IR-2008-22, Feb. 21, 2008
WASHINGTON — In addition to providing stimulus payments to individuals, the Economic Stimulus Act of 2008 provides incentives to businesses. These incentives include a special 50-percent depreciation allowance for 2008 purchases and an increase in the small business expensing limitation for tax years beginning in 2008.
50-Percent Special Depreciation Allowance
Depreciation is an income tax deduction that allows a taxpayer to recover the cost or other basis of certain property over several years. It is an annual allowance for the wear and tear, deterioration or obsolescence of the property.
Under the new law, a taxpayer is entitled to depreciate 50 percent of the adjusted basis of certain qualified property during the year that the property is placed in service. This is similar to the special depreciation allowance was previously available for certain property placed in service generally before Jan. 1, 2005, often referred to as “bonus depreciation.” To qualify for the 50 percent special depreciation allowance under the new law, the property must be placed in service after Dec. 31, 2007, but generally before Jan. 1, 2009.
To reflect the new 50-percent special depreciation allowance, the IRS is developing a new version of the depreciation and amortization form for fiscal year filers. The new form will be designated as the 2007 Form 4562-FY.
Section 179 Expensing
In general, a qualifying taxpayer can elect to treat the cost of certain property as an expense and deduct it in the year the property is placed in service instead of depreciating it over several years. This property is frequently referred to as section 179 property, after the relevant section in the Internal Revenue Code.
Under the new law, a qualifying business can expense up to $250,000 of section 179 property purchased by the taxpayer in a tax year beginning in 2008. Absent this legislation, the 2008 expensing limit for section 179 property would have been $128,000. The $250,000 amount provided under the new law is reduced if the cost of all section 179 property placed in service by the taxpayer during the tax year exceeds $800,000.
The new law does not alter the section 179 limitation imposed on sport utility vehicles, which have an expense limit of $25,000.
Friday, February 22, 2008
Saturday, February 16, 2008
IRS Will Send Stimulus Payments Automatically Starting in May; Eligible Taxpayers Must File a 2007 Tax Return to Receive Rebate
IRS Will Send Stimulus Payments Automatically Starting in May; Eligible Taxpayers Must File a 2007 Tax Return to Receive Rebate
The Internal Revenue Service today advised taxpayers that in most cases they will not have to do anything extra this year to get the economic stimulus payments beginning in May.
“If you are eligible for a payment, all you have to do is file a 2007 tax return and the IRS will do the rest,” said Acting IRS Commissioner Linda Stiff.
The IRS will use information on the 2007 tax return filed by the taxpayer to determine eligibility and calculate the amount of the stimulus payments.
The IRS will begin sending taxpayers their payments in early May after the current tax season concludes. Payments to more than 130 million taxpayers will continue over several weeks during the spring and summer. A payment schedule for taxpayers will be announced in the near future.
Stimulus payments will be direct deposited for taxpayers selecting that option when filing their 2007 tax returns. Taxpayers who have already filed with direct deposit won't need to do anything else to receive the stimulus payment. For taxpayers who haven't filed their 2007 returns yet, the IRS reminds them that direct deposit is the fastest way to get both regular refunds and stimulus payments.
Most taxpayers just need to file a 2007 tax return as usual. No other action, extra form or call is necessary. This Web site will be the best information source for all updates and taxpayer questions.
In most cases, the payment will equal the amount of tax liability on the tax return, with a maximum amount of $600 for individuals ($1,200 for taxpayers who file a joint return).
The law also allows for payments for select taxpayers who have no tax liability, such as low-income workers or those who receive Social Security benefits or veterans’ disability compensation, pension or survivors’ benefits received from the Department of Veterans Affairs in 2007. These taxpayers will be eligible to receive a payment of $300 ($600 on a joint return) if they had at least $3,000 of qualifying income.
Qualifying income includes Social Security benefits, certain Railroad Retirement benefits, certain veterans’ benefits and earned income, such as income from wages, salaries, tips and self-employment. While these people may not be normally required to file a tax return because they do not meet the filing requirement, the IRS emphasizes they must file a 2007 return in order to receive a payment.
Recipients of Social Security, certain Railroad Retirement and certain veterans’ benefits should report their 2007 benefits on Line 14a of Form 1040A or Line 20a of Form 1040. Taxpayers who already have filed but failed to report these benefits can file an amended return by using Form 1040X. The IRS is working with the Social Security Administration and Department of Veterans Affairs to ensure that recipients are aware of this issue.
“Some people receiving Social Security and veterans’ benefits may not realize they will need to file a tax return to get the stimulus payment,” Stiff said. “To reach these people, the IRS and Treasury will work closely with the Department of Veterans Affairs, the Social Security Administration and key beneficiary groups on outreach efforts.”
Eligible taxpayers who qualify for a payment will receive an additional $300 for each child who qualifies for the child tax credit.
Payments to higher income taxpayers will be reduced by 5 percent of the amount of adjusted gross income above $75,000 for individuals and $150,000 for those filing jointly.
Taxpayers must have valid Social Security Numbers to qualify for the stimulus payment. If married filing jointly, both taxpayers must have a valid Social Security Number. And, children must have valid Social Security Numbers to be eligible as qualifying children.
Taxpayers who file their tax returns using an Individual Taxpayer Identification Number issued by the IRS or any number issued by the IRS are ineligible. Also ineligible are individuals who can be claimed as dependents on someone else’s return, or taxpayers who file Form 1040-NR, 1040-PR or 1040-SS.
To accommodate taxpayers who file tax returns later in the year, the IRS will continue sending payments until December 31, 2008. The IRS also cautions taxpayers that if they file their 2007 tax return and then move their residence that they should file a change of address card with the U.S. Postal Service.
The IRS will mail two informational notices to taxpayers advising them of the stimulus payments. However, taxpayers should be alert for tax rebate scams such as telephone calls or e-mails claiming to be from the IRS and asking for sensitive financial information. The IRS will not call or e-mail taxpayers about these payments nor will it ask for financial information. Scam e-mails and information about scam calls should be forwarded to phishing@irs.gov.
Related Items:
FS-2008-15, Facts about the 2008 Stimulus Payments
FS-2008-16, Stimulus Payments: Instructions for Low-Income Workers and Recipients of Social Security and Certain Veterans’ Benefits
Tax forms and instructions
The Internal Revenue Service today advised taxpayers that in most cases they will not have to do anything extra this year to get the economic stimulus payments beginning in May.
“If you are eligible for a payment, all you have to do is file a 2007 tax return and the IRS will do the rest,” said Acting IRS Commissioner Linda Stiff.
The IRS will use information on the 2007 tax return filed by the taxpayer to determine eligibility and calculate the amount of the stimulus payments.
The IRS will begin sending taxpayers their payments in early May after the current tax season concludes. Payments to more than 130 million taxpayers will continue over several weeks during the spring and summer. A payment schedule for taxpayers will be announced in the near future.
Stimulus payments will be direct deposited for taxpayers selecting that option when filing their 2007 tax returns. Taxpayers who have already filed with direct deposit won't need to do anything else to receive the stimulus payment. For taxpayers who haven't filed their 2007 returns yet, the IRS reminds them that direct deposit is the fastest way to get both regular refunds and stimulus payments.
Most taxpayers just need to file a 2007 tax return as usual. No other action, extra form or call is necessary. This Web site will be the best information source for all updates and taxpayer questions.
In most cases, the payment will equal the amount of tax liability on the tax return, with a maximum amount of $600 for individuals ($1,200 for taxpayers who file a joint return).
The law also allows for payments for select taxpayers who have no tax liability, such as low-income workers or those who receive Social Security benefits or veterans’ disability compensation, pension or survivors’ benefits received from the Department of Veterans Affairs in 2007. These taxpayers will be eligible to receive a payment of $300 ($600 on a joint return) if they had at least $3,000 of qualifying income.
Qualifying income includes Social Security benefits, certain Railroad Retirement benefits, certain veterans’ benefits and earned income, such as income from wages, salaries, tips and self-employment. While these people may not be normally required to file a tax return because they do not meet the filing requirement, the IRS emphasizes they must file a 2007 return in order to receive a payment.
Recipients of Social Security, certain Railroad Retirement and certain veterans’ benefits should report their 2007 benefits on Line 14a of Form 1040A or Line 20a of Form 1040. Taxpayers who already have filed but failed to report these benefits can file an amended return by using Form 1040X. The IRS is working with the Social Security Administration and Department of Veterans Affairs to ensure that recipients are aware of this issue.
“Some people receiving Social Security and veterans’ benefits may not realize they will need to file a tax return to get the stimulus payment,” Stiff said. “To reach these people, the IRS and Treasury will work closely with the Department of Veterans Affairs, the Social Security Administration and key beneficiary groups on outreach efforts.”
Eligible taxpayers who qualify for a payment will receive an additional $300 for each child who qualifies for the child tax credit.
Payments to higher income taxpayers will be reduced by 5 percent of the amount of adjusted gross income above $75,000 for individuals and $150,000 for those filing jointly.
Taxpayers must have valid Social Security Numbers to qualify for the stimulus payment. If married filing jointly, both taxpayers must have a valid Social Security Number. And, children must have valid Social Security Numbers to be eligible as qualifying children.
Taxpayers who file their tax returns using an Individual Taxpayer Identification Number issued by the IRS or any number issued by the IRS are ineligible. Also ineligible are individuals who can be claimed as dependents on someone else’s return, or taxpayers who file Form 1040-NR, 1040-PR or 1040-SS.
