Read more background and content in the original article posted at http://www.accountingweb.com/topic/tax/2009-recap-celebrities-tax-woes
Duane “Dog” Chapman, A&E reality show, Dog and the Bounty Hunter
Radio and TV host, Alexis Stewart, daughter of Martha Stewart
Survivor winner Richard Hatch
Actors Nicolas Cage and Val Kilmer
Miguel Ferrer (RoboCop) [6]
Chris Tucker [7]
Robin Givens [8]
Hip Hop group Blackeyed Peas
Singers Aaron Carter, Foxy Brown and Toni Braxton
Rappers Method Man, Nas and DMX
Race car driver Helio Castroneves
Pro golfer Jim Thorpe
Boxer Floyd Mayweather
Other sports figures: Ron Darling, Jerry Koosman, Darren McCarty, Julio Cesar Chavez, Michael Vick, and Diego Armando Maradona
Photographer Annie Liebovitz
Politicians Timothy Geithner, Tom Daschle, Nancy Killefer, Al Franken, John Kerry and California governor, Arnold Schwarzenegger.
Most of these people have the wherewithal to fight the IRS. You probably don't. That's why legitimate tax strategies - done right the first time - are so important. Be certain that you rely only on proven, legal tactics (not scams, not off-shore trusts) backed up by court cases and IRS regs.
The time is now to strategically plan to stop wasting money on taxes you are not required to pay. Sooner implementation will result in greater savings, so act now!
12/26/09
What documentation do you need, in order to deduct the business use of
- cell phones and similar telecommunications equipment?
- passenger automobiles and trucks?
- home computers and peripherals?
- cameras?
- audio-visual recorders and players?
- other property of a type generally used for entertainment, recreation or amusement?
The above are examples of "Listed Property," which means that the IRS finds them susceptible to non-deductible personal use. The business use of Listed Property is subject to stringent documentation requirements in order to be deductible. The personal use is not deductible.
The required documentation is 1) the amount of the expense, 2) the time and place of the use of the listed property, and 3) the business purposes of the use. In addition, the total non-business use must be identifiable, even if each personal use is not documented.
For cell phones, itemized call lists from the service provider, while not conclusive, are the beginning of the required documentation. These need to be expanded with notations that document the purpose of each business call.
Most of us are familiar with logging requirements for passenger autos and trucks and the mileage books that help document business use. A similar log for the business use of a camera or a/v equipment will meet the strict requirements.
Obviously, this process is burdensome. Nevertheless, Listed Property has been singled out by the IRS as needing special documentation to substantiate and defend a tax deduction for business use.
The time is now to strategically plan to stop wasting money on taxes you are not required to pay. Most changes need to be in place by December 31 to reduce your current year taxes, but implementation at any time starts saving you money, so act now!
- cell phones and similar telecommunications equipment?
- passenger automobiles and trucks?
- home computers and peripherals?
- cameras?
- audio-visual recorders and players?
- other property of a type generally used for entertainment, recreation or amusement?
The above are examples of "Listed Property," which means that the IRS finds them susceptible to non-deductible personal use. The business use of Listed Property is subject to stringent documentation requirements in order to be deductible. The personal use is not deductible.
The required documentation is 1) the amount of the expense, 2) the time and place of the use of the listed property, and 3) the business purposes of the use. In addition, the total non-business use must be identifiable, even if each personal use is not documented.
For cell phones, itemized call lists from the service provider, while not conclusive, are the beginning of the required documentation. These need to be expanded with notations that document the purpose of each business call.
Most of us are familiar with logging requirements for passenger autos and trucks and the mileage books that help document business use. A similar log for the business use of a camera or a/v equipment will meet the strict requirements.
Obviously, this process is burdensome. Nevertheless, Listed Property has been singled out by the IRS as needing special documentation to substantiate and defend a tax deduction for business use.
The time is now to strategically plan to stop wasting money on taxes you are not required to pay. Most changes need to be in place by December 31 to reduce your current year taxes, but implementation at any time starts saving you money, so act now!
12/19/09
States scraping for additional tax revenue from non-filers
As an example, effective Jan. 1, 2010, Indiana will allow for a penalty of $10 per day (to a maximum of $500) to be assessed on taxpayers that fail to file an annual individual income-tax return — even if they do not owe tax or are due a refund. Indiana has required taxpayers to file an individual income tax return under these circumstances for decades. However, the possibility of a penalty being assessed is new.
The State says the penalty will not be automatically assessed on taxpayers who have acted on their own to file voluntarily after the annual filing deadline. However, if the Department identifies a non-filer through its own cross-checks and other discovery methods, a penalty will be assessed.
