The Village is Full

Ten Fundraising Ideas (and some links to get some more)

2010-05-08T10:12:00.000-07:00

Whether you're part of a non-profit or a charity or you're still in school and need ideas for a class fundraiser, there are numerous ways in which you can raise funds and get money for your cause. Here are some of the interesting, outrageous, but also some of the easiest fundraising ideas out there.

1. Festivals, Fairs, Block Parties, and the rest: it shouldn't be too expensive, unlike what you might think. The food will be made/baked by people from your group of fundraisers; fair games and activities could be organized by you or just donated by local businesses or by the local school or sports teams. It could include other concepts, such as a dance fundraiser, pageants ; etc.

2. Bake sale/cookie sale: this is the classic girl scouts scheme, and there is no reason why it shouldn't work for you

3. The site fundraising-ideas.org has a great provocative idea: make invitations for a flush event, that is not going to happen. The logic: people would appreciate the humor.

4. Staying at humor, another site, fundraisingideas.com.au, has an idea for toad/cockroaches race

5. People like to win stuff, and if you sell raffle tickets, this could be a classic fundraiser

6. Set up a website for donations

7. Set up a talent show (you know, American Idol or Dacing with the Stars like), which would be for the benefit of charity; it could be also a humorous talent show.

8. Auctions and blind auctions

9. on a Google Answers article on the subject, it is suggested "Host a SuperBowl party where everyone brings $20 -- specifically for the fund" - this could be said for any other type of big event like the SuperBowl.

10. Car washing, pet sitting, babysitting, garden cleaning and similar services - for charity!

Textile and Fashion Careers

2010-05-06T03:05:00.000-07:00

Textile marketing, textile management or entrepneurship in the textile business is an enticing opportunity for someone who is interested in mobilising their creativity into career. However, the profit margin in some parts of the textile industry are not very high, and some of the work involves relocation or at least travel (to countries where textiles are manufactured), and could be financially risky or unstable, depending on how luxurious are the items sold.

Some sites to seek jobs in the textile business:

Fibre2Fashion is a good place to start - lots of listings from different countries, in the job section of this portal, dedicated to all things related to the fashion and textile industries

By its name, you can imagine that the site TextileJobs.net would have at least some good offerings

Fashion Potato is another site dedicated to jobs in the fashion industry and in the textile business

Apparel Search's "Clothing Industry Jobs" is a message board where job listings may be found

Further relevant articles:

Should one be learning Fashion Design online (and the prospects of finding a job later)

How to start your own fashion or textile/apparel business - from the very early beginnings.

Guides for Wholesale Fashion, Apparel and Textile Supplies:

Wholesale shoes and footware
Wholesale Quilting equipment
Wholesale beads

On Patents, Trademarks, and Intellectural Property

2010-05-02T01:10:00.000-07:00

What is the difference between patents, trademarks and other types of intellectual property?

The exact legal definition could vary between different jurisdictions. Basically, we can simplify it by saying that :

Patents protect innovations and inventions, that are applicable in the industry and are innovative and unique. Examples could include formulas for drugs, new technologies, etc. The Segway is a patent, because it is all those things together. Could you imagine security guards in shopping centre without this valuable patent? ;-)

Trademarks are symbols, for example that famous colourful Google sign we all know - next time you Google - note that the search engine has a small "TM" next to the symbol. It means that even if I invent now a new search engine, I can neither use the name, nor the symbol without permission (and for those nitpickers: teaching someone about something is within fair use).

There are other types of intellectual property, for example, creative works. This may include compositions of musical pieces, lyrics to songs, movies and television products, books, and designs. However, especially creative works in design are very difficult to protect. While, if I now claim that I have just written a song called "YMCA" and would start using it as my own song, I would be at the very least ridiculed (but mostly sued by the rightful copyright owners); if I form a band consisting of one guy dressed like a cop, another like a sailor and a third like an Indian, it would be very difficult for the Village People to sue me for infringing their "unique deisgn" [please note that while the Village People allow YouTube present their original clips to my utmost joy, they disallow embedding, that is, the song being used by people like me for their own gains - exactly what I was talking about].

It gets even more complicated if what you're offering as your intellectual property is something that someone else might also come up with. While it is highly unlikely that someone else would come up with the exact motivational lyrics calling the young man to "Stay at the YMCA"; it is less unlikely that recipes in cook books, tour companies routes or fashion creations, would be similar.

More information

United States Patent and Trademark Office

Christine Magdo, "The Copying of Design Originals" Harvard Law School LEDA

Protection of Fashion Designs

And even more:

* Can you protect movie ideas ?

* Are qoutations of celebrities and noted individuals protected by copyright?

* Is summary of information, properly cited and attributed, a violation of copyright?

Identifying a Scam: Look it Up!

2009-04-22T04:22:00.000-07:00

In a previous post, we have discussed the warning signs of a scam:
- It comes unsolicited
- The deal is too good to be true
- Website looks unprofessional

We have also suggested that you'll search the name of the business in question with the word "scam" next to it.

However, there are further ways to know whether an offer is a scam or not.

I will take, as an example, a "company" that comes up once in a while in online questions forums: Excell Capital Corporation.

Their website is http://www.excellcapital.com/ and it has all the signs shouting "stay away with a 10-feet pole!" on it: bad grammar, bad graphics, exclamation marks, etc. So, a first warning sign is already there.

In the "contact us" page, they mysteriously leave out a phone (although in the "services" page they claim to have 250 people seating on the phone, waiting to help you. But there is more than that: looking up their address in Berlin comes up with nothing - the street has only 18 houses, while they are located in number 210.

If the maps search is not enough for you, check out, on a "whois" record, who registered the site:

The owner is
Samer Nassar (info@my-designclub.com)
97226563445
from Jerusalem

Hey, why doesn't a respectable German company have a valid address, a German webmaster (or for that, a German language web page)? How come their webmaster resides in Jerusalem?

I think you know the answer yourself...

Plastic Containers, Plastic Jars, Plastic Bottles and Plastic Boxes Wholesale Suppliers

2008-08-13T09:44:00.000-07:00

Here is a free list of sources and distributors for plastic containers, plastic jars, plastic bottles and plastic boxes for wholesale or dropship. Please note, that „wholesale prices“ became a type of a slogan and doesn't always mean that the seller is a genuine wholeseller of plastic containers, plastic jars, plastic bottles and plastic boxes . Some of these companies also sell retail.

Alameda Packaging

http://www.alamedapackaging.com/

Bottle Store

http://www.bottlestore.com/

Cape Bottle Company

http://www.netbottle.com/

Comet Plastics

http://www.cometplastics.com/plastic-containers.html

CPS, Container and Packaging

http://www.containerandpackaging.com/

e-Bottles

http://www.ebottles.com/

Essential Supplies

http://www.essentialsupplies.com/

Inmark Inc.

http://www.inmarkinc.com/

Pump King

http://www.pumpking.com/

Rajdeep Plastic Containers

http://rajdeepplasticcontainers.com/

SKS Bottle
http://www.sks-bottle.com

Specialty Bottles

http://www.specialtybottle.com/

SunBurst Bottle Company

http://www.sunburstbottle.com/

Wholesale Hobby/Crafts Suppliers: Beads

2007-10-21T06:32:00.000-07:00

In this list of wholesale distributors of beads we included also wholesellers who also sell to the general public, as this is relatively common with bead sellers.

Start with About.com list of bead wholesale sources

Austin Hamilton (Lampwork beads) #
http://www.austinhamilton.ca/beads_wholesale.html

Beadpeddler
http://www.beadpeddler.com/

Beads in Bulk
http://www.beadsinbulk.com/ wholesale only

Czech Glass Beads
http://www.czechbeads.com/

Fire Mountain
one of the market leader, which claims to sell in "wholesale prices" (not wholesale!):
"We offer wholesale prices at quantity levels. The more you buy, the better the prices. We believe that: Value = good quality + a good price. While no company can be the lowest on everything it offers, we are lower than the vast majority of companies that we have compared. This includes companies that sell "wholesale" and companies that have "retail/wholesale/distributor" pricing. We invite you to compare our prices and our quality. We feel that you will find us on the top of your list for companies with which you want to do business."
http://www.firemountaingems.com/

Frogwill
"We dispose exclusively wholesale orders. Minimum order value must be over €500. By bigger deals you can count on significant discounts."
http://frogwill.com/catalog.html

Gemmall
"GemMall is a wholesale beads and jewelry making supplies company specializing in gemstone beads and glass beads. We carry more than 20,000 products of beads in stock and provide special orders and cutting services. We are dedicated to bring direct factory price to our wholesale beads customers across the world."
http://www.gemmall.com/

Gemshow #

http://www.znetshows.com/gemshow/retail/wholesale%20beads.asp

iBead
http://www.ibead.com/default.aspx - also sells bulk beads, but not "real" wholesale

Silver Charms #
https://www.silvercharmsinc.com/pages/pages_wholesalers.asp

Timewell
http://www.timewellcorp.com/

Trash City
http://www.trashcity.com/

The Guide for Wholesale Fishing Supplies

2007-10-15T07:29:00.000-07:00

The following list is a directory of several fishing suppliers wholesalers. Most of them would not accept private clients and would sell to retailers only, with a tax-ID (US) or equivalent in other countries.

Fish 33
http://www.fish33.com/

Mangler
http://www.themangler.com/wholesaleapplication.html

Merrick Tackle
http://www.merricktackle.com/

Perry's Tackle
http://www.perrystackle.com/

Sea-Ex - a directory of sea-life issues, including a list of wholesale distributors of fishing equipment, by country
http://www.sea-ex.com/wholesaletackl/

Tackle Distributor
http://www.tackledistributor.com/

TackleMall - Tackle Shop
http://www.tacklemall.com/

WSB Tackle
http://www.wsbtackle.com/

Wholesale Hobby Suppliers: Quilting

2007-10-06T06:45:00.000-07:00

As usual, if you're a hobby quilter, this list may not be for you: it includes businesses that sell only to other businesses (B2B), and require a tax ID. Some online hobby businesses claim they have "wholesale prices", but what they actually mean is that they claim to sell you cheap.

Needlecraft is one of the most established wholesale (only) businesses in the field of embroidery, quilting, etc. They sell everything, from quilt backing to needles; through patterns and quilts.

Quiltworks is another good (wholesale only) source for patterns, books, fabrics, etc.

eNeedle is not so sofisticated (and geared in any case more on retail), but they do sell wholesale.

Embroidery Etc. are usually a retailer, but may sell some stuff through wholesale.

Bryerpatch sell some of their patterns and fabric printing products to teachers and hobby shops.
Judy Niemeyer sell patterns and books to shops

The guide for wholesale shoes and footwear

2007-09-28T10:49:00.001-07:00

Here is a free list of sources and distributors for shoes for wholesale or dropship. Please note, that „wholesale prices“ became a type of a slogan and doesn't always mean that the seller is a genuine wholeseller of shoes.

