From the Lafayette Journal & Courier:
The two police officers Lafayette planned to hire in 2013? Forget about it.
http://www.jconline.com/apps/pbcs.dll/article?AID=2012310110028&nclick_check=1
13 Ekim 2012 Cumartesi
Increased Health Costs Prevent Hiring in Lafayette in 2013
To contact us Click HERE
From the Lafayette Journal & Courier:
The two police officers Lafayette planned to hire in 2013? Forget about it.
http://www.jconline.com/apps/pbcs.dll/article?AID=2012310110028&nclick_check=1
From the Lafayette Journal & Courier:
The two police officers Lafayette planned to hire in 2013? Forget about it.
http://www.jconline.com/apps/pbcs.dll/article?AID=2012310110028&nclick_check=1
City Council Members Forego 2013 Raises in Terre Haute
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From the Terre Haute Tribune-Star:
As a vote on Terre Haute’s 2013 budget nears later this month, more questions are being raised about the city’s financial health.
Members of the public and city officials discussed next year’s budget at a public hearing Thursday night in City Hall at a special meeting of the City Council. In recent years, such hearings have been uneventful, but this time some members of the public raised questions and concerns.
…
Also Thursday night, especially in view of the general fund shortfall, the nine-person City Council, which passes the city’s budget, voted unanimously to deny itself a 2 percent pay increases in 2013. All other city employees, including the mayor and other elected officials, will receive a 2 percent raise next year.
Members of the council receive a salary of $14,166 not including benefits. Their vote saved the city – in total – just less than $3,000.
Increasing city employee salaries by 2 percent next year will add about $568,000 in new expenses in 2013, said Leslie Ellis, city controller. That’s less than the $1 million previously estimated.
See the full story here:
http://tribstar.com/local/x1400164681/Public-raises-questions-concerns-on-2013-Terre-Haute-budget
As a vote on Terre Haute’s 2013 budget nears later this month, more questions are being raised about the city’s financial health.
Members of the public and city officials discussed next year’s budget at a public hearing Thursday night in City Hall at a special meeting of the City Council. In recent years, such hearings have been uneventful, but this time some members of the public raised questions and concerns.
…
Also Thursday night, especially in view of the general fund shortfall, the nine-person City Council, which passes the city’s budget, voted unanimously to deny itself a 2 percent pay increases in 2013. All other city employees, including the mayor and other elected officials, will receive a 2 percent raise next year.
Members of the council receive a salary of $14,166 not including benefits. Their vote saved the city – in total – just less than $3,000.
Increasing city employee salaries by 2 percent next year will add about $568,000 in new expenses in 2013, said Leslie Ellis, city controller. That’s less than the $1 million previously estimated.
See the full story here:
http://tribstar.com/local/x1400164681/Public-raises-questions-concerns-on-2013-Terre-Haute-budget
Supporters Decry Cuts to Public Safety in Anderson
To contact us Click HERE
From the Anderson Herald-Bulletin:
Public safety was top-of-mind Thursday night as the Anderson City Council held a public hearing on the city’s proposed $63.2 million budget for fiscal 2013.
And the public isn’t happy about the prospect of cutting seven police officers from the Anderson Police Department, or 20 firefighters from the Anderson Fire Department. The proposed budget calls for 107 police and 104 firefighters.
…
Deputy Mayor Pete Heuer testified about the financial circumstances that led to the proposed cuts.
He said city leaders faced many difficult decisions because property tax revenue has plummeted $9 million since 2005. He also noted that the Madison County Council’s decision earlier this year to rescind the wheel tax caused the loss of $1.2 million in revenue.
“The administration has presented you with a budget that represents a balanced approach to providing the community with the necessary services that must be maintained within each department.” Heuer told the council.
He added that other city departments such as municipal and community development, and street and parks have also seen drastic cuts.
And the city is still faced with a $1.15 million budget shortfall. Funding public safety represents about 70 percent of the city’s budget, he said.
…
Before the council meeting, several dozen current and former police officers, firefighters, their supporters and family members took to the street outside city hall to call attention to the proposed staffing cuts.
The council is expected to adopt the budget at its 5 p.m. Oct. 23 meeting at the City Building.
See the full article here:
http://heraldbulletin.com/crime/x253519720/Critics-of-public-safety-cuts-testify-at-public-hearing
Public safety was top-of-mind Thursday night as the Anderson City Council held a public hearing on the city’s proposed $63.2 million budget for fiscal 2013.
And the public isn’t happy about the prospect of cutting seven police officers from the Anderson Police Department, or 20 firefighters from the Anderson Fire Department. The proposed budget calls for 107 police and 104 firefighters.
…
Deputy Mayor Pete Heuer testified about the financial circumstances that led to the proposed cuts.
He said city leaders faced many difficult decisions because property tax revenue has plummeted $9 million since 2005. He also noted that the Madison County Council’s decision earlier this year to rescind the wheel tax caused the loss of $1.2 million in revenue.
“The administration has presented you with a budget that represents a balanced approach to providing the community with the necessary services that must be maintained within each department.” Heuer told the council.
He added that other city departments such as municipal and community development, and street and parks have also seen drastic cuts.
And the city is still faced with a $1.15 million budget shortfall. Funding public safety represents about 70 percent of the city’s budget, he said.
…
Before the council meeting, several dozen current and former police officers, firefighters, their supporters and family members took to the street outside city hall to call attention to the proposed staffing cuts.
The council is expected to adopt the budget at its 5 p.m. Oct. 23 meeting at the City Building.
See the full article here:
http://heraldbulletin.com/crime/x253519720/Critics-of-public-safety-cuts-testify-at-public-hearing
Tips for Taxpayers Who Can't Pay Their Taxes on Time
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If you owe tax with your federal tax return, but can't afford to pay it all when you file, the IRS wants you to know your options and help you keep interest and penalties to a minimum.
Here are five tips:
1. File your return on time and pay as much as you can with the return. These steps will eliminate the late filing penalty, reduce the late payment penalty and cut down on interest charges. For electronic and credit card options for paying see www.IRS.gov. You may also mail a check payable to the United States Treasury.
2. Consider obtaining a loan or paying by credit card. The interest rate and fees charged by a bank or credit card company may be lower than interest and penalties imposed by the Internal Revenue Code.
3. Request an installment payment agreement. You do not need to wait for IRS to send you a bill before requesting a payment agreement. Options for requesting an agreement include:
• Using the Online Payment Agreement application and
• Completing and submitting IRS Form 9465-FS, Installment Agreement Request, with your return IRS charges a user fee to set up your payment agreement. See www.irs.gov or the installment agreement request form for fee amounts.
4. Request an extension of time to pay. For tax year 2011, qualifying individuals may request an extension of time to pay and have the late payment penalty waived as part of the IRS Fresh Start Initiative. To see if you qualify visit www.irs.gov and get form 1127-A, Application for Extension of Time for Payment. But hurry, your application must be filed by April 17, 2012.
5. If you receive a bill from the IRS, please contact us immediately to discuss these and other payment options. Ignoring the bill will only compound your problem and could lead to IRS collection action.
If you can’t pay in full and on time, the key to minimizing your penalty and interest charges is to pay as much as possible by the tax deadline and the balance as soon as you can. For more information on the IRS collection process go to or see IRSVideos.gov/OweTaxes.
Here are five tips:
1. File your return on time and pay as much as you can with the return. These steps will eliminate the late filing penalty, reduce the late payment penalty and cut down on interest charges. For electronic and credit card options for paying see www.IRS.gov. You may also mail a check payable to the United States Treasury.
2. Consider obtaining a loan or paying by credit card. The interest rate and fees charged by a bank or credit card company may be lower than interest and penalties imposed by the Internal Revenue Code.
3. Request an installment payment agreement. You do not need to wait for IRS to send you a bill before requesting a payment agreement. Options for requesting an agreement include:
• Using the Online Payment Agreement application and
• Completing and submitting IRS Form 9465-FS, Installment Agreement Request, with your return IRS charges a user fee to set up your payment agreement. See www.irs.gov or the installment agreement request form for fee amounts.
4. Request an extension of time to pay. For tax year 2011, qualifying individuals may request an extension of time to pay and have the late payment penalty waived as part of the IRS Fresh Start Initiative. To see if you qualify visit www.irs.gov and get form 1127-A, Application for Extension of Time for Payment. But hurry, your application must be filed by April 17, 2012.
5. If you receive a bill from the IRS, please contact us immediately to discuss these and other payment options. Ignoring the bill will only compound your problem and could lead to IRS collection action.
If you can’t pay in full and on time, the key to minimizing your penalty and interest charges is to pay as much as possible by the tax deadline and the balance as soon as you can. For more information on the IRS collection process go to or see IRSVideos.gov/OweTaxes.
Start Planning Now for Next Year's Tax Return
To contact us Click HERE
The tax deadline may have just passed but planning for next year can startnow. The IRS reminds taxpayers that being organized and planning ahead can savetime, money and headaches in 2013. Here are eight things you can do now to makenext April 15 easier.
1. Adjust your withholding Why wait another year for a bigrefund? Now is a good time to review your withholding and make adjustments fornext year, especially if you'd prefer more money in each paycheck this year. Ifyou owed at tax time, perhaps you'd like next year's tax payment to be smaller.Use IRS's Withholding Calculator at www.irs.govor Publication 919, How Do I Adjust My Tax Withholding?
2. Store your return in a safe place Put your 2011 taxreturn and supporting documents somewhere secure so you'll know exactly whereto find them if you receive an IRS notice and need to refer to your return. Ifit is easy to find, you can also use it as a helpful guide for next year's return.
3. Organize your recordkeeping Establish a central locationwhere everyone in your household can put tax-related records all year long.Anything from a shoebox to a file cabinet works. Just be consistent to avoid ascramble for misplaced mileage logs or charity receipts come tax time.
4. Review your paycheck Make sure your employer is properlywithholding and reporting retirement account contributions, health insurancepayments, charitable payroll deductions and other items. These payrolladjustments can make a big difference on your bottom line. Fixing an error inyour paycheck now gets you back on track before it becomes a huge hassle.
