113 Maple Road — Lexington, SC 29073 — Phone: 356-1963

We have moved!!! Remember, we are no longer at the Augusta Road location, we are now on Maple Road. From Columbia take the first right past the Barnyard Flea Market, from Lexington take the first left past the San-Jose restaurant before you get to the Barnyard Flea Market, we are the 5th house on the left on Maple.

The IRS is continuing, and will likely expand efforts, to increase audits on the returns of self-employed or corporate entities to make sure no income is being hidden or shifted.

NOTE: A number of provisions were passed into law right before Christmas, this will of course delay processing of some returns until February, these provisions deal with educator expense, tuition and deducting sales tax, any returns dealing with these issues will not be able to be processed until the IRS updates their system.

Office hours for January 8th through April 16th will be: Monday through Friday, 9:00 a.m. to 8:00 p.m. and Saturday 9:00 a.m. to 4:00 p.m. We will be taking appointments as well as walk in returns, however appointments will be given priority. Brenda and Jonathan will be doing individual and business returns. Remember late January and early February are very active times, so if you do not have an appointment come prepared to wait or delay your visit until later in February to come at a less active time. The middle of March as well as the middle of April are also very busy.

RAL’s were very successful last year with Bank One, which is now part of Chase bank. We will be continuing to use them this year.

Income Tax News: Congress has extended a number of the benefits they had set to expire last year. For married couples, the standard deduction and low end tax brackets continue to be double the single rate this year, and SC is honoring the changes as well this year.

  • The standard mileage rate for 2006 is:
    Type of Mileage Jan 1, 2006 - Dec 31, 2006
    Standard44.5¢
    Medical/Moving18.0¢
    Charitable (Katrina)14.0¢ (32.0¢)
  • For 2006, the Earned Income Credit has been increased slightly.
  • Child Tax Credit — The Child Tax Credit was extended at the $1,000 level until 2010 for children under the age of 17.
  • The personal exemption and standard deduction amounts have been increased.
  • Six-month extensions will be given again for returns extended in 2006.
  • There is a one-time refund of the telephone excise tax this year, this will be between $30 and $60 for most people based on their filing status. Businesses will need their April 2006 and September 2006 phone bills as well as the total phone bills paid from March 2003 until July of 2006 to use the simplified method to determine the refund amount, or they may add up the Federal Excise tax from all phone bills from March 2003 until July 2006.
  • The Alternative Minimum Tax (AMT) exemptions amounts have been increased.
  • The “kiddie tax”, has been changed to increase the age limit from 14 to 18 and the 15 percent rate only applies to $850 of income, the remainder over $1700 being taxed at the parent’s tax rate.
  • All cash contributions made after 2006 now have to be backed up by a receipt or canceled check to prove the amount was donated. Non-cash contributions must be in “good” or better condition to qualify for a deduction now as well.
  • There continues to be a credit for alternative fueled vehicles, however due to the restrictions on which vehicles qualify for what amount of credit, we will have to take our time to properly determine the amount of credit based on the make/model/year of vehicle and when it was purchased.
  • Tax-Exempt interest must now be reported on tax returns.
  • The SC subsistence allowance has been increased to $8 per day for those professions that qualify to take this deduction.
  • Businesses may qualify for a reduced 6.5% SC tax rate based on amount of income that is not directly attributable to the taxpayer’s efforts.

Please make sure to bring all your tax related materials when you come into the office to have your taxes prepared.

  • If you move you should file a change of address with the IRS, form 8822. The IRS uses your last known address or what is on your tax return. If you move please also notify BRB TAX, LLC.
  • Any form needed can be obtained by calling the IRS at 1-800-829-3676, logging on to the IRS website, www.irs.gov or by coming by BRB TAX, LLC.
  • Did you refinance your home? If so bring your closing papers.
  • Did you sell your home? You need to bring the closing papers for when you purchased and sold the home, as well as any improvements you made on the home, details on how long you lived there, especially in the last 5 years.
  • Did you default on a mortgage, loan or credit card? This may result in a 1099-A or 1099-C form being mailed to you where you must include an amount as income on your tax return.
  • Please make sure you have all W-2's and necessary tax information before you come.
  • Did you take a distribution from your retirement account? There will be a 1099-R for the amount you withdrew and the amounts of taxes withheld.
  • Did you have a big gambling win, they will issue you a W-2G for the winnings, however you may be able to deduct gambling losses up to the amount of the winnings if you have documentation of the losses and you itemize on your tax return.
  • Education Credits - tuition for taxpayer, spouse and dependents, this is on amounts not covered by scholarships and grants, but does include money you finance through student loans. This may include amounts paid by a third party. (This may be delayed this year)
  • The maximum IRA Contribution has increased to $4,000 or $5,000 for over age 50.
  • Did you get married, divorced, have a baby, change your name, if so we need copies of your or the baby's social security cards. If you bring the social security cards, we will make copies and keep them in your file in our office.
  • Did you pay estimated taxes in 2006: Please bring amounts and dates paid.
  • Over the counter medicine is allowed for Flexible Spending Account deductions but not for Schedule A, medical deductions.
  • Charitable contributions of $250 or more need receipts.
  • Capital Gains can be taxed at different rates depending on holding period and dates of sale. Dates purchased, purchase price, and sale dates are very important.
  • Names and Social Security Numbers on W-2's and 1099's must match the person's social security card. Please verify this information with your employees and subcontractors.
  • If you plan to claim sales tax as a deduction, please make sure to have the amount added before you come to see us. (Remember, this cannot be done until February this year)

NOTE: If you bring additional materials to correct your taxes after they have already been prepared and sent in, we will charge an amendment fee for correcting the return. So please make sure you have all W-2 forms and 1099 forms before you come to get your taxes prepared to avoid paying extra to have your return done a second time.

PAYMENT POLICY: Payment is due when services are rendered. We will no longer hold checks. There will be a $30 fee on returned checks and they will be turned over to the Solicitor's office for collection. We will need to see your driver's license when accepting a check from you.

PRIVACY POLICY: We at BRB TAX, LLC collect information about you, both personal and financial. We do not disclose any nonpublic information about our customers or former customers to anyone, except as required by law or by your specific request. We maintain physical and electronic safeguards to protect your nonpublic personal information.

Copyright © 2003-2006 BRB TAX, LLC. All rights reserved.