GOOD NEWS - CONSUMER CONFIDENCE IS UP

Consumer confidence climbs to highest level since November

Consumer confidence in the U.S. exceeded the predictions of economists in April, the Conference Board reported. The Consumer Confidence Index, a widely followed benchmark of how consumers feel about the economy, reached its highest level since November. Google/The Associated Press

WHERE IS MY REFUND?

I filed my 2008 taxes and was supposed to get a refund. Is there a way that I can check the status?

Ted

Ted, the IRS has made checking the status of your refund pretty easy. If you already filed your federal tax return and are due a refund, you can check the status of your refund online. Just go to http://www.irs.gov/ and click on Where's My Refund?

Where’s My Refund? gives you online access to your refund information.

If you e-file, you can get refund information 72 hours after IRS acknowledges receipt of your return. If you file a paper return, refund information will be available within three to four weeks.

When checking the status of your refund, have your federal tax return handy. To get your personalized refund information you must enter:

• Your Social Security Number (or Individual Taxpayer Identification Number).
  
• Filing status (Single, Married Filing Joint Return, Married Filing Separate Return, Head of Household, or Qualifying Widow(er)).
  
• Exact refund amount shown on your tax return.

I hope that you get your refund soon.

Larry Kopsa CPA

MY 2008 INCOME IS HIGHER. DO I STILL GET A STIMULUS CHECK FOR 2009?

I had an unusual situation in 2008 that boosted my income from all sources (gross and AGI) by about $15,000 over normal (to over $100K). $11,000 of that went direct to Uncle Sam (I withdrew $ from IRA to pay tax bill on 2007).

Does that mean zero stimulus package payment for me and my husband? Is there an appeals process for special situations?

Nancy

Nancy, sorry, no appeals are built in, but you may not be in a bad spot. I presume that you are referring to the 2009 stimulus, not the 2008 stimulus. (It would seem that we should be pretty stimulated with all of this so called stimulus that they are throwing around). Anyway, here is the deal on the 2009 law.

· Since you are an employee you will get the stimulus through a reduction in your payroll taxes. The money will come though a higher payroll check estimated at about $13 per month. You will get this no matter what.
· The IRS gave your employer new payroll withholding payments. You should probably have seen an increase in your net payroll check.
· When you file your 2009 tax return (by April 15th of 2010) you or your tax preparer will determine whether or not you qualified. If you did not qualify, you will have to pay the money back with your 2009 1040.
· Since you are married, in order to qualify, your adjusted gross income (AGI) for 2009 would have to be under $150,000. The additional money that you made in 2008 makes no difference; it is just your 2009 AGI.
· If you are wondering what you’re AGI is, for 2008 it is on line 87 on the bottom of page one of your 1040.

Please let me know if you have any other questions or if your question was on the 2008 stimulus.

It is a pleasure serving you.

Larry Kopsa CPA

THERE IS STILL CONCERN IN CONGRESS ABOUT AN EPA COW TAX

Did you know that Congress is thinking about passing a tax on cow flatulence? One of the things we keep track of for our Ag clients is what's happening in Washington. Below is the article.

(Nebraska Ag Connection) -- The Nebraska Ag Connection reports that Senator John Thune (R-SD) has criticized an announcement from the Environmental Protection Agency (EPA) "that could result in the implementation of new regulations on carbon dioxide and methane gases, including the creation of a 'cow tax.'" The story states that Thune believes "this is the first step in a slippery slope that could result in implementation of a tax on all CO2 emissions." According to the story, in March, Senator Thune and Senator Charles Schumer (D-NY) introduced S. 527, a bipartisan bill that would prevent the government from imposing a "cow tax" on farmers and ranchers across the country.

The bill was introduced after the EPA last year discussed regulating greenhouse gases, a move that could include requiring farmers to purchase expensive permits. Thune says the "cow tax" would cost South Dakota farmers an estimated $367 million -- or $175 per dairy cow, $87.50 per beef cow, and $20 per hog. "S. 527 is cosponsored by Senators John Barrasso and Mike Enzie, both of Wyoming; Kit Bond and Claire McCaskill, both of Missouri; Sam Brownback and Pat Brown, both of Kansas; Chuck Grassley of Iowa; Mike Johanns of Nebraska; and Amy Klobuchar of Minnesota." See the story at <http://www.nebraskaagconnection.com/story-state.php?Id=297&yr=2009>

LET'S THINK ABOUT THIS

WANT TO SEE PRESIDENT OBAMA'S TAX RETURN?

Drudge has a link to download the 43 page pdf copy of the Obamas' 2008 income tax returns, showing their income of almost $2.7 million. Maybe I need to write a book.

Minor picky point - This tax return is for 2008, before they took over the White House. Yet, look at what they showed as their occupations for 2008.

WHY SHOULD I EXTEND MY RETURN PAST APRIL 15TH?

Before I drop my tax return in the mail I have a question. I heard you speak last year at the IBS show in New York City, and if I remember correctly you said that it is a good idea to extend filing the return until October 15th. Why should I wait?

T.R.

T.R., extending a return depends on your situation. We extend 100's of returns every year. I always extend my return. Don't forget, this is an extension of time to file, not an extension of time to pay. We don't extend returns just to give us more time to finish the returns. We have most of the returns ready to go, but rather than send to the IRS we hold them until the extended due date.

There are a few reasons that we like extending the returns:

• First, when we file your tax return, we have in effect closed out any options we have for the year. This includes items we have made elections on or how to depreciate equipment, taking fast depreciation, capitalization of certain items, etc. Waiting until September/October 15, 2009 gives us a chance to determine whether or not the elections we make at this time are correct.
• The second reason is, supposedly there is less chance of being audited if you do not file your tax return immediately. According to some experts, in order to start the audit process, most 2008 tax returns are chosen for audit by September 1, 2009. Since your return will not be filed, you will not be part of the “audit lottery.”
• We extend your returns because if an earlier year’s return should happen to be audited before we file the extended return, the Internal Revenue Service will not have the current return to look at.

Larry Kopsa CPA