Stop Tax Procrastination - Discover 10 Tax Tips to Help Small Businesses

By: Ron Finkelstein

Preparing taxes seems complicated but this guide to tax deductions will go a long way in clearing a lot of confusion and putting things in perspective. So if you are among those who procrastinate endlessly to prepare a tax return for your small business, take a look at the guide and it you'll find that it isn't so bad after all... you might just find the energy and drive to get your papers ready in time!

Clear the Calendar: Lack of time is the largest contributor for procrastination. After examining your schedule, select one day dedicated to filing your taxes. If this requires closing the business or filling in with additional employees on that day, just do it.

Use a Bookkeeper: If the work involved in filing your taxes seems overwhelming, you may want to consider hiring a bookkeeper. They can assist you in organizing your specific business concerns, making April taxes seems less daunting.

Take a Trip to the Spa: An overlooked way to increase productivity is to reward yourself when you accomplish a tough task. Rewards to consider might include a day at the spa, a massage, a family outing, or any other reasonable thing that will help motivate you.

Buy a tax program: like Taxcut or TurboTax. These programs make tax preparation easier, and perform all the tasks to make it a less cumbersome process.

Track down a good Accounting Professional: When your business starts to grow, there will be an increase in your income and you will have to face many complications. An accounting professional will be able to help you in overcoming annoying experiences and expensive mistakes. Another advantage of hiring such a specialist is that he can help you with other issues, like providing strategies for managing your cash and giving other practical business and tax tips.

Pay Yourself First: How valuable are YOU to the company? To determine your hourly pay, add your profits for the fiscal year and divide by hours you worked. Next, calculate your tax refund divided by the hours required to complete the return. If your hourly pay matches or is greater than this amount, then you should have plenty of motivation to begin tax return preparations.

Ask for an extension: Most heads of small firms don't have any spare time. However, putting off filing can bog you down in guilt, so that you don't really derive much benefit from putting potential filing time into other company business. Consider asking the IRS for an extension.

Take a Tax Preparation Class: One of the main reasons people delay is because they are uncertain about the requirements. A one-day course in tax preparation for small businesses will help you feel less inhibited and more confident. The IRS itself and various partner organizations offer free online workshops to fit this need. Topics covered include revenue, expenses, filing electronically, employment taxes, keeping records, and various other topics of interest.

Time for a CFO?: As the company grows, so do its financial matters. There comes a time when a staff accountant may no longer be enough for the company. The company's management team may be spending a great deal of time making financial decisions, taking away from their other duties. Or the company, in its quest for additional growth, may desire to offer public stock or raise additional capital. At this point you may want to consider hiring a CFO.

Slow at First: Think in terms of baby steps. Think back to the start-up of the company. If you had known every task necessary to begin the business, you probably wouldn't have considered starting it. So, think small steps. Start with an easy task like organizing files and then go on in small steps.

People never have fun when they have to sit down to file taxes. When you put this tax off, however, you end up with more stress than you would have completing your tax return. Get rid of all of that extra stress. Don't procrastinate any longer. Get rid of all the stress before April so that you can relax.

Ron Finkelstein is NOT a Tax Attorney or an accountant. He is merely a small business owner who has learned a whole lot about The Most Overlooked Tax Deductions, how to pick a tax lawyer, and How to save big when filing business taxes.

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Tax Deductions for First Time Homeowners

By: Chris Castillo

If you are looking to buy a house you may want to know what tax deductions you receive as a first time homeowner. There are several standard deductions you receive as a homeowner. To deduct expenses of owning a home, you must file Form 1040 and itemize your deductions on Schedule A (Form 1040). If you itemize, you cannot take the standard deduction. Now your first question may be what does the IRS define as a home? Your first home may be a house, condominium, cooperative apartment, mobile home, houseboat, or house trailer.

If you took out a mortgage (loan) to finance the purchase of your home, you probably have to make monthly house payments. Your house payment may include several costs of owning a home. Generally, your real estate taxes and home mortgage interest are included in your house payment. The only costs you can deduct are real estate taxes actually paid to the taxing authority and interest that qualifies as home mortgage interest.

Real estate taxes are the annual tax on the value of real property. You can deduct the tax if it is based on the assessed value of the real property and the taxing authority charges a unique form rate on all property in its jurisdiction.

Home mortgage interest is the interest you pay on a loan secured by your main home or a second home. The loan can be a first or second mortgage, a home improvement loan, or a home equity loan.

Generally, you can elect to deduct state and local general sales taxes instead of state and local income taxes as an itemized deduction on Schedule A (Form 1040). Deductible sales taxes may include sales taxes paid on your home (including mobile and prefabricated), or home building materials if the tax rate was the same as the general sales tax rate. Note that if you elect to deduct the sales taxes paid on your home, or home building materials, you cannot include them as part of your cost basis in your home.

Here are some expenses, which may be included in your house payment that cannot be deducted: • Fire or homeowner’s insurance premiums. • FHA or other mortgage insurance premiums. • The amount applied to reduce the principal of the mortgage.

You cannot deduct any of the following items: • Insurance, including fire and comprehensive coverage, and title and mortgage insurance. • Wages you pay for domestic help. • Depreciation. • The cost of utilities, such as gas, electricity, or water. • More settlement costs. • Forfeited deposits, down payments, or earnest money.

Note that you can deduct some of these items if you operate a home business. For example, you are allowed to use depreciation on your personal residence if you have a home office.

To learn more about tax deductions for first time homeowners visit www.real-estate-owner.com/general-tax-breaks.html.

Chris is a software engineer who maintains http://www.real-estate-owner.com which provides free real estate tax related information.

