Archive for July 31, 2014

Take It Off!

I had put it on some time ago. I kept it on everywhere I had a presence. I was submissive and had a desire to be obedient. The ramifications of not doing as the master said weren’t nearly as pleasurable as complying with my master’s commands.

Having become a creature of habit, and not wanting to displease my master, I had put it on everywhere. Having quite the presence online, I had it on in lots of places. You could see on me in my blog posts, my web page, my social media posts. Everywhere I was, I had it on.

Now, after months of making sure I’d covered my a**, I’m told to TAKE IT OFF!

Yep. In a webinar presented by the Office of Professional Responsibility, Karen Hawkins Read More

Written by | Posted in IRS • Tax Policy

Taxpayers Rights When Audited By Tax Authorities In South Africa (Chapter 5 – 5.4)

Posted in sections, this is my Doctoral Thesis on taxpayers rights when audited by the tax authorities in South Africa – equally applicable to many English-based law systems in Africa and abroad (eg. India). This will be of particular use to any tax practitioners doing work in Africa and in other English-based legal systems around the world.

Analysis of Challenging The Commissioner’s Discretionary Powers In Auditing Taxpayers under The Constitution of The Republic of South Africa

CHAPTER 5 – JUDICIAL REVIEW WITH REFERENCE TO SS 74A AND 74B –

5.4 REVIEW APPLICATION DIRECTLY TO THE TAX COURT Read More

Written by | Posted in Africa • Audit

Cancellation of Debt, Foreclosures, And Bankruptcy – Part 8

Bankruptcy and CODI

All bankruptcy falls under USC Title 11. There is also a bankruptcy Chapter 11. This similarity causes a lot of confusion. Since we are mainly dealing with personal tax returns, we will not deal with the Chapter 11 bankruptcy in this course. We will be talking about Chapter 7 and Chapter 13 of the Title 11 Code.

Chapter 7

Chapter 7 is the “discharge” chapter. In a Chapter 7 bankruptcy all included debts are theoretically discharged. If there are assets secured by those debts the assets are usually forfeit. The Deemed Sales and CODI rules apply in those cases. Read More

Written by | Posted in Individual

Two Days Left – Buy One Year TaxConnections Membership Get Second Year Free!

With millions of site visitors coming to TaxConnections this year, we are driving to meet the demands of our visitors who come to find a wide range of tax expertise around the world. This is the last two days this SPECIAL LIMITED OFFER will be available and your last opportunity to save $199.95.

When you register for a one year membership before midnight July 31st, you will receive the second year free. This offer is not available August 1st.

Tax professional members benefit by being in front of millions of people who can connect with them on TaxConnections. We are not like other sites that block people from seeing you unless they pay for the connection. You see, TaxConnections members join to control Read More

Written by | Posted in TaxConnections

Cancellation of Debt, Foreclosures, And Bankruptcy – Part 7

Alternatives to Foreclosure

Foreclosures are usually a last resort for both the lender and for the debtor. There are many alternatives to foreclosure, some still require the debtor to give up the property but most allow the debtor to keep possession of their property and make alternate payment arrangements.

Mortgage Modifications: This is normally a type of refinance under better terms then the current mortgage. It will lower the interest rate and extend the life of the loan. This results in a smaller monthly payment. The debtor keeps the home.

Forbearance: This is the lender allowing the debtor to miss one or a series of payments Read More

Written by | Posted in Individual

Should Gas Stations Fight Two-Tiered Pricing?

Have you ever wondered why gas stations often advertise two different prices on their sign? If you have not, then start looking and you will notice most stations advertise one price for cash (or company specific credit cards, such as Mobil, Shell, Chevron, etc.) and another for credit. The $0.10 difference, known as two-tiered pricing, is an attempt by station owners to recover steep credit card fees by incentivizing customers to use cash.

Over the past few years, many customers have expressed frustrations towards the station owners by being lured into a gas station for a lower price only to find a higher price at the pump when using their credit card. In response to public outcry, many counties enacted ordinances that require stations to list the highest price on their signs. For example, in Broward County, there is an ordinance on the books that requires gas stations to Read More

Written by | Posted in Individual • State And Local Tax (SALT)

Taxpayers Rights When Audited By Tax Authorities In South Africa (Chapter 5 – 5.3)

Posted in sections, this is my Doctoral Thesis on taxpayers rights when audited by the tax authorities in South Africa – equally applicable to many English-based law systems in Africa and abroad (eg. India). This will be of particular use to any tax practitioners doing work in Africa and in other English-based legal systems around the world.

Analysis of Challenging The Commissioner’s Discretionary Powers In Auditing Taxpayers under The Constitution of The Republic of South Africa

CHAPTER 5 – JUDICIAL REVIEW WITH REFERENCE TO SS 74A AND 74B –

5.3 THE APPLICABILITY OF OBJECTION AND APPEAL Read More

Written by | Posted in Africa • Audit

What Should I Do If I Have Received A “Declaration of Consent” Form From My Swiss Bank?

Picture this. You have an offshore account with a Swiss Bank that, for whatever reason, you haven’t gotten around to reporting on your U.S. tax return or on a FBAR. One morning, as you are sipping your coffee and checking your email inbox, you come across an ominous email from your Swiss Bank.

The subject line of the email immediately grabs your attention. It reads: “Important Information for U.S. Persons.”

You open up the email and read the first three paragraphs:

“We have identified you as the beneficial owner of an account that is subject to FATCA. Participating foreign financial institutions such as ours are required to identify and report Read More

Written by | Posted in FATCA • FBAR • International • IRS

Calculating The Foreign Tax Credit In 3 Easy Steps

The U.S. taxes U.S. persons on all of their income, regardless of its source. This creates a double taxation problem with respect to a U.S. person’s foreign-source income, since foreign countries usually tax all the income earned within their borders, including that derived by U.S. persons.

If the U.S. did nothing to mitigate international double taxation, U.S. companies would be at a competitive disadvantage in overseas markets, since their total tax rate would exceed that of their foreign competitors by the amount of the U.S. tax burden on foreign-source income.

The U.S. mitigates international double taxation by allowing U.S. persons a credit for any Read More

Written by | Posted in International

Basic Steps To Avoid Probate

As many of you know that follow this blog my father recently passed away and I’ve been called upon to settle his financial affairs. My biggest fear is probate and after studying the tax code I have grown to be of the opinion that it is best to be avoided when possible. This short post on the basics of how to avoid probate was meant to help codify my thoughts. Hopefully you find it helpful.

Probate is essentially the legal process of transferring assets you own at your death to your heirs. It can last up to two years in some states, and involve court costs, attorneys’ and executors’ fees often fixed as a percentage of the assets probated (attorneys can be vultures), as well as unwanted publicity (mainstream media is evil). Read More

Written by | Posted in Individual • IRS

IRS Now Makes Transcripts Available Online

Have you ever needed a copy of a past tax return and contacted the IRS to get one? In the past, you had two options. You could mail or fax Form 4506 and expect to get a copy in “up to 75 days.” Oh, and you must pay $50 for each return requested.

The second option was to request a transcript of your return on Form 4506-T. A transcript just shows the line items on your return somewhat similar to the long-defunct 1040-PC. These are free and are normally received 5-10 days after the IRS receives the request. A transcript request may be faxed or the taxpayer may call 800 908-9946 to request one. These can also be requested online at http://www.irs.gov/Individuals/Get-Transcript.

However, the IRS now has a new, faster method of receiving a transcript. If you go to Read More

Written by | Posted in Individual • IRS
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