CPA

H&R Block

57924 LaBauve Ave            6631 Hwy 1 South

Plaquemine, LA 70764            Addis, LA 70710

(225) 687-3531                     (225) 749-7715

Doyle Fillastre, CPA, CIA, MS

Q: When should I look for assistance from a financial professional?

A: Any significant change in your personal or career situation could create the need to consult with a financial professional. Changing jobs, change in martial status, the birth of a child, receiving a promotion at work, becoming eligible for employee benefits, loss of employment, buying a house, buying insurance, removing money from retirement plans, and starting a small business are only a handful of life and career occurrences that can have a significant impact on your financial resources. The wrong moves could cost you hundreds of thousands of dollars now and in the future. From preparation of federal and state income tax returns to asset protection plans to business plan development, you should seek the advice and guidance of a competent financial professional who has the education and training to service your individual needs when you experience a life or career changing event.

Q: Can I deduct the gas for my car when I travel for business?

A: There are two alternatives to deducting the business use of your automobile: mileage method and actual expense method. For either method, you must document your business use of your automobile. Under the mileage method, you simply deduct a standard mileage rate for each business mile driven. This rate is changed often, usually annually, by the IRS. The standard mileage rate for 2007 is 48.5 cents per mile. Under the actual expense method, you may deduct the portion of actual expenses attributable to your automobile proportionate to your business use. For example, if you used your car 60% for business, you may deduct 60% of the expenses. Expenses include depreciation (subj. to limitations), licenses, gas, oil, lease payments (subj. to limitations), insurance, registration fees, repairs, and tires. A portion of the interest paid on a car loan may also be deductible. Also, be aware that travel between your home and business is personal, not business mileage.

Q: Is it true that the tax season itself and related refunds will be delayed?

A: There is some truth to this rumor. On December 6, 2007, the Senate passed a one-year fix to the alternative minimum tax (AMT), setting up a potential confrontation with the House, which passed a much different version of the bill earlier. When Congress finally passes the AMT patch, the IRS will need to reprogram its systems, a process that usually takes 7 weeks from the day the patch becomes law. “If the IRS must postpone accepting returns in the early part of the filing season in 2008, it would delay the processing of returns and the issuance of the associated refunds,” the IRS Oversight Board noted in a Nov. 26 report. If a patch is not signed into law until Christmas Eve, the filing season could be pushed to Feb. 4 That would delay the processing of 15.5 million affected returns from which the agency is likely to issue 13.3 million refunds totaling more than $39 billion, according to the IRS Oversight Board. If they wait until the week of Jan. 7, the filing season won’t get started until the week of Feb. 18. That would affect 38 million returns from which 32 million refunds worth $87 billion would be issued.

Q: Can I file my taxes with my last paystub?

A: This is a frequently asked question at this time of year. The short answer is NO, W-2s are required. IRS Pub. 1345, which governs the electronic filing of tax returns specifically states on page 27 that “Individual income tax returns MUST NOT be electronically filed prior to the ERO’s (tax preparer’s) receipt of Forms W-2, W-2G, or 1099-R.” The misconception evolved due to the prevalance of pre-season and holiday loans offered by many retail tax outlets that utilize the pay stub for the loan application. You should be skeptical of the professionalism and qualifications of any tax office that offers to electronically file your tax return with your paystub.