5. Shop for a tax professional early If you use a taxprofessional to help you strategize, plan and make financial decisionsthroughout the year, then search now. You'll have more time when you're not upagainst a deadline or anxious for your refund. Choose a tax professionalwisely. You are ultimately responsible for the accuracy of your own returnregardless of who prepares it. Find tips for choosing a preparer at www.irs.gov.
6. Prepare to itemize deductions If your expenses typicallyfall just below the amount to make itemizing advantageous, a bit of planning tobundle deductions into 2012 may pay off. An early or extra mortgage payment,pre-deadline property tax payments, planned donations or strategically paidmedical bills could equal some tax savings. See the Schedule A instructions forexpenses you can deduct if you're itemizing and then prepare an approach thatworks best for you.
7. Strategize tuition payments The American Opportunity TaxCredit, which offsets higher education expenses, is set to expire after 2012.It may be beneficial to pay 2013 tuition in 2012 to take full advantage of thistax credit, up to $2,500, before it expires. For more information, see IRSPublication 970, Tax Benefits for Education.
8. Keep up with changes Find out about tax law changes,helpful tips and IRS announcements all year by subscribing to IRS Tax Tipsthrough www.irs.govor IRS2Go, the mobile app from the IRS. The IRS issues tips regularly duringsummer and tax season. Special Edition tips are sent periodically with othertimely updates.
The IRS emphasizes that each household's financial circumstances aredifferent so it's important to fully consider your specific situation and goalsbefore making large financial decisions.
Please contact us if you have any questions. 801-269-1818
Links:
The tax deadline may have just passed but planning for next year can startnow. The IRS reminds taxpayers that being organized and planning ahead can savetime, money and headaches in 2013. Here are eight things you can do now to makenext April 15 easier.
1. Adjust your withholding Why wait another year for a bigrefund? Now is a good time to review your withholding and make adjustments fornext year, especially if you'd prefer more money in each paycheck this year. Ifyou owed at tax time, perhaps you'd like next year's tax payment to be smaller.Use IRS's Withholding Calculator at www.irs.govor Publication 919, How Do I Adjust My Tax Withholding?
2. Store your return in a safe place Put your 2011 taxreturn and supporting documents somewhere secure so you'll know exactly whereto find them if you receive an IRS notice and need to refer to your return. Ifit is easy to find, you can also use it as a helpful guide for next year's return.
3. Organize your recordkeeping Establish a central locationwhere everyone in your household can put tax-related records all year long.Anything from a shoebox to a file cabinet works. Just be consistent to avoid ascramble for misplaced mileage logs or charity receipts come tax time.
4. Review your paycheck Make sure your employer is properlywithholding and reporting retirement account contributions, health insurancepayments, charitable payroll deductions and other items. These payrolladjustments can make a big difference on your bottom line. Fixing an error inyour paycheck now gets you back on track before it becomes a huge hassle.
5. Shop for a tax professional early If you use a taxprofessional to help you strategize, plan and make financial decisionsthroughout the year, then search now. You'll have more time when you're not upagainst a deadline or anxious for your refund. Choose a tax professionalwisely. You are ultimately responsible for the accuracy of your own returnregardless of who prepares it. Find tips for choosing a preparer at www.irs.gov.
6. Prepare to itemize deductions If your expenses typicallyfall just below the amount to make itemizing advantageous, a bit of planning tobundle deductions into 2012 may pay off. An early or extra mortgage payment,pre-deadline property tax payments, planned donations or strategically paidmedical bills could equal some tax savings. See the Schedule A instructions forexpenses you can deduct if you're itemizing and then prepare an approach thatworks best for you.
7. Strategize tuition payments The American Opportunity TaxCredit, which offsets higher education expenses, is set to expire after 2012.It may be beneficial to pay 2013 tuition in 2012 to take full advantage of thistax credit, up to $2,500, before it expires. For more information, see IRSPublication 970, Tax Benefits for Education.
8. Keep up with changes Find out about tax law changes,helpful tips and IRS announcements all year by subscribing to IRS Tax Tipsthrough www.irs.govor IRS2Go, the mobile app from the IRS. The IRS issues tips regularly duringsummer and tax season. Special Edition tips are sent periodically with othertimely updates.
The IRS emphasizes that each household's financial circumstances aredifferent so it's important to fully consider your specific situation and goalsbefore making large financial decisions.
Please contact us if you have any questions. 801-269-1818
Links:
- IRS Withholding Calculator
- Publication 919, How Do I Adjust My Tax Withholding? (PDF)
- 2011 Form 1040 (Schedule A) (PDF)
- Publication 970, Tax Benefits for Education (PDF)
12 Ekim 2012 Cuma
While Taxpayers Weren't Looking, IRS Quietyl Reinvented an Extension of Itself
To contact us Click HERE
The changes have been in the news, however, if you weren’tlooking for it, you may have not noticed. The end results, of the Internal Revenue changes appear to be slow anddeliberate. After 2013 there will be nomore tax professionals available to the public who are not registered andtested by either the State or the Feds.
Starting January 1, 2014, the Internal Revenue Service willhave its hand on the pulse of every tax professional either directly orindirectly, depending on the initials behind their names.
Tax Attorneys and CPAs will continue to be screened, testedand licensed by the State in which they live or do business in. Enrolled Agents and Registered Tax ReturnPreparers (RTRP) will be screened and tested by the Department of Treasury,Internal Revenue Service.
When you first look at this new organizational chart the taxprofessionals who represent the IRS, as Independent Contractors, you mightbelieve the recent changes would benefit Tax Attorneys and CPAs, and for themost part this could be true.
Yet, one you become a part of the changes by completing thenew requirements imposed upon tax preparers, you begin to see a slightlydifferent picture emerging. The changeenables, the IRS to become completely self-contained.
With the new Registered Tax Return Preparer (RTRP) the IRShas managed to enroll and register all levels of individual tax preparers, whoprepare taxes for a fee, except Tax Attorneys and CPAs, who are licensed by theStates.
Enrolled Agents and RTRP have no state boundaries and canwork across state lines. Get readypeople, because a change has already occurred when most of us weren’tlooking. My grandfather always said itwas the “little things,” that you have to watch out for.
The changes have been in the news, however, if you weren’tlooking for it, you may have not noticed. The end results, of the Internal Revenue changes appear to be slow anddeliberate. After 2013 there will be nomore tax professionals available to the public who are not registered andtested by either the State or the Feds.
Starting January 1, 2014, the Internal Revenue Service willhave its hand on the pulse of every tax professional either directly orindirectly, depending on the initials behind their names.
Tax Attorneys and CPAs will continue to be screened, testedand licensed by the State in which they live or do business in. Enrolled Agents and Registered Tax ReturnPreparers (RTRP) will be screened and tested by the Department of Treasury,Internal Revenue Service.
When you first look at this new organizational chart the taxprofessionals who represent the IRS, as Independent Contractors, you mightbelieve the recent changes would benefit Tax Attorneys and CPAs, and for themost part this could be true.
Yet, one you become a part of the changes by completing thenew requirements imposed upon tax preparers, you begin to see a slightlydifferent picture emerging. The changeenables, the IRS to become completely self-contained.
With the new Registered Tax Return Preparer (RTRP) the IRShas managed to enroll and register all levels of individual tax preparers, whoprepare taxes for a fee, except Tax Attorneys and CPAs, who are licensed by theStates.
Enrolled Agents and RTRP have no state boundaries and canwork across state lines. Get readypeople, because a change has already occurred when most of us weren’tlooking. My grandfather always said itwas the “little things,” that you have to watch out for.
OK People This is What We Have Been Waiting For, Miitt Romney's Tax Return
To contact us Click HERE
This tax return will show you without a doubt how the very wealthy earn, generate, create and maintain vast sums of income. If you get nothing else from this presidential election, you should feel blessed to be able to review such a return. This is the type of return that most of us can only dream of understanding, implementing and learning from.
If you re not excited about this, then either you don't understand, or you don't plan on increasing your income.
Peace, Love and God Bless America, cause God knows, there are very few places on earth where such a tax return could exist.
http://www.huffingtonpost.com/2012/09/21/mitt-romney-tax-returns-released_n_1904242.html?icid= maing-grid7%7Cmain5%7Cdl1%7Csec1_lnk2%26pLid%3D209085
If you re not excited about this, then either you don't understand, or you don't plan on increasing your income.
Peace, Love and God Bless America, cause God knows, there are very few places on earth where such a tax return could exist.
http://www.huffingtonpost.com/2012/09/21/mitt-romney-tax-returns-released_n_1904242.html?icid= maing-grid7%7Cmain5%7Cdl1%7Csec1_lnk2%26pLid%3D209085
Mitt Romney's Taxes and Investments
To contact us Click HERE
I have previously talked about reviewing the presidential candidates tax returns to get inside information on how the wealthy generate wealth.
When reviewing Mitt Romney's 2011 tax return, we found the usual components for a very wealthy man. A family trust controls most of the assets and had invested in securities from companies with ties to Iran, investments in Chinese oil company, CNOOC. Plus we found that these questionable investments for a presidential candidate might cause some problems.
The tax return supports that Mitt Romney were very much aware of these questionable investments as it would relate to the U.S. voters, and sold the stocks!
This blog is NOT about politics, this blog is about tax write offs, tax loopholes and ways to decrease your tax liabilities while increasing your assets, income and peace of mind. What the tax returns of wealthy presidential candidates reveals is HOW, the rich get rich.
What you now know is that investing in oil, regardless of which country the investment is affiliated with, is one of the strategies for building wealth.
As the weeks go by, we will look at more investment strategies of the wealthy. After all if we duplicate the investment patterns of the wealthy, on a much smaller scale, you too can benefit, even though a lot of details about the taxes are missing, tax experts were still able to determine certain facts. Read the entire Mitt Romney tax saga
When reviewing Mitt Romney's 2011 tax return, we found the usual components for a very wealthy man. A family trust controls most of the assets and had invested in securities from companies with ties to Iran, investments in Chinese oil company, CNOOC. Plus we found that these questionable investments for a presidential candidate might cause some problems.
The tax return supports that Mitt Romney were very much aware of these questionable investments as it would relate to the U.S. voters, and sold the stocks!
This blog is NOT about politics, this blog is about tax write offs, tax loopholes and ways to decrease your tax liabilities while increasing your assets, income and peace of mind. What the tax returns of wealthy presidential candidates reveals is HOW, the rich get rich.
