Sunday, September 28, 2008

Politic's And Taxes: Sarah Palin VP

Sarah Palin is John McCain's choice for Vice President and for a couple reasons. One of the biggest is she knows how important taxes are to a community. Sarah Palin ran on a campaign of " Tax Cut Promises" so she is a veteran in this arena. At the age of 28 she started her political career. She won on the promise to cut taxes. Here are quotes by her,or on tax issues that she has had to tackle.
Raising taxes hurts small business and hurts jobs. (Sep 2008)
Elected mayor based on tax cut promise. (Aug 2008)
As mayor, cut property taxes & increased sales tax. (Aug 2008)
$60M annually for municipal revenue sharing. (Mar 2008)
Eliminate taxes that inhibit business. (Jan 2008)
Repeal "nuisance taxes" including the tire tax. (Jan 2007)
Mitigate impact of new $50M annual cruise ship tourism tax. (Oct 2006)
No income tax; no taking the people's dividends. (Oct 2006)
Would support a seasonal sales tax, but no income tax. (Oct 2006)
John McCain and Sarah Palin have the same views on taxes. They want to give tax cuts to small business owners to stimulate the economy, and encourage people to buy American and do business here in the United States.

Politic's And Taxes : John McCain's plan

"Innovation Tax Policy: John McCain believes we must make a commitment to innovation and new technologies to sustain our global competitiveness, meet our national security challenges, achieve less costly and more effective health care, reduce dangerous dependence on foreign sources of oil, and raise the quality of education in the United States". He believes must be ahead of the rest of the world when it comes to this.He believes we must be in a red hot frenzy to attack these challenges like are future depends on it , and he believes it must be done now!A example would be that John McCain has been a leader in keeping the Internet free of taxes. As President, he will seek a permanent ban on taxes that threaten this engine of economic growth and prosperity. Like wise he would "Ban New Cell Phone Taxes: John McCain understands that the same people that would tax e-mail will tax every text message - and even 911 calls. John McCain will prohibit new cellular telephone taxes. "

Politic's And Taxes : John McCain's plan

This is a continuation on the tax policies of John McCain. Our economic future, American jobs imports, and taxes are directly related according to the McCain camp. Part of there plan in tax structure is to "Allow First-Year Deduction, Or "Expensing", Of Equipment And Technology Investments: American workers need the finest technologies to compete. Expensing of equipment and technology will provide an immediate boost to capital expenditures and reward investments in cutting-edge technologies. Establish Permanent Tax Credit Equal To 10 Percent Of Wages Spent On R&D: This reform will simplify the tax code, reward activity in the United States, and make us more competitive with other countries. A permanent credit will provide an incentive to innovate and remove uncertainty. At a time when our companies need to be more competitive, we need to provide a permanent incentive to innovate, and remove the uncertainty now hanging over businesses as they make R&D investment decisions." This is a direct quote from his presidential website where I will be covering the rest of his public policy on taxes.

Thursday, September 25, 2008

Politics And Taxes ; John McCain's plan

I recently went to John McCain's web site to see just what is his tax policy will look like if he is elected and is able to implement his ideas. They have a whole section called " Taxes: Simpler, Fair, Pro-Growth and Competitive". Then the first section under that is "Keep Taxes Low". In this section they speak about the importance of the nations entrepreneurs, and how they are the heart of the economy as far as innovation, growth and the overall prosperity. They create new jobs if you lose your current one.

He thinks they should keep the top tax rate for them at 35%,maintain the 15% rates on dividends and capital gains, and phase out the alternative minimum tax. He feels raising taxes on the small business is a deterrent to our to the potential future growth of those wanting to start needed new jobs.

On my next post we will look at the next heading in Senator John McCain's section on taxes. When we get done. We will have covered all of his potential tax policies. Then we will look at presidential candidate Barrack Obama's tax policies.

Monday, September 22, 2008

Better Business Bureau Rating Scale

The Better Business Bureau has for years been the only reliable source for checking on the credibility of a company. They have also been the only outlet to warn other consumers about these companies. Over the years they have designed a system to filter all this information and summarize it in a composite score to let you know efficiently if a company is treating their clients or customers in a proper manner, and their willingness to correct mistakes. Here below is their system and how they score a company. Use this as a tool whenever you are looking for a tax resolution company or any other company.

The rating the Better Business Bureau assigns a business is determined by our composite score of such factors as its type of business, length of time in business, compliance with competency licensing requirements, complaint volume, complaint history, seriousness of complaints, how the company responds to complaints, and our experience with the company’s industry in general. The scoring system takes into account the importance we feel each factor is to the company’s reliability.The highest rating assigned to a company is AAA; the lowest is F. Between those two ratings are nine others in order from higher to lower. The ratings are defined as follows:Our rating of a company and our reliability report on a company reflect our conclusions and opinion about the company based upon information in our files and our experience with the company. Neither the rating nor the report is a guarantee of reliability. Readers should not rely solely upon a company’s rating, but should read and consider the entire report, including complaint and response details, before deciding whether or not to do business with the company.

