-----------------------------------------------------------------
*** Ask TaxMama Volume 7, Issue #324 September 2, 2005 ***
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
-----------------------------------------------------------------
http://taxmama.com/taxcalendar.html


09.15.2005       Corporate Tax Returns Due
09.21.2005 - 09.22.2005 EA Exam
10.17.2005       Personal Tax Returns Due
-----------------------------------------------------------------

-----------------------------------------------------------------
JOB OF THE WEEK visit the NEW   http://taxmama.careerbank.com
-----------------------------------------------------------------
Do you care about children? Join Children's Aid Society, with a
budget of $77 million as an Internal Auditor. Keep them on track.
http://taxmama.careerbank.com/job.cfm/197232.htm

Take the new 2005 Salary Survey
http://www.careerbank.com/resource/ssurvey/salary_survey.cfm

-----------------------------------------------------------------

Dear Family,

This past week has been devastating. I don't think
the United States have ever lost a major city before,
the way we've lost New Orleans. [Katrina's all Wet, below]

Yet, remarkably, I just heard from some friends in the
area who tell me their New Orleans home is essentially
intact - and of course, that they're OK. Whew!

Last week, I mentioned my friend going into the VA
Hospital, who'd forgotten he was entitled to care there.
Well, thank goodness he went. The amazing doctors took
out a brain tumor on Monday, and by Thursday, he was
able to go home, feeling bright, chipper and alert.
The proof that he was healed? He didn't forget even one
of his repertoire of bad jokes.

(OK, OK, so, there's a little cancer there...but the
tumor and the pain are gone. The cancer will go too.)

And speaking of people who read Ask TaxMama, you are
an astonishing, involved, caring population.

This week, I meet a reader working in our military
service. We've started tossing around ways to make
life easier (taxwise) for folks deployed and far from
home. We have some ideas and hope to get IRS to help.
Who knows what good might result from something that
started out as a casual 'hello'?

What I love about all of you is, you're all so
willing to find solutions. All it takes is for
someone to point out the problem. Thank you.

We have a holiday weekend coming up. While you're
goofing off around the pool and at parties, think
of us here, working frantically to meet the corporate
filing deadline. Nah, forget us.

Oh, and for you sports fanatics - drop by ScoreConnex.com
http://www.scoreconnex.com/NewIndex.aspx
and sign up to get the scores of all your favorite
weekend games as soon as they end. Do your wife
a favor - get the scores on your cell-phones instead
of putzing around with the remote every 5 seconds.

Go. Have fun!

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. NEW! POSTAGE STAMPS - THE ORIGINAL 1913 TAX RETURN
http://www.cafepress.com/taxmama.28979465

Or create your own custom postage - join CafePress
http://www.cafepress.com/cp/info/storeref.aspx?refby=taxmama


**************************************************
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!

                 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/

----==========**********O**********==========-----
--------------------------------------------------------
Media Tour and Classes
--------------------------------------------------------

Join me in San Diego!

For Tax Professionals -  Meet TaxMama
When: Tuesday, September 13. 2005
        10:30 a.m. - 2:00 p.m.
Where: The Handlery Resort, San Diego, CA
Who: CSEA Chapter Meeting
What: Special Issues Affecting Clients With
        Any Online Presence
How: To RSVP, call 800-642-1040. Leave a message.
CPE: 2 CPE credits

--------------------------------------------------------

Next Webinar - Note the New Date!

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
http://taxmama.com/workshops/

--------------------------------------------------------

TaxMama's IRS Exam FINAL Review Class
NOT ACCEPTING ANY MORE STUDENTS

-------==========**********O**********==========-------
                 USE THESE QUICKIE RESOURCES!
----------------------------------------------------------------
        101 WAYS TO BE YOUR BEST  
http://www.1automationwiz.com/app/?Clk=1091429
------------------------------------------------------------ ----
----------------------------------------------------------------
Small Business Taxes Made Easy
----------------------------------------------------------------
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?

----------------------------------------------------------------
This Week's Tax Quips
----------------------------------------------------------------

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 - Owning Rental Property
http://www.asktaxmama.com/podcast/index.php?id=45

TUESDAY - Are 401(k)s Safe?
http://www.asktaxmama.com/podcast/index.php?id=46

WEDNESDAY -  Not Flex-Time � Flex-Space
http://www.asktaxmama.com /podcast/index.php?id=47

THURSDAY - S-Corp Silliness
http://www.asktaxmama.com/podcast/index.php?id=48

FRIDAY - Whose Child is This?
http://www.asktaxmama.com/podcast/index.php?id=49

----------------------------------------------------------------
Katrina's all Wet
----------------------------------------------------------------

This past week has been devastating. I don't think
the United States have ever lost a major city before,
the way we've lost New Orleans.