What you now know is that investing in oil, regardless of which country the investment is affiliated with, is one of the strategies for building wealth.
As the weeks go by, we will look at more investment strategies of the wealthy. After all if we duplicate the investment patterns of the wealthy, on a much smaller scale, you too can benefit, even though a lot of details about the taxes are missing, tax experts were still able to determine certain facts. Read the entire Mitt Romney tax saga
How & When to Write Off the Start-up Cost for Your Business
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Capital Expenses:
Start-up costs and organizational costs are capital expenses. Capital expenses are generally not deductible and are added to the taxpayer’s basis in the business. If the expenses are not otherwise recoverable through depreciation, amortization, depletion or the cost of goods sold deduction, the expenses are recovered at the time the business is sold.
Start-up and Organizational Cost
Deduction Limits for 2011 are $5000 for each; reduced dollar-for-dollar when the total costs exceed $50,000. Limits apply separately.
Start-up costs and organizational costs are capital expenses. Capital expenses are generally not deductible and are added to the taxpayer’s basis in the business. If the expenses are not otherwise recoverable through depreciation, amortization, depletion or the cost of goods sold deduction, the expenses are recovered at the time the business is sold.
Start-up and Organizational Cost
Deduction Limits for 2011 are $5000 for each; reduced dollar-for-dollar when the total costs exceed $50,000. Limits apply separately.
Which Taxes are Tax Deductible?
To contact us Click HERE
Tax Deductions - Often times there is confussion on which taxes can and can not be used on your tax return. The following information will help you:
The following taxes can be deducted on Line 23 of Schedule C.
State and local sales taxes imposed on the employer as the seller of goods or services. If this tax is collected from the buyer, it must also include the amount collected in gross receipts or sales on line 1.
Real estate and personal property taxes on business assets.
Licenses and regulatory fees for the trade or business paid each year to state or local governments. Some licenses, such as liquor licenses, may have to be amortized. See chapter 8 of Pub. 535 for details.
Social security and Medicare taxes paid to match required withholding from the employees' wages. Reduce the deduction by the amount shown on Form 8846, line 4.
Federal unemployment tax paid.
Federal highway use tax.
Contributions to state unemployment insurance fund or disability benefit fund if they are considered taxes under state law.
The following taxes cannot be deducted.
Federal income taxes, including self-employment tax. However, the deduction for one-half the self-employment tax on Form 1040, line 27 is deductible.
Estate and gift taxes.
Taxes assessed to pay for improvements, such as paving and sewers.
Taxes on the home or personal use property.
State and local sales taxes on property purchased for business. Instead, treat these taxes as part of the cost of the property.
State and local sales taxes imposed on the buyer that the employer was required to collect and pay over to state or local governments. These taxes are not included in gross receipts or sales nor are they a deductible expense. However, if the state or local government allowed the employer to retain any part of the sales tax collected, the amount must be included as income.
Other taxes and license fees not related to the business
The following taxes can be deducted on Line 23 of Schedule C.
State and local sales taxes imposed on the employer as the seller of goods or services. If this tax is collected from the buyer, it must also include the amount collected in gross receipts or sales on line 1.
Real estate and personal property taxes on business assets.
Licenses and regulatory fees for the trade or business paid each year to state or local governments. Some licenses, such as liquor licenses, may have to be amortized. See chapter 8 of Pub. 535 for details.
Social security and Medicare taxes paid to match required withholding from the employees' wages. Reduce the deduction by the amount shown on Form 8846, line 4.
Federal unemployment tax paid.
Federal highway use tax.
Contributions to state unemployment insurance fund or disability benefit fund if they are considered taxes under state law.
The following taxes cannot be deducted.
Federal income taxes, including self-employment tax. However, the deduction for one-half the self-employment tax on Form 1040, line 27 is deductible.
Estate and gift taxes.
Taxes assessed to pay for improvements, such as paving and sewers.
Taxes on the home or personal use property.
State and local sales taxes on property purchased for business. Instead, treat these taxes as part of the cost of the property.
State and local sales taxes imposed on the buyer that the employer was required to collect and pay over to state or local governments. These taxes are not included in gross receipts or sales nor are they a deductible expense. However, if the state or local government allowed the employer to retain any part of the sales tax collected, the amount must be included as income.
Other taxes and license fees not related to the business
11 Ekim 2012 Perşembe
The IRS Pays an Ex-Banker $104 Million Dollars for His Help
To contact us Click HERE
The IRS Whistle Blower Program is alive and well and to provide it, they have awarded an ex-banker $104 million dollars for offering up information on people who are classifieds as overseas tax cheats.
And the banker is a former Swiss banker, who himself served prison time for a fraud conspiracy conviction.
To learn the details about this most interesting announcement,click here to read the entire article on the IRS's latest million dollar whistle blower
This incident alone should make offshore account holders aware that the IRS is serious about unreported income, which may be housed in offshore bank accounts. We cannot stress enough the importance of coming clean about offshore accounts.
It is NOT illegal to have offshore accounts, however, it is illegal, NOT to share this information with the IRS. Are millions of dollars in taxes saved worth prison time? Make an appointment with an International Tax Attorney and discuss your options.
The IRS Whistle Blower Program is alive and well and to provide it, they have awarded an ex-banker $104 million dollars for offering up information on people who are classifieds as overseas tax cheats.
And the banker is a former Swiss banker, who himself served prison time for a fraud conspiracy conviction.
To learn the details about this most interesting announcement,click here to read the entire article on the IRS's latest million dollar whistle blower
This incident alone should make offshore account holders aware that the IRS is serious about unreported income, which may be housed in offshore bank accounts. We cannot stress enough the importance of coming clean about offshore accounts.
It is NOT illegal to have offshore accounts, however, it is illegal, NOT to share this information with the IRS. Are millions of dollars in taxes saved worth prison time? Make an appointment with an International Tax Attorney and discuss your options.
Tip for the Tax Return Preparers Exam
To contact us Click HERE
Tax Return Preparers Test Hot Topic: Ethics: Circular 230 Sub-Parts A, B, and C
Circular 230 sets forth stringent ethical standards and disciplinary sanctions for violations of those standards. The new scope introduced by the 2011 IRS and Treasury Department amendment to Circular 230 extends the applicability of the standards and sanctions in Circular 230 to registered tax return preparers. Therefore, 15% of the questions in the competency examination necessary to become a registered tax return preparer pertain to topics in Sections A, B and C of the Circular.
-------------------
Many have reported that the test clearly includes more than 15% questions on ethics. Take this info for what it's worth.
Tax Return Preparers Test Hot Topic: Ethics: Circular 230 Sub-Parts A, B, and C
Circular 230 sets forth stringent ethical standards and disciplinary sanctions for violations of those standards. The new scope introduced by the 2011 IRS and Treasury Department amendment to Circular 230 extends the applicability of the standards and sanctions in Circular 230 to registered tax return preparers. Therefore, 15% of the questions in the competency examination necessary to become a registered tax return preparer pertain to topics in Sections A, B and C of the Circular.
-------------------
Many have reported that the test clearly includes more than 15% questions on ethics. Take this info for what it's worth.
Read These Words: 2/3 of 400 Richest, ADDED to Their Fortunes in Last 12 Months
To contact us Click HERE
Fact: Two-thirds of these 400 billionaires added to their fortunes over the past 12 months.
Yes, when the economy bottomed out for many, the world's richest billionaires were adding to their fortune. OK, so it takes money to make money you say. Well maybe. How did they "add" to their fortunes? Or better yet, how did they get rich in the first place? (Not counting those who were born into wealth)
One way to find out is to review the tax returns which are public records for the wealthiest presidents and even governors, in the United States. Learn more about how the rich get richer and the poor, it appears is getting poorer.
Success is NOT a secret, success is a formula. And the United States Government has a "formula" to know how much of their wealth they need to pay in taxes.
Google has a "formula" to determine which pages go where in the search engines. And our current president "wrote a book" and increased his wealth. Well maybe your life story isn't as exciting, but there are formulas for great fiction novels!
And each of these 400 billionaires and all the rest of the millionaires all have "formulas" which have created wealth for them.
Can you say "formula"? You can read the entire article here: 2/3 of the 400 billionaires increased their fortunes over the last 12 month
Yes, when the economy bottomed out for many, the world's richest billionaires were adding to their fortune. OK, so it takes money to make money you say. Well maybe. How did they "add" to their fortunes? Or better yet, how did they get rich in the first place? (Not counting those who were born into wealth)
One way to find out is to review the tax returns which are public records for the wealthiest presidents and even governors, in the United States. Learn more about how the rich get richer and the poor, it appears is getting poorer.
Success is NOT a secret, success is a formula. And the United States Government has a "formula" to know how much of their wealth they need to pay in taxes.
Google has a "formula" to determine which pages go where in the search engines. And our current president "wrote a book" and increased his wealth. Well maybe your life story isn't as exciting, but there are formulas for great fiction novels!
And each of these 400 billionaires and all the rest of the millionaires all have "formulas" which have created wealth for them.
Can you say "formula"? You can read the entire article here: 2/3 of the 400 billionaires increased their fortunes over the last 12 month
OK People This is What We Have Been Waiting For, Miitt Romney's Tax Return
To contact us Click HERE
This tax return will show you without a doubt how the very wealthy earn, generate, create and maintain vast sums of income. If you get nothing else from this presidential election, you should feel blessed to be able to review such a return. This is the type of return that most of us can only dream of understanding, implementing and learning from.
If you re not excited about this, then either you don't understand, or you don't plan on increasing your income.
Peace, Love and God Bless America, cause God knows, there are very few places on earth where such a tax return could exist.
http://www.huffingtonpost.com/2012/09/21/mitt-romney-tax-returns-released_n_1904242.html?icid= maing-grid7%7Cmain5%7Cdl1%7Csec1_lnk2%26pLid%3D209085
If you re not excited about this, then either you don't understand, or you don't plan on increasing your income.
Peace, Love and God Bless America, cause God knows, there are very few places on earth where such a tax return could exist.
http://www.huffingtonpost.com/2012/09/21/mitt-romney-tax-returns-released_n_1904242.html?icid= maing-grid7%7Cmain5%7Cdl1%7Csec1_lnk2%26pLid%3D209085
Mitt Romney's Taxes and Investments
To contact us Click HERE
I have previously talked about reviewing the presidential candidates tax returns to get inside information on how the wealthy generate wealth.
