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The IRS is making it a little easier for innocent spouses to prove their case for relief regarding jointly filed tax returns. Last year, the IRS acknowledged spousal abuse as being more than just physical abuse. Notice 2012-8 now recognizes abuse in the forms of sexual, emotional and psychological in addition to physical abuse. No the IRS is proposing rules that would lengthen the time for a spouse to apply for relief from two years to ten years. To read more about requesting for innocent … [Read more...]

After the 2008 real estate crash, people found that banks were a lot stricter when it came to giving out money. Even wealthy individuals were having trouble obtaining mortgages, as automatic approvals were a thing of the past. Unfortunately, just as the real estate market is improving, new proposals in Washington are aimed at limiting mortgage amounts to a percentage of the individuals’ income. Another problem faced by wealthy individuals is lower property assessments as appraisals are using … [Read more...]

About 20,000 small business owners have received a letter from the IRS entitled “Notice of Possible Income Underreporting” as the IRS tries to crack down on underreported income by small business owners. This comes as the IRS promises to step up audits of small businesses. You will have 30 days to review your tax returns for errors and respond to the letter. The key is not to panic or ignore the letter. Simply review your returns and if you find errors, follow the directions for reporting and … [Read more...]

Americans may be paying their credit cards on time; however, a recent survey shows that they are not following through with their financial resolutions. Credit card payments that are over 90 days past due are the lowest they have been in almost 20 years. However, according to a survey by TransUnion, almost 25% of Americans have already given up on their New Year’s financial resolutions and almost 33% have not accomplished even one-half of their goals for the year. For more read, “Credit … [Read more...]

If you are not convinced by the advice that to build your credit score you must have at least a couple of credit cards, you can try some alternatives to build your credit score. Try to build your credit score without using credit cards can be more challenging. However, if you are proactive and look for other ways to improve your credit score it is possible to do without running up credit card debt. One rule that remains – you must pay your debt on time or nothing you do to increase your credit … [Read more...]

The United Mine Workers and Patriot Coal have been battling over heath care agreement and retiree benefits in the Patriot Coal bankruptcy case. In an earlier ruling in May, Bankruptcy Judge Kathy Surratt-States allowed Patriot to enforce significant reductions in benefits on workers and retirees. Under the new settlement reached by UMW and Patriot, UMW officials state they were able to improve the terms regarding “wages, health care benefits, paid time off, pension and more.” The settlement … [Read more...]

If you are planning to purchase a home, you will need to purchase a homeowner’s insurance policy if you plan to have a mortgage. The mortgage company will require the policy to protect its interest if the home was destroyed. However, homeowner’s insurance policies do not cover all loses even though premiums are increasing. The amount of the premium and the coverage will depend on the insurance policy and the type of contract you purchase. For more information about what homeowner’s insurance … [Read more...]

A former Detroit employee that was laid off alleges that the consulting fees being billed to the city “confirms people are making money off of Detroit’s demise.” Some may agree when they see consulting fees of $275 per hour for a 22-year old financial analyst that just graduated college last year. The consulting firm employing this analyst billed the city $288,671 for a two-week period in July alone. Even more shocking is the bankruptcy firm representing the city - - billing up to $1,000 … [Read more...]

Two US Senators have introduced a bill called the Family Farmer Bankruptcy Tax Clarification Act of 2013 to reverse a 2012 US Supreme Court decision regarding family farmers in Chapter 12 bankruptcy. The senators state that the changes to the bankruptcy code in 2005 allowed farmers to first pay creditors and then the IRS; however, in Hall v. United States the Supreme Court ruled that farmers must first pay the IRS. The Senators argue that this ruling prevents farmers from reorganizing under … [Read more...]

The owner of the runaway train that killed 47 people in Canada has filed for bankruptcy relief in both Canada and the United States after pressure to pay for the costs of the cleanup from the tragic accident. To date, over $7 million has been spent by the municipality where the accident occurred to clean up the oil that spilled during the crash. More costs and lawsuits are expected to be incurred by the company who said that revenues fell sharply after the derailment. For the full story … [Read more...]