Although the Dutch scoff at us for being so unprepared,
I doubt they've faced a natural storm of the magnitude
of Hurricane Katrina.  (The Netherlands, also lying
below sea level, has had a major sea wall since 1953.)

The world reactions to our tragedy are interesting.
Australia is pledging millions of dollars in aid, while
the United Nations says the U.S. is most able to handle
her own tragedies...but perhaps she could use some help...
if anyone is willing...

The United States is the first country to step up and
provide help anywhere in the world where disaster strikes.
It astonishes me that when we are devastated, when we
need help, many of those we've helped just step back
and either wait until they're asked...or just watch.
And you know, next time they're in trouble...we'll
still be the first to help them.

Then, of course, you have a country that's just faced
its own complete disaster in the form of a tsunami,
like Sri Lanka and has nothing - who pledges $25,000.

http://edition.cnn.com/2005/WEATHER/09/02/katrina.world/

On the other hand, here in the U.S., many states and
many people are going all out to provide money, aid,
and supplies to the victims. Corporations, sports
teams, celebrities, and folks like you.
http://go.asktaxmama.com/katrinanews

Doesn't it just make you proud to be an American?

And there's the looting.

You're going to see some debate out there over
when and if looting is ever justified.

When you're scrounging food and supplies for your
survival and that of your family - and taking
things that will be destroyed, damaged or lost due
to the destruction anyway, it makes perfect sense.
(Of course, fool that I am, I would make a mental
note of what stores I 'looted'. Then I'd send them
payment as soon as I could. Of course, if I did that,
I'd probably get prosecuted for theft.)

On the other hand, what IS this nonsense about
people filling up trucks with TVs, stereos, and
other expensive electronics - not to save them for
the shops - but to sell them and keep the money?

And being such crazed shoppers and looters than
you trample people or leave them on the floor,
hurting and harmed? There's no excuse for that
kind of behavior.

It's times like these when you learn about your
own character.

And today's Money Funny, below, says it all.

----------------------------------------------------------------
TaxMama Alert - Financial Representative Required
----------------------------------------------------------------

Your e-mail might include this very generous
offer from a company in Hong Kong or elsewhere.

Mine was worded just like this, except for the
company name. Even the fax number was the same.
http://www.mail-archive.com/sastera@yahoogroups.com/msg00217.html

Under no circumstances should you pursue this opportunity.

They are seeking dupes who are willing to let
their U.S. bank accounts be used to run money
through it for their U.S. 'sales'.

BEWARE. While the might be offering you a generous
commissions on sales you do nothing to generate,
you're the one who will be held responsible for the
full amount of each purchase that is never delivered
to the customer.

Please don't get snookered.


----------------------------------------------------------------

ClubMom celebrates and rewards Moms
http://www.clubmomlinks.com/t.asp?id=1479
        and Dads are welcome, too.

Moms get lots of money-saving coupons, discounts
and rewards from ClubMom. You'll make friends with
women in your shoes, and pick up tips, ideas and
recipes to make your life easier.

ClubMom has two special promotions to entice you to join:
a free subscription to Redbook Magazine and a $3,000
prize in their new Dress Your Best Sweepstakes.
http://www.clubmomlinks.com/t.asp?id=1479

It costs nothing to join ClubMom and there's
no charge to enter their sweepstakes.
http://www.clubmomlinks.com/t.asp?id=1479


----------------------------------------------------------------
Innocence Sucks
----------------------------------------------------------------

Recently we had this question from Ticked in Texas
http://taxmama.com/AskTaxMama/322/article2.html


Bill Coen suggested a solution for her:

Isn't it possible to file the forms for injured spouse even
if the tax return has been filed? It seems to me like this
could be a possibility for this lady.

<TaxMama Replies>


Hi Bill

Yes, she can.

She can file the Request for Innocent Spouse
Relief on Form 8857.
http://www.irs.gov/pub/irs-pdf/f8857.pdf

But she's not apt to get any money back.

IRS has already issued the refund.

They have already paid the third party
(which, in this case, is the agency
collecting her own back child support).

