*** Ask TaxMama Volume 7, Issue #327 September 23, 2005 ***
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http://taxmama.com/taxcalendar.html
10.17.2005 Personal Tax Returns Due
10.17.2005 Partnership/LLC Tax Returns Due
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JOB OF THE WEEK visit the NEW http://taxmama.careerbank.com
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Make a real difference - become a lobbyist for
The American Diabetes Association
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In fact, they have lots of openings, even Director of Finance
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Take the new 2005 Salary Survey
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Dear Family,
The EA exam just ended last night. Mostly, it
went well. Examinees made lots of friends at
the site, or ran into old friends. But, the
exam in Houston was cancelled half-way through.
So a bunch of people still need to take 2 parts
of the exam. Oh fun!
Earlier this week, I got a loooong letter from
Incorp Services Inc. of Nevada. It seems they
objected to a Scam Alert I wrote over six months
ago, back in February, naming their company as
one of those who send misleading solicitations.
It's been a rather interesting conversation,
actually. Their Director of Operations, Doug Ansell,
may yet persuade me that the company has merit.
You decide. Please read the initial discussion
and give us your comments.
http://taxmama.com/AskTaxMama/327/article5.html
Do your eyes glaze over when that
certain one of
your friends or relatives starts talking
about
their relationships? You'll want to read today's
Relationship Tip from Drs. Judith and Jim.
Now that the weather's changing, thoughts turn
to Halloween. Plan the evening now, so you and
your children can have fun, stay save,
be ready
for all the ghouls ready to play tricks.
http://taxmama.com/resources/specials.html
The tax relief Bill just went to President Bush
for signature yesterday. Expect him to sign soon.
http://www.webcpa.com/article.cfm?articleid=15708
Read the overview of some of the key points below.
We also have a rather intriguging question
about a credit card rebate that funds your
IRA. How do you think that ought to work?
Oh yes! We have a bedroom makeover opportunity
for you today. Read the details below.
More next week!
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/
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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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Media Tour and Classes
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Next Webinar - September 28, 2005
How to Run Your Business Instead
of Letting it Run You.
Guests, Joseph & Jacqueline Freeman
who've moved back to the farm...
and now control their lives and finances
Learn to get rid of your stress and
increase your income.
Please sign up here
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No download will be needed. Just click and
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USE
THESE QUICKIE RESOURCES!
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101 WAYS TO BE YOUR BEST
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Small Business Taxes Made Easy
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Custom autographed book, just for you - $17.50
includes shipping in the continental US.
http://asktaxmama.com/go/autographed
Bonus: CD - Dan Janal interviews TaxMama:
Should I Incorporate or What?
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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 and tax news. You're also missing daily
news and other commentary.
Please - accept a complimentary subscription from your
cheery TaxMama - to the Internet's NUMBER ONE tax podcast
http://www.taxmama.com/taxquips/
This weeks pearls of wisdom are at:
http://www.asktaxmama.com/podcast/
MONDAY - On Consignment
http://www.asktaxmama.com/podcast/index.php?id=59
TUESDAY - Withholding Too Much
http://www.asktaxmama.com/podcast/index.php?id=60
WEDNESDAY - TaxMama's Audit Secrets
http://www.asktaxmama.com/podcast/index.php?id=63
THURSDAY - Tax Check Bounces
http://www.asktaxmama.com/podcast/index.php?id=64
FRIDAY - Trucker Per Diem
http://www.asktaxmama.com/podcast/index.php?id=65
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Home Makeover Opportunity
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For our February Real Simple home story, Claudia
Bloom is looking for 4 bedrooms in 4 homes that
could use a makeover.
These bedrooms should include twin, full or queen
beds (not kings) and should be in homes anywhere
in the US except in the tri-state area (not in
New York, Connecticut or New Jersey.) We will be
sprucing up the rooms for the purpose of the
photo shoot/article and may need to hang art and
decorative items on the walls as well may need to
paint a bit. (Items used except for small props
may be provided to the subjects we include.)
If you're interested in having your bedroom
considered, here's what I'll need in your reply
by end of day, Oct. 3rd.:
For all family members:
*Names
*Contact #'s
*Location
*Ages (including if children)
*Occupations
*A brief description of your bedrooms and why
you think they need a makeover.
*JPEG photos - of members of the household.
*JPEGs of the bedroom you'd like us to consider.
Thanks.
Claudia Bloom
REAL SIMPLE, casting
claudia_bloom@realsimple.com
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Hurricane Katrina Relief
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Hurricane Katrina Relief
The relief bill has gone to President Bush
for signature. Expect to see some of these
provisions in the final relif bill:
Allowing deductions for taxpayers who take in
hurricane evacuees ($500 per evacuee up to $2,000)
Exempting from taxation debts cancelled because of
the hurricane.
Waiving the 10% penalty for early withdrawal
from retirement plans.
