Tax Information For Michigan Senior Citizens & Retirees

The most commonly used information for senior citizens and retirees includes information on income tax credits that many senior citizens can qualify for, even if they do not file Michigan Income Tax (MI-1040) forms..........

Michigan Treasury

Survey of CPA Financial Planners Shows Life Decisions in Limbo Because of Finances

Having enough money to retire and pay for major life needs, such as healthcare and education, are top concerns of Americans facing financial pressures, according to CPA financial planners surveyed by the American Association of CPAs (AICPA)........

View the Survey Results>>

Good News For Taxpayers Who Didn't Take Enough From A Plan Or IRA

Those folks needn't pay the penalty first and then seek a refund, IRS says.
In the past, folks who failed to take a required minimum payout had to pay the 50% penalty up front, even if they had reasonable cause
Kiplinger

Editor's Note:

Waiver of tax. The IRS can waive part or all of this tax if you can show that any shortfall in the amount of the distribution was due to reasonable error and you are taking appropriate steps to remedy the shortfall.
If you believe you qualify for this relief, attach a statement of explanation and file Form 5329 as follows:

http://www.irs.gov/pub/irs-pdf/f5329.pdf

*1. Complete lines 50 and 51 as instructed
*2. Enter "RC" and the amount you want waived in parentheses on the dotted line next to line 52 Subtract this amount from the total shortfall you figured without regard to the waiver, and enter the result on line 52
*3. Complete line 53 as instructed. You must pay the tax that is reported on line 53.

The IRS will review the information you provide and decide whether to grant your request for a waiver. If request is denied, IRS will send you a bill.

Protect Your 401(k) In Turbulent Times

For many American workers, just thinking about the damage done to their retirement accounts since the beginning of 2008 can be painful. Worries of a U.S. recession have sent worldwide markets into a tailspin, dragging hundreds of billions of dollars invested in retirement plans along for the ride.

So what can you do to stem the flow of any more money out of your 401(k), 403(b) or 457 plan?................

Kiplinger

Cox Announces Michigan Foreclosure Forums

January 23, 2008 LANSING - Following up on the nation's most widely attended mortgage foreclosure forum in the nation, Michigan Attorney General Mike Cox today announced that his office is holding three more Avoid Foreclosure forums to help at risk homeowners. The new forums will be in Detroit on February 12, Saginaw on February 13, and Grand Rapids on February 14. Cox held the nation's largest foreclosure forum in Detroit last month, where more than 4,200 homeowners had an opportunity to speak face to face with servicers and independent loan counselors. The forum is open to the public and free of charge..........

"Free Lunch" Seminars Can Cost Seniors Big Bucks

The Michigan Office of Financial and Insurance Services (OFIS) Acting Commissioner Ken Ross cautioned today that a major new national study shows that unsolicited invitations to “free investment meal seminars” should raise red flags for Michigan’s older investors.

Additional Link: http://tinyurl.com/2og33l

Michigan State Driver's License Requirements Now Include Permanent Legal Presence In U.S.

JANUARY 21, 2008

Michigan Secretary Land promotes border, document security.
First-time applicants for a Michigan driver's license or identification card must prove that they have established a permanent legal presence in the United States, under a requirement taking effect Tuesday, Jan. 22, Secretary of State Terri Lynn Land announced today.

Michigan Secretary of State

Michigan Estate Recovery Act

Law signed 9-30-07 with immediate effect, BUT requires "Approval by the Federal Government" before implementation.

ICLE

EEOC Ruling Hits Older Retirees

Thousands of retirees age 65 and older may be digging deeper into their pockets to pay for supplemental health care coverage following a federal ruling that permits employers to cut benefits for retirees who are eligible for Medicare.................

AARP

Life Insurance Policy Search

For a $75.00 fee, the trade association group MIB Solutions ( http://tinyurl.com/yuohml ) will search its policyholder database, which has more than 140 million records. But in order to get this information you must provide proof that you've been appointed executor or administrator of the estate ,and you must have an original death certificate with an official seal.

Pension Benefits - Age 62 Or Older

Individuals who are age 62 or older and still working are eligible to receive pension benefits from current or former employers.

The Pension Protection Act of 2006 allows, but does not require, companies to pay pension benefits to such employees.

