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*** Ask TaxMama Volume 7, Issue #294 Feburary 4, 2005 ***
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Deadlines LOOMING - http://taxmama.com/taxcalendar.html
02.15.2005 File new W-4 with Employer if you claimed exempt
in 2004
02.14.2005 Employers Make monthly Payroll tax deposit
02.28.2005 File W-2's with Social Security Admin
02.28.2005 File 1099's with IRS
02.28.2005 File City of L.A. Business License/Tax Form
02.18.2005 Get 2004 Corp Data to me to file on time
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VISIT OUR JOBS PAGES http://taxmama.careerbank.com/
Check out the 2004 Salary Survey results to see where you stand.
Washington DC needs a Deputy Chief Financial Officer for $100k+
http://taxmama.careerbank.com/seeker/view_job.cfm?id=118403
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Dear Family,
This week brought us a State of the Union Address, a tax
amnesty...and several calls from people about these letters
they've been getting about their corporations.
Since the number one question I have gotten this month
is WHAT DO I DO IF I DON'T GET MY W-2? I'll let IRS
answer it in today's IRS news.
You can read more about all this in today's issue.
For those of you who are Celestial Navigation fans,
they have a new CD for Valentine's Day - It's not up
on the site yet, but you can contact them.
http://www.celestialnavigations.com
If you love storytelling, just pick up a CD, curl up
to the fireplace with your favorite cuddly body,
(or http://www.cafepress.com/taxmama/127174 )
turn down the light and just listen. You'll be enchanted.
I know you'll have a lovely weekend...because you're
working on your tax files, right?
Best wishes,
Eva Rosenberg, EA
Your TaxMama is watching...out for you.
P.S. THE BOOK is out
http://www.taxmama.com/AskTaxMama/book/
P.S.S. Drop by TaxMama's Shopping pages
http://taxmama.com/resources/shopping.html
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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use
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Radio Tour
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Jim Blasingame - the Small Business Advocate.
If you missed this week's show, you can find it
in the archives - and stick around, there are at
lot of other interesting interviews there, too.
http://www.smallbusinessadvocate.com/cgi-bin/archives.cgi
Tune in to Mike Kavanagh at WSB Radio in Atlanta, and on CNN.
http://wsbradio.com/about_us/moneymattersshow.html
http://wsbradio.com/features/2004_tax_tips.html
Coming soon - weekly radio show in the MoneyRoom...stay tuned
[Yes, someone kindly pointed out that my TOOTS pages
haven't been updated since 2003. Sorry - been too busy
living to write about it.)
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Tax-Free Rewards - Frequent Flier Miles
If you were reading Tim Winship's FrequentFlier.com
you'd be traveling free this summer
http://frequentflier.com/cgi-local/pl.cgi?sub
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President Bush and Social Security
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Yesterday, President Bush presented his State of the Union
message to repeated applause, purple fingers, and some boos.
One of the things he postulated was allowing us to set aside
a portion of our Social Security tax contribution and
investing it ourselves. His vision is to have the money
invested in extremely conservative securities - bonds, or
very safe stocks.
But President Bush didn't mention any provisions to
absolutely prohibit you from using the money in that account.
PERIOD. NO WITHDRAWALS.
But if this is to replace part of SS, it should be untouchable
until you are eligible to collect Social Security.
Shall we see how much we could earn if we did that?
[read on...if you dare... http://taxmama.blogspot.com/ ]
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California Tax Amnesty
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This is the month that the State of California Franchise Tax
Board has opened up for you to file for tax amnesty. So, if
you haven't filed tax returns for a year or more; or if you
owe Ah-nold money, RUN, don't WALK to the nearest tax amnesty
application (good for income tax and sales & use tax).
http://www.ftb.ca.gov/amnesty/
Don't worry, you don't have to complete and file the returns
right now. Just postmark the application by March 31st.
You have until May 31st to get your returns filed.
It's well worth doing. If you get approved for the amnesty, the
State will cancel most your penalties and collections fees - and
the interest due on those amounts.
You DO have to pay the tax to get the benefit of the amnesty.
But if you don't have the money right now, you may set up an
installment agreement - as long as you pay it all in full by
June 30, 2006. (If you're still short in June 2006 - BORROW
the money. It will be cheaper than having all the penalties
reinstated.)
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Scam Alert -
Corporate Update Letters
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It seems that there are several companies out there who
are sending you very official-looking letters that appear
be your state's annual list of officers update, or minutes
updates. They all charge you $125 - $175 for a service
you don't need.
I am holding three of them on my desk right now that look
frighteningly real.
One from Incorp Services, Inc. of Las Vegas is really
disturbing. It looks almost exactly like the California or
Nevada Secretary of State form for reporting the Annual
List of Officers and Directors. It charges you a $185 fee
instead of the $125 you would pay the state. (It may end
up costing you a little less overall, since it does replace
your current year fee to your present agent of service.
Why, because, in fact, they have you sign to replace
your agent of service.
OK, there is a cover letter...in really tiny print.
With certain words enlarged, like FREE, and they've
highlighted the instructions to send them the check or
money order in yellow - just like your accountant or
attorney would. And reading that, I see that they
do explain...but most people will never read it.
