The Internal Revenue Service is warning the public of a scam that could be lurking in your e-mail.

IRS spokesman David Stewart said “very official” looking e-mails alert people about a refund owed to them, but when it’s opened it can be “dangerous to you and your computer.”

“We’re getting reports of people getting an e-mail that appears to come from the IRS and tells recipients to respond to get their 2008 Economic Stimulus Refund,” Stewart said.

According to Stewart, if you have accessed a link or attachment in the bogus e-mail, you may have allowed the scammer to download malicious software to your computer and you should immediately scan for viruses and spyware, plus be alert for suspicious activity on your financial accounts.

“If you have actually responded to a scam e-mail by giving out your private information, you should immediately take steps to prevent identity theft. You may now be a prime target,” Stewart said.

Stewart said there are three things the IRS needs people to remember:

• The IRS never sends unsolicited e-mails about your taxes.

• If you get a scam e-mail, don’t access any links or attachments.

Anyone who receives suspicious e-mails addressed from the IRS should forward them to the IRS at phishing@irs.gov.

For more information about tax scams and a list of tax scams updated each year by the IRS, go to www.irs.gov. The IRS also provides information on its Web site to help taxpayers protect their personal and financial information.

For 2008, the IRS has changed the personal exemptions and standard deductions to account for inflation adjustments. They include more than three dozen tax benefits that will affect virtually every taxpayer. Whether you file your own taxes or hire a tax professional, it is important to understand the key changes when filing your 2008 tax return in early 2009.

Here are the key changes to the 2008 tax changes as defined by the IRS:

1. The value of each personal and dependency exemption, available to most taxpayers, is $3,500, up $100 from 2007.
2. The new standard deduction is $10,900 for married couples filing a joint return (up $200), $5,450 for singles and married individuals filing separately (up $100) and $8,000 for heads of household (up $150). Nearly two out of three taxpayers take the standard deduction, rather than itemizing deductions, such as mortgage interest, charitable contributions and state and local taxes.
3. Tax-bracket thresholds increase for each filing status. For a married couple filing a joint return, for example, the taxable-income threshold separating the 15-percent bracket from the 25-percent bracket is $65,100, up from $63,700 in 2007.
4. The maximum earned income tax credit for low and moderate income workers and working families with two or more children is $4,824, up from $4,716. The income limit for the credit for joint return filers with two or more children is $41,646, up from $39,783.
    
   The maximum Hope credit, available for the first two years of post-secondary education, is $1,800, up from $1,650 in 2007.
5. The income limit for the savers credit is $53,000 for joint filers (up $1,000), $39,750 for heads of household (up $750) and $26,500 for singles and married persons filing separately (up$500).  Low-and moderate income workers who contribute to a retirement plan, such as an IRA or 401(k), may qualify for the credit, which is available in addition to any other tax savings that apply.
6. The contribution amount allowed for Roth IRAs begins to phase out for joint filers with incomes exceeding $159,000 (up from $156,000) and $101,000 (up from $99,000) for singles and heads of household.
7. For contributions to a traditional IRA, the deduction phase-out range for an individual covered by a retirement plan at work begins at income of $85,000 for joint filers (up from $83,000) and $53,000 for a single person or head of household (up from $52,000).
8. Participants in most employer-sponsored 401(k) plans and 403(b) plans for employees of public schools and certain tax-exempt organizations can contribute up to $15,500, unchanged from 2007.  Individuals, age 50 or over, can make an additional contribution of up to $5,000, also unchanged from 2007.
9. Individuals participating in SIMPLE retirement plans can contribute $10,500, unchanged from 2007.  Those, age 50 or over, can make an additional contribution of up to $2,500, also unchanged from 2007.
10. The annual contribution limit for most defined contribution plans rises to $46,000, up from $45,000 in 2007.

In these economic times it is a smart idea to take advantage of all tax incentives that you possibly can.

The dire straits of GM’s record $39 billion loss caused it to stock trading on the world’s financial markets this morning. When it resumed, it was down more than 13%.

The $39 billion third quarter by GM is the second-worst quarterly net loss in U.S. corporate history under generally accepted accounting principles, GM attributed most of the third-quarter loss to a $38.6 billion non cash charge related to accumulated deferred tax credits in the U.S., Canada and Germany.   Accounting rules require companies to write down the value of such credits if they have scant prospects for a return to profitability in the near term.

The problems don’t stop there.

According to GM executives, they have only enough cash on-hand to get them through the end of the year - that is only 1 1/2 months.  The seriousness of this situation is that over 2,000 car dealerships, across the country could be forced to close. In addition, GM employees may be asked to made sacrifices just to keep their jobs. One idea is to cut wages or even 401 contributions from the company.

Things are so bad, that the GM executives are in discussions with Pelosi and Congress for emergency help. It is rumored that GM is looking for a 25 billion bridge loan to get through this crisis.  GM had already asked, and been approved for an emergency cash injection by the government, but the money has yet to be received.

It is not a very good day for the U.S economy.  Besides the GM news, the jobs market reports was devastating.  More than 250,000 Americans lost their job in October alone. That is more than 1.2 million for the year. The unemployment rate is at a 14 year high - at 6.5%. In September, that percentage was 6.1%.

However, the stock market (Dow Jones Industrials) is actually up 100 points this morning - go figure!

Is there any way to stop the hemorrhaging? If the government does not step in and help GM, the resulting domino effect could put the United States in it’s worst economical position ever!

Financial experts are expecting the economic downturn to continue into 2009  -  panic could start anyday!

Wall Street anticipated another dreadful jobs reports today and they got it. The news is actually worse that what experts were expected.

More than 250,000 Americans lost their job in October alone. That is more than 1.2 million for the year. The unemployment rate is at a 14 year high - at 6.5%. In September, that percentage was 6.1%.

Is the bad news over?
No, experts state that more than 484,000 Americans have stopped looking for jobs, believing there are none out there. That is very, very bad news for the economy.

The hardest areas hit include manufacturing, the service industry, retail, professional services and leisure. Areas least effected include Health Services, Education and Government.

It truly is a dire situation, especially with the holidays here.

Obama has a plan

Barack Obama, while campaigning for president, pledged to invest 150 billion over 10 years in “green” energy. This investment, he believes, will create 10 million new jobs; jobs that will stay here in the United States.

This would include investing in renewable energies such as wind and solar power. It also calls for investments in alternative energies such as ethanol, natural gas and hydrogen. He also wants to promote the development of the electric and hybrid vehicles.

The obvious question is where is money going to come from. But in these uncertain economic times, where is the money comes from is as important as getting the economy back on track.

It is obvious that Barack Obama has his work cut out for him. But the good news is he has the American people behind him, who share his vision and are willing to make sacrifices to get America back to where we once were.