If you are procrastinating in dealing with those back taxes, then it might be time to stop, because it will only make your situation worse. You may not know how to deal with them specifically especially if the amount is in the thousands, but it won’t get any easier if you avoid them.

The IRS is willing to compromise with families or individuals that owe back taxes but can’t afford to pay the whole amount. If you are finding yourself in that same situation then the IRS wants you to apply for a settlement. In most cases, they are more than happy to get just a portion of the money. They have seen more than enough of these cases, and they know that the financial epidemic has hit America. Millions of people can’t pay their tax debt and the IRS settling is probably the only way that the government will get some of that revenue. If they have a lot of people filing for bankruptcy, then they won’t really gain anything. It is just as well to accept lesser payments. (more…)

Singapore’s agreement with the Russian Federation for the avoidance of double taxation comes into force on 16 January 2009 following the completion of ratification formalities. The provisions of the Agreement shall apply to income derived on or after 1 January 2010.

The Agreement, which is Singapore’s 60th agreement for the avoidance of double taxation, encourages and facilitates cross-border trade and investment between Singapore and Russia through the lowering of tax barriers and the better definition of taxing rights between the two nations. The main provisions under the Agreement include the following:

a) Lower withholding tax rates are imposed on dividends, interest and royalties. The tax rate for interest and royalties is 7.5% while the following rates apply to dividends:
i) 5% (for corporate shareholders holding at least 15% of the share capital and has invested at least US$100,000 or its equivalent in other currencies);
ii) 5% for the Government; and
iii) 10% (for other shareholders) (more…)

This article deals with the taxation of import of services in India and evaluation of levy of service tax in the light of some relevant circulars and notifications. The author has also referred to a decision of the Bombay High Court in Indian National Shipowners Association v. Union of India [2009] 18 STT 212.

1. ‘Service tax’ evolution is not only informative but also interesting. This levy was imposed by the Finance Act, 1994 and the subsequent Finance Acts amended this Act to expand the base and increase the levy. This can be stated to be the only instance in the Indian Legislative history where a later Finance Act amends an earlier one. (more…)

American Clean Energy and Security Act of 2009

Earlier this summer, the United States House of Representatives passed H.R.2454, the American Clean Energy and Security Act of 2009, which claims to “create clean energy jobs, achieve energy independence, and reduce global warming pollution and transition to a clean energy economy.” However, the bill has become quite controversial as it includes a cap and trade “global warming reduction plan” that aims to reduce greenhouse gas emissions by 17% before the year 2020. It also includes new requirements for utility companies regarding carbon technology, incentives for energy efficient homes and buildings, as well as grants for new “green” jobs.

Highly Controversial Legislation

As with most of the recent legislation coming out of Congress, H.R.2454 has quickly become very controversial. Opponents claim that the nearly 1,300 page bill was quickly put together. They also point to its slim 219 to 212 vote passage as a bad sign. Many experts assert that the bill will do little to actually help the environment, and is mostly a way to increase Federal revenue. Currently, only about 15% of the country’s pollution permits are being auctioned off, the rest are just being given away. The new cap and trade legislation makes great efforts to convert the system to become entirely auction based. That way the Government can take more control in auctioning off permits and reap profits from energy companies, who will still be allowed to pollute – but will just be paying more to do so. (more…)

1. Old Documents

Before you go out and buy a huge safe to store your piles of financial documents, you might want to consider throwing some of them away. According to the IRS you will want to keep them for at least 3 years or up to 7, depending on your unique situation. There are some documents such as records on appreciable assets that you might want to keep for a few extra years. However, for the most part you should be fine discarding any documents more than 3 years old if you regularly file a return.

2. W-2s & 1099s

All income related tax documents should be kept somewhere safe. This includes any W-2s for jobs you have worked during the year, and 1099s from any independent contracting work and/or gambling winnings. All of these documents are considered “basic records” and should be kept for at least 3 years. If you have enough room, then you might even want to keep them a little longer just in case.

