Saturday, March 22, 2008

IRS Publication - Gift To Reduce Debt Held by the Public

Good information if you want to help reduce the National Debt. Gifts to Reduce the Debt Held by the Public ARE tax deductible. A contribution in 2008 will be tax deductible in 2009. See instructions below:

From IRS Publication 17 (2007 Tax Year)
Gift To Reduce Debt Held by the Public

You can make a contribution (gift) to reduce debt held by the public. If you wish to do so, make a separate check payable to “Bureau of the Public Debt.” Send your check to:

Bureau of the Public Debt
Department G
P.O. Box 2188
Parkersburg, WV 26106-2188.

Or, enclose your separate check in the envelope with your income tax return. Do not add this gift to any tax you owe.

You can deduct this gift as a charitable contribution on next year's tax return if you itemize your deductions on Schedule A (Form 1040).

AP: Treasury cuts minimum bill from $1,000 to $100

The following appeared on page 2C of the March 22, 2008 edition of the St. Paul Pioneer Press.

The Treasury Department deals in millions and billions and even trillions of dollars, but it can think small, too.

Officials announced Friday that starting next month, individuals will be able to buy Treasury securities in amounts as small as $100, down from the current minimum of $1,000.

The chane will take effect for the weekly auction of three-month and six-month Treasury bills that will be held on April 7.

The Treasury Department said the reduction in minimum bid amounts is being made possible by an improved processing system for government debt auctions. The hoe is that the reduction will attract smaller investors.

"U.S. Treasury securities, the world's safest, most liquid investments, should be accessible to the broadest universe of investors - large and small," said Anthony Ryan, assistant Treasury secretary for financial markets. "Being able to buy securities in $100 increments adds a new degree of flexibility for all market participants."

The reduction in the minimum sales amount is the first to occur since 1998, when the pruchase amount was cut to $1,000. Prior to that time, the minimum purcashe amount had been $10,000 for Treasury bills, which are securities with a maturity of one year or less, and $5,000 for Treasury notes witha maturity of up to four years.

Individuals can purchase Treasury securities directly from the Treasury Department by going to to open an online account. - Associated Press

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