Individuals should check with their human resources department to see what their plan allows. Most employers probably won't allow it until the IRS issues final regs, which could take months or years. Some employers might never allow it.

AARP

As automatic enrollment increases 401k participation, there will be more people who qualify for the retirement savings contribution credit. But it's easy to overlook this tax benefit.
Details: Don't Overlook Savings Credit

Fairmark Press

Tips For IRA Season

During the first few months of the year, many taxpayers will be looking for ways to reduce their tax burden for the previous year, and also take advantage of tax benefits where possible. Receiving the maximum possible benefits requires some diligence, such as making sure any IRA contributions are made to the right type of account, and also ensuring other transactions are processed correctly. Let’s review some tips that can be helpful to taxpayers..............

The Retirement Dictionary

New Michigan Developments For Tax Year 2007

Booklets will be mailed to individuals in January - Forms and instructions are currently available on the Web ( http://tinyurl.com/2yxjcy ). Requests for booklets will be taken beginning in early February...........

Michigan Treasury

National Taxpayer Advocate Delivers Report To Congress

WASHINGTON — Jan. 9, 2008 - National Taxpayer Advocate Nina E. Olson today released her annual report to Congress, focusing particular attention on the consequences of changes to the tax code enacted late in the year and the need for a coordinated IRS approach to combat the cash economy portion of the tax gap. Olson also urged Congress to enact a Taxpayer Bill of Rights and to authorize symbolic “apology payments” in egregious cases where taxpayers suffer significant harm as a result of IRS errors. The report contains a second volume that describes the results of six research studies, including one that shows that low income taxpayers fare much better in IRS Earned Income Tax Credit audits when they are represented by practitioners.............

SBTV (Small Business TV) Offers Daily Tax Tips For Small Business

http://tinyurl.com/23y9aa

January 2008

Keep Your Financial Resolutions This Year

Sure-Fire Steps to Achieve Your Financial Goals

Tax-Deductible Donations: What You Need to Know

Tax-Smart Retirement Planning

Indiana CPA Society

Certain CWT Payments To Disabled Veterans Ruled Tax-Free; Some May Be Due Refunds

Dec. 12, 2007
WASHINGTON — Payments under the Department of Veterans Affairs (VA) Compensated Work Therapy (CWT) program are no longer taxable and disabled veterans who paid tax on these benefits in the past three years can now claim refunds, the Internal Revenue Service said today.............

Tax Return Preparer Fraud

Return preparer fraud generally involves the preparation and filing of false income tax returns by preparers who claim inflated personal or business expenses, false deductions, unallowable credits or excessive exemptions on returns prepared for their clients. Preparers may manipulate income figures to fraudulently obtain tax credits, such as the Earned Income Tax Credit.

In some situations, the client, or taxpayer, may not have knowledge of the false expenses, deductions, exemptions and/or credits shown on his or her tax return..........

Internal Revenue Service

IRS Issues Final Regs On Preparers Use And Disclosure Of Return Information

The IRS has issued final regulations under Code Sec. 7216 governing the disclosure and use of return information by return preparers and the requirements for a valid taxpayer consent to such disclosure or use..........

CCH

2008 IRS E-File Refund Cycle Chart

Internal Revenue Service

Michigan Business Tax Estimator

Except as noted below, the estimator works for firms who file SBT form C-8044 or C-8000. Businesses that did not file an SBT return, or gross receipts short filers (who pay tax on ½ of gross receipts but do not complete form C-8000), will have to estimate the amounts requested from lines on SBT forms.

This estimator provides an unofficial estimate and has no legal bearing on any future tax liability. The estimator is a secure, encrypted site and does not track the user’s identity and none of the data is retained............

Michigan Treasury

Tax Packages Arrive In Mail

Washington — IRS Reminds Taxpayers To E-File And Watch For Tax Law Changes.
With millions of tax packages beginning to arrive in mailboxes this week, the Internal Revenue Service reminded taxpayers to watch for commonly overlooked tax credits and late tax law changes that could affect their tax returns.
Packages do not include credit forms

Highlights Of 2007 Tax Changes, Law Raises AMT Exemption, Filers of 5 Forms Must Wait Until Feb. 11
http://tinyurl.com/257rd7

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