AAA Online Auctions at http://www.aaaonlineauctions.com

Baily Shoes

http://www.china-shoes-factory.com/ - a Chinese manufacturer

Chico Shoes

http://www.chikoshoes.com/ - a China-based shoe manufacturer

Fashion Zap

http://www.fashionzap.com/content.php?id=wholesale

FDM Shoes

http://www.fdmshoes.com/yw_version_en/www/index.htm?ActiveNode=1 – a Chinese manufacturer

Liquidation

http://www.liquidation.com/list/c1023/cta/1.html

Top Footwear

http://www.topfootwear.com – US Based wholeseller

WMS Wholesale Clothing

http://www.wmsclothing.com/cgi-bin/category/35482

Wortmann - http://www.wortmann.com Germnan wholeseller

Ceri Wholesale http://www.ceriwholesale.com - a store that claims to have wholesale

What about brand names? How can I get Adidas, Gucci, Nike, Nine West et al for wholesale?

Most brand name shoe manufacturers are concerned because of many couterfeits, originating especially from the „Far East“. Therefore, they sell only directly through their official distirbutors to resellers. This has two implications for you. The first is, that if you see someone advertising for „wholesale designer/brandname shoes“, most chances are that they are either counterfeit (mind you that beside cheating your customers, it is illegal to sell counterfeit of brandname items); or that they „fell off the truck“. Here are some official distributors:

Aquatalia http://www.aquatalia.com/

Fortune Dynaics - http://www.fortunedynamic.com/ - sell (for resellers only) brand names such as Soda, Paprika, Delicious, and Classified

It's Still Me - http://imstillme.com/ism_wholesale_diaper_bag_changing_pad_info.html – distributor for Gucio children's shoes

Onex - http://www.onexshoes.com/index.html – sell through their site

Justin Blair & Company, distributors of foot and shoe
care products are the U.S. licensees for Tarrago Shoe care products of Spain.

Justin Blair & Company
4500 W 31st Street
Chicago, IL 60623
Phone: 773-523-3320    
Fax: 773-523-3639
Email: shucare@aol.com

Another source of scam in the shoe wholesale business is sites offering lists of places that would, so they claim, sell you designer or brand name shoes per wholesale. The more honest among them would give you a list of the type I am giving now for free; the less honest would give you some list you could have done without.

In any case, if you are serious about opening a shoe store (online or offline), you should not only read my list, but get in touch with industry exhibitions (where wholeseller, manufacturers and retailers meet) and industry organisations.

In the United States, a large industry organization is the NSRA – National Shoe Retailer Association. Their site includes a list of manufacturers and distributors (hey, for free, not like those sites claiming that to get the list you must pay...) : http://nsra.org/prodserv_md.php

They also have New Store Starters Kit http://nsra.org/openingstore.php and much more.

One of the largest exhibitions you can visit is this:
http://www.wsashow.com/

Joshua Seth

2007-09-14T04:42:00.000-07:00

Contact details:
email: info@joshuaseth.com

Links:

JoshuaSeth.com - official site

Joshua Seth - Wikipedia, the free encyclopedia - Wikipedia

Joshua Seth - IMDB

Joshua SETH - Anime News Network - Anime News Network

Google Image results for Joshua Seth

Free Courses and Aid to Quit Smoking

2007-08-26T07:27:00.001-07:00

Quitting smoking can reduce your health insurance and life insurance expenses and get you a better policy. However, quitting smoking is not easy, but there are several sites offering free help - methods, support, courses and aid - to those who want to quit smoking.

Do you want to quit smoking? Here is a list of free ways to quit smoking:

The Foundation for a Smokefree America offers free advices on its website (http://www.anti-smoking.org/quitting.htm)

Quit4Good has several advices as well as support forum: http://www.quit4good.com/

Free support programme: http://www.quitnet.com/

Why Quit - free quitting e-books, videos, support

* New York State - programme for residents, including free patches/nicotine replacements, free therapy, etc. http://www.nysmokefree.com/newweb/default.aspx

* nicotine anonymous: http://www.nicotine-anonymous.org/

* another seminar, support group - dealing with all aspects: http://www.smokenders.com/

* Smokefree.gov offers support from experts, advices.

* More links:
http://www.cdc.gov/tobacco/quit_smoking/how_to_quit/index.htm

Free phones:
* The foundation's for smokefree America hotline, with a trained professional counsellor:
1-800-QUIT NOW (1-800-784-8669)
* National Cancer Institute's Smoking Quitline, 1-877-44U-Quit
* 1-800-332-8615
* In New York: 1-866-NY-QUITS (1-866-697-8487)

Free IM help:
* https://cissecure.nci.nih.gov/livehelp/welcome.asp

Related Information:
Quitting Smoking for a health insurance exam - can you do it? http://answers.google.com/answers/threadview?id=516038

Smoking Cecession Pills are one of the most popular products sold online as perscription medicine:
http://answers.google.com/answers/threadview?id=356897

Deleting Your Name from Google

2007-08-25T05:26:00.000-07:00

Is it possible to delete your personal information from the Internet? That your name (or at least embarrassing information) will not appear on Google?

Google (or any other search engine, like AOL, Yahoo! or MSN) is not responsible for material found through their index.

Who is? The webmaster is responsible.

However, this is not entirely correct. It is possible - under certain conditions and in some extreme cases, to get the search engine to remove the "incriminating" pages. In some limited cases, several groups have managed to issue a cease and desist order against a search engine. The reasons have been:
* In cases of the Church of Scientology, they thought that they found the perfect way to deal away with they sharpest critics - they complained to Google that those sites were publishing illegal information (that is, protected by copyright). Google had to
remove the results; and temporarily also removed the whole site xenu.net
This is relevant to you if you would like to claim that the material you've published on those forums was your own copyright-protected material. It is a problematic cause, because usually a forum-member signs a standard release form that the material posted is not his or hers. In any case, this could be an avenue.
However, let me get back to Scientology and why I think that their
strategy is stupid (JW have also used the same strategy).
* In other cases, Google blocked access to sites or information that
was illegal in a certain jurisdiction - neo-Nazi propaganda is illegal
in Germany and France (and therefore blocked from the google.de and
google.fr sites); most notoriously, Google removes much information
from the Chinese site, which is monitored by the Chinese government.
Naturally, if the information regarding you is "only" inconvinient,
but not something that is illegal (libel/defamation, etc.) it would be very difficult for you to use this second way - you don't have the resources or the power of those governments.
In addition, in my analysis I mentioned only the largest search
engine, Google. However, although Yahoo! received the same cease and
desist notices (or was also involved in such legal battles, of groups
demanding to remove adversary information from the Internet), you will
not be able to visit all search engines.

Some Tips for Dealing with the Websites
=========================
Therefore, the more probable way is to deal with the websites directly.

Information about the people responsible to websites could be
obtained from something called a "Whois" report. For example, this website
provides such an information:
http://www.whois.net/
(you put in the name
of the site, for example, for "google.com", you put "google" in the search
box and choose ".com" as your suffix, and get the results. In some cases, it
tells you that the information is on another site - that you should get it from
- for example http://whois.site.com/ - you
go there and do the same).

This should give the information of the person responsible for the site.
Your next step should be to write the letter ("snail" mail, not an email or at
least, not only an email). Let me quote from an article about ReputationDefender
mentioned below:
"Most people will take materials down just to avoid the
hassle of dealing with possible litigation," says Susan Crawford, an
associate professor at Cardozo Law School who specializes in cyberlaw and
telecommunications law. "If the letter is sufficiently threatening, [...] the
threaten-ee could bring his or her own lawsuit seeking a declaration that what
they posted wasn't unlawful. But, again, most people will just buckle rather
than fight back." (SOURCE: Scott Gilbertson, "Delete Your Bad Web Rep", Wired, 7
November 2006).

In other words, this should be a letter in Legalese, that sounds
threatening enough. This is because besically the site owner's right to decide
to keep the information published, unless a court orders them otherwise.

Chilling Effects (which is in fact a site fighting for freedom of speech
online) has a form to send a cease and desist notices to site owners:
Chilling Effects - Sending a Cease and Desist Notice
<http://www.chillingeffects.org/sending.cgi>
As mentioned before, some sites have forms that enable you to request
removal or change of the informtion by you that is published on them.
For example, Google Groups has an option to remove posts that you have
written:
How do I remove my own posts?
<http://groups.google.com/support/bin/answer.py?answer=8380>

In general, what other services, such as ComplaintRemover (<http://www.repsavior.com/>), will do for
you, is to float the Internet with positive information about you, so that the
old
information would be swept to the bottom of the search results.

This is also the reason why I argued that Scientology's strategy to deal
with adversaries is less than perfect. Other groups have encountered the
same problem. They have chosen to deal with that through "floating" the Internet
with positive information, through blogs, links to Wikipedia, etc. - instead of
going to Google to whine.

Scam of the Day: "Free Satellite"

2007-08-08T08:24:00.000-07:00

Several sites have been brought to "Village Full's" attention, which promise to provide "free satellite TV", anywhere in the world. Just download their program (for a "one time fee" of say, $60) and get wonderful satellite TV right into your computer, no dish or any special equipment needed; heck, no TV-card is even required.

Are these scams?

Well, since we're talking about "sites" in general, it is difficult to say that they are all scams, but these sites bear some certain alarm signs that say "I-am-a-scammer.com":
* In many cases, scammers try to get you involve in something, which is fishy enough so you'll believe any promise they give. We all know that watching paid-for-TV without paying for it is bad. But few questions arise here: what provider of satellite TV? What about the different encoding?
* What about support? These sites offer support in the form of a free email address provided by gmail or yahoo! mail. Another sure sign of a scam; you can also check the "whois" details to see another sure sign.
* And what about the offering itself? On one of those sites, they provide a screen-shot of their offering, stating that "there are many more channels like ESPN...". They do know how to push the buttons of sports fan. The problem is simply that they use a screen shot, which looks suspiciously like the one that you get from anywhere you've got completely free tv-online: no download fees, because all these sites do, is to list TV channels, which stream over the Internet. It would be nice if you clicked the ads there as a thank-you, but that's it.

So what, there is no "free TV online?"
* first of all, there is. As noted here - there are plenty of sites offering live streaming or recorded TV shows.
* But more than that. If you're in the US (or know someone there), check out Sling TV, which promises control on your TV from any computer you hook to. All legal - it is your TV, you're just transmitting to the computer.
* I used to have Joost, but frankly, I don't see the advantage. Still it might develop into something worthwhile, it seems to be for users from North America (which I am not).

Taiwan Lotus

2007-06-13T04:26:00.000-07:00

Taiwan Lotus advertises itself on various message boards as a manufacturer of kitchenware. It also calls itself sometimes Lotus Precision or Lotus Boards.

There is only one thing suspicious about them - they had a website (taiwanlotus.com.tw) but they did not renew it.

However, it is basically an example of a company, on which one can check: you can check with the Taiwanese representative in your country, if they are known to them; and what kind of things they manufacture, you can call them - they do not hide their phone number (although the issue with the website is a bit problematic - perhaps a better idea would be to contact them here: http://www.taiwantrade.com.tw/taiwanlotus/) .

