OK, people, the 1099-C can cause a heart-attack, especially if you are doing your own taxes and you don't understand what to do with it.
You believe you understand the tax laws enough to do your own taxes. You have done your taxes in the past and there has never been a problem. You fully realize that a 1099-C, 1099-MISC, 1099-INT, or 1099 for that matter is what the IRS calls "Income"
Except now, you have this 1099-C (which stands for debt cancellation) that your Mortgage Company sent to you. Until now, you weren't worried because there was a short sale, or the bank foreclosed on your house.
Yet, when you go to do your taxes, and you follow all the rules that the tax software tells you, you find that you end up owing anywhere from $30,000 to $70,000 in taxes. (This is where the heart attack could come in, if you hadn't read this blog)
My advice is to find a local tax professional who can help you. If you are still on your high horses and refuse to get professional help, then you can read the announcement the IRS put out to help you understand how to handle a 1099-C. However, my suggestion still remains the same. It would be best if you got this situation handled by a professional. There are a lot of wrong turns you can take on the path to eliminating $50,000 in owed taxes!
Mortgage Debt Forgiveness: 10 Key Points
Canceled debt is normally taxable to you, but there are exceptions. One of those exceptions is available to homeowners whose mortgage debt is partly or entirely forgiven during tax years 2007 through 2012.
The IRS would like you to know these 10 facts about Mortgage Debt Forgiveness:
1. Normally, debt forgiveness results in taxable income. However, under the Mortgage Forgiveness Debt Relief Act of 2007, you may be able to exclude up to $2 million of debt forgiven on your principal residence.
2. The limit is $1 million for a married person filing a separate return.
3. You may exclude debt reduced through mortgage restructuring, as well as mortgage debt forgiven in a foreclosure.
4. To qualify, the debt must have been used to buy, build or substantially improve your principal residence and be secured by that residence.
5. Refinanced debt proceeds used for the purpose of substantially improving your principal residence also qualify for the exclusion.
6. Proceeds of refinanced debt used for other purposes – for example, to pay off credit card debt – do not qualify for the exclusion.
7. If you qualify, claim the special exclusion by filling out Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness, and attach it to your federal income tax return for the tax year in which the qualified debt was forgiven.
8. Debt forgiven on second homes, rental property, business property, credit cards or car loans does not qualify for the tax relief provision. In some cases, however, other tax relief provisions – such as insolvency – may be applicable. IRS Form 982 provides more details about these provisions.
9. If your debt is reduced or eliminated you normally will receive a year-end statement, Form 1099-C, Cancellation of Debt, from your lender. By law, this form must show the amount of debt forgiven and the fair market value of any property foreclosed.
10. Examine the Form 1099-C carefully. Notify the lender immediately if any of the information shown is incorrect. You should pay particular attention to the amount of debt forgiven in Box 2 as well as the value listed for your home in Box 7.
For more information about the Mortgage Forgiveness Debt Relief Act of 2007, visit www.irs.gov. IRS Publication 4681, Canceled Debts, Foreclosures, Repossessions and Abandonments, is also an excellent resource.
Tuesday, February 28, 2012
Thursday, February 23, 2012
IRS's Six Tips on a Tax Credit for Retirement Savings
Below you will find the announcement from the IRS on Tax Credits for Retirement Savings.
If you make eligible contributions to an employer-sponsored retirement plan or to an individual retirement arrangement, you may be eligible for a tax credit, depending on your age and income.
Here are six things the IRS wants you to know about the Savers Credit:
1. Income limits The Savers Credit, formally known as the Retirement Savings Contributions Credit, applies to individuals with a filing status and 2011 income of:
Single, married filing separately, or qualifying widow(er), with income up to $28,250
Head of Household with income up to $42,375
Married Filing Jointly, with incomes up to $56,500
2. Eligibility requirements To be eligible for the credit you must be at least 18 years of age, you cannot have been a full-time student during the calendar year and cannot be claimed as a dependent on another person’s return.
3. Credit amount If you make eligible contributions to a qualified IRA, 401(k) and certain other retirement plans, you may be able to take a credit of up to $1,000 ($2,000 if filing jointly). The credit is a percentage of the qualifying contribution amount, with the highest rate for taxpayers with the least income.
4. Distributions When figuring this credit, you generally must subtract distributions you received from your retirement plans from the contributions you made. This rule applies to distributions received in the two years before the year the credit is claimed, the year the credit is claimed, and the period after the end of the credit year but before the due date - including extensions - for filing the return for the credit year.
5. Other tax benefits The Retirement Savings Contributions Credit is in addition to other tax benefits you may receive for retirement contributions. For example, most workers at these income levels may deduct all or part of their contributions to a traditional IRA. Contributions to a regular 401(k) plan are not subject to income tax until withdrawn from the plan.
6. Forms to use To claim the credit use Form 8880, Credit for Qualified Retirement Savings Contributions.
For more information, review IRS Publication 590, Individual Retirement Arrangements (IRAs), Publication 4703, Retirement Savings Contributions Credit, and Form 8880. Publications and forms can be downloaded at www.irs.gov or ordered by calling 800-TAX-FORM (800-829-3676).
If you make eligible contributions to an employer-sponsored retirement plan or to an individual retirement arrangement, you may be eligible for a tax credit, depending on your age and income.
Here are six things the IRS wants you to know about the Savers Credit:
1. Income limits The Savers Credit, formally known as the Retirement Savings Contributions Credit, applies to individuals with a filing status and 2011 income of:
Single, married filing separately, or qualifying widow(er), with income up to $28,250
Head of Household with income up to $42,375
Married Filing Jointly, with incomes up to $56,500
2. Eligibility requirements To be eligible for the credit you must be at least 18 years of age, you cannot have been a full-time student during the calendar year and cannot be claimed as a dependent on another person’s return.
3. Credit amount If you make eligible contributions to a qualified IRA, 401(k) and certain other retirement plans, you may be able to take a credit of up to $1,000 ($2,000 if filing jointly). The credit is a percentage of the qualifying contribution amount, with the highest rate for taxpayers with the least income.
4. Distributions When figuring this credit, you generally must subtract distributions you received from your retirement plans from the contributions you made. This rule applies to distributions received in the two years before the year the credit is claimed, the year the credit is claimed, and the period after the end of the credit year but before the due date - including extensions - for filing the return for the credit year.
5. Other tax benefits The Retirement Savings Contributions Credit is in addition to other tax benefits you may receive for retirement contributions. For example, most workers at these income levels may deduct all or part of their contributions to a traditional IRA. Contributions to a regular 401(k) plan are not subject to income tax until withdrawn from the plan.
6. Forms to use To claim the credit use Form 8880, Credit for Qualified Retirement Savings Contributions.
For more information, review IRS Publication 590, Individual Retirement Arrangements (IRAs), Publication 4703, Retirement Savings Contributions Credit, and Form 8880. Publications and forms can be downloaded at www.irs.gov or ordered by calling 800-TAX-FORM (800-829-3676).
Wednesday, February 22, 2012
Ten Thing You Should Know About Capital Gains and Losses
When a tax professional sees that you have 1099-B which have been sent to the IRS, they know two things immediately. You either have a lost or a gain which will tax you heavy, and it will cost more to prepare your tax return.
A lost can be bad for your over all financial picture, but can be up to a $3000 deduction per year until the loss is recovered, on your tax return.
Serious tax planning includes you consulting with your tax professional BEFORE you sell an investment. Below is the IRS's word for word, information on Capital Gains and Losses
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Ten Things to Know About Capital Gains and Losses
Did you know that almost everything you own and use for personal or investment purposes is a capital asset? Capital assets include a home, household furnishings and stocks and bonds held in a personal account. When you sell a capital asset, the difference between the amount you paid for the asset and its sales price is a capital gain or capital loss.
Here are 10 facts from the IRS about how gains and losses can affect your federal income tax return.
1. Almost everything you own and use for personal purposes, pleasure or investment is a capital asset.
2. When you sell a capital asset, the difference between the amount you sell it for and your basis – which is usually what you paid for it – is a capital gain or a capital loss.
3. You must report all capital gains.
4. You may only deduct capital losses on investment property, not on personal-use property.
5. Capital gains and losses are classified as long-term or short-term. If you hold the property more than one year, your capital gain or loss is long-term. If you hold it one year or less, the gain or loss is short-term.
6. If you have long-term gains in excess of your long-term losses, the difference is normally a net capital gain. Subtract any short-term losses from the net capital gain to calculate the net capital gain you must report.
7. The tax rates that apply to net capital gain are generally lower than the tax rates that apply to other income. For 2011, the maximum capital gains rate for most people is 15 percent. For lower-income individuals, the rate may be 0 percent on some or all of the net capital gain. Rates of 25 or 28 percent may apply to special types of net capital gain.
8. If your capital losses exceed your capital gains, you can deduct the excess on your tax return to reduce other income, such as wages, up to an annual limit of $3,000, or $1,500 if you are married filing separately.
9. If your total net capital loss is more than the yearly limit on capital loss deductions, you can carry over the unused part to the next year and treat it as if you incurred it in that next year.
10. This year, a new form, Form 8949, Sales and Other Dispositions of Capital Assets, will be used to calculate capital gains and losses. Use Form 8949 to list all capital gain and loss transactions. The subtotals from this form will then be carried over to Schedule D (Form 1040), where gain or loss will be calculated.
For more information about reporting capital gains and losses, see the Schedule D instructions, Publication 550, Investment Income and Expenses or Publication 17, Your Federal Income Tax. All forms and publications are available at www.irs.gov or by calling 800-TAX-FORM (800-829-3676).
A lost can be bad for your over all financial picture, but can be up to a $3000 deduction per year until the loss is recovered, on your tax return.
Serious tax planning includes you consulting with your tax professional BEFORE you sell an investment. Below is the IRS's word for word, information on Capital Gains and Losses
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Ten Things to Know About Capital Gains and Losses
Did you know that almost everything you own and use for personal or investment purposes is a capital asset? Capital assets include a home, household furnishings and stocks and bonds held in a personal account. When you sell a capital asset, the difference between the amount you paid for the asset and its sales price is a capital gain or capital loss.
Here are 10 facts from the IRS about how gains and losses can affect your federal income tax return.
1. Almost everything you own and use for personal purposes, pleasure or investment is a capital asset.
2. When you sell a capital asset, the difference between the amount you sell it for and your basis – which is usually what you paid for it – is a capital gain or a capital loss.
