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SIGIS - Le grand retour de Nibiru http://www.sigis-metal.comAlbum Promo - Concert Miramas 01 03 2008 réalisation :http://www.dailymotion.com/from_nowhereAuthor: SiGiS-Officiel Tags: SIGIS grand retour Nibiru MIRAMAS metal heavy rock death thrash trash hard concert 911 reptilien illuminati nouvel ordre mondial bilderberg trilaterale trilateral musique complot conspiration cfr grat Posted: 24 April 2008 Rating: 4.0 Votes: 4

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video of the flowers dying when that happened.

Today TaxMama hears from Mike in the Tax Parlor, who tells us I started working overseas in Kuwait for a US company in March 2007. I am a USMC contractor planning on working this contract through September 2008. Will I be able to take advantage of the foreign earned income credit exclusion? And what is the current amount of the exclusion? Hi Mike, Roger B. Adams, EA, our international tax expert, provides an answer. http://irsexam.com/instructors.php#roger Sorry Michael, if USMC stands for the United States Marine Corp. you are a government contractor and, as such, are not eligible to take the exclusion. If, for some reason, you are not a government contractor, the exclusion amount is $82,400 plus the housing exclusion which varies between cities but whose base exclusion amount for 2006 was $13,184. (You subtract this from your housing expenses to arrive at the housing exclusion amount) TaxMama adds, there may be other ways to reduce the impact of U.S. taxes on your compensation. For instance, per diem travel expenses may be higher than your housing allowance. Or the foreign tax credit can reclaim some of the foreign taxes you have to pay. If anyone knows, it is Roger. So schedule some time with him to do planning before tax season comes around and it s too late. Also, be sure to read IRS Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad, all the way through. http://www.irs.gov/publications/p54/index.html And remember, you ll find answers to lots of questions about foreign earning income issues, and other tax information, free. Where? At TaxMama.com [Note: If you were subscribed to the e-mailed TaxQuips, you d be getting other exciting news and tips. Please click on the subscribe link and join us.] To make your comments, please visit TaxMama s Parlor at TaxTwist.com. Today TaxMama hears from Mike in the Tax Parlor, who tells us I started working overseas in Kuwait for a US company in March 2007. I am a USMC contractor planning on working this contract through September 2008. Will I be able to take advantage of the foreign earned income credit exclusion? And what is the current amount of the exclusion? Hi Mike, Roger B. Adams, EA, our international tax expert, provides an answer. http://irsexam.com/instructors.php#roger Sorry Michael, if USMC stands for the United States Marine Corp. you are a government contractor and, as such, are not eligible to take the exclusion. If, for some reason, you are not a government contractor, the exclusion amount is $82,400 plus the housing exclusion which varies between cities but whose base exclusion amount for 2006 was $13,184. (You subtract this from your housing expenses to arrive at the housing exclusion amount) TaxMama adds, there may be other ways to reduce the impact of U.S. taxes on your compensation. For instance, per diem travel expenses may be higher than your housing allowance. Or the foreign tax credit can reclaim some of the foreign taxes you have to pay. If anyone knows, it is Roger. So schedule some time with him to do planning before tax season comes around and it s too late. Also, be sure to read IRS Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad, all the way through. http://www.irs.gov/publications/p54/index.html And remember, you ll find answers to lots of questions about foreign earning income issues, and other tax information, free. Where? At TaxMama.com [Note: If you were subscribed to the e-mailed TaxQuips, you d be getting other exciting news and tips. Please click on the subscribe link and join us.] To make your comments, please visit TaxMama s Parlor at TaxTwist.com.

Today TaxMama hears from Tom, who d like to know. Can you point my wife and me to any basic resource for information on tests to determine whether one needs to do withholding or taxes in general for nanny services? And, then, how to actually execute the necessary record keeping and filings. Sure Tom, Ahh I just found a free Calculator http://www.nannynetwork.com/NannyTax/index.cfm OK, here we go: IRS Publication 926 http://www.irs.gov/publications/p926/index.html It will tell you at what quarterly/annual income level you become responsible for dealing with payroll taxes. Also, consider reading the instructions to Schedule H I found them quite informative when we had to file for clients. http://www.irs.gov/pub/irs-pdf/f1040sh.pdf Form http://www.irs.gov/pub/irs-pdf/i1040sh.pdf Instructions As to execution, are you any good at doing payroll? If not, I urge you to get a payroll service. Here s IRS s list of providers http://www.irs.gov/efile/lists/0,,id=101120,00.html http://www.paycycle.com/external/business/resources.jsp PayCycle charges about $300/year, less the first year) Or use a Nanny tax service. They tend to charge about $400 or so per year but are apt to give you more customized help and advice http://www.4nannytaxes.com/ http://www.nannytax.com/ In fact, consider talking to Kathy Webb at 4nannytaxes she struck me as having a good grasp of the issues. http://www.4nannytaxes.com/INFO/media-contacts-nanny-taxes.cfm I hope that helps? And remember, you ll find answers to lots of questions about Nanny Tax, and other tax information, free. Where? At TaxMama.com [Note: If you were subscribed to the e-mailed TaxQuips, you d be getting other exciting news and tips. Please click on the subscribe link and join us.] To make your comments, please visit TaxMama s Parlor at TaxTwist.com. Today TaxMama hears from Tom, who d like to know. Can you point my wife and me to any basic resource for information on tests to determine whether one needs to do withholding or taxes in general for nanny services? And, then, how to actually execute the necessary record keeping and filings. Sure Tom, Ahh I just found a free Calculator http://www.nannynetwork.com/NannyTax/index.cfm OK, here we go: IRS Publication 926 http://www.irs.gov/publications/p926/index.html It will tell you at what quarterly/annual income level you become responsible for dealing with payroll taxes. Also, consider reading the instructions to Schedule H I found them quite informative when we had to file for clients. http://www.irs.gov/pub/irs-pdf/f1040sh.pdf Form http://www.irs.gov/pub/irs-pdf/i1040sh.pdf Instructions As to execution, are you any good at doing payroll? If not, I urge you to get a payroll service. Here s IRS s list of providers http://www.irs.gov/efile/lists/0,,id=101120,00.html http://www.paycycle.com/external/business/resources.jsp PayCycle charges about $300/year, less the first year) Or use a Nanny tax service. They tend to charge about $400 or so per year but are apt to give you more customized help and advice http://www.4nannytaxes.com/ http://www.nannytax.com/ In fact, consider talking to Kathy Webb at 4nannytaxes she struck me as having a good grasp of the issues. http://www.4nannytaxes.com/INFO/media-contacts-nanny-taxes.cfm I hope that helps? And remember, you ll find answers to lots of questions about Nanny Tax, and other tax information, free. Where? At TaxMama.com [Note: If you were subscribed to the e-mailed TaxQuips, you d be getting other exciting news and tips. Please click on the subscribe link and join us.] To make your comments, please visit TaxMama s Parlor at TaxTwist.com.