If you can read Chinese, you can see the Yahoo! Auctions history of Dick Chen from Taiwan Lotus here:
http://tw.user.bid.yahoo.com/tw/show/rating?userID=pin48&

Further sites:
http://my.import.or.kr/taiwanlotus/index.html

And their entertaining demonstration of their multilayer cutting boards here:

Quite cool...

My conclusion is that Taiwan Lotus Precision are just not accustomed to web-based marketing, and therefore even neglect to add a credit on their YouTube Video. Doesn't seem like a scam (the other way round), but if you have any contradictory comments, feel free to post them.

Further reading:

http://villagefull.blogspot.com/search/label/scams

Pricing for Tires

2007-06-12T12:07:00.001-07:00

The Americans for Tax Refors site discusses the taxes in every state for tires: apparently, they claim that 36% of tire price is taxes:

Consumers, of course, must pay sales tax on the tires, averaging about 5
percent. They must also pay an additional tax averaging about 1 percent to pay
for tire disposal.
Out of what the consumer pays for tires, the producer must
pay federal income taxes, state income taxes, federal payroll taxes,
unemployment insurance taxes, workmen’s compensation taxes, local property taxes
and any local income taxes.
Altogether, these taxes consume about 30 percent
of what the consumer pays for a tire. Counting the taxes paid directly by the
consumer, this means about 36 percent of the final sales price of a tire goes to
the government in taxes.

You can find it a populistic argument, but this is still interesting.

Where can you find sites for tires with prices? There are several:

The Online Authority for the Third Generation SHO

Volkswagen

Become: Heavy Truck Tires with Prices

And the best so far:

SnapNPost Store

Related Info:

Shipping car over to Spain including items enclosed in car

Countries banning the importation of used tires: Costa Rica, Ecuador, Venzuela

Number of Pick-Up Trucks in the US

tireswithprices

”Something New”: H&R Block Explains Tax Effects of Marriage, Divorce

2007-06-04T12:52:00.000-07:00

With wedding season in full swing, tax preparation firm H&R Block (NYSE: HRB) reminds newlyweds that tying the knot means new tax issues that tax professionals can help couples manage:

* Marriage means choices. The IRS allows married couples to file using the “married filing jointly” or “married filing separately” status. Each has advantages that can be difficult to understand. For example, if a taxpayer claims medical expenses or other itemized deductions that are limited by their adjusted gross income, filing separately may be the way to go. But if the person wants to claim most tax credits or deduct their IRA contribution, they’ll probably need to file jointly. Consulting a tax professional helps in determining the right choice for couples filing for the first time.
* Social Security numbers don’t change, but anyone who has changed their last name will need to apply for a new Social Security card. If the name and number don’t match, the IRS might delay processing of the return, which means a refund could take longer than usual to arrive.
* Marriage also means adjusting retirement savings. Besides changing filing status on an employer’s 401(k) account, newly married taxpayers also should consider increased limits for tax-deductible IRA contributions. If the couple’s income meets certain limits, they could qualify for more of a deduction. In some scenarios, one spouse also may “borrow” from the other’s earnings to meet the limits.

* Inform the IRS of a new address. If the IRS does not have the correct address on file for a newly married couple, it could take longer for a refund to arrive. Taxpayers shouldn’t count on mail to be automatically forwarded and should consider filing Form 8822 to inform the IRS.

Divorce also can change a taxpayer’s financial situation. The best advice is to understand the divorce agreement and its terms, especially key components that could complicate a tax return:

* Alimony is taxable and deductible. The person who provides alimony can claim the payments as a deduction, while the person who receives it can avoid a large end-of-year tax bill by paying estimated taxes during the year. Unlike alimony, child support is not deductible or taxable.
* Who claims children? The parent who has custody of a child usually can claim the child as a dependent. However, with the custodial parent’s consent, the parent without custody can claim the child. (The custodial parent may still be able to claim certain tax benefits related to the child, including head of household filing status, the Earned Income Tax Credit, and the child-care credit.)
* Who is a head of household? There are several factors for determining the head of a household. A few include being considered “unmarried” on the last day of the year, having children or other dependents who live with you, and paying more than half the cost of providing a home for dependents. Taxpayers should consult with a tax professional to determine if they qualify for head of household status.
* Divorce, annulment and legal separation are considered the same by the IRS for tax purposes. The way a tax return is affected by the situation depends on how the decree is worded, and in cases where state and federal law differ, the IRS will side with the federal government.

More information about how marriage, divorce and other life changes can affect taxpayers’ financial situations is available at www.hrblock.com. In addition, taxpayers can visit one of more than 4,000 H&R Block offices open year-round to speak with a tax professional about available tax benefits and how to claim them.

Cigarettes, Taxes and Buying them Online

2007-04-29T12:51:00.000-07:00

Buying cigarettes online sounds, at the beginning, like a great way to avoid state taxes. However, this is naturally not always true, as there are laws requiring the sites to report the sale; so that the state would demand its share in the pie (or the pack, in this case).

Bill Toland of the Pittsburgh Post-Gazette wrote an interesting analysis of the issue:

Let's get hypothetical here. You bought 150 cartons of cigarettes via the Internet over the last two years, and last week the state Department of Revenue sent you a bill for all of the back taxes and fines you owe. Lousy break.

Meanwhile, your pal bought just as many cigarettes as you did -- but because he bought them from a different Web site, one that doesn't abide by the federal law requiring cigarette vendors to share buyer information with the 50 states, Pennsylvania didn't find out about his purchases, and thus didn't tell him to pay up.

And the guy who buys 50 cartons didn't get a tax notice, either, because he never reached the state's rather arbitrary 100-carton threshold for notification -- a level it set because it assumes people buying that many cigarettes probably are reselling them, not smoking them.

Fair? Probably not.

Constitutional?

That's an excellent question.

More: here.

What is Tax Law?

2007-04-23T04:07:00.000-07:00

What is the definition of tax law? The Texas BAR has on its website an answer:

What is tax law?
Tax law involves the taxation of income and property acquired through personal and professional efforts. Tax law affects most areas of your life - for example, you pay sales tax, inheritance tax, property tax, capital gains tax, and more. The federal and state governments each have tax laws that are independent, and in some cases different from one another. The more assets an individual owns, the more complicated the relevant tax law becomes.

How to Identify Fraud on Alibaba, Ecplaza and similar sites

2007-04-20T05:23:00.000-07:00

The Internet enables us to communicate and trade with people from the other side of the world, and to be able therefore to enhance our own businesses. In fact, the Internet gives small business owners and start-ups the opportunity to reach the supplier dierctly.

However, like a huge Bazaar, you can find many husslers and scams in the world of wholesale trading and drop-shipping. So, how to identify fraud or potential scams on sites like Alibaba, Ecplaza, ec21, and the like?

There are several procautions:

- Never send money do anyone you don't know, wholesalers included, through Moneygram, Western Union, and the such. If it is a fraud, you have no way at all to recover your money. In general, if a business even asks you to pay through these services, it is fishier than a cod.

- There are no real bargains in wholesale. What I mean to say, is that if PSP or iPod cost a certain amount in your home country, you will not find them for much cheaper from Alibaba wholesellers. You will only be scammed or get something you haven't bargained for. In addition, please note that:
* In the case of electronics and many other types of products, there are official distributors in each country (or region), and you are supposed to purchase per-wholesale from them; a company like LG or Sony will not guarantee anything to those not purchasing from it;
* In the case of fashion items and other expensive goods, there is an abundance of counterfeiters on Alibaba and the like. You will not get your Gucci bag, just a bag with "Gucci" on it...

- Check everything: the names, address, perform a "Who is" investigation on the website (if there is any).

Save Thousands on Insurance

2007-04-18T11:45:00.000-07:00

Press Release:

Copyright: The Kiplinger Washington Editors, Inc.
Source: Kiplinger's Personal Finance

FAMILY | Get the best price for all the coverage you need at every stage of your life. By Kimberly Lankford

Insurance is essential to safeguarding your finances and your family. But over your lifetime, the types of coverage you need change. And the company that offered you the best deal as a single person may not have the most attractive policy after you have a family. We'll suggest strategies to help you choose the right coverage at every stage of your life while saving thousands on your premiums.

YOUNG AND SINGLE

Until you reach age 25, auto-insurance premiums can be major budget-busters. But prices for the same coverage can vary by hundreds of dollars from one company to another.

When Keisha Fuller was in her early twenties a few years ago, she decided not to buy a car until she found an auto-insurance policy that cost less than $1,000 per year. The Atlanta woman started her quest at the Georgia insurance department's Web site, where she learned about smaller companies offering good deals. She contacted independent agents to get price quotes (find an agent in your area at www.iiaba.org), gathered quotes from large insurers at Allstate.com and Progressive.com, and used sites such as InsWeb.com and Insure.com, which work with a number of companies. The result: Fuller found a policy that cost less than $900 per year.

And she didn't stop there. She reshops her coverage every six months or so, and last December her premium dropped to $426. "I turned 25, an old accident was removed from my record, and I took an online defensive-driving course from AARP for $19.95," says Fuller. "I also allowed Geico to take my credit rating into consideration. They sent a letter asking permission, and I sent it back with haste because my good credit helped lower my premium."

In addition to car insurance, young singles should have renters coverage to insure their belongings, which can be expensive to replace, and give them liability protection. You should be able to find a policy for just $100 to $200 per year, and purchasing it from your auto-insurance company could earn you a discount on both policies.

If you don't have health insurance through your employer, it's a good idea to buy it on your own. You can generally stay on your parents' policy while you're a full-time student, up to age 25 (rules vary by company and state). After that, you may be able to continue coverage for up to 36 months through the federal COBRA law. Premiums will jump if your parent's employer had been subsidizing the cost. But you can't be rejected for health reasons, so COBRA may be your best bet if you have a medical condition.

You're healthy? You'll probably be able to beat COBRA's cost. Get quotes from several companies at eHealthInsurance.com, or find a local agent at www.nahu.org.

Raising your deductible on individual coverage to at least $1,100 can lower your premium significantly and qualify you for a health savings account. An HSA lets you set aside tax-deductible money that you can use tax-free to pay for medical expenses that aren't covered by insurance (see "A New Direction for Retirement Savings," on page 95).

Young singles don't have to worry about life insurance. You only need that type of coverage when someone is financially dependent on you.

WHEN KIDS ARRIVE

Life insurance becomes essential when you're supporting young children, but coverage is surprisingly inexpensive. A healthy 35-year-old man can get a 20-year, $500,000 term-insurance policy for less than $350 per year, or a 30-year policy for less than $500. Women pay even less. That will give you protection until the kids move out or your mortgage is paid off.

A general rule of thumb is to buy coverage equal to eight to ten times your annual income. But stay-at-home parents need life insurance, too, to cover services the family would need if they weren't around to provide them. To get a more precise idea of your family's needs, use the life-insurance calculator in the Tools & Calculators section of Kiplinger.com.

