The Small Business Tax Help Blog

Archive for October, 2009

The Internet has made it more possible than ever for people to make money right from the comfort of their own home. You can earn money easily too. I know it is true because I have done it myself.

With the current job market lacking in opportunity, many people want to find alternative ways to make money. The good news is that these opportunities exist on the Internet. The economy has not diminished the number of opportunities available on the web.

There are many ways to make money online. The first is affiliate programs. Affiliate programs will pay you for every customer you can drive to the sponsor’s website. There are numerous ways to do this. Essentially, you market for a company using the Internet and receive payment every time you successfully drive sales to the company. This can be a good way to make money easily online if you have the right skills or want to learn.

It is important to be aware of what you intend to achieve through earning money online. With most online money making opportunities you will function as an independent contractor. You will not be employed by the company that is paying you. For this reason, you will have to keep records of your income for tax purposes.

There are other opportunities online that offer income potential, like making items for companies or sending out fliers for companies. These normally pay per item. Some of these opportunities will ask for a small payment to get started because they will be sending supplies to you. Do research on all online opportunities before jumping in.

There are many business opportunities that can be found on the Internet that do not require you to make, sell, or ship any products. These ways can help you earn money easily and they are probably a better choice for someone who wants to spend less time working, or less time in front of a computer.

A quick web search will bring up numerous opportunities. Do extra research into opportunities that require you to pay them upfront to get started. There are many that do not require you to spend money. Be cautious and do your research. The right money making opportunity just may be out there for you and many of them are a great way to earn money easily online.

France eyes ‘Google tax’ for online ads

A PROPOSED French “Google tax” on online ad revenues to fund subsidies for musicians and newspapers struggling in the digital era draws criticism.

Making WI Business Tax Payments and Printing Returns-My Tax Account

Question: Pension Bubble . . . Are the Unions the next bubble to Burst?

Unions are advocates of the defined benefit plan . . . which basically assures a union retiree a certain benefit amount post retirement for a certain cash amount contributed during employment . . .

Philadelphia, New York City, and the entirety of California all have various unions which offer a defined benefit retirement plan. Most of the plans have posted plus 30% loss in total assets . . . generally speaking the percentage of loss is higher.

So my question to you is since these unions are funded directly by tax payer dollars (I’m excluding corporate unions), should the tax payer be expected to cover the losses? As it stands right now, Philadelphia, New York and of course California will be forced to declare bankruptcy should full funding be required without severe tax increase.

Should defined benefits “banned” or temporarily haulted during times of severe financial crisis?

Answer: Where's the air blowing up the Union bubble? Since there's nothing blowing it up, it's less likely to explode.

Running scared?

Why are some Democrats bowing out in US?

Hasta La Vista, Arnold!: What California's Budget Mess Means for America

You may have considered this question before. I’ll explain what financial planners do, what they don’t do, and why/when someone might need or want to enlist their help.

What does a financial planner do?

Well, that depends. Many individuals refer to themselves as “financial planners” or “advisors”, but not all perform true multidisciplinary financial planning. Investment, insurance and tax pro-fessionals sometimes specialize in certain areas of financial planning (such as retirement plan-ning, estate planning, tax planning, or investment management). A CERTIFIED FINANCIAL PLANNER™ practitioner is qualified to give you comprehensive financial advice, as a result of examination, continuing education, board certification and accumulated experience.

In general, individuals who call themselves “financial planners” aim to help you plan for your goals and needs and improve your unique financial situation.

What doesn’t a financial planner do?

A financial planner cannot make you a thriftier shopper, a better saver, or help you earn more money. He or she will look at your financial “big picture”, help you clarify your goals, accelerate progress toward them, and keep you focused on them when the distractions of life come up. They may recommend specific investments, long-run investing strategies, insurance options, re-tirement planning, risk management methods and more.

Who needs a financial planner?

If you have some significant assets built up (a home, a retirement fund, savings, etc.) and are wondering about how to protect and/or grow those assets, you’re probably ready for a financial planner. If you currently live pavcheck to paycheck or have less than $50.000 combined in your savings and/or any retirement accounts, then you’re probably not vet in need of a financial plan-ner, and our “average” client is several times larger than this. If you’re under the $50,000 mark, what I recommend you do is research savings strategies and take a good look at your spending habits so you can begin to build your wealth at a faster pace.

What is a “Certified Financial Planner”?

If you see the designation “CFP®” after a planner’s name, you have found a CERTIFIED FI-NANCIAL PLANNER™ practitioner (alternately called a CERTIFIED FINANCIAL PLAN-NER™ professional). A CFP® has passed a comprehensive examination, amassed years of qualifying full-time work experience, and regularly participates in continuing education courses. A CFP® practitioner must also adhere to a strict code of ethics as set forth by the CFP® Board.

