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	<title>enasacentroamerica &#187; Tax</title>
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	<description>Financial Information For Better Live</description>
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		<title>Flat Tax Vs the Current Tax System</title>
		<link>http://www.enasacentroamerica.org/flat-tax-vs-the-current-tax-system/</link>
		<comments>http://www.enasacentroamerica.org/flat-tax-vs-the-current-tax-system/#comments</comments>
		<pubDate>Fri, 10 Feb 2012 10:21:02 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Tax]]></category>
		<category><![CDATA[Congressional Interest]]></category>
		<category><![CDATA[Contentment]]></category>
		<category><![CDATA[Corporate Profits]]></category>
		<category><![CDATA[Economic Efficiency]]></category>
		<category><![CDATA[Fundamental Tax Reform]]></category>
		<category><![CDATA[National Sales Tax]]></category>
		<category><![CDATA[Tax Rates]]></category>
		<category><![CDATA[Wages]]></category>

		<guid isPermaLink="false">http://www.enasacentroamerica.org/flat-tax-vs-the-current-tax-system/</guid>
		<description><![CDATA[The current tax system, with its graduated tax on individual incomes, its separate tax on corporate profits, its gift and estate taxes on the transfer of wealth, and its separate wage tax to fund the Social Security and Wealth systems, has many critics. It is said to cost the country in lost time, economic efficiency, [...]]]></description>
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<p align="justify"><br/><br/>The current tax system, with its graduated tax on individual incomes, its separate tax on corporate profits, its gift and estate taxes on the transfer of wealth, and its separate wage tax to fund the Social Security and Wealth systems, has many critics. It is said to cost the country in lost time, economic efficiency, trade, and contentment. Reform proposals have proliferated, ranging from a broader-based, flatter-rate income tax to scrapping the system altogether in favor of a national sales tax or some other form of national consumption tax.<br/><br/>The idea of replacing our current income tax system has been a topic of perennial congressional interest. Although many recent proposals are referred to as &#8220;flat taxes,&#8221; most actually go much further than merely adopting a flat-rate tax structure and would change the tax base from income to consumption. More recently, the politicians have indicated some interest in such fundamental tax reform, specifically referring to a national retail sales tax.<br/><br/>In theory, every country could construct a tax system using one or a combination of three main tax bases: (a) income, wages, or (b) consumption.<br/><br/>Income and wage-based taxes are familiar and relatively easy to understand. Under a comprehensive income tax, all income, whether from labor or capital, would be included in the tax base. A wage-based tax would be levied only on income from labor; income from capital would be excluded from the base. Obviously, wages provide a smaller tax base than income and would therefore require higher tax rates to raise the same revenue as a tax based on all income.<br/><br/>In its broadest sense, income is a measure of the command of resources that an individual acquires during a given time period. Conceptually, an individual has two options with respect to his income; he can consume it or save it. This relationship means that by definition income must equal consumption plus saving. This relationship helps in understanding how a comprehensive consumption based tax might be levied at the individual level. An individual would add up all his income as he does under the current tax system but would then subtract out his net saving (saving minus borrowing) or add net borrowing. The result would produce a tax based on consumption at the individual level.<br/><br/>A consumption tax could also be collected at the retail level as a retail sales tax on final consumption. Or like in Albania and many other countries it could be collected at each stage of the production process in the form of a value-added-tax (VAT). With the VAT, firms face a tax on gross receipts less purchases of materials, goods for resale and capital to be used in the business. A VAT can be implemented using either a credit-invoice method or a subtraction method. Another way of collecting the flat tax would split the VAT base between firms and individuals. Firms would deduct wages from their tax base and individuals would pay a tax directly on their wages. Although the point of collection differs (individual level, retail level, or firm level), when defined comprehensively, the tax base is the same: consumption.