3. You must report all capital gains.
4. You may only deduct capital losses on investment property, not on personal-use property.
5. Capital gains and losses are classified as long-term or short-term. If you hold the property more than one year, your capital gain or loss is long-term. If you hold it one year or less, the gain or loss is short-term.
6. If you have long-term gains in excess of your long-term losses, the difference is normally a net capital gain. Subtract any short-term losses from the net capital gain to calculate the net capital gain you must report.
7. The tax rates that apply to net capital gain are generally lower than the tax rates that apply to other income. For 2011, the maximum capital gains rate for most people is 15 percent. For lower-income individuals, the rate may be 0 percent on some or all of the net capital gain. Rates of 25 or 28 percent may apply to special types of net capital gain.
8. If your capital losses exceed your capital gains, you can deduct the excess on your tax return to reduce other income, such as wages, up to an annual limit of $3,000, or $1,500 if you are married filing separately.
9. If your total net capital loss is more than the yearly limit on capital loss deductions, you can carry over the unused part to the next year and treat it as if you incurred it in that next year.
10. This year, a new form, Form 8949, Sales and Other Dispositions of Capital Assets, will be used to calculate capital gains and losses. Use Form 8949 to list all capital gain and loss transactions. The subtotals from this form will then be carried over to Schedule D (Form 1040), where gain or loss will be calculated.
For more information about reporting capital gains and losses, see the Schedule D instructions, Publication 550, Investment Income and Expenses or Publication 17, Your Federal Income Tax. All forms and publications are available at www.irs.gov or by calling 800-TAX-FORM (800-829-3676).
Tuesday, February 21, 2012
Early Distribution from Retirement Plans May Incurr a Tax Penalty
Today more and more people are having to reach into their retirement plans in order to exist. You are not alone. Retirement Plans have been hardest hit by the recent down turn in the economy. However, what taxpayers must understand, is: If you are not 59 1/2 years of age, more than likely you will have to pay a penalty on early distributions.
Below is the professional way in which the IRS, gives you even more bad news. Because, not only is your Retirement Plan worth far less, now they want to stick you with a penalty for taking it out of your Retirement account, anid no the only thing that rolled over was you, in the early morning, because because there was no job to go to.
Early Distribution from Retirement Plans May Have a Tax Impact
Taxpayers may sometimes find themselves in situations when they need to withdraw money from their retirement plan early. What they may not realize is that that transaction may mean a tax impact when they file their return.
Here are 10 facts from the IRS about the tax implications of an early distribution from your retirement plan.
1. Payments you receive from your Individual Retirement Arrangement before you reach age 59 ½ are generally considered early or premature distributions.
2. Early distributions are usually subject to an additional 10 percent tax.
3. Early distributions must also be reported to the IRS.
4. Distributions you roll over to another IRA or qualified retirement plan are not subject to the additional 10 percent tax. You must complete the rollover within 60 days after the day you received the distribution.
5. The amount you roll over is generally taxed when the new plan makes a distribution to you or your beneficiary.
6. If you made nondeductible contributions to an IRA and later take early distributions from your IRA, the portion of the distribution attributable to those nondeductible contributions is not taxed.
7. If you received an early distribution from a Roth IRA, the distribution attributable to your prior contributions is not taxed.
8. If you received a distribution from any other qualified retirement plan, generally the entire distribution is taxable unless you made after-tax employee contributions to the plan.
9. There are several exceptions to the additional 10 percent early distribution tax, such as when the distributions are used for the purchase of a first home (up to $10,000), for certain medical or educational expenses, or if you are totally and permanently disabled.
10. For more information about early distributions from retirement plans, the additional 10 percent tax and all the exceptions, see IRS Publication 575, Pension and Annuity Income and Publication 590, Individual Retirement Arrangements (IRAs). Both publications are available at www.irs.gov or by calling 800-TAX-FORM (800-829-3676).
Below is the professional way in which the IRS, gives you even more bad news. Because, not only is your Retirement Plan worth far less, now they want to stick you with a penalty for taking it out of your Retirement account, anid no the only thing that rolled over was you, in the early morning, because because there was no job to go to.
Early Distribution from Retirement Plans May Have a Tax Impact
Taxpayers may sometimes find themselves in situations when they need to withdraw money from their retirement plan early. What they may not realize is that that transaction may mean a tax impact when they file their return.
Here are 10 facts from the IRS about the tax implications of an early distribution from your retirement plan.
1. Payments you receive from your Individual Retirement Arrangement before you reach age 59 ½ are generally considered early or premature distributions.
2. Early distributions are usually subject to an additional 10 percent tax.
3. Early distributions must also be reported to the IRS.
4. Distributions you roll over to another IRA or qualified retirement plan are not subject to the additional 10 percent tax. You must complete the rollover within 60 days after the day you received the distribution.
5. The amount you roll over is generally taxed when the new plan makes a distribution to you or your beneficiary.
6. If you made nondeductible contributions to an IRA and later take early distributions from your IRA, the portion of the distribution attributable to those nondeductible contributions is not taxed.
7. If you received an early distribution from a Roth IRA, the distribution attributable to your prior contributions is not taxed.
8. If you received a distribution from any other qualified retirement plan, generally the entire distribution is taxable unless you made after-tax employee contributions to the plan.
9. There are several exceptions to the additional 10 percent early distribution tax, such as when the distributions are used for the purchase of a first home (up to $10,000), for certain medical or educational expenses, or if you are totally and permanently disabled.
10. For more information about early distributions from retirement plans, the additional 10 percent tax and all the exceptions, see IRS Publication 575, Pension and Annuity Income and Publication 590, Individual Retirement Arrangements (IRAs). Both publications are available at www.irs.gov or by calling 800-TAX-FORM (800-829-3676).
Ways Real Estate Owners are Profiting from the Real Estate Slump
Within every dark cloud there is a silver lining. The real estate slump is no different. Owners of investment real estate property quickly started placing ads in the newspapers whcih read as follows:
Owner Will Carry, $89.5K
3bd/2bath, built 2005
All Credit Types Accepted
The above ad can be found by clicking on the title of this post and scrolling to the bottom of the page for a video of this property. (The site is full rent to own and owner financing properties, in every major city)
What real estate investors understand, and most people don't, is:
When you get ready to sell a piece of property that is NOT your primary home, and the property has been listed on a Schedule E of your tax return as a rental property, then the IRS will take CAPPITAL GAINS TAXES, once you sell the property.
There are two ways to avoid or lower capital gains taxes when selling rental property.
1) 1031 Exchange
2) Sell the property on a month to month contract and only pay capital gains on the amount which you collect each year.
Smart Rental Property Owners are doing just that. And the silver lining is, many people are able to purchase property that they never would have been able to qualify for, with the banks.
The risk is low. The gains are great.
Rental property owners over insure the property in case the buyer defaults and leaves the property in a mess, or stops making their payments.
If this should happen, the owner who is financing the loan, fixes the property up and sells the property all over - keeping ALL the money from the previous buyer who defaulted.
Sweet. Information is power, and can turn bad events into good, even the down turn of the hoursing market. Because when you finance the property for the buyer, you will receive twice the amount of the selling price, because of the interest the buyer pays you!
Owner Will Carry, $89.5K
3bd/2bath, built 2005
All Credit Types Accepted
The above ad can be found by clicking on the title of this post and scrolling to the bottom of the page for a video of this property. (The site is full rent to own and owner financing properties, in every major city)
What real estate investors understand, and most people don't, is:
When you get ready to sell a piece of property that is NOT your primary home, and the property has been listed on a Schedule E of your tax return as a rental property, then the IRS will take CAPPITAL GAINS TAXES, once you sell the property.
There are two ways to avoid or lower capital gains taxes when selling rental property.
1) 1031 Exchange
2) Sell the property on a month to month contract and only pay capital gains on the amount which you collect each year.
Smart Rental Property Owners are doing just that. And the silver lining is, many people are able to purchase property that they never would have been able to qualify for, with the banks.
The risk is low. The gains are great.
Rental property owners over insure the property in case the buyer defaults and leaves the property in a mess, or stops making their payments.
If this should happen, the owner who is financing the loan, fixes the property up and sells the property all over - keeping ALL the money from the previous buyer who defaulted.
Sweet. Information is power, and can turn bad events into good, even the down turn of the hoursing market. Because when you finance the property for the buyer, you will receive twice the amount of the selling price, because of the interest the buyer pays you!
Thursday, February 16, 2012
The IRS Tax Scam List Reads More Like the Inside Secrets of the Rich
The IRS released a list of 12 items which they consider to be tax scams. The list is includes things like hiding income in offshore accounts to people hiding income within 501(c)(3) organizations, to avoid taxes, corporate ownerships which don't disclose the true owner of the stock, to Annuity Trust and Foreign Trust accounts created for the sole purpose of shifting income and increasing personal expenses.
In the beginning the report reads like your every day, identity theft, and the normal stuff people try to get away with. However, when you keep reading you learn more about how the big boys try to get around paying taxes. It's enlightening to see what some American taxpayers have filed with the Internal Revenue Service. (The fact that the IRS includes the method of tax reporting means, more than just a few people used the technique)
The fact that there are over 30,000 people, since 2009, who have admitted to having Offshore Accounts, which they DID NOT report to the IRS - as a result the IRS has collected over 3.4 billion, no, that was NOT million. That was 3.4 billion in taxes.
That tell on yourself program was extended, so more people are expected to come clean on their 2011 tax returns.
This is a long post, you may want to get a cup of tea.
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WASHINGTON –– The Internal Revenue Service today issued its annual “Dirty Dozen” ranking of tax scams, reminding taxpayers to use caution during tax season to protect themselves against a wide range of schemes ranging from identity theft to return preparer fraud.
The Dirty Dozen listing, compiled by the IRS each year, lists a variety of common scams taxpayers can encounter at any point during the year. But many of these schemes peak during filing season as people prepare their tax returns.
“Taxpayers should be careful and avoid falling into a trap with the Dirty Dozen,” said IRS Commissioner Doug Shulman. “Scam artists will tempt people in-person, on-line and by e-mail with misleading promises about lost refunds and free money. Don’t be fooled by these scams.”
Illegal scams can lead to significant penalties and interest and possible criminal prosecution. The IRS Criminal Investigation Division works closely with the Department of Justice to shutdown scams and prosecute the criminals behind them.