Jeanpierre and Susie Caramanica ran the numbers when their son, Daniel, was born two years ago. "We analyzed our current income and assets, plus our current and long-term expenses," says Jeanpierre. He and Susie, ages 31 and 32, started with about $50,000 in life insurance each through their jobs as human-resources consultants, and they purchased an additional $200,000 in supplemental polices offered by Susie's employer. The Caramanicas, who live in New York City, plan to update their calculations after their second child is born in May.

Disability insurance is also a concern. Most employer plans pay only 60% of your income, up to a monthly maximum of $5,000 to $10,000, and don't include bonuses or commissions. If that's not enough to cover your expenses if you can't work, you can buy your own policy or supplemental coverage through your employer.

Getting married or having kids should also trigger a review of your health-insurance options, comparing premiums, deductibles and co-payments for anticipated expenses. One plan may offer a much better deal for family coverage.

When the Caramanicas went through this exercise, they found it cost significantly less to add Daniel to Susie's plan than to Jeanpierre's. Jeanpierre, meanwhile, remains on his own employer's policy. They also make the most of their employers' flexible spending accounts, which give them tax-free money for medical expenses that aren't covered by insurance and for dependent care.

EMPTY NESTERS

When your kids move out, your auto-insurance rates will finally drop and you'll probably need less life insurance, if any. That frees up money for you to purchase long-term-care insurance.

That's what Nancy and Ken Holm did after their daughter, Nancy, graduated from college. The Holms, who live in Prairie Village, Kan., had seen firsthand the value of long-term-care coverage after Ken's mother had a lengthy stay in a nursing home. They wanted to protect their retirement savings and make life easier for Nancy, 28. "We have only one child, and she lives far away," says her mother.

Last year the Holms (she's 59 and he's 63) bought a long-term-care policy from MetLife that pays a daily benefit of $105 for care in a nursing home, in an assisted-living facility or at home.

Coverage kicks in after a 45-day waiting period. The policy has an annual inflation adjustment of 5% and a shared-care rider, which gives the Holms a pool of money to cover a total of eight years of care between the two of them. They also have a return-of-premium rider that pays back their premiums (less any claims) to their estate. Total annual premium: $3,300 (the policy would cost $2,600 without the shared-care or return-of-premium riders).

The Holms cut their homeowners premiums by moving to a smaller, newer house after their daughter moved out. If you move, keep in mind that the company that offered the best deal in your old neighborhood may no longer have the lowest rates. Also, the company that offers the lowest auto-insurance rates for families with children might not be the best for a couple.

AFTER YOU RETIRE

If you haven't bought long-term-care insurance already, consider it now. The younger you are when you buy the policy, the lower your premiums will be. Plus, it's less likely that you'll have a medical condition that could make it difficult to qualify for coverage.

You'll also need to make new decisions about health insurance when you stop working. If you retire before age 65, you may have a tough time finding affordable coverage on your own until you qualify for Medicare. If your employer doesn't offer retiree health insurance, you may be able to stay on the company policy through COBRA for up to 18 months after leaving your job.

COBRA was the best option for Esther Love of San Antonio. Her husband, Allen, retired in 2003 at age 65 and qualified for Medicare. Esther was only 57 at the time, so she elected COBRA coverage. After that ran out, she had to search for a policy of her own.

Blue Cross rejected her because a colonoscopy had turned up a benign polyp. Two other companies offered policies with monthly premiums of $501 and $560, but they wanted to exclude coverage for conditions related to the polyp. Esther finally found coverage with no exclusions through the Texas high-risk pool for $601 per month, and she's still on the lookout for a better deal.

Because prices and coverage can vary so much, it's a good idea to get help from a health-insurance agent (find one in your area at www.nahu.org). Many states have high-risk pools or laws requiring insurers to continue your coverage even after COBRA runs out, as long as you follow certain procedures (go to kiplinger.com/money/insurance for a link to your state insurance department).

Raising your deductible can lower your premiums. And if your policy has a deductible of at least $1,100 for an individual (or $2,200 for family coverage), you can open a health savings account that lets you use tax-free money to help pay for medical expenses.

Even after you turn 65, Medicare pays only a portion of your health-care costs, and it doesn't automatically cover some big expenses, such as prescription drugs. You have two choices: Buy a medigap policy to supplement Medicare, plus a separate Part D policy for prescription drugs. Or purchase all of your coverage through a private insurer with a Medicare Advantage plan, which can be either an HMO or a regional preferred-provider network (see "Medicare That Works to Your Advantage," April).

Allen Love ended up going with a Medicare HMO from SecureHorizons, a division of UnitedHealth. "It cost much less than any Medicare supplement policy, and the number of doctors and hospitals covered is acceptable, as is the quality," says Allen. And the price can't be beat: Allen pays nothing beyond his Medicare Part B premium because of generous government subsidies to Medicare Advantage plans (use the Medicare Options tool at www.medicare.gov/mppf to compare prices).

After you retire, other insurance takes a back seat to health-care coverage. But it pays to tell your other insurers when you stop working. Your auto-insurance rates may drop when you no longer use your car to commute. You may qualify for a retiree discount on your homeowners insurance because you're likely to be spending more time in the house. And you probably don't need life insurance anymore, unless you want to protect your spouse because you have a life-only pension that will end after your death.

page 84 | Your Money KIPLINGER'S | MAY 2007

Shop for auto insurance; premiums can vary by hundreds of dollars from one company to another.

Buy renters insurance.

Individual health insurance can be surprisingly inexpensive, especially if you choose a high-deductible policy.

You probably don't need life insurance.

page 87 | Your Money KIPLINGER'S | MAY 2007

Reshop your auto insurance. The company with the lowest family rates may not offer the best deal for couples.

Consider dropping your life-insurance coverage.

Use your premium savings to purchase long-term-care insurance.

Reshop your homeowners policy if you move or downsize.

page 87 | Your Money KIPLINGER'S | MAY 2007

Notify your homeowners and auto insurers when you stop working. You may qualify for lower rates and discounts.

Get help from a health-insurance agent if you need to buy coverage on your own. Supplement Medicare with a medigap policy or by joining a private Medicare Advantage plan.

Consider buying long-term-care insurance, if you haven't already.

page 85 | Your Money KIPLINGER'S | MAY 2007

TEENS AND CARS

Families dread adding teenagers to their auto insurance. But Ian and Vickie Ross of Plainview, N.Y., were pleasantly surprised that their premiums didn't rise very much after their daughter, Alexa, got her license. Ian has had coverage through State Farm since he was in his twenties, and he benefits from discounts for long-term customers with good driving records. The Rosses keep all of their insurance--homeowners, an umbrella liability policy and coverage on three cars--with State Farm, which makes them eligible for extra discounts. Having all their policies with one company "gives me peace of mind," says Ian.

Alexa's good grades helped keep her premiums low, and younger brother Evan knows how big a difference grades can make when he gets his license in the fall. When Alexa headed off to college in Buffalo without a car, she qualified for a lower rate but is still covered when she returns home for vacations. Pairing a young driver with a safe car can also make a big difference in your premiums (find vehicle ratings at www.carsafety.org).

If you don't have a long-standing relationship with one company, check out the market when your kids start driving. An insurer offering the lowest rates for adults may have some of the highest premiums for teenage drivers.

Keeping all three kinds of insurance with one company also simplifies the Rosses' finances. State Farm sends them a consolidated bill every month, so "you don't take a hit in any particular month," says Ian.

He also decided to simplify his life insurance this year by replacing several small, annually renewable term policies with two 20-year term policies, which will provide coverage at a fixed price until his mortgage is paid off. "Now I don't have to mess with anything until I'm 68," says Ian.

Shopping through AccuQuote.com, Ian purchased two $750,000 policies for just over $1,000 per year for each. He also bought extra coverage through his employer, Orbitz. Because insurance rates have dropped so much over the past decade, you may be able to lock in a longer term with little impact on your annual premiums.

page 85 | Your Money KIPLINGER'S | MAY 2007

Life insurance is a must; buy low-cost term policies.

Purchase extra disability insurance if your employer's coverage isn't enough.

Reassess health-insurance choices when you have a baby.

Maximize discounts when your teens start to drive--if they drive a safe car and maintain good grades, and if you keep all of your insurance with one company.

Signs to Find Out if Something is a Scam

2007-04-17T08:28:00.000-07:00

You got this mail offering you a job opportunity, a dreamy commission for a small bank transfer, or similar offers. How would you know whether this is a scam or not?

Signs it is a scam
(1) If you got it by unsolicited mail (that is, they wrote to you without that you have asked for it or written first to them): bad sign. No reputable organisation would have sent you unsolicited mail as this is bad business practice and is also commonly called SPAM.

(2) The organisation doesn't have a website; or has a website, which looks unprofessional and/or their email address is not at the website, but a free email address granted by Yahoo!, Gmail and similar sites: bad sign! Real organisations normally use their own sites and email addresses.

(3) The organisation or person offers you quick money; or offers you a lot of money, but you have to do something illegal, such as bank transfers: bad sign. There are no free lunches.

(4) A grant organisation or a workplace asks you to pay to apply: 90% this is a scam, or a scam-like practice.

When in doubt...

(5) Search Google with the organisation's name and terms like "scam" "hoax" "con"; search on Google the physical address, if given to you - is it an office building? a private house?

Salary Calculators

2007-04-13T13:28:00.000-07:00

One of the best tools to know how much people with your profession earn in a certain region, is to use one of the salary calculators available online.

Here's a quick choice of few of these calculators:

Homefair
http://www.homefair.com/find_a_place/calculators/salarycalc/index.asp?cc=1

Salary.com - Salary Wizard (the most comprehensive site)
http://www.salary.com/

Salary Expert (most of the services are for a fee, but they have an international selection as well)
http://www.salaryexpert.com/

Career Builder Salary Calculator
http://www.cbsalary.com/

Related Links:
Average salary for Childcare Director

Computer consultant fees

Fund Manager

2007-04-06T19:07:00.000-07:00

What is a fund manager? A fund manager, an investment manager, is someone who manages an investment fund.

Wikipedia writes:

Investment management is the professional management of various securities
(shares, bonds etc) and other assets (e.g. real estate), to meet specified
investment goals for the benefit of the investors. Investors may be institutions
(insurance companies, pension funds, corporations etc.) or private investors
(both directly via investment contracts and more commonly via collective
investment schemes eg. mutual funds) .

The term asset management is
often used to refer to the investment management of collective investments,
whilst the more generic fund management may refer to all forms of institutional
investment as well as investment management for private investors. Investment
managers who specialize in advisory or discretionary management on behalf of
(normally wealthy) private investors may often refer to their services as wealth
management or portfolio management often within the context of so-called
"private banking".

The provision of 'investment management services'
includes elements of financial analysis, asset selection, stock selection, plan
implementation and ongoing monitoring of investments.