To accommodate taxpayers who file tax returns later in the year, the IRS will continue sending payments until December 31, 2008. The IRS also cautions taxpayers that if they file their 2007 tax return and then move their residence that they should file a change of address card with the U.S. Postal Service.
The IRS will mail two informational notices to taxpayers advising them of the stimulus payments. However, taxpayers should be alert for tax rebate scams such as telephone calls or e-mails claiming to be from the IRS and asking for sensitive financial information. The IRS will not call or e-mail taxpayers about these payments nor will it ask for financial information. Scam e-mails and information about scam calls should be forwarded to phishing@irs.gov.
Related Items:
FS-2008-15, Facts about the 2008 Stimulus Payments
FS-2008-16, Stimulus Payments: Instructions for Low-Income Workers and Recipients of Social Security and Certain Veterans’ Benefits
Tax forms and instructions
Wednesday, February 13, 2008
IRS Offers New Online Help Tools for 2008 Tax Filers
Listen In: Audio Interview on New IRS.gov Tools
WASHINGTON — Things have gotten easier for taxpayers who need help preparing their federal returns this year. The IRS has enhanced both Publication 17 and Where’s My Refund?, two key electronic tools available on this Web site, IRS.gov, the official Web site of the IRS. These improvements will help any taxpayer with Internet access find answers to tax questions quickly, prepare returns accurately and file on time.
Publication 17, Your Federal Income Tax –– The online version of Publication 17 now contains electronic links allowing users to more quickly navigate this widely used publication. Both the downloadable PDF and the html version of the 2007 Publication 17 contain more than 800 hyperlinks. The links allow users to jump immediately to other parts of the publication, reducing the time it takes to access information. In accordance with the Americans with Disabilities Act, the html version of Publication 17 on IRS.gov is accessible to visually impaired taxpayers.
Where’s My Refund? — The online refund-tracking tool Where’s My Refund? is now available in Spanish as well as English. Taxpayers can access the Spanish version through either the Where’s My Refund? page on IRS.gov or the Spanish-language portal. The goal of this new feature is to make tax information available to taxpayers who don’t speak English or those who know English as a second language. Taxpayers without Internet access can get the same information about their refunds by calling the IRS Refund Hotline at 1-800-829-1954.
Official IRS Web Site Is IRS.gov
Taxpayers looking for the IRS online should type www.irs.gov into their Web browsers. Taxpayers should also beware of Web sites that may resemble IRS.gov but end in .com, .net, .org, .biz or any other domain name extension. For the genuine IRS Web site, it’s IRS.gov.
WASHINGTON — Things have gotten easier for taxpayers who need help preparing their federal returns this year. The IRS has enhanced both Publication 17 and Where’s My Refund?, two key electronic tools available on this Web site, IRS.gov, the official Web site of the IRS. These improvements will help any taxpayer with Internet access find answers to tax questions quickly, prepare returns accurately and file on time.
Publication 17, Your Federal Income Tax –– The online version of Publication 17 now contains electronic links allowing users to more quickly navigate this widely used publication. Both the downloadable PDF and the html version of the 2007 Publication 17 contain more than 800 hyperlinks. The links allow users to jump immediately to other parts of the publication, reducing the time it takes to access information. In accordance with the Americans with Disabilities Act, the html version of Publication 17 on IRS.gov is accessible to visually impaired taxpayers.
Where’s My Refund? — The online refund-tracking tool Where’s My Refund? is now available in Spanish as well as English. Taxpayers can access the Spanish version through either the Where’s My Refund? page on IRS.gov or the Spanish-language portal. The goal of this new feature is to make tax information available to taxpayers who don’t speak English or those who know English as a second language. Taxpayers without Internet access can get the same information about their refunds by calling the IRS Refund Hotline at 1-800-829-1954.
Official IRS Web Site Is IRS.gov
Taxpayers looking for the IRS online should type www.irs.gov into their Web browsers. Taxpayers should also beware of Web sites that may resemble IRS.gov but end in .com, .net, .org, .biz or any other domain name extension. For the genuine IRS Web site, it’s IRS.gov.
Tax Returns from Seven States Go to Different Centers
WASHINGTON — As some taxpayers begin to prepare their paper tax returns, the Internal Revenue Service notes that some may be sending their returns to a different service center than last year. Those who received a tax instruction booklet from the IRS in the mail and use the labels included with the booklet can be assured that their tax returns will go to the correct address. Taxpayers who e-file are not affected by these changes.
For tax year 2007, the mailing changes affect returns, with or without payments, from seven states: Iowa, Kansas, Kentucky, Oklahoma, Pennsylvania, West Virginia, and Wisconsin.
Taxpayers should send:
Returns from Iowa, Kansas, Oklahoma and Wisconsin to the IRS center in Fresno, California.
Returns from Kentucky to the IRS center in Austin, Texas.
Returns from Pennsylvania and West Virginia to the IRS center in Kansas City, Missouri.
For taxpayers who file paper returns, the correct center addresses are on labels inside the tax packages they receive in the mail. Taxpayers who do not receive a package should refer to the back cover of the instructions to Form 1040, 1040A or 1040EZ.
Taxpayers who e-file will not be affected by these changes. Last year, 57 percent of all individual income tax filers chose to e-file their tax returns.
For tax year 2007, the mailing changes affect returns, with or without payments, from seven states: Iowa, Kansas, Kentucky, Oklahoma, Pennsylvania, West Virginia, and Wisconsin.
Taxpayers should send:
Returns from Iowa, Kansas, Oklahoma and Wisconsin to the IRS center in Fresno, California.
Returns from Kentucky to the IRS center in Austin, Texas.
Returns from Pennsylvania and West Virginia to the IRS center in Kansas City, Missouri.
For taxpayers who file paper returns, the correct center addresses are on labels inside the tax packages they receive in the mail. Taxpayers who do not receive a package should refer to the back cover of the instructions to Form 1040, 1040A or 1040EZ.
Taxpayers who e-file will not be affected by these changes. Last year, 57 percent of all individual income tax filers chose to e-file their tax returns.
IRS Announces Energy Bond Allocations
WASHINGTON — The Internal Revenue Service today announced 312 projects eligible to be financed with tax-credit bonds under the Clean Renewable Energy Bonds (CREB) program.
The U.S. Treasury Secretary is authorized to distribute volume cap allocations of tax-credit bonds through the CREB program, which was created by the Energy Tax Incentives Act of 2005 and the Tax Relief and Health Care Act of 2006.
In November 2006, the IRS announced the first round of volume cap allocations, which allocated $800 million of volume cap (some of which was subsequently relinquished) to 610 projects. (The announcement was in IR-2006-181 available on the IRS website.) State and local governments as well as electrical cooperatives are able to issue tax-credit bonds under the program.
Internal Revenue Code Section 54 authorizes the allocation of $1.2 billion of tax-credit bond volume cap to fund projects that can generate clean renewable energy. State and local government borrowers are limited to no more than $750 million of the volume cap with the rest going to qualified mutual or cooperative electric companies.
CREB volume cap allocations are awarded on a “smallest-to-largest” project basis. IRS Notices 2007-26 and 2005-98 further explain the program and can also be found on the IRS website.
The IRS has completed the review of applications for $897 million of CREB financing submitted pursuant to Notice 2007-26 and has notified applicants of the results. The second round included 342 applications from 33 states, pertaining to 395 projects. Approximately $477 million of CREB volume cap was available for allocation to qualified issuers.
The deadline for making an application was July 13, 2007. There were 156 proposed projects in California, 57 in Minnesota, 23 in New Jersey, 17 in Washington, 13 in Nebraska, 12 in Montana, 11 in Illinois and 10 in Wisconsin. Applications ranged in size from $15,000 to $38.5 million.
Governmental borrowers submitted applications totaling $728 million to finance 367 projects with an average project size of about $2 million. Governmental borrowers in 28 states will receive $263 million of volume cap allocations ranging from $15,000 to $2.95 million. Approved projects of governmental borrowers include: 138 solar facilities, 88 wind facilities, 41 landfill gas facilities, 12 hydropower facilities, three closed-loop biomass facilities, three trash combustion facilities and one open-loop biomass facility.
Cooperative borrowers submitted applications totaling about $170 million to finance 28 projects with an average project size of about $6.1 million. Cooperative borrowers will receive about $143 million of volume cap allocations for projects in 13 states ranging from $300,000 to $30 million. Approved cooperative projects include: 14 wind facilities, four landfill gas facilities, six hydropower facilities, one solar facility and one open-loop biomass facility.
Disclosure restrictions prohibit releasing taxpayer-specific information without written consent. Notice 2007-26 included a Consent to Public Disclosure Statement. The 310 projects whose applicants signed the consent form can be viewed online.
The U.S. Treasury Secretary is authorized to distribute volume cap allocations of tax-credit bonds through the CREB program, which was created by the Energy Tax Incentives Act of 2005 and the Tax Relief and Health Care Act of 2006.
In November 2006, the IRS announced the first round of volume cap allocations, which allocated $800 million of volume cap (some of which was subsequently relinquished) to 610 projects. (The announcement was in IR-2006-181 available on the IRS website.) State and local governments as well as electrical cooperatives are able to issue tax-credit bonds under the program.
Internal Revenue Code Section 54 authorizes the allocation of $1.2 billion of tax-credit bond volume cap to fund projects that can generate clean renewable energy. State and local government borrowers are limited to no more than $750 million of the volume cap with the rest going to qualified mutual or cooperative electric companies.
CREB volume cap allocations are awarded on a “smallest-to-largest” project basis. IRS Notices 2007-26 and 2005-98 further explain the program and can also be found on the IRS website.