The following is the Dirty Dozen tax scams for 2012:
Identity Theft
Topping this year’s list Dirty Dozen list is identity theft. In response to growing identity theft concerns, the IRS has embarked on a comprehensive strategy that is focused on preventing, detecting and resolving identity theft cases as soon as possible. In addition to the law-enforcement crackdown, the IRS has stepped up its internal reviews to spot false tax returns before tax refunds are issued as well as working to help victims of the identity theft refund schemes.
Identity theft cases are among the most complex ones the IRS handles, but the agency is committed to working with taxpayers who have become victims of identity theft.
The IRS is increasingly seeing identity thieves looking for ways to use a legitimate taxpayer’s identity and personal information to file a tax return and claim a fraudulent refund.
An IRS notice informing a taxpayer that more than one return was filed in the taxpayer’s name or that the taxpayer received wages from an unknown employer may be the first tip off the individual receives that he or she has been victimized.
The IRS has a robust screening process with measures in place to stop fraudulent returns. While the IRS is continuing to address tax-related identity theft aggressively, the agency is also seeing an increase in identity crimes, including more complex schemes. In 2011, the IRS protected more than $1.4 billion of taxpayer funds from getting into the wrong hands due to identity theft.
In January, the IRS announced the results of a massive, national sweep cracking down on suspected identity theft perpetrators as part of a stepped-up effort against refund fraud and identity theft. Working with the Justice Department’s Tax Division and local U.S. Attorneys’ offices, the nationwide effort targeted 105 people in 23 states.
Anyone who believes his or her personal information has been stolen and used for tax purposes should immediately contact the IRS Identity Protection Specialized Unit. For more information, visit the special identity theft page at www.IRS.gov/identitytheft.
Phishing
Phishing is a scam typically carried out with the help of unsolicited email or a fake website that poses as a legitimate site to lure in potential victims and prompt them to provide valuable personal and financial information. Armed with this information, a criminal can commit identity theft or financial theft.
If you receive an unsolicited email that appears to be from either the IRS or an organization closely linked to the IRS, such as the Electronic Federal Tax Payment System (EFTPS), report it by sending it to phishing@irs.gov.
It is important to keep in mind the IRS does not initiate contact with taxpayers by email to request personal or financial information. This includes any type of electronic communication, such as text messages and social media channels. The IRS has information that can help you protect yourself from email scams.
Return Preparer Fraud
About 60 percent of taxpayers will use tax professionals this year to prepare and file their tax returns. Most return preparers provide honest service to their clients. But as in any other business, there are also some who prey on unsuspecting taxpayers.
Questionable return preparers have been known to skim off their clients’ refunds, charge inflated fees for return preparation services and attract new clients by promising guaranteed or inflated refunds. Taxpayers should choose carefully when hiring a tax preparer. Federal courts have issued hundreds of injunctions ordering individuals to cease preparing returns, and the Department of Justice has pending complaints against many others.
In 2012, every paid preparer needs to have a Preparer Tax Identification Number (PTIN) and enter it on the returns he or she prepares.
Signals to watch for when you are dealing with an unscrupulous return preparer would include that they:
Do not sign the return or place a Preparer Tax identification Number on it.
Do not give you a copy of your tax return.
Promise larger than normal tax refunds.
Charge a percentage of the refund amount as preparation fee.
Require you to split the refund to pay the preparation fee.
Add forms to the return you have never filed before.
Encourage you to place false information on your return, such as false income, expenses and/or credits.
For advice on how to find a competent tax professional, see Tips for Choosing a Tax Preparer.
Hiding Income Offshore
Over the years, numerous individuals have been identified as evading U.S. taxes by hiding income in offshore banks, brokerage accounts or nominee entities, using debit cards, credit cards or wire transfers to access the funds. Others have employed foreign trusts, employee-leasing schemes, private annuities or insurance plans for the same purpose.
The IRS uses information gained from its investigations to pursue taxpayers with undeclared accounts, as well as the banks and bankers suspected of helping clients hide their assets overseas. The IRS works closely with the Department of Justice to prosecute tax evasion cases.
While there are legitimate reasons for maintaining financial accounts abroad, there are reporting requirements that need to be fulfilled. U.S. taxpayers who maintain such accounts and who do not comply with reporting and disclosure requirements are breaking the law and risk significant penalties and fines, as well as the possibility of criminal prosecution.
Since 2009, 30,000 individuals have come forward voluntarily to disclose their foreign financial accounts, taking advantage of special opportunities to bring their money back into the U.S. tax system and resolve their tax obligations. And, with new foreign account reporting requirements being phased in over the next few years, hiding income offshore will become increasingly more difficult.
At the beginning of this year, the IRS reopened the Offshore Voluntary Disclosure Program (OVDP) following continued strong interest from taxpayers and tax practitioners after the closure of the 2011 and 2009 programs. The IRS continues working on a wide range of international tax issues and follows ongoing efforts with the Justice Department to pursue criminal prosecution of international tax evasion. This program will be open for an indefinite period until otherwise announced.
The IRS has collected $3.4 billion so far from people who participated in the 2009 offshore program, reflecting closures of about 95 percent of the cases from the 2009 program. On top of that, the IRS has collected an additional $1 billion from up front payments required under the 2011 program. That number will grow as the IRS processes the 2011 cases.
“Free Money” from the IRS & Tax Scams Involving Social Security
Flyers and advertisements for free money from the IRS, suggesting that the taxpayer can file a tax return with little or no documentation, have been appearing in community churches around the country. These schemes are also often spread by word of mouth as unsuspecting and well-intentioned people tell their friends and relatives.
Scammers prey on low income individuals and the elderly. They build false hopes and charge people good money for bad advice. In the end, the victims discover their claims are rejected. Meanwhile, the promoters are long gone. The IRS warns all taxpayers to remain vigilant.
There are a number of tax scams involving Social Security. For example, scammers have been known to lure the unsuspecting with promises of non-existent Social Security refunds or rebates. In another situation, a taxpayer may really be due a credit or refund but uses inflated information to complete the return.
Beware. Intentional mistakes of this kind can result in a $5,000 penalty.
False/Inflated Income and Expenses
Including income that was never earned, either as wages or as self-employment income in order to maximize refundable credits, is another popular scam. Claiming income you did not earn or expenses you did not pay in order to secure larger refundable credits such as the Earned Income Tax Credit could have serious repercussions. This could result in repaying the erroneous refunds, including interest and penalties, and in some cases, even prosecution.
Additionally, some taxpayers are filing excessive claims for the fuel tax credit. Farmers and other taxpayers who use fuel for off-highway business purposes may be eligible for the fuel tax credit. But other individuals have claimed the tax credit when their occupations or income levels make the claims unreasonable. Fraud involving the fuel tax credit is considered a frivolous tax claim and can result in a penalty of $5,000.
False Form 1099 Refund Claims
In this ongoing scam, the perpetrator files a fake information return, such as a Form 1099 Original Issue Discount (OID), to justify a false refund claim on a corresponding tax return. In some cases, individuals have made refund claims based on the bogus theory that the federal government maintains secret accounts for U.S. citizens and that taxpayers can gain access to the accounts by issuing 1099-OID forms to the IRS.
Don’t fall prey to people who encourage you to claim deductions or credits to which you are not entitled or willingly allow others to use your information to file false returns. If you are a party to such schemes, you could be liable for financial penalties or even face criminal prosecution.
Frivolous Arguments
Promoters of frivolous schemes encourage taxpayers to make unreasonable and outlandish claims to avoid paying the taxes they owe. The IRS has a list of frivolous tax arguments that taxpayers should avoid. These arguments are false and have been thrown out of court. While taxpayers have the right to contest their tax liabilities in court, no one has the right to disobey the law.
Falsely Claiming Zero Wages
Filing a phony information return is an illegal way to lower the amount of taxes an individual owes. Typically, a Form 4852 (Substitute Form W-2) or a “corrected” Form 1099 is used as a way to improperly reduce taxable income to zero. The taxpayer may also submit a statement rebutting wages and taxes reported by a payer to the IRS.
Sometimes, fraudsters even include an explanation on their Form 4852 that cites statutory language on the definition of wages or may include some reference to a paying company that refuses to issue a corrected Form W-2 for fear of IRS retaliation. Taxpayers should resist any temptation to participate in any variations of this scheme. Filing this type of return may result in a $5,000 penalty.
Abuse of Charitable Organizations and Deductions
IRS examiners continue to uncover the intentional abuse of 501(c)(3) organizations, including arrangements that improperly shield income or assets from taxation and attempts by donors to maintain control over donated assets or the income from donated property. The IRS is investigating schemes that involve the donation of non-cash assets –– including situations in which several organizations claim the full value of the same non-cash contribution. Often these donations are highly overvalued or the organization receiving the donation promises that the donor can repurchase the items later at a price set by the donor. The Pension Protection Act of 2006 imposed increased penalties for inaccurate appraisals and set new standards for qualified appraisals.
Disguised Corporate Ownership
Third parties are improperly used to request employer identification numbers and form corporations that obscure the true ownership of the business.
These entities can be used to underreport income, claim fictitious deductions, avoid filing tax returns, participate in listed transactions and facilitate money laundering, and financial crimes. The IRS is working with state authorities to identify these entities and bring the owners into compliance with the law.
Misuse of Trusts
For years, unscrupulous promoters have urged taxpayers to transfer assets into trusts. While there are legitimate uses of trusts in tax and estate planning, some highly questionable transactions promise reduction of income subject to tax, deductions for personal expenses and reduced estate or gift taxes. Such trusts rarely deliver the tax benefits promised and are used primarily as a means of avoiding income tax liability and hiding assets from creditors, including the IRS.
IRS personnel have seen an increase in the improper use of private annuity trusts and foreign trusts to shift income and deduct personal expenses. As with other arrangements, taxpayers should seek the advice of a trusted professional before entering a trust arrangement
In the beginning the report reads like your every day, identity theft, and the normal stuff people try to get away with. However, when you keep reading you learn more about how the big boys try to get around paying taxes. It's enlightening to see what some American taxpayers have filed with the Internal Revenue Service. (The fact that the IRS includes the method of tax reporting means, more than just a few people used the technique)
The fact that there are over 30,000 people, since 2009, who have admitted to having Offshore Accounts, which they DID NOT report to the IRS - as a result the IRS has collected over 3.4 billion, no, that was NOT million. That was 3.4 billion in taxes.
That tell on yourself program was extended, so more people are expected to come clean on their 2011 tax returns.
This is a long post, you may want to get a cup of tea.
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WASHINGTON –– The Internal Revenue Service today issued its annual “Dirty Dozen” ranking of tax scams, reminding taxpayers to use caution during tax season to protect themselves against a wide range of schemes ranging from identity theft to return preparer fraud.
