Richmond, Va. (Dec. 8, 2008) By WebCPA staff
The Virginia Society of CPAs is offering a free financial wall calendar for consumers, developed in partnership with the American Institute of CPAs.
The 12-month Financial Fitness Calendar is part of a national effort by the profession to educate the public on topics related to money management and fiscal responsibility.
"In light of the current economic crisis, it's important for consumers to be reminded of basic money management principles," said VSCPA chairman Gregory F. Lawson in a statement.
In addition to serving as a wall calendar, the VSCPA Financial Fitness Calendar also contains year-round money management advice on topics such as budget planning, saving for the future, understanding credit and making wise investments. It also includes important tax and financial dates to remember, definitions of common financial terms and contact information for additional financial assistance.
Consumers can access the 2009 Financial Fitness Calendar free of charge online at www.FinancialFitness.org or request a printed copy by contacting the VSCPA at financialfitness@vscpa.com or (800) 733-8272
Tuesday, December 23, 2008
Wednesday, December 17, 2008
IRS Goes Easy on Homeowner Tax Liens
Washington, D.C. (Dec. 17, 2008) By WebCPA Staff
The Internal Revenue Service plans to make it easier for financially troubled homeowners to avoid federal tax liens that block them from selling their homes or refinancing their mortgages.
The IRS noted that taxpayers facing a lien from the IRS already have some options. Taxpayers or their representatives or lenders can request that the IRS make a tax lien secondary to the lien by the lending institution that is refinancing or restructuring the loan. This is known as a lien subordination. Taxpayers or their representatives can also request that the IRS discharge its claim if the home is being sold for less than the amount of the mortgage lien under certain circumstances.
The process to request a discharge or a subordination of a tax lien takes approximately 30 days after the submission of the completed application, but the IRS said it will now work to speed those requests in the wake of the economic downturn.
"We don't want the IRS to be a barrier to people saving or selling their homes," said IRS Commissioner Doug Shulman (pictured) in a statement.
"We want to raise awareness of these lien options and to speed our decision-making process so people can refinance their mortgages or sell their homes."
To apply for a certificate of lien subordination, taxpayers or their representatives must follow the directions in Publication 784, "How to Prepare an Application for a Certificate of Subordination of a Federal Tax Lien." To apply for a tax lien discharge, applicants must follow the directions in Publication 783, "Instructions on How to Apply for a Certificate of Discharge of a Federal Tax Lien."
The IRS also urges people to contact the agency's Collection Advisory Group early in the home sale or refinancing process so it can begin work on their requests. Currently, there are more than 1 million federal tax liens outstanding tied to both real and personal property. The IRS issues more than 600,000 federal tax lien notices annually.
The Internal Revenue Service plans to make it easier for financially troubled homeowners to avoid federal tax liens that block them from selling their homes or refinancing their mortgages.
The IRS noted that taxpayers facing a lien from the IRS already have some options. Taxpayers or their representatives or lenders can request that the IRS make a tax lien secondary to the lien by the lending institution that is refinancing or restructuring the loan. This is known as a lien subordination. Taxpayers or their representatives can also request that the IRS discharge its claim if the home is being sold for less than the amount of the mortgage lien under certain circumstances.
The process to request a discharge or a subordination of a tax lien takes approximately 30 days after the submission of the completed application, but the IRS said it will now work to speed those requests in the wake of the economic downturn.
"We don't want the IRS to be a barrier to people saving or selling their homes," said IRS Commissioner Doug Shulman (pictured) in a statement.
"We want to raise awareness of these lien options and to speed our decision-making process so people can refinance their mortgages or sell their homes."
To apply for a certificate of lien subordination, taxpayers or their representatives must follow the directions in Publication 784, "How to Prepare an Application for a Certificate of Subordination of a Federal Tax Lien." To apply for a tax lien discharge, applicants must follow the directions in Publication 783, "Instructions on How to Apply for a Certificate of Discharge of a Federal Tax Lien."
