FAQ's

Which credit cards do you accept?
Do JBDAVIS Company accept checks?
When and where is payment made?
IRS Taxpayer Help and Education - Frequently Ask?
Adoption Credit?
Additional Child Tax Credit?
Automobile Mileage Rates?
Child and Dependent Care Expense Credit?
Child Tax Credit?
Disclosure Rules for Tax Preparers?
Earned Incone Tax Credit?
Foreign Earned Income Exclusion?
Coverdell Educ.Sav.Accts (formerly known as Educ.IRA)?
Marriage Penalty Relief?
Katrina Displaced Individuals Exemption-Housing?
Pensions: IRA Contribution Limits Increased?
Rate Reduction Credit?
Section 179 Deduction Limits?
Self-Employed Health Insurance Deduction?
Social Security Earnings Limit Repealed?
Student Loan Interest Deduction?
Day Care Providers STD Meal Allowance?
Gift Tax Annual Exclusion?
Taxpayers Penalties?
Taxpayers Preparer Penalties?
Tax Rate Reduction?

FAQs

Which credit cards do you accept?
Visa, Mastercard,American Express and Discover/Novus cards are accepted, as well as debit cards which bear the Visa or Mastercard logo.Back to Top


Do JBDAVIS Company accept checks?

Yes, JBDAVIS Company accept checks. There will be a $50.00 returned check fee for all returned checks. This fee will cover bank cost, the time involved in contacting the customer(s) to make aware of this occurrence, administrative fee(s) of reissuing new payment instructions with the outstanding balance and adjusting the accounting for the day of occurrence.Back to Top


When and where is payment made?

Payment is due in full at the time of service, unless prior arrangements have been made. Payment shall be made by using any of the above payment methods - in person, by mail or through e-commence.Back to Top


IRS Taxpayer Help and Education - FAQs
  Click Here for Detailed IRS FAQ's  Back to Top


Adoption Credits?

Adoption credit and the exclusion are now permanent provisions for all adoptions of eligible children. The dollar limitation is increased to $11390 for each child, regardless of whether or not the child has special needs. Credit and exclusion is phased out for modified AGI between $170,820 and $210,820. The credit is only allowed in the year that the adoption becomes final. Expenses include reasonable ans necessary adoption fees, court costs, attorney fees, traveling expenses and other expenses directly related to the legal adoption of an eligible person. Updated: ***Updated Mar.2008***Back to Top


Additional Child Tax Credit?

The child tax credit is now a refundable credit for taxpayers with one or more qualifying children when the taxpayer is not able to claim the full child tax credit for each child (because tax liability is less than the available credit). The additional credit is the smaller of the child tax credit remaining after regular tax and AMT to zero. Last year the child tax credit was refundable only if the taxpayer had three or more qualifying children. Back to Top

FAQs


Automobile Mileage Rates?....[2004]

Standard mileage rate for business in 2005 is 48.5 cents per mile (P/M; 14 cents P/M for charitable miles, medical and moving miles, are 20 cents P/M ***Updated Mar.2008***Back to Top


Child and Dependent Care Expense Credit?....[2003]

The amount of qualifying expenses eligible for the credit is $3,000 for one individual and $6,000 for two or more individuals. The $5,000 exclusion under an employer dependent care assistance plan was not changed by the new law. ***Updated Jan.2006***Back to Top


Child Tax Credit?..[2005]

Child Tax Credit is $1000 for years 2003 to 2010. After 2010, the credit goes back to the prior law rules $500. Back to Top


Disclosure Rules for Tax Preparers?