When reviewing Mitt Romney's 2011 tax return, we found the usual components for a very wealthy man. A family trust controls most of the assets and had invested in securities from companies with ties to Iran, investments in Chinese oil company, CNOOC. Plus we found that these questionable investments for a presidential candidate might cause some problems.
The tax return supports that Mitt Romney were very much aware of these questionable investments as it would relate to the U.S. voters, and sold the stocks!
This blog is NOT about politics, this blog is about tax write offs, tax loopholes and ways to decrease your tax liabilities while increasing your assets, income and peace of mind. What the tax returns of wealthy presidential candidates reveals is HOW, the rich get rich.
What you now know is that investing in oil, regardless of which country the investment is affiliated with, is one of the strategies for building wealth.
As the weeks go by, we will look at more investment strategies of the wealthy. After all if we duplicate the investment patterns of the wealthy, on a much smaller scale, you too can benefit, even though a lot of details about the taxes are missing, tax experts were still able to determine certain facts. Read the entire Mitt Romney tax saga
When reviewing Mitt Romney's 2011 tax return, we found the usual components for a very wealthy man. A family trust controls most of the assets and had invested in securities from companies with ties to Iran, investments in Chinese oil company, CNOOC. Plus we found that these questionable investments for a presidential candidate might cause some problems.
The tax return supports that Mitt Romney were very much aware of these questionable investments as it would relate to the U.S. voters, and sold the stocks!
This blog is NOT about politics, this blog is about tax write offs, tax loopholes and ways to decrease your tax liabilities while increasing your assets, income and peace of mind. What the tax returns of wealthy presidential candidates reveals is HOW, the rich get rich.
What you now know is that investing in oil, regardless of which country the investment is affiliated with, is one of the strategies for building wealth.
As the weeks go by, we will look at more investment strategies of the wealthy. After all if we duplicate the investment patterns of the wealthy, on a much smaller scale, you too can benefit, even though a lot of details about the taxes are missing, tax experts were still able to determine certain facts. Read the entire Mitt Romney tax saga
10 Ekim 2012 Çarşamba
Investing Does Not Always Mean Putting Money into the Stock Market or a Real Estate Deal
To contact us Click HERE
Another major investment which people often forget about isthe investment of time, energy and effort into themselves. To be honest, investing in yourself is one ofthe greatest investments a person can make. After all, you know there will be a gain, when you put money and timeinto improving yourself.
No, I am NOT talking about a new Porsche automobile, sowomen, or men will think you are hot. Iam speaking about the investment of time into learning, education, increasingyour self-worth in order to increase your net worth in the future.
In the many years of doing taxes, one of the facts I learnedearly is, those who increased their income from year to year, often did sobecause of their effort to flatten the learning curve on certain subjects.
Yes, we all want to make more money, yet not all of us willtake the time to sit down and make a plan and then follow the plan, in order torealize our dreams. If you make a plan,you are sure to realize that you may need to “learn more” about a subject, job,task, venture or project in order to realize the goals.Invest in yourself.
Another major investment which people often forget about isthe investment of time, energy and effort into themselves. To be honest, investing in yourself is one ofthe greatest investments a person can make. After all, you know there will be a gain, when you put money and timeinto improving yourself.
No, I am NOT talking about a new Porsche automobile, sowomen, or men will think you are hot. Iam speaking about the investment of time into learning, education, increasingyour self-worth in order to increase your net worth in the future.
In the many years of doing taxes, one of the facts I learnedearly is, those who increased their income from year to year, often did sobecause of their effort to flatten the learning curve on certain subjects.
Yes, we all want to make more money, yet not all of us willtake the time to sit down and make a plan and then follow the plan, in order torealize our dreams. If you make a plan,you are sure to realize that you may need to “learn more” about a subject, job,task, venture or project in order to realize the goals.Invest in yourself.
OK People This is What We Have Been Waiting For, Miitt Romney's Tax Return
To contact us Click HERE
This tax return will show you without a doubt how the very wealthy earn, generate, create and maintain vast sums of income. If you get nothing else from this presidential election, you should feel blessed to be able to review such a return. This is the type of return that most of us can only dream of understanding, implementing and learning from.
If you re not excited about this, then either you don't understand, or you don't plan on increasing your income.
Peace, Love and God Bless America, cause God knows, there are very few places on earth where such a tax return could exist.
http://www.huffingtonpost.com/2012/09/21/mitt-romney-tax-returns-released_n_1904242.html?icid= maing-grid7%7Cmain5%7Cdl1%7Csec1_lnk2%26pLid%3D209085
If you re not excited about this, then either you don't understand, or you don't plan on increasing your income.
Peace, Love and God Bless America, cause God knows, there are very few places on earth where such a tax return could exist.
http://www.huffingtonpost.com/2012/09/21/mitt-romney-tax-returns-released_n_1904242.html?icid= maing-grid7%7Cmain5%7Cdl1%7Csec1_lnk2%26pLid%3D209085
Mitt Romney's Taxes and Investments
To contact us Click HERE
I have previously talked about reviewing the presidential candidates tax returns to get inside information on how the wealthy generate wealth.
When reviewing Mitt Romney's 2011 tax return, we found the usual components for a very wealthy man. A family trust controls most of the assets and had invested in securities from companies with ties to Iran, investments in Chinese oil company, CNOOC. Plus we found that these questionable investments for a presidential candidate might cause some problems.
The tax return supports that Mitt Romney were very much aware of these questionable investments as it would relate to the U.S. voters, and sold the stocks!
This blog is NOT about politics, this blog is about tax write offs, tax loopholes and ways to decrease your tax liabilities while increasing your assets, income and peace of mind. What the tax returns of wealthy presidential candidates reveals is HOW, the rich get rich.
What you now know is that investing in oil, regardless of which country the investment is affiliated with, is one of the strategies for building wealth.
As the weeks go by, we will look at more investment strategies of the wealthy. After all if we duplicate the investment patterns of the wealthy, on a much smaller scale, you too can benefit, even though a lot of details about the taxes are missing, tax experts were still able to determine certain facts. Read the entire Mitt Romney tax saga
When reviewing Mitt Romney's 2011 tax return, we found the usual components for a very wealthy man. A family trust controls most of the assets and had invested in securities from companies with ties to Iran, investments in Chinese oil company, CNOOC. Plus we found that these questionable investments for a presidential candidate might cause some problems.
The tax return supports that Mitt Romney were very much aware of these questionable investments as it would relate to the U.S. voters, and sold the stocks!
This blog is NOT about politics, this blog is about tax write offs, tax loopholes and ways to decrease your tax liabilities while increasing your assets, income and peace of mind. What the tax returns of wealthy presidential candidates reveals is HOW, the rich get rich.
What you now know is that investing in oil, regardless of which country the investment is affiliated with, is one of the strategies for building wealth.
As the weeks go by, we will look at more investment strategies of the wealthy. After all if we duplicate the investment patterns of the wealthy, on a much smaller scale, you too can benefit, even though a lot of details about the taxes are missing, tax experts were still able to determine certain facts. Read the entire Mitt Romney tax saga
Tips for Taxpayers Who Can't Pay Their Taxes on Time
To contact us Click HERE
If you owe tax with your federal tax return, but can't afford to pay it all when you file, the IRS wants you to know your options and help you keep interest and penalties to a minimum.
Here are five tips:
1. File your return on time and pay as much as you can with the return. These steps will eliminate the late filing penalty, reduce the late payment penalty and cut down on interest charges. For electronic and credit card options for paying see www.IRS.gov. You may also mail a check payable to the United States Treasury.
2. Consider obtaining a loan or paying by credit card. The interest rate and fees charged by a bank or credit card company may be lower than interest and penalties imposed by the Internal Revenue Code.
3. Request an installment payment agreement. You do not need to wait for IRS to send you a bill before requesting a payment agreement. Options for requesting an agreement include:
• Using the Online Payment Agreement application and
• Completing and submitting IRS Form 9465-FS, Installment Agreement Request, with your return IRS charges a user fee to set up your payment agreement. See www.irs.gov or the installment agreement request form for fee amounts.
4. Request an extension of time to pay. For tax year 2011, qualifying individuals may request an extension of time to pay and have the late payment penalty waived as part of the IRS Fresh Start Initiative. To see if you qualify visit www.irs.gov and get form 1127-A, Application for Extension of Time for Payment. But hurry, your application must be filed by April 17, 2012.
5. If you receive a bill from the IRS, please contact us immediately to discuss these and other payment options. Ignoring the bill will only compound your problem and could lead to IRS collection action.
If you can’t pay in full and on time, the key to minimizing your penalty and interest charges is to pay as much as possible by the tax deadline and the balance as soon as you can. For more information on the IRS collection process go to or see IRSVideos.gov/OweTaxes.
Here are five tips:
1. File your return on time and pay as much as you can with the return. These steps will eliminate the late filing penalty, reduce the late payment penalty and cut down on interest charges. For electronic and credit card options for paying see www.IRS.gov. You may also mail a check payable to the United States Treasury.
2. Consider obtaining a loan or paying by credit card. The interest rate and fees charged by a bank or credit card company may be lower than interest and penalties imposed by the Internal Revenue Code.
3. Request an installment payment agreement. You do not need to wait for IRS to send you a bill before requesting a payment agreement. Options for requesting an agreement include:
• Using the Online Payment Agreement application and
• Completing and submitting IRS Form 9465-FS, Installment Agreement Request, with your return IRS charges a user fee to set up your payment agreement. See www.irs.gov or the installment agreement request form for fee amounts.
4. Request an extension of time to pay. For tax year 2011, qualifying individuals may request an extension of time to pay and have the late payment penalty waived as part of the IRS Fresh Start Initiative. To see if you qualify visit www.irs.gov and get form 1127-A, Application for Extension of Time for Payment. But hurry, your application must be filed by April 17, 2012.
5. If you receive a bill from the IRS, please contact us immediately to discuss these and other payment options. Ignoring the bill will only compound your problem and could lead to IRS collection action.