The IRS has completed the review of applications for $897 million of CREB financing submitted pursuant to Notice 2007-26 and has notified applicants of the results. The second round included 342 applications from 33 states, pertaining to 395 projects. Approximately $477 million of CREB volume cap was available for allocation to qualified issuers.
The deadline for making an application was July 13, 2007. There were 156 proposed projects in California, 57 in Minnesota, 23 in New Jersey, 17 in Washington, 13 in Nebraska, 12 in Montana, 11 in Illinois and 10 in Wisconsin. Applications ranged in size from $15,000 to $38.5 million.
Governmental borrowers submitted applications totaling $728 million to finance 367 projects with an average project size of about $2 million. Governmental borrowers in 28 states will receive $263 million of volume cap allocations ranging from $15,000 to $2.95 million. Approved projects of governmental borrowers include: 138 solar facilities, 88 wind facilities, 41 landfill gas facilities, 12 hydropower facilities, three closed-loop biomass facilities, three trash combustion facilities and one open-loop biomass facility.
Cooperative borrowers submitted applications totaling about $170 million to finance 28 projects with an average project size of about $6.1 million. Cooperative borrowers will receive about $143 million of volume cap allocations for projects in 13 states ranging from $300,000 to $30 million. Approved cooperative projects include: 14 wind facilities, four landfill gas facilities, six hydropower facilities, one solar facility and one open-loop biomass facility.
Disclosure restrictions prohibit releasing taxpayer-specific information without written consent. Notice 2007-26 included a Consent to Public Disclosure Statement. The 310 projects whose applicants signed the consent form can be viewed online.
Tuesday, February 12, 2008
Mortgage Workouts, Now Tax-Free for Many Homeowners; Claim Relief on Newly-Revised IRS Form
WASHINGTON — Homeowners whose mortgage debt was partly or entirely forgiven during 2007 may be able to claim special tax relief by filling out newly-revised Form 982 and attaching it to their 2007 federal income tax return, according to the Internal Revenue Service.
Normally, debt forgiveness results in taxable income. But under the Mortgage Forgiveness Debt Relief Act of 2007, enacted Dec. 20, taxpayers may exclude debt forgiven on their principal residence if the balance of their loan was less than $2 million. The limit is $1 million for a married person filing a separate return. Details are on Form 982 and its instructions, available now on IRS.gov.
“The new law contains important provisions for struggling homeowners,” said Acting IRS Commissioner Linda Stiff. “We urge people with mortgage problems to take full advantage of the valuable tax relief available.”
The late-December enactment means that reporting procedures for this law change were not incorporated into tax-preparation software or IRS forms. For that reason, people using tax software should check with their provider for updates that include the revised Form 982. Similarly, the IRS is now updating its systems and expects to begin accepting electronically-filed returns that include Form 982 by March 3. The paper Form 982 is now being accepted, but the IRS reminds affected taxpayers to consider filing electronically, which greatly reduces errors and speeds refunds.
The new law applies to debt forgiven in 2007, 2008 or 2009. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, may qualify for this relief. In most cases, eligible homeowners only need to fill out a few lines on Form 982 (specifically, lines 1e, 2 and 10b).
The debt must have been used to buy, build or substantially improve the taxpayer's principal residence and must have been secured by that residence. Debt used to refinance qualifying debt is also eligible for the exclusion, but only up to the amount of the old mortgage principal, just before the refinancing.
Debt forgiven on second homes, rental property, business property, credit cards or car loans does not qualify for the new tax-relief provision. In some cases, however, other kinds of tax relief, based on insolvency, for example, may be available. See Form 982 for details.
Borrowers whose debt is reduced or eliminated receive a year-end statement (Form 1099-C) from their lender. For debt cancelled in 2007, the lender was required to provide this form to the borrower by Jan. 31, 2008. By law, this form must show the amount of debt forgiven and the fair market value of any property given up through foreclosure.
The IRS urges borrowers to check the Form 1099-C carefully. Notify the lender immediately if any of the information shown is incorrect. Borrowers should pay particular attention to the amount of debt forgiven (Box 2) and the value listed for their home ( Box 7).
Normally, debt forgiveness results in taxable income. But under the Mortgage Forgiveness Debt Relief Act of 2007, enacted Dec. 20, taxpayers may exclude debt forgiven on their principal residence if the balance of their loan was less than $2 million. The limit is $1 million for a married person filing a separate return. Details are on Form 982 and its instructions, available now on IRS.gov.
“The new law contains important provisions for struggling homeowners,” said Acting IRS Commissioner Linda Stiff. “We urge people with mortgage problems to take full advantage of the valuable tax relief available.”
The late-December enactment means that reporting procedures for this law change were not incorporated into tax-preparation software or IRS forms. For that reason, people using tax software should check with their provider for updates that include the revised Form 982. Similarly, the IRS is now updating its systems and expects to begin accepting electronically-filed returns that include Form 982 by March 3. The paper Form 982 is now being accepted, but the IRS reminds affected taxpayers to consider filing electronically, which greatly reduces errors and speeds refunds.
The new law applies to debt forgiven in 2007, 2008 or 2009. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, may qualify for this relief. In most cases, eligible homeowners only need to fill out a few lines on Form 982 (specifically, lines 1e, 2 and 10b).
The debt must have been used to buy, build or substantially improve the taxpayer's principal residence and must have been secured by that residence. Debt used to refinance qualifying debt is also eligible for the exclusion, but only up to the amount of the old mortgage principal, just before the refinancing.
Debt forgiven on second homes, rental property, business property, credit cards or car loans does not qualify for the new tax-relief provision. In some cases, however, other kinds of tax relief, based on insolvency, for example, may be available. See Form 982 for details.
Borrowers whose debt is reduced or eliminated receive a year-end statement (Form 1099-C) from their lender. For debt cancelled in 2007, the lender was required to provide this form to the borrower by Jan. 31, 2008. By law, this form must show the amount of debt forgiven and the fair market value of any property given up through foreclosure.
The IRS urges borrowers to check the Form 1099-C carefully. Notify the lender immediately if any of the information shown is incorrect. Borrowers should pay particular attention to the amount of debt forgiven (Box 2) and the value listed for their home ( Box 7).
Thursday, February 7, 2008
Tax Returns from Seven States Go to Different Centers
IR-2008-15, Feb. 7, 2008
WASHINGTON — As some taxpayers begin to prepare their paper tax returns, the Internal Revenue Service notes that some may be sending their returns to a different service center than last year. Those who received a tax instruction booklet from the IRS in the mail and use the labels included with the booklet can be assured that their tax returns will go to the correct address. Taxpayers who e-file are not affected by these changes.
For tax year 2007, the mailing changes affect returns, with or without payments, from seven states: Iowa, Kansas, Kentucky, Oklahoma, Pennsylvania, West Virginia, and Wisconsin.
Subscribe to IRS Newswire
IR-2008-15, Feb. 7, 2008
WASHINGTON — As some taxpayers begin to prepare their paper tax returns, the Internal Revenue Service notes that some may be sending their returns to a different service center than last year. Those who received a tax instruction booklet from the IRS in the mail and use the labels included with the booklet can be assured that their tax returns will go to the correct address. Taxpayers who e-file are not affected by these changes.
For tax year 2007, the mailing changes affect returns, with or without payments, from seven states: Iowa, Kansas, Kentucky, Oklahoma, Pennsylvania, West Virginia, and Wisconsin.
Taxpayers should send:
- Returns from Iowa, Kansas, Oklahoma and Wisconsin to the IRS center in Fresno, California.
- Returns from Kentucky to the IRS center in Austin, Texas.
- Returns from Pennsylvania and West Virginia to the IRS center in Kansas City, Missouri.
Subscribe to IRS Newswire
Sunday, February 3, 2008
Wow now this is crazy!
Ireland Eliminates Plastic Grocery Bags with 33-Cent Tax; ATM Receipts, Chewing Gum Are Next
Interesting article in the New York Times: Motivated by a Tax, Irish Spurn Plastic Bags, by Elisabeth Rosenthal:
In 2002, Ireland passed a tax on plastic bags; customers who want them must now pay 33 cents per bag at the register. There was an advertising awareness campaign. And then something happened that was bigger than the sum of these parts. Within weeks, plastic bag use dropped 94%. Within a year, nearly everyone had bought reusable cloth bags, keeping them in offices and in the backs of cars. Plastic bags were not outlawed, but carrying them became socially unacceptable — on a par with wearing a fur coat or not cleaning up after one’s dog. ...
In January almost 42 billion plastic bags were used worldwide, according to reusablebags.com; the figure increases by more than half a million bags every minute. A vast majority are not reused, ending up as waste — in landfills or as litter. Because plastic bags are light and compressible, they constitute only 2 percent of landfill, but since most are not biodegradable, they will remain there. ...
Ireland has moved on with the tax concept, proposing similar taxes on customers for A.T.M. receipts and chewing gum.
Original Survivor doesn't survive the US District Court
Survivor Winner Richard Hatch Loses Appeal of Tax Evasion Conviction in First Circuit
United States v. Hatch, No. 06-1902 (1st Cir. 2/1/08)
Richard Hatch, the first winner of the CBS reality tv show "Survivor," appeals from his convictions and sentence on three counts of filing false tax returns, in violation of 26 U.S.C. §§ 7201 and 7206(1), after a jury trial in the United States District Court for the District of Rhode Island.