<br/><br/>Regardless of the point or form of collection, however, a consumption tax is ultimately paid by the individual consumer. Because consumption is smaller than income, a comprehensive consumption tax would require higher tax rates than a comprehensive income tax to raise the same revenue, although with a low savings rate, the bases (and thus tax rates) are very close.<br/><br/>Other developed nations have VATs (of the credit-invoice type), but also have income taxes. Their VATs do not replace income taxes, but rather finance a higher level of government spending.<br/><br/>Probably the most often repeated argument in favor of switching to a flat-rate consumption tax is that it will make the economy more efficient and will increase private savings. When evaluating this argument, however, comparisons should not be made between the current income tax system and an ideal consumption tax. The economic efficiency or inefficiency of a tax system may be judged by its effects on behavior. To the degree that the tax system distorts economic behavior (from what it would be in the absence of the tax), it is economically inefficient. The distortion prevents the efficient allocation of resources. Basically, with the exception of lump-sum or head taxes, all taxes, regardless of whether they are based on income or consumption, distort behavior and affect the allocation of resources.<br/><br/>Both an income and a consumption tax distort the choice between labor and leisure. For example, under either tax, the price of leisure is reduced relative to the consumption an individual could finance with an extra hour of labor.<br/><br/>An income tax also distorts the choice between present and future consumption (saving). Under an income tax, the return to savings is subject to tax. This reduces the resources an individual will have available for consumption in the future, and hence raises the price of future consumption relative to the price of present consumption. In contrast, a tax on consumption is neutral with respect to the choice between present and future consumption. The relative price of future consumption in terms of present consumption is the same as if there were no taxes.<br/><br/>Many economists have argued, however, that a consumption tax is superior in achieving economic efficiency (i.e., in leading individuals to consume and work in a more optimal fashion) because of the elimination of the distortion between present and future consumption. They base this argument on the simulated outcomes of inter-temporal models, which virtually always predict a gain in efficiency from the shift from flat rate income to flat rate consumption taxes. One reason for this predicted efficiency gain &#8211; which often does not occur with a shift from an income to a wage tax base is that a consumption tax is the equivalent of a tax on wages and a lump sum tax on existing wealth.<br/><br/>It appears that, on the whole, switching from an income to a consumption tax would probably not produce great improvements in economic efficiency. Nonetheless, even small efficiency gains may be important because they continue year after year. However, similar gains might also be achieved though income tax reform.<br/><br/>Proposals to shift the tax base from an income to a consumption base (most proposals) would shift the tax burden substantially across generations. The flat tax, for example, has a consumption base, although it appears to be a wage tax for individuals. The burden of tax would be shifted from wages and capital income to consumption, which is equivalent to wages and old capital (both principal and return). Since older individuals own capital, the burden would tend to be shifted to those individuals.</p>
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		<title>Tax Resolution &#8211; When The Unthinkable Happens</title>
		<link>http://www.enasacentroamerica.org/tax-resolution-when-the-unthinkable-happens/</link>
		<comments>http://www.enasacentroamerica.org/tax-resolution-when-the-unthinkable-happens/#comments</comments>
		<pubDate>Tue, 07 Feb 2012 06:50:21 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Tax]]></category>
		<category><![CDATA[Best Bet]]></category>
		<category><![CDATA[Favorable Tax]]></category>
		<category><![CDATA[Groceries]]></category>
		<category><![CDATA[Irs Attorney]]></category>
		<category><![CDATA[Resolution Options]]></category>
		<category><![CDATA[Tax Advice]]></category>
		<category><![CDATA[Tax Help]]></category>
		<category><![CDATA[Tax Resolution]]></category>

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		<description><![CDATA[You hoped it would never happen to you, but it has. You&#8217;re in trouble with the IRS, and despite all the nights you&#8217;ve stayed up until dawn trying to rearrange your finances so that you can pay them what they want; despite cutting back on all the spending, including the groceries&#8211;which wasn&#8217;t hard because you [...]]]></description>