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Worst 10 Cities for Tax Procrastination

By: Ron Finkelstein

Do you often procrastinate filing your income tax return? If you do, you're not alone, especially if you live in one of the cities listed below. A leading tax software package provider tallied the returns that were filed between April 14th and April 17th, and these are the cities with the highest number of procrastinators:

10. San Jose, California When it comes to size, San Jose is number 3 in California and number 10 in the United States. Sadly, when it comes to tax procrastination, San Jose is also number 10.

9. Phoenix Despite being one of the cities that's growing faster in the country, Phoenix isn't so quick in other areas, as it's currently number 9 in tax procrastination.

8. Seattle Unlike 2005, when Seattle didn't even appear on this list, 2006 found the Emerald City at number 8 position on the procrastination list.

7. San Antonio, Texas The state of Texas has no less than three cities among the top 10, starting with the Alamo City.

6. San Diego, California San Diego improved highly since last year, when they were on the top of the list, but they still have a long way to go before they're out of the top 10 list.

5. San Francisco, California With all the technology the residents of San Francisco have at their disposal 24 x 7, it's easy to understand why they often wait until the last minute to go online and file their income tax returns.

4. Austin, Texas The second city of the state of Texas to make an appearance on this list was missing last year. In 2006, though, Austin was number 4 among the top 10 tax procrastinators.

3. New York, New York Being one of the cities with most residents in the USA, it was expectable that New York would also be one of the cities with the highest number of procrastinators.

2. Chicago, Illinois Chicago may not like to be called "Second City," but if the IRS has anything to say about it, that's what it is. For the last 3 years Chicago has been moving up the list, one spot at a time.

1. Houston, Texas The fourth biggest city in the United States and largest city in Texas is also number 1 on the list of American tax procrastinators.

Discover 10 Ways to Beat Tax Procrastination, Time Management Tips, and How to save money when filing business taxes.

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Tax Prep For Small Businesses Does Not Have To Be "Taxing"

By: Ron Finkelstein

Does the thought of preparing a tax return for your small business make you cringe? Does inspiration fail you while you wait until the last minute? This small business guide to tax deductions can help prevent procrastination until the last minute.

Clear Your Calendar: We see people postpone things because they do not have sufficient time. They do not make a schedule and follow it. It may be a task of filing your tax papers or something else.

Use a Bookkeeper: If the work involved in filing your taxes seems overwhelming, you may want to consider hiring a bookkeeper. They can assist you in organizing your specific business concerns, making April taxes seems less daunting.

A Massage or Other Nice Reward: can be a great motivator for a job well done. Choose something such as a family getaway or a day at the spa to increase your motivation to start on your taxes.

Use Tax Software: Computer software helps automate some of the more routine and tedious aspects of tax preparation. There is a variety of programs available, most of which would have all the forms available that you need to prepare your return.

Locate an Accounting Professional: Use an accountant to help combat the frustration you may feel as your business grows. A growing business has increased revenue which results in more complex accounting practices. Sometimes expensive mistakes are made. A specialist can help you avoid these costly errors. They can also give you tips on managing cash and valuable tax tips.

Pay Yourself First: How valuable are YOU to the company? To determine your hourly pay, add your profits for the fiscal year and divide by hours you worked. Next, calculate your tax refund divided by the hours required to complete the return. If your hourly pay matches or is greater than this amount, then you should have plenty of motivation to begin tax return preparations.

Seek an Extension: The majority of small business owners have little free time. Procrastinating on your taxes may result in feeling more pressured and add no overall time for the business. Evaluate the benefit of filing a time extension request with the IRS.

Enroll in a Tax Preparation Course: If you don't know precisely what to do, you may put off filing. You can gain the necessary information and bolster your self-confidence by taking a one-day tax preparation class designed for small business owners. Such classes or workshops, given via the internet, are provided at no charge by the Internal Revenue Service and certain affiliated organizations. They cover such areas as revenues, expenses, e-filing, record keeping, employment taxes, etc.

Is this the time to take on a Chief Financial Officer?: It could be, if your firm needs more than an accountant's expertise to cope with its financial matters. How do you really know if you need someone to fill this position? Consider whether you are always convening the management team whenever there are financial decisions to be made. You certainly could need a CFO, on either a part-time or full-time basis, if you are planning to launch an IPO or if you need to obtain a significant infusion of capital.

Progress Gradually: Think back on when you first created the business. You might never have gone through with this enterprise if you had known then how much you had to do to get underway. Take baby steps. Open with a simple chore like making a useful set of rolodex cards and go on from there.

Nobody really enjoys doing taxes, but it's much more daunting when you put it off rather than simply getting it out of the way. Avoid the guilt, get going, and see how much better you feel when the deadline rolls around.

Check out the Most Overlooked Tax Deductions, how to choose a tax lawyer, and How to save money when filing business taxes.

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How To Resolve IRS Back Taxes

By: Roni Deutch

Every year thousands of taxpayers find themselves in debt to the IRS. Fortunately the IRS has several tax settlement programs available to taxpayers who cannot afford to fully repay their taxes.

The fastest way to resolve your Internal Revenue Service (IRS) back taxes is to pay them in full. You will need to include any interest or penalties that have accrued on the IRS back taxes since they were originally assessed. These can add up quickly and account for thousands of dollars in IRS back taxes. However, most taxpayers do not have the available funds to fully repay their taxes and must resolve their debt through one of the IRS’s settlement programs.

If you can afford to pay all of your IRS back taxes, but not in one lump sum payment, then you should consider an Installment Agreement (IA) with the IRS. An IA is a monthly payment plan to the IRS based upon how much you owe and how much you can afford to pay. However, the IRS is only willing to enter into an IA once a taxpayer has filed all of his or her necessary federal income tax returns. Therefore before attempting to get an IA you should make sure all of your tax returns from previous years are files.

