Tax Carnival Ecstasy – March 27, 2012

Welcome to the March 27, 2012 edition of Tax Carnival Ecstasy. We start this edition with Stefanie who has an article Tax Time, and how she is loving TurboTax while filing her own return. Mark Roberts takes a look at the The Tax Brackets for 2012. We  have a post on the Common Bookkeeping Mistakes That Weigh Down On Business Profits by Bill Smith. And finally there’s a look at the 2013 Federal Budge and how it affects your taxes. Hope you enjoy the articles, bookmark, share, tweet, like on Facebook and come back soon.

Frank Goley presents Bond Analysis posted at Easy Forex News.

Amy Gardner presents What is a Personal Loan? | Personal Loans posted at Personal Loans, saying, “none

credits

Amy Gardner presents Little Known Advice for Those Seeking a Personal Loan posted at Small Business Credit Cards, saying, “none

Deborah Brown presents Credit Options for Your First Credit Card | First Credit Card | How to build credit with first time credit cards. posted at First Credit Card, saying, “none

Sandra Adams presents Improving Your Credit Score posted at Credit Cards for No Credit, saying, “none

filing

Stefanie presents Tax Time | Making of a Mom posted at Making of a Mom, saying, “I love tax time because TurboTax makes it possible for normal people (not tax professionals) to complete their own taxes!”

Mark Roberts presents The Tax Brackets for 2012 posted at Tax Brackets, saying, “The tax brackets for 2012 have been announced. This post highlights the new brackets for 2012.”

retirement

David K presents Baby Boomers are you Worried about having enough saved for retirement? posted at Personal Finance Blog, saying, “Here’s a simple approach: work just a few years longer. By accumulating more savings and shortening your withdrawal period, you’ll reduce the lump sum needed to generate the necessary income at retirement.”

Dividend Growth Investor presents Does entry price matter to dividend investors? posted at Dividend Growth Investor, saying, “The reason for the lost decade in stocks is that many otherwise quality companies were overvalued in the early 2000s. For example Johnson & Johnson (JNJ) was trading at 29.30 times earnings in early 2000, whereas McDonald’s (MCD) traded at 26.90 times earnings. Even some of the best dividend stocks are not worth paying more than 20 times forward earnings.”

taxes

Bill Smith presents Common Bookkeeping Mistakes That Weigh Down On Business Profits posted at 2009 Tax, saying, “Bookkeeping serves as a foundation for sound financial decision making and planning and therefore it is essential that financial records are kept up-to-date.”

Bill Smith presents 2012 Taxes And The Proposed 2013 Budget posted at2011 Taxes, saying, “President Obama has plans to make changes in the tax code to raise funds for his 2013 budget to jump start the U.S. hiring.”

Bill Smith presents Proposed Changes From 2012 Taxes posted at2010Taxes, saying, “The current administration’s proposed budget for 2013 includes some items from 2012 taxes with a wish list of ideas added.”

Bill Smith presents 2012 Taxes And The Proposed Tax Rates posted at 2011 Taxes, saying, “President Obama is planning to tax income from capital gains as ordinary income. This will increase the top tax rate to 39.6 percent.”

CultOfMoney presents How government budgets work posted at CultOfMoney, saying, “Whether you’re trying to get a sweet-ass government job, planning to run for office, want to know how you can influence the process to your favor, or you’re just a concerned citizen, knowing how the federal state, county, and cities create a government budget, and knowing how government budgets work in general will help you. So become involved and go to a local budget hearing, and after reading this article, you’ll sound like someone in the know whose opinions should be respected.”

tips

DeWitt Dudley presents What Are The Best Trust Structures To Protect Liquid Assets? | Law Offices of Givner & Kaye posted at Law Offices of Givner & Kaye, saying, “Why is the non-U.S. trust so effective? Because the both the trust and the assets are not subject to the jurisdiction of a judge in the United States.”