Eliminating the 10% floor for casualty losses
incurred in the disaster area (including those
claimed on amended returns.
Extending the replacement period for non-recognition
of gain (for property in the disaster area) of
involuntarily converted property).
Raising the mileage rate for charitable use of
automobiles (the two bills differ slightly here,
with the House at 70% of the standard mileage
rate and the Senate at 60%)
Allowing use of 2004 earned income to calculate
the child credit and earned income credit for 2005
returns
Creating a tax credit for employers retaining on
their payrolls disaster area employees.
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The summary was provided courtesy of The National
Association of Enrolled Agents. NAEA www.naea.org
For more details, please read the Bill Summary
http://thomas.loc.gov/cgi-bin/bdquery/z?d109:HR03768:@@@D&summ2=1 &
And here's an article in the San Francisco Chronicle
http://go.asktaxmama.com/katrinatax
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Corp Carping
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From: Canoga Park, CA
Dear TaxMama,
If our California corporation was suspended,
how dowe get back in good standing, what do
we need to provide?
Or do we need to dissolve and start a new one?
Thanks
David
<TaxMama Replies>
Hi David,
Ouch, that can be expensive.
No, don't dissolve...unless you owe California
waaaaaaaaaay too much, but didn't take any money
out of the corporation.
You reinstate the corporation by
1) Preparing and filing all outstanding tax returns.
2) Paying the outstanding state corporate taxes due,
plus penalties and interest.
If you let it lapse for a few years, you might find
that it is cheaper to walk away and start a new one.
However, consider these issues:
1) Is your business based on licenses (like contractor,
professional licenses, cosmetician, etc.)? If those
licenses come from the State of California and they
are tied to your corporate name....you may need to
resolve the suspension to get your license
reinstated.
2) If you have contracts with customers under the
old corporation, you would have to get new contracts
signed with a new corporation. Not always a great idea
to let your customers know you can't run your own
business properly.
3) Leases or loans - they might be in the name of the
old corporation. You'll need to transfer them to a new one.
Again...how will that look? Or can you even do that?
You'll find some more specifics about when and how you
may abandon a corporation in California in my responses
at Google Answers.
http://answers.google.com/answers/threadview?id=561242
Best wishes,
Eva Rosenberg, MBA, EA
http://www.TaxMama.com
If you're in business, READ THIS BOOK.
Small Business Taxes Made Easy - read all about it!
http://www.taxmama.com/AskTaxMama/book/
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IRA Carded
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From: Fort Lauderdale, FL
Dear TaxMama,
I am thinking of applying for the Fidelity MasterCard
that automatically applies 1.5% of all purchases
made on the card to a Fidelity traditional IRA
account and before I apply I would like to know if
this contribution will be eligible as a tax deduction
(of course if within IRS limits). I realize that
charitable contribution type reward credit cards do
not qualify as deductible charitable donations because
the reward card is basically a consumer rebate. I am
thinking this may be the same situation with the
Fidelity card.
I currently hold a cashback card that gives me up to
5% based on where I spend (capped at $300/year) in
the form of a statement credit that I routinely
request a refund check then cash the check and place
it into my IRA account. But it seems as though the
Fidelity card would be a little more convenient in
terms of automatically depositing it without having
to request and wait for the refund check.
Thanks
Regina
<TaxMama Replies>
Hi Regina,
That's an interesting question.
I know that if you get mileage or bonus points,
those things are not taxable.
Getting cash back IS taxable - and I report it
on my tax return as either interest income or
a reduction of interest expense, depending on
whether I get the check or just use it to
reduce my balance due. The net effect is the
same - it increases the profits.
But getting money that goes into an IRA....
hmmm... I just don't know. Here's what I
suspect will happen:
You'll report the payment as income (because
what they are giving you is like cash). Then,
you may deduct the IRA contribution.
But it's worth asking IRS and seeing if IRS
has a policy about this.
I've sent them a note. Let's see what they say.
Best wishes,
Eva Rosenberg, MBA, EA
NEW! POSTAGE STAMPS - THE ORIGINAL 1913 TAX RETURN
http://www.cafepress.com/taxmama.28979465
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Relationship Tip
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[TaxMama note: One of the best ways to bore your
family, friends, and even your dates, is to go
on and on about your failed relationships. It's
entertaining...for about the first two minutes.
OK, sometimes, it's even titillating. But, after
hearing about the same pattern of failures for
the gazillionth time...even TaxMama's have had
enough. Have mercy on your family and friends.
Read Dr. Judith's and Dr. Jim's relationship tip
- and when you're done - either attend their
Dating Summit, or send your miserable
friends
there. You'll be so pleased! Until they start
boring you with tales of how happy they are.]
PERSONAL POWER IN YOUR RELATIONSHIPS
Judith Sherven, PhD and Jim Sniechowski, PhD
Relationships are unavoidable. Yet, did you receive
any training for effective dating, successful mating,
and productive alliances in the world of work?
