-----------------------------------------------------------------
*** Ask TaxMama Volume 6, Issue #288 December 17, 2004 ***
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
-----------------------------------------------------------------
Deadlines LOOMING - http://taxmama.com/taxcalendar.html
December 31, 2004 - Last day to open KEOGH for 2004
December 31, 2004 - Last day for charitable contributions for 2004
-----------------------------------------------------------------
-----------------------------------------------------------------
VISIT OUR NEW JOBS PAGES http://taxmama.careerbank.com/
Check out the 2004 Salary Survey results to see where you stand.
-----------------------------------------------------------------
Dear Family,
Well, if you check CBS.MarketWatch.com this weekend,
you'll find the tax issues surrounding Oprah's cars.
If you remind me, in January, I'll put up an expanded
version of that article with all the citations and
comments from the IRS and the tax professionals who
were consulted. Now that advertisers are spending so
much money on big-ticket gifts for audiences of talk
shows - you're going to be ever more interested in
being a spectator at a taping. And you're going to
care more about the tax treatment of the gifts.
Today's Money Funny strikes home for me. If you
didn't live through times like that, perhaps you
might want to talk to someone who did. It was
wonderful!
I went to some update workshops in the past couple
of weeks. Thank goodness _I_ don't have to read
all the new laws myself. I am so grateful that
there are others I can pay to distill the information
for me. But, that also means I have LOTS of news
and warnings and tips for you. You'll be seeing
notes, tips and alerts over the next few weeks. So,
please read the IRS News pages.
I was looking for THE BOOK in Barnes & Noble last
week, but didn't see it on the shelves yet. But
Amazon has been selling it like crazy this week.
Yesterday, Small Business Taxes Made Easy had an
Amazon rank of 150,000. Today, it's at 45,000. And
we haven't even started to promote it. Most of the
active media stuff will happen after the first of
the year...though, I'm starting to tape materials
with radio columnists this month. I've got to tell
you, I am meeting some of the nicest people - you'll
read more about them next year.
Oh, great news for families saving up for college.
Attorney Bruce Drooks, in West Hills, CA, just told
me that MBNA has credit cards where, instead of
getting mileage or other points, they'll put a
percentage of your purchases into a 529 College
Savings Plan - check it out. They have two plans.
http://www.mbna.com/creditcards/investor.html
And here's a bit of fun - World Hypnotism Day is
coming up on January 4th. Join Tom Nicoli, Ph.D.
and his buddies. Sign up now to reserve your
space in space - www.worldhypnotismday.com
Time to run. I don't know if we'll have an issue
next week, since I'll be on vacation. If not,
well, I'll miss you. Merry holidays - and treat
someone really well today. Someone who has no
reason to expect it.
Best wishes,
Eva Rosenberg, EA
Your TaxMama is watching...out for you.
P.S. Remember, TaxMama's Secrets is now available on CD
http://www.cafeshops.com/taxmama.6819226
P.S.S. Drop by TaxMama's Shopping pages
http://taxmama.com/resources/shopping.html
P.P.S. TaxMama is starting to schedule speaking/teaching
engagements for next year.
http://www.speakermatch.com/showcase/speakerinfo.asp?id=-667529472
P.P.S. If you're using spam blocker software, please add
taxmama.com to your approved list. I don't have time
to keep responding to each request for authentication.
I get hundreds.
**************************************************
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
**************************************************
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.
**************************************************
-------==========**********O**********==========-------
In 2003, Americans OVERPAID their taxes by more than $500 MILLION!
Play a simple, two minute game and learn what tax professionals call
"the most overlooked tax deduction in America." ItsDeductible will put
$300 to $1200 back in your pocket -- guaranteed -- or your money back.
http://1deg.net/ht/id1/taxmama/
-------==========**********O**********==========--------
To establish the basis of your donated vehicles -
Or to research price quotes and vehicle information
use
EDMUNDS .com
http://www.jdoqocy.com/click-241922-10364151
-------==========**********O**********==========--------
-----------------------------------------------------------------
Phishing For Your Identity
-----------------------------------------------------------------
Al Tompkins has a terrific column today, all about those
companies that send you e-mail, pretending to be companies
you trust. Please read his column on Phishing - and add
Washington Mutual Bank and Sun Trust Bank to list of
companies whose logos are being used in fake e-mails.
http://poynter.org/column.asp?id=2&aid=75764
-----------------------------------------------------------------
Radio Tour
-----------------------------------------------------------------
Tune in to Mike Kavanagh at WSB Radio in Atlanta, and on CNN.
You'll be hearing tax tips starting in January.
http://wsbradio.com/about_us/moneymattersshow.html
Coming soon - weekly radio show in the MoneyRoom...stay tuned
-----------------------------------------------------------------
New IRS Balance Due Notices
-----------------------------------------------------------------
Several people have called or written to me about
a series of IRS invoices you've gotten. The balance
due arises because you used the wrong amount, or no
amount for the advance Child Tax Credit you received
last year.
OK, friends, I am not surprised at this error. It
was inevitable.
