taxnewsfr

<body stylesrc="taxnews.htm" background="Image2.gif" bgcolor="#FFFFFF">  <div align="center"><center> <address> <a name="maintop"></a> </address> </center></div><div align="center"><center> <table border="2" cellpadding="2"> <tr> <td><a href="2002tlcp2.htm"><font size="2">2002 Tax Law Changes</font></a></td> <td><a href="taxplan.htm"><font size="2">Tax Planning Tips</font></a></td> <td><a href="roth.htm"><font size="2">Roth IRA</font></a></td> <td><a href="news.htm"><font size="2">Our Services</font></a></td> </tr> </table> </center></div> <p align="center"><img src="ag_flag.gif" alt="Tax News" align="left" hspace="0" WIDTH="100" HEIGHT="55"><font size="7"><strong>TAX NEWS</strong></font></p> <p><font size="4"><strong>Updated Weekly</strong><img src="taxnew1.gif" align="left" hspace="0" vspace="25" width="665" height="26"></font></p> <p align="center"> </p> <p> </p> <p class="head"><font size="4"><b><u>1 MILLION PEOPLE MAKE THIS MISTAKE<br> </u></b></font><font size="4">Remember the check you got last year from Uncle Sam? Well, that extra tax refund last year is causing so much confusion that it's delaying this year's refunds.</font></p> <p class="body"><font size="4">The Internal Revenue Service reports that more than 1 million people have made an error reporting the advance payment the government sent out in 2001 and 2002. Those who have made the mistake may have this year's refund delayed by a week or more.</font></p> <p><span class="body"><font size="4">Most people got a check from Uncle Sam last summer as part of the overall lowering of tax rates.</font></span></p> <p><span class="body"><font size="4">The maximum amounts were:</font></span></p> <ul> <li><span class="body"><font size="4">$300 for single people or married people filing separately.</font></span> <li><span class="body"><font size="4">$500 for single heads of households.</font></span> <li><span class="body"><font size="4">$600 for married couples filling jointly, or qualifying widowers.</font></span></li> </ul> <p class="body"><font size="4">If you got the maximum, leave line 47 blank on your Form 1040 (line 30 of Form 1040A and line 7 of Form 1040EZ).</font></p> <p><span class="body"><font size="4">Those who didn't, or who got less than the maximum amount, should use the new line on the tax form -- it's there for folks who need a second chance at the money on their 2001 return by claiming the rate reduction credit. Follow this year's instructions for computing the amount.</font></span></p> <p><font size="4"> <br> <u>New due date for Household Employee's W2<br> </u>   The IRS says employers will have until Feb. 15, 2003 to give W-2 forms to their housekeepers, nannies and other household employees. Usually, employers are required to give these forms to their employees by Jan. 31. "The extension of time is a result of a late mailing of Package H," the forms and instructions booklet sent each year to those who filed tax returns as household employers the year before.</font></p> <p><font size="4"><u>IRS Audit Results<br> </u>    About 23% of IRS Audits in 1998 resulted in "no change" in the taxpayer's liability as reported on the return, up from a 19% no-change rate in 1994.</font></p> <p><font size="4"><u>Many High Income Taxpayers Do Not Itemize</u><br>    About 9% of all individual taxpayers with adjusted gross income of $1 million or more for 1999 did not itemize, instead choosing to use the standard deduction.</font></p> <p><font size="4">Reasons include low levels of charitable contributions, living in states with no income tax, and poor tax advice. </font></p> <p> </p> <p align="center"><map name="FPMap0_I1"> <area href="default.htm" shape="rect" coords="7, 4, 449, 58"></map><img src="fullban.gif" border="0" usemap="#FPMap0_I1" width="454" height="63"></p> <p align="center"><b>MAXWELL SHMERLER & CO., CPAs<br> HELPING BUSINESSES SINCE 1913</b></p>  </body>