We know from asking men and women all over the
United States and in England, Australia, and Canada
that the answer 99% of the time is NO.
We're just expected to figure it out.
But unfortunately many people never do and they
suffer throughout their lives, often making other
people miserable in the process and missing out
on romance, love, and success that could otherwise
be theirs.
The most important fact that must be acknowledged
and incorporated into how we relate to each other
is this:
The Other Person Is Not You.
Pretty simple. Undeniably basic.
Yet , most relationships fail because that universal
truth is not understood or at best ignored.
So improve all of your relationships immediately
by staying focused on how different other
people are, and do not expect them to be like you.
*******
And, if you're single, or know single people who want
to learn how to date for success every time, check out
Judith & Jim's "Smart Dating Summit"
October 5 and 12 by going to
http://go.asktaxmama.com/smartdating
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Because We Care
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HURRICANE KATRINA
To help or to get help:
First.gov - http://go.asktaxmama.com/KatrinaRecovery
FEMA - http://www.fema.gov/news/newsrelease.fema?id=18473
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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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Ft. Lauderdale Parking
Pedro was driving down the street in a sweat
because he had an important meeting and
couldn't find a parking place.
Looking up toward heaven, he said "Lord, take
pity on me. If you find me a parking place I
will go to Mass every Sunday for the rest of
my life and give up tequila."
Miraculously, a parking place appeared.
Pedro looked up again and said,
"Never mind. I found one."
------
Contributed by Blakely Sanford, EA in San Diego
[Remember, we're always looking for SHORT, clean humor!]
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IRS and Tax NEWS
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Courtesy of IRS
IR-2005-108, Sept. 21, 2005
IRS Announces Additional Agreements to Assist
Disaster Victims
WASHINGTON -- The Internal Revenue Service announced
today that additional tax professional organizations
have agreed to partner with it to provide assistance
to taxpayers at local disaster recovery centers
established by the Federal Emergency Management
Agency (FEMA).
The National Association of Enrolled Agents (NAEA)
and the American Association of Attorney-Certified
Public Accountants (AAA-CPA) are the latest
organizations to join IRS employees in staffing
disaster recovery centers and assisting taxpayers
affected by Hurricane Katrina. The American
Institute of Certified Public Accountants (AICPA)
signed a similar agreement with the IRS earlier
this month.
Read more about these fine organizations
http://www.irs.gov/newsroom/article/0,,id=148293,00.html
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IR-2005-109 September 21, 2005
IRS Updates Hurricane Katrina Tax Relief Guidelines
For Taxpayers in Four States, Relief Workers And
Others Impacted
WASHINGTON � With recovery efforts well underway from
Hurricane Katrina, the Internal Revenue Service
announced today additional details to help ensure
that those impacted by the storm get the tax relief
to which they are entitled. Notice 2005-73, also
released today, has full details regarding the relief.
Taxpayers affected by the hurricane may be eligible
for tax relief, regardless of where they live.
Deadlines for affected taxpayers to file any returns,
pay any taxes and perform other time-sensitive acts
have been postponed to Jan. 3, 2006.
For specific information on how to get Katrian tax
breaks, based on where you live, please read IRS's
notices:
http://www.irs.gov/newsroom/article/0,,id=148284,00.html
For ALL the Katrina legal guidelines in one place:
http://www.irs.gov/newsroom/article/0,,id=148203,00.html
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CAREER CENTER Employee of the Week
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Lee is an Accountant with a BA, a CPA, 3+ years experience
- $15-$20/hour or the equivalent per year. He is in
Alpharetta GA.
Operating Systems Spreadsheets Word Processing
Windows, DOS Excel Microsoft Word
Lotus 123 WordPerfect
Accounting Systems: FAMIS, LGFS Advantage, SAP and Oracle
Database Software: Access 97, MIcrotalk, Intelligent Query,
DS Designer and Crystal Reports.
Network Environments: CAI Net, GroupWise, Lotus Notes
Experience in financial reporting, budgets, government
entities, colleges and corporations.
You can find Lee and professionals like him
at TaxMama's Career Bank
http://taxmama.careerbank.com/
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CAREER CENTER
http://taxmama.careerbank.com/
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Is it time to hire new employees? TaxMama's
Career Center provides members like you with the
best tools for finding employees in our industry.
Explore the center today and take advantage of its
exclusive tools including job postings and resume
searches. As a member of the leading online career
center network for banking, finance and accounting
professionals, you can post your job on
our Career
Center once and it will automatically be seen on
90+ accounting, finance and banking organization
career centers. Visit the TaxMama's CareerBank
http://taxmama.careerbank.com/
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TaxMama On the WWW & Tooting Her Own Horn
http://taxmama.com/toots/index.html
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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
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