Please go ahead and pay the taxes due if you are
sure that IRS is correct and you received the money
but didn't report it.
Hold off on the interest and penalty IRS charged.
At least for a few more days.
I have asked IRS to see if they could waive the
penalties on this balance due. The errors were
often due to the fact that IRS had the wrong amounts
on the website in the early part of tax season.
And no access to that database at the end of tax
season.
No promises. But I am trying to get IRS to cancel
those penalties. They are seeing if they can do it
for you. Consider it my holiday gift to you.
Best wishes,
Eva Rosenberg, MBA, EA
http://www.TaxMama.com
Small Business Taxes Made Easy - 30% off at Amazon.com
http://www.amazon.com/exec/obidos/tg/detail/-/0071441689/mywishlistA/
-------==========**********O**********==========-------
Tax-Free Rewards - Frequent Flier Miles
Visit Tim Winship's FrequentFlier.com to get lots of them
http://frequentflier.com/cgi-local/pl.cgi?sub
-------==========**********O**********==========
-----------------------------------------------------------------
Really Old W-2
-----------------------------------------------------------------
From: Commerce Township , MI
Dear TaxMama,
Could you please direct me on to how to obtain a
copy of a W-2 from the IRS from the 1960's?
It would be one for my mother, who is deceased.
I think the company she worked for may owe her money.
And they require proof she worked there.
Thank you.
Debra
<TaxMama Replies>
Hi Debra
And you just noticed? Whatever made you
realize that they still owe her money?
There is probably no way to get a copy of a W-2
from that far back.
However, you just might be able to get a transcript
with a printout of the information that would have
been on the W-2. Use Form 4506-T and check box 6e
http://www.irs.gov/pub/irs-pdf/f4506t.pdf
It will take at least 30-90 days to get it -
if IRS still has it.
But going back that far....I don't know if even IRS
has any records on any taxpayers who don't have
outstanding issues that far back.
If you're really, really pushy though, you might be
able to get the Social Security Administration (SSA)
to dig that far back.
They actually get the copies of the W-2s that
employers file.
It might take an act of Congress, literally, to get
that W-2 from the SSA. I mean it. If you get nowhere,
contact your Sentor or Representative for help. You
can use the links on this Call to Action page to
find them.
http://taxmamma.com/Articles/calltoaction.html
Best wishes,
Eva Rosenberg, MBA, EA
http://www.TaxMama.com
http://www.iHelpMate.com
The BOOK is out!
Small Business Taxes Made Easy http://snipurl.com/74dv or from Amazon.com
http://www.amazon.com/exec/obidos/tg/detail/-/0071441689/mywishlistA/
================================================
Hey! Look at your teeth. Come on - get them cleaned.
http://www.qksrv.net/click-241922-8219039
=================================================
-----------------------------------------------------------------
Senior Moments
-----------------------------------------------------------------
From: Colorado
Dear TaxMama,
I have a very trickey situation on my hands.
About two years after my mother passed away, I was
helping my father clean out and old desk in the
living room.
I found tax filings back to 1960, but no recent ones
(1998 - 2002). When I asked dad about it, he said
mom always handled that, and after she got sick,
he didn't know what to do.
How to I go about getting this right with Uncle Sam,
without getting my father into a load of trouble.
He only has a small pension, so doesn't have the
ability to take on a large debt.
Mike
<TaxMama Replies>
Hi Mike
Ouch. Big Owwiieee.
Don't go to IRS.
First, gather all the information and prepare
all the missing tax returns.
If you don't think you have all the income
information, you can get the missing data
from IRS via Form 4506-T and check box 6e
http://www.irs.gov/pub/irs-pdf/f4506t.pdf
No doubt, you'll learn there were refunds due.
And your parents are likely to lose the ones
that are over 3 years old. (So prepare 2001
quickly to save it.)
If there are taxes due, you will probably be able get
IRS to do two things for you, under the circumstances:
1) Waive late filing penalties - with a good explanation.
2) Set up an installment plan for the balance due
so your dad can pay it over time.
If dad doesn't own anything (spelled 'home'), he
might even be able to get an offer in compromise
and settle the whole thing for a fraction of the
balance due.
But if he owns a home, and has equity...IRS will
want the debt paid.
A home equity line should be easy to get.
I suspect there's little or nothing due, though.
So don't panic.
Just pull it all together and see where he stands,
first. OK?
Once you see the whole picure...the next steps
will be obvious. And don't stress Dad over this.
Best wishes,
Eva Rosenberg, MBA, EA
http://www.TaxMama.com
----------------------------------------------------------------
Because We Care
----------------------------------------------------------------
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
==========
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
==========
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
-----------------------------------------------------------------
MONEY FUNNIES
-----------------------------------------------------------------
The Survivors
Congratulations To the Kids Who Survived the
1930s, 40s, 50s, and 60s.
First, we survived being born to mothers who smoked
and/or drank while they carried us.
They took aspirin, ate blue cheese dressing and
didn't get tested for diabetes.
Then after that trauma, our baby cribs were covered
with bright colored lead-based paints.