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<p align="justify"><br/><br/>You hoped it would never happen to you, but it has. You&#8217;re in trouble with the IRS, and despite all the nights you&#8217;ve stayed up until dawn trying to rearrange your finances so that you can pay them what they want; despite cutting back on all the spending, including the groceries&#8211;which wasn&#8217;t hard because you have no appetite any more; and despite doing your best not to sink into full-blown depression, the problem isn&#8217;t going away. You need a favorable tax resolution, but you have no idea where you can turn to find it.<br/><br/>Where To Find tax Resolution Help<br/><br/>Your best bet for getting the tax resolution most advantageous to you and your family is to get a tax expert to represent you in any dealings with the IRS. Hiring a tax attorney will give you a clear picture of what the IRS can and cannot do, and when you have an honest assessment of the tax resolution options available to you, you can proceed in pursuing the most favorable one.<br/><br/>If hiring a tax attorney is too much of a financial reach for you in your present situation, consider getting the services of a qualified tax advisor or tax accountant. A tax advisor is someone with a clear understanding of the Tax Code and can advise you on your tax resolution options but will not cost as much as a tax attorney.<br/><br/>While a tax accountant is more qualified to advise you on the preparation of your return, he or she may be able to offer some suggestions regarding tax resolution based on an understanding of your financial situation.<br/><br/>You can take action immediately in looking for a tax resolution by going online and consulting a website which offers tax resolution advice. You may have gone as far as you can with your own investigation of your alternatives, and a tax resolution service will be able to supply you with professional opinions on the best course of action.<br/><br/>Avoiding Tax Resolution<br/><br/>The best way to handle the issue of tax resolution, however, is to keep it from becoming an issue in the first place. Get the professional advice before you file a tax return, instead of waiting for your omissions and mistakes to catch up with you.<br/><br/>Hire a tax accountant and provide him or her with all your financial records from the previous year whether or not you think they are important. Keep those records in organized, so you won&#8217;t be paying the accountant to alphabetize your restaurant receipts. Start practicing tax responsibility, and tax resolution need never be a concern.</p>
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		<title>Tax Shelters the IRS Doesn&#8217;t Like</title>
		<link>http://www.enasacentroamerica.org/tax-shelters-the-irs-doesnt-like/</link>
		<comments>http://www.enasacentroamerica.org/tax-shelters-the-irs-doesnt-like/#comments</comments>
		<pubDate>Wed, 04 Jan 2012 22:21:59 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Tax]]></category>
		<category><![CDATA[Cnn]]></category>
		<category><![CDATA[Daily Journals]]></category>
		<category><![CDATA[Kpmg]]></category>
		<category><![CDATA[Legal Strategies]]></category>
		<category><![CDATA[Pension Plans]]></category>
		<category><![CDATA[Planning Strategies]]></category>
		<category><![CDATA[Tax Losses]]></category>
		<category><![CDATA[Taxable Income]]></category>

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		<description><![CDATA[Tax shelters can be good&#8211;reducing your taxable income. But tax shelters can be bad&#8211;illegal and causing participants to commit tax fraud. How to know what shelters to avoid? The key is education, read the IRS forms, and pay attention. The old caveat, if it sounds too good, it&#8217;s most likely bad, is very often true. [...]]]></description>
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<p align="justify"><br/><br/>Tax shelters can be good&#8211;reducing your taxable income. But tax shelters can be bad&#8211;illegal and causing participants to commit tax fraud. How to know what shelters to avoid? The key is education, read the IRS forms, and pay attention. The old caveat, if it sounds too good, it&#8217;s most likely bad, is very often true. The best tax shelter for the business owner is to use sound tax planning strategies and think of your business as a legal way to avoid and rightfully reduce taxes. It is all in the deductions and keeping good records (receipts, checks, daily journals).