The Master's Tax & Financial Services
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2007 Small Business Tax Act

On May 25, 2007 President Bush signed the Small Business and Work Opportunity Act of 2007. From all appearances, this is the first of many significant tax laws that will be passed in 2007.

The current attitude in Congress related to tax bills is to move forward a social agenda, and make tax increases as necessary to make the bill revenue-neutral. This act is no different. There are about 60 provisions of this bill, and the major ones that will affect the most people are listed here. We have flagged each of these according to whether in our opinion the provision is primarily socially driven or revenue balancing. There are also a few "house cleaning" items that seem to be neither.

Minimum Wage IncreaseX  
Extended/enhanced Sec. 179 ExpensingX  
FICA Tip CreditX  
Extended/enhanced Work Opportunity Tax CreditX  
Katrina Recovery GO-Zone ExtensionsX  
Kiddie Tax Increases X 
Family Business Tax Simplificationx X
Erroneous Refund Penalties X 
Return Preparer Penalties X 
Numerous fee increases X 
"Tax software is no substitute for tax knowledge."

Any views expressed herein are based on our best information. The content of this web site was written as general information without specific individual information and thus may not apply in all situations. This material was not written, and cannot be used by the taxpayer for the purpose of avoiding penalties that may be imposed on the taxpayer.

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Janelle Ogg, EA
Richard Ogg, EA