Hatch makes four arguments on appeal: (1) that the district court violated his Sixth Amendment rights by curtailing Hatch's explanation of why he believed the show's producers had paid the taxes on his "Survivor" winnings; (2) that, in a variety of ways, the court improperly limited the defense's right to crossexamine; (3) that the court wrongly allowed the government to use what Hatch calls "unqualified experts" while excluding some of the testimony of Hatch's own expert; and (4) that his sentence was unreasonably harsh. After reviewing the record and the arguments, we affirm the convictions on all three counts and the sentence.
Wednesday, January 30, 2008
What to do about IRS Scams...
After posting about the different types of scams going on now I figured it would also be beneficial if I also enlightened you on what to do if you come across one of these scams. Below are the instructions from the IRS on what you should do and the precautions you should take.
What to Do
Anyone wishing to access the IRS Web site should initiate contact by typing the IRS.gov address into their Internet address window, rather than clicking on a link in an e-mail or opening an attachment.
Those who have received a questionable e-mail claiming to come from the IRS may forward it to a mailbox the IRS has established to receive such e-mails, phishing@irs.gov, using instructions contained in an article titled “How to Protect Yourself from Suspicious E-Mails or Phishing Schemes.” Following the instructions will help the IRS track the suspicious e-mail to its origins and shut down the scam. Find the article by visiting IRS.gov and entering the words “suspicious e-mails” into the search box in the upper right corner of the front page.
Those who have received a questionable telephone call that claims to come from the IRS may also use the phishing@irs.gov mailbox to notify the IRS of the scam.
The IRS has issued previous warnings on scams that use the IRS to lure victims into believing the scam is legitimate. More information on identity theft, phishing and telephone scams using the IRS name, logo or spoofed (copied) Web site is available on this Web site. Enter the terms “phishing,” “identity theft” or “e-mail scams” into the search box in the upper right corner of the front page.
Related Items:
- FS-2008-9, Identity Theft E-Mails Scams a Growing Problem
- IR-2007-109, IRS Warns Taxpayers of New E-mail Scams
- Suspicious e-Mails and Identity Theft
Here are some additional sites you might be interested in.
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IRS Reports new Scams
Since I know that I'm probably one of the few people that surfs through the IRS's website daily I figured I would update everyone on the new E-mail and telephone scams. These scams were very dangerous in the past b/c the scammers actually used the IRS's name in their emails and in their phone conversations. Most of the people reported that they were asked for their SSN along with other person information. Here is the latest report from the IRS on the Email and Telephone scams.
IR-2008-11, Jan. 30, 2008
WASHINGTON — The Internal Revenue Service today warned taxpayers to beware of several current e-mail and telephone scams that use the IRS name as a lure. The IRS expects such scams to continue through the end of tax return filing season and beyond.
The IRS cautioned taxpayers to be on the lookout for scams involving proposed advance payment checks. Although the government has not yet enacted an economic stimulus package in which the IRS would provide advance payments, known informally as rebates to many Americans, a scam which uses the proposed rebates as bait has already cropped up.
The goal of the scams is to trick people into revealing personal and financial information, such as Social Security, bank account or credit card numbers, which the scammers can use to commit identity theft.
Typically, identity thieves use a victim’s personal and financial data to empty the victim’s financial accounts, run up charges on the victim’s existing credit cards, apply for new loans, credit cards, services or benefits in the victim’s name, file fraudulent tax returns or even commit crimes. Most of these fraudulent activities can be committed electronically from a remote location, including overseas. Committing these activities in cyberspace allows scamsters to act quickly and cover their tracks before the victim becomes aware of the theft.
People whose identities have been stolen can spend months or years — and their hard-earned money — cleaning up the mess thieves have made of their reputations and credit records. In the meantime, victims may lose job opportunities, may be refused loans, education, housing or cars, or even get arrested for crimes they didn't commit.
The most recent scams brought to IRS attention are described in the following post.
Here are some additional sites you might be interested in.
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IRS Phone Call Scam
As mentioned above the IRS put out a warning today for scams involving the IRS. These scams can range from phone calls from people claiming to be with the IRS to emails supposedly sent from the IRS. I would like to stress that the IRS DOES NOT send out emails to the general public and that the IRS does not force people to use direct deposit for their refunds. Here is the latest update on the Phone Scams reported by the IRS.
Paper Check Phone Call
In a current telephone scam, a caller claims to be an IRS employee who is calling because the IRS sent a check to the individual being called. The caller states that because the check has not been cashed, the IRS wants to verify the individual’s bank account number. The caller may have a foreign accent.
In reality, the IRS leaves it entirely up to the individual to choose to cash or not cash a paper check. The IRS has no business need to know, and does not ask for, bank account or similar information, except when taxpayers indicate on their tax return that they are opting for the direct electronic deposit of their refund. In that case, however, it is the individual’s responsibility to provide the IRS with the correct bank routing and account numbers on the tax return; the IRS does not contact taxpayers to verify the information.
Here are some additional sites you might be interested in.
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IRS E-Mail Scam updated
As mentioned above the IRS put out a warning today for scams involving the IRS. These scams can range from phone calls from people claiming to be with the IRS to emails supposedly sent from the IRS. I would like to stress that the IRS DOES NOT send out emails to the general public and that the IRS does not force people to use direct deposit for their refunds. Here is the latest update on the E-Mail scams being sent out.
Changes to Tax Law e-Mail
This bogus e-mail is addressed to businesses, accountants and “Treasury” managers. It instructs them to download information on tax law changes by clicking on a series of links to publications on businesses, estate taxes, excise taxes, exempt organizations and IRAs and other retirement plans. The IRS believes that clicking on a link downloads malware onto the recipient’s computer. Malware is malicious code that can take over the victim’s computer hard drive, giving someone remote access to the computer, or it could look for passwords and other information and send them to the scamster. There are other types of malware, as well.
The urls contained in the link are not legitimate IRS Web addresses. All IRS.gov Web page addresses begin with http://www.irs.gov/.
Here are some additional sites you might be interested in.
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Additional IRS E-Mail Scam
As mentioned above the IRS put out a warning today for scams involving the IRS. These scams can range from phone calls from people claiming to be with the IRS to emails supposedly sent from the IRS. I would like to stress that the IRS DOES NOT send out emails to the general public and that the IRS does not force people to use direct deposit for their refunds. Here is the latest update on the E-Mail scams being sent out.
Audit e-Mail
Another new scam brought to IRS attention contains features not seen before by the IRS. Using a technique calculated to get almost anyone’s attention, the e-mail notifies the recipient that his or her tax return will be audited. This is the first scam of which the IRS is aware that uses this to get the victim to respond.
Unusual for a scam e-mail, it may contain a salutation in the body addressed to the specific recipient by name. Most scam e-mails seen by the IRS are sent using the same technique used by spammers, in which hundreds of thousands of messages are sent to potential victims based on Internet address. Because of the volume, the typical scam e-mail is not personalized.
This e-mail instructs the recipient to click on links to complete forms with personal and account information, which the scammers will use to commit identity theft.
This e-mail is a phony. The IRS does not send unsolicited, tax-account related e-mails to taxpayers.
Here are some additional sites you might be interested in.
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IRS E-Mail Scams
As mentioned above the IRS put out a warning today for scams involving the IRS. These scams can range from phone calls from people claiming to be with the IRS to emails supposedly sent from the IRS. I would like to stress that the IRS DOES NOT send out emails to the general public and that the IRS does not force people to use direct deposit for their refunds. Here is the latest update on the E-Mail scams being sent out.
Refund e-Mail
The IRS has seen several variations of a refund-related bogus e-mail which falsely claims to come from the IRS, tells the recipient that he or she is eligible for a tax refund for a specific amount, and instructs the recipient to click on a link in the e-mail to access a refund claim form. The form asks the recipient to enter personal information that the scamsters can then use to access the e-mail recipient’s bank or credit card account.
In a new wrinkle, the current version of the refund scam includes two paragraphs that appear to be directed toward tax-exempt organizations that distribute funds to other organizations or individuals. The e-mail contains the name and supposed signature of the Director of the IRS’s Exempt Organizations business division.
This e-mail is a phony. The IRS does not send unsolicited e-mail about tax account matters to individual, business, tax-exempt or other taxpayers.
Filing a tax return is the only way to apply for a tax refund; there is no separate application form. Taxpayers who wish to find out if they are due a refund from their last annual tax return filing may use the “Where’s My Refund?” interactive application on this Web site, IRS.gov. The only official IRS Web site is located here at www.irs.gov.
Here are some additional sites you might be interested in.
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IRS Phone Call Scams
As mentioned above the IRS put out a warning today for scams involving the IRS. These scams can range from phone calls from people claiming to be with the IRS to emails supposedly sent from the IRS. I would like to stress that the IRS DOES NOT send out emails to the general public and that the IRS does not force people to use direct deposit for their refunds. Here is the latest update on the Phone Scams reported by the IRS.
Rebate Phone Call
At least one scheme using the word “rebate” as part of the lure has been identified. In that scam, consumers receive a phone call from someone identifying himself as an IRS employee. The caller tells the targeted victim that he is eligible for a sizable rebate for filing his taxes early. The caller then states that he needs the target’s bank account information for the direct deposit of the rebate. If the target refuses, he is told that he cannot receive the rebate.
This phone call is a scam. No legislation has yet been enacted that would allow the IRS to provide advance payments to taxpayers or that determines the details of those payments. Moreover, the IRS does not force taxpayers to use direct deposit. Those who opt for direct deposit do so by completing the appropriate section of their tax return, with bank routing and account information, when they file; the IRS does not gather the information by telephone.
Here are some additional sites you might be interested in.
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Daily Success Quote
Cherish your visions
and your dreams as they are the
children of your soul;
the blueprints of your ultimate
achievements.