Professional income tax practitioners are required to provide a notice to their customers annually. Tax practitioners are prohibited from disclosing nonpublic personal information about a consumer to nonaffiliated third parties unless the practitioner satisfies various disclosure and opt-out requirement and the consumer has not elected to opt out of the disclosure.Back to Top


Earned Income Tax Credit

Earned income for purposes of calculating EIC, the Taxpayer's investment income cannot be more than $2,900. New definition for qualifying child (1)Child of taxpayer or descendant or legal child (2) Had the same principal place of adobe in the U.S. as the taxpayer for over half the year (3) Under 19 as of year end or was a student who was under age 24 as of year end (4) Was unmarried at year-end (5) Meets identification requirement, for Zero children up to $428, One (1) Child up to $2853, Two or more Children up to $4716. *** Updated Mar.2008***Back to Top


Foreign Earned Income Exclusion

The foreign earned income exclusion limit in is $85,700 2007. After 2007, the limit will increase based on cost-of-living- adjustments. ***Updated Mar.2008***Back to Top


Education Saving Accounts

Contribution limits to all ESAs set up for any one beneficiary is $2,000 per year. Modified AGI phase-out ranges for contributors increases to $190.000 - $220,000 for MFJ and $95,000 - $110,000 for all others. Qualified education expenses include certain elementary, and secondary school expenses. Contributions can now be made up to the due date of the return April 15th (not including extensions). Tax free distributions can be used for special needs services. The definition of family member is expanded to include first cousins of the designated beneficiary. ***Updated Mar.2008***Back to Top


Marriage Penalty Relief

The 2003 Tax Act accelerates the marriage penalty relief provisions of 2001 by making the MFJ standard deduction, the 10% tax bracket and the 15% tax bracket 200% of the amounts for Single filers. Tax legislation has provided this relief for the tax years 2003 to 2010 ***Updated Mar.2008***Back to Top


Katrina (Hurricane)Displaced Individuals Exemption

The new law provides an additional exemption of $500 in taxable years 2005 and 2006 for each Hurricane Katrina displaced individual claimed by the taxpayer. The total of $2000 for MFJ, $1000 for MFS and $2000 for all others. Requirements (1) Main home on 8/28/2005 was in Katrina disaster area (2) was displaced from rhe home (3) Provided free housing for a preriod of 60 CONSECUTIVE days which ends in the taxable year in which the exemption is claimed (4) Taxpayer identification number of the displaced individual. NOTE the exemption is not allowed if taxpayer reveives any form of rent.Back to Top


Pensions: IRA Contribution Limits

Traditional and Roth IRA contribution limits is $4,000 and $5000 if age 50 or older, SEP IRA (Employer) 20% of net SE income after SE tax deduction up to maximum contribution of $45,000, SEP IRA (Employee) 25% of wages up to maximum contribution of $45,000. ***Updated Mar.2008***Back to Top


Rate Reduction Credit

Blank.Back to Top


Section 179 Deduction Limits

The Section 179 deduction linitation for 2004 is $102,000 phase-out is 410,000 for 2005 is $105,000,Phase-out is 420,000 for 2006 is $108.000,Phase-out is 430,000 for 2007 is $125,000,phase-out is 500,000. The Investment in Section 179 property in excess of $500,000 (for 2007), the $125,000 (for 2007) maximum deduction is reduced ( but not below zero) by one dollar. If the total investment is qualifying property is $625,000 or more in 2007, no Section 170 deduction is allowed. The investment limitation amount is indexed for inflation. ***Updated Mar.2008***Back to Top


Self-Employed Health Insurance Deduction

The percentage of self-employed health insurance that is deductible as an adjustment to income is 100%. ***Updated Mar.2008***Back to Top


Social Security Earnings Limit Repealed

Recipients of Social Security benefits are no longer under an earnings limit once they reach full retirement age (65 for workers born before 1938). A special rule applies for the year a recipient reaches full retirement age. Individuals who reach their full retirement age during the calendar year 2005 are able to earn up to $34,440 in the months prior to reaching full retirement age ( $36,120 in 2008). ***Updated mar.2008***Back to Top


Student Loan Interest Deduction

The 60-month limitation for deducting interest on repayments no longer applies. Interest is deductible for all years during the loan repayment period. Phase-Out Ranges S, HOH, QW is 55,000-70,000 and MFJ is 110,000-140,000 and MFS do not qualify. ***Updated Jan. 2005***Back to Top


