Tax attorney warns of delays in filing of individual tax returns, receipt of refunds and highlights
December 19, 2007
Dec 20, 2007 -- /prbuzz/ --FOR IMMEDIATE RELEASE December 19, 2007

For more information, contact:
Bryan A. Gutraj, CPA, Attorney at Law
(847) 996-1213

TAX ATTORNEY WARNS OF POTENTIAL DELAYS IN FILING OF INDIVIDUAL TAX RETURNS, RECEIPT OF REFUNDS AND HIGHLIGHTS SEVERAL TAX LAW CHANGES.

Libertyville, IL -- Today, Congress passed legislation change the alternative minimum tax ( AMT ) laws and, if signed into law by President Bush as is expected, it will take the IRS up to 7 weeks to update their systems, amend the tax forms, and provide guidance on the new laws. Therefore, the IRS may delay the filing of ALL individual tax returns, and the refunds if appropriate, until late February 2008.

Illinois CPA and Attorney, Bryan A. Gutraj, warns that taxpayers who rely on their income tax refunds to pay for holiday spending or other bills in early 2008, may not receive their tax refund until March 2008.

The alternative minimum tax was designed to ensure that all taxpayers pay at least the minimum federal income tax for their income level, no matter how many deductions or credits they claim. In 2006, 4 million taxpayers were affected by the AMT, but it is estimated that nearly 24 million taxpayers would have been impacted in 2007 if Congress had not acted.

Additionally, there have been numerous changes in tax laws which affect taxpayers. Several of the broader changes include:
1. Charitable contributions: MUST be supported by a dated bank record or receipt.
2. Private Mortgage Insurance (PMI): Premiums paid during 2007 in connection with home acquisition debt may be deductible as itemized deduction.
3. Retirement Contributions: Maximum elective deferral for 401(k), 403(b), 457 plans increases to $15,500 ($10,500 for SIMPLE).
4. Catch-up Contributions: Up to $3,000 allowed to an IRA for certain 401(k) plan participants whose employer filed for bankruptcy.
5. Tax Free Distributions to charity: Taxpayers 70.5 years of age or older can make tax-free distributions from their IRA to a qualified charity.
6. Educator expenses: extended through 2007, $250 can be adjustment of income and not itemized deduction.
7. Section 179: Maximum deduction increases to $125,000 ($160,000 for enterprise zone and renewal community businesses; $225,000 if qualified section 179 Gulf Opportunity Zone property.)
8. Mileage Rates: Using one’s personal car for business is calculated at 48.5 cents per mile in 2007 and 50.5 in 2008; Use of one’s car for medical reasons or a deductible move is expensed at 20 cents per mile; Use of one’s car for charitable purposes is 14 cents per mile.
9. Hybrid Vehicle Credits: Taxpayers who purchase certain light trucks and buses that run on alternative fuel may receive a credit of up to $32,000. Purchasers of large hybrid vehicles that qualify for the Alternative Motor Vehicle Credit may claim a credit of up to $12,000. Qualified Alternative Motor Vehicles must be completely powered by alternative fuels such as natural gas, liquefied natural gas, liquefied petroleum gas, hydrogen and any liquid at least 85 percent of the volume of which consists of methanol. Vehicles using a combination of fuels may receive a reduced credit. Adding fuel converters to new or currently owned vehicles may warrant a tax credit. Purchasers of heavy hybrid vehicles weighing in excess of 8,000 pounds may be eligible for a tax credit.

Bryan Gutraj is an Illinois licensed Certified Public Accountant ( CPA ) and Attorney, whose firm is headquartered in the northern Chicago suburb of Libertyville, Illinois. His accounting practice consists of individual and business tax and financial statement preparation, dispute resolution, and consulting services, while his legal practice focuses on tax, corporate, estate planning and real estate matters. Visit www.gutraj.com to learn more about his practice and background.

Bryan is available for interviews for television, radio, and print media outlets. If you would like more information on these topics, or to schedule an interview, please contact Bryan Gutraj at (847) 996-1213 or This email address is being protected from spam bots, you need Javascript enabled to view it
About the Press Release
The Internal Revenue Service ( IRS ) may delay the filing of all individual tax returns, and the refunds if appropriate, until late February 2008 due to changes in the alternative minimum tax ( AMT ).


 
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