Today TaxMama hears from Martin and several other MarketWatch readers, who say. In your April 14th article in the Tax Watch section of Marketwatch.com you advised that if you are short of cash to pay your taxes you should file for an extension and pay when you file. I believe that s incorrect: When you file for an extension you re supposed to pay the estimated amount owing. I want to thank for your notes. Especially those who pointed out that I had previously written that the extension is an extension of time to file not to pay. That means you re reading my column! And you re absolutely correct. IRS does want you to pay your taxes with the extension. Have you ever wondered what happens to you if you don t pay those taxes with the extension? Have you wondered what fiendish tortures IRS dreams up to inflict upon you to ensure that you never stray again? Actually, all that happens is you pay underpayment penalties and interest on the unpaid balance. Over six months, until October 15th, it amounts to a total of about 7% not the end of the world, if you just need a few more days or weeks to come up with the money. Much cheaper than most credit cards. Cool, isn t it? So, just because IRS wants something .doesn t mean we should give it to them. Does it? And remember, you ll find answers to lots of questions about tax tricks, and other tax information, free. Where? At TaxMama.com [Note: If you were subscribed to the e-mailed TaxQuips, you d be getting other exciting news and tips. Please click on the subscribe link and join us.] To make your comments, please visit TaxMama s Parlor at TaxTwist.com. Today TaxMama hears from Martin and several other MarketWatch readers, who say. In your April 14th article in the Tax Watch section of Marketwatch.com you advised that if you are short of cash to pay your taxes you should file for an extension and pay when you file. I believe that s incorrect: When you file for an extension you re supposed to pay the estimated amount owing. I want to thank for your notes. Especially those who pointed out that I had previously written that the extension is an extension of time to file not to pay. That means you re reading my column! And you re absolutely correct. IRS does want you to pay your taxes with the extension. Have you ever wondered what happens to you if you don t pay those taxes with the extension? Have you wondered what fiendish tortures IRS dreams up to inflict upon you to ensure that you never stray again? Actually, all that happens is you pay underpayment penalties and interest on the unpaid balance. Over six months, until October 15th, it amounts to a total of about 7% not the end of the world, if you just need a few more days or weeks to come up with the money. Much cheaper than most credit cards. Cool, isn t it? So, just because IRS wants something .doesn t mean we should give it to them. Does it? And remember, you ll find answers to lots of questions about tax tricks, and other tax information, free. Where? At TaxMama.com [Note: If you were subscribed to the e-mailed TaxQuips, you d be getting other exciting news and tips. Please click on the subscribe link and join us.] To make your comments, please visit TaxMama s Parlor at TaxTwist.com.

Today TaxMama hears from Georgette in the Tax Parlor, who says. While I assume that I should be reporting the income I earn online, ClickBank in particular, I am unsure about state tax for PA. I am not charging state tax for digital downloads. So do I only have to report the income I make to the federal government on my tax returns? Or is there something in particular I should be doing? Hi Georgette, Ah, come on my friend, you know the answer to this. You live in PA, report all your income to both IRS and your state. OK, your concern is the sales tax you re not charging on your downloads. You should be charging sales tax to anyone with a PA address. So go forth and contact your state s sales tax department and get set up. If your sales in PA were minor for last year (like $500 or less), don t sweat last year. If they were $1,000 or more file returns for last year and pay the penalties. (In between those numbers use your best judgement.) And Georgette, if you re really planning to make a decent living online, it s time to treat your business like a business. First thing get a good local tax professional to help you. And if you can t find one locally, let me know and I ll try to point to someone online who can help you. OK? And remember, you ll find answers to lots of questions about online income, and other tax information, free. Where? At TaxMama.com [Note: If you were subscribed to the e-mailed TaxQuips, you d be getting other exciting news and tips. Please click on the subscribe link and join us.] To make your comments, please visit TaxMama s Parlor at TaxTwist.com. Today TaxMama hears from Georgette in the Tax Parlor, who says. While I assume that I should be reporting the income I earn online, ClickBank in particular, I am unsure about state tax for PA. I am not charging state tax for digital downloads. So do I only have to report the income I make to the federal government on my tax returns? Or is there something in particular I should be doing? Hi Georgette, Ah, come on my friend, you know the answer to this. You live in PA, report all your income to both IRS and your state. OK, your concern is the sales tax you re not charging on your downloads. You should be charging sales tax to anyone with a PA address. So go forth and contact your state s sales tax department and get set up. If your sales in PA were minor for last year (like $500 or less), don t sweat last year. If they were $1,000 or more file returns for last year and pay the penalties. (In between those numbers use your best judgement.) And Georgette, if you re really planning to make a decent living online, it s time to treat your business like a business. First thing get a good local tax professional to help you. And if you can t find one locally, let me know and I ll try to point to someone online who can help you. OK? And remember, you ll find answers to lots of questions about online income, and other tax information, free. Where? At TaxMama.com [Note: If you were subscribed to the e-mailed TaxQuips, you d be getting other exciting news and tips. Please click on the subscribe link and join us.] To make your comments, please visit TaxMama s Parlor at TaxTwist.com.

Today TaxMama hears from Sylvia in the Tax Parlor, who tells us. After many years in business, my husband got an EIN last year so he could send out 1099s. Well, just after we finished filing our joint tax return this year, he gets a letter from IRS saying he has to file a quarterly Form 941. We don t have any employees. Can t we just file annually, the way we always have? Dear Sylvia, Yes, I ll bet that s confusing. But don t worry. Life won t have to change just because you got an employer identification number. The Form 941 is used to report wages and payroll tax withholding for his employees. http://www.irs.gov/pub/irs-pdf/f941.pdf If your husband doesn t have any employees, put -0- on all the lines. Check the box on line 16 of the form where it says he has stopped paying wages. Have him sign it and send it in before the end of this month. IRS won t bother him again until he gets employees. And remember, you ll find answers to lots of questions about filing requirements, and other tax information, free. Where? At TaxMama.com [Note: If you were subscribed to the e-mailed TaxQuips, you d be getting other exciting news and tips. Please click on the subscribe link and join us.] To make your comments, please visit TaxMama s Parlor at TaxTwist.com. Today TaxMama hears from Sylvia in the Tax Parlor, who tells us. After many years in business, my husband got an EIN last year so he could send out 1099s. Well, just after we finished filing our joint tax return this year, he gets a letter from IRS saying he has to file a quarterly Form 941. We don t have any employees. Can t we just file annually, the way we always have? Dear Sylvia, Yes, I ll bet that s confusing. But don t worry. Life won t have to change just because you got an employer identification number. The Form 941 is used to report wages and payroll tax withholding for his employees. http://www.irs.gov/pub/irs-pdf/f941.pdf If your husband doesn t have any employees, put -0- on all the lines. Check the box on line 16 of the form where it says he has stopped paying wages. Have him sign it and send it in before the end of this month. IRS won t bother him again until he gets employees. And remember, you ll find answers to lots of questions about filing requirements, and other tax information, free. Where? At TaxMama.com [Note: If you were subscribed to the e-mailed TaxQuips, you d be getting other exciting news and tips. Please click on the subscribe link and join us.] To make your comments, please visit TaxMama s Parlor at TaxTwist.com.

