2008 Extended Tax Credits

Due to the recent passing of the Emergency Economic Stabilization, Energy Improvement and Extension, and Tax Extenders and AMT Relief Acts of 2008, the following tax credits have been extended for 2008 tax returns:

• Deduction of state and local taxes
• Above-the-line deduction for higher education expenses
• Tax-free distributions from individual retirement plans for charitable purposes
• Educator expense deduction
• Additional standard deduction for state and local real estate taxes extended for 2009 tax returns

If you have questions on how these apply to you, please do not hesitate to contact our office for assistance.

IRS Audit

IRS audit. These two words seem to do wonders at getting almost anyone's attention. If you would like to increase your chances of a positive outcome from such an audit, let Valley Oak Financial show you the benefits of the VOF scanning and paperless storage system. This system requires only minor changes to the day-to-day operation of your accounting records and can make them more organized than ever before. If you should ever be so unlucky to be audited, the VOF scanning and paperless storage system can completely eliminate the excess time required to gather records for verification of your deductions. Finally, if you are ever selected for audit, please seek proper representation. Initially it may seem like only an added expense to an already unfortunate situation, but in the end, appropriate representation is worth the cost. All too often an individual will wait and seek help after the fact, creating a drawn-out, uphill battle.