The IRS also urges people to contact the agency's Collection Advisory Group early in the home sale or refinancing process so it can begin work on their requests. Currently, there are more than 1 million federal tax liens outstanding tied to both real and personal property. The IRS issues more than 600,000 federal tax lien notices annually.
Sunday, December 14, 2008
Seven PFP Strategies That Can't Wait
What are you doing to help worried clients? Tell us how CPAs should help. E-mail Rick Telberg.
December 1, 2008 by Rick Telberg/At Large
With an economy skittering out of control and investors facing once-in-a-generation losses, CPAs are talking increasingly about their special duty and capacity to help investors find calm in the storm.
I’ve been talking to dozens of CPAs and financial experts lately. But it doesn’t take long to gather at least seven essential take-aways:
1. CPAs are the voice of reason.
“We’re independent, objective and contrarian thinkers,” says Susan Bruno, CPA, PFS at Beacon Wealth Consulting LLC in Rowayton, Conn. “And isn’t that what’s needed today? I think that investors need that CPA perspective more than ever before.”
2. Do the math.
“The market is going to come back. But when? That’s the question,” Jim Shambo, CPA, PFS at Lifetime Planning Concepts Inc. in Colorado Springs, Colo. “Two years? Three years? Or five years? We don’t know and we can’t guess. We just need to do the math. And what that means today is looking at the loss in equities and sometimes seeing that it’s out of balance with your client’s other assets, like bonds, cash or even real estate. So it’s time to be rebalancing. With equities off so much it’s really important that we add some cash back into stocks. As a CPA, you have to follow the math and the math says rebalance.”
3. Let clients know you’ve prepared them well.
“We need to make sure that clients understand that bear markets have happened before and they’ll happen again,” says Lyle Benson, CPA, PFS at L.K. Benson & Co. in Baltimore. “These are the times we’ve been preparing for. That’s why, if you’ve been really following the financial process, you’re ready. You have a diversified portfolio that’s liquid in the right places to take advantage of some of the opportunities that are opening up here.”
4. Focus on the personal and specific.
The stock market averages may be down, but those are only averages, your clients’ needs are very personal and completely specific. CPAs need to be talking to clients about the details of their situations. For starters, Benson adds, tell clients to turn off CNBC TV and stop hitting the “refresh” button at Yahoo! Finance. “That’ll drive you crazy.”
5. Seize the opportunities.
“As bad as this is,” Benson continues, “and I really hate to put it this way, but it’s a marketing opportunity. This is a time when CPAs, who tend to be fiduciary type of advisors, can gather in clients and assets. We use a proven, well-thought-out process.” Ask Jimmy J. Williams, CPA, PFS at Jimmy J. Williams & Co. in McAlester, Okla. The market has been off about 40 percent, but his financial planning business is also up 40 percent. With a modest $52 million under management, Williams’ team of five is earning fees at a run-rate of $840,000 annually.
6. Keep it real.
Williams has something more to add: In reviewing goals and objectives with clients, CPAs have a knack for the No B.S. approach. “We know the facts. We stick to the facts. Clients want that and expect it from us,” he says. Unlike any other class of financial advisor, we can give our clients the information that they need to hear. And that gives it a credibility that others can’t give it. We keep it real.”
7. Start today.
With only days to go before year-end, CPAs need to move fast to help clients grab some last-minute opportunities. Robert Keebler, CPA/MST at Virchow Krause in Green Bay, Wisc., offers at least two quick ideas to put to work today:
Harvest losses. It’s painful, but a lot of mutual funds, believe it or not, will be distributing capital gains from investments purchased years ago and this isn’t a year when anyone needs to be paying gains taxes.
Think Roth. Depreciated assets make it a good time to look at converting regular IRAs into Roth IRAs.
Tax season starts in only a few weeks. But Dec. 31 is coming in a matter of days. Clients need their CPAs now more than ever.
JOIN THE CONVERSATION: What’s your view on the personal financial planning situation today? How worried are you? How worried are your clients? What should CPAs be doing? Tell me and I’ll post and share the best comments. E-mail Rick Telberg.