~Napoleon Hill~
Sunday, January 27, 2008
Where is my refund?
So lately all I've been hearing is "Where is my refund?" Well after spending some time searching online this is what I've found. Here is a link that will help you find that lost refund.
Where is my refund?
Here are some additional sites you might be interested in.
Effectur
IRS Help 4 You
Tax Consultant Blogs
Brain's Blog
Ashley's Tax Blog
IRS Minds
IRS NEWS
Effectur
IRS Help 4 You
Tax Consultant Blogs
Brain's Blog
Ashley's Tax Blog
IRS Minds
IRS NEWS
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Is a tax rebate coming your way?
No doubt you’ve heard the “great” news that a deal on a stimulus package has been reached and that (if the Senate drafts a similarly worded bill [a big if!], the two are married, and the President signs it) checks will be in the mail as early as May or June. Whether you believe the naysayers that say we’re really just propping up the Chinese economy (or oil rich nations) because we’re borrowing from them to buy their goods or whether you believe the proponents that say this will boost own economy in magical ways the fact of the matter is a deal has been reached - so what is it? Essentially, it’s a removal of the 10% tax bracket for everyone with some modifications. It includes phaseouts that begin past annual incomes of $75,000 and a component that includes those working Americans that don’t earn enough to pay income taxes.
To get a clearer understanding of the rules, let’s walk up the income levels and explain how it works; beginning first with those filing their taxes as singles and then adding in families. How the phaseouts work, from what I can understand, is that you first determine eligibility (if you earned more than $3,000 and paid taxes) and then, if you fall in to the phaseout, start reducing your benefit.
Singles
Determine Eligibility:
If you earned less than $3,000 - unfortunately you’d get nothing.
If you earned more than $3,000 but paid no taxes, you’d get $300.
If you earned more than $3,000 and paid taxes, you get $600.
If you have children, add $300 per.
Determine Phaseout Reduction:
The phaseout levels begin at $75k and end at $87k, at a reduction of 5% per $1,000 over the lower limit. If you earn above $87k, you’re over and thus get nothing regardless of the math.
Couples
Determine Eligibility (appears to be the same as singles):
If you earned less than $3,000 - unfortunately you’d get nothing.
If you earned more than $3,000 but paid no taxes, you’d get $600.
If you earned more than $3,000 and paid taxes, you get $1,200.
If you have children, add $300 per.
Determine Phaseout Reduction:
The phaseout levels begin at $150k and end at $174, at a reduction of 5% per $1,000 over the lower limit. If you earned above $174k, you’re over and thus get nothing regardless of the math.
Some Common Examples
These are taken from a post by Gridking on Tickerform.org:
- An individual with $2,500 in earned income in 2007: Disqualified because income fell below the $3,000 threshold. No rebate.
- A married couple with no children, with adjusted gross income of $100,000 in 2007: Would qualify for the full $1,200 couples. A $1,200 rebate.
- A worker with one child, who earned $9,000 and owed no taxes in 2007: Would qualify for the $300 rebate available to individuals who pay no taxes but earned at least $3,000, plus an additional $300 for the child. A $600 rebate.
- A couple with income of $145,000 in 2007, with three children: Would qualify for the full $1,200 for couples, plus $300 for each child. A $2,100 rebate.
- A couple with income of $160,000 in 2007 with two children: Would qualify for a partial rebate, reduced by 5 percent for every $1,000 in income above the $150,000 threshold. An $1,800 rebate $1,200 for the couple plus $300 per child — would go down by 50 percent for this family. A $900 rebate.
- A couple with income of $200,000 and four children: Disqualified because their income exceeded $174,000, the phase-out limit. No rebate.
There were a few other salient details to the bill, including a temporary raising of the individual mortgage ceiling that Fannie Mae and Freddie Mac could purchase (FHA loan limits) - increasing it to a whopping $729,750 (up from $417,000), and business tax breaks for infrastructure investments.
Here are some additional sites you might be interested in.
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Friday, January 25, 2008
What you should know...
In order to be in compliance with the IRS you need to have filed for the past 6 years and the present year. Any years that are unfilled the IRS has the option of filing a SFR, Substitute for return. When they do this they file in the best interest of the treasury. They DO NOT give you the deductions that you would normally file b/c it is not in their best interest. When the IRS does file a SFR you are able to still file for that year and a majority of the time the amount you owe the IRS will go down. The IRS doesn't have to file a SFR for you though... If you were due a refund for that particular year they will not file a SFR b/c that would not be in their best interest. Like any professional will tell you you are better off filing every year and collecting what is due to you. If you have unfilled returns and you owe the IRS they will keep your refund to go towards the amount owed to them and will continue to add interest, close to 20%, and will continue to add the penalties. The penalties will continue until you have filed all of your returns and have also either entered into a payment arrangement or have paid the debt off in full. Most people think that b/c they don't' make enough money they don't' have to file but that is not always true.
That's all I'm writing for now but check back later for updates and more tax related information.
That's all I'm writing for now but check back later for updates and more tax related information.
Thursday, January 24, 2008
Daily Success Quote
~Seven Secrets Of Success~
There is no secret of success.
Success if for everyone.
Your life becomes better only when you become better.
There is no success without sacrifice.
Success is achieved in inches, not miles.
The greatest enemy of tomorrow's success is today's success.
No advice on success works unless you do.
There is no secret of success.
Success if for everyone.
Your life becomes better only when you become better.
There is no success without sacrifice.
Success is achieved in inches, not miles.
The greatest enemy of tomorrow's success is today's success.
No advice on success works unless you do.
Tax Freedom Day?
So lately i've been online just searching for random tax things. Well I came across an interesting article and thought it was pretty interesting so here it is.
Tax Freedom Day is the first day of the year in which a nation as a whole has theoretically earned enough income to fund its annual tax burden. It is annually calculated in the United States by the Tax Foundation—a Washington, D.C.-based tax research organization. Every dollar that is officially considered income by the U.S. government is counted, and every payment to the U.S. government that is officially considered a tax is counted. Taxes at all levels of government—local, state and federal—are included.
The concept of Tax Freedom Day was developed and copyrighted in 1948 by Florida businessman Dallas Hostetler, who calculated it each year for the next two decades. In 1971, Hostetler retired and transferred the copyright to the Tax Foundation. The Tax Foundation has calculated Tax Freedom Day for the United States ever since, using it as a tool for illustrating the proportion of national income diverted to fund the annual cost of government programs. In 1990, the Tax Foundation began calculating the specific Tax Freedom Day for each individual state.
Here are some additional sites you might be interested in.
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Wednesday, January 23, 2008
Moving Anytime Soon?
Thinking of moving anytime soon? Well here is a great article about states with no income tax that may help you when thinking of moving.
If you are considering relocating to a new state, taxes should be something you consider. Specifically, there are a number of states with no income tax.
States With No Income Tax
As you well know, paying taxes is a grind. Paying federal taxes is the biggest burden, but state income tax can quickly add up as well. There are, however, some states with no income tax. Depending on your earnings, this can save you hundreds or thousands of dollars a year when tax time rolls around.There are seven glorious states with no income tax. In no particular order, they are:
- Alaska
- Florida
- Nevada
- South Dakota
- Texas
- Washington
- Wyoming
At first glance, a lack of income tax may seem like a great thing. Generally, this is true, but you need to watch out. Many of these states make up the difference by collecting taxes in other ways. They may crank up their sales tax or property taxes for example. The particular approach varies from state to state, but they generally do something. The exceptions to this rule are Alaska and Nevada. Alaska derives most of its money from the oil companies. As you can probably guess, Nevada makes up the difference from the casinos.
If you are considering moving to another state, taxes are something you should definitely take into consideration. While a factor, they should probably not be the overriding one in your decision.
Here are some additional sites you might be interested in.
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A Great Introduction To Taxes
I've been searching different sites online for some tax articles that you might find interesting. Here is one that I found particularly interesting since it is an introduction to taxes.
Introduction to Tax - If you want to kill the mood at a gathering, just start talking about taxes. With this introduction to tax, hopefully you will see why it is not the beast it seems.
Introduction to Tax
Okay, I will admit it. I hate paying taxes just like you. Yes, it is just as frustrating and hard for me as it is for you. I groan. I get that pain in my sinuses. My eyes get dry and, yes, I occasionally create a new cuss word or two…or three. There is no escape for any of us.
When writing an introduction to tax, one is tempted to just complain endlessly. After all, it was President Jimmy Carter who said the U.S. tax system is a crime against humanity. While I tend to agree, the notion of paying taxes is not the total thievery it seems. At a basic level, we need to pay taxes.
In an ideal world, our taxes pay for things we need even if we don’t always recognize them. When you drive from here to there, you are driving on roads paid for by your taxes. Your toilet flushes because you pay taxes, and we all know how important that is. You, me and every American gets a basic education because we pay taxes. When our country is threatened, our taxes pay for a military to protect us. Given the mess in Iraq, you might feel differently about that last statement, but it was certainly true in both World Wars.
The point I am trying to make is our tax payments provide us with many basic services we need. Could they be privatized? Yes, but I am not sure I want a large corporation dictating how, when and how much it will cost my toilet to flush. In some areas, I personally feel we are better off with the government running things. You may feel differently, but that is the joy of being American. We get to form our own views and then be stubborn about changing them!
One area where we both can agree tax is evil has to do with pork. Pork is simply a term used to describe government programs that are not particularly necessary, but which Congress still spends tons of money on. These programs usual call for millions to be spent in a particular state for a particular thing. We read about them on the news or net and scream in outrage. But are we really outraged?
