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When a person files for relief under Chapter 13 of the US Bankruptcy Code, he or she is indicating that they intend to reorganize their debt into a manageable plan. In order to qualify for a Chapter 13 bankruptcy, you must be an individual debtor (not a corporation or LLC) who has no more than $336,900 in unsecured debt. You must also complete a pre-bankruptcy credit counseling course and obtain a certificate as proof of your participation in the course. For more things you should know about … [Read more...]

MF Global was forced to file bankruptcy in 2011 in part as a result from the catastrophic financial loss incurred in 2008 as a result of a “rogue trading” incident involving Evan Brent Dooley. Dooley was convicted this week and sentenced to five years in federal prison for making unauthorized trades that violated the Commodity Exchange Act. In addition to prison, Dooley must pay $141 million in restitution to MF Global’s bankruptcy estate. For more details read, “Ex-MF Global trader gets 5 … [Read more...]

Claiming government investigations and changes in health care laws as the reason for its financial problems, The Scooter Store filed for protection under Chapter 11 of the U. S. Bankruptcy Code this week. The Scooter Store is famous for selling motorized scooters and wheelchairs to people who have limited mobility. Reporting far more debts than assets, The Scooter Store has been in trouble as it faced allegations of selling scooters to individuals who do not need them in order to bill Medicare … [Read more...]

Unfortunately, taxpayers in Illinois are not even making a small dent in the amount of money that the state owes to vendors. The payments owed to the state by taxpayers will first go to interest owed on the nearly $6 billion owed by the state. During the past 10 years, Illinois taxpayers have paid over $300 million in interest on overdue bills owed by the state. Increasing the date that interest accrues on unpaid bills by 30 days has helped but is not enough to stop the state from going … [Read more...]

Dealing with government agencies and the “red tape” involved is frustrating for business owners and individuals alike. The amount of paperwork required to accomplish anything with the government is staggering. However, the Internal Revenue Services tops all government agencies for paperwork. The IRS alone accounts for 75% of government paperwork or 6.7 billion annual hours to complete that paperwork. For more about how the IRS should reduce the paperwork read, “Go Simple.” … [Read more...]

The President and the First Lady reported a gross adjusted income of $608,611 for 2012. Based on that amount, they paid a total of $112,214 in federal income taxes. This translates into an 18.4% tax rate for the President and the First Lady. Obama has proposed the Buffet rule for anyone earning more than $1 million per year in income. The Obama’s adjusted gross income fell during 2012 from what was reported on their 2011 tax returns. For more details about the President’s 2012 tax return … [Read more...]

In order to determine if your tax return should be audited, the IRS uses a scoring system to identify which tax returns may generate more tax revenue if they were audited. The DIF (Discriminant Inventory Function) is a score assigned to returns based on certain criteria that the IRS has determined increase the possibility that the taxpayer “cheated” on their income tax returns. A study by the National Taxpayer Advocate has revealed several geographical areas where it is more likely that … [Read more...]

Nanny taxes are a sore subject among many parents who feel that it is unfair to pay taxes on the salary for a full-time nanny when other parents never dream of paying payroll taxes for casual or part-time babysitting services. The fact remains that it is the law that parents who employ a full-time nanny should be withholding and paying payroll taxes based on the nanny’s salary. However, this is probably one of the most common types of “tax fraud” committed each week in the United States. … [Read more...]

If you have waited until the last minute to file your tax returns, you are not alone. It may be better for you to request an extension to file your tax returns if you do not have all of your documentation or you are unsure which tax laws apply to your situation. Rather than miss the deadline or file an incomplete return, you should request an extension to file your return. If you file the return and must amend it later, you increase your risk of being audited. For more read, “Not Ready to … [Read more...]

If you have waited until the last minute to file your 2012 tax returns, you are not alone. Millions of Americans will be burning the midnight oil to make the April 15 filing deadline. After you finish the last schedule and hit the submit button to send your tax returns to the IRS, relax and enjoy one of the Tax Day Freebies or Specials that many businesses are offering for tax day. Some offer freebies while others offer special discounts to celebrate the first major deadline of tax … [Read more...]