http://www.articlecabi.net/ Articles at Article Cabinet en-us http://www.articlecabi.net/finance1/taxes/have-you-been-overpaid-this-month.html http://www.articlecabi.net/finance1/taxes/have-you-been-overpaid-this-month.html Mon, 31 May 2010 03:25:41 -0400
It feels like government computer gaffes have been a weekly occurrence in recent years - not great news when you've got an election to win.

Two years ago, HM Revenue and Customs managed to lose CDs containing the personal and financial details of 25 million people. Not content with that gigantic slip, HMRC have now posted out the wrong tax codes to thousands of UK taxpayers - potentially leaving many people overpaid and saddled with a growing tax debt without their knowledge.

While the issue was well publicised when the codes were sent out back in February, it's likely that many will still not be aware of any problems. This is because people may have received a raft of confusing ‘coding notices' or even none at all. Furthermore, in some cases, different tax codes may have been sent to employers and pension providers than were sent to the payees themselves.

As a result, the fear is that employees and a large number of pensioners - who may receive income from a number of different sources - could find themselves receiving the wrong amounts in their April pay packets, as 2010/11 tax codes take effect for the first time. While we all love an unexpected bonus, anyone affected will, unfortunately, have to pay back the difference eventually. So the moral of the story is, if in doubt, check your payslip for any unusual amounts.
The Low Incomes Tax Reform Group (LITRG) has advised the following to all taxpayers:

• Check, as a matter of course, any coding notices you have received from HMRC. You should receive one for every job or pension you have, so if you don't - or if you have trouble understanding the documentation - get in touch with them immediately.

• Next step is to check your payslip to ensure that the code number correlates with that sent by HMRC. Some pension companies only issue yearly P60s rather than regular payslips, so if that is the case you might be best calling your provider to check that they are using the correct code.

• You might also be able to tell by checking your bank statements - if your April pay is substantially and unexpectedly different from the previous month, then this suggests your codes could be wrong.

While it's certainly not the most exciting subject on the planet (trust me, I've written about it!), checking your tax codes is one of those annoying little jobs that, once done, ensure you don't fall into the trap of building up a nasty debt completely unawares.
]]> http://www.articlecabi.net/finance1/taxes/tax-benefits-for-energy-efficient-designers.html http://www.articlecabi.net/finance1/taxes/tax-benefits-for-energy-efficient-designers.html Mon, 19 Apr 2010 21:02:24 -0400
While some of this assistance may come from bailouts and banks, there are other avenues also well worth researching. For example, a lesser-known corporate tax incentives for energy-efficient building materials and environmental controls for commercial buildings could offer property managers valuable financial breaks.

This is largely a result of the Emergency Economic Stabilization Act (EESA), that former President Bush enacted in October 2008. As part of the package, the Energy Efficient Commercial Building Deduction (EPACT2005, Title 13) was extended for another five years - through December 31, 2013.

This extension of the deduction gives property managers planning new buildings or retrofits plenty to consider since they cover improvements ranging from equipment such as interior lighting to HVAC/duct/air sealing and insulation, roofs, siding and other building materials. Everything used must meet specific certification requirements in order to qualify for the deductions.

According to the Commercial Building Tax Deduction Coalition, a tax deduction per square foot is permitted for owners who install equipment that reduces the building's total energy and power cost by 50 percent or more in comparison to a building meeting minimum requirements set by ASHRAE Standard 90.1-2001 - or by 16 2/3 percent for one of three subsystems: lighting, HVAC and water heaters and the building envelope. "Everyone is more mindful of energy consumption these days," says Mike Kluber director of engineering firm Kluber Skahan + Associates, Inc. in Batavia, IL and a Certified Energy Manager who is also LEED-certified. "When looking at maintenance plans for your new or replacement equipment, don't just look at maintaining it but seek better performance."

Plus, designers and builders that are participating in other energy efficiency programs, such as LEED by the U.S. Green Building Council or the U.S. EPA's Energy Star, may already qualify for certain deductions for energy-saving materials and equipment.

To claim the tax deduction, Kluber says qualified individuals are required to complete statements involving energy efficiency and typically, requests are made by the building owner or property manager and passed on to the tax professional in order to prepare the tax return documentation. A few components include:

 The engineer's qualifying statement, which demonstrates how the building complies with required standards
 Required field inspection to prove the use of energy-saving materials or equipment
 Statement of how calculations are performed for each type of equipment or material used. For most items, except lighting, specific software is required.