RELATED RESOURCES: Plan to attend the AICPA Advanced Personal Financial Planning Conference, Jan. 18 to Jan. 21 in San Diego, Calif. Learn more and register here.
Copyright © 2008 CPA Trendlines/BSG LLC. All Rights Reserved. Used by Permission. First published by the AICPA.
December 1, 2008 by Rick Telberg/At Large
With an economy skittering out of control and investors facing once-in-a-generation losses, CPAs are talking increasingly about their special duty and capacity to help investors find calm in the storm.
I’ve been talking to dozens of CPAs and financial experts lately. But it doesn’t take long to gather at least seven essential take-aways:
1. CPAs are the voice of reason.
“We’re independent, objective and contrarian thinkers,” says Susan Bruno, CPA, PFS at Beacon Wealth Consulting LLC in Rowayton, Conn. “And isn’t that what’s needed today? I think that investors need that CPA perspective more than ever before.”
2. Do the math.
“The market is going to come back. But when? That’s the question,” Jim Shambo, CPA, PFS at Lifetime Planning Concepts Inc. in Colorado Springs, Colo. “Two years? Three years? Or five years? We don’t know and we can’t guess. We just need to do the math. And what that means today is looking at the loss in equities and sometimes seeing that it’s out of balance with your client’s other assets, like bonds, cash or even real estate. So it’s time to be rebalancing. With equities off so much it’s really important that we add some cash back into stocks. As a CPA, you have to follow the math and the math says rebalance.”
3. Let clients know you’ve prepared them well.
“We need to make sure that clients understand that bear markets have happened before and they’ll happen again,” says Lyle Benson, CPA, PFS at L.K. Benson & Co. in Baltimore. “These are the times we’ve been preparing for. That’s why, if you’ve been really following the financial process, you’re ready. You have a diversified portfolio that’s liquid in the right places to take advantage of some of the opportunities that are opening up here.”
4. Focus on the personal and specific.
The stock market averages may be down, but those are only averages, your clients’ needs are very personal and completely specific. CPAs need to be talking to clients about the details of their situations. For starters, Benson adds, tell clients to turn off CNBC TV and stop hitting the “refresh” button at Yahoo! Finance. “That’ll drive you crazy.”
5. Seize the opportunities.
“As bad as this is,” Benson continues, “and I really hate to put it this way, but it’s a marketing opportunity. This is a time when CPAs, who tend to be fiduciary type of advisors, can gather in clients and assets. We use a proven, well-thought-out process.” Ask Jimmy J. Williams, CPA, PFS at Jimmy J. Williams & Co. in McAlester, Okla. The market has been off about 40 percent, but his financial planning business is also up 40 percent. With a modest $52 million under management, Williams’ team of five is earning fees at a run-rate of $840,000 annually.
6. Keep it real.
Williams has something more to add: In reviewing goals and objectives with clients, CPAs have a knack for the No B.S. approach. “We know the facts. We stick to the facts. Clients want that and expect it from us,” he says. Unlike any other class of financial advisor, we can give our clients the information that they need to hear. And that gives it a credibility that others can’t give it. We keep it real.”
7. Start today.
With only days to go before year-end, CPAs need to move fast to help clients grab some last-minute opportunities. Robert Keebler, CPA/MST at Virchow Krause in Green Bay, Wisc., offers at least two quick ideas to put to work today:
Harvest losses. It’s painful, but a lot of mutual funds, believe it or not, will be distributing capital gains from investments purchased years ago and this isn’t a year when anyone needs to be paying gains taxes.
Think Roth. Depreciated assets make it a good time to look at converting regular IRAs into Roth IRAs.
Tax season starts in only a few weeks. But Dec. 31 is coming in a matter of days. Clients need their CPAs now more than ever.
JOIN THE CONVERSATION: What’s your view on the personal financial planning situation today? How worried are you? How worried are your clients? What should CPAs be doing? Tell me and I’ll post and share the best comments. E-mail Rick Telberg.
RELATED RESOURCES: Plan to attend the AICPA Advanced Personal Financial Planning Conference, Jan. 18 to Jan. 21 in San Diego, Calif. Learn more and register here.
