IRS OFFERS PENALTY RELIEF IN “FRESH START” INITIATIVE Taxpayers who are struggling to pay their taxes may get some relief from the IRS’s expansion of its “Fresh Start” initiative, a program started back in 2008. The new Fresh Start provisions provide penalty relief to the unemployed and make installment agreements on taxes owed available to more people. Normally, a failure-to-pay penalty of one-half of one percent per month, up to a 25% maximum, is charged…
BE SMART WITH YOUR TAX REFUND Are you receiving a tax refund this year? No doubt you’ve already heard the standard admonishment about why you should not be giving the government an interest-free loan. Maybe you’ve decided to “do better” during 2012 by revising your withholding or estimated tax payments to reduce the amount of next year’s refund — or maybe you haven’t. Either way, set aside your guilt. Financial planning means creating effective strategies…
UNDERSTAND THE TIME VALUE OF MONEY When making financial decisions, do you consider the time value of money? If you have a basic understanding of time-value concepts, you’ll be able to make better choices in many business and personal financial situations. * Here’s an example. Say you want to sell a piece of property for $10,000 cash. A potential buyer offers $5,000 cash down, and $5,500 one year from now. How does the buyer’s offer…
THE IRS HAS ISSUED A TAX SCAM WARNING CONNECTED WITH THE AMERICAN OPPORTUNITY TAX CREDIT. Promoters of the scheme target senior citizens, low-income individuals, and members of church congregations. The con artists say they can get a tax refund or stimulus payments based on the American Opportunity Tax Credit, even if the taxpayer was not enrolled in or paying for college. Victims of these scams can lose the upfront fees they are asked…