TaxMama has so many questions in the Tax Parlor and from her MarketWatch article this week, that I ve spent about three times as many hours answering them. Many of the answers are posted in the Tax Parlor http://taxtwist.com/forum.php?varset=s:13-pm:m-se:265-fo:13 They cover areas like dealing with out of state jobs, Whirlpool s buyout of Maytag stockholders, taxes discharged in bankruptcy, start-up costs, losing your deposit on a home or property, and lots more questions that come from you and affect your life. In addition, my marketing manager Sarah Hurty has been working hard to help me get some last-minute tax-cutting material written for Internet Marketing friends. So, I thought we should share that with you, too at IamTaxSavvy.com http://www.iamtaxsavvy.com . The folks at NATP sent me an article with last minute tips, too, so you ll find a link to that on our home page http://taxtwist.com and also the link to all the states and their extension deadlines. Naturally, Marketwatch.com has my Last Minute and April To-Do articles in the Tax Center http://www.marketwatch.com/pf/taxes/ . I wanted you to have as many options as possible. (Incidentally, you ll find lots more resources at BankRate.com, too http://www.bankrate.com/brm/news/news_taxes_home.asp . And for those of you who need to pay your taxes by credit card, I ve gathered a bunch of deals with 0% rate cards, cards, with lots of mileage bonuses, and cash back. You ll find them in TaxMama s credit card center. http://taxtwist.com/element.php?varset=s:13-pm:p-se:262-e:80 . Naturally, I couldn t let this whole Imus thing go by, so you ll find my opinion on the state of free speech in our world today. You probably won t agree, but it s my soapbox, so but http://taxtwist.com/article.php?varset=s:13-pm:p-se:274-e:99-a:506 There s more you ll find it by exploring TaxTwist.com and the Tax Parlor. And remember, you ll find answers to lots of questions about last-minute questions and other tax information, free. Where? At TaxMama.com [Note: If you were subscribed to the e-mailed TaxQuips, you d be getting other exciting news and tips. Please click on the subscribe link and join us.] To make your comments, please visit TaxMama s Parlor at TaxTwist.com. TaxMama has so many questions in the Tax Parlor and from her MarketWatch article this week, that I ve spent about three times as many hours answering them. Many of the answers are posted in the Tax Parlor http://taxtwist.com/forum.php?varset=s:13-pm:m-se:265-fo:13 They cover areas like dealing with out of state jobs, Whirlpool s buyout of Maytag stockholders, taxes discharged in bankruptcy, start-up costs, losing your deposit on a home or property, and lots more questions that come from you and affect your life. In addition, my marketing manager Sarah Hurty has been working hard to help me get some last-minute tax-cutting material written for Internet Marketing friends. So, I thought we should share that with you, too at IamTaxSavvy.com http://www.iamtaxsavvy.com . The folks at NATP sent me an article with last minute tips, too, so you ll find a link to that on our home page http://taxtwist.com and also the link to all the states and their extension deadlines. Naturally, Marketwatch.com has my Last Minute and April To-Do articles in the Tax Center http://www.marketwatch.com/pf/taxes/ . I wanted you to have as many options as possible. (Incidentally, you ll find lots more resources at BankRate.com, too http://www.bankrate.com/brm/news/news_taxes_home.asp . And for those of you who need to pay your taxes by credit card, I ve gathered a bunch of deals with 0% rate cards, cards, with lots of mileage bonuses, and cash back. You ll find them in TaxMama s credit card center. http://taxtwist.com/element.php?varset=s:13-pm:p-se:262-e:80 . Naturally, I couldn t let this whole Imus thing go by, so you ll find my opinion on the state of free speech in our world today. You probably won t agree, but it s my soapbox, so but http://taxtwist.com/article.php?varset=s:13-pm:p-se:274-e:99-a:506 There s more you ll find it by exploring TaxTwist.com and the Tax Parlor. And remember, you ll find answers to lots of questions about last-minute questions and other tax information, free. Where? At TaxMama.com [Note: If you were subscribed to the e-mailed TaxQuips, you d be getting other exciting news and tips. Please click on the subscribe link and join us.] To make your comments, please visit TaxMama s Parlor at TaxTwist.com.

Today TaxMama hears from Plucky in the Tax Parlor, who tells us. I started a business in 2006 and incurred costs exceeding $5,000. I do not have the appropriate documentation for all costs. Can I still deduct the standard $5,000 deduction? Hi April, First of all start up costs are essentially the costs you incur before your business opens its doors to customers. So, from the day you started earning income, those are no longer start up costs. So your start-up costs may be less than you think. The rest of the costs are operating costs. Even if they generate a loss of over $5,000. Now, what about not having documentation for what you spent? Oh that s a toughie. See if you can get documentation. Checks and credit card statements will help. The companies you spent money with may have records. If you paid cash and got something tangible, like office equipment, supplies, etc. and no longer have the receipt at least take a photo of what you bought and attach notes explaining the cost and date of purchase. Record these amounts and dates into your accounting system. DO SOMETHING to document your expenses. And never, ever spend cash again. Use a check or credit card. It s always easier to reconstruct expenses when a third party (like a bank or credit card company) also have copies. Also, since you re in business, READ THIS BOOK. Small Business Taxes Made Easy http://www.taxmama.com/AskTaxMama/book/ It will help you with your record-keeping and it will save you a ton of money as your business grows. And remember, you ll find answers to lots of questions about start-up costs, documentation, and other tax information, free. Where? At TaxMama.com [Note: If you were subscribed to the e-mailed TaxQuips, you d be getting other exciting news and tips. Please click on the subscribe link and join us.] To make your comments, please visit TaxMama s Parlor at TaxTwist.com. Today TaxMama hears from Plucky in the Tax Parlor, who tells us. I started a business in 2006 and incurred costs exceeding $5,000. I do not have the appropriate documentation for all costs. Can I still deduct the standard $5,000 deduction? Hi April, First of all start up costs are essentially the costs you incur before your business opens its doors to customers. So, from the day you started earning income, those are no longer start up costs. So your start-up costs may be less than you think. The rest of the costs are operating costs. Even if they generate a loss of over $5,000. Now, what about not having documentation for what you spent? Oh that s a toughie. See if you can get documentation. Checks and credit card statements will help. The companies you spent money with may have records. If you paid cash and got something tangible, like office equipment, supplies, etc. and no longer have the receipt at least take a photo of what you bought and attach notes explaining the cost and date of purchase. Record these amounts and dates into your accounting system. DO SOMETHING to document your expenses. And never, ever spend cash again. Use a check or credit card. It s always easier to reconstruct expenses when a third party (like a bank or credit card company) also have copies. Also, since you re in business, READ THIS BOOK. Small Business Taxes Made Easy http://www.taxmama.com/AskTaxMama/book/ It will help you with your record-keeping and it will save you a ton of money as your business grows. And remember, you ll find answers to lots of questions about start-up costs, documentation, and other tax information, free. Where? At TaxMama.com [Note: If you were subscribed to the e-mailed TaxQuips, you d be getting other exciting news and tips. Please click on the subscribe link and join us.] To make your comments, please visit TaxMama s Parlor at TaxTwist.com.