If you cannot afford to pay on your IRS back taxes at all, then you might be interested in being placed on the IRS’ Currently Not Collectible status. To qualify for this type of relief you need to prove to the IRS that your monthly income is exceeded by your monthly necessary living expenses. The IRS is typically only willing to place a taxpayer into Currently Not Collectible status once the taxpayer has filed all of his or her necessary federal income tax returns.

If you cannot afford to pay your back taxes at all, you may qualify for an Offer in Compromise (OIC). An Offer in Compromise is a form of IRS back tax resolution. It requires the disclosure of extensive financial information in order to prove to the IRS that could not collect the full amount of back taxes the taxpayer currently owes. Specifically, the Offer in Compromise requires proving to the IRS that it could not collect your full back taxes over four or five years even if the IRS forced the sale of all assets that you currently own. The IRS is only willing to accept an Offer in Compromise once a taxpayer has filed all of his or her necessary federal income tax returns.

If your owed back taxes are from a few years back you may not actually need to do anything to resolve your back taxes. This is because the IRS only has ten years to collect back taxes from the date on which they were assessed. Therefore, if your unpaid back taxes are from 1997 or before, the IRS may not be able to collect those taxes anymore. However, there are events that can occur that will extend this timeframe, such as bankruptcy. To best ensure that your back taxes have expired, you may want to hire a tax professional to review your tax account with the IRS on your behalf.

As a last resort you could resolve your back taxes through filing for bankruptcy. However, there are a number of factors that must be considered before back taxes can be discharged in bankruptcy. First, you need to qualify for bankruptcy. Second, you need to properly file the bankruptcy. Third, you need to examine the age and type of back taxes. In general, recently assessed federal income back taxes cannot be discharged in bankruptcy. Additionally, business-related federal payroll back taxes generally cannot be discharged in bankruptcy. If you are considering filing bankruptcy you should speak with a bankruptcy attorney regarding whether your IRS back taxes can be discharged in a bankruptcy.

Tax Lady Roni Deutch’s law firm Roni Lynn Deutch, A Professional Tax Corporation has been helping taxpayers across the nation settle their IRS back taxes for over seventeen years.

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A Key Real Estate Tax Advantage That's Generally Overlooked

By: Tom Wheelwright

One of the biggest tax advantages of owning a rental property is the depreciation you can take on the amount you paid for the property. Of course, the IRS understands that land does not wear out. So, only the portion of the purchase price related to the building and the contents is subject to the allowance for depreciation. This makes determining the building/land split a very important decision. Take for instance a $200,000 home. If you can justify 10% of the value is for land and 90% is for building, you can take a depreciation deduction of at least $6,545 per year. Compare that to the same $200,000 home with a land value of 30% and a building value of 70%. In this case, the depreciation deduction is only going to be $4,580 per year. The result is almost a $2,000 difference in tax deduction per year.

But how do you determine the value of the land and the building? There are a few options available. The first option is to check the county real estate tax bill for the property. Frequently, county assessors print the estimated land value and improvements value on the actual tax bill. These assessed values may be lower than the price of the property at the time of purchase. So, if you use this method, you should take the relative values of the land and the improvements to arrive at the ratio of land value to total value. Then, you can apply that ratio to your purchase price to determine the land value for your tax return.

A second option you can use is comparable sales values based on appraisals for similar properties in the area. You can speak to a real estate agent to find out what appraisers are using for land values in the area.

A third option to determine the split between building and land is to use an industry standard for the area. This standard could be anywhere from 80% building and 20% land in some areas, to 30% building and 70% land in other areas where land is at a premium - many areas in California and Hawaii come to mind. Although it is rare for the IRS to challenge an industry-standard split, in the event of an IRS challenge, you may be forced to go back to one of the first two methods.

We find industry standard splits to be the most common method of allocating the purchase price between land and building simply because they are so easy to apply. With recent escalations in the prices of real estate throughout the country, however, this may be an area the IRS chooses to examine. We recommend that the industry standard be viewed as a last resort and encourage everyone to at least explore the other options simply because they provide good support for the IRS and they may even provide you with a more advantageous allocation.

Be sure to review these options with your tax preparer before they begin preparing your tax return.

Tom Wheelwright is not only the founder and CEO of Provision, but he is the creative force behind Provision Wealth Strategists. In addition to his management responsibilities, Tom likes to coach clients on wealth, business, and tax strategies. Along with his frequent seminars on these strategies, Tom is an adjunct professor in the Masters of Tax program at Arizona State University. For more information, visit http://www.provisionwealth.com.com .

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Roth 401(k)

By: J. Graydon Coghlan

The Pension Protection Act of 2006 made Roth 401(k)s a permanent retirement option.

While the Pension Protect Act lifted the cloud of uncertainty surrounding Roth 401(k) contributions by making them permanent, whether employers will change existing 401(k) plans to adopt the option remains to be seen.

Benefits experts seem to agree that the amount of employee demand will determine how many employers adopt the Roth 401(k), which combines several features of the Roth IRA with the employer maintained 401(k). Like a Roth IRA, contributions to Roth 401(k)s are made after taxes. At age 59 ½ you can begin to withdraw your savings without facing taxes or penalties, provided you have held the account for at least five years. Minimum distributions are required to begin at age 70½, like a 401(k).

Roth 401(k)s face the same contribution limits as regular 401(k)s: for 2007, $15,500 a year or $20,500 a year if you’re over age 50. Regular 401(k) contributions and Roth 401(k) contributions are combined for calculating the contribution limit. Roth IRAs limit you for 2007 to only $4,000 a year in contributions or $5,000 if you’re over 50.