The Dirty Dozen listing, compiled by the IRS each year, lists a variety of common scams taxpayers can encounter at any point during the year. But many of these schemes peak during filing season as people prepare their tax returns.
“Taxpayers should be careful and avoid falling into a trap with the Dirty Dozen,” said IRS Commissioner Doug Shulman. “Scam artists will tempt people in-person, on-line and by e-mail with misleading promises about lost refunds and free money. Don’t be fooled by these scams.”
Illegal scams can lead to significant penalties and interest and possible criminal prosecution. The IRS Criminal Investigation Division works closely with the Department of Justice to shutdown scams and prosecute the criminals behind them.
The following is the Dirty Dozen tax scams for 2012:
Identity Theft
Topping this year’s list Dirty Dozen list is identity theft. In response to growing identity theft concerns, the IRS has embarked on a comprehensive strategy that is focused on preventing, detecting and resolving identity theft cases as soon as possible. In addition to the law-enforcement crackdown, the IRS has stepped up its internal reviews to spot false tax returns before tax refunds are issued as well as working to help victims of the identity theft refund schemes.
Identity theft cases are among the most complex ones the IRS handles, but the agency is committed to working with taxpayers who have become victims of identity theft.
The IRS is increasingly seeing identity thieves looking for ways to use a legitimate taxpayer’s identity and personal information to file a tax return and claim a fraudulent refund.
An IRS notice informing a taxpayer that more than one return was filed in the taxpayer’s name or that the taxpayer received wages from an unknown employer may be the first tip off the individual receives that he or she has been victimized.
The IRS has a robust screening process with measures in place to stop fraudulent returns. While the IRS is continuing to address tax-related identity theft aggressively, the agency is also seeing an increase in identity crimes, including more complex schemes. In 2011, the IRS protected more than $1.4 billion of taxpayer funds from getting into the wrong hands due to identity theft.
In January, the IRS announced the results of a massive, national sweep cracking down on suspected identity theft perpetrators as part of a stepped-up effort against refund fraud and identity theft. Working with the Justice Department’s Tax Division and local U.S. Attorneys’ offices, the nationwide effort targeted 105 people in 23 states.
Anyone who believes his or her personal information has been stolen and used for tax purposes should immediately contact the IRS Identity Protection Specialized Unit. For more information, visit the special identity theft page at www.IRS.gov/identitytheft.
Phishing
Phishing is a scam typically carried out with the help of unsolicited email or a fake website that poses as a legitimate site to lure in potential victims and prompt them to provide valuable personal and financial information. Armed with this information, a criminal can commit identity theft or financial theft.
If you receive an unsolicited email that appears to be from either the IRS or an organization closely linked to the IRS, such as the Electronic Federal Tax Payment System (EFTPS), report it by sending it to phishing@irs.gov.
It is important to keep in mind the IRS does not initiate contact with taxpayers by email to request personal or financial information. This includes any type of electronic communication, such as text messages and social media channels. The IRS has information that can help you protect yourself from email scams.
Return Preparer Fraud
About 60 percent of taxpayers will use tax professionals this year to prepare and file their tax returns. Most return preparers provide honest service to their clients. But as in any other business, there are also some who prey on unsuspecting taxpayers.
Questionable return preparers have been known to skim off their clients’ refunds, charge inflated fees for return preparation services and attract new clients by promising guaranteed or inflated refunds. Taxpayers should choose carefully when hiring a tax preparer. Federal courts have issued hundreds of injunctions ordering individuals to cease preparing returns, and the Department of Justice has pending complaints against many others.
In 2012, every paid preparer needs to have a Preparer Tax Identification Number (PTIN) and enter it on the returns he or she prepares.
Signals to watch for when you are dealing with an unscrupulous return preparer would include that they:
Do not sign the return or place a Preparer Tax identification Number on it.
Do not give you a copy of your tax return.
Promise larger than normal tax refunds.
Charge a percentage of the refund amount as preparation fee.
Require you to split the refund to pay the preparation fee.
Add forms to the return you have never filed before.
Encourage you to place false information on your return, such as false income, expenses and/or credits.
For advice on how to find a competent tax professional, see Tips for Choosing a Tax Preparer.
Hiding Income Offshore
Over the years, numerous individuals have been identified as evading U.S. taxes by hiding income in offshore banks, brokerage accounts or nominee entities, using debit cards, credit cards or wire transfers to access the funds. Others have employed foreign trusts, employee-leasing schemes, private annuities or insurance plans for the same purpose.
The IRS uses information gained from its investigations to pursue taxpayers with undeclared accounts, as well as the banks and bankers suspected of helping clients hide their assets overseas. The IRS works closely with the Department of Justice to prosecute tax evasion cases.
While there are legitimate reasons for maintaining financial accounts abroad, there are reporting requirements that need to be fulfilled. U.S. taxpayers who maintain such accounts and who do not comply with reporting and disclosure requirements are breaking the law and risk significant penalties and fines, as well as the possibility of criminal prosecution.
Since 2009, 30,000 individuals have come forward voluntarily to disclose their foreign financial accounts, taking advantage of special opportunities to bring their money back into the U.S. tax system and resolve their tax obligations. And, with new foreign account reporting requirements being phased in over the next few years, hiding income offshore will become increasingly more difficult.
At the beginning of this year, the IRS reopened the Offshore Voluntary Disclosure Program (OVDP) following continued strong interest from taxpayers and tax practitioners after the closure of the 2011 and 2009 programs. The IRS continues working on a wide range of international tax issues and follows ongoing efforts with the Justice Department to pursue criminal prosecution of international tax evasion. This program will be open for an indefinite period until otherwise announced.
The IRS has collected $3.4 billion so far from people who participated in the 2009 offshore program, reflecting closures of about 95 percent of the cases from the 2009 program. On top of that, the IRS has collected an additional $1 billion from up front payments required under the 2011 program. That number will grow as the IRS processes the 2011 cases.
“Free Money” from the IRS & Tax Scams Involving Social Security
Flyers and advertisements for free money from the IRS, suggesting that the taxpayer can file a tax return with little or no documentation, have been appearing in community churches around the country. These schemes are also often spread by word of mouth as unsuspecting and well-intentioned people tell their friends and relatives.
Scammers prey on low income individuals and the elderly. They build false hopes and charge people good money for bad advice. In the end, the victims discover their claims are rejected. Meanwhile, the promoters are long gone. The IRS warns all taxpayers to remain vigilant.
There are a number of tax scams involving Social Security. For example, scammers have been known to lure the unsuspecting with promises of non-existent Social Security refunds or rebates. In another situation, a taxpayer may really be due a credit or refund but uses inflated information to complete the return.
Beware. Intentional mistakes of this kind can result in a $5,000 penalty.
False/Inflated Income and Expenses
Including income that was never earned, either as wages or as self-employment income in order to maximize refundable credits, is another popular scam. Claiming income you did not earn or expenses you did not pay in order to secure larger refundable credits such as the Earned Income Tax Credit could have serious repercussions. This could result in repaying the erroneous refunds, including interest and penalties, and in some cases, even prosecution.
Additionally, some taxpayers are filing excessive claims for the fuel tax credit. Farmers and other taxpayers who use fuel for off-highway business purposes may be eligible for the fuel tax credit. But other individuals have claimed the tax credit when their occupations or income levels make the claims unreasonable. Fraud involving the fuel tax credit is considered a frivolous tax claim and can result in a penalty of $5,000.
False Form 1099 Refund Claims
In this ongoing scam, the perpetrator files a fake information return, such as a Form 1099 Original Issue Discount (OID), to justify a false refund claim on a corresponding tax return. In some cases, individuals have made refund claims based on the bogus theory that the federal government maintains secret accounts for U.S. citizens and that taxpayers can gain access to the accounts by issuing 1099-OID forms to the IRS.
Don’t fall prey to people who encourage you to claim deductions or credits to which you are not entitled or willingly allow others to use your information to file false returns. If you are a party to such schemes, you could be liable for financial penalties or even face criminal prosecution.
Frivolous Arguments
Promoters of frivolous schemes encourage taxpayers to make unreasonable and outlandish claims to avoid paying the taxes they owe. The IRS has a list of frivolous tax arguments that taxpayers should avoid. These arguments are false and have been thrown out of court. While taxpayers have the right to contest their tax liabilities in court, no one has the right to disobey the law.
Falsely Claiming Zero Wages
Filing a phony information return is an illegal way to lower the amount of taxes an individual owes. Typically, a Form 4852 (Substitute Form W-2) or a “corrected” Form 1099 is used as a way to improperly reduce taxable income to zero. The taxpayer may also submit a statement rebutting wages and taxes reported by a payer to the IRS.
Sometimes, fraudsters even include an explanation on their Form 4852 that cites statutory language on the definition of wages or may include some reference to a paying company that refuses to issue a corrected Form W-2 for fear of IRS retaliation. Taxpayers should resist any temptation to participate in any variations of this scheme. Filing this type of return may result in a $5,000 penalty.
Abuse of Charitable Organizations and Deductions
IRS examiners continue to uncover the intentional abuse of 501(c)(3) organizations, including arrangements that improperly shield income or assets from taxation and attempts by donors to maintain control over donated assets or the income from donated property. The IRS is investigating schemes that involve the donation of non-cash assets –– including situations in which several organizations claim the full value of the same non-cash contribution. Often these donations are highly overvalued or the organization receiving the donation promises that the donor can repurchase the items later at a price set by the donor. The Pension Protection Act of 2006 imposed increased penalties for inaccurate appraisals and set new standards for qualified appraisals.
Disguised Corporate Ownership
Third parties are improperly used to request employer identification numbers and form corporations that obscure the true ownership of the business.
These entities can be used to underreport income, claim fictitious deductions, avoid filing tax returns, participate in listed transactions and facilitate money laundering, and financial crimes. The IRS is working with state authorities to identify these entities and bring the owners into compliance with the law.
Misuse of Trusts
For years, unscrupulous promoters have urged taxpayers to transfer assets into trusts. While there are legitimate uses of trusts in tax and estate planning, some highly questionable transactions promise reduction of income subject to tax, deductions for personal expenses and reduced estate or gift taxes. Such trusts rarely deliver the tax benefits promised and are used primarily as a means of avoiding income tax liability and hiding assets from creditors, including the IRS.
