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Ask TaxMama comes to you each Friday
Read it ONLINE (by Sunday) http://www.taxmama.com/asktaxmama
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*** Ask TaxMama Volume 7, Issue #300 March 18, 2005 ***
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Deadlines LOOMING - http://taxmama.com/taxcalendar.html
03.31.2005 California
Tax Amnesty ends
http://www.taxmama.com/AskTaxMama/294/article2.html
April 15, 2005 - Personal Income Taxes Due (Form 1040)
April 15, 2005 - Partnership Tax Returns Due (Form 1065)
April 15, 2005 - Trust Tax Returns Due (Form 1041)
April 15, 2005 - Or get first extensions
http://www.taxmama.com/Articles-cur/filingextips.html
April 15, 2005 First estimated payment for 2005 due
http://www.taxmama.com/Articles-cur/es.html
Remember - you can use EFTPS to make the payments
http://www.taxmama.com/AskTaxMama/297/article1.html
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JOB OF THE WEEK http://taxmama.careerbank.com/
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Robert Half has 7014 jobs all over the country - work anywhere!
http://taxmama.careerbank.com/company_jobs.cfm?company_id=7117
Check out the 2004 Salary Survey results to see where you stand.
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Dear Family,
I am working hard to prepare next week's
online workshop for you. Please join us as
my guest for information on the Tax Aspects
of Doing Business Online.
Please see the instructions on how to sign up
and download the special meeting room in advance.
We are using a new multimedia conferencing tool
that you're really going to enjoy. I was testing
out the service earlier this week and visited a
meeting room. What a delightful group of people!
I had a live, voice conversation with people in
France, British Columbia and the US. It was as
cozy as having them in my own parlor.
Next week, after the event, I'll tell you how you
can use this for your own meetings, classes, or
just to gather the family together all at one time.
You'll find another complimentary event coming up:
http://www.principal.com/women
Incidentally, this past month, lots of clients have
been talking about the high cost of living here in
California. No doubt, you've also been wondering if
you could move somewhere less expensive, just what
kind of wonderful home you could buy with the proceeds
from the sale of the tiny place you have now. That
part's usually easy. What's hard is to find work that
pays well in areas where housing costs are low.
So, I just took a quick look at the job openings
at our CareerBank - and found over 7,000 jobs through
Robert Half Internationl. And they're everywhere.
http://taxmama.careerbank.com/company_jobs.cfm?company_id=7117
They usually have the jobs with the best companies.
They got me the first two accounting jobs I ever held.
And the temp jobs they sent me out on via their
Accountemps division were often how I supported myself
in college.
Want to know a secret? Doing temp work is the best
way to research a company and find out what's really
going on inside. And it is THE best way to get hired
by great companies without ever going through the
humiliation of an interview. After all, you're already
there, doing the work, meeting the key decision-makers.
I used to keep a notebook with information about each
company I worked at, what kind of equipment and programs
they used, and the names and contact information of the
managers and supervisors - in case I wanted to get a job
there someday. Incidentally, each and every company
offered me a full-time position - which I didn't take
because at the time, I loved the variety of being at a
new place every couple of weeks. Temp work is a great
way to get experience and never get bored.
I know many of you want to prepare your own tax returns.
So I've included the links below. But, before you do that,
you may want to read Andrea Coombes'article "Mistakes that
could cost you Surveys find common tax questions stump
taxpayers" http://snipurl.com/dias
Andrea provides further evidence the tax code is too
complex for mere mortals: More than two-thirds of
taxpayers answered basic tax questions wrong or said
they were unsure of the right answer.
Whether you prepare your own tax returns or have
someone else do them - you'll quickly realize that we
haven't come far from the caveman days. We're still a
society of hunters and gatherers. These days, it's not
for food, but for records.
Well, my mere mortals...it's time to shine!
Best wishes,
Eva Rosenberg, EA
Your TaxMama is watching...out for you.
P.S. THE BOOK is out - if you're in business, you need it!
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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In 2003, Americans OVERPAID their taxes by more than $500 MILLION!
Did
you?
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/
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Media Tour and Classes
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Reserve the date! March 23, 2005 at 1:00 p.m. Eastern Time
Tax Issues Affecting Internet Businesses with Eva Rosenberg
You're invited to a live online class - as my guest
To register, please click here and "Take the Free Test Drive"
http://taxclass.ipowerworld.com/
Once you have registered, please sign up for the class
http://www.ipwseminars.com/week.php?cid=2&catid=2&wd=5&m=3&w=4&y=2005&s =
And please download the complimentary Multimedia
Conferencing Software
[If you need help signing up, please contact Donna Woodbury.
You can reach her at donna.woodbury@gmail.com or 707.884.4696 ]
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Read articles and columns at www.WomensWallStreet.com
where you can even join in the discussion about the questions.
[Coming soon: Columns on www.WomensRadio.com ]
[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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Quick Links to Online Filing
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For those of you doing your own tax returns online,
most of the online services will increase their
prices at the end of this month. Prepare them now!
