Hidden Off-Shore Accounts

You will be pleased to know that IRS has extended the deadline for disclosing hidden off-shore accounts until October 15, 2009!

Sales and Excise Tax Deduction on your 2009 tax return

The IRS wants you to know:

1. State/local sales and excise taxes paid on up to $49,500 of purchase price of each qualifying vehicle are deductible.

2. Qualified motor vehicles include new cars, light trucks, motor homes and motorcycles.

3. To qualify, the new car, light truck and motorcycle must weigh less than 8,501 pounds. Motor homes are not subject to the weight limit.

4. Purchases must occur after between Feb. 17, 2009 and December 31, 2009 inclusive.

5. Taxpayers who buy new motor vehicles in states with no sales tax (AK, DE, HI, MT, NH, OR), may be entitled to deduct other fees or taxes assessed on the purchase. Fees or taxes that qualify must be based on the vehicles’ sales price or as a per unit fee.

6. Taxpayers may claim the deduction when filing 2009 returns in 2010 (not on 2008 returns).

7. The deduction can be taken whether one itemizes, or not. Taxpayers who don't itemize will add the additional amount to the standard deduction.

9. The amount of the deduction is phased out for taxpayers whose modified adjusted gross income is between $125,000 and $135,000 for individuals, between $250,000 and $260,000 for joint filers.

Computer technology and 529 plan distributions

The IRS wants you to know: the purchase of computer equipment, technology, internet access, and related services, is an allowable use of 529 plan distributions in 2009 and 2010. The 529 beneficiary must use the equipment, technology, and services while enrolled at an eligible educational institution.

Cash for Clunker Appliances

Thinking of buying a new appliance, air conditioner or furnace? Rebates will be available across the country as part of the Economic Stimulus Plan.

States will write their own rules for the rebates. The Department of Energy will review state plans in October. Money should start coming to purchasers by November. Some states may need extra time to structure their plan.

You don't have to trade-in an old appliance, but the idea is to get rid of the energy-wasting appliances currently in your home or office.

IRS Tax Refund Option in 2010

To make it easier for those who get tax refunds to save, the IRS will allow tax filers in 2010 to recoup their refund by issuing U.S. savings bonds.

More than $10,000 in cash

Generally, any person in a trade or business who receives more than $10,000 in cash in a single transaction or in related transactions must file Form 8300 with the IRS.

New Address for IRS Estimated Payments

Massachusetts residents: send IRS estimate payments to this new address, effective for the September 15th 2009 and all subsequent payments:

Internal Revenue Service
P.O. Box 37007
Hartford, CT 06176-0007

This address is also used by residents of:

Maine
Maryland
New Hampshire
New Jersey
Pennysylvania
New York
Vermont