Roth 401(k) have no annual income limit, whereas the Roth IRA begins reducing the contribution limit for singles making $99,000 a year and couples making $156,000. The contributions are eliminated when income reaches $114,000 for singles and $166,000 for couples.

If withdrawals are made before age 59½ or from accounts less than five years old, the account holder pays no tax on the original after-tax contributions, but will pay income tax and a 10-percent penalty on earnings. After-tax contributions are withdrawn first, so no taxes or penalties are due until the account holder starts tapping earnings.

An employer must offer a regular 401(k) plan to offer the Roth 401(k) contribution options. Because 401(k) contributions are made pre-tax, and Roth 401(k) contributions are made after tax, the amounts are segregated. Employers may match Roth 401(k) contributions, but those are held in another separate account and are considered earnings for tax and penalty purposes.

Roth 401(k) options work well for high-compensation employees who anticipate being in a higher tax bracket during retirement, who can pay taxes now at a lower rate and then make withdrawals tax free in retirement. They may also be attractive to employees whose income prevents them from making contributions to a Roth IRA. If the funds will be needed sooner than five years, however, the Roth IRA probably isn’t the best option.

At the other end of the spectrum, Roth 401(k)s may be an alternative for parents in the low tax brackets, because they may have large deductions for child care and home ownership now that may not be available to them in retirement. These families may also anticipate being in a higher tax bracket in retirement.

As with all investment decisions, deciding to invest in a Roth 401(k) has many variables to consider including the number of years you plan on holding assets in the account, your current tax bracket, and your future tax bracket. It also depends on whether or not your employer decides to establish the option. After working with a financial professional, you should take all of your personal and financial factors into consideration before investing.

J. Graydon Coghlan, President/CEO of Coghlan Financial Group, Inc, is a Registered Representative with Securities America, Inc., a Registered Broker/Dealer, member NASD/SIPC. Advisory services offered through Securities America Advisors, Inc., A SEC Registered Investment Advisory firm. He can be reached at 858-550-3960 or by e-mail at jgcoghlan@cfgretire.com or visit our website at: http://www.coghlanfinancial.com

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How Noteworthy are Finance Tax Attorneys?

By: Keith Hoyng

Being a finance tax attorney necessitates tolerable understanding about the law on tax specifically that he will not only be confined to the task on behalf of his clients in the court for criminal or civil lawsuits but his task too extends up to giving significant recommendations to people. His suggestions are a lot needed for the issues in connection with tax laws as well as with the ways on how tax liabilities will for this cause be minimized in such a legal system.
If you are confronted with the pressing issues pertaining to tax planning, it is crucial that you counsel with a specialist finance tax attorney with the intention that you will be able to pick out the most excellent recommendations which are nevertheless recognized by the law.
With the help of the finance tax attorney, you will be made alert to the stages as to how you can lessen your paid taxes, gain of rebates or exemptions, and the top format of filing your income tax rebates. Both of the state and the federal tax laws are greatly difficult that a majority of the times these laws vary from one state to another. Tax exemptions are more often than not to be gained by the senior citizens.
Therefore if you are not receptive to the offered terms concerning these exemptions, you might as greatly require referring your issue to a dependable finance tax attorney.
Don't undertake these matters into your own hands. Making decisions without past conference with a finance tax attorney may well be chancy on your part. If you contend on undertaking matters into your own hands, you may deal with legal troubles in no time at all. You can cut down your taxes but make certain first that the stages that you will presume will be in conformity with the legal methods known to everyone in the government. Pay attention as without exception that the Internal Revenue Service is on the alert for tax evaders and tax violators. One false move and you are dead meat!
Finance tax attorneys are the people who fathom the full entrustment on behalf of their clients in the court. Their clients may perhaps be a single individual or an organization that is held under inquiry for cases of tax evasion or tax fraud.
The stages taken by the finance tax attorneys involve putting up a negotiation with the IRS in addition to defending their clients in the criminal case proceedings and when guilty is established, it is their job to go to work on the plausible reduction of their clients’ penalties. Majority of the talented finance tax attorneys go to work out for the uttermost practicable court settlement for the tax evader in order that the penalties to be suffered as soon as he or she gets convicted will be smaller.
It is an exceptional choice to discuss with a finance tax attorney other than a tax accountant or tax advisor because as a legal guidance; he can't be dragged by the law to spill out any discussions that became known between him and his client. Tax advisors are expected forced by the law to testify against a citizen or an organization that is facing charges on tax crimes. It is again another very considerable matter to decide the proper finance tax attorney who is not only superior and well thought-of but similarly has the crucial skills that will keep you from hot water.

Keith Hoyng is the web master and operator of http://www.quickcash2u.com which is an excellent source of tax and debt relief information and many articles on key financial information. This site offers articles to help manage, save, obtain and make money. If you want get more valuable tax information visit us at http://www.quickcash2u.com/TaxHelp.html

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Registration And Accounting For Value Added Tax

By: Terry Cartwright

Vat registration and the threshold plus accounting for value added tax and submitting the quarterly vat tax return online is essential knowledge.

When a business registers for vat it becomes responsible for charging vat at the correct percentage on every sales invoice and transfer of goods and services and also maintaining accurate financial accounting records of the vat charged hat are subject to vat inspections. If the sales turnover has breached the vat threshold that business is liable for the vat on sales even if it has not charged the customer.

The vat charged to customers is called output tax and the vat on purchases is called input tax. When a business has registered for vat in addition to maintaining records of sales and input tax it must also keep accurate financial records of purchases and input tax in order to calculate the vat payment to be made. The amount of vat to be paid each quarter is the difference between the sales output tax and the purchases input tax and is paid quarterly to HMRC.

