Thompson & McCarty, P.C. CPA - Biggest, Fastest, Refund Allowed and a PEACE OF MIND accuracy guarantee!

Another Stimulus Payment For The Taxpayers

2008-10-30T06:07:19Z

A second stimulus payment is being discussed heavily among our elected officials these days. It is said that the Democrats are in a hurry to get something passed. It makes no difference if it is a (D) or an (R) to me. I just want to get paid quick, fast, and in a hurry! LOL No details have been released to my knowledge so allow me to suggest that they just send every man women and child 1 million dollars. I suddenly feel like Austin Powers. I mean if up to $600 per taxpayer and $300 per child is a good idea, then 1 million must be at least 1666 times better, right? And hey, if 1 million is wise then why not 2 million. We will all have plenty of cold hard cash to do anything we want.

Sarbanes-Oxley Just Another Bad Deal For America

2008-10-30T05:40:07Z

I have complained about the Sarbanes-Oxley act of 2002 (SOX) since it was proposed. For details and background of SOX go here. My opinion of SOX is very simple. The cases (Enron, Tyco International, Adelphia, Peregrine Systems and WorldCom) that gave rise to SOX all involved misrepresentation of fact and illegal acts at the very highest levels of management. SOX did very little to change anything that was at the root cause of these cases. The number one substantive change that came out of SOX was the power grab for regulation of the accounting profession by the government via the SEC. The SEC appoints the 5 board members of the PCAOB. Any disputes with PCAOB can be carried to the SEC for review and potential reversal. The second was the implementation of additional internal controls at all SEC companies. Internal controls are designed to assure that transactions are fully and properly recorded and that assets are protected. They must by design be overridden by management from time to time. Since management was at the root of the cases above, it follows that additional internal controls are useless against this type of behavior. The implementation of SOX is now referred to as the “Golden Age” of accounting due to the fees generated by accounting firms to fully implement SOX at SEC companies.

Bankers Oppose Mark To Market Accounting Regulations

2008-10-30T05:36:24Z

Recently a friend asked me about mark to market accounting regulations and what they meant. I told him that basically it means that companies that have investments in financial instruments must disclose the value of those instruments at market value. This is a major change in American GAAP and is primarily being driven by the desire to make American Financial Statements comparable to the rest of the worlds. There is a strong argument that this will also provide more transparency to the Financial Statements but that argument is better left to another discussion. The bottom line is that it makes it easier to participate in world trade which is highly desirable in today's economy.

NOW LOOK WHAT THE FED WANTS TO DO

2008-10-09T04:51:08Z

Since the first government intervention ($700 Billion) is looking like a complete failure now those that said we had to do it are considering a new strategy. Yup, more government intervention is just what we need. NOT! I posted a new article today about the $700 billion already approved and what I think is next. Then in my daily reading I ran across this article suggesting that the Fed is going to get even more involved. Well I did warn you that the $700 billion was the beginning.

THE FINANCIAL CRISIS AND THE $700 BILLION BAIL OUT (THE BEGGINNING)

2008-10-09T04:54:31Z

I have had many people ask me what I think on the issue of the $700 Billion U.S. Federal Government bail out. My answer was and is that this is a bad idea and the “plan” stinks. As my heading implies I think the $700 billion is just the beginning and we are already hearing that more is needed. If $700 billion isn't enough perhaps we should should give $200 trillion or whatever other absurd number the politicians can come up with.

BEWARE THE IRS

2008-10-09T04:55:58Z

I recently had a client that had an issue with the IRS. This is their story and how it all turned out. The very start of the story began with us making a mistake on their 2006 tax return. We left a zero off of a deduction that cost the taxpayer a substantial deduction. The return had been transmitted before the taxpayer discovered the error. The balance due on the original return had not been paid. In our defense, the deduction was verbally stated and undocumented to us so it was impossible to discover the error with our review process. There is a lesson in that, but I digress.

Sign up!

2008-10-09T04:58:23Z

Sign up for our newsletters and online updates.We will not ever share your information with anyone else, and we do not send out junk mail. We will send you notes from time to time that will help you reduce your tax bill.

IRS Debt Relief - It Is Possible

2008-06-18T02:54:51Z

You can hear the commercials on most any syndicated talk radio show in America. The pitch goes something like "Settle Your Debt With The IRS For Pennies on The Dollar". Is it possible? Yes it is. It happens all the time. But there are many factors that determine when an IRS debt can be settled.The method used to settle debt for pennies on the dollar with the IRS is called The Offers in Compromise Program. It is a program offered by the IRS so that honest taxpayers can settle debts that they can not afford to pay. Let me reiterate. The program that can be use to settle debt with the IRS for "Pennies on the Dollar" is called the Offers in Compromise Program. It is designed for honest taxpayers to settle debt that they can not afford to pay.You have to be able to prove that you lack the ability to pay in order to qualify for this program.

