The Small Business Tax Help Blog

Archive for November, 2009

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Question: Was the Tea Parties about large tax cuts for huge corporations?

The first Tea Party was a corporate revolt, caused by a huge corporate tax cut for the East Indies Company for tea which was going to put small Americans businesses out. I am just confused that the same people that stick up for corporations sending jobs to communist China and tariff tax cuts for them organized the 2009 tea parties.

Answer: Are you serious???? No wonder you bought into Obama's message of change. I still feel that all of you Obama followers can keep your change, I will keep my freedoms! In fact, all that you will have left after Obama is done with his socialist agenda will be change, pocket change that is, maybe a few quarters, dimes, nickles, and pennies.
Give me a break, are you all really that ignorant? This is about really Big Government, this is about spending into oblivion, this is about way too much government control and regulations!! This is about so much more than any of you can even tell. Did any of you stop to think that if you tax the he!! out of corporations, that they will start laying off employees? More corporate taxes means less jobs people!! Who signs your paycheck?? A corporation or the government? Or does your paycheck just magically appear? Seriously people, all of you need to stop for a moment and think. Businesses large and small employ Americans, if you tax them out, no jobs. Did I explain that simply enough for your little liberal brains? Socialism is bad, very very bad! Why do you think millions of people have fled from their countries to be in this one?? What is wrong with all of you? People who worked hard and became very successful deserve their money. Why should it be their responsibility to support anyone else? It is their money, their sweat, their hard work, their determination, and their blood that made them who they are. No one has a right to take it away from them.
One last note, Obama has only been in office for a few months and he has already spent MORE than the Bush administration did in 8 years, what in the h do you think is going to happen in the next 3 years and 9 months of this administration? Do you really think you will be better off. If you are too young to remember what this country was like under Jimmy Carter, then you will soon know exactly what it was like with double digit unemployment, double digit inflation, and double digit interest rates. Do some research on the economy under Carter and you will be staring at your future. Thanks for that.
All of you socialist Liberals really need to wise up, you are all so ignorant on how capitalism works, please pull your heads out of your butts before it is too late!!

Ford says China sales up 44 percent in 2009

Ford Motor Co. said Thursday sales in China by the company and its local partners soared 44 percent in 2009, highlighting the country's key role in driving demand for global automakers amid weak sales elsewhere. The announcement, following GM's report of a 67... China - General Motors - Ford Motor Company - Automotive industry - Business

Don't Panic! Carbon Tax for YouTube users next?

Question: How do I get my tax backup withholdings back (tefra) ?

I am a self-employed individual. I have an account with Morgan Stanley and when I received my first interest payment (from a bond) they withheld $500.00 in “Tax Withholding” because I didn’t have my W9 on file with them within 30 days of opening the account. How do I get this money back (other than waiting until I file my tax returns again next year) or what else can I do? Thank you.

Answer: Unfortunately, the only way to claim the $500 back, assuming you'd have no other tax liabilities, is to file a tax return for the year which the backup withholding took place.

IRS levies fine

The city of Rio Rancho has paid $19,000 to the IRS stemming from a recent audit.

Backup Withholding for Form 1099-MISC

Question: I am self-employed as a medical transcriptionist. The first company I contracted with had enough work to last?

2 months of 2008 (August and September), but only had a few hours of work for me in October, and no work at all during November and December (although they said they were doing marketing for new accounts). Needless to say, I moved on to a company (this year) with more hours available. When filing my tax returns for 2008, do I include business expenses for October through December since I was “available” to work? What tax forms do I need to fill out other than the Federal 1040 with Schedule A? And, is there any good tax software program for dummies like me for reporting my self-employment income, business expenses, and paying self-employment taxes? I would like to KEEP IT SIMPLE so I don’t get overwhelmed ) Thanks!

Answer: Schedule C is used for self-employment income. Business expenses while you were looking for work from October through December are deductible (but other than some car expenses and office supplies they are probably rather minor). Turbo Tax can handle your situation, but also go to www.irs.gov and download Schedule C AND THE INSTRUCTIONS. That will give you a detailed list of what expenses are deductible. If you work at home, your home office or work area can also be deducted.

Return preparer review leads to recommendations for new requirements

What is the Return Preparer Review? In June 2009, IRS Commissioner Doug Shulman called for a comprehensive review of the paid tax return preparer industry, drawing on all relevant data and input from interested parties. The goal was to produce a comprehensive set of recommendations to better leverage the tax return preparer community, fostering higher compliance with the law by taxpayers and ...