Here are some reputable services:
Turbo Tax
http://www.turbotax.intuit.com/welcome/affiliatecobrand04/live.htm?source=giftec
TaxBrain.com use code TXM334 for discount
http://www.taxbrain.com
Tax Cut
http://www.amazon.com/exec/obidos/tg/browse/-/516462/102-7037880-2825750
Tax Act
http://www.taxact.com/offers/taxact_both.asp?sc=0370145
Complete Tax
http://www.completetax.com/CTindex.asp?welcome=ZB1306350&AID=7097206&PID=241922
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How To Be Net Savvy - and Save Money
http://www.taxmama.com/AskTaxMama/298/article1.html
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The Most Overlooked Resource By Small Businesses Today
http://www.taxmama.com/AskTaxMama/297/article1.html
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LLC Members Compensation
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From:Tarpon Springs, Florida
Dear TaxMama,
Do member(s) of an LLC electing to be taxed as
a Corporation (in Brooklyn, NY) pay themselves
a salary or do they just draw money?
Minu
<TaxPro Replies>
Hi Minu
If you're choosing to behave as a corporation,
you must be consistent - all the way.
Yes, you're right. You need to establish payrolls
for the working members.
The payroll amount doesn't need to be the same for
all the members. Establish payrolls that relate to
work or business contribution of each member - not
their investment ratio. You'll get some ideas from
this response on Google Answers:
http://answers.google.com/answers/threadview?id=469246
You'll also get some solid information on how to handle
this and other issues that will be coming up for your
business in my new book, Small Business Taxes Made Easy
http://www.taxmama.com/AskTaxMama/book/
Pay particular attention to the first chapter, the Start-Up
Checklist - even if your business is already established.
You're going to get information that will push your business
to a higher level of success.
You'll also get some excellent guidance from Jan Zobel's
updated book Minding Her Own Business: The Self-Employed
Woman’s Essential Guide to Taxes and Financial Records
http://www.amazon.com/exec/obidos/tg/detail/-/1572484551/mywishlistA
I hope this helps.
Best wishes
Eva Rosenberg
Remember to tell your client to read
Small Business Taxes Made Easy
http://www.taxmama.com/AskTaxMama/book/
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Gambled and Won
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From: Montague, CA
Dear TaxMama,
I won over $10,000.00 last year gambling.
Now they say I need to pay estimated taxes
quarterly of $443.00. I'm not likely to win
like this again, do I have to pay these?
Marty
<TaxMama Replies>
Gee Marty,
You're a big winner. Don't you think your
luck will hold? No really? OK, then, no, you
don't need to make those estimated payments.
All you need to do to avoid an underpayment
penalty next year, is make sure that you don't
have a balance due.
Incidentally, didn't you have a lot of losses to
deduct from those winnings? Your lottery tickets
and other funds used for gambling are deductible
on Schedule A - if you itemize.
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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Procrastinator
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From: Harlingen, TX
Dear TaxMama,
I'm a procrastinator. I've just sent my first
return out and am not even sure I did it right.
First of all it's a whole year late (2003 return)
and all I sent was the 1040 EZ form.
The refund is only $69, but now I feel uneasy
about sending my 2004 return. What should I do??
Thanks, Kat
<TaxMama Replies>
Hi Kat,
Well, that one's gone for now.
Hey, girl, at least you got it done.
That's a start.
If you're really concerned about it being wrong,
go see a tax professional.
Do you realize that there's a good chance you
qualify for help from the VITA program?
That's a free program IRS set up where volunteers
prepare your tax return.
Go see the good folks at your local VITA center.
http://www.taxmama.com/AskTaxMama/298/irsnews.html
You'll need to bring along last year's tax return
so they have a starting point anyway.
They can look it over and tell you right away if you
should have filed your return on a different form.
Or if you left anything off.
Don't worry, you'll be fine.
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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Sales Tax on Car
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From: Harrisburg PA
Dear TaxMama,
Is the tax paid on my new car deductible?
Chad
<TaxMama Replies>
Hi Chad,
I don't know? I know nothing about you or the
structure of your tax return.
Are you itemizing your deductions?
If you are, you can test to see if your state income
taxes paid are lower than the sales tax on your car,
plus your standard sales tax in IRS Publication 600.
http://taxmama.com/AskTaxMama/290/irsnews.html
If your sales taxes are higher this year, check the box
on Schedule A next to state taxes, for sales tax -
and then, YES, the taxes on your car purchase will
be deductible.
TAXMAMA ALERT: Incidentally, if the amounts are
close, but the sales tax is a little bit lower,
you may still want to choose the sales tax.
Why? Because if you're getting a state income tax
refund, that refund will be taxable on your IRS return,
IF you deducted your state income taxes.
It won't be if you deducted sales taxes. Isn't that a kick?
Now, if you bought a Hummer....odds are pretty good
that you'll be able to take that deduction.
