Millions In Cayman Islands Investment Funds For Romney

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.

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

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 … Read the rest

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.

Putting Off Doing Your Taxes

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?

The IRS is Making Immense High-Tech Strides

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.

Top 10 Tax Tips for the Year

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.