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As with any other topic, the internet provides a wealth of resources for taxpayers. Here are some websites and web pages that provide information, tools and resources to help you with year-round tax planning and assist in preparing your Form 1040.

www.att.com/ir/ss/tbi

When you sell stock you need to determine the “cost basis” of the shares sold so you can calculate your capital gain or loss. With the “divestiture” of ATT in 1984, and all the splits, both positive and reverse, spin-offs and mergers that have followed, determining the cost basis of ATT stock sold, as well as the basis of the various spin-off companies’ shares, is a real project. Go here for Tax Basis Worksheets for each individual event in the history of ATT from 1959 through the present.

www.oanda.com/convert/classic

This “address” will direct you to a foreign currency converter that can provide current and historical exchange rates for 164 currencies.

www.bigcharts.com

You can use this site to find the price of any listed stock or mutual fund on any exchange for any given date. If you inherit an investment, your cost basis is the fair market value of the investment on the date of death of the person from whom it was inherited. This information is generally reported on the federal estate or state inheritance tax return. However, when you sell the stock you inherited you do not always have ready access to this information. You can calculate your basis by going to this site and, under “Historical Quotes”, enter the ticker symbol of the stock and the date of death, or the business day closest to the date of death, to get a price quote. If you sell stock that you received as a gift, your basis is either what the donor paid for the stock or the fair market value at the time the gift was made. You can also use this site to determine a cost basis for gifted property.

www.kbb.com

While the rules for claiming a deduction for donating a car to charity have drastically changed, there are still situations where you will deduct the fair market value of the automobile. Click on “Used Car Values By Make and Model”, enter your zip code, enter the year, make and model of the car donated, and click on “Kelley Blue Book Private Party Value”. You will then enter detailed information on the car donated, such as mileage and condition, and get a value. You should do this on the day you donate the car to charity. Print out the result and file it with the paperwork for the donation.

www.calctools.com/newrmd.htm

You must begin to take annual required minimum distributions from a traditional IRA or employer pension account by April 1st of the year following the year in which you turn age 70 1/2. This address takes you to a calculator that will determine the amount of your required minimum distribution for the year.

www.investinginbonds.com

Click on “CALCULATORS” in the menu at the top of the page. Then click on “Taxable/Tax-Free Yield Equivalent Calculator”. This calculator will allow you to determine what you need to earn on a taxable investment to equal the tax-free yield of a municipal bond or a bond fund.

www.easysaver.gov/sav/sav.htm

This section of the website of the Bureau of Public Debt provides a variety of information, calculators and services for individuals who have invested in or are thinking about investing in US Savings Bonds (all series). Click on “Savings Bond Calculator” under the heading “What Are Your Bonds Worth?” to determine the amount of interest earned on a bond for the year if you have elected to report accrued savings bond interest annually on your tax return. You can also go here to find out if your savings bonds have stopped earning interest and to purchase bonds online.

www.gsa.gov

If you travel for business, instead of deducting your actual expenses for meals and incidental expenses you can elect to deduct the federal per diem amount for the location of the travel. Click on “Per Diem Rates” under “Travel Resources” to find the federal per diem rates for Lodging and Meals and Incidental Expenses for domestic business travel effective for 2005 and prior years. FYI, “incidental expenses” include fees and tips for porters, baggage handlers and maids, but does not include the cost of laundry or phone calls.

www.state.gov/m/a/als/prdm/2005

This address will take you to the State Department per diem rates for Lodging and Meals and Incidental Expenses for international travel during 2005. Ust these amounts if you travel overseas for buisness. To check the per diems for a prior year, substitute the year for 2005 in the “address”.

www.toolkit.cch.com/p07_2740.asp

This brings you to a calculator that will help you determine your allowable home office deduction. It is from Commerce Clearing House, the premier tax law publisher.

www.charitynavigator.org

This site will help you to make intelligent charitable giving decisions. It provides information on and evaluates the financial health of over 4000 charities. It also has articles and guide on contributing to charity.

www.redleafinstitute.org

The Redleaf National Institute helps child care providers successfully manage their business. The site offers news, information and publications on recordkeeping, taxes, IRS audits, contracts, insurance, and other child care business issues. It provides access to other child care business resources and organizations, and has a state-by-state listing of tax professionals who prepare tax returns for child care providers.

The above web addresses, and many others, are listed on the FEDERAL LINKS Page of my website at www.robertdflach.net

Copyright (c) 2005 by Robert D Flach LLC

Robert D Flach is a tax professional with 34 tax seasons of experience preparing 1040s for individuals in all walks of life. He writes THE WANDERING TAX PRO weblog (http://rdftaxpro.tripod.com/weblog) and the free monthly online newsletter STUFF AND SUCH (http://rdftaxpro.tripod.com/stuffandsuch). He also writes and publishes THE FLACH REPORT, a quarterly print tax newsletter.

Tags: Federal Income Tax, federal tax, Income Tax, tax, tax planning, tax resources, tax returns, taxesFederal Income Tax, federal tax, Income Tax, tax, tax planning, tax resources, tax returns, taxes

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There are a few things that you can do throughout the year that may help you get through tax time with less stress. First, organize your documents and keep them organized throughout the year. Search the internet for free websites that give you organization suggestions. Some of them even have templates to help you put your tax records in order. Consider a good software program like Microsoft Money which has a 90-day free trial.

