Thompson & McCarty, P.C. CPA

Here are some factoids about the taxes we pay.

• In 2005 the federal government took $2.4 trillion out of the pocket of the American people. That is about the same size as the entire 1959 U.S economy in 1959 in inflation adjusted terms.
• According to the Tax Foundation, three fifths of taxpayers believe their taxes are too high. About 2% think they are too low (WHAT!?)
• 80% of taxpayers believe that the tax system is too complex. 3% actually thinks the tax system is fine the way it is. More than 2 out of 3 say they would give up major tax deductions (mortgage interet, taxes) for lower tax rates. (This is a tax spend politicians dream come true. He'll just cut the dedcuction and then say we can't afford the rate cut)
• In 2005 mortgage interet dedcutions account for tax saving of $62 billion with 72% of that going to those with incomes under $200,000.
• The child credit saved taxpayers $46 billion almost all of it claimed by the middle class (That's because this was targeted to the middle class).

Well I am a little late getting this information posted but better late than never. The following rates are the standard mileage rates for 2007.

• 48.5 cents for business mileage
• .20 cents for medical and moving mileage
• .14 cent for charitable miles.

In case you need the official release of code reference you can fin it here.

I have spent a great deal of time writing two reports titled "How To Choose A Tax Preparer" and "How To Choose A CPA". I have never published either of these reports in whole but pieces of these documents have been published in various parts of our site and in a few ads that we have run over the years. I will publish these and make them available to my web visitors and email subscribers some day. However, I ran across a site that says most of the things that I think are important to you in selecting a trusted tax advisor. It is published by a CPA named Kerry M.

There are two hot tax topics that are new for the 2006 filing season (that is right now). One biggie is the telephone excise tax refund which can only be claimed on your 2006 return. This is actually a refund of excise taxes that were charged on our phone bills on long distance telephone calls after February 28th, 2003. The IRS lost the right to charge this tax in Court then lost 5 different Federal Appeals before they gave up and quit charging us the tax on long distance phone services. The refund applies to individuals, businesses, and tax exempt organizations. The refund applies to any phone, including cell phones, and bundled services. There are different rules for each group so how you apply for it will vary.

Rapid refund is a product brand name established and registerd by H&R Block. The generic term is Refund Anticipation Loan (RAL). WE OFFER RAL's.  The reason we offer them is because of client demand. Many of our clients want these and we firmly believe that we have to fill the customer wants and desires.  We spent two years discouraging customers from applying for RALs and the result was less business. I won't make that mistake again. But, I will not be deceptive in the way I offer them either. The interest rate inherent in a RAL is high and if you can pay your tax preparation fees out of pocket and wait 10-14 days for a direct deposit you can save some money. That said, we are ready to serve you if you choose to file for a RAL and we can usually put a check in your hand within 24 hours.

What is a RAL? A RAL is a loan based on your anticipated income tax refund. The repayment of the loan occurs when the IRS processes your tax return and funds the RAL with your actual income tax refund. The loan is not based on credit worthiness although bankruptcy will prevent you from obtaining a loan. Federal or State debt could also prevent you from obtaining a RAL. Examples of such debt are student loans in default, back taxes, child support, and unpaid alimony. It is important to avoid applying for a RAL if you know you have one of these issues. If you do, chances are you will not recieve a RAL in the future.