In this issue:

Hybrid credit for leased vehicles?
Last month's e-news included an article on the tax credit for hybrid vehicles, wherein we stated that the credit does not apply to leased vehicles. An astute reader pointed out that the IRS has stated that the credit does, in fact, apply to leased vehicles. So we did some checking, using CFS Tax Research to perform a query on the words hybrid, vehicle, credit, and lease.

IRS Code section 30B(d)(3)(A)(vi) states that the credit applies to a vehicle "which is acquired for use or lease by the taxpayer and not for resale." Our interpretation of this is that the person who claims the credit must purchase the vehicle, but they can either use the vehicle or lease it to someone else. In other words, the credit is available for leased vehicles, but only to the lessor—not to the lessee. The IRS confirms this interpretation in Tax Tip 2007-56 ("If the qualifying vehicle is leased, the credit is available only to the leasing company.") and in Publication 17 ("You acquired the vehicle for your use or to lease to others...").

While Fact Sheet 2007-9 seems to contradict the above, stating initially that the credit is available "for taxpayers who purchased or leased hybrid vehicles in 2006," the same fact sheet later states that:

A consumer that leases a hybrid vehicle is not eligible for the credit. The credit is allowed to the vehicle owner, including the lessor of a vehicle subject to a lease. That means that the lessor (the person who leases the vehicle to the consumer) is the person who can claim a credit for the vehicle.

W2/1099 2007 has been released.
W2/1099 2007 and Payroll Corrector 2007 have been released and are available for downloading. CDs will be mailed shortly to customers who ordered the CD version.

NOTE: In order for us to keep track of whether or not customers have downloaded their purchased software, we now require you to log in to your MyCFS account to download programs from our web site. If you do not yet have a MyCFS account, you can click here to register. You will need to supply a valid e-mail address and a password.

If you have already purchased and installed 941/940 2007, you do not need a CD or a full program download to install either W2/1099 or Payroll Corrector. Simply select "Update from the Web" from the Internet Options menu of Payroll System 2007 or select "Software Updates" from the "Downloads" menu at www.taxtools.com to download and install from our web site. However, you must be sure to update your license code! We receive many calls from customers who receive an error message upon installing W2/1099 simply because they have not updated their license code. You can obtain your license code by logging in to your MyCFS account.

Chat with tech support live via the Internet.
We have added a new way for customers to communicate with our technical support technicians. Customers can now "chat" online with CFS technical support by typing text messages, just as in an Internet chat room.

On the home page of our web site, www.taxtools.com, is a new button, "Chat with Technical Support." To chat with a technical support technician, click on the button, then click the "Online Help" button on the next screen. You will be asked to provide your customer number and name. (This information is not mandatory, but it does help us communicate with you.) Click "Submit," and you will be able to chat by typing your questions or statements in the same manner as an Internet chat room. The technician will also have the ability to, with your permission, view your computer's screen to assist you or troubleshoot problems.

After the session is completed, you can request a transcript be sent to you via e-mail. This is especially helpful in preventing repeat calls for the same problem, as it allows you to refer to the previous instructions.

The Chat Support feature is not available outside of normal business hours. If a technician is not available, you will be given an option to submit a question via e-mail. You will be answered by phone or e-mail.

Fall renewal notices are in the mail.
We are trying one more time to encourage customers to renew their CFS software before tax season. If you haven't yet renewed, you will soon be receiving your fall renewal notice. Please consider the following benefits of renewing early:

Plus...

If you have already renewed, thank you for doing so—and thank yourself for making your life a little easier this tax season!

CFS Customer Service

* If you have already renewed early and want to take advantage of this offer, call CFS at 800-343-1157 or fax your request to 805-522-0187.