Copyright © 2008 CPA Trendlines/BSG LLC. All Rights Reserved. Used by Permission. First published by the AICPA.
3 big mistakes I see people making in 2008 when it comes to their taxes...
You can subscribe to this newsletter from Diane Kennedy CPA at www.TaxLoopholes.com
Avoid Mistake #1: Don’t focus so much on bringing in cash flow and paying the bills that you forget that you have less than 6 weeks to plan for year-end.
That’s one of the dangers I see happening with ideas like David and other business people have. Sometimes they take off, and they take off fast. It’s months after the fact when someone wakes up and thinks, “What about the tax?” I don’t want this to happen to you!
You might have heard me talk about Diane Kennedy’s Tax Services, a 6 mo old full service tax practice. We’ve got a very interesting new model for working with clients. There are different programs that we offer: For example, if you’re just Getting Started, you don’t need an initial strategy as much as you need the ability to get UNLIMITED consulting and you need a budget for the beginning of your business. Or, you might be at the Stage in your business where you are making good money and are wanting to move to auto-pilot. You need to know what it takes to immediately pay less tax by getting a comprehensive look at everything that you have going on. Plus, you need to have someone who can look at deals and strategies on a year-round, ongoing basis. And, of course, you want to make sure the people doing the strategy are the ones preparing the tax returns.
Well, we knew it was something people needed, but we had no idea that it would grow as fast as it did. Plus, with some innovative ways of recruiting and compensating the people who work for us, we’ve got very happy people who want to save you money.
Today, I found out that we’ve all been so busy bringing in business and giving them an amazing experience, that we haven’t really been paying attention to our own bottom line. We’ve made money. Some really good money. And this morning Bill and I had to have a very serious discussion about the fact that we only have 6 weeks left for tax planning!
Yikes! I’m glad we didn’t wait much longer.
If you’ve had a good year, call Richard now at 888.592.4769 or drop him an email at Richard@DKTaxServices.com to find out about our tax plans. If you’ve had a tougher year, then it’s even more important for you to get hold of Richard right now. You can turn that loss into a big asset for the future, if you do it right! Plus, we can even take those paper losses and get you refunds for past year’s taxes. Sometimes a business loss can mean cash flow! Tax savings is real money you can put in your pocket right now.
Avoid Mistake #2: Don’t worry so much about 2009 tax changes that you forget about 2008 ! There are great loopholes that you need to take advantage of now.
We had some nice changes in 2008. Take depreciation for example: You can take up to $250,000 in a Section 179 deduction. And you can get a 50% bonus depreciation for new assets. You can combine those two loopholes or use just one. There a lot of different variations on how you can take advantage of this change. Section 179 can’t push you into a loss, whereas bonus depreciation can. But look at the definition of “loss”, it’s loss from your trade or business, which can include income from your job.
That’s just one of the hundreds of changes in tax laws for 2008. For now, let’s not worry about what might happen next year. For now, make sure you’ve got an updated tax plan that takes advantage of all you have available in 2008!
Just one tax strategy change, properly implemented, could save you thousands, maybe tens of thousands of dollars.
Can DKTaxServices save you money? Find out for FREE! with a FREE! CPA Tax Review. For a limited time, I’ll personally review your past tax returns. There are three ways you can send the return to us today:
(1) Fax your past year’s tax returns using our secure fax line to 602.258.0721. Please include your name, phone number and email address so we can get back to you quickly with your tax-saving results, OR
(2) Mail your tax returns or send a CD-Rom of your tax returns CONFIDENTIALLY to:
DK Tax Services
PMB 603
5350 W Bell Rd, C-122
Glendale, AZ 85308
OR
(3) Mark out your Social Security numbers and EINs and send via email to Richard@DKTaxServices.com.
Avoid Mistake #3: Do NOT try to do-it-yourself if you’re on the path to being rich!