IRS personnel have seen an increase in the improper use of private annuity trusts and foreign trusts to shift income and deduct personal expenses. As with other arrangements, taxpayers should seek the advice of a trusted professional before entering a trust arrangement
Wednesday, February 15, 2012
Search Engine Optimized Store for Travel Agents
The keyword search for "travel agent" is increasing by the hundreds of thousands each month. More travelers are looking for online travel agents.
The days of the mom and pop travel agent on the corner in your local retail area, may be gone, however, travelers have made a new place in their hearts for the "travel agent."
There are a lot of reasons for this gradual but definite change in the booking of travel, especially for unique travel, family vacations, romantic travel, wedding and family reunion travel. In order to remain positive, I won't go into the different reasons, just know that travel agents are now actively being sought out, online.
Now. Travel Agents must make it their business to be found.
Setting up a web site and waiting for travelers to show up WON"T happen unless your web site has been optimized to "communicate" with the search engines. And even then, if the site doesn't have quality back links, new content, and about 30 plus other factors, the search engines, may rank the site low.
The SEO Travel Store platform, is managed and operated by Travel360Degrees.com/classifieds and is available for all travel professionals for $4.95 per month.
The staff helps the travel agent to set up his or her one page Travel Store, using the latest SEO techniques. They even go so far as helping travel agents to select their long tail keywords, in order to be found by more potential clients.
The platform allows the travel professional to post up to 50 different travel deals per month, all search engine optimized, on different pages, which connect back to the the agent's travel store.
The platform then allows the user to connect with ALL major social networking sites, with the click of a button and distribute the information about selected upcoming travel deals. This benefit alone is priceless.
To help travel agents further, the folks at T360 TravelClassifieds, helps travel agents to get more quality Twitter followers, so that when travel deals are tweeted, the are followers with a sincere interest, and eventually will purchase travel, once they get to know the travel professional.
It's all about building a relationship. It is said that someone needs to see or read an add at least seven (7) times, before they respond. This appears to be true, except, when you offer something people want, they will contact you immediately when certain factors are included in your message to them.
There is not cost for travel agents to post their travel deals. Signing up for the SEO Travel Store, which should connect back to the agent's primary web site, is to ensure that your travel deals are indexed in the search engines. Click on the heading to be taken to the Travel Classifieds Site. Click on Premium Store to learn more about the Search Engine Optimized Travel Store.
Travel Agents or any other industry who needs their web site optimized, please contact the Internet Marketing Specialist, by using the Contact Us on the
T360 TravelClassifieds site
The days of the mom and pop travel agent on the corner in your local retail area, may be gone, however, travelers have made a new place in their hearts for the "travel agent."
There are a lot of reasons for this gradual but definite change in the booking of travel, especially for unique travel, family vacations, romantic travel, wedding and family reunion travel. In order to remain positive, I won't go into the different reasons, just know that travel agents are now actively being sought out, online.
Now. Travel Agents must make it their business to be found.
Setting up a web site and waiting for travelers to show up WON"T happen unless your web site has been optimized to "communicate" with the search engines. And even then, if the site doesn't have quality back links, new content, and about 30 plus other factors, the search engines, may rank the site low.
The SEO Travel Store platform, is managed and operated by Travel360Degrees.com/classifieds and is available for all travel professionals for $4.95 per month.
The staff helps the travel agent to set up his or her one page Travel Store, using the latest SEO techniques. They even go so far as helping travel agents to select their long tail keywords, in order to be found by more potential clients.
The platform allows the travel professional to post up to 50 different travel deals per month, all search engine optimized, on different pages, which connect back to the the agent's travel store.
The platform then allows the user to connect with ALL major social networking sites, with the click of a button and distribute the information about selected upcoming travel deals. This benefit alone is priceless.
To help travel agents further, the folks at T360 TravelClassifieds, helps travel agents to get more quality Twitter followers, so that when travel deals are tweeted, the are followers with a sincere interest, and eventually will purchase travel, once they get to know the travel professional.
It's all about building a relationship. It is said that someone needs to see or read an add at least seven (7) times, before they respond. This appears to be true, except, when you offer something people want, they will contact you immediately when certain factors are included in your message to them.
There is not cost for travel agents to post their travel deals. Signing up for the SEO Travel Store, which should connect back to the agent's primary web site, is to ensure that your travel deals are indexed in the search engines. Click on the heading to be taken to the Travel Classifieds Site. Click on Premium Store to learn more about the Search Engine Optimized Travel Store.
Travel Agents or any other industry who needs their web site optimized, please contact the Internet Marketing Specialist, by using the Contact Us on the
T360 TravelClassifieds site
Tax Tips on Including Unemployment on Your Tax Return
Yes, you must report ALL of your unemployment monies on Form 1040, Line 19 - Front page of the Form 1040.
The bad news is, Unemployment Income will be taxed, the good news is, the cost for looking for employment, including the cost of your Internet Provider Service is tax deductible, if and when you use your computer to look for work.
There are some stipulations when claiming this deduction, so do your homework. In the meantime, below are tips the IRS would like you to know about reporting your unemployment compensation:
Unemployment compensation generally includes, among other forms, state unemployment compensation benefits, but the tax implications depend on the type of program paying the benefits. You must report unemployment compensation on line 19 of Form 1040, line 13 of Form 1040A, or line 3 of Form 1040EZ.
Here are four tips from the IRS about unemployment benefits.
1. You must include all unemployment compensation you receive in your total income for the year. You should receive a Form 1099-G, with the total unemployment compensation paid to you shown in box 1.
2. Other types of unemployment benefits include:
Benefits paid by a state or the District of Columbia from the Federal Unemployment Trust Fund
Railroad unemployment compensation benefits
Disability payments from a government program paid as a substitute for unemployment compensation
Trade readjustment allowances under the Trade Act of 1974
Unemployment assistance under the Disaster Relief and Emergency Assistance Act
For complete information on each of the benefits listed, see chapter 12 in IRS Publication 17, Your Federal Income Tax, or Publication 525, Taxable and Nontaxable Income.
3. You must report benefits paid to you as an unemployed member of a union from regular union dues. However, if you contribute to a special union fund and your payments to the fund are not deductible, you only need to include in your income the unemployment benefits that exceed the amount of your contributions.
4. You can choose to have federal income tax withheld from your unemployment compensation. To make this choice, complete Form W-4V, Voluntary Withholding Request, and give it to the paying office. Tax will be withheld at 10 percent of your payment. If you choose not to have tax withheld, you may have to make estimated tax payments throughout the year.
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If you need help, filing your return, and would rather NOT leave home, we prepare taxes online. A secure, confidential online tax service. Click on the heading for more information
The bad news is, Unemployment Income will be taxed, the good news is, the cost for looking for employment, including the cost of your Internet Provider Service is tax deductible, if and when you use your computer to look for work.
There are some stipulations when claiming this deduction, so do your homework. In the meantime, below are tips the IRS would like you to know about reporting your unemployment compensation:
Unemployment compensation generally includes, among other forms, state unemployment compensation benefits, but the tax implications depend on the type of program paying the benefits. You must report unemployment compensation on line 19 of Form 1040, line 13 of Form 1040A, or line 3 of Form 1040EZ.
Here are four tips from the IRS about unemployment benefits.
1. You must include all unemployment compensation you receive in your total income for the year. You should receive a Form 1099-G, with the total unemployment compensation paid to you shown in box 1.
2. Other types of unemployment benefits include:
Benefits paid by a state or the District of Columbia from the Federal Unemployment Trust Fund
Railroad unemployment compensation benefits
Disability payments from a government program paid as a substitute for unemployment compensation
Trade readjustment allowances under the Trade Act of 1974
Unemployment assistance under the Disaster Relief and Emergency Assistance Act
For complete information on each of the benefits listed, see chapter 12 in IRS Publication 17, Your Federal Income Tax, or Publication 525, Taxable and Nontaxable Income.
3. You must report benefits paid to you as an unemployed member of a union from regular union dues. However, if you contribute to a special union fund and your payments to the fund are not deductible, you only need to include in your income the unemployment benefits that exceed the amount of your contributions.
4. You can choose to have federal income tax withheld from your unemployment compensation. To make this choice, complete Form W-4V, Voluntary Withholding Request, and give it to the paying office. Tax will be withheld at 10 percent of your payment. If you choose not to have tax withheld, you may have to make estimated tax payments throughout the year.
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If you need help, filing your return, and would rather NOT leave home, we prepare taxes online. A secure, confidential online tax service. Click on the heading for more information
Tuesday, February 14, 2012
Important Tax Deductions for Medical and Dental Expenses
In order to get the medical deductions, you must itemize your deductions, and you medical expenses must exceed your adjusted gross income (AGI) by 7.5%. What this all means is: You should have your tax professional check to see if you qualify for medical expenses, even if you don't usually itemize. If you are doing your taxes yourself, and your medical cost were extremely high, then you may want to complete the taxes with, and without itemizing, to see which way works best for you. Especially if you have a lot of miles driven, for medical reasons. And have larger deductions that could show up on Schedule A, but you never use because you don't usually itemize.
Below if the information directly from the IRS:
If you, your spouse or dependents had significant medical or dental costs in 2011, you may be able to deduct those expenses when you file your tax return. Here are eight things the IRS wants you to know about medical and dental expenses and other benefits.
1. You must itemize You deduct qualifying medical and dental expenses if you itemize on Form 1040, Schedule A.
2. Deduction is limited You can deduct total medical care expenses that exceed 7.5 percent of your adjusted gross income for the year. You figure this on Form 1040, Schedule A.
3. Expenses must have been paid in 2011 You can include the medical and dental expenses you paid during the year, regardless of when the services were provided. You’ll need to have good receipts or records to substantiate your expenses.
4. You can’t deduct reimbursed expenses Your total medical expenses for the year must be reduced by any reimbursement. Normally, it makes no difference if you receive the reimbursement or if it is paid directly to the doctor or hospital.
5. Whose expenses qualify You may include qualified medical expenses you pay for yourself, your spouse and your dependents. Some exceptions and special rules apply to divorced or separated parents, taxpayers with a multiple support agreement or those with a qualifying relative who is not your child.
6. Types of expenses that qualify You can deduct expenses primarily paid for the diagnosis, cure, mitigation, treatment or prevention of disease, or treatment affecting any structure or function of the body. For drugs, you can only deduct prescription medication and insulin. You can also include premiums for medical, dental and some long-term care insurance in your expenses. Starting in 2011, you can also include lactation supplies.
