The Tax Factor was created to educate individuals and small-business owners about taxes. Let’s face it, nothing in life is guaranteed except death and taxes. Okay, maybe that sounded pretty depressing but the goal of this blog is to help you find the information to learn how to make taxes work for you. Taxes can be extremely complicated but knowing about deductions and credits can save you thousands of dollars per year.
A sweet tooth in the Bluegrass State can get expensive. Candy that does not contain flour faces a sales tax, while candy with flour is exempt. Hence, residents hankering for chocolate-covered almonds will pay a little more than those buying chocolate covered pretzels.
If a breakfast bar contains natural or artificial sweeteners along with fruits, nuts or other healthy ingredients, but has no flour and doesn't need refrigeration, it's considered candy and is subject to sales tax. But breakfast cereals with exactly the same ingredients are not considered candy and are not taxed.
"I observed all the work and ambition motivated by envy. What a waste"
Ecclesiastes 4:4
Here are a few things currently on my plate:
I'm creating a tax e-book series
I'm making a proposal to create an online tax course
I'm in the process of creating a year-long financial literacy program
I'm in the process of creating original videos, art and podcast for my blog
Trying to grow my accounting firm
Trying to improve as a son, husband, father and man of God
With a list like this one, why do I feel like the biggest underachiever in the world? I didn't even mention the stuff that I already accomplished. Well, I suffer from the infamous envy trap. Unfortunately millions of other people are in the same boat with me. I honestly feel that I will never feel satisfied in life. I'm always looking at someone else that is doing something bigger than me. I can reach 1,000 clients and still be mad that I don't have 1,500. For the record, I'm not even close to 100 (lol)!
Most people get motivation confused with envy. Motivation are doing things necessary to positively improve yourself or situation. Envy says "I've always got to have more: more money, more possessions, more power, more prestige, pleasure and popularity." For example, my motivation for my financial literacy program is to help my community. However, my actions to grow my company is to honestly revenge to employers that rejected me in the past. I want them to know that they made a mistake not hiring me. I envision myself receiving a lifetime achievement award and calling out people that hurt me in the past during my acceptance speech. Never mind that more people in my life helped me rather than hurt me. Yeah, I know this sounds crazy but I'm just keeping it real with you. My need for revenge is very unhealthy to my happiness. To outsiders, I may just seem like a very ambitious person. However, it is my envy of others that keeps me going. I pray that one day my envy leaves me body. This is the main reason why I'm seeking to work on my spirituality.
Comparing is the root of all envy. Most people that I represent in front of the IRS, cheated the government to "keep up with the Joneses." If you are in this position, stop worrying about what type of refund your co-worker received. Everybody's tax situation is completely unique. I never met two clients with the same issues. If you are an entrepreneur then stop comparing yourself with other entrepreneurs like Bill Gates and Donald Trump. First, everyone in the world will not become America's next billionaire. Second, we don't know the internal pain they may be suffering.
Instead of resenting others, rejoice with them! I'm a work in progress but at least I know that I have to change. I'm trying my best to help others without asking anything in return (expect clients because I need to get paid). I'm trying my best not to compare myself with others. I'm a strong believer in karma. Too much entrepreneurs that I network with are too damn selfish. However, I'm so thankful for the people that I meet that are so supportive to me without evil intentions.
New Inductee of the Tax Preparers' Hall of Shame goes to a Florida tax preparer. Florida STAND UP!!!
Preparer Joseph Rizzuti has been sentenced to 80 months in federal prison for conspiracy to commit wire fraud and for corruptly endeavoring to obstruct the IRS. According to court documents, Rizzuti, an accountant and the owner of Beacon Accounting Services, interfered with the IRS’s ability to collect taxes owed by two clients by stealing payments from those clients intended for the IRS and making misrepresentations to the clients, as well as the IRS, to conceal his scheme. He also admitted to engaging in a criminal conspiracy to commit wire fraud by making material misrepresentations to individuals throughout the country who believed the money they were investing with Rizzuti and his co-conspirators was funding Nigerian-related oil and Bahamian construction projects, when instead Rizzuti and his co-conspirators used the money for their personal expenses. In total, Rizzuti and his co-conspirators stole approximately $3 million. In addition to prison time, he was sentenced to three years of supervised release and ordered to pay restitution to victims, including the IRS. Restitution of nearly $300,000 was ordered at the sentencing hearing, and additional restitution will be determined within 90 days.
Here is a special quote for the our new inductee:
"There is enough in the world for everyone's need, but not enough for everyone's greed." Frank Buchman
Welcome to the Tax Preparers' Hall of Shame. May the prison guards treat you fairly.
With the start of this year’s hurricane season, the Internal Revenue Service
encourages individuals and businesses to safeguard themselves against natural
disasters by taking a few simple steps.
Create a Backup Set of Records Electronically
Taxpayers should keep a set of backup records in a safe place. The backup
should be stored away from the original set.
Keeping a backup set of records –– including, for example, bank statements,
tax returns, insurance policies, etc. –– is easier now that many financial
institutions provide statements and documents electronically, and much financial
information is available on the Internet. Even if the original records are
provided only on paper, they can be scanned into an electronic format. With
documents in electronic form, taxpayers can download them to a backup storage
device, like an external hard drive, or burn them to a CD or DVD.
Document Valuables
Another step a taxpayer can take to prepare for disaster is to photograph or
videotape the contents of his or her home, especially items of higher value. The
IRS has a disaster loss workbook, Publication
584, which can help taxpayers compile a room-by-room list of belongings.
A photographic record can help an individual prove the market value of items
for insurance and casualty loss claims. Photos should be stored with a friend or
family member who lives outside the area.
Update Emergency Plans
Emergency plans should be reviewed annually. Personal and business situations
change over time as do preparedness needs. When employers hire new employees or
when a company or organization changes functions, plans should be updated
accordingly and employees should be informed of the changes.
Check on Fiduciary Bonds
Employers who use payroll service providers should ask the provider if it has
a fiduciary bond in place. The bond could protect the employer in the event of
default by the payroll service provider.
IRS Ready to Help
If disaster strikes, an affected taxpayer can call 1-866-562-5227 to speak
with an IRS specialist trained to handle disaster-related issues.
Back copies of previously-filed tax returns and all attachments, including
Forms W-2, can be requested by filing Form
4506, Request for Copy of Tax Return. Alternatively, transcripts showing
most line items on these returns can be ordered
on-line, by calling 1-800-908-9946 or by using Form
4506T-EZ, Short Form Request for Individual Tax Return Transcript or Form
4506-T, Request for Transcript of Tax Return.
