The Internal Revenue Service has again selected CCH to provide sales tax information for the 2006 filing period, providing the sales tax data for use by all taxpayers who file a 1040 return.
The information for the IRS tables -- which taxpayers use to determine their optional sales tax deduction on their tax return -- is derived from numerous CCH workflow tools, including CCH's ZIPSales Database and ZIPSales Database with Taxability, as well as customized research using the CCH Tax Research NetWork. CCH is a Wolters Kluwer business.
The American Jobs Creation Act of 2004 allows individuals to choose to deduct their state and local sales tax, rather than their state and local income tax, on their federal tax return. Using the IRS tables, taxpayers can determine whether to deduct their state and local sales tax versus their state and local income tax without having the burden of saving all their receipts to tally the sales tax they actually paid. For the 2004 tax year, the first year that the deduction was allowed, about 11 million individuals claimed the general sales tax deduction.
"Our leadership in providing comprehensive tax law information on both the federal and state level enables us to extend our long and trusted relationship with the IRS," said CCH chief executive Kevin Robert, in a statement.
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