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*** Ask TaxMama Volume 7, Issue #318 July 22, 2005 ***
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http://taxmama.com/taxcalendar.html
07.21.2005 Last Day to get your missing Personal info
to
me to file by August 15, 2005
08.01.2005 2nd Quarter Payroll Taxes Due
08.01.2005 2nd Quarter Sales Taxes Due
08.16.2005 Personal Returns or Extensions are due
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JOB OF THE WEEK visit the NEW http://taxmama.careerbank.com
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All the Pastrami you can eat!
Jerry's Famous Deli needs an Accounting Manager
http://taxmama.careerbank.com/job.cfm/174703.htm
Take the new 2005 Salary Survey
http://www.careerbank.com/resource/ssurvey/salary_survey.cfm
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Dear Family,
IRS Commissioner Mark Everson was just ordered not
to close taxpayer centers. Read today's IRS News.
Speaking of Everson, someone thinks he's me.
About two months ago, at my Las Vegas mailbox,
I started getting mail addressed to Mark Everson,
Commission, TaxMama from Pitney Bowes. Do you
think I should forward his mail to him? After all,
the offer they sent doesn't expire until 07/31/05.
Perhaps IRS could use the special deal?
(Someone is paying way too much for their
mailing list service!)
Well, here we are in the height of summer.
At 6:00 am, it's already so hot here in the
Valley that it's practically stifling. Watching
the weather report on TV one day, I learned that
California weather is stranger than ever. There
was a 50 degree difference between the Valleys
and the beach. (110° - 60°F) They're only about
15 miles apart.
This week's copyright workshop was terrific.
Only, the recording didn't work, so I will
re-record it next week, along with some
additional material I'll be adding - if you're
interested in getting the recording and text
of the lecture...that is.
http://go.asktaxmama.com/Copyrights
Speaking of writing, my friend Jacqueline
Freeman and her buddy have a started a charming,
upbeat newsletter that will make you feel good
when you read it.
They're up in the rainy northwest, writing
insightful and humorous stories each week
about farmlife, animals, gardening, goodnatured
neighbors and the power of charity and goodness.
They invite you to subscribe to their free
newsletter at www.FriendlyHaven.com .
Time to go - &nbs!
p;&nbs p; &nb!
sp;&nb sp;
Best wishes,
Eva Rosenberg, EA
Your TaxMama is watching...out for you.
P.S. If you're in business, you MUST read
Small Business Taxes Made Easy
http://www.taxmama.com/AskTaxMama/book/
P.S.S. TaxMama has baby clothes!
http://www.cafepress.com/taxmama/138360
P.P.S. TaxMama is scheduling speaking/teaching
engagements for summer 2005. (Calendar is filling up)
mailto:taxwriter@gmail.com?Subject=Speak4Bucks
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To comment on any articles in this issue, please,
DON'T send me back the whole issue. Send a note to
mailto:taxmama@taxmama.com
?subject=AskTaxMamaComment
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ADDRESS CHANGES - Please, do NOT send them to me to do.
There is a link at the bottom of this issue. Please click
on it and you will be able to make updates and changes
yourself. And faster.
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---==========**********O**********==========------
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by more than $500 MILLION!
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Play a simple, two minute game
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Media Tour and Classes
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Join me on Tuesday Morning with Jim Blasingame,
the Small Business Advocate
http://www.smallbusinessadvocate.com/
Between 8-9 a.m. Eastern time
(If you're still sleeping, you can catch it
in his daily archives)
http://go.asktaxmama.com/BlasingameArchives
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TaxMama's IRS Exam Review Class - Self-Study
Listen, read, test yourself - pass the exam
http://irsexam.com/register.php
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Our Offer in Compromise workshop this week was terrific.
Order your copy http://go.asktaxmama.com/OIC-audio
EAs can get 1 hour CPE for this workshop
http://go.asktaxmama.com/OIC_EA-CPE
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USE
THESE QUICKIE RESOURCES!
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101 WAYS TO BE YOUR BEST
http://www.1automationwiz.com/app/?Clk=1091429
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Summertime, when the bookkeeping's easy.
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Time to catch up on your business and read
Small Business Taxes Made Easy -
It will increase your business cash flow
by at least $10,000 - probably more.
Custom autographed book, just for you - $17.50
includes shipping in the continental US.
http://asktaxmama.com/go/autographed
Just put the name of the person, or any special
message you want to include, in the COMMENTS box
on the order form.
---- How Easy is it? -- just in today ---
Eva, I read your book in one day and it's phenomenal!!!
I've learned a lot from it and some of the information
is already in use in my practice. Thanks a bunch!