The funny thing about pork is it is outrageous if it sends money to an area other than our own. When one of our representatives, however, gets funding for a large project in our area, you will rarely hear a peep from us. The simple fact is most people view pork as a waste or our money unless we are getting it back. In our way of democracy, this is often how our representatives make sure they get another term. If we really felt differently, wouldn’t we vote them out of office? Doesn’t seem to happen all that much, does it?
This introduction to tax is not intended to make you smile when sending in your next check. It is merely intended to shine a slightly different light on the process that might make you think twice next time you are sitting on the toilet reading tax form 137289B, subsection d1, line 83a, paragraph 9f. Then again, it may not.
Introduction to Tax - If you want to kill the mood at a gathering, just start talking about taxes. With this introduction to tax, hopefully you will see why it is not the beast it seems.
Introduction to Tax
Okay, I will admit it. I hate paying taxes just like you. Yes, it is just as frustrating and hard for me as it is for you. I groan. I get that pain in my sinuses. My eyes get dry and, yes, I occasionally create a new cuss word or two…or three. There is no escape for any of us.
When writing an introduction to tax, one is tempted to just complain endlessly. After all, it was President Jimmy Carter who said the U.S. tax system is a crime against humanity. While I tend to agree, the notion of paying taxes is not the total thievery it seems. At a basic level, we need to pay taxes.
In an ideal world, our taxes pay for things we need even if we don’t always recognize them. When you drive from here to there, you are driving on roads paid for by your taxes. Your toilet flushes because you pay taxes, and we all know how important that is. You, me and every American gets a basic education because we pay taxes. When our country is threatened, our taxes pay for a military to protect us. Given the mess in Iraq, you might feel differently about that last statement, but it was certainly true in both World Wars.
The point I am trying to make is our tax payments provide us with many basic services we need. Could they be privatized? Yes, but I am not sure I want a large corporation dictating how, when and how much it will cost my toilet to flush. In some areas, I personally feel we are better off with the government running things. You may feel differently, but that is the joy of being American. We get to form our own views and then be stubborn about changing them!
One area where we both can agree tax is evil has to do with pork. Pork is simply a term used to describe government programs that are not particularly necessary, but which Congress still spends tons of money on. These programs usual call for millions to be spent in a particular state for a particular thing. We read about them on the news or net and scream in outrage. But are we really outraged?
The funny thing about pork is it is outrageous if it sends money to an area other than our own. When one of our representatives, however, gets funding for a large project in our area, you will rarely hear a peep from us. The simple fact is most people view pork as a waste or our money unless we are getting it back. In our way of democracy, this is often how our representatives make sure they get another term. If we really felt differently, wouldn’t we vote them out of office? Doesn’t seem to happen all that much, does it?
This introduction to tax is not intended to make you smile when sending in your next check. It is merely intended to shine a slightly different light on the process that might make you think twice next time you are sitting on the toilet reading tax form 137289B, subsection d1, line 83a, paragraph 9f. Then again, it may not.
Here are some additional sites you might be interested in.
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Daily Succes Quote
I found an old book that was given to me as a gift back in 2001. The book is all about success and has some great quotes that I would like to share with everyone...
"You will never change your life until you change something you do daily. The secret of your success is found in your daily routine."
~John C. Maxwell~
~John C. Maxwell~
New Report from the IRS
In the past the number of audits done by the IRS each year has continued to grow. Well this year won't be any different. Here is the press release that the IRS put out on the 17 pertaining to the 2007 enforcement and services results along with what to expect in the coming year.
The IRS continues to make strong progress in a number of key enforcement areas. The IRS is showing consistent improvements in areas critical to maintaining a fair, efficient tax system while bringing billions of additional dollars into the Treasury. At the same time, the agency continues to improve service to taxpayers.
The IRS enforcement efforts increased again in fiscal year 2007. For instance, during 2007 the IRS audited 84 percent more returns of individuals with incomes of $1 million or more than during 2006. Overall, enforcement revenue reached $59.2 billion, up from $48.7 billion in 2006 and nearly $34.1 billion in 2002.
Highlights of the enforcement and services numbers for fiscal year 2007, which ended on September 30, include:
Individuals
Audit rates increased in 2007, both for overall individual rates and for higher-income taxpayers.
- Audits of individuals with incomes of $1 million or more increased from 17,015 during fiscal year 2006 to 31,382 during fiscal year 2007, an increase of 84 percent. One out of 11 individuals with incomes of $1 million or more faced an audit in 2007.
- Overall, the total individual returns audited increased by 7 percent to 1,384,563 in 2007 from 1,293,681 in 2006. That’s the highest number since 1998.
- Audits of individuals with incomes over $200,000 reached 113,105 returns, up 29.2 percent from the prior year total of 87,885.
- The IRS increased audits of individual returns with income of $100,000 or more, auditing 293,188 of these returns in 2007, up 13.7 percent from last year’s total of 257,851.
- The IRS filed 3.8 million levies and almost 700,000 liens during 2007, an increase from the previous year and a substantial increase from five years earlier.
Businesses
In the business arena, the IRS continued efforts to review more returns of flow-through entities – partnerships and S Corporations. Our business numbers reflect that we have placed more emphasis in the growing area of these flow-through returns. While large corporate audits are down slightly, we have increased our focus on mid-market corporations – those with assets between $10 million and $50 million dollars. The IRS enforcement budget in 2007 was similar to the budget in 2006, and in times of flat budgets, the agency cannot increase activity across the board but must address the areas where there is growth and potential risk.
- Audits of S Corporations increased to 17,681 during 2007, up 26 percent from the prior year’s total of 13,984.
- Audits of partnerships increased to 12,195 during 2007, up almost 25 percent from the prior year’s total of 9,777.
- Audits of mid-market corporations increased to 4,473, up 6 percent from last year’s total of 4,218.
- Audits of businesses in general rose to 59,516, an increase of almost 14 percent from the prior year’s total of 52,223.
- Although the audits of large corporations dipped slightly in 2007 to 9,644 audits, the number of audits is up 14 percent from the fiscal year 2002 level.
Taxpayer Services
- More taxpayers chose to file electronically in 2007 than during the prior year, with 57 percent of individual tax filers choosing to e-file in 2007, up from 54 percent in 2006.
- More people visited the IRS internet site, IRS.gov. The IRS site was accessed more than 217 million times in 2007, up more than 10.5 percent from the same period in 2006.
- The IRS helped more taxpayers find out about their refunds through the agency’s internet-based system ‘Where’s my Refund?’ The system was accessed 32.1 million times during 2007, up 30 percent from last year’s usage of 24.7 million.
- As in the prior year, the IRS accuracy was 91 percent on tax law questions answered through its toll-free telephone service.
- The agency held a 94 percent customer satisfaction rating for its toll-free telephone service.
More detailed information is available in the FY 2007 IRS Enforcement and Services Tables and the FY 2007 Enforcement Revenue and Individual Audits Chart.
Here are some additional sites you might be interested in.
tax attorney, Tax lawyer, tax consultant, IRS help, IRS attorney, tax debt help, Tax help, tax advocacy, Stop IRS, IRS levy, tax debt, tax debt relief, IRS debt, Help with IRS, Tax Lien, Tax settlement, Tax amnesty, tax negotiation, installment agreement, settle irs, back taxes, owe taxes, currently non--collectible, delinquent taxes, wage garnishment, tax problem, irs tax problem, irs tax help, offer in compromise, tax expert, tax relief, irs tax relief, tax penalty, wage levy
Sunday, January 20, 2008
Daily Tax Quotes
Robert A. Heinlein
Be wary of strong drink. It can make you shoot at tax collectors... and miss.
Martin A. Sullivan
There may be liberty and justice for all, but there are tax breaks only for some.
.
If you are interested in more tax information check out these sites...
IRS Help 4 You
Tax Consultant Blogs
Brain's Blog
Ashley's Tax Blog
IRS Minds
IRS NEWS
Effectur
IRS Help 4 You
Tax Consultant Blogs
Brain's Blog
Ashley's Tax Blog
IRS Minds
IRS NEWS
Effectur
tax attorney, Tax lawyer, tax consultant, IRS help, IRS attorney, tax debt help, Tax help, tax advocacy, Stop IRS, IRS levy, tax debt, tax debt relief, IRS debt, Help with IRS, Tax Lien, Tax settlement, Tax amnesty, tax negotiation, installment agreement, settle irs, back taxes, owe taxes, currently non--collectible, delinquent taxes, wage garnishment, tax problem, irs tax problem, irs tax help, offer in compromise, tax expert, tax relief, irs tax relief, tax penalty, wage levy
Currently Non-Collectible
Another approach to taxpayers who owe the IRS money is what is known as "currently non-collectible" status (CNC). As the name implies, a person placed into this status is deemed unable to make any sort of payments and is not pursued by the IRS. This is not always an easy situation to acquire, as the IRS demands full financial documentation to prove a taxpayer has too little (or no) disposable income. This is probably the closest to tax amnesty anyone can attain realistically, but it is not permanent.
The IRS monitors the earnings of anyone placed into this status. If there is a notable gain in income and it becomes apparent the taxpayer could make payments, they are instantly dropped out of CNC and put back into collections. For a taxpayer whom this happens to, CNC is at least a temporary solution to getting the IRS to back off until finances change and resolution becomes possible. For others, such as retired people on fixed incomes with no likelihood of increasing, this is a blessing because it effectively waives the liability. For others this is a useful tool for riding out statutes. Sometimes an older liability is the highest of the collection, so if one can get at least one high year of liability to fall off, it will make any potential responsibility easier to deal with down the road.
