2007 Alabama Sales Tax Holiday
Beginning at 12:01 a.m. (CST) on Friday August 3, 2007, and ending at twelve midnight on Sunday August 5, 2007, Alabama will hold its second annual sales tax holiday giving shoppers the opportunity to purchase certain school supplies, computers, and clothing free of state sales or use tax. Local sales and use tax may apply – see list of participating cities and counties.
Retailers are required to participate and may not charge tax on items that are legally tax-exempt during the Sales Tax Holiday.
The Alabama Department of Revenue and the Alabama Retail Association in cooperation with the Chamber of Commerce Association of Alabama are organizing a series of Sales Tax Holiday Seminars throughout the state beginning the month of May to explain to businesses and answer any questions regarding how the back-to-school sales tax holiday scheduled for Aug. 3-5 will work.
Kiddie Tax
The so-called "kiddie tax" refers to the tax imposed on the unearned income of a child under the age of 18 that exceeds a specified amount, generally $1,700 in 2006 and 2007. Unearned income includes such items as interest and dividends, but not wages earned by the child. The tax rate used is the parents' highest marginal rate. Under the 2007 Small Business Act, the age limit of the kiddie tax has been raised to include children under 19 (up from 18) and students under age 24.
New Modernized Employer Identification Number (EIN) Application
The IRS has revamped its online EIN application process. The form is now interactive, asking questions relative to the type of entity being established. Help screens are available throughout the application. Also, the information entered by the taxpayer is now automatically validated and the permanent EIN is issued at that time.
Warning about email scam - dated June 27th, 2007
www.newsmax.com
Wednesday, June 27, 2007 7:45 p.m. EDT
FBI: Don't Open Emails
According to an advisory today, the Department of Justice has recently become aware of fraudulent spam e-mail messages claiming to be from the Department of Justice, or DOJ. Based upon complaints from the public, it is believed that the fraudulent messages are addressed "Dear Citizen,” says the agency.
The messages are believed to assert that the recipients or their businesses have been the subject of complaints filed with DOJ and also forwarded to the Internal Revenue Service.
In addition, such email messages may provide a case number, and state that the complaint was "filled [sic] by Mr. Henry Stewart.” A DOJ logo may appear at the top of the email message or in an attached file, warned the FBI.
Finally, the message may include an attachment that supposedly contains a copy of the complaint and contact information for Mr. Stewart.
The Department of Justice did not send these unsolicited email messages—and would not send such messages to the public via email.
Similar hoaxes have been recently perpetrated in the names of various governmental entities, including the Federal Bureau of Investigation, the Federal Trade Commission, and the Internal Revenue Service.
Email users should be especially wary of unsolicited warning messages that purport to come from U.S. governmental agencies directing them to click on file attachments or to provide sensitive personal information.
These spam email messages are bogus and should be immediately deleted. Computers may be put at risk simply by an attempt to examine these messages for signs of fraud.
It is possible that by "double-clicking” on attachments to these messages, recipients will cause malicious software – e.g., viruses, keystroke loggers, or other Trojan horse programs – to be launched on their computers, concluded the warning.