If you can’t pay in full and on time, the key to minimizing your penalty and interest charges is to pay as much as possible by the tax deadline and the balance as soon as you can. For more information on the IRS collection process go to or see IRSVideos.gov/OweTaxes.
Start Planning Now for Next Year's Tax Return
To contact us Click HERE
The tax deadline may have just passed but planning for next year can startnow. The IRS reminds taxpayers that being organized and planning ahead can savetime, money and headaches in 2013. Here are eight things you can do now to makenext April 15 easier.
1. Adjust your withholding Why wait another year for a bigrefund? Now is a good time to review your withholding and make adjustments fornext year, especially if you'd prefer more money in each paycheck this year. Ifyou owed at tax time, perhaps you'd like next year's tax payment to be smaller.Use IRS's Withholding Calculator at www.irs.govor Publication 919, How Do I Adjust My Tax Withholding?
2. Store your return in a safe place Put your 2011 taxreturn and supporting documents somewhere secure so you'll know exactly whereto find them if you receive an IRS notice and need to refer to your return. Ifit is easy to find, you can also use it as a helpful guide for next year's return.
3. Organize your recordkeeping Establish a central locationwhere everyone in your household can put tax-related records all year long.Anything from a shoebox to a file cabinet works. Just be consistent to avoid ascramble for misplaced mileage logs or charity receipts come tax time.
4. Review your paycheck Make sure your employer is properlywithholding and reporting retirement account contributions, health insurancepayments, charitable payroll deductions and other items. These payrolladjustments can make a big difference on your bottom line. Fixing an error inyour paycheck now gets you back on track before it becomes a huge hassle.
5. Shop for a tax professional early If you use a taxprofessional to help you strategize, plan and make financial decisionsthroughout the year, then search now. You'll have more time when you're not upagainst a deadline or anxious for your refund. Choose a tax professionalwisely. You are ultimately responsible for the accuracy of your own returnregardless of who prepares it. Find tips for choosing a preparer at www.irs.gov.
6. Prepare to itemize deductions If your expenses typicallyfall just below the amount to make itemizing advantageous, a bit of planning tobundle deductions into 2012 may pay off. An early or extra mortgage payment,pre-deadline property tax payments, planned donations or strategically paidmedical bills could equal some tax savings. See the Schedule A instructions forexpenses you can deduct if you're itemizing and then prepare an approach thatworks best for you.
7. Strategize tuition payments The American Opportunity TaxCredit, which offsets higher education expenses, is set to expire after 2012.It may be beneficial to pay 2013 tuition in 2012 to take full advantage of thistax credit, up to $2,500, before it expires. For more information, see IRSPublication 970, Tax Benefits for Education.
8. Keep up with changes Find out about tax law changes,helpful tips and IRS announcements all year by subscribing to IRS Tax Tipsthrough www.irs.govor IRS2Go, the mobile app from the IRS. The IRS issues tips regularly duringsummer and tax season. Special Edition tips are sent periodically with othertimely updates.
The IRS emphasizes that each household's financial circumstances aredifferent so it's important to fully consider your specific situation and goalsbefore making large financial decisions.
Please contact us if you have any questions. 801-269-1818
Links:
The tax deadline may have just passed but planning for next year can startnow. The IRS reminds taxpayers that being organized and planning ahead can savetime, money and headaches in 2013. Here are eight things you can do now to makenext April 15 easier.
1. Adjust your withholding Why wait another year for a bigrefund? Now is a good time to review your withholding and make adjustments fornext year, especially if you'd prefer more money in each paycheck this year. Ifyou owed at tax time, perhaps you'd like next year's tax payment to be smaller.Use IRS's Withholding Calculator at www.irs.govor Publication 919, How Do I Adjust My Tax Withholding?
2. Store your return in a safe place Put your 2011 taxreturn and supporting documents somewhere secure so you'll know exactly whereto find them if you receive an IRS notice and need to refer to your return. Ifit is easy to find, you can also use it as a helpful guide for next year's return.
3. Organize your recordkeeping Establish a central locationwhere everyone in your household can put tax-related records all year long.Anything from a shoebox to a file cabinet works. Just be consistent to avoid ascramble for misplaced mileage logs or charity receipts come tax time.
4. Review your paycheck Make sure your employer is properlywithholding and reporting retirement account contributions, health insurancepayments, charitable payroll deductions and other items. These payrolladjustments can make a big difference on your bottom line. Fixing an error inyour paycheck now gets you back on track before it becomes a huge hassle.
5. Shop for a tax professional early If you use a taxprofessional to help you strategize, plan and make financial decisionsthroughout the year, then search now. You'll have more time when you're not upagainst a deadline or anxious for your refund. Choose a tax professionalwisely. You are ultimately responsible for the accuracy of your own returnregardless of who prepares it. Find tips for choosing a preparer at www.irs.gov.
6. Prepare to itemize deductions If your expenses typicallyfall just below the amount to make itemizing advantageous, a bit of planning tobundle deductions into 2012 may pay off. An early or extra mortgage payment,pre-deadline property tax payments, planned donations or strategically paidmedical bills could equal some tax savings. See the Schedule A instructions forexpenses you can deduct if you're itemizing and then prepare an approach thatworks best for you.
7. Strategize tuition payments The American Opportunity TaxCredit, which offsets higher education expenses, is set to expire after 2012.It may be beneficial to pay 2013 tuition in 2012 to take full advantage of thistax credit, up to $2,500, before it expires. For more information, see IRSPublication 970, Tax Benefits for Education.
8. Keep up with changes Find out about tax law changes,helpful tips and IRS announcements all year by subscribing to IRS Tax Tipsthrough www.irs.govor IRS2Go, the mobile app from the IRS. The IRS issues tips regularly duringsummer and tax season. Special Edition tips are sent periodically with othertimely updates.
The IRS emphasizes that each household's financial circumstances aredifferent so it's important to fully consider your specific situation and goalsbefore making large financial decisions.
Please contact us if you have any questions. 801-269-1818
Links:
- IRS Withholding Calculator
- Publication 919, How Do I Adjust My Tax Withholding? (PDF)
- 2011 Form 1040 (Schedule A) (PDF)
- Publication 970, Tax Benefits for Education (PDF)
9 Ekim 2012 Salı
OK People This is What We Have Been Waiting For, Miitt Romney's Tax Return
To contact us Click HERE
This tax return will show you without a doubt how the very wealthy earn, generate, create and maintain vast sums of income. If you get nothing else from this presidential election, you should feel blessed to be able to review such a return. This is the type of return that most of us can only dream of understanding, implementing and learning from.
If you re not excited about this, then either you don't understand, or you don't plan on increasing your income.
Peace, Love and God Bless America, cause God knows, there are very few places on earth where such a tax return could exist.
http://www.huffingtonpost.com/2012/09/21/mitt-romney-tax-returns-released_n_1904242.html?icid= maing-grid7%7Cmain5%7Cdl1%7Csec1_lnk2%26pLid%3D209085
If you re not excited about this, then either you don't understand, or you don't plan on increasing your income.
Peace, Love and God Bless America, cause God knows, there are very few places on earth where such a tax return could exist.
http://www.huffingtonpost.com/2012/09/21/mitt-romney-tax-returns-released_n_1904242.html?icid= maing-grid7%7Cmain5%7Cdl1%7Csec1_lnk2%26pLid%3D209085
Mitt Romney's Taxes and Investments
To contact us Click HERE
I have previously talked about reviewing the presidential candidates tax returns to get inside information on how the wealthy generate wealth.
When reviewing Mitt Romney's 2011 tax return, we found the usual components for a very wealthy man. A family trust controls most of the assets and had invested in securities from companies with ties to Iran, investments in Chinese oil company, CNOOC. Plus we found that these questionable investments for a presidential candidate might cause some problems.
The tax return supports that Mitt Romney were very much aware of these questionable investments as it would relate to the U.S. voters, and sold the stocks!
This blog is NOT about politics, this blog is about tax write offs, tax loopholes and ways to decrease your tax liabilities while increasing your assets, income and peace of mind. What the tax returns of wealthy presidential candidates reveals is HOW, the rich get rich.
What you now know is that investing in oil, regardless of which country the investment is affiliated with, is one of the strategies for building wealth.
As the weeks go by, we will look at more investment strategies of the wealthy. After all if we duplicate the investment patterns of the wealthy, on a much smaller scale, you too can benefit, even though a lot of details about the taxes are missing, tax experts were still able to determine certain facts. Read the entire Mitt Romney tax saga
When reviewing Mitt Romney's 2011 tax return, we found the usual components for a very wealthy man. A family trust controls most of the assets and had invested in securities from companies with ties to Iran, investments in Chinese oil company, CNOOC. Plus we found that these questionable investments for a presidential candidate might cause some problems.
The tax return supports that Mitt Romney were very much aware of these questionable investments as it would relate to the U.S. voters, and sold the stocks!
This blog is NOT about politics, this blog is about tax write offs, tax loopholes and ways to decrease your tax liabilities while increasing your assets, income and peace of mind. What the tax returns of wealthy presidential candidates reveals is HOW, the rich get rich.
What you now know is that investing in oil, regardless of which country the investment is affiliated with, is one of the strategies for building wealth.
As the weeks go by, we will look at more investment strategies of the wealthy. After all if we duplicate the investment patterns of the wealthy, on a much smaller scale, you too can benefit, even though a lot of details about the taxes are missing, tax experts were still able to determine certain facts. Read the entire Mitt Romney tax saga
Tips for Taxpayers Who Can't Pay Their Taxes on Time
To contact us Click HERE
If you owe tax with your federal tax return, but can't afford to pay it all when you file, the IRS wants you to know your options and help you keep interest and penalties to a minimum.
Here are five tips:
1. File your return on time and pay as much as you can with the return. These steps will eliminate the late filing penalty, reduce the late payment penalty and cut down on interest charges. For electronic and credit card options for paying see www.IRS.gov. You may also mail a check payable to the United States Treasury.
2. Consider obtaining a loan or paying by credit card. The interest rate and fees charged by a bank or credit card company may be lower than interest and penalties imposed by the Internal Revenue Code.
3. Request an installment payment agreement. You do not need to wait for IRS to send you a bill before requesting a payment agreement. Options for requesting an agreement include:
• Using the Online Payment Agreement application and
• Completing and submitting IRS Form 9465-FS, Installment Agreement Request, with your return IRS charges a user fee to set up your payment agreement. See www.irs.gov or the installment agreement request form for fee amounts.