If you are interested in more tax information check out these sites...
tax attorney, Tax lawyer, tax consultant, IRS help, IRS attorney, tax debt help, Tax help, tax advocacy, Stop IRS, IRS levy, tax debt, tax debt relief, IRS debt, Help with IRS, Tax Lien, Tax settlement, Tax amnesty, tax negotiation, installment agreement, settle irs, back taxes, owe taxes, currently non--collectible, delinquent taxes, wage garnishment, tax problem, irs tax problem, irs tax help, offer in compromise, tax expert, tax relief, irs tax relief, tax penalty, wage levy
Thursday, January 17, 2008
Business Expense Tax Deductions
We've all heard the phrase "It takes money to make money." Well Congress has filled the tax law with opportunities for businesses both large and small to recoup reasonable and necessary business expenses with tax deductions and credits. The better you know the rules and the better records you keep, the lower you'll keep your tax bill. Here are a few that may come in handy and a link to even more...
Advertising. Your business can deduct all of the cost of advertising as a business expense.
Automobile expenses. For 2007, deductions for vehicles driven for business can be claimed at 48.5 cents per mile, plus parking and tolls. Alternatively, the actual cost of operating the vehicle, including fuel, repairs and depreciation can be claimed.
Bad debts. If your business loaned money to someone and determined in 2007 that it would not be repaid, the loss is deductible against business income.
Business gifts. The deductible limit on business gifts is $25 a year to any one customer or client.
Credit card fees. Fees imposed by credit card companies to process charge card sales can be deducted.
Holiday parties. Your business can deduct the cost of holiday parties for employees.
Meals and entertainment. Fifty percent of the cost of meals and entertainment for clients is deductible, if you (or one of your employees) is present, the meal is directly related to or associated with the active conduct of your business and the meal is not lavish or extravagant.
There are a lot more than this so if you are truely interested check out the link provided above for more information on business expense tax deductions.
If you are interested in more tax information check out these sites...
Advertising. Your business can deduct all of the cost of advertising as a business expense.
Automobile expenses. For 2007, deductions for vehicles driven for business can be claimed at 48.5 cents per mile, plus parking and tolls. Alternatively, the actual cost of operating the vehicle, including fuel, repairs and depreciation can be claimed.
Bad debts. If your business loaned money to someone and determined in 2007 that it would not be repaid, the loss is deductible against business income.
Business gifts. The deductible limit on business gifts is $25 a year to any one customer or client.
Credit card fees. Fees imposed by credit card companies to process charge card sales can be deducted.
Holiday parties. Your business can deduct the cost of holiday parties for employees.
Meals and entertainment. Fifty percent of the cost of meals and entertainment for clients is deductible, if you (or one of your employees) is present, the meal is directly related to or associated with the active conduct of your business and the meal is not lavish or extravagant.
There are a lot more than this so if you are truely interested check out the link provided above for more information on business expense tax deductions.
If you are interested in more tax information check out these sites...
tax attorney, Tax lawyer, tax consultant, IRS help, IRS attorney, tax debt help, Tax help, tax advocacy, Stop IRS, IRS levy, tax debt, tax debt relief, IRS debt, Help with IRS, Tax Lien, Tax settlement, Tax amnesty, tax negotiation, installment agreement, settle irs, back taxes, owe taxes, currently non--collectible, delinquent taxes, wage garnishment, tax problem, irs tax problem, irs tax help, offer in compromise, tax expert, tax relief, irs tax relief, tax penalty, wage levy
Question about Deductible Medical Expenses?
Lately I've been getting a lot of questions about deductibles and what you are allowed to claim. Well here is some information that I found on the Internet pertaining to medical expenses.
The list of medical costs that can be deducted stretches to the Mayo Clinic and back, but few taxpayers get any tax benefit. The reason for the seeming contradiction is twofold. First, to get any benefit, you must itemize deductions (which most taxpayers do not). Second, you get a tax break only to the extent your total unreimbursed medical costs exceed 7.5% of your adjusted gross income (if your AGI is $50,000, then, the first $3,750 of medical expenses don't count).
Considering these restrictions, it's critically important that you tote up all your deductible expenses and that you know which expenses you can deduct. In addition to what you pay for your own medical care, you can count what you pay for your spouse and anyone you claim as a dependent. If you were divorced during the year but paid medical bills incurred by your spouse while you were married, you can deduct those costs even though you file a separate return. You also can include in your deductible medical expenses any qualifying bills you pay for your child, even if he or she is claimed as a dependent by your ex-spouse.
If you are interested in more tax information check out these sites...
IRS Help 4 You
Tax Consultant Blogs
Brain's Blog
Ashley's Tax Blog
IRS Minds
IRS NEWS
Effectur
The list of medical costs that can be deducted stretches to the Mayo Clinic and back, but few taxpayers get any tax benefit. The reason for the seeming contradiction is twofold. First, to get any benefit, you must itemize deductions (which most taxpayers do not). Second, you get a tax break only to the extent your total unreimbursed medical costs exceed 7.5% of your adjusted gross income (if your AGI is $50,000, then, the first $3,750 of medical expenses don't count).
Considering these restrictions, it's critically important that you tote up all your deductible expenses and that you know which expenses you can deduct. In addition to what you pay for your own medical care, you can count what you pay for your spouse and anyone you claim as a dependent. If you were divorced during the year but paid medical bills incurred by your spouse while you were married, you can deduct those costs even though you file a separate return. You also can include in your deductible medical expenses any qualifying bills you pay for your child, even if he or she is claimed as a dependent by your ex-spouse.
If you are interested in more tax information check out these sites...
IRS Help 4 You
Tax Consultant Blogs
Brain's Blog
Ashley's Tax Blog
IRS Minds
IRS NEWS
Effectur
tax attorney, Tax lawyer, tax consultant, IRS help, IRS attorney, tax debt help, Tax help, tax advocacy, Stop IRS, IRS levy, tax debt, tax debt relief, IRS debt, Help with IRS, Tax Lien, Tax settlement, Tax amnesty, tax negotiation, installment agreement, settle irs, back taxes, owe taxes, currently non--collectible, delinquent taxes, wage garnishment, tax problem, irs tax problem, irs tax help, offer in compromise, tax expert, tax relief, irs tax relief, tax penalty, wage levy
Deductible Questions? I have answers
Question 1- Can you deduct prescription drug costs from an Internet pharmacy in Canada?
Answer - No, you can only count out-of-pocket costs of prescription drugs bought in the U.S. to the extent your total un-reimbursed medical costs exceed 7.5% of your adjusted gross income.
Question 2 - Is the interest owed to the IRS deductible?
Answer - No, there is no deduction for personal interest, such as interest owed to the IRS or interest on car loans and credit cards. But home mortgage interest, investment interest, and interest on business loans ARE deductible.
Question 3 - Can you deduct job hunting expenses?
Answer - Yes, job-hunting expenses incurred while looking for your first job are not deductible. The cost of hunting for a new job in the same line of work, though, is deductible.
Question 3 - Are your safe-deposit box fees deductible?
Answer - Yes, you can deduct such fees if you use the box to store taxable income-producing stocks, bonds, or investment-related papers and documents -- not personal items or tax-exempt securities
Question 4 - Can you take a deduction for alimony expenses?
Answer - Yes, you can take a tax deduction for making the payments, even if you don't itemize your deductions. The IRS won't consider the payments to be true alimony unless they are made in cash and spelled out in the divorce agreement.
Question 5 - Can job-related moving costs provide another deduction?
Answer - Yes, if a new job is at least 50 miles farther away from your old house than your old job was, then you can deduct the cost of moving. First job? you can claim this tax saver as well, regardless of whether you itemize deductions.
If you are interested in more tax information check out these sites...
IRS Help 4 You
Tax Consultant Blogs
Brain's Blog
Ashley's Tax Blog
IRS Minds
IRS NEWS
Effectur
Answer - No, you can only count out-of-pocket costs of prescription drugs bought in the U.S. to the extent your total un-reimbursed medical costs exceed 7.5% of your adjusted gross income.
Question 2 - Is the interest owed to the IRS deductible?
Answer - No, there is no deduction for personal interest, such as interest owed to the IRS or interest on car loans and credit cards. But home mortgage interest, investment interest, and interest on business loans ARE deductible.
Question 3 - Can you deduct job hunting expenses?
Answer - Yes, job-hunting expenses incurred while looking for your first job are not deductible. The cost of hunting for a new job in the same line of work, though, is deductible.
Question 3 - Are your safe-deposit box fees deductible?
Answer - Yes, you can deduct such fees if you use the box to store taxable income-producing stocks, bonds, or investment-related papers and documents -- not personal items or tax-exempt securities
Question 4 - Can you take a deduction for alimony expenses?
Answer - Yes, you can take a tax deduction for making the payments, even if you don't itemize your deductions. The IRS won't consider the payments to be true alimony unless they are made in cash and spelled out in the divorce agreement.
Question 5 - Can job-related moving costs provide another deduction?
Answer - Yes, if a new job is at least 50 miles farther away from your old house than your old job was, then you can deduct the cost of moving. First job? you can claim this tax saver as well, regardless of whether you itemize deductions.
If you are interested in more tax information check out these sites...
IRS Help 4 You
Tax Consultant Blogs
Brain's Blog
Ashley's Tax Blog
IRS Minds
IRS NEWS
Effectur
tax attorney, Tax lawyer, tax consultant, IRS help, IRS attorney, tax debt help, Tax help, tax advocacy, Stop IRS, IRS levy, tax debt, tax debt relief, IRS debt, Help with IRS, Tax Lien, Tax settlement, Tax amnesty, tax negotiation, installment agreement, settle irs, back taxes, owe taxes, currently non--collectible, delinquent taxes, wage garnishment, tax problem, irs tax problem, irs tax help, offer in compromise, tax expert, tax relief, irs tax relief, tax penalty, wage levy
Daily Tax Quotes
Ever wonder why the IRS calls it Form 1040?