Investment
management is a large and important global industry in its own right responsible
for caretaking of trillions of dollars, euros, pounds and yen. Coming under the
remit of financial services many of the world's largest companies are at least
in part investment managers and employ millions of staff and create billions in
revenue.

Fund manager (or investment advisor in the U.S.) refers to both
a firm that provides investment management services and an individual(s) who
directs 'fund management' decisions.

Who pays fund managers?
Fund managers administer funds for other people, and their wages are in fact a sort of a commission they receive; in fact, a more successful fund manager would be also gratified by his or her clients or employer.

How to become an investment or a fund manager?

Wikipedia writes: Increasingly, international business schools are incorporating the subject into their course outlines and some have formulated the title of 'Investment Management' conferred as specialist bachelors degrees. (i.e. Cass Business School, London). Due to global cross-recognition agreements with the 2 major accrediting agencies AACSB and ACBSP which accredit over 560 of the best business school programs, the Certification of MFP Master Financial Planner Professional from the American Academy of Financial Management is available to AACSB and ACBSP business school graduates with finance or financial services related concentrations. For people with aspirations to become an investment manager, further education may be needed beyond a B.S. in business, finance, or economics. A graduate degree or Chartered Financial Analyst certification may be required to move up in the ranks of investment management.

See more about online options here.

...And perhaps the IRS owes you money

2007-03-26T03:55:00.000-07:00

That's right. There is a total of $2.2 billion waiting up for 1.8 million tax-payers, who haven't taken what they deserve for 2003.

In order to collect the money, a return for 2003 must be filed with an IRS office no later than Tuesday, April 17.

You can call the IRS help line at 1-800-829-1040 to see if you indeed need to file.

Celebrities Endorse Recycling Phone Bill Excise Tax Refund to Help Stop Global Warming through RefundsForGood.org

2007-03-22T04:39:00.000-07:00

U.S. taxpayers looking for ways to help the environment can now go directly to RefundsForGood.org. This new celebrity endorsed web site shows both the average taxpayer and corporations how to easily redirect their one time phone tax refund to a charity focused on saving the environment.

refundsforgood.jpg

RefundsForGood.org shows taxpayers how to help the environment by simply redirecting the phone tax refund. If we all do our part and donate our refund money to the non-profits on the website we can make a big difference
"Global warming, air pollution, over-population - these are daunting challenges that we all face - but there is a solution. Here's your chance to make a difference," says Ed Begley, Jr. on the new Refunds for Good website: refundsforgood.org. A well respected actor, as well as environmental activist, Ed has joined with Martin Sheen, Larry Hagman ("JR") and Nate Corddry from the Daily Show to support this new website to providing ways to help the environment. 13 Nobel Peace Prize Laureates, such as the Dali Lamai and Bishop Tutu also support this campaign.

Refunds for Good, Inc. has launched an interactive web portal that shows individuals and organizations how to claim telephone tax refunds on their 2006 returns and then, in turn, how to help the environment by redirecting those funds. The multi-media web site provides visitors with a simple way to donate their refund to three exceptional non-profits working to address global warming, end global conflicts, and promote sustainable development.

Individuals who choose a standard refund on their tax return will receive between $30 and $60, depending on their exemptions. Businesses and non-profits may receive tens of thousands of dollars, depending on the size of their monthly telephone expenses and other factors. A calculator on RefundsForGood.org allows organizations to determine their precise refund.

In May 2006, following the losses of five federal court decisions, the IRS decided to stop assessing the tax on most service. This tax year, ending April 17th, the IRS will refund with interest the monies collected over a 41-month period. The American public is eligible to receive an estimated $20 billion through this refund, if taxpayers claim it; half going to businesses and non-profits, and half to individuals.

"RefundsForGood.org shows taxpayers how to help the environment by simply redirecting the phone tax refund. If we all do our part and donate our refund money to the non-profits on the website we can make a big difference," says Refunds for Good co-founder, Jonathan Gorham. "There is definitely power in numbers."

Taxpayers can use the secure, on-line form at RefundsForGood.org to make a direct donation of any amount to one or more of the three non-profits featured on the site. All donations are tax deductible.

More Free IRS Help for Expats

2007-03-22T04:32:00.000-07:00

If you are living abroad and would like to have some help with your tax filings - including those who haven't filed because they didn't know/want to before, Democrats Abroad organises meetings that would help you file your taxes.

Deducations for Overseas Citizens

2007-03-20T05:14:00.000-07:00

Americans working abroad can exclude up to $82,400 per year from their US taxable income, from what you received in foreign wages.

To do this, file in form 2555.

Instructions
http://www.irs.gov/instructions/i2555/index.html

The form
http://www.irs.gov/instructions/i2555ez/index.html

The International Taxpayer

2007-03-20T05:10:00.000-07:00

From the IRS site:

If you are a U.S. citizen or resident alien living or traveling outside the
United States, you generally are required to file income tax returns, estate tax
returns, and gift tax returns and pay estimated tax in the same way as those
residing in the United States. Your income, filing status, and age generally
determine whether you must file a return. Generally, you must file a return if
your gross income from worldwide sources is at least the amount shown for your
filing status in the Filing Requirements table in Chapter 1 of Publication 54,
Tax Guide for U.S. Citizens and Resident Aliens Abroad.

If you are the
dependent of another taxpayer, see the instructions for Form 1040 for more
information on whether you must file a return.

IRS Withholding Calculator

2007-02-27T06:05:00.000-08:00

In order to calculate your taxes, you can use a free tool on the IRS website, which would calculate the withholdings:

http://www.irs.gov/individuals/page/0,,id=14806,00.html

From the

Oscar Presents is Taxable

2007-02-23T03:51:00.000-08:00

This might not relate the most of our readers, but our readers Mrs. Pitt and Mr De Niro should note that the IRS taxes the presents they receive on the Oscars.

KANSAS CITY, Mo.--(BUSINESS WIRE)--The IRS may be the most important (if
uninvited) guest at this year’s Oscars. Swanky award show swag – the luxurious
gifts stars sometimes receive valuing more than $100,000 – is taxable. That
means Hollywood’s elite have more issues to ponder this year than what to wear
on the red carpet - the high-profile, high-dollar giveaways could invite
attention from the IRS.
■ Celebrities in the highest tax bracket can expect
to owe up to 35 percent of the total gift value this year. That could mean a tax
bill of $35,000 on a $100,000 swag bag!
■ The stars could have a way out.
H&R Block says the swag bags can become tax deductible if the goodies are
donated to a recognized charitable organization. Even if they plan to donate the
swag, the stars still must claim the gifts on their taxes – first as income,
then as a charitable donation. Once celebrities receive the gifts, they are
liable for any taxes owed, but they can immediately donate the gifts to charity
and deduct the fair market value of the gifts.
■ Being charitable has a
catch – you’ll have to file IRS Form 8283 if the donation exceeds $500,
according to H&R Block. The form asks what was given, to whom, and what the
overall value of the items donated was. The IRS also requires those who donate
$250 or more to a charity to get written documentation from the organization by
the time they file their return or the due date of the return (including
extensions), whichever date comes first. Although documentation for smaller
donations generally isn't required, everyone must be able to produce
documentation should the IRS question a deduction.
■ Most of the gifts in
swag bags are taxable, but gift certificates for travel aren’t…until the person
takes the trip, according to H&R Block. The certificate has no value until
it’s turned into something in the real world…like a plane trip, train ride or
stay at a luxurious Italian villa.
■ Celebs beware: While the IRS hasn’t
announced plans to make swag bags a special point of emphasis, the organization
has made it clear on their Web site that these items may be subject to scrutiny
when tax returns are filed.

Can You Get a Deducation for Second Home?

2007-02-23T03:50:00.000-08:00

Can you get a tax deducation from the IRS for your morgage paid for a second home?

Yes you can, writes Michelle Singletary on Second home can get IRS deduction

Electronic Filing is Better

2007-02-23T03:47:00.000-08:00

The IRS would prefer you to file your forms electronically, and quite frankly, it is a good idea. E-filing of tax forms saves the system money, is more effcient and (in the "what's in it for me?" corner), you will get your refunds quicker!

Here's a full article:
IRS Pushes for More Electronic Filing

Do I have to report small freelance jobs?

2007-02-23T03:38:00.000-08:00

Do you have to report small freelance jobs you've done, for which you have been paid with cash or cheque?

Yes, you do. However, please note our section of free help on Village Full - there are many places where a freelance like yourself could easily get help with their small earning for free, and if you're under a minimum earnings, not only that you will not pay taxes, but you might even get a deducation for expenses you have!

New IRS Rules for Residents of U.S: Virgin Islands

2007-02-22T05:20:00.000-08:00

The tropical paradise might be not so much of a shelter anymore:

The IRS has said that the tax status of 8,500 residents of the US Virgin
Islands who earn more than $75,000, including employees of hedge funds, would
face renewed scrutiny as the agency steps up efforts to root out tax evaders.
The Internal Revenue Service, in a notice issued on Wednesday, said it would set
a three-year limit on audits of upper-income island residents who immediately
provide federal tax returns for the past 20 years. The notice also requires
islanders to file tax information with the federal government in addition to
returns filed with the territorial tax collector.

More here.

Church Donations: IRS Wants a Proof

2007-02-22T05:18:00.000-08:00

The IRS wants a proof for any donation you make, and if you plan to ask for a deducation because of your regular tithe, you'd better find a way to prove it, reports the Tuscon Citizen:

New Internal Revenue Service rules in effect since Jan. 1 require written
proof in order to get a tax break on any cash donation - including tithes,
offerings or the odd bills and coins tossed into donation boxes at churches,
synagogues and mosques.

Missing Tax Deducation on the 2006 forms

2007-02-22T05:01:00.000-08:00

A standard $250 federal tax deduction for teachers' out of pocket expenses is not listed on the 2006 tax forms.

The IRS says the deduction is not on the forms because they printed before Congress renewed the provision.

Professional tax preparers are aware of the missing deductions and tax software programs have been updated to include them.

The information is on the IRS's web site (http://www.irs.gov) under the headline "Key Tax Laws Enacted Late".

Top Tax Scams for 2006/7

2007-02-21T06:04:00.000-08:00

The Internal Revenue Service today identified 12 of the most blatant scams affecting American taxpayers and warned people not to fall for schemes peddled by scamsters.

This year the "Dirty Dozen" highlights five new scams that IRS auditors and criminal investigators have uncovered. Topping off the list are fraudulent refunds being claimed in connection with the special Telephone Excise Tax Refund available to most taxpayers this filing season. The IRS is actively investigating instances of this scam involving tax preparers who are preparing inflated refund requests.

Also new to the Dirty Dozen this year are abuses pertaining to Roth IRAs, the American Indian Employment Credit, domestic shell corporations and structured entities.

"Taxpayers shouldn't let their guard down," IRS Commissioner Mark W. Everson said. "Don't get taken by scam artists making outrageous promises. If you use a tax professional, pick someone who is reputable. Taxpayers should remember they are ultimately responsible for what is on their tax return even if some unscrupulous preparers have steered them in the wrong direction."