I don't know if there is a structure in place
to return that money to IRS so IRS can issue
another refund.

AND when and if IRS does issue the refund,
they will issue in the name of BOTH the woman
and her ex-husband again, since they filed a
joint return.

Oh fun!

But keep thinking. It's  healthy!

Best wishes,

Eva Rosenberg, MBA, EA

http://www.TaxMama.com


----------------------------------------------------------------
Firing Accountant
----------------------------------------------------------------

From: Tennessee

Dear Tax Mama,
 
First off, I love to read your informative column, mostly
for the advice for people in financial difficulties, as
I am often asked the same kind of questions, and I just
successfully advised an employee to *ask* the IRS how a
levy came about, and sure enough, it was an error.
The levy is lifted!  It just seemed like what you would say.
 
My question is totally different. I work for a small
business owner when she has overflow work.  She has had
the same accounting firm for four years, and three
different accountants.  She always fusses that they are
months behind on her books and she never knows if she's
about to bounce a check.  So, I've shown her how to
operate her accounting program, posted her checks,
straightened out her account numbers, etc.  She now has
some peace of mind, and has decided to make me her
in-house bookkeeper  Great!

So the question is, when does she give them notice?
We are wavering between a month and whenever they get
the books up to date.
 
And the second question is, why do accounting firms
run two and three quarters behind?
 
Jamie

<TaxMama Replies>


Hi Jamie,

Frankly, if you're ready to take over - and the
accounting firm is behind - I'd give them a month
notice - telling them they've already been paid
in advance for work they haven't yet completed.
So, please apply the last payment towards the
work yet to be done.

And Jamie, if it were me,  I would start doing the
work immediately. There's no reason to wait until
the accounting firm catches up. Why should your
client have  to wait, when you can bring them up
to date immediately.

Even if your client has to pay them for an extra
month, it's probably still cheaper than to keep
the firm. Right now, they're not getting useful
information - or timely information. With you there,
doing it in-house, they'll know where they stand
right away. AND you'll be there to help guide them
into more sensible or profitable paths. In fact, once
you start looking at their books, you'll probably see
other ways they can cut costs or increase their profits.


And why does it take so long?

Well, essentially, two reasons.

1) All work has to be reviewed by at least
one, sometimes two people, depending on
the size of the company.

2) They don't just do routine, monthly clients.
They do other things requiring immediate deadlines
that interfere with their regular, monthly bookkeeping.

3) Poor time management - and poor management,
in general.

Oh, that was three reasons.

As to my practice, and why am I behind?

Because it's time for me to move past a tax
practice to the writing and other things that
I have put off doing for the last 25 years.

I've been telling my clients for four years
that it's time for them to see other tax professionals
(to whom I have referred them) and they just keep
coming back AND sending their friends.

I suppose that's a good thing.

After all, they're all folks I rather love.

But it is time to move on. And we will soon be
contacting most of our clients to help them
make other arrangements. Frankly, I think they
can get better service and attention from someone
who's dedicated to a full-time tax practice.

As for you - you're being a big help. So, yes,
it's time for your boss to have in-house help.

Have fun!


Best wishes,

Eva Rosenberg, MBA, EA
http://www.TaxMama.com

Author of the new book from McGraw-Hill,
Small Business Taxes Made Easy 
http://www.taxmama.com/AskTaxMama/book/


------------------------------------------------------------ ----
Because We Care
----------------------------------------------------------------

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

==========

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
-----------------------------------------------------------------


A carrot, an egg and a cup of coffee...

(You will never look at a cup of coffee the same way again.)

A young woman went to her mother and told her about her
life and how things were so hard for her. She did not
know how she was going to make it and wanted to give up. 
She was tired of fighting and struggling. It seemed as one
problem was solved, a new one arose.
 
Her mother took her to the kitchen. She filled three pots
with water and placed each on a high fire to boil. In the
first she placed carrots, in the second she placed eggs,
and in the last she placed ground coffee beans. She let
them sit and boil, without saying a word.
 
In about twenty minutes she turned off the burners. She
fished the carrots out and placed them in a bowl. She
pulled the eggs out and placed them in a bowl. Then she
ladled the coffee out and placed it in a bowl.
 
Turning to her daughter, she asked, "Tell me, what do you see?"
 
"Carrots, eggs, and coffee," she replied.
 