Identity Theft - Some Sage Advice From An Attorney

2008-02-27T05:16:34Z

This is a reprint from an email I received. It is supposedly advice from an attorney and whether true or not I can see the wisdom in the advice so I am sharing with all that will take the time read.ATTORNEY's ADVICE - NO CHARGE Not A Joke!! If you dislike attorneys..... You will love them for these tips.Read this and make a copy for your files in case you need to refer to it someday. Maybe we should all take some of his advice! A corporate attorney sent the following out to the employees in his company.1. Do not sign the back of your credit cards. Instead, put 'PHOTO ID REQUIRED.'

The Final Details For Rebate 2008

2008-02-25T05:36:46Z

The Final Word On Tax Rebates 2008The tax rebates for 2008 will happen and the IRS has stated that they will begin sending checks in early May. That is sooner than first projections of late May or early June so give the IRS credit on this.Rebates will be keyed to tax liability. Married Couples will get a maximum rebate of $1200, single people will get get a maximum of $600. Filers with dependent children under the age of 17 will get an additional $300 per child. Married Couples with at least $3000 in income will get $600 and singles with at least $8750 will get $300. Dependents of another will not receive a check.

EMPLOYEE POSTERS SCAM

2008-02-27T06:20:16Z

I have clients that call and ask me about employee poster requirements in Alabama. It seems that every so often someone that is LESS THAN HONEST sends out a mailing that SCARES the crap out of Employers because the letters look official and they are intentionally trying to make you think that you need the posters to comply with the Alabama tax laws. Well crap, Who could blame you? With all the stuff that employers have to do to comply with Governmental interference, no wonder they get scared that they have possibly missed something. Well I have good news....I just saved 15% on my car insurance. ;-) JUST KIDDING!

The 2008 Stimulus Package Has Something For Business

2008-02-20T05:04:09Z

President Bush signed a stimulus package into last week and most of the attention has been on the tax rebates for individuals. However, the bill also contains several provisions that should benefit small and midsized companies.The bill gives companies a 50 percent bonus deduction on new equipment and increases the limit on expensing capital expenditures to $250,000, double the regular $125,000.The Section 179 expensing and Bonus depreciation provisions of the bill will help small businesses in terms of providing them with cash flow to expand their businesses.

The Candidates - What They Intend To Do

2008-02-27T05:17:47Z

What Do The Presidential Candidates Have In Mind On TaxationRegardless of who we elect for President there is no question that the President elect will have a significant impact on taxes. The tax cuts that President Bush signed into law will lapse in 2011. That includes the income tax rate reductions (we are all paying less tax than we were), estate tax relief (my personal pet peeve of a bad tax – it's double taxation at its worst) and the lower rate on long term capital gains and dividends (a provision that encourages investment and wealth accumulation). I think that we need to make these permanent but the issue is what the candidates think.

Tax Rebates 2008 Are Now The Law

2008-02-14T04:52:43Z

Tax rebates are now the law of the land. They come as a welcome boost for some and create a sore spot for others. It seems that Congress wanted to include those on Social Security and Disbled Veterans in the rebate program but they didn't take into account the administration of the rebates. In short, people that have had no reason to file for years will now need to file a tax return in order to receive the rebate check they are entitled. Be sure and tell your grandmother that she will need to file this year if she wants the rebate. I have included the entire story from WebCPA below and here is a link to the story on their web site CLICK HERE

2008 Tax Rebate

2008-02-08T05:49:57Z

The 2008 tax rebates have passed both the House and Senate as of Thursday February 08, 2008. The bill still has to be signed by President Bush but he is expected to sign the legislation. Individuals that earn at least $3000 will be eligible for a minimum of $300 and a maximum of up to $600 based on income. Also, individuals receiving at least $3000 in social security or disabled veteran benefits will receive $300. Couples will be eligible for up to $1200 and then $300 additional for each child. Well that covers the tax rebates but for all of you that like to think about things just a little consider this. Congress is doing this to stimulate the economy. The belief is that after sending out these rebates people will spend this money and the economy will warm up a bit. The vote in the Senate was 81-16 and in the House it was 380-34. Folks this is an admission by the majority of the U.S Politicians that taxes are bad for our economy.