Thompson & McCarty, P.C. CPA

Do you realize that similar to any other business a CPA is in business too.  I have to make decisions about vendors just like any other business.  What I learn from my business experiences is one way I gain information to share with my clients.  Purchasing a web site is an area where I have learned some important things to share with you.

What a user sees, hears, or buys (including shopping) at a given web site is the user experience.  For example, the user goes to the website, looks through the inventory or searches it, drop the items they want in the shopping cart, and then check out using a credit card.  What it takes to create that experience is usually multiple services or products. 

On April 27th, 2011 a tornado hit Cullman, AL and destroyed many things.  It swept through the downtown area and destroyed businesses, homes, infrastructure such as power lines and telephone lines and more.  My office was spared a direct hit but the effects were substantial none the less.  We were without power for 6 days and phone and internet services for 8 days.  I had a disaster recovery plan.  I thought that we were ready to quickly reestablish a computer network complete with backed up data.  I learned that I was not nearly as ready as I thought and I hope that this message will help someone avoid my mistakes.

We have seen several issues related to the new homebuyer's credit.  The first problem that we experienced was legitimate credits denied without further substantial proof being submitted to the IRS.  The main reason this happened was due to rampant fraudulent claims.   The most recent issue is the systemic failure of the IRS to properly treat the $8,000 credit for those that purchased a home in early 2009.  This credit did not have to be repaid but the IRS has many of these in the system as repayable credits. 

To get to a basic understanding of what we are now seeing let's look at the history of the "New Home Buyer's Credit". 

THE ANT AND THE GRASSHOPPER

This one is a little different.... Two Different Versions................. Two Different Morals

 
OLD VERSION

The ant works hard in the withering heat all summer long, building his house and laying up supplies for the winter.

The grasshopper thinks the ant is a fool and laughs and dances and plays the summer away..

Come winter, the ant is warm and well fed.

The grasshopper has no food or shelter, so he dies out in the cold.
MORAL OF THE STORY: Be responsible for yourself!
MODERN VERSION

The standard mileage rates for 2010 are:

50 cents for business miles

16.5 cents for medical miles and moving miles

14 cents for charitable miles

PLEASE! PLEASE! PLEASE!  keep that mileage log so your tax deduction will be bullet proof!

My office has recently received two notices from the IRS concerning a missing W-2 on a tax return.  In both cases the notice was 10 pages long and the explanation section (page 7 see pdf below) fails to foot and cross foot per their own schedule.  This is something that is common in the computer world among programmers that don't understand accountability and cross checking one's work.  This is not something that is acceptable in basic accounting circles much less tax notices from the IRS.

The 2009 Standard mileage rates are:

Business Miles - 55 cent per mile

Medical Miles and Moving - 27 cents per mile

Charity - 14 cents per mile.

Keep in mind that to make your mileage deduction bullet proof in an audit you need a good mileage log.

I recently wanted to check and see if I could save enough money to warrant refinancing my home.  I thought that it would be easier to call my current mortgage company than to call a new mortgage company or originator. 

My first attempt to contact my existing mortgage company was on the internet.  After making multiple attempts to log in I realized that they had changed their log in process and my old user name and password were not valid.  So I attempted to change them and the system notified me that my access had been blocked due to invalid input.  I would have to contact customer support to reset the system.  After an hour and 15 minutes of trying I got frustrated and gave up for the evening.

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.

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.'