The IRS Has Trouble Tracking Paid Preparers: This article taken from the Financial Planning magazine highlights a huge problem in the tax preparer industry. Just who is it that you’ve chosen to prepare your taxes? In many cases the IRS does’nt know. Who’s responsible for mistakes on your tax return? You are… so it’s important to trust your preparer.
One way in which the IRS tracks preparers is by their PTIN (Preparer Tax ID Number), this number is not a Social Security Number and is given only by the IRS, it always begins with “P”. Look at the identifying number of your preparer and make sure that instead of a Social Security Number you find a PTIN. It indicates that at the very least the IRS knows who they are.
If you’re not in this industry, then you probably are not following (or all that interested) in the buzz surrounding the IRS’ efforts to regulate preparers. I look at it as a great move for this industry. It will weed out many ‘fly by nights.’ In the meantime however, make you have someone you can trust. Keep ‘em honest, and you’ll never have to worry about the IRS.
In a very timely fasion Congress approved an increase for the Cash for Clunkers program. This will allow folks more opportunity to trade-in their old clunkers and get something much more fuel efficient.
The demand for new cars seems to be very good for the economy. The car companies are either increasing production or planning to increase production to meet new demand (Ford to boose production of Focus, Escape). The dealers on the other hand are not quite as happy. Recent reports show that Dealers still waiting for subsidy payments for ‘clunkers’. But in the end they will get paid.
This program has been so successful, at least initially, that its being floated that similar programs may be enacted by Congress.
Do you have any questions about the Cash For Clunkers program? If so, feel free to leave a comment.
With the economy recovering, people are starting to have hope. For the first time in over a year, the unemployment rate DIPPED to 9.4%. What does that mean? It means that in July, 247,000 jobs were lost. It sounds terrible, but considering that in June, 443,000 people lost their jobs, this is a huge step in the right direction.
Sure that’s easy to say when you have a job, but if you’re one of the 247,000 or one of the 6.7 MILLION whose lost their job this is little consolation. Here’s just a little hope for those who have lost their job. The American Recovery and Reinvestment Act, signed into law by President Obama has provided tax-free benefits for the first $2,400 of unemployment (normally, all unemployment benefits are taxable). The point is, that everyone is struggling, so the government is working to put programs into place to help. But in the end, until the economy gets back to normal, we can only hold on to the glimmers of hope.
What do you think? Do you see the light at the end of the tunnel? What more can be done to help struggling workers?
Business owners have a great advantage in that if they can associate general expenses to a business purpose they may have tax deductions that are available to them. Do you plan on taking a vacation this summer? If so, perhaps you can incorporate some business in your trip. If so, the portion of the trip that pertains to business may be deductible.
However, it’s important to make sure that everything you do is legal. Document your business portion of the trip and take no more than the appropriate deductions. Here’s a nice (and acceptable example): You fly to a different state for a vacation, but on the vacation you attend a couple of seminars. A portion of your trip (flight, lodging) may be deductible. See IRS publication 463 for more details. (http://www.irs.gov/pub/irs-pdf/p463.pdf).
MCA Certified Tax Preparers
Tuxedo Square
Teaneck, NJ 07666
201-837-6066
marc_adams@mcataxprep.com
MCA Certified Tax Preparers has been helping individuals and small business in and around Bergen County to reduce taxes, increase profits and control cashflow since 2002. We believe that knowledge is power and we hope that this blog will empower you. We offer Tax Coaching for inviduals and especially for business owners, and of course tax preparation is our specialty. We have many other business services and we offer various tax and bookkeeping seminars. Check out our website to learn more http://www.mcataxprep.com
No doubt you’ve heard about the Cash For Clunkers Campaign. But what exactly is Cash for Clunkers? Put simply, it is a government backed program that offers an incentive for trading your old fuel inefficient cars. You can get up to $4500 back from the Government if you trade in your car and get a newer fuel efficient car.
Will the program work? Well there was $1 billion set aside for the program that was to last until November 2009. THE MONEY’S ALREADY GONE! In less than one week the entire billion dollar budget was projected to be used. Congress is trying to approve a couple billion more dollars.
What happens to the old cars? They’re scrapped. Junk yards therefore get the car and can sell the parts. The engine itself is destroyed. The dealer is responsible for pouring what’s known as liquid glass into the engine, which in effect destroys it.
It seems like a win-win for everyone. What do you think? Post your thoughts and comments on the Cash For Clunkers campaign.