Creative Tax

Affiliate Marketing Secrets

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One of the easiest and fastest way to make money online in through affiliate marketing. This is when you send visitors to someone else’s product sales page, they make the sale and deliver the product, and you get a percentage of the sale price as you commission (usually 50% or more for digital products). The benefits of this are You can get started almost immediately because you don’t have to create a product, write the sales page, design the website, develop marketing materials, or set up the ordering, billing & delivery system. You have almost no investment of time because […]

BIG BROTHER Is Watching You and His name is IRS

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Spying on the public has risen to new heights. We have GPS tracking systems that make it possible for anyone to be located anywhere on the planet. We have RFID’s (Radio Frequency Identifiers) which are small radio transmitters that allow smart cards and smart chips to broadcast information to a particular type of reader. I July Wal-Mart started using this technology in its stores. But as scary as this technology is nothing is more frightening than a technology that forces individuals  to spy on each other. The IRS has been a major pioneer in this technology and today it is […]

“HOW TO START A BUSINESS IN FIVE STEPS”

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When starting a new business, there are many important decisions to make and many rules and procedures that must be addressed. While there is no single source for all filing requirements, the following steps have been developed to assist you in starting your business. Step 1 It is helpful to begin with a business plan.  A business plan is a blueprint of every aspect of your business.  Sales, Marketing, Advertising, Promotion and Location are just some of the categories to consider when creating a plan.  Step 2 Decide on a location for the business. Make sure you check contracts for […]

Substantiating Charitable Contributions

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Many charitable organizations described in section 501(c)(3), other than testing for public safety organizations, are eligible to receive tax-deductible contributions in accordance with section 170. Most eligible organizations are listed in Publication 78, Cumulative List of Organizations described in Section 170(c) of the Internal Revenue Code of 1986.  A charitable organization must provide a written disclosure statement to donors of a quid pro quo contribution in excess of $75. A quid pro quo contribution is a payment made to a charity by a donor partly as a contribution and partly for goods or services provided to the donor by the […]

Whewww!!! Tax Season Was Rough

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I’m so glad the peak filing season is over!! Some many changes with the IRS that is sometimes overwhelming with keeping up with new laws. In the next few days I will be posting infomation about the new IRS. Boy!! I will tell you that BIG BROTHER is watching you and his name is IRS. You be amazed at how the Obama health care plan has increased the powers of the IRS. Make sure everyone reads my next fews blogs because this is vital information. Yvette

The IRS Dirty Dozen

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Every year The Internal Revenue Service issues its top scams, frauds and schemes which are called the IRS Dirty Dozen. make sure you rtead this report

“Taxpayers should be wary of anyone peddling scams that seem too good to be true,” IRS Commissioner Doug Shulman said. “The IRS fights fraud by pursuing taxpayers who hide income abroad and by ensuring taxpayers get competent, ethical service from qualified professionals at home in the U.S.”

Tax schemes are illegal and can lead to imprisonment and fines for both scam artists and taxpayers. Taxpayers pulled into these schemes must repay unpaid taxes plus interest and penalties. The IRS pursues and shuts down promoters of these and numerous other scams.

The IRS urges taxpayers to avoid these common schemes:

1. Return Preparer Fraud

Dishonest return preparers can cause trouble for taxpayers who fall victim to their ploys. Such preparers derive financial gain by skimming a portion of their clients’ refunds, charging inflated fees for return preparation services and attracting new clients by promising refunds that are too good to be true. Taxpayers should choose carefully when hiring a tax preparer. Federal courts have issued injunctions ordering hundreds of individuals to cease preparing returns and promoting fraud, and the Department of Justice has filed complaints against dozens of others, which are pending in court.

To increase confidence in the tax system and improve compliance with the tax law, the IRS is implementing a number of steps for future filing seasons. These include a requirement that all paid tax return preparers register with the IRS and obtain a preparer tax identification number (PTIN), as well as both competency tests and ongoing continuing professional education for all paid tax return preparers except attorneys, certified public accountants (CPAs) and enrolled agents.

