2009 Taxes

Millions In Cayman Islands Investment Funds For Romney

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Republican presidential candidate Mitt Romney has disclosed that he has millions of dollars worth of investment funds set up in the Caribbean tax haven of the Cayman Islands. Romney, who has an estimated personal wealth of $250 million, has been paying a much lower tax percentage than most U.S. citizens: approximately 15% of his yearly income. He has previously kept his tax returns private, but financial transparency is now an expectation of presidential candidates.

Romney has a minimum of twelve investment funds containing as much as $8 million which are listed on the registry of the Cayman Islands, together with another investment on the securities records which he says has a worth of between five and twenty five million dollars which is also housed in the Caymans. Offshore banking and taxation authority, Washington lawyer Jack Blum has stated that Romney’s finances are an illustration of the faults of the tax system in the United States, calling them, “a poster child”.

However, Romney campaign officials insist that he follows full U.S. tax legislation and that wherever the investment funds were based he would still be paying the same amount. They maintain that the major reason for locating the investment funds offshore in the Cayman Islands was to attract foreign investors who would pay less tax, but that Romney himself has paid full U.S. taxes on the income that he received from the investment funds.

Rebecca J. Wilkins who is an expert on tax policy said that there is an estimated loss to the treasury of $100 billion each year as a result of investment funds situated in tax havens. However, she also added that the setting up of such offshore investment funds was neither illegal nor improper.

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Taxes 2012, Santorum, Part Of The Solution Or Part Of The Problem

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The Republican candidate Rick Santorum has a tax plan that would cut taxes, for Americans, but increase the budget deficit by nine-hundred billion in a year. This was reflected in a recent study. The more the deficit increases, the less the American dollars is worth. His plan is a short term fix, with no long term benefits.

The taxes 2012 Santorum plan would create a substantial tax cut of approximately seven-thousand and eight-hundred dollars for about sixty-nine percent of Americans. The problem with his proposal is that the households, which would benefit the most, are the richest ones in the country. Individuals, who make more than one-million a year, might receive a tax cut package of approximately four-hundred and forty-two, thousand dollars. Most households with an income of fifty-thousand to seventy-five thousand would receive about two-thousand and sixty-two dollars.

Santorum’s tax cuts are extremely beneficial to corporations, by cutting their taxes in half. Corporation that now pay thirty-five percent in taxes, would only pay around seventeen percent. The wealthy would get a lower tax rate on their investment income from fifteen percent to twelve percent. He would get rid of the marriage tax penalties and increase aid for dependent children. Single parent families would conversely receive tax increases. However, none of these tax changes would be fully established until 1215.

Rick Santorum’s budget will increase the deficit, benefit corporations, and the wealthy. It is time to stop writing checks on an empty account. The last thing this country needs is another short-sighted economic agenda.

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Putting Off Doing Your Taxes

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This year many people will once again put off doing their taxes until the proverbial last minute. Many will apply for an automatic extension and file on October 15. Although tax day is normally on April 15, the District of Columbia’s “Emancipation Day” automatically moves the date to April 17. Since this year is also a leap year, that gives us an extra day as well.

While it may tempting with all this extra time to keep putting it off, the best thing to do would be to get started gathering all the forms and paperwork you will need in order to file, including W2′s, 1099′s, K-1′s, and anything else that may be required.

Of course, tax filers are not the only ones who may procrastinate when it comes to tax matters. Last year, not only was tax day on April 18 due to Emancipation Day, but the federal government also gave almost 50 million Americans even longer to file due to a legislative mess created by the last minute enactment of the 2010 Tax Relief Act. It appears that the forms required by the act weren’t quite ready at the time. The IRS Commissioner was not pleased at all and made sure to inform Congress of the headache this caused the IRS.

Nonetheless, federal government incompetence is no excuse for us to put off preparing our tax returns, leap year or not. The sooner you send your return in the sooner you will get any refund you may be owed. In these economic times, who can’t use a little extra money?

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The IRS is Making Immense High-Tech Strides

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Electronic Filing Services Are Taxpayers’ First Choice!

