Thompson & McCarty, P.C. CPA - helpful info

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 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

SPEED UP YOUR WEB BROWSING

2008-03-28T09:05:32Z

A client's web browser was set up such that it did not have a navigation bar available in Internet Explorer (IE), the web browser. The navigation bar is the bar where you type the address of the web site you wish to visit. Many people just use search engines and seldom type an actual web address, known as a URL.I am shocked that anyone thinks this is a good idea. Don't misunderstand me, I love using Google to search for various and broad subject matter. But, to set my browser up so the only way I can surf the web is to type a keyword at Google's website [when I know the address] is a tremendous waste of time. For example, if I want to go to Google's site I type in google.com and almost instantly I'm there. This is a bad example because the tool that took away the navigation bar (I'm certain it is a setting that can be changed) was Google Tool Bar. To give you a good example my web site is tmicpa.com. The way this client's browser was set up we had to search through Google then scroll through the results to get to my website... instead of just typing in tmicpa.com.

2008 Mileage Rates

2008-01-23T04:57:32Z

Well it is 2008 and time to update the standard mileage rates again. Gas keeps going up and so does the standard mileage rates. The 2008 rates are:

50.5 cents for business miles
19 cents for medical and moving miles
14 cents for miles driven for charitable purposes

You should keep a mileage log if you want to deduct mileage and if you do a good job keeping up with your miles the deduction can be substantial.

2007 Mielage Rates

2007-05-22T04:29:26Z

Well I am a little late getting this information posted but better late than never. The following rates are the standard mileage rates for 2007.

48.5 cents for business mileage
.20 cents for medical and moving mileage
.14 cent for charitable miles.

In case you need the official release of code reference you can fin it here.

How To Choose A Tax Advisor / Specialists

2007-04-15T03:16:10Z

I have spent a great deal of time
writing two reports titled "How To Choose A Tax Preparer"
and "How To Choose A CPA". I have never published either
of these reports in whole but pieces of these documents have been
published in various parts of our site and in a few ads that we have
run over the years. I will publish these and make them available to my web visitors and email subscribers some day. However, I ran across a site that says most of the things that I think are
important to you in selecting a trusted tax advisor. It is published by a CPA named Kerry M.

5 Secrets Tax Pros Won't Share

2007-01-09T06:24:25Z

My name is Barry S. Thompson and I am a CPA. My office is in Cullman, AL but I have clients as far away as Carson City, Nevada. I have clients that I have never met face to face. How is this possible? First and foremost my relationship with these "long distance" clients started because they found me on this web site. Most asked questions which I promptly answered and they developed trust in me. They requested that I prepare their income tax return and I agreed to perform the service. I directed them to the "Tax Return Check List" which they print and use to organize and collect the data needed to prepare their return. They mailed me their information and I prepared the return. These clients often write that this is much simpler for them and less time consuming than dealing with a local person where they have to visit the office multiple times. That is my shameless plug now on to the "5 Secrets Professionals Usually Don't Share With Their Clients".

Not Everbody is a Tax Cheat!

2006-08-22T11:49:00Z

I often here the phrase "everybody cheats on their taxes". Well I have never believed this to be true and often debate such statements. I see way too many people that are scared to take advantge of deductions that they have the legal right to take and should be taking. Still others are not getting the dedcutions they deserve becasue they are getting their return done on the "cheap" or they do them themselves and don't have the knowledge needed to take advantage of all legally allowed deductions. Now I have the GAO to back me up. The GAO estimates that 2.2 million lazy people took the standard deduction when itemizing would have saved them an estimated $473 million in taxes.

Fruad Prevention

2006-08-31T01:18:29Z

Fraud is something that almost every business owner will encounter. It may be a simple skimming scheme or an elaborate check cashing scheme. There are some important steps that one can take to help prevent fraud. Here is a link to a very good article on a couple of fraud schemes and how the employer uncovered the acts.If you are not engaged in fraud prevention then you are asking your employee to steal and they will. Here are 10 Steps to help prevent fraud. I am a Quickbooks Advisor and the article above as well as the 10 steps below are written from that prospective but they are pertinent even if you are not a Quickbooks user.

Sole Proprietor Tax Loophole

2006-08-31T01:20:01Z

I am going to get straight to the point on this one. Use your kids in your business and SAVE TAXES. You can employ your child in your business and if they are under the age of 18, or a full time student under 21, they are not subject to FICA or FUTA. Three test have to be met to take advantage of this tax break.

The work must be performed in connection with the parent's trade or buisness. (Parent have a business).
The child must actually render the service. (Put the kid to work)
The payments must be made. (Write the Check)

This applies to sole proprietors and partnerships and their children. If the earnings are capped at the proper level then the child will not be required to file a federal return and pay taxes but the parent still gets to deduct the expense. Note that the maximum payment may be different at the state level of taxation.

Income Tax Simplification

2006-08-31T01:23:33Z

Income tax simplification is a subject that comes up every year. People are always asking me what I think about a flat tax, fair tax, one tax, etc., etc. Well, I will go on record right now as being a proponent of fair tax. This is Not in addition to our current wealth redistribution system. NO, not hardly, never. Repeal the income tax as we know it and replace it with fair tax. Now I do not believe that this or any other form of real tax reform will happen. My partner is in total disagreement with me on this if that makes you feel better.My opinion is based on a couple of different things. First of all, I have been working in the tax preparation business since 1989. During that time I have seen the tax system become more and more complex. The people that are making this more complex (Congress) are the same people that would have to decide to make it more simple. There are many reason that the tax code keeps getting more complex. Most all of them are political. Taxes are designed to raise revenue for the government and the less the people most affected by the tax know, the better.