4. Request an extension of time to pay. For tax year 2011, qualifying individuals may request an extension of time to pay and have the late payment penalty waived as part of the IRS Fresh Start Initiative. To see if you qualify visit www.irs.gov and get form 1127-A, Application for Extension of Time for Payment. But hurry, your application must be filed by April 17, 2012.
5. If you receive a bill from the IRS, please contact us immediately to discuss these and other payment options. Ignoring the bill will only compound your problem and could lead to IRS collection action.
If you can’t pay in full and on time, the key to minimizing your penalty and interest charges is to pay as much as possible by the tax deadline and the balance as soon as you can. For more information on the IRS collection process go to or see IRSVideos.gov/OweTaxes.
Here are five tips:
1. File your return on time and pay as much as you can with the return. These steps will eliminate the late filing penalty, reduce the late payment penalty and cut down on interest charges. For electronic and credit card options for paying see www.IRS.gov. You may also mail a check payable to the United States Treasury.
2. Consider obtaining a loan or paying by credit card. The interest rate and fees charged by a bank or credit card company may be lower than interest and penalties imposed by the Internal Revenue Code.
3. Request an installment payment agreement. You do not need to wait for IRS to send you a bill before requesting a payment agreement. Options for requesting an agreement include:
• Using the Online Payment Agreement application and
• Completing and submitting IRS Form 9465-FS, Installment Agreement Request, with your return IRS charges a user fee to set up your payment agreement. See www.irs.gov or the installment agreement request form for fee amounts.
4. Request an extension of time to pay. For tax year 2011, qualifying individuals may request an extension of time to pay and have the late payment penalty waived as part of the IRS Fresh Start Initiative. To see if you qualify visit www.irs.gov and get form 1127-A, Application for Extension of Time for Payment. But hurry, your application must be filed by April 17, 2012.
5. If you receive a bill from the IRS, please contact us immediately to discuss these and other payment options. Ignoring the bill will only compound your problem and could lead to IRS collection action.
If you can’t pay in full and on time, the key to minimizing your penalty and interest charges is to pay as much as possible by the tax deadline and the balance as soon as you can. For more information on the IRS collection process go to or see IRSVideos.gov/OweTaxes.
Start Planning Now for Next Year's Tax Return
To contact us Click HERE
The tax deadline may have just passed but planning for next year can startnow. The IRS reminds taxpayers that being organized and planning ahead can savetime, money and headaches in 2013. Here are eight things you can do now to makenext April 15 easier.
1. Adjust your withholding Why wait another year for a bigrefund? Now is a good time to review your withholding and make adjustments fornext year, especially if you'd prefer more money in each paycheck this year. Ifyou owed at tax time, perhaps you'd like next year's tax payment to be smaller.Use IRS's Withholding Calculator at www.irs.govor Publication 919, How Do I Adjust My Tax Withholding?
2. Store your return in a safe place Put your 2011 taxreturn and supporting documents somewhere secure so you'll know exactly whereto find them if you receive an IRS notice and need to refer to your return. Ifit is easy to find, you can also use it as a helpful guide for next year's return.
3. Organize your recordkeeping Establish a central locationwhere everyone in your household can put tax-related records all year long.Anything from a shoebox to a file cabinet works. Just be consistent to avoid ascramble for misplaced mileage logs or charity receipts come tax time.
4. Review your paycheck Make sure your employer is properlywithholding and reporting retirement account contributions, health insurancepayments, charitable payroll deductions and other items. These payrolladjustments can make a big difference on your bottom line. Fixing an error inyour paycheck now gets you back on track before it becomes a huge hassle.
5. Shop for a tax professional early If you use a taxprofessional to help you strategize, plan and make financial decisionsthroughout the year, then search now. You'll have more time when you're not upagainst a deadline or anxious for your refund. Choose a tax professionalwisely. You are ultimately responsible for the accuracy of your own returnregardless of who prepares it. Find tips for choosing a preparer at www.irs.gov.
6. Prepare to itemize deductions If your expenses typicallyfall just below the amount to make itemizing advantageous, a bit of planning tobundle deductions into 2012 may pay off. An early or extra mortgage payment,pre-deadline property tax payments, planned donations or strategically paidmedical bills could equal some tax savings. See the Schedule A instructions forexpenses you can deduct if you're itemizing and then prepare an approach thatworks best for you.
7. Strategize tuition payments The American Opportunity TaxCredit, which offsets higher education expenses, is set to expire after 2012.It may be beneficial to pay 2013 tuition in 2012 to take full advantage of thistax credit, up to $2,500, before it expires. For more information, see IRSPublication 970, Tax Benefits for Education.
8. Keep up with changes Find out about tax law changes,helpful tips and IRS announcements all year by subscribing to IRS Tax Tipsthrough www.irs.govor IRS2Go, the mobile app from the IRS. The IRS issues tips regularly duringsummer and tax season. Special Edition tips are sent periodically with othertimely updates.
The IRS emphasizes that each household's financial circumstances aredifferent so it's important to fully consider your specific situation and goalsbefore making large financial decisions.
Please contact us if you have any questions. 801-269-1818
Links:
The tax deadline may have just passed but planning for next year can startnow. The IRS reminds taxpayers that being organized and planning ahead can savetime, money and headaches in 2013. Here are eight things you can do now to makenext April 15 easier.
1. Adjust your withholding Why wait another year for a bigrefund? Now is a good time to review your withholding and make adjustments fornext year, especially if you'd prefer more money in each paycheck this year. Ifyou owed at tax time, perhaps you'd like next year's tax payment to be smaller.Use IRS's Withholding Calculator at www.irs.govor Publication 919, How Do I Adjust My Tax Withholding?
2. Store your return in a safe place Put your 2011 taxreturn and supporting documents somewhere secure so you'll know exactly whereto find them if you receive an IRS notice and need to refer to your return. Ifit is easy to find, you can also use it as a helpful guide for next year's return.
3. Organize your recordkeeping Establish a central locationwhere everyone in your household can put tax-related records all year long.Anything from a shoebox to a file cabinet works. Just be consistent to avoid ascramble for misplaced mileage logs or charity receipts come tax time.
4. Review your paycheck Make sure your employer is properlywithholding and reporting retirement account contributions, health insurancepayments, charitable payroll deductions and other items. These payrolladjustments can make a big difference on your bottom line. Fixing an error inyour paycheck now gets you back on track before it becomes a huge hassle.
5. Shop for a tax professional early If you use a taxprofessional to help you strategize, plan and make financial decisionsthroughout the year, then search now. You'll have more time when you're not upagainst a deadline or anxious for your refund. Choose a tax professionalwisely. You are ultimately responsible for the accuracy of your own returnregardless of who prepares it. Find tips for choosing a preparer at www.irs.gov.
6. Prepare to itemize deductions If your expenses typicallyfall just below the amount to make itemizing advantageous, a bit of planning tobundle deductions into 2012 may pay off. An early or extra mortgage payment,pre-deadline property tax payments, planned donations or strategically paidmedical bills could equal some tax savings. See the Schedule A instructions forexpenses you can deduct if you're itemizing and then prepare an approach thatworks best for you.
7. Strategize tuition payments The American Opportunity TaxCredit, which offsets higher education expenses, is set to expire after 2012.It may be beneficial to pay 2013 tuition in 2012 to take full advantage of thistax credit, up to $2,500, before it expires. For more information, see IRSPublication 970, Tax Benefits for Education.
8. Keep up with changes Find out about tax law changes,helpful tips and IRS announcements all year by subscribing to IRS Tax Tipsthrough www.irs.govor IRS2Go, the mobile app from the IRS. The IRS issues tips regularly duringsummer and tax season. Special Edition tips are sent periodically with othertimely updates.
The IRS emphasizes that each household's financial circumstances aredifferent so it's important to fully consider your specific situation and goalsbefore making large financial decisions.
Please contact us if you have any questions. 801-269-1818
Links:
- IRS Withholding Calculator
- Publication 919, How Do I Adjust My Tax Withholding? (PDF)
- 2011 Form 1040 (Schedule A) (PDF)
- Publication 970, Tax Benefits for Education (PDF)
Six Tips for Charitable Taxpayers
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Contributing money and property are ways that you can support a charitablecause, but in order for your donation to be tax-deductible, certain conditionsmust be met. Read on for six things the IRS wants taxpayers to know aboutdeductibility of donations.
1. Tax-exempt status. Contributions must be made toqualified charitable organizations to be deductible. Ask the charity about itstax-exempt status, or look for it on IRS.gov in the Exempt Organizations SelectCheck, an online search tool that allows users to select an exempt organizationand check certain information about its federal tax status as well asinformation about tax forms an organization may file that are available forpublic review. This search tool can also be used to find which charities havehad their exempt status automatically revoked.
2. Itemizing. Charitable contributions are deductibleonly if you itemize deductions using Form 1040, Schedule A.
3. Fair market value. Cash contributions and the fairmarket value of most property you donate to a qualified organization areusually deductible. Special rules apply to several types of donated property,including cars, boats, clothing and household items. If you receive somethingin return for your donation, such as merchandise, goods, services, admission toa charity banquet or sporting event only the amount exceeding the fair marketvalue of the benefit received can be deducted.
4. Records to keep. You should keep good records ofany donation you make, regardless of the amount. All cash contributions must bedocumented to be deductible – even donations of small amounts. A cancelledcheck, bank or credit card statement, payroll deduction record or a writtenstatement from the charity that includes the charity’s name, contribution dateand amount usually fulfill this record-keeping requirement.
5. Large donations. All contributions valued at $250and above require additional documentation to be deductible. For these, youshould receive a written statement from the charity acknowledging your donation.The statement should specify the amount of cash donated and/or provide adescription and fair market value of the property donated. It should also saywhether the charity provided any goods or services in exchange for yourdonation. If you donate non-cash items valued at $500 or more, you must alsocomplete a Form 8283, Noncash Charitable Contributions, and attach the form toyour return. If you claim a contribution of noncash property worth more than$5,000, you typically must obtain a property appraisal and attach it to yourreturn along with Form 8283.
