US Legal, Inc. – March 2008 Newsletter

Last Minute Tax Filing Tips

Still waiting to complete your tax returns? The April 15 deadline for filing taxes is a few weeks away. This year it falls on a Tuesday. USLegal offers the following tips for individual filers.

• More than 130 million taxpayers will be eligible to receive rebates this year as part of the Economic Stimulus Act of 2008 approved by Congress. You are not eligible for the rebate until you submit your 2007 income tax return. The IRS will determine those who qualify to receive payments and will calculate the amount individual taxpayers are entitled to. Rebates for eligible recipients will range from a minimum of $300 to a maximum of $600 for individual taxpayers. Married taxpayers who file joint returns will receive a minimum of $600 to maximum rebate of $1,200. The US Treasury will begin issuing rebate checks starting in May.
• The quickest way to file a tax return is electronically through an authorized IRS e-file provider. These can be found through the IRS website, contacting an authorized tax preparer or by conducting a search on the Internet. If you are an individual taxpayer who earned less than $54,000 in 2007, you can also use IRS Free File to prepare and e-file your taxes online at no cost. See http://www.irs.gov/efile/article/0,,id=118986,00.html for more details. Otherwise, make sure to mail and postmark your return by April 15th.
• If you thought about preparing your own tax return, but now realize you don’t have time or really don’t want to, the sooner you see an accountant or tax preparer, the better as offices are getting very busy. The IRS notes most reputable tax professionals will request to see receipts and will ask you multiple questions to determine your qualifications for deductions, expenses, and other items. And remember, you are still held legally responsible for the accuracy of the information contained in your tax return no matter who prepares it.
• Each year, a relatively small number of tax returns are subject to an audit. An audit is a process whereby the IRS makes sure than individuals and businesses are in compliance with U.S. tax law. To learn more about IRS audits, see legal definitions section below.
• Need more time to complete your tax return? You can obtain an automatic six month extension by filing Form 4868. It is an Application for Automatic Extension of Time to File U.S. Individual Tax Return. This will give you until October 15, 2008 to complete paperwork.

Download Form 4868 now at http://www.irs.gov/pub/irs-pdf/f4868.pdf

More March Legal Headlines

Senate Passes Consumer Product Safety Bill

The US Senate in March passed one of the strongest consumer product safety bills in more than a decade. The legislation calls for an overhaul of the Consumer Product Safety Commission to be more response to consumer complaints about product safety.

Most notably, the bill calls for the creation of a public database to allow consumers great access to product complaints. It will also increase funding and staff for the agency. It also seeks to strengthen testing on children’s products including reducing the amount of lead allowed in toys.

The bill is a tougher version than the House passed in December. House and Senate leaders are now meeting to sort out differences before sending the legislation to President Bush.

See summary of S. 2663 – The Consumer Product Safety Commission Reform Act of 2008 at http://rpc.senate.gov/_files/L49S2663CPSCReform030308PL.pdf.

Prescription Drugs Found in US Drinking Water

The Associated Press this month released results of a five month investigation which found pharmaceutical drugs present in the drinking water of major cities across the United States. The study raises questions about the safety of our nation’s water supplies and potential affects on public health. About 41 million Americans drink water from treatment plants in which traces of medications have been found.

The AP study notes that actual concentrations of drugs are low and the exact risk to human health is not known. Water authorities insist public drinking water is safe.

See highlights of the AP study at the following link:

http://ap.google.com/article/ALeqM5hGsoyElv4ZL879LW6z2aZS0Pix7AD8VA14500

For more legal news, visit the USLegal Reporter at http://reporter.uslegal.com.

Featured Products of the Month

Real Estate Home Sales Package

One of our most popular packages, the Real Estate Home Sales package provides the necessary documents you need to sell your home on your own.

This Real Estate Home Sales Package includes the following forms for your state: (1) Offer to Purchase (2) Real Estate Sales Contract (3) Residential Disclosure Statement (4) Lead-Based Paint Disclosure and (5) EPA Lead-Based Paint info Pamphlet. Definitions, form explanations, and general information about the real estate transaction are also included. Buying or selling a home is the most important transaction most people will ever encounter. This package makes the process much easier to understand.

Homes Sales packages are available for immediate download starting at $39.95. See http://www.uslegalforms.com/home-sales.htm.

Name Change Document Preparation Service – Special Offer

For a limited time, receive 30% off our Name Change Document Preparation Service. Simply complete a few questions and checkout. Legal name changes are available for adults, minors, and families.

Order now by visiting http://services.uslegal.com/name-change-forms/.

In Brief

USLegal CEO Frank Edens Appears on The Michael Reagan Radio Show

USLegal CEO Frank D. Edens made a guest appearance on national radio talk show host Michael Reagan’s program on March 17, 2008. Edens discussed tips for “Organizing Your Legal Life.” The Michael Reagan Show is heard on more than 150 radio stations nationwide via the Radio America network.

USLegal.com Unveils New Document Preparation Site

USLegal, Inc. is announcing the release of its new document preparation Web site. Services.USLegal.com enables its users to input information into an automated system to prepare their own legal documents.

The online process works by consumers completing questionnaires. Based on their input, documents are then built and delivered to customers through email or U.S. mail. Some of the common legal matters which can be handled through Services.USLegal.com include Will, Living Will, Power of Attorney, and Incorporation document preparation with prices starting as low as $30.

See http://services.uslegal.com for more details.

Law and Legal Definitions

IRS Audits Law and Legal Definition

Each year, the Internal Revenue Service (IRS) conducts audits on individuals and businesses to ensure that they are in compliance with U.S. tax law. The percentage of people and businesses subject to these audits is relatively small-for tax year 2004, for instance, the IRS audited only 1 percent of tax returns filed by individuals and 2 percent of returns filed by all corporations. Of small businesses, one in 127 is likely to face an audit, based on audits performed in 2004. Nonetheless, the prospect of being targeted does provoke dread among a certain portion of the American public.

Indeed, many business analysts believe that smaller businesses in certain industries are at greater risk of being subjected to an audit because of historically higher levels of noncompliance in those industries, many of which are primarily composed of small firms. Home-based businesses that are characterized by cash-based transactions are particularly likely to undergo formal IRS review. Many business and tax experts, however, contend that small businesses that conduct their operations honestly and maintain good record keeping practices should be able to weather an IRS audit without too much difficulty. Indeed, some small business owners have been known to actually request an audit in instances where they have a dispute with the IRS over tax obligations.

When providing advice on IRS audits, tax advisors counsel small business owners to adhere to the following guidelines:

• Be honest in business operations and in claiming deductions.
• If you prepare your own returns, be familiar with IRS rules regarding deductions and other tax matters; if not, make certain that you hire an accountant or tax advisor who is knowledgeable in these areas.
• Keep all receipts and maintain sound and thorough record keeping practices.
• Keep expenses in line with industry norms.
• Make sure that the auditing agent is knowledgeable about the industry in which you operate.
• Be cooperative; promptly answer all communications from the IRS and make every effort to provide the auditing agent with all requested information.
• If you are unhappy with the results of an IRS audit, consider making a written appeal; the Internal Revenue service maintains an independent division specifically designed to hear such appeals.

Customer Feedback

USLegal.com would like to hear from you. If you have any thoughts, comments, or suggestions about our products or topics you’d like for us to feature in upcoming newsletters, please email them to Carrie Criado, Director of Public Relations, at carrie.criado@uslegal.com.