The time is now to strategically plan to stop wasting money on taxes you are not required to pay. Most changes need to be in place by December 31 to reduce your current year taxes, and sooner implementation results in greater savings, so act now!
The State says the penalty will not be automatically assessed on taxpayers who have acted on their own to file voluntarily after the annual filing deadline. However, if the Department identifies a non-filer through its own cross-checks and other discovery methods, a penalty will be assessed.
The time is now to strategically plan to stop wasting money on taxes you are not required to pay. Most changes need to be in place by December 31 to reduce your current year taxes, and sooner implementation results in greater savings, so act now!
12/1/09
Pick your poison - paying your taxes with credit or debit cards
If a taxpayer is paying tax liabilities with a credit card, he probably has not strategically planned for reducing his taxes. Sometimes, however, this method of payment may be the only way to pay the taxes. The companies that process the payment charge the taxpayer a convenience fee of 2.49% of the tax payment for credit card payments. That's a $25 fee on a $1,000 tax bill.
The same service providers process debit card payments of tax liabilities, but for those they charge only a flat fee of $3.95, regardless of the amount of the tax payment.
The time is now to strategically plan to stop wasting money on taxes you are not required to pay. Most changes need to be in place by December 31 to reduce your current year taxes, and sooner implementation results in greater savings, so act now!
The same service providers process debit card payments of tax liabilities, but for those they charge only a flat fee of $3.95, regardless of the amount of the tax payment.
The time is now to strategically plan to stop wasting money on taxes you are not required to pay. Most changes need to be in place by December 31 to reduce your current year taxes, and sooner implementation results in greater savings, so act now!
11/25/09
Nov. 30 is the deadline to reverse, replace or reinvest any unwanted 2009 Required Minimum Distributions (payouts) from retirement plans.
The time is now to strategically plan to stop wasting money on taxes you are not required to pay. Most changes need to be in place by December 31 to reduce your current year taxes, and sooner implementation results in greater savings, so act now!
The time is now to strategically plan to stop wasting money on taxes you are not required to pay. Most changes need to be in place by December 31 to reduce your current year taxes, and sooner implementation results in greater savings, so act now!
11/12/09
Is your tax planning impacted by how many public employees and retirees are on the state dole?
Who pays the benefits for public employees and Medicaid benefits in your state? These authors (http://www.forbes.com/2009/11/11/taxes-employment-government-business-beltway-tax-burdens.html) argue that private sector employment pays and the ratio of private employment to public employees and beneficiaries is an indicator of your state's financial health and future prospects. New Mexico and Mississippi have almost a 1:1 ratio. Increases in benefit enrollment and government pensions coupled with decreases in private employment would further impact state budgets and ability to pay contractural obligations. Tax strategies should consider this indicator among other inputs; for example, are some states' tax-free municipal bonds going to be adversely impacted by these conditions in poor economic times?
The time is now to strategically plan to stop wasting money on taxes you are not required to pay. Most changes need to be in place by December 31 to reduce your current year taxes, and sooner implementation results in greater savings, so act now!
The time is now to strategically plan to stop wasting money on taxes you are not required to pay. Most changes need to be in place by December 31 to reduce your current year taxes, and sooner implementation results in greater savings, so act now!
11/5/09
The worst states for taxes
The Tax Foundation in Washington, D.C., has released its annual State Business Tax Climate Index. Based upon 112 variables in five component indexes, the best rankings reward those states that more completely and consistently apply the following principles:
•Good state tax systems levy low, flat rates on the broadest bases possible, and
•they treat all taxpayers the same. Variation in the tax treatment of different industries favors one economic activity or decision over another.
•The more riddled a tax system is with politically-motivated preferences the less likely it is that business decisions will be made in response to market forces.
The ten worst states (from least worst to ultimate worst) are: Vermont (#41),
Wisconsin, Minnesota, Rhode Island, Maryland, Iowa, Ohio, California, New York, and New Jersey (#50).
Anyone in any state would benefit from pro-active tax planning, but if you live in these states, you stand to benefit the most from tax strategies that minimize the amount of tax that you legally owe. If you live in those states, you stand to lose the most as you continue to postpone active strategies that could reduce your overall tax burden.
Tea party protests don’t reduce your taxes – pro-active tax strategies do!
The full study can be found on the Tax Foundation website: www.taxfoundation.org/files/bp59.pdf.
The time is now to strategically plan to stop wasting money on taxes you are not required to pay. Most changes need to be in place by December 31 to reduce your current year taxes, and sooner implementation results in greater savings, so act now!
•Good state tax systems levy low, flat rates on the broadest bases possible, and
•they treat all taxpayers the same. Variation in the tax treatment of different industries favors one economic activity or decision over another.
•The more riddled a tax system is with politically-motivated preferences the less likely it is that business decisions will be made in response to market forces.
