Services Offered

Standard Mileage Rates

Payroll Guidelines

Bad Debts

Electronic Filing

Privacy Issues

Where's My Refund

Some Hints for Preventing Thefts from Your Checking Account

Child Care Tax Breaks

Retaining and storing your income tax records is an important final step of your tax filing responsibility. This article is a refresher on the rules for keeping your tax records along with some information on storage options.

When determining how long to keep most of your income tax records, we look at the time frame over which the IRS can audit a return and assess a tax deficiency or that you can file an amended return. For most taxpayers, this period is three years from the original due date of the return or the date the return is filed, if later. For example, if you file your 2007 Form 1040 on or before October 15, 2008, the IRS has until October 15, 2011, to audit the return and assess a deficiency. However, if a return includes

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Tax Notebook

2007 CLIENT NOTICE FOR 1099 / 1098 FORMS

If you made payments in the course of your trade or business for (1) rents, services (including parts and materials), prizes and awards or other income payments to an unincorporated entity or independent contractor, or (2) medical and health care payments or legal payments to an incorporated or unincorporated entity of at least $600 during the year, you are required to file Forms 1099 and 1096. You are also required to file these forms if you paid interest or dividends in excess of $10.00.

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Medical Expenses:

What's Deductible & what's not

Acupuncture:

You can include in medical expenses the amount you pay for acupuncture.

Artificial Limb & Teeth :

The amounts that you pay for either artificial limbs or teeth are deductible.

Veterinary Fees:

Only deductible for the care of guide dogs for the seeing-impaired or hearing-impaired, or for other animals specially trained to assist persons with physical disabilities.

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CALIFORNIA EMPLOYEES AND SUBCONTRACTORS

Filing Requirements for Employers

California businesses are required by Federal law to report all new employees and certain independent contractors to the EDD within 20 days of hiring or entering a contract. The EDD may assess a $24 penalty for each failure to report either a new employee or independent contractor. If the employer and employee conspire to omit filing the required information or issue a false or incomplete report, the EDD may assess a penalty of $490. Following is a review of the requirements for each.

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