Today TaxMama hears from WW in the Tax Parlor, who tells us. I have a full time job in a corporation. I also teach Yoga part time as an employee. My full time job has nothing to do with Yoga. Can I deduct the cost of Yoga teacher training and Yoga books? Dear WW, You may certainly enter those costs on your Form 2106 as employee business expenses or even just directly on Schedule A as miscellaneous deductions, if you just have a couple of lines of expenses. There are only two problems. 1) Before you can use these expenses, you first have to deduct 2% of your adjusted gross income that s the total of all your income, at the bottom of page 1 of your Form 1040. Usually, if you have a full-time job, too, that s enough to wipe the out the couple of hundred dollars of costs you have a yoga instructor. 2) And you need to itemize. If you weren t itemizing already, because of a mortgage or high contributions or state taxes, these expenses won t be enough to enable you to itemize. Definitely run the numbers and see what happens, just in case you DO have enough expenses to itemize! I always check, just in case. So, while, yes, you re entitled to the deductions, odds are, you won t get any benefit from them. And remember, you ll find answers to lots of questions about second jobs and other tax information, free. Where? At TaxMama.com [Note: If you were subscribed to the e-mailed TaxQuips, you d be getting other exciting news and tips. Please click on the subscribe link and join us.] To make your comments, please visit TaxMama s Parlor at TaxTwist.com. Today TaxMama hears from WW in the Tax Parlor, who tells us. I have a full time job in a corporation. I also teach Yoga part time as an employee. My full time job has nothing to do with Yoga. Can I deduct the cost of Yoga teacher training and Yoga books? Dear WW, You may certainly enter those costs on your Form 2106 as employee business expenses or even just directly on Schedule A as miscellaneous deductions, if you just have a couple of lines of expenses. There are only two problems. 1) Before you can use these expenses, you first have to deduct 2% of your adjusted gross income that s the total of all your income, at the bottom of page 1 of your Form 1040. Usually, if you have a full-time job, too, that s enough to wipe the out the couple of hundred dollars of costs you have a yoga instructor. 2) And you need to itemize. If you weren t itemizing already, because of a mortgage or high contributions or state taxes, these expenses won t be enough to enable you to itemize. Definitely run the numbers and see what happens, just in case you DO have enough expenses to itemize! I always check, just in case. So, while, yes, you re entitled to the deductions, odds are, you won t get any benefit from them. And remember, you ll find answers to lots of questions about second jobs and other tax information, free. Where? At TaxMama.com [Note: If you were subscribed to the e-mailed TaxQuips, you d be getting other exciting news and tips. Please click on the subscribe link and join us.] To make your comments, please visit TaxMama s Parlor at TaxTwist.com.

Today TaxMama hears from Fran in the Tax Parlor, who tells us. My mother died in 2006 and received Social Security monthly, getting about $700 per month. In addition, she had investments totaling about $60,000 that paid less than $5,000. Do I need to file a return? If so, what info and forms do I need? Can I do this online? Dear Fran, So sorry to learn about your mother. I ll bet you miss her. Yes, you should file. Just to close the years and get everything settled. 1) File a Form 1040 or 1040A for your mother covering the income received during the period from January 1 to the date of her death. http://www.irs.gov/pub/irs-pdf/f1040.pdf 2) File a Form 1041 and check the box that says Decedent s Estate at the top left corner of the form. This will cover income received from the date of death to the end of the year or until the assets were distributed to her heirs. http://www.irs.gov/pub/irs-pdf/f1041.pdf You will need a K-1 (or K-1s) with the Form 1041. You will need a separate K-1 for each person who inherits and receives a part of the assets and income from those assets. In the meantime, if you need time to get these done, file a Form 4868 to get an extension for your mother. http://www.irs.gov/pub/irs-pdf/f4868.pdf And file a Form 7004 to get an extension of time to file the Form 1041. http://www.irs.gov/pub/irs-pdf/f7004.pdf Most likely, your mother will not owe any taxes. HOWEVER, since the interest income from those K-1s gets reported on the tax returns of the heirs, they may owe additional income tax. So have them all file extensions (Form 4868) for their/your tax returns. If they ve already filed their returns, they can amend (Form 1040X) within 3 years. Or wait for IRS to send the bill in about 15 months. And no, I m afraid there is no way for you to prepare the 1041s online at this time. And remember, you ll find answers to lots of questions about recent deaths and other tax information, free. Where? At TaxMama.com [Note: If you were subscribed to the e-mailed TaxQuips, you d be getting other exciting news and tips. Please click on the subscribe link and join us.] To make your comments, please visit TaxMama s Parlor at TaxTwist.com. Today TaxMama hears from Fran in the Tax Parlor, who tells us. My mother died in 2006 and received Social Security monthly, getting about $700 per month. In addition, she had investments totaling about $60,000 that paid less than $5,000. Do I need to file a return? If so, what info and forms do I need? Can I do this online? Dear Fran, So sorry to learn about your mother. I ll bet you miss her. Yes, you should file. Just to close the years and get everything settled. 1) File a Form 1040 or 1040A for your mother covering the income received during the period from January 1 to the date of her death. http://www.irs.gov/pub/irs-pdf/f1040.pdf 2) File a Form 1041 and check the box that says Decedent s Estate at the top left corner of the form. This will cover income received from the date of death to the end of the year or until the assets were distributed to her heirs. http://www.irs.gov/pub/irs-pdf/f1041.pdf You will need a K-1 (or K-1s) with the Form 1041. You will need a separate K-1 for each person who inherits and receives a part of the assets and income from those assets. In the meantime, if you need time to get these done, file a Form 4868 to get an extension for your mother. http://www.irs.gov/pub/irs-pdf/f4868.pdf And file a Form 7004 to get an extension of time to file the Form 1041. http://www.irs.gov/pub/irs-pdf/f7004.pdf Most likely, your mother will not owe any taxes. HOWEVER, since the interest income from those K-1s gets reported on the tax returns of the heirs, they may owe additional income tax. So have them all file extensions (Form 4868) for their/your tax returns. If they ve already filed their returns, they can amend (Form 1040X) within 3 years. Or wait for IRS to send the bill in about 15 months. And no, I m afraid there is no way for you to prepare the 1041s online at this time. And remember, you ll find answers to lots of questions about recent deaths and other tax information, free. Where? At TaxMama.com [Note: If you were subscribed to the e-mailed TaxQuips, you d be getting other exciting news and tips. Please click on the subscribe link and join us.] To make your comments, please visit TaxMama s Parlor at TaxTwist.com.