An exemplary rating. This means that nothing in our files causes us to have any doubt about the company’s reliability.
An extremely high rating. The condition that lowers this grade from AAA is not what we believe to be a significant one.
An excellent rating. A company with this rating may not rate higher because of a greater number of rate-lowering factors, but we do not consider them to be factors that would likely adversely affect consumer transactions.
A very high rating. A company with this rating would not have a significant number of complaints or other considerations that could pose a problem to consumers.
A high rating. The company would generally have demonstrated good business-consumer relations, and we would expect any consumer complaints not to be of a serious nature and to be satisfactorily handled by the company.
A good rating that still implies reputability. The rating may relate to length of time in business, a past problem that’s been corrected, or something else that does not cause problems for consumers. We believe a company with this rating would generally conduct business and respond to any complaints satisfactorily.
A good rating. We would expect nothing less than a satisfactory business transaction, but read our full report to determine if you have any questions or concerns.
Average rating. We would expect consumer transactions to be satisfactory. Since each transaction is individual, read our full report to determine if you have questions or concerns.
Acceptable rating. We know of no reason not to do business with this company. If the level of this rating relates to anything specific that we know might be of concern to consumers, it is stated in this report. Read our full report to determine if you have questions or concerns.
We have enough concerns about this company (for example, their offer, customer complaints, advertising, etc.) that we recommend caution in doing business with it.
We strongly question the company’s reliability for reasons such as that they have failed to respond to complaints, their advertising is grossly misleading, they are not in compliance with the law’s licensing or registration requirements, their complaints contain especially serious allegations, or the company’s industry is known for its fraudulent business practices.
"NR" is displayed when another Better Business Bureau issues the report on the subject company, or when the Bureau is conducting system maintenance.

© Copyright 2008 The Better Business Bureau of the Southland, Inc. All Rights Reserved.

Wednesday, September 17, 2008

Problem Alert: The IRS Warns of Scam e-Mails or Phone Calls

This blog is so important I thought it would be ok to break my series in OIC'S to share this IRS warning. Please read this article from the web site.
The IRS warns taxpayers to be on the alert for e-mails and phone calls they may receive which claim to come from the IRS or other federal agency and which mention their tax refund or economic stimulus payment. These are almost certainly a scam whose purpose is to obtain personal and financial information — such as name, Social Security number, bank account and credit card or even PIN numbers — from taxpayers which can be used by the scammers to commit identity theft. The e-mails and calls usually state that the IRS needs the information to process a refund or stimulus payment or deposit it into the taxpayer's bank account. The e-mails often contain links or attachments to what appears to be the IRS Web site or an IRS "refund application form." However genuine in appearance, these phonies are designed to elicit the information the scammers are looking for.
The IRS does not send taxpayers e-mails about their tax accounts. Additionally, the only way to get a tax refund or stimulus payment, or to arrange for a direct deposit, is to file a tax return.

When tax resolution firms do practitioner calls the IRS always tries to update your info on the records. If the one doing the call only has an web form with an email address they will flat out tell you never mind we don't accept email address.
For more information on consumer scams, see
Suspicious e-Mails and Identity Theft.

OIC 101: Effective Tax Administration

An Effective Tax Administration OIC , aka ETA is not well known when it comes to OIC'S. The reason for that will be very apparent as we go through the qualifications to successfully get one accepted. First of all there can be no doubt you owe the tax. So if your the typical delinquent tax fugitive who thinks they shouldn't owe that stinking tax anyway. Hang it up! There has to be no doubt that you owe the tax. You also cannot be a candidate for a doubt as to collectability. Another words you got the money to pay it in full or the ability to pay it over time.Compared to Doubt as to Collectibility (DATC) In a Doubt as to Collectibility (DATC) offer, the tax liability equals or exceeds the taxpayer's reasonable collection potential (RCP) which is:
Net equity, plus
Future income
In an Effective Tax Administration (ETA) offer, the tax liability is less than the taxpayer's reasonable collection potential (RCP). The taxes owed can be collected in full either:
In a lump sum, or
Through an installment agreement (IA) as stated previously.

Now that you know what will disqualify you what does a tax payer have to do to get an ETA offer accepted ?Here are the 3 basics.

Before we can consider a compromise based on economic hardship or public policy/equity considerations, three factors must exist:
A liability has been or will be assessed against taxpayer(s) before acceptance of the offer.
The net equity in assets plus future income or reasonable collection potential (RCP) must be greater than the amount owed.
Exceptional circumstances exist, such as the collection of the tax would create an economic hardship, or there is compelling public policy or equity considerations that provide sufficient basis for compromise.

A very narrow amount of these offers are accepted. Only a tax resolution firm usually has the expert staff IE enrolled agents to get a ETA offer accepted.

Tuesday, September 16, 2008

OIC 101: Doubt As To Liability

In some cases tax payers are convinced they either don't owe their tax liability at all or in part. This is known as "Doubt As To Liability ." Normally you file an OIC on a form 656-A. In this case you would be referred to the alternatives to offers and compromise section in the IRM (Internal Revenue Manual). You may also use these remedies if you disagree with the accuracy of the tax. These alternatives are usually allot less complicated than OICs.