Specific types of business transactions are exempt from vat such as insurance and loans. If the business only supplies exempt items then the business cannot register for vat to reclaim the input tax paid on purchases.

Registering voluntarily for vat when the sales turnover is below the vat threshold is a financial planning decision that each small business should consider. There are both advantages and disadvantages to a voluntary registration and the timing of the registration may also be a feature to be taken into account.

The advantages include being able to reclaim the vat input on purchases which is otherwise lost as a financial cost to the business. If a voluntary registration is taken up then value added tax has to be included on all future sales invoices.

If the majority of customers are already vat registered themselves then registering does not normally affect sales volume and can increase the credibility of the business. Charging vat to non vat registered clients such as members of the public would increase the amount being charged and make the small business less competitive.

When a business moves from being non vat registered to being vat registered changes may have to be made to the bookkeeping records being maintained. Not normally a problem if accounting or bookkeeping software is being used provided the financial system employed can fulfil the enhanced requirements being vat registered.

Once vat registered the sales invoices must show the name and address of the business, registration number, tax point which is the date the sale was made and the amount of vat being charged. A bookkeeping record of sales invoices issued should be maintained with an audit trail, list, to enable the customs and excise to verify the vat records.

In relation to purchase invoices and reclaiming the vat input tax vat may only be reclaimed on those invoices for which the business has a vat purchase invoice. A valid vat purchase invoice contains the vat number of the supplier who issued the invoice. A bookkeeping record is required of all purchase invoices from suppliers clearly showing the output tax being reclaimed.

Valuew added tax returns are prepared quarterly and sent before the end of the following month. If registered for the online service vat returns can be filed online. There are benefits to filing the tax return online in that many businesses may receive up to 7 days longer than normal to file the vat return if the vat payment is being made electronically.

Penalties and interest may be imposed for submitting vat returns late and making late payments. When a vat return is not submitted on time an assessment may be raised which has to be paid as a legal debt until such time as the return is submitted and the amount due corrected.

It is important to submit the vat return on time even if there is a problem paying the full amount. Failing to submit on time brings the business to the attention of the tax authority that is more likely to inspect and investigate persistent offenders. A business can be expected to receive an inspection every three years however in the worst case scenario of a delinquent vat registered business the customs and excise could inspect every quarter.

Terry Cartwright at DIY Accounting provides Accounting Software that automates the vat return at http://www.diyaccounting.co.uk/ for self employed business and companies at http://www.diyaccounting.co.uk/Limited/vat.htm

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Tax Season is Bringing Out Identity Thieves

By: Ronald Hudkins

A number of clients have recently reported to their tax preparation services that they have been receiving calls from someone posing as a representative from the Social Security Administration. The caller began the conversation by talking about the pending Congressional leader's announcement where a deal with the White House on the economic stimulus package would give most tax filers refunds of $600 to $1,200, and more if they have children. The caller went on to solicit from consumers their Social Security number stating confirmation of their number would ensure they received their rebate checks within the next 6 - 7 months.

The Social Security Administration is not making a conscience effort to confirm consumer identification numbers. You need to be aware that identity thief's are however and they use a number of tactics to steal your identity. Spoofing is generally used by thieves as a means to convince individuals to provide personal or financial information that enables the perpetrators to commit credit card/bank fraud or other forms of identity theft. An attempt to fraudulently acquire sensitive financial or personal information, such as credit card information or a Social Security number, by impersonating a business representative or trustworthy person is also known as a Phishing attempt and is usually initiated through e-mail, phone calls or Instant Messaging.

Thieves do not just collect Social Security Numbers. They are also after your telephone records, date of birth and your bank and credit card account numbers. This information is a personal asset as well and people who illegally solicit this information are also known as pretexters.

It is yet another name for identity theft and Pretexting is (like the other practices mentioned) a means of getting your personal information under false pretenses.

Pretexters sell your information to people who may use it to get credit in your name, steal your assets, or to investigate or sue you. Pretexting is against the law. Whether it is by means of Spoofing, Phishing or Pretexting the tactics are all designed to get your personal information.

According the Federal Trade Commission For example, a pretexter may call, claim he's from a survey firm, and ask you a few questions. When the pretexter (let's just call it a thief) has the information they want, it is used to call your financial institution.

The thief pretends to be you or someone with authorized access to your account. They might claim that they have forgotten their checkbook and need information about their account. In this way, the criminal may be able to obtain personal information about you such as your SSN, bank and credit card account numbers, information in your credit report, and the existence and size of your savings and investment portfolios.

Keep in mind that some information about you may be a matter of public record, such as whether you own a home, pay your real estate taxes, or have ever filed for bankruptcy.

It is not pretexting for another person to collect this kind of information. Identity thieves don't just use the schemes we've just talked about to get your personal information they also procure your identity by:

* Stealing wallets, purses and your mail (bank and credit card statements, pre-approved credit offers, new checks and tax information);

* Stealing personal information you provide to an unsecured site on the Internet, from business or personnel records at work and personal information in your home;

* Rummaging through your trash, the trash of businesses and public trash dumps for personal data;

* Buying personal information from "inside" sources. For example, an identity thief may pay an employee for information about you that appears on an application for goods, services or credit.

Even though the laws are on your side, it's wise to take an active role in protecting your information. The Federal Trade Commission recommends the following actions;

1. Don't give out personal information on the phone, through the mail or over the Internet unless you've initiated the contact or know who you're dealing with. Pretexters may pose as representatives of survey firms, banks, Internet service providers and even government agencies to get you to reveal your SSN, mother's maiden name, financial account numbers and other identifying information. Legitimate organizations with which you do business have the information they need and will not ask you for it.