Can you claim to be a financial planner without being a CFP®? Yes, The field of financial plan-ning remains vastly unregulated – meaning almost anyone can call themselves a “financial plan-ner”. Does that mean a planner without their CFP® designation is unqualified? Not necessarily. But if they aren’t certified, you probably should inquire about their experience and training.

How do I choose a planner?

In two words … ask questions. Ask trusted friends or colleagues for referrals. Sit down with any planner you’re considering and find out how long they’ve been in business, the number of clients, what their credentials are, how they operate, etc. Most importantly, make sure if and when you hire a planner that your personalities will mesh. This is someone you may well be working with for the rest of your life, so you should choose someone you feel comfortable with.

Labor, Business Factions Compile Legislative Agendas

Tax reforms, worker safety and the right of state workers to organize in unions are items that could come up during the session.

Drew Miles on Six-Column Tax Strategy for tracking Business Tax Deductions

Leading Tax Practitioners Explore Research & Development Tax Credit Case’s Impact on U.S. businesses

ARLINGTON, Va., Jan. 5 /PRNewswire-USNewswire/ — 2009 and 2010 are likely to be viewed as momentous for the research and development tax credit. Many have argued that the R&D credit, as enacted by Congress under Internal Revenue Code Section 41, has numerous flaws that have limited its effectiveness. Michael Fishman and his colleagues from Alvarez & Marsal Taxand will share their perspectives …

DOCUMENTING YOUR BUSINESS EXPENSES IS SO EASY!!!!!!

This Week in Health Care Reform

After weeks of logjam on Capitol Hill, lawmakers in both the House and the Senate have reported progress in their respective negotiations this week, clearing way for a possible vote on sweeping health care reform legislation after the August recess. To help you make sense of the numerous reform plans and plan details, review the attached chart.

Public Plan

House Democrats Reach Compromise: After weeks of infighting, House Democrats on the Energy and Commerce Committee came to an agreement on Wednesday that would shave $100 billion off the House bill’s original price tag of more than $1 trillion. The Energy and Commerce Committee resumed marking up the legislation Thursday, but the full House will not vote until after the August recess.

Congressional Budget Office (CBO) on House Plan: The CBO helped the House Democrats’ case for a public option when it reported that under the proposed legislation , most people would still choose employer-based coverage rather than a government-run option. The CBO stated that, given the individual mandate, more employees would sign up for coverage through their employers. However, the latest analysis also stated that the proposal would still increase budget deficits.

Senate May Choose Co-Op Over Public Option: Senate Finance Committee negotiators indicated that they were close to reaching a bipartisan deal that would include a co-op modeled public plan. The proposal being discussed would include a tax on insurers and would use non-profit cooperatives to compete with private insurers. The proposal would also not include an employer mandate.

Alternative Plans

House Republicans Unveil $700B Plan: On Wednesday, House Republicans unveiled a $700 billion health care plan that would offer tax deductions and credits to assist individuals in purchasing insurance, as well as take on medical malpractice. According to House Republicans, the proposed plan would be fully paid for, but CBO has yet to officially assess the cost of the legislation.

Financing the Plan

New CBO Score on Senate Bill: The Senate Finance Committee got a boost when the CBO estimated the latest version of the Committee’s health reform bill would cost less than $900 billion. The bill would cover 95 percent of Americans by 2015 and would be fully paid for in the first 10 years, according to Finance Chairman Max Baucus (D-MT).

Tax on “Cadillac Plans” Gains Momentum:The Senate Finance Committee’s option to tax insurers on high-value “Cadillac plans” has attracted support in the Senate, and it seems senior House Democrats are warming to the financing proposal. A spokesperson for America’s Health Insurance Plans voiced opposition to the plan, and many assert that a tax on insurers will ultimately be passed down to consumers.

CBO Rates Independent Panel: CBO reported this week that the proposed independent panel to oversee payments by Medicare would result in just $2 billion in savings over 10 years.

Additional Activities

AARP Voices Concern: President Obama held a town hall-style meeting at the American Association for Retired Persons (AARP) Washington headquarters this past week to address growing concerns among seniors about health reform and subsequent cuts in benefits. Polls show that senior citizens are more skeptical about health care reform than any other age group. Consequentially, AARP has had to walk a careful line in endorsing the House bill. Earlier this week, AARP expressed disappointment in the lack of progress in the Senate, saying that Senators have “failed to act.”

Looking Ahead

House lawmakers plan to conclude work this week and break for a month-long recess, returning to their districts to further discuss health reform efforts. The Senate will recess on August 7th.

IRS tightens rules on tax preparers

The days of sitting down with a shoe box of receipts and filling out a tax return yourself on paper are largely gone.

The Baucus Bill