If you choose to compromise the tax amount, you must submit in writing why you think you don't owe the tax. You must also describe in detail the circumstances how the said totals are inaccurate. Include any documentation and evidence you have to support your claim. If you believe you owe none of the tax, see the alternatives section. One thing to consider is that an OIC will not be accepted on any tax that has been finally determined by tax court, any other courts or by the commissioners final closing agreement.

Thursday, September 11, 2008

OIC 101: Doubt As to Collectibility

With this OIC you get to bare your soul and say "I did it! I owe it! But I cant pay in this life time or in two life times. Woo I feel better ! NOW that I got that off my chest."

Actually it is a little less dramatic than that. If you owe a tax and there is not enough time left on the statute of limitations to pay it, you could qualify for this offer. There are some circumstances that could disqualify you—namely assets that could be liquidated. Also, if you have a high enough monthly income the IRS feels you could pay enough of a payment. They will look at these first by doing a full financial investigation. This will include documentation proving your monthly income, assets, and liabilities.

To have a chance at the OIC do not attempt to put this information together on form 433 by yourself. This is a common mistake of your "do it yourself people". The IRS loves this but you will not like the outcome. Seek out a professional tax resolution firm.

Tuesday, September 9, 2008

OIC 101:Which One Fits ?

There are several different types of OICs.
A professional tax resolution firm needs to assess your individual situation to submit the proper OIC or you can waste a lot of time and money. One of the keys to getting a OIC accepted is ensuring it is processable. This is only possible when you have submitted a offer consistent with the qualifications necessary to qualify for the type of OIC you are trying to get.

There are actually 4 completely different types to look at:
OIC doubt as to liability, OIC doubt as to collectibity
OIC effective tax administration
○ OIC partial pay installment agreement.

A reputable tax resolution firm will verify your qualification for each of these.

Monday, September 8, 2008

OIC 101: In The Governments Best Interest

Have you ever tried to get ahead of your car payments or mortgage? You thought I've got to get this balance down. Maybe if I take and make some double payments on some of my bills I can get them knocked out. SURPRISE! The IRS is just like the mortgage companies and car loan places in as much as they like interest and penalties.

In 2006 the new TIPRA law was introduced . This is basically the introduction (as you know from prior blog posts) of the 20% plus $150 filing requirements. Taxpayers are not required to but may designate the application of the TIPRA payments. The designation must be made in writing when the offer is submitted or when they make their first payment on the offer. If not submitted in writing the IRS will apply the 20% "In The Governments Best Interest" A professional tax resolution firm can, and should be used to set this up. This will insure your best interest is protected instead of you just paying more interest.

Thursday, September 4, 2008

OIC 101: I'm Free! Are You?

It's not over until it's over! Even after you've had an OIC successfully negotiated for you, there are stipulations that could jeopardise all the hard work and money you invested. It is expected the taxpayer will have no further delinquencies. If taxpayers do not abide by all the terms of the agreement (including filing all future returns on time and making all payments when required for 5 years or until the offered amount is paid in full, whichever is longer), their OIC may be declared in default.

The IRS will not give you a second chance or allow you to say "whoops." This is another reason to consider whether an OIC is your best option. There are 20 other resolutions, viable options, that could satisfy your obligation to the IRS. If you can't pay all the required payments as scheduled, you risk defaulting.

Financial hardship is not taken into consideration after an OIC has been accepted. Under-reporting, or not paying current taxes is not an option. A fresh start or freedom from enforced collections can be realized through many other resolutions.

OIC 101:How Do You Eat An Elephant?

There are many misconceptions concerning OICs. I would have to say one of the biggest is how you take care of such a large debt, or elephant. There is an old saying or question: "how do you eat an elephant?"

Answer... one bite at a time! Most people who qualify for an OIC are dealing with large liabilities which seem overwhelming.

"Taxpayers may choose to pay the offer amount in a lump sum, in monthly payments over the remainder of the statutory time allowed for collection, or a combination of a lump sum and monthly payments. Generally, it is to the taxpayer’s advantage to pay the amount in the shortest time possible because longer payment terms will require a larger offer amount."

A professional tax resolution firm can look at your finances and advise you on the pros and cons of any option you are considering. Many taxpayers who don't consult a tax resolution firm run the risk of accepting terms dictated by either the Treasury who only have their own interests at heart or a third party with little or no knowledge of the potential long-term effects of the different options available.

Tuesday, September 2, 2008

OIC 101 : No Double Dipping

Frequently I hear clients tell me they are on the verge of bankruptcy. In fact, many have it in their mind to fix all their problems by filing bankruptcy and filing for an OIC for their tax liability. Unfortunately the current bankruptcy laws prohibit the filing of any type of resolution with the IRS simultaneously. While you are in bankruptcy all collections are suspended for the period you are in bankruptcy plus 6 months. Some tax resolution companies will file an OIC and never even ask you if you are in bankruptcy. It will not come up until you have already paid them and you have a denial letter. These tax resolution companies are concerned about generating revenue. This type of information should be disclosed in some type of free consultation to determine if you qualify for an OIC. If the Tax resolution firm is genuinely trying to help you, they will avoid wasting your time and money by making a frivolous offer.