3. Receipts

As far as receipts go, too much is better than too little when it comes to storing your tax documents. If you are deducting any expenses, then you need to keep your proof. If you are having trouble organizing receipts of multiple different sizes, then you could always photo copy a few onto a single sheet of paper. This will make the documents easier to organize, and can save room as well. (more…)

1. Old Documents

Before you go out and buy a huge safe to store your piles of financial documents, you might want to consider throwing some of them away. According to the IRS you will want to keep them for at least 3 years or up to 7, depending on your unique situation. There are some documents such as records on appreciable assets that you might want to keep for a few extra years. However, for the most part you should be fine discarding any documents more than 3 years old if you regularly file a return.

2. W-2s & 1099s

All income related tax documents should be kept somewhere safe. This includes any W-2s for jobs you have worked during the year, and 1099s from any independent contracting work and/or gambling winnings. All of these documents are considered “basic records” and should be kept for at least 3 years. If you have enough room, then you might even want to keep them a little longer just in case. (more…)

If you are worried that the IRS is going to put a tax lien on your home, wages and other possessions, then you need to arm yourself with the facts about what you are able to do to prevent this. Sometimes, you can convince the IRS to work with you if they ever want to see their money. But in order to do this, you need to understand what is required of you and how to prove your case.

The IRS prefers that people pay their tax debt in one quick lump sum. In fact, they will be more than happy to take your credit card as payment. In some cases, this may be the smartest way to pay your debt because every month your debt lingers, you have interest and late penalties mounting on your already large tax bill. If you have a credit card with a lower interest rate, it may be the cheapest way for you to pay your bill. (more…)

If you feel like you are sinking in a mire of debt and can’t seem to find any help, you are one of the many. It could be loan payments, credit cards, children’s education, and a mess of other expenses adding up. The last thing that you need is to find out that you owe back taxes plus the penalties that they tacked onto them.

Well, the quicker that you make a move once you find out that you owe money, the better. Then there will be fewer penalties to contest, and the IRS will know that you are serious about your case. Just imagine what is going on in their minds when they see a case where an individual has tried to avoid these payments rather than coming forward. They might pass them over rather quickly.

In filling out the application and making them an offer, be honest about your situation. They can figure out if you are telling the truth or not. Lying is a good way of getting into more trouble down the road. You might hear people bragging about what they got away with, but they may be talking a little too fast. The IRS could still come after them. (more…)

Singapore’s agreement with the Russian Federation for the avoidance of double taxation comes into force on 16 January 2009 following the completion of ratification formalities. The provisions of the Agreement shall apply to income derived on or after 1 January 2010.

The Agreement, which is Singapore’s 60th agreement for the avoidance of double taxation, encourages and facilitates cross-border trade and investment between Singapore and Russia through the lowering of tax barriers and the better definition of taxing rights between the two nations. The main provisions under the Agreement include the following: (more…)

N. Vijia Kumar

This article deals with the taxation of import of services in India and evaluation of levy of service tax in the light of some relevant circulars and notifications. The author has also referred to a decision of the Bombay High Court in Indian National Shipowners Association v. Union of India [2009] 18 STT 212.

1. ‘Service tax’ evolution is not only informative but also interesting. This levy was imposed by the Finance Act, 1994 and the subsequent Finance Acts amended this Act to expand the base and increase the levy. This can be stated to be the only instance in the Indian Legislative history where a later Finance Act amends an earlier one.

Further, it would be astonishing to note that the Finance Act, 1994 is the only statute on the statute book which has no ‘Statement of Objects and Reasons’, and one of the few statutes that has not been considered either by a Parliamentary Committee or a Select Committee of the Parliament.

Yet another distinguishing feature is that this levy is imposed on the ‘service sector’ but enforced by the Central Excise Authorities who are constituted under the Central Excise Act, 1944. (more…)