LOISELLE, GOODWIN & HINDS
CERTIFIED PUBLIC ACCOUNTANTS

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Note:  Any tax advice contained on this website is not intended or written to be used, and cannot be used, for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.

The Tax Relief and Health Care Act of 2006

As one of its last official acts, the 109th Congress recently passed the Tax Relief and Health Care Act of 2006, a wide-ranging measure that preserves a variety of popular tax breaks for families and businesses, and includes new tax breaks as well. The new law is almost overwhelming "good news" for taxpayers, particularly because it retroactively restores and extends key tax breaks that went off the books at the end of 2005. These include the election to deduct state and local general sales tax, the deductions for higher education expenses and for schoolteachers' books and supplies, and the research credit.

However, the new law also will prove to be a challenge when the time comes to file 2006 returns. That's because the IRS had to send key forms and schedules for the 2006 year off to the printer before the new law extended these tax breaks. The IRS has said it will not reprint forms and schedules to reflect the new law, but will, instead, issue supplementary instructions. In other words, filing 2006 returns could be a real challenge for the uninformed, and refunds could be delayed because the IRS will have to retool its computers and procedures to reflect the new law's changes.

1. Tax Provisions affecting Individuals
2. Tax Provisions affecting Businesses

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Last modified: July 30, 2009