Tax Law Changes 2005

Tax Law Changes 2005 - Charity for Tsunami & Sales Tax Deduction

Donors may claim a deduction for the 2004 tax year for contributions to aid victims of the tsunami that are made before Jan. 31, 2005.

--H.R.241--


SECTION 1. ACCELERATION OF INCOME TAX BENEFITS FOR CHARITABLE CASH CONTRIBUTIONS FOR RELIEF OF INDIAN OCEAN TSUNAMI VICTIMS.
(a) IN GENERAL- For purposes of section 170 of the Internal Revenue Code of 1986, a taxpayer may treat any contribution described in subsection (b) made in January 2005 as if such contribution was made on December 31, 2004, and not in January 2005.

(b) CONTRIBUTION DESCRIBED- A contribution is described in this subsection if such contribution is a cash contribution made for the relief of victims in areas affected by the December 26, 2004, Indian Ocean tsunami for which a charitable contribution deduction is allowable under section 170 of the Internal Revenue Code of 1986.

H.R. 241 was passed by House and Senate on Jan. 6, 2005.
Sent to the President for signing on 1/6/05 ____________________

IRS Updates Sales Tax Table Publication

WASHINGTON ­ The Internal Revenue Service announced today that it has updated the optional sales tax tables in Publication 600 for Arkansas, California and Virginia.

Obtain a copy at www.irs.gov . Do a search for Publication 600 on the forms & publication page by date.

Jan. 4, 2005 IR -2005-2