Because for every $50 that you earn, you get 10 and they get 40.
I'm spending a year dead for tax reasons.
Isn't it appropriate that the month of the tax begins with April Fool's Day
and ends with cries of "May Day!"?
The Beast of Mother Nature?
With the current weather coming into North Carolina I started to think about the natural disasters from the past year, the most recent being the fires in California. I know that comparing the fires in California to it snowing here in NC isn't really the same but when it snows things seem to shutdown around here. I started to do some research on what kind of tax relief was given to the residents who were affected by the fires in Cali and here is what I've found.
Released: October 23, 2007
The Franchise Tax Board (FTB) today announced several relief measures for the victims of wildfires in seven Southern California Counties.
The FTB will allow victims to receive additional tax refunds this year by immediately reporting their disaster losses through amended 2006 returns. In addition, the FTB has temporarily suspended mailing billing notices in the seven Southern California counties affected by wildfires.
"The victims of the Southern California fires need to know they can turn to the State for immediate help," said State Controller and FTB Chair John Chiang. "By claiming a disaster loss on last year’s taxes, those who lost their homes or suffered property damages can get additional funds to help them through this tragedy."
Affected taxpayers may also claim the disaster loss on their 2007 tax return that are due to be filed in spring.
The affected counties include Santa Barbara, Ventura, Los Angeles, San Bernardino, Orange, Riverside, and San Diego in the declared state and federal disaster area.
Tax information regarding the fires will be regularly updated and posted to the FTB's Website.
If taxpayers impacted by the fires need copies of state tax returns to replace lost or damaged ones, they should complete Form FTB 3516, Request for Copy of Tax Return. Print “Southern California Wildfires 2007” in red at the top of the request. Disaster victims receive free copies of tax returns.
The Franchise Tax Board (FTB) today announced several relief measures for the victims of wildfires in seven Southern California Counties.
The FTB will allow victims to receive additional tax refunds this year by immediately reporting their disaster losses through amended 2006 returns. In addition, the FTB has temporarily suspended mailing billing notices in the seven Southern California counties affected by wildfires.
"The victims of the Southern California fires need to know they can turn to the State for immediate help," said State Controller and FTB Chair John Chiang. "By claiming a disaster loss on last year’s taxes, those who lost their homes or suffered property damages can get additional funds to help them through this tragedy."
Affected taxpayers may also claim the disaster loss on their 2007 tax return that are due to be filed in spring.
The affected counties include Santa Barbara, Ventura, Los Angeles, San Bernardino, Orange, Riverside, and San Diego in the declared state and federal disaster area.
Tax information regarding the fires will be regularly updated and posted to the FTB's Website.
If taxpayers impacted by the fires need copies of state tax returns to replace lost or damaged ones, they should complete Form FTB 3516, Request for Copy of Tax Return. Print “Southern California Wildfires 2007” in red at the top of the request. Disaster victims receive free copies of tax returns.
Though I hope you are not one of the unfortunate families that was affected by the fires I hope this information helps.
If you are interested in more tax information check out these sites...
IRS Help 4 You
Tax Consultant Blogs
Brain's Blog
Ashley's Tax Blog
IRS Minds
IRS NEWS
Effectur
IRS Help 4 You
Tax Consultant Blogs
Brain's Blog
Ashley's Tax Blog
IRS Minds
IRS NEWS
Effectur
Monday, January 14, 2008
Another Death and Taxes Quote
Certainty? In this world nothing is certain but death and taxes.
- Benjamin Franklin
If you are interested in more tax information check out these sites...
- Benjamin Franklin
If you are interested in more tax information check out these sites...
Helpful tax terms D-F
DeductionsAn expense subtracted from adjusted gross income when calculating taxable income, such as for state and local taxes paid, charitable gifts, and certain types of interest payments or business expenses.
Estimated Tax (ES) Payments
Tax payments made to IRS for the current tax year. Those taxpayers that do not have withholding taken out of their paycheck OR owed more than $1,000 on the previous year's tax return is required to pay estimated tax payments to the IRS for the current year. Taxpayers are supposed to estimate their income at the beginning of the year to determine their estimated tax liability. If they owe taxes when they file a return even though they have withholding, the IRS will penalize them if they do not pay estimates. Estimated payments allow taxpayers to remain in compliance with the payment demands of the IRS. ES payments are due the 15th day of April, June, and September of the current year and January of the following year.
If a taxpayer is required to make ES payments and they want an OIC, the taxpayer must be current with all tax payments including ES payments prior to submitting an OIC. If the OIC is submitted between January and March, the taxpayer is not delinquent until he does not pay his first ES payment due April 15th. If they are not current with last years ES payments, an OIC can be submitting including last years debt. If an OIC has already submitted, the taxpayer must continue to pay ES payments while the OIC is in review and until they have proper withholding and stop acquiring a debt. Since taxpayers are required to pay their taxes after the OIC is accepted, it is to the taxpayer's benefit to start off in compliance by paying all estimates while the OIC is in review and not by adding that year to the current OIC.
Federal Insurance Contributions Act (FICA)This is Social Security Tax. FICA consists of Social Security (supplemental retirement income) payroll tax and a Medicare (hospital insurance) tax. The tax is levied on employers, employees, and certain self-employed individuals. On some pay stubs it may be listed as some form of Old Age Survivors and Disability Insurance (OASDI)
If you are interested in more tax information check out these sites...
Funny Tax Quote
Mark Twain
The only difference between a tax man and a taxidermist is that the taxidermist leaves the skin.
If you are interested in more tax information check out these sites...
Saturday, January 12, 2008
Think you are the only one with tax problems? Check out this TOWN...
FAST FACTS: TOWN OWES ALMOST $400,000.00
"SECRET SANTA" OFFERS $100,000.00
LOAN ACCOUNTANT SAYS IRS UNLIKELY TO ACCEPT SETTLEMENT OFFER
(Como, MS 1/8/2008) A secret Santa had stepped in to save the town of Como but now it looks like that gift may have to be returned just like that Christmas sweater that doesn't fit. Lots of folks in Como knew about the town's "secret Santa" who wanted to loan the down 100 grand, but that's about all they knew. "Yeah, I heard all about that. Believe me, it wasn't me." said William Wilbourn of Como. The plan was, to use the money, a loan, to make the IRS a settlement offer. But now the town's accountant says there's almost no chance Uncle Sam would take the deal."It's just the offer in compromise would probably not gonna happen, that the IRS they just simply not a tool they use much." said City Attorney Parker Still. It puts the town in an awful position of juggling it's finances from week to week. Meantime, Como continues struggling with its financial woes. The town delayed this week's payroll until next week so it could pay a 40-thousand dollar gas bill due this Thursday. So where does that leave the so-called "secret Santa" gift? "It doesn't kill the deal because what we have in this benefactor is somebody who wants to help the city." Still explained. And he says there are probably more out there who might come forward IF the town can gain control of it's spending. "The main thing I think, if we could just find, you know, where the leaking bucket is so to speak and go from there." said Sledge Taylor of Como. So far, concerned townsfolk have put together something called the "Como Rescue Fund" to pay for a few vital needs. Some here say that spirit might just save the town. "We can work strongly together, but if we don't come up with the money, that part is still gonna exist." said Wilbourn. So, the bottom line is... well.... The bottom line. The town is slowly paying its debts, but that's leaving some services, unmet. There's even talk of laying off the town police department and letting the Sheriff step in. For now, it's all being worked out day to day, secret Santa, or not.
"SECRET SANTA" OFFERS $100,000.00
LOAN ACCOUNTANT SAYS IRS UNLIKELY TO ACCEPT SETTLEMENT OFFER
(Como, MS 1/8/2008) A secret Santa had stepped in to save the town of Como but now it looks like that gift may have to be returned just like that Christmas sweater that doesn't fit. Lots of folks in Como knew about the town's "secret Santa" who wanted to loan the down 100 grand, but that's about all they knew. "Yeah, I heard all about that. Believe me, it wasn't me." said William Wilbourn of Como. The plan was, to use the money, a loan, to make the IRS a settlement offer. But now the town's accountant says there's almost no chance Uncle Sam would take the deal."It's just the offer in compromise would probably not gonna happen, that the IRS they just simply not a tool they use much." said City Attorney Parker Still. It puts the town in an awful position of juggling it's finances from week to week. Meantime, Como continues struggling with its financial woes. The town delayed this week's payroll until next week so it could pay a 40-thousand dollar gas bill due this Thursday. So where does that leave the so-called "secret Santa" gift? "It doesn't kill the deal because what we have in this benefactor is somebody who wants to help the city." Still explained. And he says there are probably more out there who might come forward IF the town can gain control of it's spending. "The main thing I think, if we could just find, you know, where the leaking bucket is so to speak and go from there." said Sledge Taylor of Como. So far, concerned townsfolk have put together something called the "Como Rescue Fund" to pay for a few vital needs. Some here say that spirit might just save the town. "We can work strongly together, but if we don't come up with the money, that part is still gonna exist." said Wilbourn. So, the bottom line is... well.... The bottom line. The town is slowly paying its debts, but that's leaving some services, unmet. There's even talk of laying off the town police department and letting the Sheriff step in. For now, it's all being worked out day to day, secret Santa, or not.
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