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There’s a horror story that each tax advisor can tell about mistakes made by the IRS on someone’s tax record. In fact, literally thousands of dollars are involved in most IRS mistakes. When summed up, the total amounts are considerably significant and large. The IRS assessed almost 11.6 million penalties in the year 1986. The total amount amounted to $2.5 billion. Nearly $890 million of these penalties were dropped eventually. That equals 36% of the total amount that was billed to American taxpayers. David R. Burton, US Chamber of Commerce in Washington’s manager of tax policy calculated these figures.

Unfortunately, this isn’t the only substantial mistake regularly experienced from the IRS. Usually wrong about 15-20% of the time are the notices they serve to taxpayers in relation to underpayment or late… Continue reading

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Have you thought about upgrading your equipment to the newest industry standards but were afraid of the cost? Or perhaps you want to improve your office to make it more comfortable for your patients? Do you need to upgrade your reception area to make it more efficient for your administrative staff or look nicer for your patients?

If you have been thinking about any of these improvements for your practice, consider that if you do it in 2008, the Government will help pay for them. That’s right, Uncle Sam is ready to pay for a significant part of your cost of improvements, but only if you make your purchases and do your improvements in 2008. How? The good old American way - through major tax deductions.

In February 2008, President Bush signed… Continue reading

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A common question in my office from parents experiencing divorce concerns how to treat child support for income tax purposes.

Fortunately, this is an easy one to answer. Child support payments have no income tax effect: They are not deductible by the paying parent, and they are not taxable to the receiving parent.

In a rarity in the tax code, there are no exceptions. Most tax provisions have exceptions and exceptions to the exceptions, and exceptions to the exceptions to the exceptions. But here’s one place where there is a hard and fast rule: Child support is not deductible and not taxable.

This is the polar opposite of alimony (also called spousal support or maintenance). As long as it meets all the requirements in the tax code, alimony is deductible by the one… Continue reading

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When being asked debt questions and advice Tax Deductions are one of the few areas of the tax system that EVERYONE really should like! Because they are all about saving you money, rather then costing you money. Hence, as a small business owner, it’s wise to familiarize yourself with some key deductions that may reduce your tax bill for the tax year ahead.

Each business is a different though so be sure to mention your expenses in detail to your tax advisor or accountant to see if your business can qualify for these deductions. As a home business owner who has been keeping track of every dollar spent, you can make a killing on your tax deductions with some of the thoughts I will outline here. And hopefully, you can maximise… Continue reading

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Be Prepared to Meet with Your Tax Advisor– By Chris Bibey

Do you meet with a professional tax advisor or CPA for help when filing your tax return? If so, you are making a great financial decision. With that being said, it is very important that you are prepared for your meeting. After all, your tax advisor does not live or work with you everyday of the year. For this reason, they have no way of knowing what you have gotten yourself into as far as your taxes are concerned. The only way for them to effectively lend you assistance is if… Continue reading

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With all the doom and gloom being reported about the nation’s economy, many people are fearful about the immediate financial outlook. I would like to inform you that none of that news matters. What really matters to you is your family’s economy. What is going on in your life has more of an impact than the Dow index.

If an economic recession is like a storm, how you feel about it is largely determined by your situation when it hits. If you are snug and secure inside a nice, warm, well built lighthouse, then it may be an amusement to watch… Continue reading

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