Track Your Trades -- generate IRS Schedule D for your tax return

A.M. Best Special Report: Underwriting and Investments Drive Improvement in Operating Results

OLDWICK, N.J.—-The U.S. property/casualty industry posted a larger profit in the first nine months of 2009 than for the same period of 2008, driven by improved underwriting results and continued recovery in the investment markets.

And The Oscar Goes To… Al

A second wave of healthcare provider consolidation is on the horizon, rivaling what occurred in the 1990s and is guaranteed to bring a new round of challenges and opportunities for providers across the country. Although the number of mergers and acquisitions has been modest for the past five years, six key environmental forces are converging to create a new tidal wave of consolidation.

Insurance industry consolidation. Consolidation in the health insurance industry is creating fewer, larger companies and an increasing imbalance of power between these large companies and the fragmented providers with whom they negotiate contracts.

Tightening capital markets. While the capital needs of providers are growing rapidly, the worsening of the overall industry balance sheet and poor national credit situation, such as the subprime crisis, bond insurer poor financial performance, means that capital access will tighten and be less available to many.

Expense increases outpace reimbursement. Continuing inflation and flattening public and private payor reimbursement, combined with escalating uncompensated and under compensated care, will undermine the financial situation of vulnerable organizations.

Workforce shortages. Growing workforce shortages combined with the changing recruitment markets, favor larger, well-heeled organizations that can compete for personnel in a broader market.

Physician practice dynamics. Physician shortages and the fact that physicians entering practice want employment, either by hospitals, systems, or large medical groups, also favor the larger organizations that can support such structures and put smaller hospitals at a substantial disadvantage.

Large number of financially fragile providers. The growing gaps between the financially strong and weak will widen with a disproportionate impact on small, inner-city and rural organizations. The inevitable consequence is that failures and consolidations will escalate.

In this more volatile environment, some leaders can position their organizations as consolidators, while many others must be realistic about their likelihood of survival if they go it alone.

Most health systems have flourished for the past several years, benefiting from a generally healthy economy, both inside and outside of healthcare, and a return to sound business fundamentals. Marginal operations have been pruned, focus has returned to core businesses, and a number of years of solid performance have strengthened these organizations.

In the next few years, many will have the opportunity to become a consolidator–either locally or nationally.

Can or should your organization be a consolidator?

Part of the answer lies in the impact of market forces in your community and region. How consolidated are and will be the insurance companies? How able is your organization to manage the capital access situation? What is the underlying financial strength of your hospital or system?

The nature of the opportunities available will be another important variable. Perhaps of greatest importance when deciding whether to be a consolidator is your ability to scrutinize each deal to see if it brings clear, significant revenue growth and expense reduction benefits. Unlike the last wave of consolidation in the 1990s, speculative, hypothetical benefits or the lack of vigorous pre-merger planning and post-merger implementation could lead to failure rather than just under performance.

For organizations unable to take on the consolidator role, the issue will be one of survival and, if so, in what form. Healthcare organizations tend to avoid giving up their independence and autonomy until the organization is bankrupt or nearly so. Under these circumstances, attracting a partner can be grueling and reversing the organization’s downward spiral, even if a partner exists, can be nearly impossible.

Weaker organizations must seek partners while they still have value. Nonprofit hospitals should emphasize continued service to their communities–not autonomy or protecting individual facilities. Continuance of mission is the essence of responsible governance. By recognizing when to come in from the cold, providers maintain some negotiating leverage in merger and acquisition situations and their missions are much more likely to survive in a reasonable form.

As systems grow and expand over the next five to 10 years, the industry must manage this change in a more business-like manner than the previous wave of consolidation. To maximize the chances for success, providers should drive toward six main categories of benefits:

Capital rationalization and access Cost reduction Access to scarce personnel and expensive technologies Revenue enhancement Quality improvement Improved care for the vulnerable

Ensuring that management processes are in place to secure these benefits, post-merger and acquisition, means that this next surge of consolidation, while disruptive and unsettling, could ultimately lead to stronger, healthier, sustainable healthcare organizations that are better suited for meeting community needs.

Lawson Software Operating Income Rises 26 Percent in Second Quarter Fiscal 2010

ST. PAUL, Minn.—-Regulatory News:

Big E-Z Books Business Edition – Basic bookkeeping spreadsheet software for a small business