Today TaxMama hears from Ray in the Tax Parlor, who tells us. Two friends and I own some rental homes. One of us says he can deduct not only the total interest paid on one of the properties, but also what he calls the deferred interest. In other words, the unpaid interest by which the principal on the first mortgage increased last year. I say he can t until we sell the property. Are there some good, solid references I can provide him? Thanks. Dear Ray, Wow. You re right. I thought I d be able to quickly point to an obvious place in the IRS publications about mortgage interest Pub 936 and Pub 530 that explain negative amortization. There s nothing there. There s nothing immediately findable on the IRS site. Nor even in their mortgage questionnaire (which happens to be quite nifty). http://www.irs.gov/individuals/article/0,,id=132143,00.html (So I brought this to IRS s attention, thanks to your question.) Here s the concept in a Revenue Ruling 80-248, where IRS talks about reverse mortgages. http://www.taxlinks.com/rulings/1980/revrul80-248.htm In item (2), IRS explains that although interest is deductible when paid or accrued the accrued only refers to taxpayers who report their income and expenses on an accrual basis. You and your partners are cash-basis taxpayers. So you may not deduct the interest until you actually pay it. And remember, you ll find answers to lots of questions about negative amortization and other tax information, free. Where? At TaxMama.com [Note: If you were subscribed to the e-mailed TaxQuips, you d be getting other exciting news and tips. Please click on the subscribe link and join us.] To make your comments, please visit TaxMama s Parlor at TaxTwist.com. Today TaxMama hears from Ray in the Tax Parlor, who tells us. Two friends and I own some rental homes. One of us says he can deduct not only the total interest paid on one of the properties, but also what he calls the deferred interest. In other words, the unpaid interest by which the principal on the first mortgage increased last year. I say he can t until we sell the property. Are there some good, solid references I can provide him? Thanks. Dear Ray, Wow. You re right. I thought I d be able to quickly point to an obvious place in the IRS publications about mortgage interest Pub 936 and Pub 530 that explain negative amortization. There s nothing there. There s nothing immediately findable on the IRS site. Nor even in their mortgage questionnaire (which happens to be quite nifty). http://www.irs.gov/individuals/article/0,,id=132143,00.html (So I brought this to IRS s attention, thanks to your question.) Here s the concept in a Revenue Ruling 80-248, where IRS talks about reverse mortgages. http://www.taxlinks.com/rulings/1980/revrul80-248.htm In item (2), IRS explains that although interest is deductible when paid or accrued the accrued only refers to taxpayers who report their income and expenses on an accrual basis. You and your partners are cash-basis taxpayers. So you may not deduct the interest until you actually pay it. And remember, you ll find answers to lots of questions about negative amortization and other tax information, free. Where? At TaxMama.com [Note: If you were subscribed to the e-mailed TaxQuips, you d be getting other exciting news and tips. Please click on the subscribe link and join us.] To make your comments, please visit TaxMama s Parlor at TaxTwist.com.

Today TaxMama hears from Alejandro, in the Tax Parlor, who tells us. I have a regular 9 to 5 job and also have my own business. I want to know if I can both contribute to a regular 401(k)plan and also invest in a 401(k) plan? I would therefore be exceeding the $44K per year allowance in the SEP IRA! Is that permissible? Hi Alejandro, Sure, you may contribute to your job s 401(k) plan and your own SEP. BUT, you may NOT exceed the annual limits. There are other things you may do but they re expensive. So unless you re making a lot of money in your own business, and you don t need the money AND you re going to be making that kind of money for the next 5 years or so stick to the limits. Otherwise, it s time to sit down with a good, local tax professional to do some planning and a good investment advisor to put that money to work for you. And remember, you ll find answers to lots of questions about retirement plans and other tax information, free. Where? At TaxMama.com [Note: If you were subscribed to the e-mailed TaxQuips, you d be getting other exciting news and tips. Please click on the subscribe link and join us.] To make your comments, please visit TaxMama s Parlor at TaxTwist.com. Today TaxMama hears from Alejandro, in the Tax Parlor, who tells us. I have a regular 9 to 5 job and also have my own business. I want to know if I can both contribute to a regular 401(k)plan and also invest in a 401(k) plan? I would therefore be exceeding the $44K per year allowance in the SEP IRA! Is that permissible? Hi Alejandro, Sure, you may contribute to your job s 401(k) plan and your own SEP. BUT, you may NOT exceed the annual limits. There are other things you may do but they re expensive. So unless you re making a lot of money in your own business, and you don t need the money AND you re going to be making that kind of money for the next 5 years or so stick to the limits. Otherwise, it s time to sit down with a good, local tax professional to do some planning and a good investment advisor to put that money to work for you. And remember, you ll find answers to lots of questions about retirement plans and other tax information, free. Where? At TaxMama.com [Note: If you were subscribed to the e-mailed TaxQuips, you d be getting other exciting news and tips. Please click on the subscribe link and join us.] To make your comments, please visit TaxMama s Parlor at TaxTwist.com.

Today TaxMama wants to alert you to the due dates in your state. You re all aware that IRS changed the due date of your personal tax return to April 17th this year, right. But did your state do the same? At last week s breakfast meeting of the San Fernando Valley Chapter of the California Society of Enrolled Agents, Doug Thorburn, one of our Northridge, CA enrolled agents pointed out that the California filing deadline is April 16, 2007. Which would mean that anyone filing their tax return on IRS s due date would be late for California. So, I frantically started looking at the various states to see who else would get into trouble. Well, it turns out that California changed their date. Returns are due on April 17. And between last Thursday and today, just about every other state has come into compliance except Arizona. Their legislature is still working on it and do expect their filing date to join IRS s. In case you re looking for details or links to your state s website, I ve put up a State page for you with links to all the sites. http://taxtwist.com/article.php?varset=s:13-pm:p-se:264-e:66-a:487 And remember, you ll find answers to lots of questions about due dates and other tax information, free. Where? At TaxMama.com [Note: If you were subscribed to the e-mailed TaxQuips, you d be getting other exciting news and tips. Please click on the subscribe link and join us.] To make your comments, please visit TaxMama s Parlor at TaxTwist.com. Today TaxMama wants to alert you to the due dates in your state. You re all aware that IRS changed the due date of your personal tax return to April 17th this year, right. But did your state do the same? At last week s breakfast meeting of the San Fernando Valley Chapter of the California Society of Enrolled Agents, Doug Thorburn, one of our Northridge, CA enrolled agents pointed out that the California filing deadline is April 16, 2007. Which would mean that anyone filing their tax return on IRS s due date would be late for California. So, I frantically started looking at the various states to see who else would get into trouble. Well, it turns out that California changed their date. Returns are due on April 17. And between last Thursday and today, just about every other state has come into compliance except Arizona. Their legislature is still working on it and do expect their filing date to join IRS s. In case you re looking for details or links to your state s website, I ve put up a State page for you with links to all the sites. http://taxtwist.com/article.php?varset=s:13-pm:p-se:264-e:66-a:487 And remember, you ll find answers to lots of questions about due dates and other tax information, free. Where? At TaxMama.com [Note: If you were subscribed to the e-mailed TaxQuips, you d be getting other exciting news and tips. Please click on the subscribe link and join us.] To make your comments, please visit TaxMama s Parlor at TaxTwist.com.