"Programs like the EESA tax deduction give plenty of reasons, opportunity and education to achieve energy savings. Plus, it's good stewardship," Kluber concludes.

]]> http://www.articlecabi.net/finance1/taxes/the-robin-hood-tax-what-is-it-whos-behind-it-whos-against-it.html http://www.articlecabi.net/finance1/taxes/the-robin-hood-tax-what-is-it-whos-behind-it-whos-against-it.html Sat, 27 Mar 2010 00:17:32 -0400
What is the Robin Hood Tax?

The Robin Hood Tax is a web-based crusade to drum up merry men and women in support of a tax on financial transactions. Its aim is to have a 0.05% tax levied on financial trades (that's 50p on every £1,000), with the billions of pounds generated going towards such things as reducing poverty at home and abroad, and tackling climate change. If enough people sign up their support, it is hoped the chancellor will feel compelled to say those magic words, "Make it so."

Why Now?

The timing is down to the financial crisis and the recession. Because the budget deficit means that funding for certain causes may now be under threat, the Robin Hood Tax aims to ensure that support is maintained. It's proposed that 50% of revenue would be spent on domestic issues such as poverty and homelessness, with the rest split equally between development in poor countries and tackling climate change.

Who's Behind the Robin Hood Tax?

The tax is backed by a collection of organisations, including: ActionAid; Action for Global Health; Association of Teachers and Lecturers; Barnardo's; BECTU; Cafod; Christian Aid; Church Action on Poverty; Commonwealth HIV and AIDS Action Group; Comic Relief; Communication Workers Union; Compass Youth; Greenpeace; Health Unlimited; Housing Justice; NUT; Oxfam; The Salvation Army; Save the Children; Stamp Out Poverty; TUC; Unicef; Unite; and War on Want. And from the entertainment world, the tax is strongly backed by actor Bill Nighy and Love Actually director, Richard Curtiss. Similar campaigns are also being proposed in other countries across the globe.

Critics of the Robin Hood Tax

The proposed tax has inspired some criticism, as evidenced by a glance at comments on online threads and forums. Higher profile critics include Mike Devereux, director of the Centre for Business Taxation at Oxford University, who labelled it a "stealth tax", predicting that financial institutions would remain unscathed as they'd quietly pass on the cost to customers.

Writing in The Telegraph, Toby Young reckoned that no country would impose the tax unilaterally for fear of disadvantaging its own banks: "If Britain introduced a Robin Hood Tax...the international banks that are headquartered here would simply relocate to a country in which their transactions aren't taxed."

However, a proposed new trading tax across the pond has yet to result in threats of an exodus. President Obama's Financial Crisis Responsibility Fee, if approved by Congress, will relieve Wall Street of $90 billion of its (Lincoln) green over the next decade. Although not a Robin Hood Tax - its aim is to recoup some of the $700 billion of taxpayers' bank bailout cash - the move is an indication of a willingness to deter financial institutions from resuming the high-risk lending practices that triggered the economic crisis.

Are You For or Against the Tax?

Whatever side of the fence you're on, you can show support or opposition by voting YES or No on the Robin Hood Tax website (not so fast Goldman Sachs). Would I support a Robin Hood Tax? Well as long as the cost doesn't come back on us by stealthy means, or cause banks that are headquartered here to relocate elsewhere - I Sherwood!
]]> http://www.articlecabi.net/finance1/taxes/what-are-the-energy-tax-credits-available-to-business-owners.html http://www.articlecabi.net/finance1/taxes/what-are-the-energy-tax-credits-available-to-business-owners.html Sun, 21 Mar 2010 21:03:29 -0400
The new commercial building "deductions" (fall under Section 179D) and target specific assets: lighting, HVAC and water heaters and the building envelope. The building envelope includes: lighting, HVAC, water heaters, roofing materials, insulation, window glazing, building orientation and building ventilation.

These incentives are all deductions - but the qualification requirements may be approached in a variety of ways.

If lighting only is installed - it may fall under the "Interim Rules" - which requires a prescribed watts per square feet and multi-level controls. Multilevel controls are something more than on and off. They may be dual switches for every other row of lights or a dimming that modulates the lighting from bright through a graduated dimming process.

The deductions allowable are applied as follows:
 Lighting = $.60/square foot
 HVAC = $.60/square foot
 Building Envelope usually = $.60/per square foot

In order to claim these deductions a qualified third party engineering group must verify and certify the assets and provide specific information to the taxpayer/client. It is important to "Certify" these deductions - so that the taxpayer's/property owner's tax advisor may sign off on the completeness and the validity of the Certification.