Involvement in tax schemes leads to problems for scam artists and taxpayers. Tax return preparers and promoters risk significant penalties, interest and possible criminal prosecution.

The IRS urges taxpayers to avoid these common schemes:

1. Telephone Excise Tax Refund Abuses: Early filings show some individual taxpayers have requested large and apparently improper amounts for the special telephone tax refund. In some cases, taxpayers appear to be requesting a refund of the entire amount of their phone bills, rather than just the three-percent tax on long-distance and bundled service to which they are entitled. Some tax preparers are helping their clients file apparently improper requests. The IRS is investigating potential abuses in this area and will take prompt action against taxpayers who claim improper refund amounts and against the return preparers who help them.

2. Abusive Roth IRAs: Taxpayers should be wary of advisers who encourage them to shift under-valued property to Roth Individual Retirement Arrangements (IRAs). In one variation, a promoter has the taxpayer move under-valued common stock into a Roth IRA, circumventing the annual maximum contribution limit and allowing otherwise taxable income to go untaxed.

3. Phishing: Phishing is a technique used by identity thieves to acquire personal financial data in order to gain access to the financial accounts of unsuspecting consumers, run up charges on their credit cards or apply for loans in their names. These Internet-based criminals pose as representatives of a financial institution - or sometimes the IRS itself - and send out fictitious e-mail correspondence in an attempt to trick consumers into disclosing private information. A typical e-mail notifies a taxpayer of an outstanding refund and urges the taxpayer to click on a hyperlink and visit an official-looking Web site. The Web site then solicits a social security and credit card number. It is important to note the IRS does not use e-mail to initiate contact with taxpayers about issues related to their accounts. If a taxpayer has any doubt whether a contact from the IRS is authentic, the taxpayer should call 1-800-829-1040 to confirm it.

4. Disguised Corporate Ownership: Domestic shell corporations and other entities are being formed and operated in certain states for the purpose of disguising the ownership of the business or financial activity. Once formed, these anonymous entities can be, and are being, used to facilitate underreporting of income, non-filing of tax returns, listed transactions, money laundering, financial crimes and possibly terrorist financing. The IRS is working with state authorities to identify these entities and to bring their owners into compliance.

5. Zero Wages: In this scam, which first appeared in the Dirty Dozen in 2006, a Form 4852 (Substitute Form W-2) or a "corrected" Form 1099 showing zero or little income is submitted with a federal tax return. The taxpayer may include a statement rebutting wages and taxes reported by the payer to the IRS. An explanation on the Form 4852 may cite statutory language behind Internal Revenue Code sections 3401 and 3121 or may include some reference to the paying company refusing to issue a corrected Form W-2 for fear of IRS retaliation.

6. Return Preparer Fraud: Dishonest return preparers can cause many headaches for taxpayers who fall victim to their schemes. Such preparers make their money by skimming a portion of their clients' refunds and charging inflated fees for return preparation services. They attract new clients by promising large refunds. Some preparers promote filing fraudulent claims for refunds on items such as fuel tax credits to recover taxes paid in prior years. Taxpayers should choose carefully when hiring a tax preparer. As the old saying goes, "If it sounds too good to be true, it probably is." Remember that no matter who prepares the return, the taxpayer is ultimately responsible for its accuracy. Since 2002, the courts have issued injunctions ordering dozens of individuals to cease preparing returns, and the Department of Justice has filed complaints against dozens of others. During fiscal year 2006, 109 tax return preparers were convicted of tax crimes and sentenced to an average of 18 months in prison.

7. American Indian Employment Credit: Taxpayers submit returns and claims reducing taxable income by substantial amounts citing an American Indian employment or treaty credit. Although there is an Indian Employment Credit available for businesses that employ Native Americans or their spouses, there is no provision for its use by employees. In a somewhat similar scam, unscrupulous promoters have informed Native Americans that they are not subject to federal income taxation. The promoters solicit individual Indians to file Form W-8 BEN seeking relief from all withholding of federal taxation. A recent "phishing" variation has promoters using false IRS letterheads to solicit personal financial information that they claim the IRS needs in order to process their "non-tax" status.

8. Trust Misuse: For years unscrupulous promoters have urged taxpayers to transfer assets into trusts. They promise reduction of income subject to tax, deductions for personal expenses and reduced estate or gift taxes. However, some trusts do not deliver the promised tax benefits. There are currently more than 150 active abusive trust investigations underway and 49 injunctions have been obtained against promoters since 2001. As with other arrangements, taxpayers should seek the advice of a trusted professional before entering into a trust.

9. Structured Entity Credits: Promoters of this newly identified scheme are setting up partnerships to own and sell state conservation easement credits, federal rehabilitation credits and other credits. The purported credits are the only assets owned by the partnership and once the credits are fully used, an investor receives a K-1 indicating the initial investment is a total loss, which is then deducted on the investor's individual tax return. Forming such an entity is not a viable business purpose. In other words, the investments are not valid, and the losses are not deductible.

10. Abuse of Charitable Organizations and Deductions: The IRS continues to observe the use of tax-exempt organizations to improperly shield income or assets from taxation. This can occur when a taxpayer moves assets or income to a tax-exempt supporting organization or donor-advised fund but maintains control over the assets or income. Contributions of non-cash assets continue to be an area of abuse, especially with regard to overvaluation of contributed property. In addition, the IRS is noticing the return of private tuition payments being disguised as charitable contributions to religious organizations.

11. Form 843 Tax Abatement: This scam rests on faulty interpretation of the Internal Revenue Code. It involves the filer requesting abatement of previously assessed tax using Form 843. Many using this scam have not previously filed tax returns and the tax they are trying to have abated has been assessed by the IRS through the Substitute for Return Program. The filer uses the Form 843 to list reasons for the request. Often, one of the reasons is: "Failed to properly compute and/or calculate IRC Sec 83-Property Transferred in Connection with Performance of Service."

12. Frivolous Arguments: Promoters have been known to make the following outlandish claims: the Sixteenth Amendment concerning congressional power to lay and collect income taxes was never ratified; wages are not income; filing a return and paying taxes are merely voluntary; and being required to file Form 1040 violates the Fifth Amendment right against self-incrimination or the Fourth Amendment right to privacy. Don't believe these or other similar claims. 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.

IRS Still Watches Scams That Fall Off the List

Five of last year's Dirty Dozen tax scams rotated off the list for 2007. While the IRS has seen a decline in the occurrence of some of these scams - abusive credit counseling agencies, for example - other problems, such as offshore abusive transactions continue to be an area of particular concern for the agency. The absence of a particular scheme from the Dirty Dozen should not be taken as an indication that the IRS is unaware of it or not taking steps to counter it.

How to Report Suspected Tax Fraud Activity

Suspected tax fraud can be reported to the IRS using IRS Form 3949-A, Information Referral. Form 3949-A is available for download from the IRS Web site at IRS.gov, or by mail by calling 1-800-829-3676. The completed form or a letter detailing the alleged fraudulent activity should be addressed to the Internal Revenue Service, Fresno, CA 93888. The mailing should include specific information about who is being reported, the activity being reported, how the activity became known, when the alleged violation took place, the amount of money involved and any other information that might be helpful in an investigation. The person filing the report is not required to self-identify, although it is helpful to do so. The identity of the person filing the report can be kept confidential. The person may also be entitled to a reward.

Disability and Taxes

2007-02-21T06:01:00.000-08:00

Should people who receive disability report the disability as part of the taxes?

This is the IRS' answer:

Generally, you must report as income any amount you receive for your disability through an accident or health insurance plan paid for by your employer.

If both you and your employer have paid the premiums for the plan, only the amount you receive for your disability that is due to your employer's payments is reported as income. If you pay the entire cost of a health or accident insurance plan, do not include any amounts you receive for your disability as income on your tax return. If you pay the premiums of a health or accident insurance plan through a cafeteria plan, and the amount of the premium was not included as taxable income to you; the premiums are considered paid by your employer, and the disability benefits are fully taxable.

Refer to Publication 525, Taxable and Nontaxable Income, for more details. If the amounts are taxable, you can submit a Form W-4S (PDF), Request for Federal Income Tax Withholding, to the insurance company, or make estimated tax payments by filing Form 1040-ES (PDF), Estimated Tax for Individuals.

Amounts you receive from your employer while you are sick or injured are part of your salary or wages. Report the amount you receive on the line for Wages, salaries, tips, etc, on Form 1040 (PDF); Form 1040A (PDF); Form 1040EZ (PDF). You must include in your income sick pay from any of the following:

A welfare fund.
A state sickness or disability fund.
An association of employers or employees.
An insurance company, if your employer paid for the plan.

Payments you receive from qualified long-term care insurance contracts will generally be excluded from income as reimbursement of medical expenses received for personal injury or sickness under an accident and health insurance contract. Also, certain payments received under a life insurance contract on the life of a terminally or chronically ill individual (accelerated death benefits) can be excluded from income. Refer to Publication 907, Tax Highlights for Persons with Disabilities.

You may be able to deduct your out of pocket expenses for medical care above any reimbursements, if you are eligible to itemize your deductions. You will need to review Publication 502, Medical and Dental Expenses.
For more information, refer to Publication 907, Tax Highlights for Persons with Disabilities.

References:
Publication 502, Medical and Dental Expenses
Publication 525, Taxable and Nontaxable Income
Publication 907, Tax Highlights for Persons with Disabilities
Publication 915, Social Security and Equivalent Railroad Retirement Benefits
Tax Topic 422, Nontaxable Income
Form 1040 (PDF), U.S. Individual Income Tax Return
Form 1040A (PDF), U.S. Individual Income Tax Return
Form 1040EZ (PDF), U.S. Individual Income Tax Return for Single and Joint Filers with No Dependents
Form W-4S (PDF), Request for Federal Income Tax Withholding

Should Life Insurance be Reported as Income?

2007-02-21T05:59:00.000-08:00

Are proceeds paid under a life insurance contract taxable and do they have to be reported as income?

Generally, if you receive the proceeds under a life insurance contract because of the death of the insured person the benefits are not taxable income and do not have to be reported. Any interest you receive would be taxable and would need to be reported just like any other interest received.

However, if the policy was transferred to you for valuable consideration, the exclusion for the proceeds is limited to the sum of the consideration you paid, additional premiums you paid, and certain other amounts. There are some exceptions to this rule. For additional information, call 1 800-829-1040.

References:
Publication 525, Taxable and Nontaxable Income
Tax Topic 422, Nontaxable Income

Seminar Planned to Help Small Businesses With Tax Filings

2007-02-20T08:45:00.001-08:00

InsideIndianaBusiness.com Report

2/20/2007 8:31:20 AM
The IU Kelley School of Business and the Greater Indianapolis Chamber of Commerce will host a seminar on Friday to assist small businesses with their tax filings. The “Taxes: Traps & Gaps” event is part of the Main Street Institute, a partnership between Kelley and the Chamber to provide resources and educational programming for small and mid-sized companies in central Indiana.

