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With consumers cutting their discretionary spending to save money during the recession, it is no surprise that scrapbooking supply companies are experiencing financial trouble. Creative Memories and Archiver’s, both suppliers of scrapbooking supplies and accessories, filed for relief under Chapter 11 of the US Bankruptcy Code. In addition to dealing with reduced revenues due to the recession, scrapbooking supply companies must also deal with the increased availability of technology via the … [Read more...]

This week, legislation will go before the Senate for a vote to determine if states will be allowed to charge sales tax on internet purchases. The debate over internet sales tax has been heated; however, it appears the law will pass and will finally go into effect. The law will apply only to businesses that have online sales over $1 million in a state where the business does not have physical operations. Purchasers will bear the brunt of the added sales tax when shopping online. For more … [Read more...]

This has been a busy week in the entertainment world for celebrity financial woes. Kelley Rutherford from “Gossip Girl” spoke about her fiancés and the fact that she is on the verge of filing for bankruptcy relief. A bankrupt Dionne Warwick said that she did not regret filing for bankruptcy relief in a recent interview (she filed for relief under Chapter 7 reporting $11 million of debt). For more about these stories and others read, “The Broke and the Beautiful: Gossip Girl Edition.” … [Read more...]

If you rushed to file your tax returns by the deadline in April, you may find that you made an error and need to amend your tax return. Whatever the reason may be, if you need to amend your federal tax return there are a few things that you should know. For example, you cannot electronically file an amended tax return. Form 1040X, Amended U.S. Individual Tax Return, must be filed by mail with the IRS. To read more about when you should file an amended tax return and for more tips see, “Tax … [Read more...]

With the filing of AccuPay’s bankruptcy, the question of what happens when a business outsources its payroll services has come into question.  AccuPay handled many payroll accounts for its customers, which included calculating, collecting and paying payroll taxes.  With the filing of the bankruptcy liquidation, the question arises what happens to the clients who paid AccuPay but AccuPay did not use the money to pay payroll taxes. For more on this story read, “Tax Surprises Can Follow When … [Read more...]

The former supermodel and America’s Top Model judge has filed for relief under the US Bankruptcy Code.  According to court papers, it is believed that Dickinson owes more than $1 million in back taxes and other debts.  Dickinson may owe as much as $500,000 in unpaid taxes to several states and to the federal government that have accumulated over the past ten years.  Dickinson also reported substantial debt for cosmetic procedures and plastic surgery. For more on this celebrity bankruptcy … [Read more...]

Federal agents set up a sting operation to stop a bankruptcy scam operation in Chicago.  Daniel Rankins was assisting drivers in filing fraudulent bankruptcies intended to avoid paying fines and fees to get their cars out of the city’s auto pound.  Drivers whose vehicles were impounded would file a bankruptcy case to take advantage of the bankruptcy automatic stay to get their cars out of pound without paying the fines and fees.  Drivers would pay Rankins a small portion of the money that they … [Read more...]

Even though your chances for being audited may be low, there is still that chance your federal income tax return could be flagged for an audit.  In the case you are audited, the best preparation is to know what to expect.  The majority of tax audits occur completely through correspondence rather than a tax agent visiting your home or your office.  These audits are typically focused on one or two specific items on the income tax return. For more about how to survive a tax audit read, “How to … [Read more...]

In a decision that has split districts, an appeals court ruled that creditors might attach the proceeds of an inherited IRA.  This controversial ruling means that while most IRA accounts are protected under bankruptcy from creditors, inherited IRA accounts will not be covered by the same exemption.  Therefore, creditors may seek payment from the proceeds of an inherited IRA.  It may take an appeal to the US Supreme Court to make a final decision because of the contradictory decisions by lower … [Read more...]

Riddled with under-performing businesses that it purchased as part of a $320 million spending spree, KIT Digital has now filed for Chapter 11 bankruptcy protection.  The proposed restructuring plan would allow current shareholders to buy shares of the reorganized company for the same price as the shareholders who are behind the reorganization plan.  The plan still requires Bankruptcy Court approval.  In addition, the company plans to get rid of the underperforming companies that it purchased in … [Read more...]