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Subject Author Date
Income Basis For Proposed "Tax Rebate" William Brenner 01-24-2008
Posted by William Brenner on January 24, 2008, 8:11 pm
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 Has anyone seen or heard of just how IRS is going to determine
the income basis that will be used to establish individual
eligibility and the amount to be "rebated" based on actual income,
children, etc?

To use 2007 income, they would have to wait until April, when the bulk
of returns are filed. And then there are those who file for extensions.
2006 income? Not too accurate a basis.

There was speculation today (1/24) that it might be April, May or even
June before the rebate checks are cut. The reason given was that IRS is
"busy" now with "other things" -- like collecting taxes?. Perhaps this
is their cover for waiting until the bulk of 2007 returns are filed. In
the meantime, the economy sputters on.

Of course, all of the above depends on the Congress and administration
stopping patting themselves on the back long enough to pass a bill and
get this moving.

What a mess!

--
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Posted by Harlan Lunsford on January 24, 2008, 8:35 pm
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 William Brenner wrote:
> Has anyone seen or heard of just how IRS is going to determine
> the income basis that will be used to establish individual
> eligibility and the amount to be "rebated" based on actual income,
> children, etc?
>
> To use 2007 income, they would have to wait until April, when the bulk
> of returns are filed. And then there are those who file for extensions.
> 2006 income? Not too accurate a basis.
>
> There was speculation today (1/24) that it might be April, May or even
> June before the rebate checks are cut. The reason given was that IRS is
> "busy" now with "other things" -- like collecting taxes?. Perhaps this
> is their cover for waiting until the bulk of 2007 returns are filed. In
> the meantime, the economy sputters on.
>
> Of course, all of the above depends on the Congress and administration
> stopping patting themselves on the back long enough to pass a bill and
> get this moving.
>
> What a mess!
>
We certainly agree on that! As Ollie said to Stan: "That's anOTHER
fine mess you got us into."

"they" can't wait until 2007 returns are filed to have a foundation to
base any so called "rebates" on. They will have to use 2006 in my opinion.

Now they're talking about maybe in May getting checks out.

Married Joint client today asked about it, when will they get their
1600$. (Of course we know now it's max of 1200$). I had to tell them
that most probably they would not be getting anything atall, since they
had no tax liability in 2oo6 since income was only pension plus social
security.

Oh boy, it's going to be FUN!

ChEAr$,
Harlan Lunsford, EA n LA

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by D. Stussy on January 26, 2008, 12:32 am
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> William Brenner wrote:
> > Has anyone seen or heard of just how IRS is going to determine
> > the income basis that will be used to establish individual
> > eligibility and the amount to be "rebated" based on actual income,
> > children, etc?
> >
> > To use 2007 income, they would have to wait until April, when the bulk
> > of returns are filed. And then there are those who file for extensions.
> > 2006 income? Not too accurate a basis.
> >
> > There was speculation today (1/24) that it might be April, May or even
> > June before the rebate checks are cut. The reason given was that IRS is
> > "busy" now with "other things" -- like collecting taxes?. Perhaps this
> > is their cover for waiting until the bulk of 2007 returns are filed. In
> > the meantime, the economy sputters on.
> >
> > Of course, all of the above depends on the Congress and administration
> > stopping patting themselves on the back long enough to pass a bill and
> > get this moving.
> >
> > What a mess!
> >
> We certainly agree on that! As Ollie said to Stan: "That's anOTHER
> fine mess you got us into."
>
> "they" can't wait until 2007 returns are filed to have a foundation to
> base any so called "rebates" on. They will have to use 2006 in my
opinion.
>
> Now they're talking about maybe in May getting checks out.
>
> Married Joint client today asked about it, when will they get their
> 1600$. (Of course we know now it's max of 1200$). I had to tell them
> that most probably they would not be getting anything atall, since they
> had no tax liability in 2oo6 since income was only pension plus social
> security.
>
> Oh boy, it's going to be FUN!

...And the Senate discussion of the bill wants to include retirees. They
might not be getting zero.

However, no one gets anything until the thing gets signed into law. Until
then, why worry?

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by Harlan Lunsford on January 26, 2008, 11:02 am
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D. Stussy wrote:

>
> ...And the Senate discussion of the bill wants to include retirees. They
> might not be getting zero.
>
> However, no one gets anything until the thing gets signed into law. Until
> then, why worry?
>

Not a question of "worrying" about it. Those of us in the business face
these questions from our clients and that's why we have to stay abreast
of what's happening.

ChEAr$,
Harlan Lunsford, EA n LA

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by Paul Thomas on January 24, 2008, 8:40 pm
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> Has anyone seen or heard of just how IRS is going to determine
> the income basis that will be used to establish individual
> eligibility and the amount to be "rebated" based on actual income,
> children, etc?


I read it's $300 per person, children too....not to exceed $1200 per family.




> To use 2007 income, they would have to wait until April, when the bulk of
> returns are filed. And then there are those who file for extensions.
> 2006 income? Not too accurate a basis.


Indeed, and those who file extensions will have to wait longer......

I suspect it'll be based off of the 2006 return data.




> There was speculation today (1/24) that it might be April, May or even
> June before the rebate checks are cut.


I think they are shooting for June, but if you remember back some 7 years
ago when they did this before, it took several weeks and a couple of weeks,
up to a month and a half to mail out several hundred million checks, so I
suspect they'll be sending checks in July as well.



> The reason given was that IRS is "busy" now with "other things" -
> - like collecting taxes?.


Naa, it's a major task to do something that hasn't been done in 7 years.




> Perhaps this is their cover for waiting until the bulk of 2007 returns
> are filed.



Most likely it'll take weeks to develop the program to compute and print
checks. Now you're into March at least.




> In the meantime, the economy sputters on.


Or even grows.........




> Of course, all of the above depends on the Congress
> and administration stopping patting themselves on the
> back long enough to pass a bill and get this moving.
>
> What a mess!



What can you do with $300? For some folks, that's their kids monthly
texting bill. It was cheaper with walkie talkies or a string and two tin
cans.





--
Paul A. Thomas, CPA
Athens, Georgia

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

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