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Strategic Issues...Online
For week ending June 15, 2007, Issue #304                   Click Here for past issues
 
Featured Articles:
1.  Important Tax Provisions in New Bill
2.  Dial-up EFTPS Support Ends This Year
3.  Tech Tip Weekly:  Spacing with Points in MS Word
4.  Compliance Calendar
If you would like to have further information on any of these articles, let us know. 
We would appreciate receiving your comments and/or suggestions, anytime!
 mripley@pmcpa.com
1.  Important Tax Provisions in New Bill

The "Small Business and Work Opportunity Tax Act of 2007" (H.R. 2206) provides additional funds for the Iraq war, increases the Federal minimum wage from $5.15 to $7.25 over two years, provides approximately $5 billion in tax breaks for small business, and makes technical corrections to the Pension Protection Act of 2006.

Specific tax incentives include:

  • Extending the work opportunity credit (WOTC) for 3 1/2 years (through August 31, 2011) as well as its availability to disabled veterans and rural counties with decreasing populations;
  • Increasing the section 179 expensing limit to $125,000 and extending through 2008 business limits in the Gulf Opportunity Zone;
  • Modernizing S corporation rules;
  • Freezing the minimum wage to calculate the tip credit;
  • Waiving the individual and corporate AMT limitations on the WOTC and the tip credit.
Some of the revenue raising proposals that offset the tax package include:
  • Expanding the "kiddie tax" to apply to those under age 19 or, for full-time students, underage 24;
  • Extending to 36 months the amount of time the IRS has to provide taxpayers with notices of deficiency before the agency must suspend the imposition of interest and penalties on underpayments;
  • Reducing the amount of credits taxpayers may claim under the FICA/tip credit because of the minimum wage increase;
  • Permanently extending IRS user fees for letter rulings, determination letters, opinion letters, or other similar rulings or determinations;
  • Increasing the penalty for bad checks and money orders sent to the IRS; and creating a new penalty for refund claims that have no reasonable basis.

 
2.  Dial-up EFTPS Support Ends This Year
 
All Electronic Federal Tax Payment System (EFTPS) users currently using the old EFTPS dial-up software must convert to an enhanced version of the free software by October 31, 2007.
 
The orignal EFTPS dial-up sofware issed prior to 2006 will not be supported after that date.
 
The enhanced Batch Provider Software and a Quick Start Guide are available for download at Welcome to EFTPS Online at www.eftps.gov.  "Help & Information" and then "Download" to choose the product to download.
 
 

 

 

3.  Tech Tip Weekly:  Spacing with Points in MS Word
 
The amount of space MS Word sticks between paragraphs is measured in points, and there are 72 points in an inch. (It's the same size that fonts are measured in.) So if you use a 12-point font, a space of 12-points between paragraphs adds an extra line. Six points (6pt) is half a line of text.
 
The boxes where you input point values in the Paragraph dialog box have "spinners" on them. If you click the up or down arrows on the spinners, you increase or decrease the spacing between lines in 6-point increments. If you need more specific values, you can type them in directly.
 
 
 
4.  Compliance Calendar
 
June 15
 
- Federal 1040-ES & MI-1040-ES due
- Employers deposit Social Security, Medicare, and withheld income tax for June 9, 10, 11 & 12
 
June 17
 
We would like to wish all the dads out there a very Happy Father's Day!
 
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