7. Transportation costs may qualify You may deduct transportation costs primarily for and essential to medical care that qualify as medical expenses. You can deduct the actual fare for a taxi, bus, train, plane or ambulance as well as tolls and parking fees. If you use your car for medical transportation, you can deduct actual out-of-pocket expenses such as gas and oil, or you can deduct the standard mileage rate for medical expenses, which is 19 cents per mile for 2011.
8. Tax-favored saving for medical expenses Distributions from Health Savings Accounts and withdrawals from Flexible Spending Arrangements may be tax free if used to pay qualified medical expenses including prescription medication and insulin.
Don't be afraid to do your taxes both ways, to see how you do. If you do really well, and you want someone to take a look at your numbers, Taxeswilltravel.com will b e happy to do so.
Below if the information directly from the IRS:
If you, your spouse or dependents had significant medical or dental costs in 2011, you may be able to deduct those expenses when you file your tax return. Here are eight things the IRS wants you to know about medical and dental expenses and other benefits.
1. You must itemize You deduct qualifying medical and dental expenses if you itemize on Form 1040, Schedule A.
2. Deduction is limited You can deduct total medical care expenses that exceed 7.5 percent of your adjusted gross income for the year. You figure this on Form 1040, Schedule A.
3. Expenses must have been paid in 2011 You can include the medical and dental expenses you paid during the year, regardless of when the services were provided. You’ll need to have good receipts or records to substantiate your expenses.
4. You can’t deduct reimbursed expenses Your total medical expenses for the year must be reduced by any reimbursement. Normally, it makes no difference if you receive the reimbursement or if it is paid directly to the doctor or hospital.
5. Whose expenses qualify You may include qualified medical expenses you pay for yourself, your spouse and your dependents. Some exceptions and special rules apply to divorced or separated parents, taxpayers with a multiple support agreement or those with a qualifying relative who is not your child.
6. Types of expenses that qualify You can deduct expenses primarily paid for the diagnosis, cure, mitigation, treatment or prevention of disease, or treatment affecting any structure or function of the body. For drugs, you can only deduct prescription medication and insulin. You can also include premiums for medical, dental and some long-term care insurance in your expenses. Starting in 2011, you can also include lactation supplies.
7. Transportation costs may qualify You may deduct transportation costs primarily for and essential to medical care that qualify as medical expenses. You can deduct the actual fare for a taxi, bus, train, plane or ambulance as well as tolls and parking fees. If you use your car for medical transportation, you can deduct actual out-of-pocket expenses such as gas and oil, or you can deduct the standard mileage rate for medical expenses, which is 19 cents per mile for 2011.
8. Tax-favored saving for medical expenses Distributions from Health Savings Accounts and withdrawals from Flexible Spending Arrangements may be tax free if used to pay qualified medical expenses including prescription medication and insulin.
Don't be afraid to do your taxes both ways, to see how you do. If you do really well, and you want someone to take a look at your numbers, Taxeswilltravel.com will b e happy to do so.
Eleven Child Tax Credit Points from the IRS
The Child Tax Credit can actually reduce your tax liability. No, you don't have to run to the bedroom and conceive a child, however, if you already have a child or two, they can help reduce your taxes, when you meet certain requirements.
The Child Tax Credit is available to eligible taxpayers with qualifying children under age 17. The IRS would like you to know these eleven facts about the child tax credit.
1. Amount With the Child Tax Credit, you may be able to reduce your federal income tax by up to $1,000 for each qualifying child under age 17.
2. Qualification A qualifying child for this credit is someone who meets the qualifying criteria of seven tests: age, relationship, support, dependent, joint return, citizenship and residence.
3. Age test To qualify, a child must have been under age 17 – age 16 or younger – at the end of 2011.
4. Relationship test To claim a child for purposes of the Child Tax Credit, the child must be your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister or a descendant of any of these individuals, which includes your grandchild, niece or nephew. An adopted child is always treated as your own child. An adopted child includes a child lawfully placed with you for legal adoption.
5. Support test In order to claim a child for this credit, the child must not have provided more than half of his/her own support.
6. Dependent test You must claim the child as a dependent on your federal tax return.
7. Joint return test The qualifying child can not file a joint return for the year (or files it only as a claim for refund).
8. Citizenship test To meet the citizenship test, the child must be a U.S. citizen, U.S. national or U.S. resident alien.
9. Residence test The child must have lived with you for more than half of 2011. There are some exceptions to the residence test, found in IRS Publication 972, Child Tax Credit.
10. Limitations The credit is limited if your modified adjusted gross income is above a certain amount. The amount at which this phase-out begins varies by filing status. For married taxpayers filing a joint return, the phase-out begins at $110,000. For married taxpayers filing a separate return, it begins at $55,000. For all other taxpayers, the phase-out begins at $75,000. In addition, the Child Tax Credit is generally limited by the amount of the income tax and any alternative minimum tax you owe.
11. Additional Child Tax Credit If the amount of your Child Tax Credit is greater than the amount of income tax you owe, you may be able to claim the Additional Child Tax Credit.
The Child Tax Credit is available to eligible taxpayers with qualifying children under age 17. The IRS would like you to know these eleven facts about the child tax credit.
1. Amount With the Child Tax Credit, you may be able to reduce your federal income tax by up to $1,000 for each qualifying child under age 17.
2. Qualification A qualifying child for this credit is someone who meets the qualifying criteria of seven tests: age, relationship, support, dependent, joint return, citizenship and residence.
3. Age test To qualify, a child must have been under age 17 – age 16 or younger – at the end of 2011.
4. Relationship test To claim a child for purposes of the Child Tax Credit, the child must be your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister or a descendant of any of these individuals, which includes your grandchild, niece or nephew. An adopted child is always treated as your own child. An adopted child includes a child lawfully placed with you for legal adoption.
5. Support test In order to claim a child for this credit, the child must not have provided more than half of his/her own support.
6. Dependent test You must claim the child as a dependent on your federal tax return.
7. Joint return test The qualifying child can not file a joint return for the year (or files it only as a claim for refund).
8. Citizenship test To meet the citizenship test, the child must be a U.S. citizen, U.S. national or U.S. resident alien.
9. Residence test The child must have lived with you for more than half of 2011. There are some exceptions to the residence test, found in IRS Publication 972, Child Tax Credit.
10. Limitations The credit is limited if your modified adjusted gross income is above a certain amount. The amount at which this phase-out begins varies by filing status. For married taxpayers filing a joint return, the phase-out begins at $110,000. For married taxpayers filing a separate return, it begins at $55,000. For all other taxpayers, the phase-out begins at $75,000. In addition, the Child Tax Credit is generally limited by the amount of the income tax and any alternative minimum tax you owe.
11. Additional Child Tax Credit If the amount of your Child Tax Credit is greater than the amount of income tax you owe, you may be able to claim the Additional Child Tax Credit.
Thursday, February 9, 2012
Buying Property With a Judgement Lien - Investment?
Ya, you read it correctly. Sellers are wanting to sell property, which have a judgement or Lien against it, and Investors are buying.
A judgment lien is a court ordered lien that is placed against the home or property when the homeowner simply fails to pay a debt.
The web page and videos at the bottom of the page helps possible investors, understand the procedure of investing in real estate which may have a lien or judgement against it.
It appears that Private Investors are doing well, and are purchasing property at record low prices. Click on the heading to learn more.
A judgment lien is a court ordered lien that is placed against the home or property when the homeowner simply fails to pay a debt.
The web page and videos at the bottom of the page helps possible investors, understand the procedure of investing in real estate which may have a lien or judgement against it.
It appears that Private Investors are doing well, and are purchasing property at record low prices. Click on the heading to learn more.
Investments in Brazil Tourism? Property Values Increasing
Brazil Tourism Investment - Brazil Real Estate Development
According to TV reports, research and Investment Researchers, the property value in Brazil is increasing rapidly. There are more US being invested by US citizens into the global real estate markets around the world. And Brazil appears to be one of the hot markets.
Click on the link to learn more about the construction delays and the construction real estate boom in Brazil.
The last video on the page show a condo construction project that is worth viewing. People are living large in Brazil, construction is modern and accommodating.
According to TV reports, research and Investment Researchers, the property value in Brazil is increasing rapidly. There are more US being invested by US citizens into the global real estate markets around the world. And Brazil appears to be one of the hot markets.
Click on the link to learn more about the construction delays and the construction real estate boom in Brazil.
The last video on the page show a condo construction project that is worth viewing. People are living large in Brazil, construction is modern and accommodating.
New Tax Law Changes for 2011 Taxes
Due date of return. File your federal tax return by April 17, 2012. The due date is April 17, instead of April 15, because April 15 is a Sunday and April 16 is the Emancipation Day holiday in the District of Columbia.
New forms. In most cases, you must report your capital gains and losses on the new Form 8949, Sales and Other Dispositions of Capital Assets. Then, you report certain totals from that form on Schedule D (Form 1040). If you had foreign financial assets in 2011, you may have to file the new Form 8938, Statement of Foreign Financial Assets, with your return.
Standard mileage rates. The 2011 rates for mileage are different for January 1 through June 30 than for July 1 through December 31. For business use of your car, you can deduct 51 cents a mile for miles driven the first half of the year and 55 ½ cents for the second half. Medical and moving mileage are both 19 cents per mile for the early half of the year and 23 ½ cents in the latter half.
Standard deduction and exemptions increased.
The standard deduction increased for some taxpayers who do not itemize deductions on IRS Schedule A (Form 1040). The amount depends on your filing status.
The amount you can deduct for each exemption has increased $50 to $3,700 for 2011.
Self-employed health insurance deduction. This deduction is no longer allowed on Schedule SE (Form 1040), but you can still take it on Form 1040, line 29.
Alternative minimum tax (AMT) exemption amount increased. The AMT exemption amount has increased to $48,450 ($74,450 if married filing jointly or a qualifying widow(er); $37,225 if married filing separately).
Health savings accounts (HSAs) and Archer MSAs. The additional tax on distributions from HSAs and Archer MSAs not used for qualified medical expenses increased to 20 percent. Beginning in 2011, only prescribed drugs or insulin are qualified medical expenses.
Roth IRAs. If you converted or rolled over an amount from a traditional IRA to a Roth IRA or designated Roth in 2010 and did not elect to report the taxable amount on your 2010 return, you generally must report half of it on your 2011 return and the rest on your 2012 return.
Alternative motor vehicle credit. You can claim the alternative motor vehicle credit for a 2011 purchase only if the vehicle is a new fuel cell motor vehicle.
