IRS Revises Sales Tax Tables, Pub 600

The IRS has updated Publication 600, Optional Sales Tax Tables, to reflect changing sales tax rates in three states. This revision effects taxpayers in Arkansas, California, and Virginia. The sales tax deduction is new for the 2004 tax year. If you itemize, you can choose to deduct the higher of your state income tax or your sales tax. According to the IRS, "the original tables were based on the states' sales tax rates as of January 1, 2004." The revisions take into account changes in the sales tax rates during the year.