2. Be informed. Ask your financial institutions for their policies about sharing your information. Ask them specifically about their policies to prevent pretexting.

3. Pay attention to your statement cycles. Follow up with your financial institutions if your statements don't arrive on time.

4. Review your statements carefully and promptly. Report any discrepancies to your institution immediately.

5. Alert family members to the dangers of pretexting. Explain that only you, or someone you authorize, should provide personal information to others.

6. Keep items with personal information in a safe place. Tear or shred your charge receipts, copies of credit applications, insurance forms, bank checks and other financial statements that you're discarding, expired charge cards and credit offers you get in the mail.

7. Add passwords to your credit card, bank and phone accounts. Avoid using easily available information like your mother's maiden name, your birth date, the last four digits of your SSN or your phone number, or a series of consecutive numbers.

8. Be mindful about where you leave personal information in your home, especially if you have roommates or are having work done in your home by others.

9. Find out who has access to your personal information at work and verify that the records are kept in a secure location. Checking your credit report annually can help you catch mistakes and fraud before they wreak havoc on your personal finances.

Order a copy of your credit report from the three nationwide consumer reporting companies every year. To order your free annual report from one or all the nationwide consumer reporting companies, call toll-free 1-877-322-8228, or complete the Annual Credit Report Request Form avail at their Website annualcreditreport.com, and mail it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.

If you do not have the time or expertise to put measures in place to protect you and your family's identity consider visiting a credit protection service that can put the appropriate measures in place to preserve your good name, credit and assets.

Ronald Hudkins is a published Internet author with a very high regard for consumer awareness. Despite over 2o years in law enforcement and working many jobs requiring a security clearance he once fell victim to credit theft as a result of a disgruntled employee selling information from personnel records. To find out how he supplements and protects his identity visit and review the program he uses at http://www.AdultWishFoundations.com/Life_Lock.html

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Tax Law Changes That Impact Homeowners

By: Tom Wheelwright

With foreclosure rates at an all time high, new tax law was passed at the end of 2007 to help homeowners avoid unmanageable income tax debt due to income created from a foreclosure. The new law also covers mortgage renegotiations and other real estate related benefits.

How is income created from a foreclosure? Here is a common scenario:

A lender forecloses on a property and then sells the property for less than the outstanding mortgage balance. There still remains an unpaid mortgage debt, which is the difference between the outstanding mortgage balance and the sales price. What usually happens next is the lender forgives the unpaid mortgage balance.

Before the new tax law, the unpaid mortgage balance was considered taxable income leaving the homeowner with an income tax bill.

After the new tax law, the unpaid mortgage balance is excluded from taxable income up to $2 million.

What is a mortgage renegotiation? Before starting the foreclosure process, a lender typically performs a cost-benefit analysis of foreclosing on a property. The result may be that the foreclosure is not in the lender's best interest, which isn't uncommon since the typical foreclosure nets the lender only about 60 cents on the dollar. In this case, the lender may renegotiate the terms of the mortgage to get to a lower monthly payment for the homeowner.

For example, one renegotiation workout plan organized by the Bush Administration and a group of lenders would bypass adjustable rate resets for up to five years. This type of renegotiation would typically result in forgiveness of indebtedness income creating taxable income to the homeowner if it were not for the new law.

What type of debt qualifies for the exclusion? The new law applies to debt incurred for the acquisition, construction or substantial improvement of the principal residence of the taxpayer and is secured by the residence. It also includes refinancing of such debt to the extent that refinancing does not exceed the amount of the original indebtedness.

What do homeowners need to watch out for? Homeowners who did "cash-out" refinancing and did not put the funds back into the home but, instead, used the funds to pay off credit card debt, tuition, medical expenses, or other expenditures. The "cash-out" amount is indebtedness income and fully taxable unless other exceptions are met.

What qualifies as a principal residence? A principal residence is the one in which the taxpayer lives most of the time. However, the determination of a taxpayer's principal residence is based on "all the facts and circumstances." The definition is the same as the home sale gain exclusion.

This rules out vacation homes, second residences and rental properties, even if the properties were purchased with equity from the taxpayer's principal residence.

When is the new law effective? This special relief is available for three years beginning January 1, 2007, and ending December 31, 2009.

What other real estate related benefits are included in the new tax law?

Mortgage Insurance Deduction. The new law extends the mortgage insurance deduction to amounts paid or accrued after December 31, 2007, but only with respect to contracts entered into after December 31, 2006, or prior to January 1, 2011.

Survivor's Home Sale Exclusion The new law extends the time in which a surviving spouse may use the married filing joint $500,000 home sale gain exclusion before being treated as a single individual entitled only to a $250,000 exclusion. Before the new tax law, a surviving spouse was could use the $500,000 exclusion only to the extent he or she could file a joint return with the deceased spouse's estate, which is only in the tax year the spouse dies.

Starting January 1, 2008, the surviving spouse can use the $500,000 gain exclusion up to two years following the date of death of the spouse.

What's the catch? As you have read, this new tax law contains major tax reductions, which are offset by several tax increases included in the new law. These increases include:

An increase in the failure to file penalty for partnerships from $50 to $85 per partner per month, up to 12 months

A new failure to file penalty for S corporations of $85 per S shareholder per month, up to 12 months

Increases in corporate estimated tax payments for corporations with $1 billion-plus assets, by 1.5 percent to 117.25 percent for payments due in July, August and September 2012.