ENERGY TAX CREDITS FOR BUSINESS OWNERS:
Energy Tax Credits are available from both State and Federal Programs. States vary widely in the programs, the technologies covered and the application process. The most accurate and up-to-date resource is www.dsireusa.org - where you can find not only information your state's tax credits but also the utility rebate opportunities in your locale.

A common error is to confuse tax "credits" with tax "deductions". Tax credits are a dollar for dollar reduction in taxes owed - seldom are there issued checks from an agency to a taxpayer for a credit. A "deduction" is a dollar amount applied against your tax bracket - then the tax liability is reduced by that amount.

The Federal Government offers tax "credits" for renewable/efficiency energy sources: Solar, Wind, Biomass, Geothermal, Fuel Cells, Combined Heat & Power and Micro-turbine Engines. The "credits" range from 30% without caps to 10% with a variety of caps.

States are completely independent and offer a very broad range of incentives - typically credits.

The Federal Government also offers tax "deductions" for specific efficiencies: Lighting, Heating/Ventilation/Air Conditioning (HVAC) and the building envelope (the barriers between conditioned and un-conditioned space…or the walls, roof, doors and windows). The deduction for these efficiencies range from $.30/sq ft to $1.80/square foot of the building area.
It is always best to seek advice when considering the application of any of these tax opportunities - first to maximize your investment dollars and more importantly to assure the correct allocation of any incentive.

If you want to learn more, contact Marky Moore is a LEED AP and SEO of Capital Review Group Capital Review Group
]]> http://www.articlecabi.net/finance1/taxes/the-irs-tax-certification-test.html http://www.articlecabi.net/finance1/taxes/the-irs-tax-certification-test.html Tue, 09 Feb 2010 05:19:52 -0500
1. What is the new requirement?
The new requirement, in essence, has to do with tax preparer's need to register with the IRS. Before, paid preparers were able to prepare tax returns with no need for registration. Now, there are two steps that the preparer must go through in order to be legally prepared to file tax returns for others.

First, under the IRS tax certification test policies, the tax return preparer must obtain a preparer tax identification number (PTIN) from the IRS. The IRS will perform a brief compliance check of the preparer, simply to make sure that he or she has a history of competency in tax returns.

Following registration, the IRS requires a competency test for all tax return preparers. Only CPAs, enrolled IRS agents, and attorneys - all of whom are in current standing with their respective licensing boards - are exempt from the IRS tax certification test.

Finally, the new policy does not stop with just an IRS tax certification test. It also requires ongoing education for tax preparers. The goal of the IRS tax certification test and continuing education is higher standards, increased accuracy, and a greater confidence level among taxpayers that their tax preparer is adequately equipped to file taxes.

2. When did it pass? When will it go into effect?
In the summer of 2009, the discussion got started. Doug Shulman, IRS commissioner, saw a need for higher standards. As more and more Americans turned for professional help on their taxes, the fear was that the increased demand would result in a lowering of the competency level of tax prepares. Shulman proposed a comprehensive review and careful investigation. By the end of 2009, the new program was ready for launch. Now in 2010, the new IRS tax certification test has officially launched. The policy change occurred on January 4, 2010. Now, all paid tax preparers are required to take the IRS tax certification test. The test is available online (http://www.irs.gov/app/vita/index.html) as is all relevant information, including the Return Preparer Review document. (http://www.irs.gov/newsroom/article/0,,id=217811,00.html?portlet=6).

3. What type of certification is required and for whom?
The IRS tax certification test is now an official government requirement for anyone who prepares IRS tax returns for pay. The only exemptions, as mentioned above, apply to those are CPAs, IRS agents, licensed actuaries, licensed retirement agents, and certified attorneys.

Certification is not difficult to obtain, but does require the successful passing of a basic test which is found online. Following the test, the IRS tax certification test policy requires continuing education, consisting of 15 hours of relevant education. Self-certification, using the IRS's online system, is available for paid tax preparers to register fulfillment of their continuing education requirements.

Though the new policies come as somewhat of a surprise and a potential interruption to one's profession and livelihood, they do guarantee a certain level of accountability both to the IRS and to the Americans who paid preparers service. In our current climate of financial instability, any measure of safeguarding and increase of standards can be welcomed and appreciated.

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