Setting higher standards for the tax preparer community will significantly enhance protections and services for taxpayers, increase confidence in the tax system and result in greater compliance with tax laws over the long term. Other measures the IRS anticipates taking are highlighted in the IRS Return Preparer Review issued in December 2009.

2. Hiding Income Offshore

The IRS aggressively pursues taxpayers involved in abusive offshore transactions as well as the promoters, professionals and others who facilitate or enable these schemes. Taxpayers have tried to avoid or evade U.S. income tax by hiding income in offshore banks, brokerage accounts or through the use of nominee entities. Taxpayers also evade taxes by using offshore debit cards, credit cards, wire transfers, foreign trusts, employee-leasing schemes, private annuities or insurance plans.

IRS agents continue to develop their investigations of these offshore tax avoidance transactions using information gained from over 14,700 voluntary disclosures received last year. While special civil-penalty provisions for those with undisclosed offshore accounts expired in 2009, the IRS continues to urge taxpayers with offshore accounts or entities to voluntarily come forward and resolve their tax matters. By making a voluntary disclosure, taxpayers may mitigate their risk of criminal prosecution.

3. Phishing

Phishing is a tactic used by scam artists to trick unsuspecting victims into revealing personal or financial information online. IRS impersonation schemes flourish during the filing season and can take the form of e-mails, tweets or phony Web sites. Scammers may also use phones and faxes to reach their victims.

Scam artists will try to mislead consumers by telling them they are entitled to a tax refund from the IRS and that they must reveal personal information to claim it. Criminals use the information they get to steal the victim’s identity, access bank accounts, run up credit card charges or apply for loans in the victim’s name.

Taxpayers who receive suspicious e-mails claiming to come from the IRS should not open any attachments or click on any of the links in the e-mail. Suspicious e-mails claiming to be from the IRS or Web addresses that do not begin with http://www.irs.gov should be forwarded to the IRS mailbox: phishing@irs.gov.

4. Filing False or Misleading Forms

The IRS is seeing various instances where scam artists file false or misleading returns to claim refunds that they are not entitled to. Under the scheme, taxpayers fabricate an information return and falsely claim the corresponding amount as withholding as a way to seek a tax refund. Phony information returns, such as a Form 1099 Original Issue Discount (OID), claiming false withholding credits usually are used to legitimize erroneous refund claims. One version of the scheme is based on a false theory that the federal government maintains secret accounts for its citizens, and that taxpayers can gain access to funds in those accounts by issuing 1099-OID forms to their creditors, including the IRS.

5. Nontaxable Social Security Benefits with Exaggerated Withholding Credit

The IRS has identified returns where taxpayers report nontaxable Social Security Benefits with excessive withholding. This tactic results in no income reported to the IRS on the tax return. Often both the withholding amount and the reported income are incorrect. Taxpayers should avoid making these mistakes. Filings of this type of return may result in a $5,000 penalty.

6. Abuse of Charitable Organizations and Deductions

The IRS continues to observe the misuse of tax-exempt organizations. Abuse includes arrangements to improperly shield income or assets from taxation and attempts by donors to maintain control over donated assets or income from donated property. The IRS also continues to investigate various schemes involving the donation of non-cash assets including situations where several organizations claim the full value for both the receipt and distribution of the same non-cash contribution.

Home Based Business Tax Advantages

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You already know how wonderful it can be to work from home, but do you realize how many home based business tax advantages exist? Here in the United States, many people operate home based businesses just to take advantage of the numerous tax deductions. Claiming the use of your home in your business can give you some hefty deductions on your tax return. A Word of Caution As with anything tax-related, you must meet certain requirements determined by the Internal Revenue Service.  However, if you use one room or part of a room specifically for your business, you can receive […]

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