Day Care Providers STD Meal Allowance

Day care providers can now use a standard meal and snack rate per child per day rather than keep track of actual costs for purposes of deducting food expenses. Bresfast $1.06, Lunch and Dinner $1.97, Three Snacks .58 cents each ***Updated Mar.2008***Back to Top


Gift Tax Annual Exclusion

The annual gift tax exclusion is 12,000 per calendar year.***Updated Mar.2008***Back to Top


Taxpayer Penalties


<>FAILURE TO FILE RETURN (Late filing penalty)-5% of unpaid balance for each month or part of a month the return is late. Max. 25%;
<>FAILURE TO PAY TAX (Late payment penalty)- .5% for each month or part of a month there is an unpaid balance. Max. 25%;
<>FRAUDULENT FAILURE TO FILE TAX RETURN-15% of tax per month not to exceed 75% of tax;
<>FRAUD-75% of underpayment attributable to fraud;
<>FRIVOLOUS TAX COURT ACTIONS-Up to $25,000 if position is groundless or if the taxpayer unreasonably failed to pursue administrative remedies;
<>FRIVOLOUS or INCOMPLETE RETURN-$5000 ($500for returns filed before 3/16/07), regardless of actual tax liability;
<>WILLFUL ATTEMPT TO EVADE OR DEFEAT TAX-Felony up to $100,000 fine, five years in pirson or both ($500,000 for Corp.);
<>WILLFUL FAILURE TO PAY TAX OR FILE RETURN-Misdemeanor up to $25,000 fine, one year in prison or both ($100,000 for Corp.);
<>WILLFUL MAKING AND SUBSCRIBING TO FALSE RETURN-Felony up to $100,000 fine, three years in prison or both ($500,000 for Corp.) ***Updated Dec.2003***Back to Top


Taxpayer Preparer Penalties


<>UNDERSTATEMENT OF TASPAYER'S LIABILITY DUE TO UNREALISTIC POSITION-$1,000 per return;
<>UNDERSTATEMENT DUE TO PAREPARER'S WILLFIL OR RECKLESS CONDUCT OR INTENTIONAL DISREGARD OF RULES-$5,000 per return;
<>FAILURE TO FURNISH COPY OF RETURN TO TAXPAYER-$50 per return, up to $25,000 per year;
<>FAILURE OF PREPARER TO SIGN RETURN-$50 per return, up to $25,000 per year;
<>FAILURE TO FURNISH PREPARER'S IDENTIFYING NUMBER-$50 per return, up to $25,000 per year;
<>FAILURE TO MAINTAIN COPIES OF RETURN PREPARED OR MAINTAIN A LISTING OF CLIENTS-$50 per return, up to $25,000 per year;
<>ENDORSING OR NEGOTIATING A TAX RETURN CHECK-$500 PER CHECK
<>EIC-FAILURE TO MEET "DUE DILIGENCE" REQUIREMENT-$100 per failure;
<>AIDING AND ABETTING AN UNSTATEMENT OF TAX LIABILITY-$1,000 per taxpayer per taxable period;
<>IMPROPER DISCLOSURE OR USE OF RETURN INFORMATIOM-Civil $250, Misdemeanor $1,000, one year prison or both;
<>MISREPRESENTATION OF EXPERIENCE, EDUCATION; GUARANTEEING PAYMENT OF TAX REFUNDS; OTHE FRAUDULENT OR DECEPTIVE CONDUCT-Court action to stop preparer from such conduct. Action to stop preparer from acting as a paid preparer for repeated violations. ***Updated Mar.2008***Back to Top


Tax Rate Reduction..[2005]

The 2003 Tax Act accelerated the rate reduction of the tax rates scheduled to take effect in 2006 so that they are now effective for tax year 2003. The tax rates for 2003 now include the 10%, 15%, 25%, 28%, 33% and 35% tax brackets. ***Updated Jan. 2006***Back to Top



Home | Feedback