More disturbing - they replace YOUR mailing address
on the officer's lines with theirs. So, you'll never
get any official mail again - and they'll be in control
of your corporation or LLC. That also means that all
those credit card offers that come to your business
will go to them. Just imagine that potential damage if
they should decide to use it!
Another one from the Corporation Complaince Recorder
in Los Angeles has a nice, official control number
stamped on it, that looks like a Secretary of State's
recording stamp. They only charge you $125 to file the
form that comes to you filled in from the state and
only costs you $20 to file. Hmmm...good profit.
And the Board of Minutes and Resolutions, Compliance
Division in Sacramento only charges you $175 for
essentially the same service.
Don't let yourself get scammed by companies like these.
You already understand how they overcharge you to file
the annual report.
But, when it comes to the minutes, you're not so sure.
Right. Well, my friend...you need a heck of a lot more
information in your Minute Book than the few, paltry
questions their form asks. You need to write in all
the decisions you've made about business policy,
compensation, major purchases, employee (or your)
benefits, etc.
No doubt, there are companies in that marketplace
that provide a good minutes update service. But
these are not them. They're a waste of money.
So, sit down with your own tax or legal
professional to compile those minutes each year.
Incidentally, many small, privately held corporations
don't need them at all. They are so small that your
state exempts you from this obligation.
But, for tax purposes, I'd advise that you do write
out your decisions each year, and sign and date them.
It will be a big help if you're ever audited.
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Because We Care
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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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Financial Pranks for Yourself and Your Friends
A Million Bucks
http://www.prankplace.com/funnymoney.htm?kbid=1109
Behind the 8-Ball
http://www.prankplace.com/magicballs.htm?kbid=1109
You've finally hit the lottery!
http://www.prankplace.com/lottery.htm?kbid=1109
Flip a coin
http://www.prankplace.com/quarter.htm?kbid=1109
Giving no Quarter
http://www.prankplace.com/statequarters.htm?kbid=1109
Big Spender?
http://www.prankplace.com/atm.htm?kbid=1109
This is going to cost you!
http://www.prankplace.com/parking.htm?kbid=1109
And a few purely silly things!
Uh oh! There goes the window!
http://www.prankplace.com/smashed.htm?kbid=1109
Hats Off!
http://www.prankplace.com/hats.htm?kbid=1109
Don't Cross me!
http://www.prankplace.com/tapes.htm?kbid=1109
Potty Humor
http://www.prankplace.com/revengetp.htm?kbid=1109
----
[TaxMama note: Do NOT allow your children to visit
any of the other pages on this site. These are the
primary 'clean' pages.]
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IRS and Tax NEWS
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Courtesy of IRS - IRS Tax Tips
What to Do If You Haven’t Received a Form W-2
You should receive a Form W-2, “Wage and Tax Statement,”
from each employer you worked for to use in preparing
your federal tax return. According to the IRS, employers
must furnish this record of 2004 earnings and withheld
taxes no later than Jan. 31, 2005 (if mailed, allow a
few days for delivery).
If you do not receive your Form W-2, contact your employer
to find out if and when the W-2 was mailed. If it was
mailed, it may have been returned to your employer
because of an incorrect or incomplete address, so be
sure to verify your address. After contacting your employer,
allow a reasonable amount of time for your employer to
re-mail or to issue the W-2.
If you still do not receive your W-2 by Feb. 15, contact
the IRS for assistance toll free at 1-800-829-1040. When
you call, have the following information handy:
==> The employer's name and complete address, including
zip code, the employer’s identification number (if known)
and telephone number;
==> Your name, address, including zip code, Social
Security number, and telephone number; and
==> An estimate of the wages you earned, the federal
income tax withheld, and the dates you began and ended
employment.
If you misplaced your W-2, contact your employer and
be prepared with the information listed above. Your
employer can replace the lost form with a “reissued
statement.” Be aware that your employer is allowed
to charge you a fee for providing you with a new W-2.
You still must file your tax return on time even if
you do not receive your Form W-2. If you cannot get
a W-2 by your tax-filing deadline, you may use Form
4852, “Substitute for Form W-2, Wage and Tax Statement,”
http://www.irs.gov/pub/irs-pdf/f4852.pdf
but it will delay any refund due while the information
is verified.
If you receive a corrected W-2 after your return is
filed and the information it contains does not match
the income or withheld tax you reported on your return,
you must file an amended return on Form 1040X,
"Amended U.S. Individual Income Tax Return".
Form - http://www.irs.gov/pub/irs-pdf/f1040x.pdf
Instructions - http://www.irs.gov/pub/irs-pdf/i1040x.pdf
You can download Forms 4852 and 1040X and their
instructions or order them by calling toll free
to 1-800-TAX-FORM (1-800-829-3676).
[TaxMama Note: The only thing is, IRS does not
exactly address what to do if your employer is gone -
kaput, bankrupt. When you simply have no way of
reaching a former employer, and you didn't get a
real paystub, just a check, you may need help.
If you are able to figure your gross payroll and
withholding yourself, do it - and use the Form 4852.
If not, get a tax professional to help you arrive at
the right amounts, so you can attach an explanation
to that Form 4852. ]
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For more:
http://taxmama.com/workshops/
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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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