First-time homebuyer credit. The credit expired for most taxpayers for 2011. Some military personnel and members of the intelligence community can still claim the credit in 2011 for qualified purchases.
Health coverage tax credit. Recent legislation changed the amount of this credit, which pays qualified health insurance premiums for eligible individuals and their families. Participants who received the 65 percent tax credit in any month from March to December 2011 may claim an additional 7.5 percent retroactive credit when they file their 2011 tax return.
New forms. In most cases, you must report your capital gains and losses on the new Form 8949, Sales and Other Dispositions of Capital Assets. Then, you report certain totals from that form on Schedule D (Form 1040). If you had foreign financial assets in 2011, you may have to file the new Form 8938, Statement of Foreign Financial Assets, with your return.
Standard mileage rates. The 2011 rates for mileage are different for January 1 through June 30 than for July 1 through December 31. For business use of your car, you can deduct 51 cents a mile for miles driven the first half of the year and 55 ½ cents for the second half. Medical and moving mileage are both 19 cents per mile for the early half of the year and 23 ½ cents in the latter half.
Standard deduction and exemptions increased.
The standard deduction increased for some taxpayers who do not itemize deductions on IRS Schedule A (Form 1040). The amount depends on your filing status.
The amount you can deduct for each exemption has increased $50 to $3,700 for 2011.
Self-employed health insurance deduction. This deduction is no longer allowed on Schedule SE (Form 1040), but you can still take it on Form 1040, line 29.
Alternative minimum tax (AMT) exemption amount increased. The AMT exemption amount has increased to $48,450 ($74,450 if married filing jointly or a qualifying widow(er); $37,225 if married filing separately).
Health savings accounts (HSAs) and Archer MSAs. The additional tax on distributions from HSAs and Archer MSAs not used for qualified medical expenses increased to 20 percent. Beginning in 2011, only prescribed drugs or insulin are qualified medical expenses.
Roth IRAs. If you converted or rolled over an amount from a traditional IRA to a Roth IRA or designated Roth in 2010 and did not elect to report the taxable amount on your 2010 return, you generally must report half of it on your 2011 return and the rest on your 2012 return.
Alternative motor vehicle credit. You can claim the alternative motor vehicle credit for a 2011 purchase only if the vehicle is a new fuel cell motor vehicle.
First-time homebuyer credit. The credit expired for most taxpayers for 2011. Some military personnel and members of the intelligence community can still claim the credit in 2011 for qualified purchases.
Health coverage tax credit. Recent legislation changed the amount of this credit, which pays qualified health insurance premiums for eligible individuals and their families. Participants who received the 65 percent tax credit in any month from March to December 2011 may claim an additional 7.5 percent retroactive credit when they file their 2011 tax return.
Wednesday, February 8, 2012
Where IS My Refund?
Just hold on. It's coming.
Click on the heading to view an IRS video on Tax Refunds.
Below is a summary from the IRS on the subject:
The Internal Revenue Service reminds taxpayers to keep in mind that many variables can affect the speed of a tax refund. Using e-file with direct deposit remains the fastest option for taxpayers.
Following technology improvements, the IRS will issue refunds to more taxpayers in as few as 10 days this year for those who e-file and select direct deposit. Overall, the IRS issues the vast majority (more than 9 out of 10) of all refunds — whether filed electronically or on paper — in 21 days or less.
Although refund speed will generally increase overall, the IRS emphasizes these are “best-case scenarios,” where tax returns are filed accurately and no corrections or review are required.
In addition, the IRS also cautions taxpayers it is increasing scrutiny of tax returns for signs of fraud. This means some tax refunds will face additional screening and review before being released, which will add time before the refund is delivered.
There are some simple ways for people to help ensure they receive their refund quickly.
E-file remains the best way to ensure an error-free return.
Taxpayers can help ensure their refund arrives as expected by submitting an error free return. Use the correct Social Security number or taxpayer identification number, the correct address, and the correct bank and routing number if electing direct deposit.
You don’t need to wait on the phone to check on the status of your refund. The fastest and best way to get information on your refund is through the “Where's My Refund?” tool on IRS.gov and the IRS2Go phone app. Information about refund status is available about three days after the IRS acknowledges receipt of your e-filed return, or four weeks after mailing a paper return.
The free IRS2Go application is available at the Apple App Store and the Android Marketplace.
When checking the status of your refund through these IRS online tools, you will need to have your federal tax return handy. To get your personalized refund information you must enter the following information on the safe and secure IRS.gov website or phone app:
Your Social Security Number or Individual Taxpayer Identification Number;
Your filing status, which will be Single, Married Filing Joint Return, Married Filing Separate Return, Head of Household or Qualifying Widow(er); and
Exact whole dollar refund amount shown on your tax return.
Note from Tax Professional: You cannot e-file a return unless it is error free. e-Filing is the best way to file your tax return. Error free does not mean that if income is not reported that should be reported that you have gotten away with something. It just means, the return is error free, based on the information you provided.
The IRS will certainly send you a CP-2000 (paper audit) in the very near future, to inquire about income which was not reported on the tax return.
Click on the heading to view an IRS video on Tax Refunds.
Below is a summary from the IRS on the subject:
The Internal Revenue Service reminds taxpayers to keep in mind that many variables can affect the speed of a tax refund. Using e-file with direct deposit remains the fastest option for taxpayers.
Following technology improvements, the IRS will issue refunds to more taxpayers in as few as 10 days this year for those who e-file and select direct deposit. Overall, the IRS issues the vast majority (more than 9 out of 10) of all refunds — whether filed electronically or on paper — in 21 days or less.
Although refund speed will generally increase overall, the IRS emphasizes these are “best-case scenarios,” where tax returns are filed accurately and no corrections or review are required.
In addition, the IRS also cautions taxpayers it is increasing scrutiny of tax returns for signs of fraud. This means some tax refunds will face additional screening and review before being released, which will add time before the refund is delivered.
There are some simple ways for people to help ensure they receive their refund quickly.
E-file remains the best way to ensure an error-free return.
Taxpayers can help ensure their refund arrives as expected by submitting an error free return. Use the correct Social Security number or taxpayer identification number, the correct address, and the correct bank and routing number if electing direct deposit.
You don’t need to wait on the phone to check on the status of your refund. The fastest and best way to get information on your refund is through the “Where's My Refund?” tool on IRS.gov and the IRS2Go phone app. Information about refund status is available about three days after the IRS acknowledges receipt of your e-filed return, or four weeks after mailing a paper return.
The free IRS2Go application is available at the Apple App Store and the Android Marketplace.
When checking the status of your refund through these IRS online tools, you will need to have your federal tax return handy. To get your personalized refund information you must enter the following information on the safe and secure IRS.gov website or phone app:
Your Social Security Number or Individual Taxpayer Identification Number;
Your filing status, which will be Single, Married Filing Joint Return, Married Filing Separate Return, Head of Household or Qualifying Widow(er); and
Exact whole dollar refund amount shown on your tax return.
Note from Tax Professional: You cannot e-file a return unless it is error free. e-Filing is the best way to file your tax return. Error free does not mean that if income is not reported that should be reported that you have gotten away with something. It just means, the return is error free, based on the information you provided.
The IRS will certainly send you a CP-2000 (paper audit) in the very near future, to inquire about income which was not reported on the tax return.
Six Way To Know If Your Social Security Is Taxable
1. How much – if any – of your Social Security benefits are taxable depends on your total income and marital status.
2. Generally, if Social Security benefits were your only income for 2011, your benefits are not taxable and you probably do not need to file a federal income tax return.
3. If you received income from other sources, your benefits will not be taxed unless your modified adjusted gross income is more than the base amount for your filing status (see below).
4. Your taxable benefits and modified adjusted gross income are figured on a worksheet in the Form 1040A or Form 1040 Instruction booklet. Your tax software program will also figure this for you.
5. You can do the following quick computation to determine whether some of your benefits may be taxable:
First, add one-half of the total Social Security benefits you received to all your other income, including any tax-exempt interest and other exclusions from income.
Then, compare this total to the base amount for your filing status. If the total is more than your base amount, some of your benefits may be taxable.
6. The 2011 base amounts are:
$32,000 for married couples filing jointly.
$25,000 for single, head of household, qualifying widow/widower with a dependent child, or married individuals filing separately who did not live with their spouse at any time during the year.
$0 for married persons filing separately who lived together during the year.
For additional information on the taxability of Social Security benefits, see IRS Publication 915, Social Security and Equivalent Railroad Retirement Benefits. You can get a copy of Publication 915 at www.irs.gov or by calling 800-TAX-FORM (800-829-3676).
Click on the heading and view the IRS video to find out if you owe taxes on your social security.
If you need help with your tax returns, no need to leave your home, http://taxeswilltravel.com
2. Generally, if Social Security benefits were your only income for 2011, your benefits are not taxable and you probably do not need to file a federal income tax return.
3. If you received income from other sources, your benefits will not be taxed unless your modified adjusted gross income is more than the base amount for your filing status (see below).
4. Your taxable benefits and modified adjusted gross income are figured on a worksheet in the Form 1040A or Form 1040 Instruction booklet. Your tax software program will also figure this for you.
5. You can do the following quick computation to determine whether some of your benefits may be taxable:
First, add one-half of the total Social Security benefits you received to all your other income, including any tax-exempt interest and other exclusions from income.
Then, compare this total to the base amount for your filing status. If the total is more than your base amount, some of your benefits may be taxable.
6. The 2011 base amounts are:
$32,000 for married couples filing jointly.
$25,000 for single, head of household, qualifying widow/widower with a dependent child, or married individuals filing separately who did not live with their spouse at any time during the year.
$0 for married persons filing separately who lived together during the year.
For additional information on the taxability of Social Security benefits, see IRS Publication 915, Social Security and Equivalent Railroad Retirement Benefits. You can get a copy of Publication 915 at www.irs.gov or by calling 800-TAX-FORM (800-829-3676).
Click on the heading and view the IRS video to find out if you owe taxes on your social security.
If you need help with your tax returns, no need to leave your home, http://taxeswilltravel.com
Tuesday, February 7, 2012
IRS List of Income Which IS NOT Taxable
Yes, the title of this post is correct. There are certain incomes which ARE NOT taxable. Read below the 411 the IRS sent out.
