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IRS has money … for another week

December 16, 2007

Well, we taxpayers can breather easier, for a little while at least.

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The House last week approved a temporary funding measure that will keep the federal government — including the IRS — operating at current levels through next Friday.

The continuing resolution provides money for the tax agency and other offices on a pro-rata basis at fiscal year 2008 funding levels through Dec. 21.

Lawmakers (among others) are hopeful that they can resolve spending differences and craft an omnibus appropriations bill this coming week that will keep Dubya’s veto pen in his pocket.

House Appropriation Committee Chairman David Obey, D-Wisc., told reporters last week that he and his colleagues were making progress, so the first session of the 110th Congress might not have to extend beyond Christmas.

That would be a nice gift for us all.

The best present, however, would be for Congress to quit operating on a fiscal stop-gap standard. David Ignatius at Real Clear Politics has a good piece on the continuing resolution epidemic and its real cost to us all.

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TAX-SAVVY WAYS 
TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

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