This tax season, the IRS has devised a plethora of useful virtual features to facilitate the taxpaying process greatly.  Tara Lynn Wagner of NY1 reports as follows:

“Once again, it’s that time of year when people’s thoughts turn toward taxes. The good news is that help has arrived for all those persistent procrastinators, however.

In 2012, taxes will not be officially overdue until after April 17 – two days later than the traditional filing deadline. This is per IRS spokeswoman Dianne Besunder.

Ms. Besunder further advised that prompt filing yields correspondingly faster refund receipt – especially for electronic filers.  According to Besunder, a whopping 79 percent of US taxpayers filed via electronic means last tax season.

Using electronic filing services also offers taxpayers the advantage of enhanced accuracy in addition to much speedier returns. Besunder stated that overall error incidence of e-filed returns is only one percent – as opposed to traditional paper-based filings’ cumulative inaccuracies of 20 percent.

The best news is that  taxpayers whose gross annual income falls below $57,000 may utilize IRS electronic filing software for free. Registration via the official IRS website at IRS.gov is the only requirement.

Virtual Service (“VS”) is an innovative IRS pilot program that is currently in the beta testing phase. VS permits taxpayers to talk with IRS reps via video conferencing from 10 major IRS locations throughout the US.

For further details about VS, various IRS YouTube videos, and social media networking resources, call 1-800-829-1040 or visit IRS.gov.

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Top 10 Tax Tips for 2012

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Tax filing season has started and the documents you need should be in the mailbox soon. While the return is not due until April 17 this year, here are 10 tax tips to ensure you are ready to file.

1. Start gathering records now. This includes receipts, canceled checks and other supporting documents.

2. Watch for W-2s and 1099s. You will need them.

3. For answers to questions, look at the IRS website.

4. Use Free File. If your income was $57,000 or less you qualify for free file. You must access this service trough www.irs.gov. The IRS has collaborated with many companies that offer software to make all the calculations and file your taxes at no cost. There are also online forms that look like the standard forms that can be completed and filed online.

5. Use IRS e-file. This is a safe and easy way to file your return. It was used by 106 million people last year and is now require of many tax preparers. If you owe money, you can pay immediately or by the deadline. If you are due a refund, it can be directly deposited to you ban within 10-14 days.

6. Consider all options. Prepare it yourself or have a preparer file it for you.

7. Use direct deposit. It will save several weeks over the time to send a paper check.

8. Find all you need at the website www.irs.gov. Publications, forms and tips are all available.

9. Read IRS Publication 17. This comprehensive resource highlights all you need to know to file a return.

10. Take time to review. Do not rush. A mistake will slow down your return’s processing. Ensure all SSNs and math are correct. If you need help, ask. There are volunteer sites as well as help through www.irs.gov for all your tax questions and tax tips.

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Tax Carnival Ecstasy – November 22, 2011

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Welcome to the November 22, 2011 edition of Tax Carnival Ecstasy. In this issue we have 19 great tax and finance related articles from some very good blogs. Emily Everet starts off the carnival with an explanation of How Your Company Benefits Are Taxed. SteveR has information on Home Energy Tax Credits that you can receive from the purchase of new appliances. We have an explanation of How To Claim Disability Living Allowance from Jay Speaks. And finally, Mark Roberts takes a look at the Standard Deduction for 2011. Hope you enjoy the articles, bookmark, share, tweet, like on Facebook and come back again.

Adriana Roux presents Occupy Movement Reclaims Foreclosed Homes in Oakland posted at Bankruptcy Attorney NJ RSS Feed, saying, “Occupy Wall Street has swept the globe gaining strength in various major cities across the world. In particular, Occupy has ignited strongly on the West Coast where Oakland protestors are expanding their occupancy to foreclosed homes in the northern part of California.”

 

credits

Emily Everet presents How Your Company Benefits Are Taxed posted at P11d, saying, “If you receive benefits or gifts from your company they will usually need to be taxed. This post outlines what you need to know and how much you will be taxed.”