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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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!
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Helping Seniors keep their pets
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Today, many of these people outlive their parents. And therein
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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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ZEN JUDAISM
* There is no self.
( So.....If there is no self,
(then whose arthritis is this?)
* Wherever you go, there you are.
(Your luggage is another story.)
* Accept misfortune as a blessing.
Do not wish for perfect health or a
life without problems.
(What then should you talk about?)
* The journey of a thousand miles
begins with a single "Oy."
* Zen is not easy.
It takes effort to attain nothingness.
(And then what do you have?
Bupkes.)
* The Tao does not speak.
The Tao does not blame.
The Tao does not take sides.
The Tao has no expectations.
The Tao demands nothing of others.
(The Tao is not Jewish.)
* Breathe in. Breathe out.
Breathe in. Breathe out.
(Forget to do this and attaining Enlightenment
will be the least of your problems.)
* Let your mind be as a floating cloud.
Let your stillness be as the wooded glen.
(And sit up straight. You'll never meet the
Buddha with such rounded shoulders.)
* Be patient and achieve all things.
(Be impatient and achieve them quicker.)
From Dorin Lucas is far-off Muslim Turkey
* To Find the Buddha, look within.
Deep inside you are ten thousand flowers.
Each flower blossoms ten thousand times.
Each blossom has ten thousand petals.
(You might want to see a specialist.
My son is a doctor. He can help maybe.)
* To practice Zen and the art of Jewish
motorcycle maintenance, do the following:
Get rid of the motorcycle.
( What were you thinking?)
* The Torah says,"Love thy neighbor as thy self."
The Buddha says there is no "self."
So, maybe you are off the hook.
* The Buddha taught that one should practice loving
kindness to all sentient beings. (Still, should it kill you
to find a nice sentient being who happens to be Jewish?)
* Though only your skin, sinews, and bones remain,
though your blood and flesh dry up and wither away,
yet shall you meditate until you have attained full
Enlightenment. (But, first, a little nosh.)
----
Contributed by Jim Banks of FasTax - EA Exam Review
http://www.fastax-ea-exam.com/
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IRS and Tax NEWS
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Courtesy of IRS March 15, 2005
Excerpts from the Remarks of IRS Commissioner
Mark W. Everson at National Press Club
...let me turn to enforcement of the tax laws.
Average Americans pay their taxes honestly and
accurately, and have every right to be confident
that when they do so, their neighbors and
competitors are doing the same. Let me provide
an overview of the steps we have taken over
the past year to bolster this confidence,
turning briefly to each of our four service-wide
enforcement priorities.
Our first enforcement priority is to discourage
and deter non-compliance, with emphasis on
corrosive activity by corporations, high-income
individuals and other contributors to the tax gap.
• In 2004, audits of high income taxpayers jumped
40 percent from the year before. We audited almost
200,000 high-income individuals last year – double
the number from 2000.
• Overall, audits for individuals exceeded the one
million mark last year, up from 618,000 four years
earlier.
• In 2004, audits of the largest businesses – those
with assets of $10 million or more – finally turned
back up after years of decline.
The centerpiece of our enforcement strategy is
combating abusive tax shelters, both for corporations
and high-income individuals. I will touch upon two
important initiatives of the past twelve months.
We have started a program of settlement offers for
those who entered into abusive transactions in the
past but would like to get their problems behind them.
Last May, we made a settlement offer regarding the
Son of Boss tax shelter, a particularly abusive
transaction used by wealthy individuals to eliminate
taxes on large gains, often in the tens of millions
of dollars. In this program for the first time the
IRS required a total concession by the taxpayer of
artificial losses claimed. Son of Boss is also the
first settlement initiative mandating penalties as
a settlement condition. I am pleased with the
response to the offer. Next week we expect to make
public our Son of Boss results.
Last month we announced a second important settlement
initiative – this one involving executive stock options.
This abusive tax transaction involved the transfer of
stock options or restricted stock to family controlled
entities. These deals were done for the personal benefit
of executives, sometimes at the expense of public
shareholders. This shelter was not just a matter of tax
avoidance but in some instances raises basic questions
about corporate governance. Again, the settlement
offer is a tough one: full payment of the taxes
plus a penalty.
A noteworthy point about the stock option settlement
offer is that our actions in this matter were closely
coordinated with the Securities and Exchange Commission
and the oversight board that regulates public accounting
firms.
[To read the entire speech, please click here:
http://www.irs.gov/newsroom/article/0,,id=136835,00.html ]
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E-Books and Workshops - all Yours - No Charge
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Principal Financial Group'® Third Annual
2005 Women in Business telelclass series:
It’s Your Business: Managing Growth and Opportunity in 2005
Tuesday, March 29, at noon (CST)
Sign up - no charge - http://www.principal.com/women
---
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/
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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
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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 - 2004
TaxAnxiety Inc. P.O. Box 280549, Northridge, CA 91328
Written (e-mail) permission is required to copy or redistribute this
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