Her mother brought her closer and asked her to feel the
carrots. She did and noted that they were soft. The mother
then asked the daughter to take an egg and break it. After
pulling off the shell, she observed the hard-boiled egg.
Finally, the mother asked the daughter to sip the coffee.


The daughter smiled, as she breathed in its rich aroma and
tased the strong flavor. The daughter then asked,
"What does it mean, mother?"
 
Her mother explained that each of these objects had faced
the same adversity ... boiling water. Each reacted differently.

The carrot went in strong, hard, and unrelenting. However,
after being subjected to the boiling water, it softened
and became weak.

The egg had been fragile. Its thin outer shell had protected
the liquid interior, but after sitting through the boiling water,
its inside became hardened.

The ground  coffee beans were unique, however. After they were
in the boiling water, they had changed the water.
 
"Which are you?" she asked her daughter. "When adversity knocks
on your door, how do you respond? Are you a carrot, an egg or
a coffee bean?"
 
Think of this: Which am I? Am I the carrot that seems strong,
but with pain and adversity do I wilt and become soft and lose
my strength?
 
Am I the egg that starts with a malleable heart, but changes
with the heat? Did I have a fluid spirit, but after a death,
a breakup, a financial hardship or some other trial, have I
become hardened and stiff? Does my shell look the same, but
on the inside am I bitter and tough with a stiff spirit and
hardened heart?
 
Or am I like the coffee bean? The bean actually changes the
hot water, the very circumstance that brings the pain. When
the water gets hot, it releases the fragrance and flavor.

If you are like the bean, when  things are at their worst,
you get better and change the situation around you.

When the hour is the darkest and trials are their greatest,
do you elevate yourself to another level?
 
How do you handle adversity? Are you a carrot, an egg or a
coffee bean?

The happiest of people don't necessarily have the best of
everything; they just make the most of everything that
comes along their way.

------

Contributed by Uneida Langewis, who brings sunshine and
laughter to her own adversity.

[Remember, we're always looking for SHORT, clean humor!]

------------------------------------------------------------ -----
IRS and Tax NEWS
-----------------------------------------------------------------

Courtesy of IRS

IRS Grants Tax Relief for Hurricane Katrina Victims

IR-2005-84, Aug. 30, 2005

WASHINGTON � The Internal Revenue Service today announced
special relief for taxpayers in the Presidential Disaster
Areas struck by Hurricane Katrina.

These taxpayers generally will have until Oct. 31, 2005,
to file tax returns and submit tax payments. The IRS will
abate interest and any late filing or late payment penalties
that would otherwise apply. This relief includes the Sept.
15 due date for estimated taxes and for calendar-year
corporate returns with automatic extensions.

�People affected by Hurricane Katrina have more than
enough concerns �� taxes shouldn�t be among them,� said
IRS Commissioner Mark W. Everson. �We hope the relief
we are providing will help taxpayers in their financial
recovery from this devastating storm.�

For details about the affected areas:
http://www.irs.gov/newsroom/article/0,,id=147055,00.html

----------------

September 1, 2005

IRS Urges Citizens to Seek Qualified Charities for Katrina Help
 
WASHINGTON � Citizens seeking to make donations to help
Hurricane Katrina victims should seek out qualified
charities, the Internal Revenue Service said today.

People who have a specific charity in mind can make sure
that it is a qualified charity by searching an IRS-approved
list available on the IRS Web site. IRS.gov has an on-line
search feature that allows people to find qualified charities.
http://apps.irs.gov/app/pub78

Some organizations, such as churches and governments, may
be qualified even though they are not listed.

---

FEMA, the Federal Emergency Management Administration,
provides a list of charities with whom they work
http://www.fema.gov/news/newsrelease.fema?id=18473

First.Gov has a lot of help for you and your loved ones
in both English and Spanish
http://go.asktaxmama.com/KatrinaRecovery


---------------------------------------------------
CAREER CENTER   http://taxmama.careerbank.com/
---------------------------------------------------
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/

---------------------------------------------------------------
E-Books  and Workshops - all Yours - No Charge
-----------------------------------------------------------------

New from MERLE!

"How to Use Articles to Drive Website Traffic"

It's 21 pages of information and resources anyone
can use to promote and market with articles. You
can download a copy at
http://articleannouncer.mcpromotions.com/


We'll post your announcements -
just tell us about your no-cost event.
-------------------------------------
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 - 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!
-----------------------------------------------------------------