<br/><br/>A tax shelter is a type of investment that allows people to reduce their tax liability. Pension plans and real estate investments are good examples. Persons can reduce taxable income if you have losses on investments. These are all legal strategies. But fraudulent or &#8220;abusive tax shelters&#8221; are considered by the IRS to use many schemes to filter or hide transactions: trusts, off-shore credit/debit cards, hedges, circular cash flows, defeasances, insurance schemes, and other activities are all attempts to hide. If investments insulate the client from significant economic risk, the courts have decided they are not appropriate.<br/><br/>The IRS considers tax shelters &#8220;abusive&#8221; when they are designed solely for avoiding taxes. They have no other significant business purpose. There are various means to do the abusive practices&#8211;helping clients falsify tax losses or report phony tax losses. In 2005, KPMG, a Big Four accounting firm, cost the U.S. $2.5 billion, according to the Department of Justice, by helping clients to develop tax losses. The following scenario (from Grace Wong, a reporter from CNN&#8217;s website &#8220;Money&#8221;) is a simplified explanation of one method such firms used to help clients develop tax losses.<br/><br/>Here&#8217;s an example:<br/><br/>* Joe is a new millionaire and has capital gains of $20 million. He wants to create an &#8220;artificial&#8221; loss.<br/><br/>* Joe places an option in identical amounts and prices on the euro /U.S. dollar for exchange rates. He buys a call option with the right to buy Euros at a certain price on or before a certain date for a premium of $20 million. He writes an option with the same strike price and expiration date for $20 million. The premiums offset each other.<br/><br/>* Joe then transfers the option to a partner in a friendly &#8220;accommodation&#8221; partnership, someone who paid big fees to enter into a partnership with no real business purpose.<br/><br/>* When he sells for zero profit, Joe claims a tax loss of $20 million, even though he&#8217;s incurred no real economic loss.<br/><br/>Hard to follow the details? The concepts of many bad tax shelters lack definable business purpose. An &#8220;abusive tax shelter&#8221; is a marketing scheme that offers tax transactions with little or no economic value. In the real world people invest money to make money. The bad kind of tax shelters offer inflated tax savings based on large tax write offs and tax credits out of proportion to your investment. There is no real economic investment. An abusive tax shelter often involves little risk and its tax write off ratio is frequently much greater than one-to-one. If you use a tax shelter, be sure to file Form 8271 from the IRS. Read the experts. Read the known tax shelter abusers listed on the government&#8217;s IRS site. And below are some of the worst schemes for abusive tax shelters.<br/><br/>Tax Shelters the IRS Dislikes <br /> Lease In Lease Out(LILO)  Sale In Lease Out (SILO)  Partnership Straddle Corporation  Owned Life Insurance Sham Transactions (COLI)  Overseas Shelters </p>
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		<title>Tax Deductible Massage</title>
		<link>http://www.enasacentroamerica.org/tax-deductible-massage/</link>
		<comments>http://www.enasacentroamerica.org/tax-deductible-massage/#comments</comments>
		<pubDate>Thu, 22 Dec 2011 17:56:42 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Tax]]></category>
		<category><![CDATA[Blood Circulation]]></category>
		<category><![CDATA[Deductible Expenses]]></category>
		<category><![CDATA[Medical Care Expenses]]></category>
		<category><![CDATA[Medical Conditions]]></category>
		<category><![CDATA[Medical Insurance]]></category>
		<category><![CDATA[Medicare Costs]]></category>
		<category><![CDATA[Mileage Expense]]></category>
		<category><![CDATA[Toxic Substances]]></category>

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		<description><![CDATA[You may very well have been getting a tax-deductible massage and did not know it. Yes, that&#8217;s correct! Your massage therapy may very well be tax deductible.Many deductions, such as medical expenses, require you to overcome a minimum. For example, only medical expenses that exceed 7.5% of your adjusted gross income are allowed. This means [...]]]></description>