Go back and read that last sentence in the previous section about depreciation again. Hint: It’s the one that starts “But look at the definition…”
That’s the sentence that saved one of our new clients over $100,000 in taxes for 2008. He can’t wait to file his tax return! I only wish we’d talked sooner. Now he has to wait for the big refund. But, what if he’d never made that first call? What if he (or another tax preparer) didn’t fully understand the definition of “trade or business”? Most of the popular, off the shelf, tax preparation software won’t walk you through critical tax issues like this. Imagine how bad you’d feel knowing that you had left hundreds of thousands of dollars of YOUR money in the hands of the IRS.
When it comes to taxes, the do-it-yourself approach can be the most COSTLY decision you ever make!
Get Started today with a FREE! CPA Tax Review for limited time only by me personally. I’ll review your returns, plus the notes you send me on your current situation and we’ll get back to you with the results. The cost is FREE! You have no further obligation with us. But my guess is that you’ll be like the vast majority of people who know a good deal when you see one. UNLIMITED consultation for no extra charge besides the affordable monthly expense that you can easily budget. Plus you’ll get the preparation of two returns – one business and one individual included in your program. Don’t wait. Get started today by sending in your tax return for a FREE! CPA Tax Review.
There are only 6 weeks left. You might find it hard to focus on taxes right now when there is so much economic uncertainty. You can’t know what the future will hold for most things. But there is one thing you do know. If you don’t take advantage of the small little window left for tax planning this year, the window will close. You can do something about your 2008 taxes, but you’ve got to act soon.
Warmly,
Diane
P.S. There will be a lot of changes coming in 2009. You’ll hear about most of it first by being part of our email program. Plus, make sure you check www.TaxLoopholes.com frequently for tax strategy updates.
P.P.S. Remember: In order to get your FREE! CPA Tax Review you need to send in your past year tax returns in one of three ways:
(1) Fax your past year’s tax return using our secure fax line to 602.258.0721. Please include your name, phone number and email address so we can get back to you quickly with your tax-saving results, OR
(2) Mail your tax returns or send a CD-Rom of your tax returns CONFIDENTIALLY to:
DK Tax Services
PMB 603
5350 W Bell Rd, C-122
Glendale, AZ 85308
OR
(3) Mark out your Social Security numbers and EINs and send via email to Richard@DKTaxServices.com.
Avoid Mistake #1: Don’t focus so much on bringing in cash flow and paying the bills that you forget that you have less than 6 weeks to plan for year-end.
That’s one of the dangers I see happening with ideas like David and other business people have. Sometimes they take off, and they take off fast. It’s months after the fact when someone wakes up and thinks, “What about the tax?” I don’t want this to happen to you!
You might have heard me talk about Diane Kennedy’s Tax Services, a 6 mo old full service tax practice. We’ve got a very interesting new model for working with clients. There are different programs that we offer: For example, if you’re just Getting Started, you don’t need an initial strategy as much as you need the ability to get UNLIMITED consulting and you need a budget for the beginning of your business. Or, you might be at the Stage in your business where you are making good money and are wanting to move to auto-pilot. You need to know what it takes to immediately pay less tax by getting a comprehensive look at everything that you have going on. Plus, you need to have someone who can look at deals and strategies on a year-round, ongoing basis. And, of course, you want to make sure the people doing the strategy are the ones preparing the tax returns.
Well, we knew it was something people needed, but we had no idea that it would grow as fast as it did. Plus, with some innovative ways of recruiting and compensating the people who work for us, we’ve got very happy people who want to save you money.
Today, I found out that we’ve all been so busy bringing in business and giving them an amazing experience, that we haven’t really been paying attention to our own bottom line. We’ve made money. Some really good money. And this morning Bill and I had to have a very serious discussion about the fact that we only have 6 weeks left for tax planning!
Yikes! I’m glad we didn’t wait much longer.
If you’ve had a good year, call Richard now at 888.592.4769 or drop him an email at Richard@DKTaxServices.com to find out about our tax plans. If you’ve had a tougher year, then it’s even more important for you to get hold of Richard right now. You can turn that loss into a big asset for the future, if you do it right! Plus, we can even take those paper losses and get you refunds for past year’s taxes. Sometimes a business loss can mean cash flow! Tax savings is real money you can put in your pocket right now.
