WASHINGTON — The Internal Revenue Service has begun to transfer economic stimulus payments to millions of Americans, some of whom will see payments in their bank accounts as early as today.

The IRS will issue payments of up to $600 ($1,200 for married couples) plus $300 for eligible children younger than 17, throughout the spring and summer. The first wave of payments will go to people who opted for direct deposit on their 2007 income tax returns.

“People who chose direct deposit will receive their economic stimulus payments the quickest,” IRS Commissioner Doug Shulman said. “We know there are many people who are eligible for an economic stimulus payment who have not filed a tax return. If you think you may be eligible, even if you don’t normally file a tax return, please check it out. And, use direct deposit to get your payment faster.”

Taxpayers who have filed their federal income tax returns and are expecting their refunds can use the Internal Revenue Service’s online tool, “Where’s My Refund?,” to check on the status of their refunds.

“Where’s My Refund?” is fast, easy, safe and convenient.  Nearly 9.7 million taxpayers have checked the status of their 2007 federal income tax refunds online, up about 18 percent over the same time period last year.

To get to personalized refund information, taxpayers should be ready to enter their:

• Social Security Number (or Taxpayer Identification Number),
• Filing status (Single, Married Filing Joint Return, Married Filing Separate Return, Head of Household, or Qualifying Widow(er)),
• Exact refund amount shown on their tax returns.

The Sirote & Permutt law firm will present a seminar Aug. 30 to update certified public accountants on recent developments in estate and tax planning.

The seminar will be conducted at the Embassy Suites Hotel, 800 Monroe St., Huntsville, from 1 to 5 p.m. The program has been approved for continuing professional education credits by the Alabama State Board of Public Accountancy.

MONTGOMERY, Ala. (AP) -- This summer, Alabama and Mississippi are set to become the only states that apply their full state sales tax to groceries without any relief for low-income families.

All other states either exempt groceries from the sales tax, have a reduced tax on food, or provide a tax credit or rebate to low-income citizens.

South Dakota and four other states tax groceries but offer tax credits or rebates to low-income citizens.

Ferrel Guillory, director of the University of North Carolina's program on Southern politics, says the fact that everybody pays the sales tax -- even a little -- appeals to political conservatives.

What you see in Mississippi and Alabama, says Guillory, is a legacy of that rationale.

Consumers and Retailers
Beginning at 12:01 a.m. (CST) on Friday August 3, 2007, and ending at twelve midnight on Sunday August 5, 2007, Alabama will hold its second annual sales tax holiday giving shoppers the opportunity to purchase certain school supplies, computers, and clothing free of state sales or use tax.
Retailers are required to participate and may not charge tax on items that are legally tax-exempt during the Sales Tax Holiday.

The Alabama Department of Revenue and the Alabama Retail Association in cooperation with the Chamber of Commerce Association of Alabama are organizing a series of Sales Tax Holiday Seminars throughout the state beginning the month of May to explain to businesses and answer any questions regarding how the back-to-school sales tax holiday scheduled for Aug. 3-5 will work. A list of seminar dates and locations will be posted soon.

Log in for exempt items: http://www.revenue.alabama.gov/salestax/STHolidayQuickRefSheet07.pdf

(1) Beginning at 12:01 a.m. on Friday August 4, 2006, and ending at twelve midnight on Sunday August 6, 2006, a sales tax holiday is enacted pursuant to Act No. 2006-574, whereby no state sales or use tax is due on "covered items" as defined herein. For each year thereafter, the sales tax holiday begins at 12:01 a.m. on the first Friday in August and ends at twelve midnight the following Sunday.


(2) Pursuant to Act No. 2006-574, any county or municipality may, by resolution or ordinance adopted at least 30 days prior to the first full weekend of August, provide for the exemption of "covered items" from county or municipal sales or use taxes during the same time period, under the same terms, conditions, and definitions as provided in this rule for the state sales tax holiday. A county or municipality is prohibited from providing for a sales and use tax exemption during any period other than the first full weekend in August.

A participating county or municipality shall submit a certified copy of their adopted resolution or ordinance providing for the sales tax holiday, and any subsequent amendments thereof, to the Alabama Department of Revenue at least 30 days prior to the effective date of the resolution or ordinance. The Department will compile this information into a list of all counties and municipalities participating in the sales tax holiday and issue a current publication of the list on its website.

If you’re trying to beat the tax deadline, there are several options for last-minute help:

Receive a six-month extension of time to file using Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return.
Payment options are available to taxpayers having trouble paying their tax bill.
Download forms and publications at IRS.gov.

The filing extension will give you extra time to get the paperwork to the IRS, but it does not extend the time you have to pay any tax due. You have to make an accurate estimate of any tax due and pay at least 90 percent when you request an extension. You will owe interest on any amounts not paid by the April deadline.

The IRS recommends reviewing your entire tax return to be sure it is accurate and complete. Even a simple mistake can cause problems which might lead to delays in processing your return and receiving your refund.

Here are some ways to avoid common tax return errors:

The Internal Revenue Service is inviting Alabamians to apply to be members of its Taxpayers Advocacy Panel. The panel provides a forum for citizens to make suggestions on IRS decision-making.

Applicants must be U.S. citizens and be able to commit 300 to 500 hours during the year to the panel, must be current with their tax obligations and pass a criminal background.

For further information visit www.improveirs.org or call 888-912-1227

If you haven’t contributed funds to an Individual Retirement Arrangement for tax year 2006, or if you’ve put in less than the maximum allowed, you still have time to do so. You can contribute to either a traditional or Roth IRA until the April due date for filing your tax return for 2006, not including extensions.

Be sure to tell the IRA trustee that the contribution is for 2006. Otherwise, the trustee may report the contribution as being for 2007 when they get your funds.