6. Timing. If you pledge to donate to a qualifiedcharity, keep in mind that for most taxpayers contributions are only deductiblein the tax year they are actually made. For example, if you pledged $500 inSeptember but paid the charity just $200 by Dec. 31 of that same year, only$200 of the pledged amount may qualify as tax-deductible for that tax year.End-of-year donations by check or credit card usually qualify as tax-deductiblefor that tax year, even though you may not pay the credit card bill or haveyour bank account debited until after Dec. 31.
Bottom line: your support of a qualified charitable organization may provideyou with a money-saving tax deduction, but conditions do apply. For more information,see IRS Publication 526, Charitable Contributions, and for information ondetermining value, refer to Publication 561, Determining the Value of DonatedProperty.
Links:
Contributing money and property are ways that you can support a charitablecause, but in order for your donation to be tax-deductible, certain conditionsmust be met. Read on for six things the IRS wants taxpayers to know aboutdeductibility of donations.
1. Tax-exempt status. Contributions must be made toqualified charitable organizations to be deductible. Ask the charity about itstax-exempt status, or look for it on IRS.gov in the Exempt Organizations SelectCheck, an online search tool that allows users to select an exempt organizationand check certain information about its federal tax status as well asinformation about tax forms an organization may file that are available forpublic review. This search tool can also be used to find which charities havehad their exempt status automatically revoked.
2. Itemizing. Charitable contributions are deductibleonly if you itemize deductions using Form 1040, Schedule A.
3. Fair market value. Cash contributions and the fairmarket value of most property you donate to a qualified organization areusually deductible. Special rules apply to several types of donated property,including cars, boats, clothing and household items. If you receive somethingin return for your donation, such as merchandise, goods, services, admission toa charity banquet or sporting event only the amount exceeding the fair marketvalue of the benefit received can be deducted.
4. Records to keep. You should keep good records ofany donation you make, regardless of the amount. All cash contributions must bedocumented to be deductible – even donations of small amounts. A cancelledcheck, bank or credit card statement, payroll deduction record or a writtenstatement from the charity that includes the charity’s name, contribution dateand amount usually fulfill this record-keeping requirement.
5. Large donations. All contributions valued at $250and above require additional documentation to be deductible. For these, youshould receive a written statement from the charity acknowledging your donation.The statement should specify the amount of cash donated and/or provide adescription and fair market value of the property donated. It should also saywhether the charity provided any goods or services in exchange for yourdonation. If you donate non-cash items valued at $500 or more, you must alsocomplete a Form 8283, Noncash Charitable Contributions, and attach the form toyour return. If you claim a contribution of noncash property worth more than$5,000, you typically must obtain a property appraisal and attach it to yourreturn along with Form 8283.
6. Timing. If you pledge to donate to a qualifiedcharity, keep in mind that for most taxpayers contributions are only deductiblein the tax year they are actually made. For example, if you pledged $500 inSeptember but paid the charity just $200 by Dec. 31 of that same year, only$200 of the pledged amount may qualify as tax-deductible for that tax year.End-of-year donations by check or credit card usually qualify as tax-deductiblefor that tax year, even though you may not pay the credit card bill or haveyour bank account debited until after Dec. 31.
Bottom line: your support of a qualified charitable organization may provideyou with a money-saving tax deduction, but conditions do apply. For more information,see IRS Publication 526, Charitable Contributions, and for information ondetermining value, refer to Publication 561, Determining the Value of DonatedProperty.
Links:
- Exempt Organizations Select Check
- Schedule A (Form 1040), Itemized Deductions
- Form 8283, Noncash Charitable Contributions
- Publication 526, Charitable Contributions
- Publication 561, Determining the Value of Donated Property
- Tax Topic 506 - Charitable Contributions
8 Ekim 2012 Pazartesi
Wagner-Meinert and States Engineering Seek Abatements for Expansion in Fort Wayne
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From the Northwest Indiana Times:
Company expansions and equipment upgrades will result in nearly 20 new jobs – many of them high-paying – in the next year, according to paperwork filed with city officials.
Wagner-Meinert and States Engineering are seeking 10-year tax abatements that would save them $50,512 and $18,391, respectively. The businesses are investing about $700,000 combined.
Wagner-Meinert is an engineering and construction services operation. States Engineering is a foundry equipment manufacturer.
http://www.journalgazette.net/article/20121003/BIZ/121009832/0/SEARCH
Company expansions and equipment upgrades will result in nearly 20 new jobs – many of them high-paying – in the next year, according to paperwork filed with city officials.
Wagner-Meinert and States Engineering are seeking 10-year tax abatements that would save them $50,512 and $18,391, respectively. The businesses are investing about $700,000 combined.
Wagner-Meinert is an engineering and construction services operation. States Engineering is a foundry equipment manufacturer.
http://www.journalgazette.net/article/20121003/BIZ/121009832/0/SEARCH
Valparaiso Schools Not Seeking Referendum
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From the Northwest Indiana Times:
Valparaiso Community School Corp. Superintendent Mike Berta said, while the district is set to receive increased funding next year for full-day kindergarten, he remains concerned about a portion of the district's budget funded by the state.Despite this, he said there is no need at this time and there has been no talk about pursuing a voter referendum in support of raising property taxes for the school district.Berta and other school representatives left at least one official with the impression that a referendum is coming after presenting a detailed report Monday on the district's budget to the Porter County Council.The presentation was made because the County Council has been charged by the state with reviewing and approving the district budget as a result of it having an appointed rather than elected school board.Sharon Qualkenbush, who is Valparaiso schools chief financial officer, told the County Council the proposed 2013 $61.1 million budget is 1.6 percent more than the current year as a result of increased funding for full-day kindergarten and an increase of $114 per student.Berta said Wednesday part of the reason he remains cautious about the funding coming from the state is that there are many variables and some unknowns....The Duneland School Corp. narrowly won support earlier this year for its referendum to raise property taxes from 86 cents per $100 in assessed valuation to $1.08 to generate more money for schools.Voters in Crown Point approved a 21 cent increase in May 2011 for school operations, and Lake Central School Corp. won approval in November on a second bid to borrow money to rebuild two schools.http://www.nwitimes.com/news/local/porter/valparaiso/valpo-schools-see-no-need-yet-to-seek-tax-increase/article_3e539a81-de92-577b-87e5-c6109ee22656.html
Valparaiso Community School Corp. Superintendent Mike Berta said, while the district is set to receive increased funding next year for full-day kindergarten, he remains concerned about a portion of the district's budget funded by the state.Despite this, he said there is no need at this time and there has been no talk about pursuing a voter referendum in support of raising property taxes for the school district.Berta and other school representatives left at least one official with the impression that a referendum is coming after presenting a detailed report Monday on the district's budget to the Porter County Council.The presentation was made because the County Council has been charged by the state with reviewing and approving the district budget as a result of it having an appointed rather than elected school board.Sharon Qualkenbush, who is Valparaiso schools chief financial officer, told the County Council the proposed 2013 $61.1 million budget is 1.6 percent more than the current year as a result of increased funding for full-day kindergarten and an increase of $114 per student.Berta said Wednesday part of the reason he remains cautious about the funding coming from the state is that there are many variables and some unknowns....The Duneland School Corp. narrowly won support earlier this year for its referendum to raise property taxes from 86 cents per $100 in assessed valuation to $1.08 to generate more money for schools.Voters in Crown Point approved a 21 cent increase in May 2011 for school operations, and Lake Central School Corp. won approval in November on a second bid to borrow money to rebuild two schools.http://www.nwitimes.com/news/local/porter/valparaiso/valpo-schools-see-no-need-yet-to-seek-tax-increase/article_3e539a81-de92-577b-87e5-c6109ee22656.html
Council Scrutinizes Fort Wayne Parks' "Tree Tax"
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From the Fort Wayne News-Sentinel:
...
Fort Wayne Parks and Recreation's $13 million budget would remain largely unchanged under Mayor Tom Henry's 2013 spending plan. However, the department would make some cuts, and the city still faces millions of dollars in damage caused to trees by the emerald ash borer, parks Director Al Moll told council.The cuts would include tree trimming worth about $100,000 and several part- and full-time job cuts totaling about $160,000 per year, Moll said.The department also could save $10,000 a year by prohibiting ice skating on city ponds – a plan that Council President Tom Smith, R-1st, said would be a “major blow” to the park system's image. Councilman John Shoaff, D-at large, also said he opposed the cut.Smith also voiced strong opposition to a special fee for property taxpayers that would help replace thousands of dead and dying ash trees.As The News-Sentinel first reported last week, the parks board has discussed levying a fee up to $10 on top of each property owner's annual tax bill – a plan that could generate between $600,000 and $800,000 to help with the ash tree problem.“When we talk about the parks department's great reputation – this will ding you,” Smith told parks officials Tuesday. “People aren't going to like this.”Smith said he wants the city to put some of its $75 million “Legacy” fund – created from the lease and sale of the old City Light utility – to remove the city's remaining ash trees and replace them.Moll said the proposed fee – a one-time assessment that would need to be renewed each year – is being discussed as just one of multiple options to raise money for the work. The city paid $1.2 million to remove 4,500 trees this year, leaving about 2,500. In all, the department will need to replace about 12,000 ash trees, Moll has said.All the remaining work will cost about $4 million, according to Gary Morr, finance director for the department.
http://www.news-sentinel.com/apps/pbcs.dll/article?AID=/20121004/NEWS/121009835/0/SEARCH
...
