Thompson & McCarty, P.C. CPA

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.'

The 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.

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!

What Do The Presidential Candidates Have In Mind On Taxation

Regardless 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.