IRS Extends Filing Deadline for Taxpayers Affected by Sandy

This extended time may seem like a small jester on the part of the IRS, but it is a large amount of money in penalties and interest which is being deferred.  Taxpayers can take advantage of this.

 

IRS Gives Additional Time to Taxpayers and Preparers Affected by Hurricane Sandy; File and Pay by Nov. 7

 

WASHINGTON — The Internal Revenue Service today announced it is granting taxpayers and tax preparers affected by Hurricane Sandy until Nov. 7 to file returns and accompanying payments normally due today.

The relief applies to taxpayers and tax preparers in an area affected by Hurricane Sandy or otherwise impacted by the storm that hit the Mid-Atlantic and Northeastern United States this week.

This relief primarily applies to businesses whose payroll and excise tax returns and payments are normally due today. No action is required by the taxpayer; this relief is automatic. Regular federal tax deposits are due according to current rules. However, the IRS notes that if taxpayers or tax practitioners receive a penalty notice for this period, they can contact the IRS at the number on the notice to request penalty abatement due to reasonable cause on account of the storm.

IRS expects to grant additional filing and payment relief as qualifying disaster declarations are issued by the Federal Emergency Management Agency (FEMA). Details will be posted on the Tax Relief in Disaster Situations page on IRS.gov.

To My Tax Students:

Some of my tax students have been doing taxes for twelve years this coming tax season, an I would like to say congratulations.

By this time you understand why almost all "the secrets" are hidden in taxes.  During those twelve years, you will have done taxes one year for each disciple.  Two or three of those years, you may not remember very well.

If you have not already taken the new IRS exam for tax preparers, now would be a good time to start preparing. (October 2012)

Sit for the exam near the end of the year while others are focusing on the holidays.  And during this period of time, keep asking yourself, why as "that woman" who was nine months pregnant riding a donkey to pay the taxes?  (class key code)

And know that the IRS is more interested in knowing that you understand Publication 230, more than anything else.

Respectfully
Your Tax Instructor


ingraham, cassandra a., RTRP

How to Increase Search Engine Approved Traffic to Your Web Site

Number of Visitors            
Number of Pages
Number of Hits

15 Oct 2012 202 860 3,238 

16 Oct 2012 202 873 3,429 

17 Oct 2012 502 2,270 9,126 

18 Oct 2012 644 3,101 13,186 

19 Oct 2012 739 3,217 13,569

20 Oct 2012 682 2,824 13,026 

21 Oct 2012 633 2,735 12,252 

22 Oct 2012 653 2,872 12,313 

From 202 visitors a day to over 650 verified visitors a day.  This is the type of increase you are looking at when you purchase targeted search engine approved traffic.  Paid traffic will not only increase your visitors but will ultimately increase your page ranking and your Alexa ranking in due time.

The key is to set a monthly budget and through hell and high waters, stick to that budget and increase the budget when you can. 

No, this type of traffic won’t help your AdSense account, in fact big Daddy G may limit your AdSense income, because of paid traffic, but on the other hand, you will begin to generate a solid foundation for selling ad space on your site, for a set fee or based on impressions.  For some webmasters, this is more than AdSense pays and for others it’s less. 

An average of 500 visitors a day  in a particular niche  is a solid beginning for selling ad space to advertisers.  And just as soon as we figure out who to go to, to make this happen, with a set monthly income we will let you know.  But first we had to create an acceptable way to increase web visitors at will.  We used the following service which is search engine compliant and registers in our Analytic reports as well as on our site’s stats.   To increase your targeted web visitors at extremely affordable prices visit Virtual Realty Info dot com 

 

 

What Is Accounts Receivable Financing? Or Factoring?

What is Accounts Receivable Financing? Or Factoring?
Accounts receivable financing is when you turn your invoices into immediate working capital, rather than waiting 30 to 60 days for your client to pay you. You may need money to finance payroll, pay the real estate mortgage or to pay your debts early to qualify for a discount.

Your large clients will pay the Invoices owed to you but not in time for your immediate payroll or debts.

Getting a line of credit at the bank may take weeks, plus business has been slow in the past year, and you may be concerned about qualifying for a bank loan.