Source: Inside INdiana Business

Press Release

(INDIANAPOLIS, Ind., February 20, 2007) On Friday, February 23, the IU Kelley School of Business Indianapolis and the Greater Indianapolis Chamber of Commerce are co-hosting a seminar designed to help small businesses through the process of 2007 tax filing. The event is part of the Main Street Institute, a partnership between Kelley and the Chamber to provide strategic resources and educational programming for small and mid-sized companies based in Central Indiana.

The event, “Taxes: Traps & Gaps,” will be held on the 23rd from 8:00-10:00am at the downtown Indianapolis offices of Barnes & Thornburg (11 South Meridian Street). Speakers include Jeffrey Sturgis, a CPA and Certified Financial Planner from the FORUM Credit Union Private Client Group, Dean Crawford of the IRS, and Kelley Professor of Accounting Robert Jamison. Jamison is the author of the S Corporation Tax Guide and previously served as Senior Manager of Ernst & Young’s National Tax Department before coming to Kelley.

“Taxes: Traps & Gaps” will help attendees understand the implications of uncollected taxes and address other key issues and common questions related to small business taxation, as well as exploring the resources available through the IRS. Registration is available online at www.indychamber.com. More information on the Main Street Institute can be found at www.kelley.iupui.edu/mainstreet.

The IU Kelley School of Business has been a leader in American business education for more than 80 years. With an enrollment of more than 4,800 undergraduate and nearly 2,000 graduate students, it is among the premier business schools in the country, with both the undergraduate and graduate programs ranked among the best in the United States. Kelley’s Indianapolis campus, based at IUPUI, is home to the school’s Evening MBA and Master of Professional Accountancy programs and a full-time undergraduate program.

Source: IU Kelley School of Business, Greater Indianapolis Chamber of Commerce

Ohio: College Towns to Tax Beer

2007-02-12T10:04:00.000-08:00

I hear the kids screaming, but it would probably will not help them: college is going to be much drier, or much more expensive - college towns are going to tax beer. More: here.

IRS Help: Getting a Refund

2007-02-12T10:00:00.000-08:00

You should get a refund within 3 weeks (if you filed electronically) and 8 weeks (if filed by paper, with paper check).

If you haven't received your refund by then, you can contact the following:
* Online: go to the IRS website and click on "Where's My Refund".
* Over the phone: call the Refund Hotline at 800-829-1954

Donating to Charity and Taxes - New Rules

2007-02-12T09:58:00.000-08:00

Starting with this filing, there are new rules regarding donations to charity.

* Clothing and household items donated to charity after Aug. 17, 2006, must be in good condition or better if you want them to be deductible.

* In addition, starting this year for next year's tax filings for most taxpayers, all cash contributions to a qualified charity must be supported by a dated bank record or a dated receipt.

File Your Taxes for Free!

2007-02-12T09:54:00.000-08:00

Yes, you might be able to file your taxes for free. The IRS Free File program offers free tax preparation and electronic-filing services through private partners for 70 percent of the nation's taxpayers, or 95 million Americans; To qualify, taxpayers must have an adjusted gross income of less than $52,000, filing jointly or individually. The alliance partners are required to offer free filing of federal taxes, but they can charge for filing state taxes.

Money Laundering and the IRS

2007-02-07T10:44:00.000-08:00

According to an answer on Google Answers, if you get a bank transaction of $10,000 or more (even in parts), you might be controlled by money laundering laws.

The Financial Crimes Enforcement Network (FinCEN) has the option to report such a transaction/deposit, among other elements, to the IRS.

IRS Begins Processing Returns Claiming Extender Deductions;Urges Taxpayers to File Electronically, Check on Phone Tax Refund

2007-02-07T09:40:00.001-08:00

The Internal Revenue Service has started processing tax returns that claim key tax provisions renewed by legislation enacted in December and urged taxpayers not to overlook the one-time telephone tax refund. After completing planned updates to its systems to accommodate the “extender” changes, the IRS began processing on Saturday both e-file and paper tax returns claiming deductions for state and local sales taxes, higher education tuition and fees, and educator expenses. The IRS emphasized that using e-file is the easiest and most accurate way to file a return, including any return claiming extender-related benefits. Makers of tax-preparation software have updated their products to incorporate these reinstated tax breaks.

(Media-Newswire.com) - WASHINGTON — The Internal Revenue Service has started processing tax returns that claim key tax provisions renewed by legislation enacted in December and urged taxpayers not to overlook the one-time telephone tax refund.

After completing planned updates to its systems to accommodate the “extender” changes, the IRS began processing on Saturday both e-file and paper tax returns claiming deductions for state and local sales taxes, higher education tuition and fees, and educator expenses.

The IRS emphasized that using e-file is the easiest and most accurate way to file a return, including any return claiming extender-related benefits. Makers of tax-preparation software have updated their products to incorporate these reinstated tax breaks.

“As we always do, we encourage taxpayers who think they may claim these deductions to file electronically,” said IRS Commissioner Mark W. Everson. “They will get their refunds in half the time, and e-file greatly reduces the chance for making an error compared to using a paper return.”

While taxpayers using software will fill out their returns as normal, taxpayers claiming the extender provisions on paper returns will have to take special steps. Because the extender legislation was enacted after the new tax forms went to print last year, separate lines for the affected deductions were omitted from 2006 individual income tax forms. For that reason, people filling out a paper return must use existing lines on the current Form 1040 and Schedule A to claim the three major extenders provisions.

Paper filers should use these steps:

State and Local General Sales Tax Deduction

Claim the deduction for state and local general sales taxes on Schedule A (Form 1040), line 5, “State and local income taxes.”
Enter "ST" on the dotted line to the left of line 5 to indicate that the general sales tax deduction is being claimed, instead of the deduction for state and local income tax.
The new on-line sales tax calculator, launched last month on IRS.gov, can help taxpayers figure this deduction. In addition, Publication 600, which includes the state and local sales tax tables, a worksheet and instructions for figuring the deduction, was mailed last month to six million filers of paper 1040 forms.
Higher Education Tuition and Fees Deduction

Claim the deduction for up to $4,000 in higher education tuition and fees on Form 1040, Line 35, “Domestic production activities deduction.”
Enter "T" on the blank space to the left of that line entry if claiming the tuition and fees deduction, or "B" if claiming both a deduction for domestic production activities and the deduction for tuition and fees. For those entering "B," attach a breakdown showing the amounts claimed for each deduction.
Educator Expense Adjustment to Income

Educators claim the deduction for up to $250 of out-of-pocket classroom expenses on Form 1040, line 23, “Archer MSA Deduction.”
Enter "E" on the dotted line to the left of that line entry if claiming educator expenses, or "B" if claiming both an Archer MSA deduction and the deduction for educator expenses on Form 1040. If entering "B," taxpayers must attach a breakdown showing the amounts claimed for each deduction.
Form 1040A cannot be used to claim either the tuition and fees deduction or the educator expense deduction.

Whether claiming the extender deductions or not, the IRS reminds taxpayers that a one-time refund of the telephone excise tax on long-distance and bundled service is available on this year’s return. One in three early filers are failing to request this special refund, and although many of them are likely not eligible, others may qualify and not know it. Use the Telephone Excise Tax Refund section on the front page of IRS.gov to learn more about this special refund.

Several Interesting Tax Deducations

2007-02-07T09:37:00.000-08:00

The Columbus Disptach reports:

Telephone users, energysavvy homeowners and parents of older teens should pay special attention at tax time this year. Many changes affecting 2006 tax returns are aimed squarely at you.
And there’s a bit of bad news for packrats. Taking a tax deduction for donating the deteriorating junk in your attic to charity is harder. Household goods and clothing donated after Aug. 17 must be in "good used condition or better" to qualify for the deduction, available to taxpayers who itemize.

Two more days for the tax returns

2007-02-07T09:36:00.000-08:00

The Eagle Tribune reports:

Procrastinating taxpayers, you're in luck. You have two extra days to file
your returns this year, thanks to Paul Revere and Abraham Lincoln.The regular
filing deadline is April 15, but that's a Sunday this year. April 16 is Patriots
Day in Massachusetts - home to the Internal Revenue Service's processing center
in Andover - as well as Emancipation Day in Washington, D.C. So the IRS has
extended the deadline for everyone in the country to Tuesday, April 17."It
automatically goes to the next business day," IRS spokeswoman Peggy Riley
said.

Another Place to Get Free Help with Taxes

2007-02-07T09:32:00.000-08:00

There are several organisations offering free help with your taxes, as we reported yesterday.

One idea that should be also mentioned is to chekc with a local college or university, which has an accounting program. In more cases than not, they would have a clinic that would help you.

IRS needs better tracking for E-Help Desk

2007-02-07T09:31:00.000-08:00

The Treasury Inspector General has published a report, where it calls the IRS to improve its expanding e-services, especially its E-Help Desk program, as taxpayers go to the Internet for tax services more frequently.

More here

Consultant? Employees? What's the deal with "Section 1706"?

2007-02-05T04:24:00.000-08:00

Are consultants considered employees? contrators?

This question was asked on Google Answers:

"I have my own S-Corp of which I am the sole owner/employee. My S-Corp is the "consultant", the agency is the "Company". How should I respond (to clause 1706)? "

There are several interesting points in the answer.

Here is a quote from one of the links, that would explain Section 1706 better:

"In a nutshell, "Section 1706" made it so that the default presumption for computer consultants was that they were employees, unless proved otherwise.
For businesses known as "technical services firms" who provide technical services to their customers (including computer consultants), Section 1706 removed so-called "Section 530 employment tax safe havens" that otherwise apply to all other types of businesses using independent contractors. As a result, if a technical services firm hires a high-tech worker to perform services for that firm's customers as an independent contractor, then the firm must prove to the IRS that this worker is an independent contractor under the centuries-old "common law" employment test. Even if the firm shows a strong reason for hiring the worker as an independent contractor -- for example, the IRS approved the firm's practices in a prior audit, or the treatment conforms to industry practice or a court ruling, all of which are "safe havens" under Section 530 -- Section 1706 makes these reasons irrelevant for technical services firms.The harm to high-tech firms and workers caused by Section 1706 is more than theoretical. Technical services firms which use independent contractors -- even if they act in good faith -- can be severely penalized by the IRS and forced to pay "unpaid" employment taxes although the contractors have already paid these same taxes in full! In fact, some IRS auditors use Section 1706 to claim "incorporated" high-tech independent contractors are not legitimate. Left with only the common law employment test to prove a worker's status to the IRS, many high-tech firms will not hire any independent contractors. They do not want to "attract" an almost-certain IRS audit because the time and expenses to fight the IRS means that even "winning" the audit is really a "losing" situation. "

You can also read IRS' own definition of contractors vs. employees:
http://www.irs.gov/taxtopics/tc762.html

More about it:
IRS Section 1706 Compliant for Your Safety and Peace of Mind
http://www.hasys.com/systems/independent.html

Tax Demand? A Tax Attorney Could Reduce It (By Pearl Deloria)

2007-02-05T04:22:00.000-08:00

Do you dread seeing those brown envelopes with the IRS or Inland Renenue address on them? Do you put them on one side until you have summoned the courage to read their latest demand for money? Does the thought of filing your tax return stress you out unbearably?

