Location: Westland, Michigan, United States

Graduate of Walsh Institute Of Accountancy (Now Walsh College) Michigan in 1959. Retired in 1987, but still active in the profession **World War II Veteran (Pacific) **PHONE 734-261-1979 **E-MAIL **(Domain Name CPASENSE Registered) **Mentioned in the Journal of Accountancy, SmartPros, Tax Prof Blog, CPA2BIZ, CPA Journal, AccountingWEB, CPATrendlines & More **Search Accounting Blogs: (Includes cpasense)**TOPICS - FINANCE - FEDERAL & MICHIGAN TAXES ** Making Sense Of Your Finance & Taxes

Wednesday, May 31, 2006

How To Find A Legitimate Nonprofit Credit Counselor

The government's list might be a good place to find out which agencies are approved to fulfill the bankruptcy requirements , even if you don't plan on filing for bankruptcy.

U.S. Department of Justice

Tax Planning For Newlyweds

Marriage brings many joys and a few unexpected challenges, such as filing your taxes together. By starting now, well in advance of tax season, completing your first tax return as husband and wife will go more smoothly. Here are several items for your income tax to-do list, brought to you by the Michigan Association of CPAs...-MORE-

Life's Financial Emergencies: Six Ways To Prepare

Life is full of unknowns. While it’s unsettling to think illness, job loss, or a disaster could drain your financial resources, financial emergencies can and do occur. The good news is that with a little planning you can minimize the impact of an unexpected financial crisis. The Michigan Association of CPAs suggests that you take the following actions....-MORE-

Financial Tips: CPAs' Gift To College Students

Graduation for millions of college students means its time to trade in books and binders for bills and budgets. The Michigan Association of CPAs provides the following advice to help college graduates become financially independent....-MORE-

Hiring A Summer Household Helper? Better Brush Up On Employment

If you’ve hired someone to care for your children this summer – or for the full year – you may have to pay employment tax. These taxes, referred to collectively as the “nanny tax,” actually apply to any household employee who works in your home or on your property. The Michigan Association of CPAs provides answers to common questions concerning employment taxes....-MORE-

Saturday, May 27, 2006

Memorial Day Tribute Turn Sound On
For the first time in US history, on Memorial Day 1997 "Taps" was played at 3 pm in many locations and at events throughout America. ...

Friday, May 26, 2006

Telephone Tax Refund Set for 2007

IRS will stop collecting long-distance telephone tax; taxpayers can request refunds on next year's tax return.

Internal Revenue Service

Thursday, May 25, 2006

2006 Tax Breaks Make Saving For Retirement Sweeter

Contributing to a retirement savings account remains one of the best ways to cut your tax bill and to help ensure a secure retirement. The Michigan Association of CPAs points out that there are a number of tax changes for 2006 that can help you to boost your retirement savings....-MORE-

Losses On Retirement Accounts

Losses incurred inside retirement accounts, such as 401(k)s IRAs and the like, cannot be claimed as a loss on your income tax return. That's because the money in the plan went in on a before-tax basis (i.e. you were not taxed on the money), so you cannot claim a loss.

When your employer kicked in the match, you did not report that deposit.

The only time you can claim a loss on a retirement account is when you have after-tax contributions and, when all accounts are closed, the total distributions are worth less than the after-tax contributions.

Federal Student Loan Rates Will increase

U.S.students receiving federally backed education loans may see their rates increase by more than 2 percentage points next month, the second straight year of record increases.

It's likely the rate will exceed 7.3 percent after the annual recalculation next month, said the College Loan Corp, a San Diego-based lender. Rates increased about two points last year, the highest gain in 24 years.


Saturday, May 20, 2006

Medicare Part D Enrollment Penalties-

Despite a stony silence from the White House, Congress is warming up to the idea of waiving the penalties for late enrollment after May 15, and doing so just in time for the fall elections.

Thursday, May 18, 2006

Bush Signs Tax Cut Package

President Bush on May 17 signed into law a $70 billion package of tax cut extensions (H.R. 4297) as congressional taxwriting committee chairs continued to weigh their options on what to include in a follow-up bill that will extend even more temporary tax cuts. More

A/N Group, Inc.
Tax Analysts

Wednesday, May 17, 2006

Worthless Stock

When and how can you claim a deduction if your stock becomes completely worthless? Click here for answers.

Fairmark Press

What A Will Does

A will probably does more than you expected -- it's not just so that you can leave your treasured soup tureen to your nephew Owen. For example......

Motley Fool

Tuesday, May 16, 2006

IRS Takes New Steps on Credit Counseling Groups Following Widespread Abuse
The IRS releases a report and announces steps it is taking in regard to credit counseling agencies.