We had no childproof lids on medicine bottles, doors
or cabinets and when we rode our bikes, we had no helmets,
not to mention the risks we took hitchhiking.
As children, we would ride in cars with no seat belts
or air bags. Riding in the back of a pick up on a warm
day was always a special treat.
We drank water from the garden hose and NOT from a bottle.
We shared one soft drink with four friends, from one
bottle and NO ONE actually died from this. We ate
cupcakes, bread and butter and drank soda pop with sugar
in it, but we weren't overweight because
WE WERE ALWAYS OUTSIDE PLAYING!
We would leave home in the morning and play all day, as
long as we were back when the streetlights came on.
No one was able to reach us all day. And we were O.K.
We would spend hours building our go-carts out of scraps
and then ride down the hill, only to find out we forgot
the brakes. After running into the bushes a few times,
we learned to solve the problem.
We did not have Playstations, Nintendo's, X-boxes, no
video games at all, no 99 channels on cable, no video
tape movies, no surround sound, no cell phones, no
personal computers, no internet or internet chat rooms...
WE HAD FRIENDS and we went outside and found them!
We fell out of trees, got cut, broke bones and teeth
and there were no lawsuits from these accidents.
We made up games with sticks and tennis balls and ate
worms and although we were told it would happen, we
did not put out very many eyes, nor did the worms
live in us forever.
We rode bikes or walked to a friend's house and knocked
on the door or rang the bell, or just walked in and
talked to them!
Little League had tryouts and not everyone made the team.
Those who didn't had to learn to deal with disappointment.
Imagine that!!
The idea of a parent bailing us out if we broke the law
was unheard of. They actually sided with the law!
This generation has produced some of the best risk-takers,
problem solvers and inventors ever!
The past 50 years have been an explosion of innovation and
new ideas. We had freedom, failure, success and
responsibility, and we learned HOW TO DEAL WITH IT ALL!
And YOU are one of them!
CONGRATULATIONS!
Please pass this on to others who have had the luck
to grow up as kids, before the lawyers and the government
regulated our lives for our own good.
Kind of makes you want to run through the house with
scissors, doesn't it?!
----
Courtesy of Blakely Sanford, EA in San Diego
-----------------------------------------------------------------
IRS NEWS
-----------------------------------------------------------------
NEWS FLASH - IRS just released the Sales Tax Tables
everyone's been waiting for. Here's Publication 600
http://www.irs.gov/pub/irs-pdf/p600.pdf
This is designed so people who live in states without
state income taxes can deduct sales tax expenses instead.
It's also a good planning strategy for people who pay little
or no state income taxes to get a deduction.
This is great if you just bought a personal car or other
large-ticket item. There are some interesting planning
possibilities if you think about it.
--> HSA Alert
http://taxmama.com/AskTaxMama/244/hsa.html
As much as I love those new accounts, be very careful
about moving money from your Medical Savings Account (MSA)
into one of these accounts. It could trigger taxable income,
especially if your state doesn't recognize the HSAs.
--> Refi Alert
You're merrily refinancing your home for the 4th time
in 3 years. You're counting on being able to deduct the
points from the last refinance. Not any more.
IRS just clarified the rules on that. If you refinance
your loan with your existing lender, you must continue
to write off the old points for the life of the loan.
To be able to deduct points from previous loans - make
sure you replace that loan with a loan from a different
company or lender.
--> Commuting Alert
Taxpayers have traditionally been deducting commuting
mileage when they worked on temporary jobs. Under Revenue
Ruling 99-7, you may not deduct mileage within your
metropolitan area. That's defined as being within a 35
mile radius of your home.
---------------------------------------------------------------
E-Books and Workshops - all Yours - No Charge
-----------------------------------------------------------------
NEW! Fifty Easy Ways to Promote Your Website, By MERLE
http://www.websitetrafficplan.com/ebook.htm
This is one woman who's done well.
And she's not charging you a dime for
her years of experience.
---
New Year's Resolution Time - Budgets!
Money For Life, a novel about budgeting...
along with some interesting tools for you.
http://giftsurf.com/Specials/Money4Life.pdf
--
For more:
http://taxmama.com/workshops/
-------------------------
Not-So-Fr*e Books
-------------------------
http://taxmama.com/resources/shopbook.html
eBook - TaxMama's Secrets:
Ten Businesses to Start Online Without Spending One Thin Dime
hhttp://www.1automationwiz.com/app/aftrack.asp?afid77528
For more:
http://taxmama.com/resources/shopbook.html
-----------------------------------------------------------------
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
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Critical Dates http://taxmama.com/taxcalendar.html
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Ask TaxMama is published by the good folks at http://taxmama.com
ISSN 15320790 © copyright, Eva Rosenberg, 1999 - 2004
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!
-----------------------------------------------------------------
Legalese and Disclaimer http://taxmama.com/privacy/disclaim.html
-----------------------------------------------------------------
Got questions? http://taxmama.com/subscribe/askform.html
This publication is ONLY sent via voluntary subscription.
To Subscribe http://taxmama.com/subscribe/
To unsubscribe at any time, click on the link under this line.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~