Arizona & Federal
Tax Returns

The offices of Jacobsen & Wachterhauser, offer you quick and precise federal income tax and Arizona income tax preparation services. Our knowledgeable and experienced Arizona income tax accountants make your tax accounting needs a top priority, guaranteeing customer satisfaction.

We can e-file your income tax return to get funds processed and delivered to you faster.

Our tax returns are prepared by certified accountants (CPAs) and are more accurate and less costly than comparable services offered by nationally know tax preparation firms, such as Ernst & Young or H&R Block.

Our doors are always open to assist you. We are centrally located in the Camelback area of Phoenix; to set up a meeting, click here to contact us.

Income Tax Law & Research
As an Arizona resident or business owner you are required to file a state income tax return and a federal income tax return. At times, Arizona income taxes and federal taxes can be difficult to understand, which is why tax professionals are necessary for interpreting your given situation with the tax statutes. Certified public accountants (CPAs) have an abundance of helpful resources to research and reference when addressing your tax accounting needs. A CPA’s job is to help the client to comprehend why the taxes they are paying are important and why the correct way in filing individual and company taxes based on the client’s type of income and expenses is vital for Internal Revenue Service (IRS) compliance.

Internal Revenue Service
FS-2009-1 highlights the tax law changes for 2008. Under the new changes economic stimulus payments are not taxable and need not be reported as part of income for 2008. Alternate Tax Amount (ATM) is increased for tax year 2008.

Several tax breaks that expired in 2007 were renewed for the 2008 tax year including:

• Deductions for state and local sales taxes
• Educator expenses
• tuition and fees deduction on Form 8917
• Energy efficient tax credits

Standard deduction increased between 100 and 200 dollars depending on the filing status. Contribution limit for individual retirement accounts (IRAs) and other retirement funds increased in the 2008 tax year as did the value of each personal and dependency exemption. A rise in earned income tax credit and the five-percent tax rate on qualified dividends and net capital gains is reduced to zero for 2008.

Internal Revenue Code
Section 167 of the Internal Revenue Code (IRC) explains the rules for the depreciation and amortization of tangible assets. Section 167 allows for the depreciation of buildings, machinery, vehicles, furniture, and equipment; however, section 167 excludes land. Land cannot be depreciated because land does not “wear out”. The tax filer must be the owner of the property. For example, a tax filer may use section 167 if he or she has purchased a new delivery truck, intended to be used for the delivery of goods; whether the owner of the delivery truck is making payments or has bought the van outright, he or she can depreciate it.

Additional Internal Revenue Code
One of the sources of income tax law of the US Congress is the Internal Revenue Code. Another important source of the income tax law is the US Constitution. Congress takes into consideration the legislative history as one of the most important sources of the income tax law. Another important source of income tax law is the agency interpretive regulations that include treasure notices and announcements. In addition, these include final, temporary, and proposed regulations under IRC 7805. Under IRC 7805, the Secretary has the general authority to prescribe all needful rules and regulations relating to the law.

One of the sources of the income tax law is based on the pacts, treaties, and accords the U.S. has with foreign countries. In addition, the income tax law also emerges from the federal court opinions related to taxation. Finally, the treasury regulations form an important source of income tax law.

The Cornell University Law School website is a great source for finding tax law information, including the Sixteenth Amendment, the Internal Revenue Code, and the U.S. Code. Links to federal judicial decisions can be accessed through this source, as well as the school’s legal encyclopedia. If a topic is entered into the search engine results from the encyclopedia section, US Code section, Supreme Court collection, US Circuit Courts, and annotated Constitution are listed. This source is a trusted source and the information found on it can be used as a reference point.

Taxes 101 & Free Advice
Taxes 101 is an introductory explanation of income tax law and why it exists in the United States, plus how the overall tax system works. Understanding how the tax system works helps to comprehend what your CPA undergoes when he/she starts your tax return. Additionally, this knowledge will help taxpayers with the basic needs or questions their accountant may have to help file tax returns, minimizing your tax liability and maximizing your return.

When dealing with income tax law, many questions arise that highlight specific transactions within a company or within an individual’s income or expenses. For example, when completing tax Form 1040, questions come up regarding self-employment, allowed deductions and adjustments, and available credits to be used to help reduce one’s tax liability. Having a CPA to call on will answer any and all questions you might have, saving you time and taking the guess work out of filing income taxes by yourself.

Income tax law is not cut and dry on how, what, when, why, and where to file, making it imperative to have a trusted tax professional to answer the important questions.

Additional Income Tax Return Information:

• Changes to Arizona Withholding for Wages Paid After December 31, 2010
  The Department has revised Arizona Form A‑4 effective for wages paid after December 31, 2010. […]
• New TAS Success Stories Available
  The Taxpayer Advocate Service (TAS) helps taxpayers resolve tax problems with the IRS. New real-life examples of the ways TAS helps taxpayers are now available on the Success Stories page of TAS’s Electronic Press Kit. […]
• Payroll Service Company Legislation — New Statutes (UPDATED 11/01/10)
  The Arizona Department of Revenue is hosting an informational meeting on Tuesday November 9, 2010 from 9:00am to 11:00am (Arizona time) regarding the new Payroll Service Provider statutes that were included in HB 2012 during the 2010 session of the Arizona State Legislature. […]
• Taxpayer Advocacy Panel Releases 2009 Annual Report
  The Taxpayer Advocacy Panel (TAP) has released its 2009 Annual Report describing its activities and recommendations to improve IRS service and customer satisfaction. The report summarizes the Panel’s accomplishments, detailing 129 new recommendations provided to the IRS. TAP is an independent advisory committee of citizen volunteers who provide a taxpayer pe […]
• AZDOR Message Regarding Informational Returns
  Effective on January 1st Information Return penalties will change. […]
• Welcome to the TAS Press Kit
  Welcome to the press kit for the Taxpayer Advocate Service (TAS), an independent organization within the IRS that helps taxpayers resolve problems with the IRS and recommends changes that will prevent the problems. This RSS feed will highlight TAS media coverage, reports and testimony, and other important TAS initiatives. Watch for more information coming so […]
• NTA Releases 2009 Annual Report to Congress
  Today National Taxpayer Advocate (NTA) Nina E. Olson released her annual report, which calls attention to the need for the IRS to improve taxpayer service, collection practices and tax preparer regulation. The report identifies the IRS’s declining ability to provide taxpayer assistance by telephone as the most serious problem facing taxpayers, citing increas […]
• Changes to Tax Credits for Contributions to Qualifying Charities
  Governor Brewer signed into law HB 2286 on July 10, 2009, which amends A.R.S. § 43-1088 regarding tax credits for contributions to qualifying charities. The law, which goes into effect on September 30, 2009, affects both taxpayers and charitable organizations. For details on those changes, click here. All requests from charitable organizations will now be re […]
• Annual Report to Congress Media Coverage
  The National Taxpayer Advocate’s 2009 Annual Report to Congress has been covered by many national outlets, including The New York Times, The Washington Post, USA Today, Associated Press and more. View recent coverage . […]
• National Taxpayer Advocate Discusses Issues Facing Taxpayers
  National Taxpayer Advocate Nina Olson was interviewed by C-SPAN and Federal News Radio following the release of her 2009 Annual Report to Congress, which focuses on top issues facing taxpayers and legislative recommendations. These stories and others can be found in Recent Coverage . […]