Tax laws in most countries are exceedingly complex and open to interpretation by the courts. Every taxpayer wants to legally reduce the taxes he or she pays to the minimum. Even in these days of more easily understood forms there is still lots of scope for interpretation of tax laws.

Government tax raising departments like the IRS employ highly paid attorneys to persuade the courts in favor of the government's interpretation of tax laws. The more persuasive an attorney has proved to be the more they can charge. The IRS attorneys are paid from the bottomless pocket of the taxpayer, so they only employ the best and most persuasive people.

The individual or company taxpayer has only one option – to employ a tax attorney themselves.

Your attorney will mediate between you and the IRS and help you to reach a negotiated settlement. Where disputed amounts are large, it is usual for the taxpayer to reach a negotiated settlement for a much smaller amount than the original claim. This is why people employ tax attorneys. If the case goes to court then you will be represented and have the best advice available, a much better position to be in than facing the might of government alone.

There are so many complexities to every tax system because of the cumulative effect of thousands of pressure groups over the past 200 years. Each group manages to persuade the government of the day that they will get more votes if they accede to the group's demands. The government acquiesces and another complexity is added to the tax regime.

Many of these pressure groups' demands could be reversed, but that would require immense political courage, which is not present in most democratically elected politicians.

More Free Help from the IRS

2007-02-05T04:12:00.000-08:00

Yes, if you need help, you might get free tax help from the IRS! Here are such programs:

* VITA: The IRS’ Volunteer Income Tax Assistance program offers help to taxpayers with incomes of $39,000 or less. Most sites also offer electronic filing. To find a VITA site near you, call 1-800-829-1040.

* TCE: Tax Counseling for the Elderly helps people age 60 and older; many of the volunteer counselors come from AARP’s Tax-Aide program, which provides tax help for the elderly at 9,000 sites across the country. To find one near you, call AARP at 1-888-227-7669, or visit AARP’s Web site at http://www.aarp.org/money/taxaide.

* Military personnel: Military service members and spouses can get tax help here and abroad through a program overseen by the Armed Forces Tax Council. The IRS provides tax software and tax prep training. For more information, see IRS Publication 3, ‘‘Armed Forces’ Tax Guide,’’ available on the IRS Web site, www.irs.gov, or order a free copy by calling 1-800-TAX-FORM (1-800-829-3676).

* The IRS itself provides free tax help in several ways:Its Web site, http://www.irs.gov, has information on any tax topic, publication, instructions or form. You can research tax questions, order forms and publications, view IRS bulletins and use interactive tools for making certain calculations.Phone assistance. The IRS has several toll-free numbers to call for tax help. For individuals, call 1-800-829-1040; for businesses, 1-800-829-4933. People with hearing impairments should call 1-800-829-4059.

* IRS Taxpayer Assistance Centers provide help in person at walk-in sites. Go to www.irs.gov/localcontacts/index.html and click on your state to view the centers there. To find the site nearest you, you can also enter your five-digit ZIP code in the ‘‘Walk-in Site’’ search box.

* Taxpayer Advocate: This independent office within the IRS doesn’t help you file your tax return, but it does help with unresolved tax issues or problems with the IRS. Call the Taxpayer Advocate toll-free at 1-877-777-4778.

Make sure you know the proper tax treatment for hired help

2007-02-05T04:10:00.000-08:00

What do you write regarding hired help? Eva Rosenberg of MarketWatch has the answers:

"In 2004 only 243,702 tax returns included the Schedule H, Household Employment Tax form. IRS spokesman Eric Smith says those households paid an average of $3,635 in tax for those household employees. Considering the 9.5 million tax returns that report medical expenses high enough to deduct them, over 6 million tax returns taking advantage of the dependent care credit and nearly 26 million tax returns claiming child tax credits, there's no doubt that many people with household help are not paying their household employment taxes."

More here.

Income tax help: Filing tips for seniors

2007-02-05T04:06:00.000-08:00

Someone asks at the Brandenton Herald:

Can you give me the 2006 limits where seniors don't have to file a federal tax
return? I manage a senior citizens center and many of our retirees live on very
limited incomes and may not need to bother. Also, can you tell me if Social
Security benefits are taxable? I start receiving benefits in a few years myself
and have heard several conflicting things.

You can read the answer here.

In addition, check out the tips on this site for free and paid help, and especially this tip for senior citizens:

The TCE stands for "Tax Cunseling for the Elderly" and helps people age 60 and older; many of the volunteer counselors come from AARP’s Tax-Aide program, which provides tax help for the elderly at 9,000 sites across the country. To find one near you, call AARP at 1-888-227-7669, or visit AARP’s Web site at http://www.aarp.org/money/taxaide.

Free Tax Help From the IRS

2007-02-01T03:49:00.000-08:00

Free Tax Help From the IRS
By Richard Chapo

We are from the government and we are here to help you. Most people would run screaming at this point. In this case, it is good news. The IRS is offer free tax help

The tax code is huge. Throw in the regulations interpreting the code and it is gargantuan. Each of us is assumed to understand each and every provision under law. Nobody does and nobody really believes anyone could. So, how do we solve the dilemma? Well, the IRS offers free tax help that you can access in just about any way possible.

If you prefer communicating through the web, the IRS has you covered. They actually have an excellent website. You can visit it to find out information on just about anything. For questions on your 1040 form, the best option is to go to the “1040 Central” section. It covers just about everything you can think of in relation to the 1040 beast.

If you can’t find an answer online, you can actually call up the IRS. The very notion of this usually would put the fear of God in any person. In this case, however, you are calling them so there is nothing to fear. It is when they call you that it is time to move the family to Canada. Regardless, you can call 800-829-1040 for personal tax issues or 800-829-4933 for business tax issues. Of course, keep in mind the IRS often gives the wrong advice!

Can you visit an IRS office to talk to someone about a tax issue or form you don’t understand? Not really. If you owe back taxes or are getting scary letters from the IRS, you can contact a local Taxpayer Assistance Center. Keep in mind, however, that the “assistance” often comes with a lot of glaring and questions regarding why you haven’t paid up.

A quick word about tax forms. You can get tax forms at most major libraries and post offices. You can also get them at local IRS offices, but they are usually picked over pretty quickly.

Richard A. Chapo is with BusinessTaxRecovery.com - providing daily tax tips.

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MSN: Problems with IRS Help

2007-02-01T03:42:00.000-08:00

In an interesting an long article, MSN Jeff Schnepper explains the problems experienced by people seeking help with the IRS.

"Two decades ago, Ralph Nader's Tax Reform Research Group prepared 22 identical tax reports based on the fictional economic plight of a married couple with one child. Identical copies were submitted to 22 different IRS offices around the country.Each office came up with an entirely different tax figure."

However, there are ways that you can get help:
"Need a tax form? No problem. You can get them (..) at the IRS Web site. Call (703) 368-9694 and have a fax machine ready, and you can get forms faxed back to you. No fax machine? Just call (800) TAX-FORM and the IRS will mail them to you. You can even get Braille tax products at that number. You can hear recorded messages on about 150 tax topics by calling (800) 829-4477. If you need an Employer Identification Number, you can get one immediately by calling (800) 829-4933. Have a question you need to talk to someone about? Call the Tax Help Line at (800) 829-1040. "

However,
"In a 2005 test of the system by the Treasury Inspector General, 35% of answers were incorrect."

And...
"The bad news is that IRS advice is not binding -- whether given in person or in print. You also can't rely on IRS publications, even the famed Publication 17, Your Federal Income Tax."

More about the IRS site

2007-02-01T03:37:00.000-08:00

Cumberland Times has published a list of helpful tips about the IRS website and how to get help with your taxes from there, with the arrival of W-2s in your postal box:

The Internal Revenue Service is offering an enhanced self-help Web site for
taxpayers with questions about their 2006 returns."1040 Central" can be accessed
at www.irs.gov, under the
individuals tab. The Web site offers user-friendly tools that will make
completing your 2006 return quicker and easier. Regardless of which form you
use, 1040 Central offers links and other information to ease the filing
process:
* Tax law changes: 1040 Central highlights changes in the tax law that
directly affect taxpayers.
* Current news: Access the latest IRS news releases, tax tips and customer
alerts.
* Answers to important questions: 1040 Central includes frequently asked
questions on a broad range of tax issues.
* Forms and Publications: 1040 Central has links to all the tax forms,
instructions and publications you may need.
* Filing Options: The Web site includes links to IRS e-file and Free File,
easing the process for filing online. IRS e-file is the safest and most accurate
way to file and the fastest way to get your refund.
* Track your refund: Check your refund by clicking on the Where's My Refund
link on 1040 Central.
* Find information about special tax credits like the Earned Income Tax
Credit.The IRS Web site offers a host of valuable tips for taxpayers filing
their own returns. A few moments at the site might spare you some hassles, and
even save you money on your taxes.

IRS Enlists Help in Collecting Delinquent Taxes

2007-01-23T07:52:00.000-08:00

Do you think you need help dealing with the IRS? Well, the IRS needs help dealing with you lot!

In August 2006, the New York Times Reported that:

I.R.S. will turn over data on 12,500 taxpayers — each of whom owes $25,000
or less in back taxes — to three collection agencies.

more here

Get IRS Help for Free!

2007-01-23T07:35:00.000-08:00

Do you need help with your taxes? (aren't we all...)
Short of money? (aren't we all...)
Need some advice or counselling on how to deal with the IRS?

There are several places that offer free IRS counselling or help. Yes, for free, gratis, garnisht!

Here are several sites that can assist with your IRS problems:

* Address your Senator/Congressman. If youa re right and they are wrong, you might get a warrior on your side, one who's being paid by --- well, by the tax payers.

* wwwebtax - a helpful directory of all kinds of IRS advices and forms, for free.

* http://taxes.about.com/- free tips from an about.com "expert", in this case William Perez, who is a tax professional.

* Right into the lion's den! Yes, you can get lots of forms, advices and instructions - for free of course - from the IRS homepage!

What to do if you need help with the IRS

2007-01-12T08:50:00.000-08:00

You're in some kind of trouble with the IRS. These kind of things happen, hopefully to other people (those we don't really like, though we mean no harm even in those cases).

What should you do? First of all, breath deep. There is a solution for every problem. There are experts - legal ones, accountants, psychologists - who can help you if you have problems with the IRS and need help.

Your first step - as funny is it may sound, is to go to the homepage of those "Fishfaced enemies of the people" (if to quote The Producers).

You should also contact an attorney, an accountancy firm specialising in dealing with such problems, and try to find free IRS advice online. We'll follow up here with advices and names of people you might want to turn to.