tax return preparers are professional and honest, taxpayers can use the following tips to choose a preparer who will offer the best service for their tax preparation needs.

IRS TAX TIP 2006-18

Every year, more taxpayers discover the benefits of filing their tax return electronically. Whether you use a professional tax preparer authorized by the IRS or do it yourself on a home computer, there are many reasons to consider e-filing your tax return this year.

• Fast.  No more last minute trips to the Post Office - just hit Send!
• Accurate. The electronic filing program checks for errors and necessary information, increasing the accuracy of your return and reducing the need for correspondence with the IRS to clarify errors or omissions.

IRS TAX TIP 2006-26

Taxpayers should make sure that they are aware of important changes to the tax law before they complete their 2005 federal income tax forms. Here are some significant changes that may affect you when completing your 2005 federal tax return:

• Donating Cars to Charity Beginning in 2005, if you donate a car to a qualified charitable organization, your deduction is generally limited to the gross proceeds from its sale by the organization.

"Rather than take responsibility for our common future, Bush has shifted costs to states and communities, who then pass them on to you. Across the country, people are seeing their property taxes skyrocket. State college tuition at 4-year schools has increased this year by an average of $579 nationwide. Half a million children have been deprived of health coverage. States and local government have cut vital services, and we're all having to pay more for less. That's the Bush Tax.

Bush is largely to blame for the fiscal crisis that has forced states and communities to raise taxes and slash services. According to the non-partisan Center on Budget and Policy Priorities (CBPP), "A conservative estimate suggests that federal policies are costing states and localities about $185 billion over the four-year course of the state fiscal crisis." Bush has shifted health costs to states and forced states to pay for unfunded mandates for homeland security, election reform, and No Child Left Behind. As a result, states and communities have had no choice but to raise taxes and cut services. That's the Bush Tax. (For details, see the link below to the CBPP report.)"