The ten worst states (from least worst to ultimate worst) are: Vermont (#41),
Wisconsin, Minnesota, Rhode Island, Maryland, Iowa, Ohio, California, New York, and New Jersey (#50).
Anyone in any state would benefit from pro-active tax planning, but if you live in these states, you stand to benefit the most from tax strategies that minimize the amount of tax that you legally owe. If you live in those states, you stand to lose the most as you continue to postpone active strategies that could reduce your overall tax burden.
Tea party protests don’t reduce your taxes – pro-active tax strategies do!
The full study can be found on the Tax Foundation website: www.taxfoundation.org/files/bp59.pdf.
The time is now to strategically plan to stop wasting money on taxes you are not required to pay. Most changes need to be in place by December 31 to reduce your current year taxes, and sooner implementation results in greater savings, so act now!
9/21/09
Bloomberg News Service reports that the Internal Revenue Service will audit 6,000 U.S. companies to determine whether they pay all their required employment taxes.
The IRS said the audits will show how often companies (a) misclassify workers as contractors in order to reduce tax obligations, (b) fail to pay taxes on fringe benefits such as personal use of company cars, and (c) improperly pay taxes for company executives.
The IRS is especially suspicious of Sole Proprietorships. Expect the bulk of the audits to hit unincorporated small businesses.
Part of strategic tax planning is taking action that will increase your chances of surviving an audit.
The time is now to strategically plan to stop wasting money on taxes you are not required to pay. Most changes need to be in place by December 31 to reduce your current year taxes, and sooner implementation results in greater savings, so act now!
The IRS said the audits will show how often companies (a) misclassify workers as contractors in order to reduce tax obligations, (b) fail to pay taxes on fringe benefits such as personal use of company cars, and (c) improperly pay taxes for company executives.
The IRS is especially suspicious of Sole Proprietorships. Expect the bulk of the audits to hit unincorporated small businesses.
Part of strategic tax planning is taking action that will increase your chances of surviving an audit.
The time is now to strategically plan to stop wasting money on taxes you are not required to pay. Most changes need to be in place by December 31 to reduce your current year taxes, and sooner implementation results in greater savings, so act now!
9/11/09
BusinessWeek Magazine (Sept 10, 2009) says, "investors have turned away from anything remotely risky."
The next big risk is not declines in portfolio value, it's TAXES. Taxes will devour retirement savings if not planned properly.
The time is now to strategically plan to stop wasting money on taxes you are not required to pay. Most changes need to be in place by December 31 to reduce your current year taxes, and sooner implementation results in greater savings, so act now!
The next big risk is not declines in portfolio value, it's TAXES. Taxes will devour retirement savings if not planned properly.
The time is now to strategically plan to stop wasting money on taxes you are not required to pay. Most changes need to be in place by December 31 to reduce your current year taxes, and sooner implementation results in greater savings, so act now!
9/1/09
2010 will be the year for Roth conversions.
In 2010, previously ineligible taxpayers will qualify to convert traditional IRA funds to Roths. And, the resulting tax can be spread over two years. However, there are always traps and landmines in the tax code and this process is easy to mismanage. If you have traditional IRAs, get professional advice about whether it is advantageous for you over the long run to convert in 2010 and, if so, how.
The time is now to strategically plan to stop wasting money on taxes you are not required to pay. Most changes need to be in place by December 31 to reduce your current year taxes, and sooner implementation results in greater savings, so act now!
The time is now to strategically plan to stop wasting money on taxes you are not required to pay. Most changes need to be in place by December 31 to reduce your current year taxes, and sooner implementation results in greater savings, so act now!
7/21/09
The IRS's Inspector General, in a report released July 20, said the IRS does a poor job overseeing the paid tax preparers used by more than half the nation's taxpayers.
Most tax preparers in most states are not subject to any special regulations or prerequisites. In those jurisdictions, anyone can operate as a paid tax preparer. There is a special class of nationwide tax preparers that the IRS does regulate closely - they are Enrolled Agents (EA). EAs have passed a rigorous two-day, four part test conducted by the IRS. Then, EAs maintain their certification through continuing education that is subject to IRS approval. In tax court, EAs have equal status with lawyers and CPAs.
I am an Enrolled Agent who welcomes IRS oversight and scrutiny. It makes sense to include the advice of an Enrolled Agent in your tax planning.
The time is now to strategically plan to stop wasting money on taxes you are not required to pay. Most changes need to be in place by December 31 to reduce your current year taxes, and sooner implementation results in greater savings, so act now!
