During the December 14 Tax Talk Today Webcast, Panelist Vicki Mulak, EA, CFP, owner of American Financial and Tax, said the Working Families Tax Relief Act and the American Creation Act will affect returns prepared by the tax professional. "It is probably recommended that practitioners get a very good summary of these two bills so that they're tuned into what the changes are."

According to the Webcast panel, the legislative changes allowing a state and local sales tax deduction option have already generated a number of inquiries from tax practitioners.

"It affects probably the largest number of taxpayers," said Bob Erickson, Senior Technical Advisor,  Tax Forms and Publications, IRS.

For 2004, taxpayers can either deduct state and local income tax or state and local sales tax, but not both. Publication 600, available on the IRS Web site (www.irs.gov) by the end of December, and Schedule A instructions will provide tax practitioners with the information they need to properly address this change.

Additional tax law changes, including combat pay provisions that affect the Child Tax Credit and other tax considerations for members of the armed services, require that tax practitioners be on their toes for the 2005 filing season.

"Any time we have something new, that leaves us prone to error," said Estelle R. Tunley, Deputy Director, Submission Processing, IRS.

New tools to assist the tax practitioner with the Earned Income Tax Credit (EITC) were also discussed.

EITC Assistant, available on the IRS Web site, plugs in basic information to determine eligibility. In addition, a special online toolkit available at EITC.com provides tools designed specifically to assist the tax practitioner in navigating EITC intricacies.

According to David Williams, Director, EITC Program Office, IRS, "One of our goals is ... to maximize the participation by eligible taxpayers while minimizing errors."

For more information on the new tax law changes, a full transcript of the
episode -- titled "Get Ready for Filing Season (Part 1 Individuals)" -- can be accessed at:
http://www.taxtalktoday.tv/index.cfm?pgname=5.094&pro=35

Tax Talk Today®, www.TaxTalkToday.tv, is co-sponsored by the IRS. The next Webcast, "Get Ready for Filing Season 2005 (Part 2: Business)" will be Tuesday, January 11, 2005, from 2 - 3 p.m. ET.