Avoid Mistake #2: Don’t worry so much about 2009 tax changes that you forget about 2008 ! There are great loopholes that you need to take advantage of now.
We had some nice changes in 2008. Take depreciation for example: You can take up to $250,000 in a Section 179 deduction. And you can get a 50% bonus depreciation for new assets. You can combine those two loopholes or use just one. There a lot of different variations on how you can take advantage of this change. Section 179 can’t push you into a loss, whereas bonus depreciation can. But look at the definition of “loss”, it’s loss from your trade or business, which can include income from your job.
That’s just one of the hundreds of changes in tax laws for 2008. For now, let’s not worry about what might happen next year. For now, make sure you’ve got an updated tax plan that takes advantage of all you have available in 2008!
Just one tax strategy change, properly implemented, could save you thousands, maybe tens of thousands of dollars.
Can DKTaxServices save you money? Find out for FREE! with a FREE! CPA Tax Review. For a limited time, I’ll personally review your past tax returns. There are three ways you can send the return to us today:
(1) Fax your past year’s tax returns using our secure fax line to 602.258.0721. Please include your name, phone number and email address so we can get back to you quickly with your tax-saving results, OR
(2) Mail your tax returns or send a CD-Rom of your tax returns CONFIDENTIALLY to:
DK Tax Services
PMB 603
5350 W Bell Rd, C-122
Glendale, AZ 85308
OR
(3) Mark out your Social Security numbers and EINs and send via email to Richard@DKTaxServices.com.
Avoid Mistake #3: Do NOT try to do-it-yourself if you’re on the path to being rich!
Go back and read that last sentence in the previous section about depreciation again. Hint: It’s the one that starts “But look at the definition…”
That’s the sentence that saved one of our new clients over $100,000 in taxes for 2008. He can’t wait to file his tax return! I only wish we’d talked sooner. Now he has to wait for the big refund. But, what if he’d never made that first call? What if he (or another tax preparer) didn’t fully understand the definition of “trade or business”? Most of the popular, off the shelf, tax preparation software won’t walk you through critical tax issues like this. Imagine how bad you’d feel knowing that you had left hundreds of thousands of dollars of YOUR money in the hands of the IRS.
When it comes to taxes, the do-it-yourself approach can be the most COSTLY decision you ever make!
Get Started today with a FREE! CPA Tax Review for limited time only by me personally. I’ll review your returns, plus the notes you send me on your current situation and we’ll get back to you with the results. The cost is FREE! You have no further obligation with us. But my guess is that you’ll be like the vast majority of people who know a good deal when you see one. UNLIMITED consultation for no extra charge besides the affordable monthly expense that you can easily budget. Plus you’ll get the preparation of two returns – one business and one individual included in your program. Don’t wait. Get started today by sending in your tax return for a FREE! CPA Tax Review.
There are only 6 weeks left. You might find it hard to focus on taxes right now when there is so much economic uncertainty. You can’t know what the future will hold for most things. But there is one thing you do know. If you don’t take advantage of the small little window left for tax planning this year, the window will close. You can do something about your 2008 taxes, but you’ve got to act soon.
Warmly,
Diane
P.S. There will be a lot of changes coming in 2009. You’ll hear about most of it first by being part of our email program. Plus, make sure you check www.TaxLoopholes.com frequently for tax strategy updates.
P.P.S. Remember: In order to get your FREE! CPA Tax Review you need to send in your past year tax returns in one of three ways:
(1) Fax your past year’s tax return using our secure fax line to 602.258.0721. Please include your name, phone number and email address so we can get back to you quickly with your tax-saving results, OR
(2) Mail your tax returns or send a CD-Rom of your tax returns CONFIDENTIALLY to:
DK Tax Services
PMB 603
5350 W Bell Rd, C-122
Glendale, AZ 85308
OR
(3) Mark out your Social Security numbers and EINs and send via email to Richard@DKTaxServices.com.
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