Most tax preparers in most states are not subject to any special regulations or prerequisites. In those jurisdictions, anyone can operate as a paid tax preparer. There is a special class of nationwide tax preparers that the IRS does regulate closely - they are Enrolled Agents (EA). EAs have passed a rigorous two-day, four part test conducted by the IRS. Then, EAs maintain their certification through continuing education that is subject to IRS approval. In tax court, EAs have equal status with lawyers and CPAs.
I am an Enrolled Agent who welcomes IRS oversight and scrutiny. It makes sense to include the advice of an Enrolled Agent in your tax planning.
The time is now to strategically plan to stop wasting money on taxes you are not required to pay. Most changes need to be in place by December 31 to reduce your current year taxes, and sooner implementation results in greater savings, so act now!
5/28/09
Recently, Indiana officials revised estimated state revenue forecasts downward nearly $1.1 billion, from previous estimates just a month ago. If a state won't cut its spending to match revenue shortfalls, where will it get the needed money? From new and increased fees and taxes. Higher tax rates are coming.
The time is now to strategically plan to stop wasting money on taxes you are not required to pay and stop overpaying your taxes by taking advantage of every potential tax incentive. Most changes need to be in place by December 31 to reduce your current year taxes, and sooner implementation results in greater savings, so act now!
The time is now to strategically plan to stop wasting money on taxes you are not required to pay and stop overpaying your taxes by taking advantage of every potential tax incentive. Most changes need to be in place by December 31 to reduce your current year taxes, and sooner implementation results in greater savings, so act now!
5/24/09
“There are 2 sets of tax laws in this country, one for the informed, and one for the uninformed”
Judge Learned Hand, Supreme Court Justice
You owe it to yourself to get good, forward-looking advice that will put you in the "informed" category of taxpayers - who pay only the required tax, as based upon solid, court-tested tax regulations.
The time is now to strategically plan to stop wasting money on taxes you are not required to pay and stop overpaying your taxes by taking advantage of every potential tax incentive. Most changes need to be in place by December 31 to reduce your current year taxes, and sooner implementation results in greater savings, so act now!
Judge Learned Hand, Supreme Court Justice
You owe it to yourself to get good, forward-looking advice that will put you in the "informed" category of taxpayers - who pay only the required tax, as based upon solid, court-tested tax regulations.
The time is now to strategically plan to stop wasting money on taxes you are not required to pay and stop overpaying your taxes by taking advantage of every potential tax incentive. Most changes need to be in place by December 31 to reduce your current year taxes, and sooner implementation results in greater savings, so act now!
5/18/09
Buy a primary residence before December 2, 2009
Buy a primary residence before December 2, 2009 in order to receive a refundable tax credit of 10 percent of the purchase price or $8,000, whichever is lower. Restricted to buyers who haven't owned principal residences for three years prior to making the purchase. The full credit is restricted to taxpayers with adjusted gross income of $150,000 (Married Filing Jointly) or $75,000 (others). A refundable credit creates a refund to you, even if you paid no tax or had no withholding.
The time is now to strategically plan to stop wasting money on taxes you are not required to pay and stop overpaying your taxes by taking advantage of every potential tax incentive. Most changes need to be in place by December 31 to reduce your current year taxes, and sooner implementation results in greater savings, so act now!
The time is now to strategically plan to stop wasting money on taxes you are not required to pay and stop overpaying your taxes by taking advantage of every potential tax incentive. Most changes need to be in place by December 31 to reduce your current year taxes, and sooner implementation results in greater savings, so act now!
5/6/09
Double-dipping encouraged
Some tax incentives reward expenditures in certain tax-favored categories of expenses or investments. Even greater tax efficiency results when you combine tax strategies: Use the savings from one tax strategy to implement the second tax-savings strategy.
The time is now to strategically plan to stop wasting money on taxes you are not required to pay. Most changes need to be in place by December 31 to reduce your current year taxes, and sooner implementation results in greater savings, so act now!
The time is now to strategically plan to stop wasting money on taxes you are not required to pay. Most changes need to be in place by December 31 to reduce your current year taxes, and sooner implementation results in greater savings, so act now!
1/21/09
Saving for College - the most vexing problem
The New York Times (January 3, 2009) said "saving for college is one of the most vexing problems in all of personal finance."
As true as that statement is, saving for college is also a basic goal for most American families. There are strategies that maximize tax benefits associate with saving for college. In fact, it's possible for some taxpayers to legally save for college with money previously spent on income tax payments.
The time is now to strategically plan to stop wasting money on taxes you are not required to pay.
As true as that statement is, saving for college is also a basic goal for most American families. There are strategies that maximize tax benefits associate with saving for college. In fact, it's possible for some taxpayers to legally save for college with money previously spent on income tax payments.
The time is now to strategically plan to stop wasting money on taxes you are not required to pay.
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