Tom Wheelwright is not only the founder and CEO of Provision, but he is the creative force behind Provision Wealth Strategists. In addition to his management responsibilities, Tom likes to coach clients on wealth, business, and tax strategies. Along with his frequent seminars on these strategies, Tom is an adjunct professor in the Masters of Tax program at Arizona State University. For more information, visit http://www.provisionwealth.com.com .

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Why delay taxes with a 1031 exchange agreement

By: Francisco Segura

Many companies and individuals enter into a 1031 exchange agreement to save money and increase value while deferring taxes until a later date. This allows the sale profits of the relinquished property to be put directly towards the purchase of the replacement property, without money being removed from this amount for tax purposes. This service comes in several forms and can save a business thousands while allowing for a more expensive property to be purchased. This can mean the difference between an okay property and an amazing property.

The premise of the 1031 exchange agreement is that a property, be it real estate, manufacturing, or livestock, can be sold and "replaced" with a like kind property of equal or greater value than the original. This is to mean that a $75000 manufacturing building can be "replaced" with a $150000 dollar apartment building, with the taxes from the initial sale being deferred until the sale of the apartment building in years to follow. This example uses the two primary rules of the 1031 property exchange agreement by complying with the like kind rule, both properties are real estate, and by complying with the equal or greater value to the replacement property. The $150000 apartment building was worth more than the $75000 manufacturing building.

In the 1031 exchange agreement, the taxpayer, or one in the exchange, must sell, and purchase new property within 45 days of the initial sale. This time limit can be increased if an extension is submitted before the end of the 45th day. This extension must be accompanied with a listing of all properties one is looking at and only those properties will be considered viable for the 1031 exchange agreement. The extension period is no more than 180 days beyond the initial sale date.

As has been stated repeatedly, but not explained, the 1031 exchange agreement means that the taxes that would normally be garnered from the sale of the initial property is deferred until a later date. This is to mean that the entirety of the sale money from the initial property can be used to purchase a loan or property. This can save a business thousands of dollars in very little time or effort.

An example of the money that a 1031 exchange agreement can save is that of the $100000 property. If this property was sold without the 1031 exchange agreement, the taxes on this property could be $35000. This would leave $65000 for a loan purchase. Provided all of the money is used as a 25% down payment, the loan could be worth $260000. Provided the typical 75% loan value to property value, $325000 in property is purchased. That same property using the 1031 exchange agreement could put $100000 down and purchase a loan of $400000. Assuming the same 75% ratio, the property could be valued at $500000, which is an increase of $175000 in values.

These funds can be saved using various types of 1031 exchange agreement options, such as reverse, and delayed exchanges.

Francisco Segura owns and operates http://www.1031exchangeforprofit.com 1031 Exchange

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Online Tax Preparation

By: Peter Blake

Most of us are always looking for ways to make our lives easier, and inventors and manufacturers have long been raking in good money because of it. A couple of things that come immediately to mind are the microwave oven and the dishwasher.

This desire for convenience permeates into almost all aspects of our lives today. For example, most people find completing and filing their tax returns both tough and troublesome and want to find a better way to do it.

Businesses and computer programmers have fortunately noticed this desire for convenience and have come up with a solution: Online tax preparation. There are now dozens of websites that provide this service, and the great thing about them is that you don't have to download any software. All the steps can be done online, including entering all the relevant information and filing the taxes with the government or state.

Most people hate the tax season and feel pressured by the looming April 14 deadline, and hate having to fill in all those forms and mail them in. Online tax preparation has obviously made life a lot easier for a lot of people, and cuts down their stress level.

However, it's a good idea to do a bit of research before deciding on using an online tax preparation website. The obvious one being to make sure that the website you plan to use for your tax preparation is run by a respected company. Remember, you will have to enter both personal and financial information, so it's crucial that the website you choose to use is secure. Only use reputable companies to entrust your private and confidential information to. Make sure you have heard of both the company and their website so can be sure they are genuine. So, read the small print on their website carefully and ensure they have good Internet security to protect your information. Once that is done then go ahead and use their service.

The IRS have a list of tax preparation websites they deem to be safe, and also list websites that will provide tax preparation for free, so a good idea to start there - on the IBS website. Not all free tax preparation websites will also file your tax return for free, so a good idea to check before starting to use that website. Before getting too involved with your chosen 'free' website it would be a good idea to make sure both the tax preparation and filing are free!

Peter Blake is an Englishman currently based in London, and writes on family and home issues. Professional help can be got by going to this website: http://taxes.pbnichemarketing.com

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County Sales Tax

By: Frank Vanderlugt

County sales tax disappears from your wallet each time you plunk down money for a purchase. Why? What does it do?

The answer varies around the country, of course. But there are certain things that apply to most counties, no matter the state in which you live, and we’ll talk about those.

Basically, a county sales tax is levied on top of any state sales tax that may exist. For instance, your state may have a sales tax of two percent, and that is charged on any sale made within the state. State sales taxes typically help pay for things like the costs of running state government, State Patrol, and other things that generally benefit the entire population, state-wide.

A county sales tax, on the other hand, helps pay for county-specific items. Sometimes a sales tax increase is levied or voted on for a specific purpose—transportation needs, constructing a new county building, or other things. At other times the county may need money for its general revenue fund to help pay for a wide variety of items or services, and the county sales tax may feed into the general fund.

County sales tax is often used in conjunction with money from other county revenues, like property taxes. Because of that it can be difficult to get details on exactly where the money goes. Specifics like this are very difficult to find on county websites, but there are some items for which county sales tax revenues are typically used.

New county buildings are one use for the money. County administration needs a place to happen, and if the current county building is in poor condition or in need of extensive renovation, funds from the county sales tax can help pay for that.