SteveR presents Home Energy Tax Credits: Save Money With Energy Efficient Appliances posted at 2011 Tax, saying, “Homeowners know that energy bills comprise a hefty chunk of monthly bills, and have recently been getting even higher.”

deductions

Jay Speaks presents How To Claim Disability Living Allowance posted at Disability Living Allowance, saying, “This weeks post outlines how to claim disability living allowance, either online or by telephone.”

SteveR presents Top Ten Most Overlooked Tax Deductions posted at 2009 Taxes, saying, “Each year the Internal Revenue Service (IRS) reports the most common tax deductions taxpayers forget about when submitting their income tax return.”

filing

Mark Roberts presents Explaining the Standard Deduction posted at Tax Brackets, saying, “Your standard deduction reduces the amount of your income that is taxed. This blog post explains the standard deduction, how much it is and when you can’t claim.”

retirement

Jason P. presents Money 101: What is Compound Interest? posted at One Money Design, saying, “I’m always amazed to read a good overview of how compound interest works. Hopefully, some parents will use this as a resource to teach their children this wonderful financial principle.”

SteveR presents Using Your 401k to Start a Business posted at 2009 Tax, saying, “Starting your own business allows you flexibility and control of your financial future.”

SteveR presents When is Borrowing from Your 401k a Good Idea? posted at 2009 Taxes, saying, “While many financial experts claim you should avoid borrowing from your 401k as much as possible, it may be your only financial life line in certain situations.”

Martha Stewart presents 15 Incredible Businessmen Who Refused to Retire posted at onlinemba.com, saying, “For many who reach the top echelons of business, retirement is a time to enjoy the spoils of a life well lived and years of hard work and perseverance. Others, however, take a different approach.”

taxes

Linda Rodriguez presents Your Rights Under the Fair Credit Reporting Act posted at Credit Cards for Fair Credit, saying, “You may now be wondering exactly what your rights are under this act. Your information is being sold, and you should know exactly what you can do to prevent damage to your credit and future as well as fix any current credit problems.”

Maria Clark presents Credit Card Debt or Emotional Roller Coaster? posted at Credit Cards for Bad Credit Resource, saying, “Most of the information you will find online about credit card debt covers the financial struggles you will face. However, there are very few resources to help those with credit card debt handle the situation emotionally.”

Linda Rodriguez presents What is the difference between fair credit and poor credit? posted at Credit Cards for Fair Credit, saying, “The difference between fair and poor credit is significant, but is frequently determined by each individual lender.”

Dorothy presents Credit Card Clauses to Avoid posted at Secured Credit Cards, saying, “When you are looking for a credit card, it can be easy to try and find the offer with the lowest interest rate, no annual fees, and the best rewards. However, there is much more to credit cards than the benefits you see initially.”

Gemma Flannery presents 3 Things You Should Know About Emergency Tax Codes posted at Tax Codes, saying, “You may be put on an emergency tax code if your employer doesn’t know which tax code to place you on. This blog posts highlight 3 things you should know about the emergency tax code.”

tips

SteveR presents Will Obamas New Lifeline Catch Any Fish? posted at FastSwings, saying, “We all know that many homeowners have lost their homes to foreclosure in recent years and many more are unable to afford their mortgage payments.”

Deborah Brown presents 3 Clauses to Be Aware of in Personal Loans posted at First Credit Card, saying, “Most banks use early repayment penalties in order to discourage borrowers from paying off their debts early. This is because the longer a borrower takes to pay off their debt, the more money they will have to pay the bank in interest.”

SteveR presents Reasons to Use a Demo Account posted at Forex Trading System Central, saying, “When it comes to trading Forex it is important that you have significant experience and practice, which can best be attained through using a demo account.”

Amy Gardner presents 3 Real-Life Stories of People Crushed By Payday Loan Debt posted at Disaster Strikes, saying, “There are thousands of stories online about people who have struggled with payday lending. Some accounts are worse than others, but their personal experiences always seem to have similar results; they all end up in a worse position than they were before their payday loan.”

That concludes this edition. Submit your blog article to the next edition of tax carnival ecstasy using our carnival submission form. Past posts and future hosts can be found on our blog carnival index page.

 


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