The Internal Revenue Service may gain the right to prevent seriously delinquent taxpayers from leaving the country beginning in 2013.The Senate recently passed legislation including a provision that would let the agency deny, revoke or limit the passports of Americans who owe $50,000 or more in back taxes to the federal government, according to TIME. Some members of the House of Representatives object to the proposed law, saying that it violates the right to due process because no judicial proceedings of any kind are required.Action could be taken against people regardless of whether they have been accused or convicted of tax evasion, fraud or a similar offense. The IRS would have to file a lien or assess a levy for outstanding balance. For any taxpayer who has been the subject of such a filing, however, the agency could then contact the passport office and have their right to travel suspended.There would be some exceptions, applying to those who need to leave the country for humanitarian reasons or an emergency situation. People who have set up a payment plan or are disputing the debt may also be exempt.Day traders and other taxpayers who travel abroad or wish to may want to keep an eye on the law. In the long-term, its passage could be followed at some point by changes to the amount that must be owed in order to qualify, although many Americans are unlikely to be affected given the level of tax debt required for eligibility as the provision is currently written. Proponents say people who owe that much are a serious flight risk.
Thursday, April 26, 2012
Tuesday, April 24, 2012
Jackass Investing: Don’t do it. Profit from it.
Mike Dever will outline an alternative approach to diversification, which is quite different from conventional investment wisdom. Mike’s approach replaces asset classes with return drivers and trading strategies. As Mike will explain, asset classes are simply long-only trading strategies that do not attempt to isolate their many separate return drivers. To be properly diversified, a portfolio must distribute risk across numerous return drivers. When people limit their investment options to traditional asset classes, they are unable to create a truly diversified portfolio. By diversifying outside this constraint, they are able to achieve a FREE Lunch which is a portfolio that earns greater returns with less risk than a conventionally-diversified portfolio. Once viewed in this fashion it is easy to create a truly diversified portfolio, rather than one constrained by the shackles of asset classes. Diversification is the one true FREE Lunch of investing, but it must be true portfolio diversification, as described in Jackass Investing. It's amazing how logical this approach is yet so few people actually embrace it.
Mike Dever is the author of Jackass Investing: Don’t do it. Profit from It, which is the Amazon Kindle #1 bestseller in the mutual fund and futures categories. The concepts in the book have been developed by Mike based on 30 years of experience in investment research and asset management. In addition to being a successful author, Mike is also the founder and CEO of Brandywine Asset Management, Inc., an investment management firm founded in 1982. Brandywine's investment philosophy is based on the belief that the most consistent and persistent investment returns across a variety of market environments are best achieved by combining multiple uncorrelated trading strategies (each designed to profit from a logical, distinct return driver into a truly diversified investment portfolio.
Register for this event by clicking the following link. Remember all start times are Eastern Standard Time.https://www1.gotomeeting.com/register/604406993
Monday, April 23, 2012
Wednesday, April 18, 2012
Identity theft a growing problem
Identity theft a growing problem
Thursday, April 05, 2012 5:33:13 PM Issue Codes
Regulatory Information
More than 460,000 taxpayers have been subjected to either identity theft or wage tax fraud, according to the IRS. About 260,000 fraudulent filings were found in 2011 alone.Agency data shows the number of cases almost tripling from 2009 to 2011 as criminals and fraudsters seeks to exploit the tax system. Many do so by filing false returns in the name of genuine taxpayers and then collecting the refund. The total cost to the government and taxpayers as the problem grows is in the billions, according to the Newark Advocate.Those expenses may be in the form of lost refunds, time and resources spent attempting to detect and prevent fraud, developing and implementing changes to IRS systems and practices or other losses of revenue and government spending.
Taxpayers may learn their names and social security numbers have been appropriated for fraud when they file their own returns and find them rejected or processing takes extra time. Law enforcement officers note that identity theft can be lucrative, with some criminals profitably selling stolen personal and financial information to others. Part of the problem, some experts suggest, is the emphasis currently placed on efficient and quick processing of returns. This unfortunately allows a quick turnaround time on fraud and makes it possible for crooks to file falsely in someone's name before that person sends in his or her own documents.
While day traders may be more concerned with capital gains taxes than income and wages, the risks to their personal financial information are similar. Those employing tax preparation services or accounting professionals should ensure they are dealing with reputable firms.
See how Traders Accounting can help.
Monday, April 2, 2012
Considerations when e-filing tax returns
Filing an electronic tax return early can have significant advantages, according to some experts.
Once it is filed, the individual receives immediate confirmation of its receipt and acceptance by the IRS. If not, then the taxpayer may have been impersonated for purposes of fraud, and learning that right away leaves more time to correct any problems. Payment can be held until a later time closer to the due date, certified public accountant Marshall Hunt told the Belleville News Democrat.
With fraudulent schemes, audits and other potential complications that can arise, experts and the IRS alike warn that taxpayers should be careful when selecting a source of accounting tips or choosing an accounting or tax firm to assist them. While scams commonly target seniors, they may victimize anyone whose personal financial information can be accessed.
When filing returns and preparing for potential questions from the IRS, experts note that it is important to have all documentation. This may include business receipts, medical bills, corroboration of charitable deductions by the recipient, bank account information and returns from prior years, among other items.
When e-filing, acknowledgement of the return generally arrives within 48 hours of sending it in, CBS Money Watch notes. If notification has not been received at that point, then it may be a sign that there is an issue of some kind, or that the IRS has yet to receive the document.
Audit focus shifting
The rate at which the Internal Revenue Service audits Americans with more than $10 million in income increased to nearly 30 percent in 2011, compared to 18 percent in 2010.
Similarly, 12 percent of those with incomes between $1 million and $5 million were audited, up from 7 percent the previous year. The IRS has been turning more of its attention to scrutinizing the wealthy as it seeks to target Americans who shelter income abroad and employ other tax dodges. The agency investigated the tax situations of 21 percent of people with incomes between $5 million and $10 million, showing that the percentage increases as incomes do.
When looked at as a whole, IRS documents reveal that only about 1.1 percent of taxpayers were audited in 2011, close to the previous year's percentage. Experts suggest that the changes in focus are motivated by a desire to maximize efficiency and revenues, CNN Money reports. Auditing high earners tends to gather more for the federal government. Experts note that returns typically become more complicated for those who earn more, making mistakes increasingly likely and creating additional opportunities for confusion, discrepancies and questions to arise.
These individuals are more likely to have different income sources and types of accounts, as well as to itemize deductions and take various tax breaks. Those in the middle-income spectrum are the least likely to be audited, according to the IRS data, while Americans who report no adjusted gross income or who make less than $25,000 are actually more likely to be the subject of an audit in comparison. Day traders may find themselves more likely than average to be scrutinized, since their income can stand out from more typical wage-earning.