Internal Revenue Service

Monday, May 15, 2006

Reverse Mortgages: The Pros And Cons Of Cashing In

A reverse mortgage can be a powerful tool for converting home equity into cash that can help you make ends meet. However, reverse mortgages also present some financial risk. The following information, provided by the Michigan Association of CPAs, presents the pros and cons of reverse mortgages to help you determine if this financial strategy is right for you....-MORE-

Reliance On Tax Preparer

You may be able to escape the negligence penalty by showing you relied on a professional preparer to complete your tax return. However, getting a paid preparer to sign your return doesn't automatically mean you can escape the penalty. To rely reasonably upon advice so as to negate an accuracy-related penalty you must prove by a preponderance of the evidence that you meet all of the following requirements:

(1) The adviser was a competent professional who had sufficient expertise to justify reliance
(2) you provided necessary and accurate information to the adviser, and
(3) you actually relied in good faith on the adviser's judgment.

But you've got to be able to show that you provided the necessary information to the preparer. In addition, you have to show you reviewed the return before signing it.

A/N Group, Inc.

Sunday, May 14, 2006

WE ONLY HAVE ONE MOTHER, One Mommy,One Mother in this World, One life.Don't wait for the Tomorrow's to tell Mom, you love her"~Author Unknown~

"To the world you might just be one person,but to one person you might just be the world."~Author Unknown~

Wednesday, May 10, 2006

God made a wonderful mother,A mother who never grows old;He made her smile of the sunshine,And He moulded her heart of pure gold;In her eyes He placed bright shining stars,In her cheeks fair roses you see;God made a wonderful mother,And He gave that dear mother to me.
~By Pat O'Reilly

The Financial Side Of Buying Your First Home

It’s spring, the time of year when “for sale” signs pop up on lawns as quickly as wildflowers. If you’ve been thinking about buying your first home, you probably already know that it’s likely to be one of the biggest investments you’ll make. The best way to approach your purchase is as an educated consumer. The following advice from the Michigan Association of CPAs will help get you started....-MORE-

Sunday, May 07, 2006

Protect Your Identity

Learn What To Do If Your Identity Is Stolen And More

Internal Revenue Srtvice

Thursday, May 04, 2006

Don't Trust Your Son/Daughter-In-Law?

Or maybe you don't trust your own children with money. It's not unusual, and there's often good reason. But if you give funds to your children,the monies can become marital property and can go to your son-in-law if the couple divorces. The old remedy was a trust with your children or grandchildren as the beneficiaries. But there are costs associated with setting them up and with maintaining them. Since both costs are largely fixed,,trusts make more sense. If you have grandchildren who will be going to college, funding a 529 plan is a smart and cheap move. Someone's going to have to pay for college and the funds can't be touched by the parents. If your assets are substantial, discuss the issue with your financial advisor.

MESP - Michigan Education Savings Plan

Wednesday, May 03, 2006

IRS Penalties And Interest Charges

April 15th is the deadline for most people to file their individual income tax return and pay any tax owed. Tax returns are checked for mathematical accuracy. If there is any money owed, you will be sent a bill. Generally, interest is charged on any unpaid tax from the due date of the return until the date of payment.

Internal Revenue Service

Michigan Income Tax: Penalty Charges For Failure To File Or Pay

For Notices of Intent to Assess/Assessments issued on or before February 28, 2003:

A penalty of $10.00 or 5 percent of the tax, whichever is greater, shall be added if the failure is for not more than 1 month, with an additional 5 percent penalty for each additional month or fraction of a month during which the failure continues or the tax and penalty is not paid, to a maximum of 50 percent.

For Notices of Intent to Assess/Assessments issued after February 28, 2003:

A penalty of 5 percent of the tax shall be added if the failure is for not more than 2 months, with an additional 5 percent penalty for each additional month or fraction of a month during which the failure continues or the tax and penalty is not paid, to a maximum of 25 percent

Michigan Treasury

Back Taxes: Filing Late Tax Returns

Essential Information to Help You File Back Taxes. If you haven't filed your taxes in a few years, you may be wondering what options you have. You may be surprised to learn that filing your tax returns can be the quickest way out of tax trouble. But you need to protect yourself. Here's how.

Homeownership: The Tax Implications Of Trading Down

Is it time to trade down to a smaller home? That’s a question more and more homeowners – particularly baby boomers – are asking themselves. Whether you’re thinking about downsizing because you are facing financial or health issues, have recently become an empty nester or are just tired of maintaining a large home, be sure to take the time to understand the tax rules. The Michigan Association of CPAs provides the following overview....-MORE-

Monday, May 01, 2006

Suspicious e-Mails and Identity Theft
The Internal Revenue Service issues an alert on the misuse of the IRS name in e-mails and identity theft schemes.