Sean presents Student Car Loans posted at My Next College, saying, “Students still must have adequate income to afford the payment and insurance.”

That concludes this edition. Submit your blog article to the next edition of tax carnival ecstasy using our carnival submission form. Past posts and future hosts can be found on our blog carnival index page.

 

Technorati tags: tax carnival ecstasy, blog carnival.

What is the Federal Fresh Start Program?

The IRS created The Fresh Start program in early 2011 to help aid struggling taxpayers. They expanded the program in early 2012 to provide even more relief for people who are mired in tax debt. Here are the relief programs offered under the original and the new Federal Fresh Start Program.

Penalty Breaks

Taxpayers who were unemployed for at least a month in 2011 or before April 17, 2012 are exempt from failure-to-pay-penalties as long as they pay their taxes before the federal deadline. Additionally, taxpayers who qualify for this program can get a six-month extension before their taxes are due. The 2012 due date for the extension is October 15. This program is also available to anyone who is self-employed and experienced more than a 25% reduction in income.

Payment Agreements

If you cannot pay your entire tax bill before the federal deadline, you may qualify for an installment agreement that allows you to set-up a payment plan with the IRS. The only conditions are that you can own no more than $50,000 in taxes and you have to allow the IRS to withdraw money from your bank account every month. The penalties are for doing this are lower now, although you will accrue interest. Small businesses are also eligible for an installment agreement if they owe less than $50,000 dollars or they can lower their debt to under the $50,000 threshold.

Offer in Compromise (OIC)

You may actually be able to pay back less tax than you owe under the Fresh Start Program. The IRS determines OIC eligibility based on your income and personal assets. If the IRS feels you can pay your debt in full or with an installment agreement, you will not be eligible for the tax reduction.

Tax Liens

If you do not pay your taxes, the IRS can put a lien on all the property you own. Starting in 2011, the IRS raised the dollar amount of taxes you owe before the file a lien. They also streamlined the lien withdraw process internally so that if you do encounter this problem, you can get the lien withdrawn quicker after you settle your debt. Additionally, if the IRS does put a lien on your property, you can have it removed it you enter into a payment agreement.

Believe it or not, the IRS is not out to get you. If you are having trouble paying your taxes, visit irs.gov. The IRS website is home to volumes of advice on how to deal with your tax problems including the forms you need and even a series of eight YouTube videos on how the IRS handles collection efforts. Do not wait until it is too late, visit the IRS website today and see what kind of help you qualify for.

About the Author: Julio Pasco is a personal consultant who helps his clients with budgeting and day to day tasks. He spends a lot of time looking for discount and coupons for area attractions so that his clients can learn to save while still enjoying life.

Knowing the tax debt solution secrets that your attorney may not disclose

As an increasingly large number of taxpayers in the US are defaulting on their tax payments, they found out that owing money to Uncle Sam can become a significant problem in the long run. For all those people who fall in the low income bracket, tax debt can be easily avoided but if they do, it should be dealt with quickly and smartly. The problem of unpaid tax debt can soon spiral out of control if not addressed properly through the debt solutions that are available for the debtors. While you may get help from a tax attorney during the tax debt negotiation process, you can also take some DIY steps to avoid being charged unnecessary fees and charges. However, there are some secrets that your tax attorney may not want you to know. Read on to know the tax debt relief secrets that can open your eyes and prevent you from paying the tax lawyer to do work that you can do yourself.

The data entry clerks work on the debtor’s delinquent tax case

When a person is drowning in a sea of IRS tax debt and is also receiving harassing debt collection calls, he becomes desperate about paying back the money by getting help of a tax attorney. They think that negotiating delinquent taxes is beyond their ability but the actual fact is that this work is done by the data entry clerks and not by their tax lawyers. That only a tax attorney can resolve tax issues is a wrong notion that most tax debtors harbor. No one will inform you that majority of the paperwork is prepared by the data entry clerks and the so-called ‘tax lawyers’ simply type the data into the IRS form.