The IRS offers the following list of items that do not have to be included as taxable income:
Adoption expense reimbursements for qualifying expenses
Child support payments
Gifts, bequests and inheritances
Workers' compensation benefits (some exceptions may apply; see Publication 525, Taxable and Nontaxable Income)
Meals and lodging for the convenience of your employer
Compensatory damages awarded for physical injury or physical sickness
Welfare benefits
Cash rebates from a dealer or manufacturer
The IRS offers the following list of items that do not have to be included as taxable income:
Adoption expense reimbursements for qualifying expenses
Child support payments
Gifts, bequests and inheritances
Workers' compensation benefits (some exceptions may apply; see Publication 525, Taxable and Nontaxable Income)
Meals and lodging for the convenience of your employer
Compensatory damages awarded for physical injury or physical sickness
Welfare benefits
Cash rebates from a dealer or manufacturer
Friday, February 3, 2012
Tax Accountant Missing in SEO Maze
Tax Accountant Missing in SEO Maze
It all started in the late nineties. I wanted to retire out of pre-school ownership and then, 4 years of substitute teaching, at pre-school level in a public school district. I had had enough. The rules, policies, procedures and politics were putting a damper on my creative abilities.
I need to be able to operate from both sides of my brain, yet still earn a living.
I ended up doing taxes and later established myself by accepting a position for 3 different tax years with a couple major retail tax stores. I am happy to report that my students, both the pre-schoolers and tax students are doing well and making great progress. (That how I judge my accomplishments, by my student’s success.)
Taxes have been good to me. In fact, taxes have brought me through the shadow of darkness and woke me up to new information on a national and international level. Taxes has show me how a poor man becomes wealthy and how a wealthy man becomes even wealthier.
Taxes have show me the light, even when greed was in full swing and money was flowing like water. (Those days appear to be over for many, but not all) In an effort to share in the wealth, I decided to provide a last minute online tax service, base only on the needs of tax payers who had forgot to file their taxes.
Good idea, except the ability to follow included the enormous cost of getting the web site indexed in the search engines and then getting the word out about the site. Still a good idea, except, one component was missing. I needed my site to be able to talk to the search engines in order to become more popular.
In the beginning, I paid so called SEO experts to help me get my site to a popular position. Out of all the monies that I scrapped and spent on getting my project up and running, not one SEO person bothered to tell me the total truth about my site, my SEO limitations or anything else that really matter when it came to SEO.
I had made the basic mistake of naming my site: taxeswilltravel.com ----- cute name. Ya right. Problem was, back in 1999, the search engine couldn’t tell if my site was a tax site or a travel site.
This confusion went on until 2005, when I finally decided to spend my hard earned money, from my part-time job, on becoming a certified Internet Marketing person. (Little good that did, the SEO rules change almost every month) But the difference is, like taxes, you have to keep up with the changes in the search engine’s policy AND doors that were not open to you before, begin to open up.
It was and is the information, training, and experience which separates, the successful from those who are struggling. Not color, origin or gender. Color origin and gender may determine where you work, or how you apply the knowledge, but the opportunities are the same when you place information, training and experience in the picture. (Yes, correct training can be expensive, but so is ignorance)
The secret ingredient is motivation. And many poor people get robbed of their motivation, and so do small business owners. It was clear SEO (search engine optimization) would be my new career, because once a small business owner is robbed of his or her motivation to present themselves well, online, they are destine for decline.
When I came in contact with a man who operates an entire plumbing service, online, I realized that when residents go to the Internet when there is a plumbing problem, they will go to the Internet for almost any problem. And when I placed a link on one of my web sites from an online therapist, who offers an eight week workshop for depression, online, my suspicions were confirmed.
When people have a problem, a need, a desire, a fear or concern, they often times turn to the Internet. Over 80% of web surfers window shop online before actually visiting a local store, and making a purchase. One of the biggest secrets, Google hasn’t revealed to the American public is that content is king on the Internet, but video is moving up, and could soon match the power of written words. (Plus a lot of people don’t really understand that Google owns YouTube as well!)
SEO is the art, or science of your site communicating with the search engines. That’s what I do. I graduated from DeVry Institute, Chicago, before SEO was born. Returning to the online classes to learn the new ways of Online Marketing is what I do almost every morning.
It all started in the late nineties. I wanted to retire out of pre-school ownership and then, 4 years of substitute teaching, at pre-school level in a public school district. I had had enough. The rules, policies, procedures and politics were putting a damper on my creative abilities.
I need to be able to operate from both sides of my brain, yet still earn a living.
I ended up doing taxes and later established myself by accepting a position for 3 different tax years with a couple major retail tax stores. I am happy to report that my students, both the pre-schoolers and tax students are doing well and making great progress. (That how I judge my accomplishments, by my student’s success.)
Taxes have been good to me. In fact, taxes have brought me through the shadow of darkness and woke me up to new information on a national and international level. Taxes has show me how a poor man becomes wealthy and how a wealthy man becomes even wealthier.
Taxes have show me the light, even when greed was in full swing and money was flowing like water. (Those days appear to be over for many, but not all) In an effort to share in the wealth, I decided to provide a last minute online tax service, base only on the needs of tax payers who had forgot to file their taxes.
Good idea, except the ability to follow included the enormous cost of getting the web site indexed in the search engines and then getting the word out about the site. Still a good idea, except, one component was missing. I needed my site to be able to talk to the search engines in order to become more popular.
In the beginning, I paid so called SEO experts to help me get my site to a popular position. Out of all the monies that I scrapped and spent on getting my project up and running, not one SEO person bothered to tell me the total truth about my site, my SEO limitations or anything else that really matter when it came to SEO.
I had made the basic mistake of naming my site: taxeswilltravel.com ----- cute name. Ya right. Problem was, back in 1999, the search engine couldn’t tell if my site was a tax site or a travel site.
This confusion went on until 2005, when I finally decided to spend my hard earned money, from my part-time job, on becoming a certified Internet Marketing person. (Little good that did, the SEO rules change almost every month) But the difference is, like taxes, you have to keep up with the changes in the search engine’s policy AND doors that were not open to you before, begin to open up.
It was and is the information, training, and experience which separates, the successful from those who are struggling. Not color, origin or gender. Color origin and gender may determine where you work, or how you apply the knowledge, but the opportunities are the same when you place information, training and experience in the picture. (Yes, correct training can be expensive, but so is ignorance)
The secret ingredient is motivation. And many poor people get robbed of their motivation, and so do small business owners. It was clear SEO (search engine optimization) would be my new career, because once a small business owner is robbed of his or her motivation to present themselves well, online, they are destine for decline.
When I came in contact with a man who operates an entire plumbing service, online, I realized that when residents go to the Internet when there is a plumbing problem, they will go to the Internet for almost any problem. And when I placed a link on one of my web sites from an online therapist, who offers an eight week workshop for depression, online, my suspicions were confirmed.
When people have a problem, a need, a desire, a fear or concern, they often times turn to the Internet. Over 80% of web surfers window shop online before actually visiting a local store, and making a purchase. One of the biggest secrets, Google hasn’t revealed to the American public is that content is king on the Internet, but video is moving up, and could soon match the power of written words. (Plus a lot of people don’t really understand that Google owns YouTube as well!)
SEO is the art, or science of your site communicating with the search engines. That’s what I do. I graduated from DeVry Institute, Chicago, before SEO was born. Returning to the online classes to learn the new ways of Online Marketing is what I do almost every morning.
IRS Tips: What to Do If You Are Recently Married or Divorced
If you recently got married or divorce, you may have had a name change. The IRS keeps sending notices, to make sure taxpayers understand, how the name change procedure works.
Your social security number MUST match your name, or the name on your tax return. Any deviation between the name on the tax return and the SSA records can cause a serious delay in the processing of the tax return. It surely will delay your refund.
The IRS list five ways you can handle the name change issue:
--------------------
1. f you took your spouse’s last name -- or if you hyphenated your last names, you may run into complications if you don’t notify the SSA. When newlyweds file a tax return using their new last names, IRS computers can’t match the new name with their Social Security number.
2. If you recently divorced and changed back to your previous last name, you’ll also need to notify the SSA of this name change.
I3. Informing the SSA of a name change is easy. Simply file a Form SS-5, Application for a Social Security Card, at your local SSA office or by mail and provide a recently issued document as proof of your legal name change.
4. Form SS-5 is available on SSA’s website at http://www.socialsecurity.gov/, by calling 800-772-1213 or at local offices. Your new card will have the same number as your previous card, but will show your new name.
5. If you adopted your spouse’s children after getting married and their names changed, you'll need to update their names with SSA too. For adopted children without SSNs, the parents can apply for an Adoption Taxpayer Identification Number – or ATIN – by filing Form W-7A, Application for Taxpayer Identification Number for Pending U.S. Adoptions with the IRS. The ATIN is a temporary number used in place of an SSN on the tax return. Form W-7A is available on the IRS.gov website or by calling 800-TAX-FORM (800-829-3676).
---------------------------
Note: Because these agencies can become overwhelmed with work, it may be best to file an extension (October 15) and make sure the changes have taken place. If it is the refund you are after, be sure to check with the SSA on how long before the change will be effective.
Your social security number MUST match your name, or the name on your tax return. Any deviation between the name on the tax return and the SSA records can cause a serious delay in the processing of the tax return. It surely will delay your refund.
The IRS list five ways you can handle the name change issue:
--------------------
1. f you took your spouse’s last name -- or if you hyphenated your last names, you may run into complications if you don’t notify the SSA. When newlyweds file a tax return using their new last names, IRS computers can’t match the new name with their Social Security number.
2. If you recently divorced and changed back to your previous last name, you’ll also need to notify the SSA of this name change.
I3. Informing the SSA of a name change is easy. Simply file a Form SS-5, Application for a Social Security Card, at your local SSA office or by mail and provide a recently issued document as proof of your legal name change.
4. Form SS-5 is available on SSA’s website at http://www.socialsecurity.gov/, by calling 800-772-1213 or at local offices. Your new card will have the same number as your previous card, but will show your new name.
5. If you adopted your spouse’s children after getting married and their names changed, you'll need to update their names with SSA too. For adopted children without SSNs, the parents can apply for an Adoption Taxpayer Identification Number – or ATIN – by filing Form W-7A, Application for Taxpayer Identification Number for Pending U.S. Adoptions with the IRS. The ATIN is a temporary number used in place of an SSN on the tax return. Form W-7A is available on the IRS.gov website or by calling 800-TAX-FORM (800-829-3676).
---------------------------
Note: Because these agencies can become overwhelmed with work, it may be best to file an extension (October 15) and make sure the changes have taken place. If it is the refund you are after, be sure to check with the SSA on how long before the change will be effective.
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