I've been preparing returns for 7 years, 95% of the
returns and my clients are small business owners; 1-5
employees. I couldn't put your book down. It'll be a
valuable resource in my practice. The resources in
it alone are valuable.
Ken Pangelinan
Tax Resolution Specialists, Inc.
www.taxreliever.com
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This Week's Tax Quips
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If you haven't subscribed yet, you're not
just missing some juicy tips. You're also
missing daily news and other commentary.
Please - accept a complimentary subscription
from your cheery TaxMama
http://www.taxmama.com/taxquips/
This weeks pearls of wisdom are at:
http://www.asktaxmama.com/podcast/
MONDAY - S Corp – Office in Home
http://www.asktaxmama.com/podcast/index.php?id=12
TUESDAY - Donating a Home
http://www.asktaxmama.com/podcast/index.php?id=13
WEDNESDAY - When is an Author Published?
http://www.asktaxmama.com/podcast/index.php?id=14
THURSDAY - I Want to be a Millionaire
http://www.asktaxmama.com/podcast/index.php?id=15
FRIDAY - Fighting Off IRS Levy of Bank Account
http://www.asktaxmama.com/podcast/index.php?id=18
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Sneaking a Peek
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From: Crowley, LA
I'm writing to ask you if you know a way
of looking up someone's tax return status
by using their Social Security Number.
If so please let me know.
Joel
<TaxMama Replies>
Dear Joel,
Not legally.
Not without their permission.
Even IRS agents will get in trouble for
looking up someone's information without
proper authority.
Sorry, I know that's not what you wanted to hear.
But doesn't it make YOU feel a little more protected?
Now, you may have heard that some tax professionals
have access to an online database where they can
look up clients' tax records. This is true.
But to use it, we must have the client's signed
power of attorney on file with IRS.
Eva Rosenberg, MBA, EA
http://www.TaxMama.com
Author of the tax book from McGraw-Hill,
Small Business Taxes Made Easy
http://www.taxmama.com/AskTaxMama/book/
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Vacant Land
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From: Evergreen CO
Dear TaxMama,
I bought 38 acres of vacant land.
I also bought an RV, which qualifies as
a 2nd home for tax purposes.
If I place the RV on the land, can I write
off the mortgage interest on both the land
and the RV?
Thank you so much for your time and effort.
I really appreciate it.
Bill
<TaxMama Replies>
Dear Bill,
You bet!
Best wishes,
Eva Rosenberg, MBA, EA
http://www.TaxMama.com
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Retiring Soon
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From: Hayward California
Dear TaxMama,
I will be retiring soon with a small pension
and Social Security.
My wife is still working.
Currently, we are filing jointly, should we
file individually to save on taxes?
Mark
<TaxMama Replies>
Hello Mark,
You lucky dog!
I am so glad that you asked this question
before preparing your next tax return.
The answer is an emphatic I HAVEN'T A CLUE.
Actually, I was going to say, NO.
Then, I realized I don't know anything about
your combined finances; your wife's job and
her job related deductions. Or if you're paying
for a mortgage, or about either of your healths...
Or anything at all about you.
So, let me point you to a few things to consider, OK?
When you file separately, instantly 80% of your
Social Securtiy income is taxable. But if your wife's
wages are over around $30,000 - the same thing
happens anyway. So that stops being an issue.
If one of you has a lot of medical expenses and the
other doesn't, that may be a good reason to file
separately. That 7.5% of adjusted gross income (AGI)
drops when it just refers to your small pension.
If she has a lot of unreimbursed out of pocket expenses
related to her job, then, not having your income on her
return makes the 2% of AGI that she has to overcome
on Schedule A much lower.
But if you file as married filing separately, you will both
have to itemize, even if you don't each have enough
deductions to use. So it might cost one of you part of
your standard deduction.
Aren't you sorry you asked?
So, the short answer is - schedule an appointment for
after tax season this year with your tax professional.
Do some planning to see how you come out best.
And really, Mark, enjoy being retired. FInd something
fabulously new to learn about!
Best wishes,
Eva Rosenberg, MBA, EA
http://www.TaxMama.com
The BOOK is out!
Small Business Taxes Made Easy - read all about it!
http://www.taxmama.com/AskTaxMama/book/
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Patriot Act provisions get House boost
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Patriot Act provisions get House boost
Bill making most of law permanent OKd; Senate versions differ
By Mary Curtius, Tribune Newspapers: Los Angeles Times. Tribune news services
contributed Published July 22, 2005
WASHINGTON -- The House voted Thursday to make permanent most of
the key provisions of the USA Patriot Act, the sweeping law passed in the
weeks after the Sept. 11, 2001, terrorist attacks that expanded law-
enforcement powers to investigate suspected terrorists.
Hours after the London subway system was bombed for the second
time in two weeks, House members opened a daylong debate on the
Patriot Act.