Streets and street improvements are another very common use for sales tax money. New construction requires new streets. Potholes need fixing, and weather causes damage to streets and support systems.

Your county likely has a library system, and that’s another thing that your county sales tax can help pay for. Buildings, heat and light, personnel and the books, CDs and computers are all part of the expenses paid for by county sales taxes.

Very often a county sales tax will be raised to help pay for a sports stadium, convention center, county medical facility or some other large facility that will serve the needs of the entire county. These increases can be for a specific time period, after which the tax returns to its previous level.

Other times it will be an ongoing tax because once the facility is built, there will be ongoing costs for personnel, utilities, maintenance, and other costs.

Most county councils or other governing bodies will propose the new facility and/or the increase in the county sales tax. Depending on your county’s legal setup, the tax increase may be put to a vote of the people or the county council may approve or deny the request.

Almost everyone feels their county sales tax is too high. And that may be more a function of a lack of communication about what the benefits are from that tax money. Next time your county wants to increase the sales tax, find out where the money will be going. Then you’ll be in a better position to decide if this tax is going to benefit you.

frank j vanderlugt owns and operates http://www.tax-lien-2007.com Tax Lien

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Tax Attorney Saves us Hours and Hours

By: Frank Vanderlugt

Every year as mid-April edges ever closer, we spend hours and hours of our time trying to sort through our account papers, W2s, and other assorted documents to fill out our tax forms. We cross our fingers and send them off, hoping we filled them out correctly. However, millions of Americans don’t.

It’s scary to be audited by the IRS because of a simple tax form error, especially since you have to prove it was all a mistake. Even if you don’t get audited, you could easily pay too much or miss a rebate for which you’re eligible because you overlooked something or did some math wrong. Why take the chance? Hire a tax attorney before you file to avoid potential tax form disaster!

Although accountants will gladly help you file your taxes, many of these tax services only spring up during the first quarter of the year and then accountants spend the rest of the year not looking at taxes. A tax attorney really knows the tax laws inside and out because he or she spends all year, every year helping clients work put the latest in taxation law to their advantage.

More than an accountant, a tax attorney will look over your papers and tell you about the latest changes in taxation law that might be to your advantage. A tax attorney might save you from paying too much, saving you potentially hundreds of dollars. Or a tax attorney might save you from paying too little and help you avoid trouble with the IRS.

If you’re already being audited or face other problems with the IRS, a tax attorney should be your one-stop resource. Lawyers who aren’t specialized in taxation law, like accountants, spend much of the year working on other things, other types of cases. Why not chose a tax attorney who spends all of his or her time at work studying taxation law?

Can you appeal to the IRS for what you think is unfair taxation? Can you write an apology letter to the IRS, explaining that you made a mistake, make the extra payment, and still be in good standing with the IRS? A tax attorney can tell you.

Do you need to reach a settlement with the IRS but you think you can’t afford to pay all that you owe? Is the IRS threatening to garnish your wages? A tax attorney can tell you if you qualify for a long-term partial payment plan or even a one-time small settlement called the Offer in Compromise.

Stop by tax-attorney.com for more information and resources to help you find the right tax attorney for your individual tax needs. To start searching for a tax attorney near you, try taxationlawfirms.com.

Frank j Vanderlugt owns and operates http://www.tax-attorney.biz Tax Attorney

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Tax Lawyer May Reduce Taxes Payable

By: Frank Vanderlugt

The purpose of hiring a tax lawyer by an individual is to reduce the total amount of tax payable. It also includes other payables such as IRS interests, penalties etc. Contrarily, a Tax Lawyer can resolve wage garnishments in IRS issues. There are many ways by which a Tax Lawyer analyzes the "tax payable" issue of an individual. In general, a tax Lawyer would be required by an individual to resolve tax issues in Income Tax payments, preparation of late tax returns, IRS wage garnishment, tax liens dealings etc.

If there is a dispute either between two parties, the Tax lawyers of both parties can analyze and negotiate offers made by the other can try to bring about a compromise. This is called as the Offer in compromise and is a very popular legal program / process. In an Offer in compromise, a tax payer, for the purpose of settlement of tax bills that are delinquent, is offered to pay the State / IRS a lesser sum of amount. An optimal amount can be arrived at by the help of a Tax Lawyer.

If there is a situation where an individual is liable to pay a tax amount to the government; a tax lawyer analyzes the tax clauses prescribed as per law and arrives at the best optimal compromise (the lowest possible amount) that should be paid as tax by the individual. One of the main problems a tax payer might encounter is with respect to wage garnishments. The magnitude of penalties levied for non-compliance in IRS issues or with tax agencies in States are quite heavy. This would definitely need a legal expert’s advice. Consulting a Tax Attorney is the best option during these situations and can legally negotiate with the tax agencies to release wage garnishments or IRS amounts. In instances where individuals have missed filing their tax returns, or are way behind the years to file their tax returns, a Tax Attorney can solve such issues, however complex they may be. The Tax Attorney can prepare back tax calculations to be filed at the government’s tax collection office and reduce the criminal prosecution risk that the individual might face during these instances.

In corporate and business houses, a tax lawyer is the key person who resolves tax issues involved in employee payrolls. There have been enormous instances where tax lawyers have saved corporate houses from seizures due to payroll taxes. In businesses that run in huge losses, or sometimes even run into bankruptcy, a tax lawyer is capable of analyzing the accounts and help to bring out a "nil tax payable" situation as per the clauses prescribed in law. The Tax Attorney is a key person who can legally analyze tax clauses and resolve issues when a corporate or an individual is caught in a tax debt.

Frank j Vanderlugt owns and operates http://www.tax-attorney.biz Tax Attorney

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