The Working Capital Solution
This is where accounts receivable financing or factoring can be extremely helpful. You borrow again your receivables, or do what is known as selling your receivables to a Lender who will pay you 80 to 90 percent of the total invoice amount. And when your client pays the Invoice, to the Lender, the Lender will take out the fees for the transaction (which are 100 percent tax deductible) and send you the balance of the monies.

The good thing about factoring or utilizing accounts receivable funding is, once the transaction is over with, you don’t owe any body anything. You will have created working capital for your company without incurring debt, and this is the sweetest part of accounts receivable financing.

What Are the Fees for Factoring?
The fees depend on the amount of the Invoices which are financed, the type of industry and the credit worthiness of your client (how long it will take them to pay the Invoice) Fees range from 1.5 to 3.5 percent and slightly more for commercial construction factoring and special industries where funding is slightly hard to get.

How much of the total invoice amount that you can get upfront depends on the credit worthiness of your client.

History of Factoring
Factoring has been around since the Egyptians, and was used by the pilgrims when they came to America. Factoring is more popular in Europe and is used more often by European companies.

Benefits of Factoring and Accounts Receivable Financing
The best benefit is creating immediate working capital, without incurring debt. In other words, a small business owner can actually finance his own growth without a bank loan. And this can be done usually with days. (Unless it is a government contract, then it takes a little longer)

Clients are the life line for any business, yet when they take 30, 60 or 90 days to pay. This can place a hardship on a small or even medium size business depending on the amount of the Invoices. Payroll continues regardless if the client has paid the Invoice or not. Accounts Receivable Financing enables a small business to be independent regardless of when the large corporations, federal government, state, city or utility company pays.

With some Lenders, factoring companies, they will take over the collection of your receivables and this by itself can save a company many man hours.

Eliminating Cash Flow Issues
If cash flow is a concern for your company, you owe it to yourself to investigate factoring or accounts receivable financing. Some Accounts Receivable brokers provide funding placement for government and corporate invoices. There is no fee for the placement of funding and usually helps the small business owner to become more efficient in finding and selecting an accounts receivable lender. Click here for help in finding a suitable Accounts Receivable Lender based on your location, industry and amount of Invoices.

Social Security Changes for 2013

Social Security payments will increase by 1.7 percent in 2013. This much lower then the 3.6 percent cost of living increase in 2012 

Higher Social Security tax cap. The maximum amount of earnings subject to Social Security taxes will be $113,700 in 2013, up from $110,100 in 2012. Approximately 10 million people will pay higher taxes as a result of the increase in the taxable maximum.

Increased earnings limit. Retirees who work and collect Social Security benefits at the same time will be able to earn $480 more next year before any portion of their Social Security payment will be withheld. Social Security recipients who are younger than their full retirement age (66 for those born between 1943 and 1954) can earn up to $15,120 in 2013, after which $1 of every $2 earned will be temporarily withheld from their Social Security payments. For retirees who turn 66 in 2013, the limit will be $40,080, after which $1 of every $3 earned will be withheld. Once you turn your full retirement age you can earn any amount without penalty and collect Social Security benefits at the same time. At your full retirement age your monthly payments will also be adjusted to reflect any benefits that were withheld and your continued earnings

Paper checks will end. The U.S. Treasury will stop mailing paper checks to Social Security beneficiaries on March 1, 2013. All federal benefit recipients must then receive their payments via direct deposit to a bank or credit union account or loaded onto a Direct Express Debit MasterCard. Retirees who do not choose an electronic payment option by March 1 will receive their payments loaded onto a pre-paid debit card.

Which Taxes are Tax Deductible?

Tax Deductions - Often times there is confussion on which taxes can and can not be used on your tax return. The following information will help you:


The following taxes can be deducted on Line 23 of Schedule C.

State and local sales taxes imposed on the employer as the seller of goods or services. If this tax is collected from the buyer, it must also include the amount collected in gross receipts or sales on line 1.

Real estate and personal property taxes on business assets.

Licenses and regulatory fees for the trade or business paid each year to state or local governments. Some licenses, such as liquor licenses, may have to be amortized. See chapter 8 of Pub. 535 for details.