Fort Wayne Parks and Recreation's $13 million budget would remain largely unchanged under Mayor Tom Henry's 2013 spending plan. However, the department would make some cuts, and the city still faces millions of dollars in damage caused to trees by the emerald ash borer, parks Director Al Moll told council.The cuts would include tree trimming worth about $100,000 and several part- and full-time job cuts totaling about $160,000 per year, Moll said.The department also could save $10,000 a year by prohibiting ice skating on city ponds – a plan that Council President Tom Smith, R-1st, said would be a “major blow” to the park system's image. Councilman John Shoaff, D-at large, also said he opposed the cut.Smith also voiced strong opposition to a special fee for property taxpayers that would help replace thousands of dead and dying ash trees.As The News-Sentinel first reported last week, the parks board has discussed levying a fee up to $10 on top of each property owner's annual tax bill – a plan that could generate between $600,000 and $800,000 to help with the ash tree problem.“When we talk about the parks department's great reputation – this will ding you,” Smith told parks officials Tuesday. “People aren't going to like this.”Smith said he wants the city to put some of its $75 million “Legacy” fund – created from the lease and sale of the old City Light utility – to remove the city's remaining ash trees and replace them.Moll said the proposed fee – a one-time assessment that would need to be renewed each year – is being discussed as just one of multiple options to raise money for the work. The city paid $1.2 million to remove 4,500 trees this year, leaving about 2,500. In all, the department will need to replace about 12,000 ash trees, Moll has said.All the remaining work will cost about $4 million, according to Gary Morr, finance director for the department.
http://www.news-sentinel.com/apps/pbcs.dll/article?AID=/20121004/NEWS/121009835/0/SEARCH
Howard County Ending Interlocal Agreement with Kokomo; Dispute Arises Over Distribution of Equipment
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From the Kokomo Tribune:
There is an impasse between Howard County and Kokomo officials on how to deal with the equipment used by the Emergency Management Agency and Weights & Measures departments which will be under county control by the end of the year.
Last month, the Kokomo Common Council voted to terminate the inter-local agreements with the county for the joint operation of Weights & Measures Oct. 16 and EMA Dec. 31.
The equipment for both agencies were purchased by both taxing units with Kokomo providing 55 percent of the funding and Howard County 45 percent.
The Howard County Commissioners on Monday voted to advertise for the purchase of a truck for use by the Weights & Measures Department and other equipment at a cost of up to $55,000.
“There is no agreement regarding the use of the equipment,” Commissioner Paul Wyman said. “We have to be in a position for Weights & Measures to continue to operate with a vehicle and the equipment needed.”
...
Wyman said my ending the inter-local agreements the city of Kokomo is saving $300,000. He said reasonable people would conclude he city would turn over the equipment to the county.
He said there has been no response from the city that the county is getting the equipment.
http://kokomotribune.com/local/x403315595/City-county-at-impasse
There is an impasse between Howard County and Kokomo officials on how to deal with the equipment used by the Emergency Management Agency and Weights & Measures departments which will be under county control by the end of the year.
Last month, the Kokomo Common Council voted to terminate the inter-local agreements with the county for the joint operation of Weights & Measures Oct. 16 and EMA Dec. 31.
The equipment for both agencies were purchased by both taxing units with Kokomo providing 55 percent of the funding and Howard County 45 percent.
The Howard County Commissioners on Monday voted to advertise for the purchase of a truck for use by the Weights & Measures Department and other equipment at a cost of up to $55,000.
“There is no agreement regarding the use of the equipment,” Commissioner Paul Wyman said. “We have to be in a position for Weights & Measures to continue to operate with a vehicle and the equipment needed.”
...
Wyman said my ending the inter-local agreements the city of Kokomo is saving $300,000. He said reasonable people would conclude he city would turn over the equipment to the county.
He said there has been no response from the city that the county is getting the equipment.
http://kokomotribune.com/local/x403315595/City-county-at-impasse
Board Finds Petitioners' Appraiser More Credible Than Respondent's Appraiser in Mall Valuation
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Here, Mr. Korpacz developed specific values for the subjectproperty for each assessment year under appeal. His sales comparison analysis was based on timely sales of regional mallsdeemed comparable to the subject property that were qualitatively adjusted toWashington determine the likely sale price in terms of a price per square footfor the Washington Square Mall. Mr.Korpacz further refined his sales comparable values by graphing each property’ssale price with its net operating income per square foot of gross leasablearea. And despite the fact that Mr.Korpacz rejected the value he determined for 2008 and regraphed the data usingonly Class D malls, the Board finds this to be a reasonable method fordetermining the value of the mall.
Conversely, Mr. Stump used sales of retail properties thatwere not regional malls. Mr. Stump used grocery store-anchored retail centersand community centers that are not comparable to enclosed regional malls andfailed to make any adjustments for differences in the properties. Further, Mr.Stump did not determine a specific value for any year but simply contends thatthe range of values from the five sales from 2005 through 2008 supports hisincome approach to value for each year. Thus, the Board gives little weight to the Respondent’s sales comparisonapproach.
The income approach analysis, however, is more difficult. The Petitioners’ appraiser usedcapitalization rates that were not supported by his evidence and he made incomeand expense assumptions that seemed designed to value the property at thelowest possible rate.
The Respondent’sappraiser, however, made no attempt to account for the prevalence of long termleases at rents that no longer represented the market rate at the property. In addition, the Respondent’s approach reliedupon the sale of properties that were not comparable to the subject property todevelop a capitalization rate. Because of the lengthy and detailed explanationsthat Mr. Korpacz provided for each of his assumptions and the lack ofexplanation that Mr. Stump gave for his analysis, the Board therefore givesmore weight to the Petitioners’ appraiser’s income analysis. Moreover, the Board notes that the Respondent’s appraisermade no attempt to value the property for the March 1, 2010, assessmentdate. The Respondent’s witness, Ms. Beckman,provided an “income approach analysis” for the 2009 and 2010 assessment years. In her analysis, Ms. Beckman argued that shedisagreed with Mr. Korpacz’s value conclusions for 2009 and 2010 primarilybecause of the gross lease assumption and the high capitalization rates Mr.Korpacz used. Despite her arguments,however, Ms. Beckman used the same capitalization rate as Mr. Korpacz; she justdid not add the effective tax rate. Ms.Beckman contends it was not necessary to add the tax rate because she accountedfor the reimbursement of the taxes. However, even considering the leases in place during the relevant timeperiod, the taxes were not reimbursed 100% for any assessment year. Forexample, in 2008 the property’s income and expense statement shows an actualreal estate tax expense of $1,646,554,but a reimbursement of only $446,548.
Further, while Ms. Beckman’s analysis may not differsignificantly from the calculations made by a certified appraiser in anappraisal report, the appraiser’s assumptions are backed by his education,training, and experience. The appraiseralso typically certifies that he complied with the uniform standards ofprofessional appraisal practice. Thus,the Board, as the trier-of-fact, can infer that the appraiser used objectivedata, where available, to quantify his adjustments. And where objective data was not available,the Board can infer that the appraiser relied on his education, training andexperience to estimate a reliable quantification. Here, however, there is no evidence that Ms.Beckman is a certified appraiser; she did not establish that she has anyparticular expertise in applying generally accepted appraisal principles; andshe did not certify that she complied with USPAP in performing her valuationanalysis. Consequently, the Board places greater weight upon Mr. Korpacz’stestimony and analysis as to this issue.
http://www.in.gov/ibtr/files/Washington_Square_Mall_49-700-06-1-4-01861_et_al_-_REDACTED_VERSION.pdf
Here, Mr. Korpacz developed specific values for the subjectproperty for each assessment year under appeal. His sales comparison analysis was based on timely sales of regional mallsdeemed comparable to the subject property that were qualitatively adjusted toWashington determine the likely sale price in terms of a price per square footfor the Washington Square Mall. Mr.Korpacz further refined his sales comparable values by graphing each property’ssale price with its net operating income per square foot of gross leasablearea. And despite the fact that Mr.Korpacz rejected the value he determined for 2008 and regraphed the data usingonly Class D malls, the Board finds this to be a reasonable method fordetermining the value of the mall.
Conversely, Mr. Stump used sales of retail properties thatwere not regional malls. Mr. Stump used grocery store-anchored retail centersand community centers that are not comparable to enclosed regional malls andfailed to make any adjustments for differences in the properties. Further, Mr.Stump did not determine a specific value for any year but simply contends thatthe range of values from the five sales from 2005 through 2008 supports hisincome approach to value for each year. Thus, the Board gives little weight to the Respondent’s sales comparisonapproach.
The income approach analysis, however, is more difficult. The Petitioners’ appraiser usedcapitalization rates that were not supported by his evidence and he made incomeand expense assumptions that seemed designed to value the property at thelowest possible rate.
The Respondent’sappraiser, however, made no attempt to account for the prevalence of long termleases at rents that no longer represented the market rate at the property. In addition, the Respondent’s approach reliedupon the sale of properties that were not comparable to the subject property todevelop a capitalization rate. Because of the lengthy and detailed explanationsthat Mr. Korpacz provided for each of his assumptions and the lack ofexplanation that Mr. Stump gave for his analysis, the Board therefore givesmore weight to the Petitioners’ appraiser’s income analysis. Moreover, the Board notes that the Respondent’s appraisermade no attempt to value the property for the March 1, 2010, assessmentdate. The Respondent’s witness, Ms. Beckman,provided an “income approach analysis” for the 2009 and 2010 assessment years. In her analysis, Ms. Beckman argued that shedisagreed with Mr. Korpacz’s value conclusions for 2009 and 2010 primarilybecause of the gross lease assumption and the high capitalization rates Mr.Korpacz used. Despite her arguments,however, Ms. Beckman used the same capitalization rate as Mr. Korpacz; she justdid not add the effective tax rate. Ms.Beckman contends it was not necessary to add the tax rate because she accountedfor the reimbursement of the taxes. However, even considering the leases in place during the relevant timeperiod, the taxes were not reimbursed 100% for any assessment year. Forexample, in 2008 the property’s income and expense statement shows an actualreal estate tax expense of $1,646,554,but a reimbursement of only $446,548.
Further, while Ms. Beckman’s analysis may not differsignificantly from the calculations made by a certified appraiser in anappraisal report, the appraiser’s assumptions are backed by his education,training, and experience. The appraiseralso typically certifies that he complied with the uniform standards ofprofessional appraisal practice. Thus,the Board, as the trier-of-fact, can infer that the appraiser used objectivedata, where available, to quantify his adjustments. And where objective data was not available,the Board can infer that the appraiser relied on his education, training andexperience to estimate a reliable quantification. Here, however, there is no evidence that Ms.Beckman is a certified appraiser; she did not establish that she has anyparticular expertise in applying generally accepted appraisal principles; andshe did not certify that she complied with USPAP in performing her valuationanalysis. Consequently, the Board places greater weight upon Mr. Korpacz’stestimony and analysis as to this issue.
http://www.in.gov/ibtr/files/Washington_Square_Mall_49-700-06-1-4-01861_et_al_-_REDACTED_VERSION.pdf
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