Today TaxMama hears from Brain, in the Tax Parlor, who tells us. Recently I won $4,000 in a state lottery. I spent about $500 for the purchase of a batch of lottery tickets all at once. I was wondering if I could subtract the cost from the proceeds I won? Dear Brain, I ll bet that s not the only time you bought tickets this year. Yes, you may be able to deduct the costs of those tickets and all the other tickets you bought in the year of your win. Only, you can t net the winnings and losses. You report the income on page 1of your Form 1040 (long form). Then, you will have to itemize use Schedule A. http://www.irs.gov/pub/irs-pdf/f1040sab.pdf You ll report your gambling losses (or investments) on a special line Line 27 Other Miscellaneous Deductions. This will allow you to deduct the full amount of your gambling costs. OK, that s the good news. The bad news is, if don t normally itemize, you probably still won t be able to. Or if you do, you ll replace your standard deduction with these itemized deductions and you ll only get the benefit of a few extra dollars of deduction. Yes, it s a rip-off. It s only meaningful if you have really big wins, with big losses to go along with them. Hey, enjoy the money! And remember, you ll find answers to lots of questions about winnings and other tax information, free. Where? At TaxMama.com [Note: If you were subscribed to the e-mailed TaxQuips, you d be getting other exciting news and tips. Please click on the subscribe link and join us.] To make your comments, please visit TaxMama s Parlor at TaxTwist.com. Today TaxMama hears from Brain, in the Tax Parlor, who tells us. Recently I won $4,000 in a state lottery. I spent about $500 for the purchase of a batch of lottery tickets all at once. I was wondering if I could subtract the cost from the proceeds I won? Dear Brain, I ll bet that s not the only time you bought tickets this year. Yes, you may be able to deduct the costs of those tickets and all the other tickets you bought in the year of your win. Only, you can t net the winnings and losses. You report the income on page 1of your Form 1040 (long form). Then, you will have to itemize use Schedule A. http://www.irs.gov/pub/irs-pdf/f1040sab.pdf You ll report your gambling losses (or investments) on a special line Line 27 Other Miscellaneous Deductions. This will allow you to deduct the full amount of your gambling costs. OK, that s the good news. The bad news is, if don t normally itemize, you probably still won t be able to. Or if you do, you ll replace your standard deduction with these itemized deductions and you ll only get the benefit of a few extra dollars of deduction. Yes, it s a rip-off. It s only meaningful if you have really big wins, with big losses to go along with them. Hey, enjoy the money! And remember, you ll find answers to lots of questions about winnings and other tax information, free. Where? At TaxMama.com [Note: If you were subscribed to the e-mailed TaxQuips, you d be getting other exciting news and tips. Please click on the subscribe link and join us.] To make your comments, please visit TaxMama s Parlor at TaxTwist.com.

Today TaxMama hears from Stephen, a MarketWatch reader, who has this question. I sold some stocks on 12-27-06. The settlement date was 1-2-07. The stock brokerage company sent me a Form 1099 without this sale because the settlement date was after 2006. Can I report this sale in my 2006 tax return? Will the IRS question me because the Form 1099 they received from my brokerage company will not include the sale? Hi Stephen I understand your confusion. You can do it either way, if you like. Technically, for tax purposes, IRS Rev. Rul. 66-97, 1966-1 C.B. 190 , states that both stocks and bonds are considered acquired or sold on the respective trade dates. The only thing is, if you report the sale in 2006, the 1099 that IRS will get for 2007 will include that sale. Will you remember next year, that you ve already reported the transaction? Or will you report it again? IRS matches those 1099s to your tax return. If you report more sales than the 1099s show, you won t have a problem. But if you report a lower dollar amount in sales next year, even though you re correct, you will get a letter from IRS asking for the missing information. So, with that in mind it s up to you! And remember, you ll find answers to lots of questions about gains and other tax information, free. Where? At TaxMama.com [Note: If you were subscribed to the e-mailed TaxQuips, you d be getting other exciting news and tips. Please click on the subscribe link and join us.] To make your comments, please visit TaxMama s Parlor at TaxTwist.com. Today TaxMama hears from Stephen, a MarketWatch reader, who has this question. I sold some stocks on 12-27-06. The settlement date was 1-2-07. The stock brokerage company sent me a Form 1099 without this sale because the settlement date was after 2006. Can I report this sale in my 2006 tax return? Will the IRS question me because the Form 1099 they received from my brokerage company will not include the sale? Hi Stephen I understand your confusion. You can do it either way, if you like. Technically, for tax purposes, IRS Rev. Rul. 66-97, 1966-1 C.B. 190 , states that both stocks and bonds are considered acquired or sold on the respective trade dates. The only thing is, if you report the sale in 2006, the 1099 that IRS will get for 2007 will include that sale. Will you remember next year, that you ve already reported the transaction? Or will you report it again? IRS matches those 1099s to your tax return. If you report more sales than the 1099s show, you won t have a problem. But if you report a lower dollar amount in sales next year, even though you re correct, you will get a letter from IRS asking for the missing information. So, with that in mind it s up to you! And remember, you ll find answers to lots of questions about gains and other tax information, free. Where? At TaxMama.com [Note: If you were subscribed to the e-mailed TaxQuips, you d be getting other exciting news and tips. Please click on the subscribe link and join us.] To make your comments, please visit TaxMama s Parlor at TaxTwist.com.