Social security and Medicare taxes paid to match required withholding from the employees' wages. Reduce the deduction by the amount shown on Form 8846, line 4.

Federal unemployment tax paid.

Federal highway use tax.

Contributions to state unemployment insurance fund or disability benefit fund if they are considered taxes under state law.



The following taxes cannot be deducted.


Federal income taxes, including self-employment tax. However, the deduction for one-half the self-employment tax on Form 1040, line 27 is deductible.

Estate and gift taxes.

Taxes assessed to pay for improvements, such as paving and sewers.

Taxes on the home or personal use property.

State and local sales taxes on property purchased for business. Instead, treat these taxes as part of the cost of the property.

State and local sales taxes imposed on the buyer that the employer was required to collect and pay over to state or local governments. These taxes are not included in gross receipts or sales nor are they a deductible expense. However, if the state or local government allowed the employer to retain any part of the sales tax collected, the amount must be included as income.

Other taxes and license fees not related to the business

How & When to Write Off the Start-up Cost for Your Business

Capital Expenses:
Start-up costs and organizational costs are capital expenses. Capital expenses are generally not deductible and are added to the taxpayer’s basis in the business. If the expenses are not otherwise recoverable through depreciation, amortization, depletion or the cost of goods sold deduction, the expenses are recovered at the time the business is sold.

Start-up and Organizational Cost
Deduction Limits for 2011 are $5000 for each; reduced dollar-for-dollar when the total costs exceed $50,000. Limits apply separately.

Unfiled Taxes Prepared, Online

Unfiled Taxes Prepared, Online
Taxes Will Travel new home page.  Unfiled taxes?  Need help preparing taxes? 

Online Tax Preparation, confidential, secure, fast and affordable.  Before you contact an attorney, have all of your past due tax returns prepared by an affordable tax professional and save thousands of dollars. 

Once your tax returns are prepared, you can contact an attorney or Enrolled Agent to have an Offer in Compromise filed or a BK.  If you find that you don't owe the IRS as much as you thought, we can prepare an Installment Agreement Request, and you when accepted by the IRS, you can make affordable monthly payments.

Visit Taxes Will Travel now, and get your life back.

Invoice Lines of Credit for Manufacturing Companies

Every day there is news of pending manufacturing contract that are either existing or being moved back to the United States.  There are strong currents working to build the country up with manufacturing being a focal point for stabilization, jobs and job security for America.

Manufacturing companies like most small to medium size businesses are not immune to cash flow issues, especially when growth for the company is at stake.  America and manufacturing companies must hold hands in order to overcome the economic concerns of today.

Manufacturing companies must often times provide the up front cash investment to build and or manufacture items before delivering to the client, for payment in 30 to 60 days. Some manufacturing companies are asking for small amounts of cash up front in order to reduce the cost of tooling up, material purchases and man power needed to deliver on a huge manufacturing order.

But for the most part, as usual, the manufacturing company has to invest in the initial cost to complete the manufacturing contract.

For many years manufacturing companies have done what you call "factoring" their invoices.  This is when the company turns its invoices into cash, in order to pay immediate expenses, until their client pays the Invoices.  This transaction can also be called, Accounts Receivable Funding, Factoring, and Invoice Lines of Credit.  Regardless of what you call the transaction, it involves relieving the cash flow stress, by providing immediate cash, without incurring debt.

This is what we do.  We place manufacturing companies with lenders who charges a fee (usually between 1.5% to 3.5% of the total invoice amount) to provide immediate working capital.  This transaction becomes an Invoice Line of Credit, based on the cash infusion into your business bank account based upon approved Invoices.

In most cases the funding occurs within 24 to 48 hours, sometimes a little longer.  The manufacturing companies credit ratings is rarely an issue, it's the credit rating of the customer (company who is paying the invoice) that is important.

To learn more about Invoice Lines of Credit for manufacturing companies, please fill out a six question app and we will locate you a Lender as quickly as possible.  Invoice Lines of Credit, funding placement.  There is no fee for our service.  Government Invoices are welcome, takes slightly longer for funding.