Read More
http://www.chicagotribune.com/news/nationworld/chi-0507220140jul22,1,5787814.story?coll=chi-newsnationworld-hed&ctrack=1&cset=true
[TaxMama note: The terrorists win. Every time a democratic government
passes permanent laws like this, taking away our freedoms, the terrorists
win another major victory. That's the real threat of terrorism - the long-term,
insidious erosion of our liberties. If Americans don't speak up and protest,
we're just another step closer to 1984.
http://www.amazon.com/exec/obidos/tg/detail/-/0452262933/mywishlistA/
That prospect really is terrifying. Speak up!
http://taxmama.com/Articles/calltoaction.html
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Because We Care
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Don't let yourself or your friend feel helpless.
Share the Power - SCHOLARSHIPS FOR SELF-DEFENSE TRAINING AVAILABLE
SHARE THE POWER:SELF DEFENSE TRAINING is gaining POWER!
visit Share The Power - http://www.sharethepower.com
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A.N.G.E.L.S. DAY
Helping Seniors keep their pets
http://angelsday.org/
Talk to Linda Baker for more information
(310) 680-0798 LBaker6343@aol.com
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The Jeremiah Society asks "Who Will Care for the Children?"
Today, many of these people outlive their parents. And therein
lies the problem. Once their loving caregivers are gone, who
will care for them? And will they be able to care for themselves?
The Jeremiah Society, is working to help enhance and enrich the
lives of developmentally disabled teens and adults in the Jewish
Community Please Call Rose Lacher, (714) 997-8193
http://www.jccoc.org/adults.html
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MONEY FUNNIES
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The Birthday Gift
A couple had been debating buying a vehicle for weeks.
He wanted a truck. She wanted a fast little sports-like
car so she could zip through traffic around town.
He would probably have settled on any beat up old truck,
but everything she seemed to like was way out of their
price range.
"Look !" she said. I want something that goes from
0 to 200 in just a few seconds. Nothing else will do.
My birthday is coming up so surprise me!"
He did just that.
For her birthday, he bought her a brand new bathroom
scale
Nobody has seen or heard from him since.
------
Contributed by Blakely Sanford, EA in San Diego, CA
[Remember, we're always looking for SHORT, clean humor!]
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IRS and Tax NEWS
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Your Tax Dollars at Work - an Editorial.
Eva Rosenberg, EA
Your TaxMama
Over the last decade, IRS has had to battle
the legislature to get operating funds. Ironically,
even though IRS has collected billions of dollars
from major cases, like the Son of Sam tax scam,
the Service hasn't even been permitted to keep the
penalties to help their budget.
Of course, the argument is, if IRS is permitted
to keep the penalties, they'll assess high
penalties to fund the agency.
TaxMama feels that if IRS is permitted to keep
all penalties they collect from any taxpayer,
when the penalties total $50,000 or more, that
wouldn't be a threat at all. After all, anyone
with penalties that high AND the money to pay them,
would be battling the tax assessment with a team of
EAs, CPAs and/or attorneys anyway. The courts would
prevent IRS from assessing the tax if IRS is wrong.
And with no tax, there would be no penalties.
Set the bar high enough, and IRS gets a decent
working budget, more incentive to go after the
real offenders - and less incentive to chase after
small fry. How could we lose.
Anyway, here's IRS, collecting all this money,
still having to fight to pay their own bills.
So, finally, IRS Commissioner Mark Everson
announces that he's closing 68 taxpayer assistance
centers - and that gets Congress' attention.
Congress insists the IRS keep those centers open.
http://go.asktaxmama.com/IRSclosings
Do you think this was just a really good bluff
to get the legislature's attention? I love it!
Don't ever play poker with Mark Everson.
[Of course, both the House and the Senate are
throwing money at studies to learn the impact
of the closures. Wouldn't it be cheaper just to
use the money allocated to the studies to keep
the centers open?]
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http://taxmama.com/workshops/
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eBook - TaxMama's Secrets:
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For more:
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TaxMama On the WWW & Tooting Her Own Horn
http://taxmama.com/toots/index.html
TaxMama is teaching - in person and Online:
http://taxmama.com/toots/meettaxmama.html
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Critical Dates http://taxmama.com/taxcalendar.html
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Ask TaxMama is published by the good folks at http://taxmama.com
ISSN 15320790 © copyright, Eva Rosenberg, 1999 - 2005
TaxAnxiety Inc. P.O. Box 280549, Northridge, CA 91328
Written (e-mail) permission is required to copy or redistribute this
publication or to use it on your site. mailto:taxmama@taxmama.com
However, you are encouraged to forward an intact copy to all your
friends and invite them to subscribe!
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