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Last Chance to Receive a Refund for 1999
The IRS has announced that 1.9 million people who paid taxes but did not
file a tax return for 1999 will lose more than $2.5 billion in refunds if
they do not file their returns by April 15, 2003. These returns must
be completed, mailed, and postmarked by this date. If the
return is not mailed by April 15th, the $2.5 billion will become the
property of the U.S. Treasury. If a taxpayer has not filed returns
for 2000 or 2001, the IRS will hold any 1999 refunds until the missing
returns are filed. This is your last chance! Don't miss out!
Armed Forces Tax Fairness Act
Congress is now considering H.R. 878 the
Armed Forces Taxes Fairness Act. This is designed to provide
tax-free death benefits to survivors of military personnel, the exclusion
of the capital gains tax on the sale of their homes, the exclusion of
payments received under the department of defense homeowners assistance
program, and the expansion of the combat filing rules to include
operations designated as a contingency operation by the Secretary of
Defense. If you wish to support our troops, who are defending us
from terrorism, please let your congressman know your feelings on this
act.
Jobs and Growth Tax Act of 2003
The President's economic growth package
has been introduced to congress as H.R.2, the Jobs and Growth Tax Act of
2003. It would expand the 10% tax bracket to the first $7,000 for
single returns and $14,000 for joint returns. It accelerates the
reduction of the individual tax rates. This would mean that a
taxpayer in the 27% bracket would see their rates lowered to 25%.
Those in the 30% will be lowered to 28%. Those in the 35% will be
lowered to 33%. Those in the 38.6% will be lowered to 35%. It
will provide relief from the marriage penalty. The standard
deduction for married filing a joint return will be exactly twice the
amount of a single taxpayer, and the top dollar of the 15% tax bracket
would be exactly twice the amount for a single taxpayer. For 2003
this would result in the standard deduction rising from $7,950 to $9,500.
It would increase the child credit to $1,000 for children under 17.
It would eliminate the double taxation of dividends. It would allow
business to expense more of the equipment it purchases. It would
make the tax reductions enacted in 2001 permanent.
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Where's My Refund?
As a convenience to our clients, we have
added a "Where's
My Refund?" button to our web site. If you have filed your
return more than 3 weeks ago, you may click the button and you will be
linked to the IRS. Answer three questions: (Social Security
number, filing status, and refund amount) and you will be told when your
return was received and when your check was or will be mailed. You
and your friends may use this feature as many time as you desire.
Offshore Credit Cards
The IRS is now actively pursuing
taxpayers who have offshore credit cards. The IRS is concerned that
taxpayers have used these credit card accounts to hide and launder their
income. The IRS has started the OFFSHORE VOLUNTARY COMPLIANCE
INITIATIVE. Taxpayers who participate, must report their correct tax
liability, provide full details on those who promoted the scheme, and
apply by April 15th. Those who do not participate will be subject to
payment of the taxes due, interest, penalties, and criminal prosecution.
It is not illegal to have a credit, debit, or other payment card issued by
an offshore financial institution. However, such cards can provide
easy access to offshore funds and accounts in tax haven or bank secrecy
countries that allow income to be hidden. U.S. citizens are required
to pay tax on all of their worldwide income. If you think that this
program applies to you, contact us immediately! Time is running out!
Financial Truth #1
"WEALTH DOES NOT COME FORM EARNING MORE,
IT COMES FROM SPENDING LESS THAN YOU EARN." This truth is both
simple and easily overlooked. Most people can identify friends,
whose finances are worse off after increasing their income. The
classic examples are those who won the lottery. These winners have
increased their lifestyles to the point that they are broke. Most of
us have heard the saying, "PAY YOURSELF FIRST." If we would just
take the first 10% of our earnings and invest it over our working lives,
we would all have more wealth than we ever could have imagined! We
all must learn to live on less than what we earn. If we do this we
will be content, out of debt, and on our way to wealth.
James E. Newland, CPA
939 Center Road
Eastlake, Ohio 44095
440-951-9799
Service@NewlandCPA.com
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