The fees charged are based on how much you can pay and how urgent is your case

You may not be aware of this but the fees that your tax attorney charges you are entirely based on the amount that you can pay and the extent of urgency of your tax delinquency case. Your case may be termed as ‘urgent’ if you’re presently facing tax garnishment of your paycheck or have got a verbal threat from an IRS agent. So, only when you’re under the tax levy, your tax attorney will charge you sky-high fees and even demand upfront payment. So, if you want to avoid them, try out the tax debt solutions like OIC or Offer in Compromise on your own.

A tax attorney hardly spends an hour working on your case

When you’re looking for debt relief options to exterminate your IRS tax debt, you should take wise decisions so that wrong steps don’t dig you further into the debt hole when you’re already defaulting. Most debtors can never talk to the actual attorney because this may take double time than what they spend for your case. If you give a glance at the Offer in Compromise paperwork, you’ll understand. The seemingly-complex forms only contain data about your car payments, electricity bills and address, which is the exact information that you provided to the tax debt firm. Do you need a tax lawyer for the data-entry work? Bet you wouldn’t, that too in lieu of heavy charges!

Therefore, when you missed your IRS tax payments and have amassed a huge amount to be paid at once, negotiate with the IRS representatives on your own. Look for worthy tax debt solutions and take the steps on your own to avoid being subject to outrageously high fees from the tax attorneys.

Apple Keeps Cash Overseas Because Of High Taxes At Home

Due to high taxes, Apple plans to continue holding its cash overseas, company says

Apple will in the next three years spend around $45 billion as part of a program launched on Monday that will see shareholders get the first dividend since 1995.

However, that money will not come from the $64 billion held by the company in foreign countries. This is because the government charges a very high tax rate for repatriating money.

Peter Oppenheimer told analysts and investors during the Monday conference that the company does not want to incur the cost of repatriating foreign cash at the moment.

Apple together with other tech giants like Microsoft and Google hold more than $1 trillion in foreign countries are pushing for a tax holiday.

There have been heated debates on the hill regarding the issue. Kevin Brady, a Republican from Texas is the main sponsor of a bill which has 109 co-sponsors. Critics say that giving tax breaks to companies with overseas operations is like rewarding the rich for not paying their taxes.

Initially, the Obama administration supported the proposal. However, his tax reform blueprint launched last month is totally against the idea.

While Apple does not usually discuss such matters in public, Monday’s conference was specifically meant to get the message across to Congress.

Oppenheimer claimed that corporate tax of 35 percent paid by companies when bringing foreign earnings home was an economic disincentive.

Oppenheimer further said that the company has already expressed its view to the Obama administration and Congress.

Simple Tips To Help You Save On Taxes At Work

If you want to reduce the amount of tax you pay, you should let your employer cover some of your expenses.

By simply allowing your employer to cover your expenses with pre-tax dollars, you will be able to save hundreds and sometimes even thousands of dollars annually.

The best way to save on taxes.

Make arrangements with your employer to pay for some of your expenses every month. Ask you employer to pay for an expense straight up. Any employer will do this because, a) Its a wonderful thing to do, and b) The expense will be a deductible expense which can be deducted when calculating taxes.
Case  Study
Pretax Expenses

Assuming your income tax bracket is 25 percent and you pay a monthly rail pass of 100 dollars out of your after tax dollars. This means that your income was 133.33 dollars but 33.33 dollars was deducted as taxes before you could put your hands on it and the remaining 100 dollars is what you withdrew from the bank account for your monthly rail pass.

If you asked your employer to pay for your monthly rail pass using pretax dollars, only 100 dollars of your income will be used. This means that you will save 33.33 dollars every month or 400 dollars annually.

All you have to do to save on taxes is to identify expenses that your employer can pay for you using pretax dollars and contact human resources to see how the company can help you.