FSG Client Communication Briefing – Important Tax Update
Happy Holidays from Uncle Sam!
On Wednesday, Congress passed the much anticipated (and delayed) bill to alleviate the income tax increase to millions of taxpayers this year by increasing the Alternative Minimum Tax exemption amount. President Bush is expected to sign the bill into law this week. Prior to this change, the exemption amount would have decreased significantly from last year resulting in thousands of dollars of additional taxes for many taxpayers.
Since the new exemption amount will be even higher than last year's amount, if you did not pay any alternative minimum tax in 2006, you will probably not have to pay it this year either (unless your income increased significantly).
Regardless of whether you are subject to the Alternative Minimum Tax, the IRS is threatening a seven week delay to begin the tax filing season because they will have to reprint forms and update their tax processing software to accommodate the new changes. This is an unfortunate byproduct of Congress waiting until December 19 th to make changes which could have been done months ago.
We still plan to send tax organizers in January to clients whose tax returns we will prepare this winter but it is important to recognize there may be delays beyond our control in getting the returns processed by the IRS.
We hope you and your family have a happy holiday season. We will see you in the New Year!
Sincerely,
Justus Morgan, CFP, EA
Financial Service Group, Inc.
(262) 554-4500 x1
justus@toyourwealth.com