Here’s another tax tidbit from Ron Mueller’s newsletter…

As you know Democrats now hold the majority of the Seats in both Houses of Congress. The new Speaker of the House, Nancy whats-er-name, has already told the IRS that she wants the “tax gap” closed. Rough English translation: more bullying auditors will be siphoning more money out of the pockets of Sole Proprietors and S-Corps, the two categories the IRS has deemed to be the “scofflaws” in the “Tax Gap” problem.

This might be a good time to Incorporate.

SOME GOOD NEWS…

The ‘Kiplinger Tax Letter’ reports that U.S. Rep. Charles Rangel (D-NY), who will head-up House
tax-writers next year, has said he will not try to block any of Pres. Bush’s tax cuts before their scheduled expiration in 2010.

HOWEVER…

Several tax breaks that were set to expire at the end of last year, were not extended into 2006 before the Fall Congressional recess. They’ll fix that when they reconvene in January, but 2006 tax forms will be printed by then, so expect confusion.

This would be a good year to hire a tax pro who is a seasoned expert in home business tax law.

It’s How Much You KEEP, That Counts! Not how much you Make