If you itemize your deductions, and you certainly should itemize if you are self-employed, keep all your receipts in an expandable folder that can be organized by month, alphabetically, or any way that you want to organize it. If you are ever audited, you will lose the deductions you claimed that cannot be verified by a receipt. If you make cash donations, IRS has a formula that calculates how much you can deduct, but, as with any other deduction, you must have a receipt in order to claim the deduction. Be sure your receipts have the name, date, address, amount, purpose, type, value, and any other information pertinent to the validity of the deduction.

Unless you are really knowledgeable in accounting and tax law, a good CPA is well worth the money. The tax laws are constantly changing, and the average person cannot keep up with the changes let alone understand them. Remember that you should always make the best use of your resources, and that includes using your talents for those things that you do well and outsourcing those things that someone else can do better.

There is no absolutely certain way to avoid an audit, but people say that certain things increase the likelihood of an audit. For example, make sure there are no math errors in your tax return. If there are inaccurate calculations, the IRS will have to take a second, more careful look at your return. Once IRS is looking more closely at your return, there may be red flags that could lead to an audit. It is best to do the math correctly so that IRS never has to take a closer look at your return.

There are blogs and websites for almost any topic, and doing a little research will help you be better educated and less stressed. Don’t forget that your local library has many book about income taxes and tax returns. You may also want to look into Turbo-Tax, Microsoft TaxSaver, or one of the other good tax software. Even if you hire a CPA, you will save yourself time and money by being well-prepared and by understanding the process.

IRS also has telephone help lines that can be really helpful. The IRS website at www.irs.gov is also very helpful and easy to use. It is alright to contact IRS and ask questions. You are not any more or less likely to be audited if you contact IRS and ask your questions. As previously stated, you are more likely to be audited if you make errors on your tax return. These are just a few basic suggestions that can help make tax-time less stressful for you.

Jo Ann Joy, Esq., MBA, CEO
Copyright 2006 Indigo Business Solutions. All rights reserved.

About the Author

Jo Ann Joy is the CEO and owner of Indigo Business Solutions, a legal and business consulting firm. Indigo Business Solutions is a “one stop shop” for small businesses. We differ from other business consulting firms, because we offer comprehensive legal and business counseling. We can offer most of the professional services that a business requires. We work with our clients to develop strategies that create value and competitive advantage.

Jo Ann has a law degree, an MBA, and a degree in Economics, but she is not a traditional attorney. Rather, she is a strategic business attorney who works closely with clients to create and implement strategies that will greatly improve their performance and chance of success. Her background includes commercial and real estate law, accounting, financial planning, mortgages, marketing, product development, banking, and business strategies. She ran a successful business for 10 years, and she has written and given presentations on many different legal and business subjects.

You may contact Jo Ann by phone at (602) 663-7007, by fax at (602) 324-7582, by email at joannjoy@Indigo Business Solutions.net, and by mail at 2313 East Ocotillo Rd., Phoenix, AZ 85016. You may request free copies of her other Ezines or purchase her E-books on the website.

For more information about these and other important business topics and for legal consultation, please visit our website at http://www.IndigoBusinessSolutions.net

The future of your business starts here.

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Taxes are compulsory charges or levies collected by states or anything that functions like a state. In a modern society, taxes are usually levied in money. Taxes have always been gathered in one way or the other. Tribal governments used to collect taxes either in the form of labor, produce or even gold.

In the past, taxes have sometimes funded wars or projects. In the modern context, taxes are essential to help a country build infrastructure, offer education, maintain law and order, finance economic structures, roads, administration, defense, etc.

In 1913, President Woodrow Wilson set up the Federal Income Tax. This income tax system deducted about 1% to 7% of a person?s income. Ever since then, new taxes have been added, and after World War I, the American Tax Code has become four times bigger.

In America, citizens who earn above a certain level are expected to file tax returns, and pay taxes if applicable. You are not expected to file returns if you have salaries and pensions taxed under Pay As You Earn (PAYE). This is because the correct amount of tax is being deducted at source.

Tax returns are essentially forms given by the Internal Revenue Service (IRS) in which all the details of income and incurred expenses have to be given. The taxes that you have to pay are calculated based on this. An individual can calculate these taxes, or the IRS could do it.

The form has one page, which everyone has to complete, and nine supplementary forms, which people with specific types of income have to file. There is also a supplementary booklet that helps to file taxes.

You are expected to file returns if you are self-employed, have other income received in gross and from which taxes have not been cut, such as rental income from property, interest in a national savings income account, etc. Returns would also have to be filed if the taxation rate is high or complex.

Sometimes the IRS many issue tax return forms to you even if you pay taxes under PAYE. This happens if you have changed jobs and it is to check if your taxation is in order.

Always file your tax returns if you know that the correct amount of tax has not been paid on your income. Do not wait for the IRS to send you a tax return. If you fail to do so you may pay a fine or incur a penalty. Several people have gone to prison for failing to file their taxes correctly.

Send your tax returns back to the local tax office by January 31st after the end of the tax year; otherwise you will automatically incur penalties. If you want the IRS to do the tax calculations, you must send the completed return to the local tax office by September 30th following the end of the tax year.

Tax Returns provides detailed information on Tax Returns, Income Tax Returns, Tax Return Filing Preparations, Federal Tax Returns and more. Tax Returns is affiliated with Free Tax Filing.

Tags: Federal Tax Returns, Income Tax Returns, Tax Return Filing Preparations, tax returnsFederal Tax Returns, Income Tax Returns, Tax Return Filing Preparations, tax returns

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