Today TaxMama hears from Clay in California, who tells us. I invested in a company that failed. Where is that handled on the 1040 form? I have had other failures and I was only allowed to deduct $3,000 per year. I have a substantial capital gain this year on a sale of properties. Hi Clay It s not totally clear how you invested in the company. Are you talking about having bought stock or an interest in an LLC or other entity and the stock or share becomes worthless? Yes? That s easy. Just report the purchase on Schedule D. Enter 0- for the sales price. Your sale date will be the date the company shut down, or the date you learned the company was no longer operating. In the past, when you were only able to deduct $3,000 of your loss, that was because you had no gains to offset the losses. This time, you ll be able to deduct all your losses from the portion of the gains that are reported on Scheduled D PLUS $3,000 in losses, if the gains haven t used up the losses. Does this help? And remember, you ll find answers to lots of questions about capital losses and other tax information, free. Where? At TaxMama.com [Note: If you were subscribed to the e-mailed TaxQuips, you d be getting other exciting news and tips. Please click on the subscribe link and join us.] To make your comments, please visit TaxMama s Parlor at TaxTwist.com. Today TaxMama hears from Clay in California, who tells us. I invested in a company that failed. Where is that handled on the 1040 form? I have had other failures and I was only allowed to deduct $3,000 per year. I have a substantial capital gain this year on a sale of properties. Hi Clay It s not totally clear how you invested in the company. Are you talking about having bought stock or an interest in an LLC or other entity and the stock or share becomes worthless? Yes? That s easy. Just report the purchase on Schedule D. Enter 0- for the sales price. Your sale date will be the date the company shut down, or the date you learned the company was no longer operating. In the past, when you were only able to deduct $3,000 of your loss, that was because you had no gains to offset the losses. This time, you ll be able to deduct all your losses from the portion of the gains that are reported on Scheduled D PLUS $3,000 in losses, if the gains haven t used up the losses. Does this help? And remember, you ll find answers to lots of questions about capital losses and other tax information, free. Where? At TaxMama.com [Note: If you were subscribed to the e-mailed TaxQuips, you d be getting other exciting news and tips. Please click on the subscribe link and join us.] To make your comments, please visit TaxMama s Parlor at TaxTwist.com.

Today TaxMama wants to tell you a little bit about my exciting experience last week at Jennifer Openshaw s Women in the Millionaire Zone Conference. Originally, the organizers expected about 400 people. But from the feedback we speakers were getting, we suggested they prepare for more. The room was set up for over 700 and it was full. The speakers were amazing. Jennifer pointed out that you have a 1 in 6 chance of becoming disabled in your lifetime. So, it s a good idea to develop wealth to take care of you. On the other hand, there are 25,000 new millionaires being created every day. And there s no reason you can t be one of them! Speakers included Lisa Vander the real estate investment advisor who generally shares the stage with Donald Trump and Robert Kiyosaki and is advisor to the players of the NBA. Shari Fitzpatrick of Sheri s Berries Fame, and Hilary Kramer, AOL Finance Editor and Nightly Business Report Commentator and Kathy Ireland model turned billionaire. And of course, your TaxMama. You can find more details in the article online, including an invitation to a special retreat this weekend so you can start your own path into the Millionaire Zone. CLICK HERE And remember, you ll find answers to lots of questions about getting rich and other tax information, free. Where? At TaxMama.com [Note: If you were subscribed to the e-mailed TaxQuips, you d be getting other exciting news and tips. Please click on the subscribe link and join us.] To make your comments, please visit TaxMama s Parlor at TaxTwist.com. Today TaxMama wants to tell you a little bit about my exciting experience last week at Jennifer Openshaw s Women in the Millionaire Zone Conference. Originally, the organizers expected about 400 people. But from the feedback we speakers were getting, we suggested they prepare for more. The room was set up for over 700 and it was full. The speakers were amazing. Jennifer pointed out that you have a 1 in 6 chance of becoming disabled in your lifetime. So, it s a good idea to develop wealth to take care of you. On the other hand, there are 25,000 new millionaires being created every day. And there s no reason you can t be one of them! Speakers included Lisa Vander the real estate investment advisor who generally shares the stage with Donald Trump and Robert Kiyosaki and is advisor to the players of the NBA. Shari Fitzpatrick of Sheri s Berries Fame, and Hilary Kramer, AOL Finance Editor and Nightly Business Report Commentator and Kathy Ireland model turned billionaire. And of course, your TaxMama. You can find more details in the article online, including an invitation to a special retreat this weekend so you can start your own path into the Millionaire Zone. CLICK HERE And remember, you ll find answers to lots of questions about getting rich and other tax information, free. Where? At TaxMama.com [Note: If you were subscribed to the e-mailed TaxQuips, you d be getting other exciting news and tips. Please click on the subscribe link and join us.] To make your comments, please visit TaxMama s Parlor at TaxTwist.com.

Today TaxMama hears from Bruce in the Tax Parlor, asks an interesting question. I filed 1997 taxes well past the 3-year statute of limitations to get my refund. Naturally IRS denied my request for my $8,000, saying I had filed too late. Is there any way to get IRS to release that refund? Or can I take a deduction for the $8,000 refund that I ve lost? Dear Bruce, Why in the world did you wait all these years to file a tax return when you had a refund that large? To answer your last question first If you have a really good reason, like being in an insane asylum, being a victim of total amnesia, being in a (documented) drunken or drug-induced stupor in other words, if you were totally incapacitated all that time, IRS might accept that as an excuse for not filing and consider giving you credit for the refund. No, Bruce, I am not being mean, insulting or sarcastic. Those are valid reasons that IRS will accept. If you were busy, distracted, or taking care of others but not 100% of the time, IRS won t accept that as an excuse. The law says that you must file your tax returns within three years of the due date i.e. by April 15, 2001 (for 1997) in order to be able to get your refund. None of those other things you suggest are available solutions. And I ve never heard of anyone being able to deduct a loss for not getting their refund. But I like that idea. It s worth trying to see what happens. Report it on Schedule D as a capital loss. Only, be prepared to defend it! It may need to go to Tax Court or beyond. But that would make an interesting case. And remember, you ll find answers to lots of questions about tax refunds and other tax information, free. Where? At TaxMama.com [Note: If you were subscribed to the e-mailed TaxQuips, you d be getting other exciting news and tips. Please click on the subscribe link and join us.] To make your comments, please visit TaxMama s Parlor at TaxTwist.com. Today TaxMama hears from Bruce in the Tax Parlor, asks an interesting question. I filed 1997 taxes well past the 3-year statute of limitations to get my refund. Naturally IRS denied my request for my $8,000, saying I had filed too late. Is there any way to get IRS to release that refund? Or can I take a deduction for the $8,000 refund that I ve lost? Dear Bruce, Why in the world did you wait all these years to file a tax return when you had a refund that large? To answer your last question first If you have a really good reason, like being in an insane asylum, being a victim of total amnesia, being in a (documented) drunken or drug-induced stupor in other words, if you were totally incapacitated all that time, IRS might accept that as an excuse for not filing and consider giving you credit for the refund. No, Bruce, I am not being mean, insulting or sarcastic. Those are valid reasons that IRS will accept. If you were busy, distracted, or taking care of others but not 100% of the time, IRS won t accept that as an excuse. The law says that you must file your tax returns within three years of the due date i.e. by April 15, 2001 (for 1997) in order to be able to get your refund. None of those other things you suggest are available solutions. And I ve never heard of anyone being able to deduct a loss for not getting their refund. But I like that idea. It s worth trying to see what happens. Report it on Schedule D as a capital loss. Only, be prepared to defend it! It may need to go to Tax Court or beyond. But that would make an interesting case. And remember, you ll find answers to lots of questions about tax refunds and other tax information, free. Where? At TaxMama.com [Note: If you were subscribed to the e-mailed TaxQuips, you d be getting other exciting news and tips. Please click on the subscribe link and join us.] To make your comments, please visit TaxMama s Parlor at TaxTwist.com.

