In this issue:

Send year-end tax planning letters out now with Tax Corresponder 2008!
One of the most valuable services you can provide for your clients is a year-end tax planning letter. The letter lets your clients know about recent tax law changes that may affect them. It also serves as an invitation to clients to call you for a tax planning appointment, generating year-end revenue for your firm.

"Year End Tax Tidbits" and "Year End Tax Planning" are two such letters contained in CFS Tax Corresponder, our correspondence toolbox for tax practitioners. Tax Corresponder contains over 350 indispensable letters on such topics as IRAs, tax planning strategies, estate planning, IRS elections, response letters to IRS notices, and more. The letters are customizable and can be mail-merged with your client database.

So that you can get your tax planning letters out on time, we have released Tax Corresponder 2008 early. If you have already purchased it, you can download it here. (You will need to log in to your MyCFS account.) If not, visit our online store, here, to purchase it for only $49 ($29 renewal).

Honda hybrid phaseout begins January 1st.
The tax credit for purchasers of a hybrid vehicle begins to phase out the second calendar quarter after the quarter in which the manufacturer records its sale of the 60,000th qualified vehicle. Honda reached the 60,000-vehicle limit this year, and phaseout of the tax credit for qualified Honda vehicles will begin on January 1, 2008.

Honda hybrid vehicles purchased before January 1, 2008, qualify for the full credit. Taxpayers buying vehicles on or after January 1, 2008, and on or before June 30, 2008, will receive 50 percent of the credit. Taxpayers buying vehicles on or after July 1, 2008, and on or before December 31, 2008, will only receive 25 percent of the credit. Beginning January 1, 2009, taxpayers who buy a Honda hybrid vehicle cannot claim the tax 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. Also, the credit cannot be used to offset the Alternative Minimum Tax (AMT). A taxpayer cannot claim the credit unless the taxpayer's regular tax liability exceeds the taxpayer's AMT liability.

Honda also produces a vehicle that runs on natural gas, making it eligible for a $4,000 credit for alternative fuel vehicles. The alternative fuel vehicle credit does not phase out. The full amount of the credit is available for vehicles purchased on or before December 31, 2010.

Form I-9, Employment Eligibility Verification, has been revised.
On November 7th, U.S. Citizenship and Immigration Services announced a revised version of Form I-9, Employment Eligibility Verification. Employers have until December 26, 2007 to transition to the new form. Employers who fail to use the revised form after the December 26th deadline will be subject to applicable penalties.

The revised Form I-9 has the revision date "Rev. 06/05/07" printed in the lower right corner. The new form will be in the next scheduled update of Payroll System 2007 and in the first release of TaxTools 2008. It is also available in PDF format from USCIS, here.

Make sure your clients with employees know about the new form!

Last chance to return forms!
There are only a few days remaining before the December 15th forms return deadline. If you haven't checked your forms order, please make sure we sent you the correct items, and that there is nothing you forgot to order. Also, keep in mind that items can be damaged in transit.

Remember—our supplies return policy covers you for 30 days after you receive your order, with no returns accepted after December 15th.

A note to loyal Audit & Collections users...
As you are no doubt aware, CFS Audit & Collections is being discontinued as of the end of this year. Unfortunately, we could not justify continuing the product when so few customers were purchasing it.

However, although A&C users are few, they are loyal—and vocal. We have heard their requests, and we have responded by including the most popular modules from A&C in CFS TaxTools 2008. As most A&C users are also TaxTools users, we felt that this was the best way to address their requests.

The research component of A&C will be abandoned, with the exception of the Internal Revenue Manual. The online version of the IRM will remain on our research web site. A link will be added to the TaxTools Internet Options menu so that users can easily access it.

New instructional videos posted for LivePayroll.
Instructional videos have been posted on our web site to help users learn how to use our newest program, CFS LivePayroll. The videos include an overview and tutorials on converting from the 941/940 program and printing paychecks.

Other instructional videos are available to assist the user with such tasks as downloading CFS software, importing data from QuickBooks^® into CFS Payroll System, and e-filing W2s and 1099s using the W2/1099 E-File Add On. The videos are brief and can be viewed in one sitting. VCR-like controls permit the user to control playback.

Instructional videos can be accessed from the Support menu at www.taxtools.com, or by clicking here.

Happy Holidays from CFS!

CFS Customer Service