Today TaxMama hears from Mack in the Tax Parlor, who wants to know. Give me your spill on making money from home as a notary public? I ve been a notary for over a year now, but haven t really done anything with it. Could you give me some pointers? Hi Mack, I don t know where you are, but here in California they have something called a traveling notary. They go out to people s home or offices to get complex packages of documents signed for escrow companies or attorneys. See if that s available in your area and if the escrow companies can use your service. Around here, you typically collect about $150 per visit. Another thing you might consider, if there are a lot of immigrants in your area, is to sign up to be a Certified Acceptance Agent for IRS. http://www.irs.gov/businesses/small/international/article/0,,id=96671,00.html You would examine people s documents and certify to IRS that they are valid, so these people can file their applications to get an ITIN. The advantage to the foreigner is that they won t have to send their original documents to IRS with the application and risk losing their passports, birth certificates, etc. You would be listed on IRS s website, so people can find you. http://www.irs.gov/individuals/article/0,,id=96304,00.html You are welcome to charge whatever reasonable fee you can. You can get in touch with attorneys, tax professionals, banks and chambers of commerce in your area to let them know you re available. And remember, you ll find answers to lots of questions about net operating losses and other tax information, free. Where? At TaxMama.com [Note: If you were subscribed to the e-mailed TaxQuips, you d be getting other exciting news and tips. Please click on the subscribe link and join us.] To make your comments, please visit TaxMama s Parlor at TaxTwist.com. Today TaxMama hears from Mack in the Tax Parlor, who wants to know. Give me your spill on making money from home as a notary public? I ve been a notary for over a year now, but haven t really done anything with it. Could you give me some pointers? Hi Mack, I don t know where you are, but here in California they have something called a traveling notary. They go out to people s home or offices to get complex packages of documents signed for escrow companies or attorneys. See if that s available in your area and if the escrow companies can use your service. Around here, you typically collect about $150 per visit. Another thing you might consider, if there are a lot of immigrants in your area, is to sign up to be a Certified Acceptance Agent for IRS. http://www.irs.gov/businesses/small/international/article/0,,id=96671,00.html You would examine people s documents and certify to IRS that they are valid, so these people can file their applications to get an ITIN. The advantage to the foreigner is that they won t have to send their original documents to IRS with the application and risk losing their passports, birth certificates, etc. You would be listed on IRS s website, so people can find you. http://www.irs.gov/individuals/article/0,,id=96304,00.html You are welcome to charge whatever reasonable fee you can. You can get in touch with attorneys, tax professionals, banks and chambers of commerce in your area to let them know you re available. And remember, you ll find answers to lots of questions about net operating losses and other tax information, free. Where? At TaxMama.com [Note: If you were subscribed to the e-mailed TaxQuips, you d be getting other exciting news and tips. Please click on the subscribe link and join us.] To make your comments, please visit TaxMama s Parlor at TaxTwist.com.

Today TaxMama wants to talk about doing business in China. Andrew in the Tax Parlor told us that he had a devastating experience with shoddy products he received from China. Since you have to pre-pay, or provide a letter of credit, you generally don t get to see the quality of your order until after you have paid for the shipment and it s gone through customs. And you have no recourse. It s too costly to sue them from this distance. Unfortunately, this is a common practice when dealing with production facilities in China. I don t know why. Perhaps they think there are enough suckers born in enough minutes that they can steal from their customers and another will come along from whom they can steal again. Who knows? Regardless of the reason, it s a fact. And if you re contemplating getting anything manufactured in China or anywhere offshore for that matter, make sure that you spell out all the specifications of the production, including the materials. Then, BE THERE before they start your production run to inspect all the materials and set-ups. And STAY THERE until your products are produced and PACKED. Be sure to check that your shipment contains your order and not sloppy knock-offs. My friend faced a disaster like this 20 years ago. And despite having a buyer who was eager to buy everything we could produce; despite being in a position to provide generous returns on investment to all the investors they all lost their money. Because my friend wasn t in China during the production process. Since then, I ve advised clients who are dealing with China or other overseas producers to be present or to have a trusted agent present during the process. Those that have followed that advice have prospered. Greatly! Proving that you can do business in China and elsewhere if you invest your time and patience too, not just your money. And remember, you ll find answers to lots of questions about international business and other tax information, free. Where? At TaxMama.com [Note: If you were subscribed to the e-mailed TaxQuips, you d be getting other exciting news and tips. Please click on the subscribe link and join us.] To make your comments, please visit TaxMama s Parlor at TaxTwist.com. Today TaxMama wants to talk about doing business in China. Andrew in the Tax Parlor told us that he had a devastating experience with shoddy products he received from China. Since you have to pre-pay, or provide a letter of credit, you generally don t get to see the quality of your order until after you have paid for the shipment and it s gone through customs. And you have no recourse. It s too costly to sue them from this distance. Unfortunately, this is a common practice when dealing with production facilities in China. I don t know why. Perhaps they think there are enough suckers born in enough minutes that they can steal from their customers and another will come along from whom they can steal again. Who knows? Regardless of the reason, it s a fact. And if you re contemplating getting anything manufactured in China or anywhere offshore for that matter, make sure that you spell out all the specifications of the production, including the materials. Then, BE THERE before they start your production run to inspect all the materials and set-ups. And STAY THERE until your products are produced and PACKED. Be sure to check that your shipment contains your order and not sloppy knock-offs. My friend faced a disaster like this 20 years ago. And despite having a buyer who was eager to buy everything we could produce; despite being in a position to provide generous returns on investment to all the investors they all lost their money. Because my friend wasn t in China during the production process. Since then, I ve advised clients who are dealing with China or other overseas producers to be present or to have a trusted agent present during the process. Those that have followed that advice have prospered. Greatly! Proving that you can do business in China and elsewhere if you invest your time and patience too, not just your money. And remember, you ll find answers to lots of questions about international business and other tax information, free. Where? At TaxMama.com [Note: If you were subscribed to the e-mailed TaxQuips, you d be getting other exciting news and tips. Please click on the subscribe link and join us.] To make your comments, please visit TaxMama s Parlor at TaxTwist.com.