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<p align="justify"><br/><br/>You may very well have been getting a tax-deductible massage and did not know it. Yes, that&#8217;s correct! Your massage therapy may very well be tax deductible.<br/><br/>Many deductions, such as medical expenses, require you to overcome a minimum. For example, only medical expenses that exceed 7.5% of your adjusted gross income are allowed. This means an individual with an adjusted gross income of $40,000 can only deduct medical expenses above and beyond $3,000.<br/><br/>Your medical care expenses typically include medical insurance, some Medicare costs, and miscellaneous costs of health care. These could include costs for making alterations to your home prescribed for your medical condition, removing toxic substances from your home, enrolling in weight-loss programs, dental work, and travel-related expenses to get to your medical care, including mileage expense. Even that massage you got to relieve stress MAY be deductible. Other potentially deductible expenses include prostheses, and ointments or lotions for wound and skin care.<br/><br/>Deductible medical services can be performed by someone other than your doctor. If you have a condition like a bad back and your doctor says you need regular massage, this treatment is deductible. Make sure you get a prescription for massage from your doctor saying you need these services.<br/><br/>Remember that the cost of the massage therapy is TAX DEDUCTIBLE as long as a physician prescribes it.<br/><br/>If you routinely get massage to help manage stress, blood circulation, chronic pain, or other medical conditions ask your doctor for a prescription and get a receipt for each massage from your massage therapist.</p>
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		<title>Tax Form 941 &#8211; Employer&#8217;s Quarterly Federal Tax Return</title>
		<link>http://www.enasacentroamerica.org/tax-form-941-employers-quarterly-federal-tax-return/</link>
		<comments>http://www.enasacentroamerica.org/tax-form-941-employers-quarterly-federal-tax-return/#comments</comments>
		<pubDate>Sat, 10 Dec 2011 15:16:03 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Tax]]></category>
		<category><![CDATA[Agricultural Employers]]></category>
		<category><![CDATA[Annuities]]></category>
		<category><![CDATA[Federal Income Tax]]></category>
		<category><![CDATA[Group Term Life]]></category>
		<category><![CDATA[Group Term Life Insurance]]></category>
		<category><![CDATA[Household Employees]]></category>
		<category><![CDATA[Medicare Tax]]></category>
		<category><![CDATA[Sick Pay]]></category>

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		<description><![CDATA[This article is (hopefully!) a simplified version of the &#8220;Instructions for Form 941&#8243;. Form 941 is what most employers use to record and pay income tax, social security, and Medicare withholdings. Its not the step by step, line by line version, but will teach &#8220;show you the ropes&#8221; of Form 941.Purpose And Filing of Form [...]]]></description>
			<content:encoded><![CDATA[<div style="float:left; padding: 12px"><a href="/wp-content/uploads/2010/08/tax37.jpg"><img src="/wp-content/uploads/2010/08/tax37.jpg" title='' alt='' /></a></div>
<p align="justify"><br/><br/>This article is (hopefully!) a simplified version of the &#8220;Instructions for Form 941&#8243;. Form 941 is what most employers use to record and pay income tax, social security, and Medicare withholdings. Its not the step by step, line by line version, but will teach &#8220;show you the ropes&#8221; of Form 941.<br/><br/><strong>Purpose And Filing of Form 941:</strong><br/><br/>If Joe is an employer, Federal law requires that he takes out of his employees&#8217; paychecks (withholds) sums for federal income tax, social security tax, and Medicare tax. Under this withholding system, taxes withheld from Joe&#8217;s employees are credited to them when they pay their &#8220;tax liabilities&#8221;. Of course, Joe has to withhold from himself, to help pay his social security and Medicare taxes.<br/><br/>The IRS warns Joe not to use form 941 to report withholdings on nonpayroll payments including but not limited to pensions, annuities, and gambling winnings. The IRS also says that Joe must file an initial 941, then one each quarter, even if he has no taxes to report, unless he fits one of the exceptions listed below.<br/><br/><strong>Exceptions</strong> <br />  Seasonal employers have no need to file form 941 in quarters they have paid no wages. Employers of solely Household employees don&#8217;t usually file form 941. Employers of farm employees don&#8217;t usually file form 941 either. Agricultural employers file form 943. <br/><br/>Unless Joe fits on of these exceptions, he has to file form 941.<br/><br/><strong>Joe must use form 941 to report these amounts to the IRS:</strong> <br /> Wages he has paid. Tips his employees were given. Federal income tax he withheld. All the social security and Medicare taxes he withheld (including his own). The current quarter&#8217;s adjustments to Medicare and social security taxes. These adjustments are for fractions of cents, sick pay, group-term life insurance, and tips. Advanced EIC payments. Credit for COBRA premium assistance payments. <br /><strong>Business/Name/Address Changes</strong><br/><br/>If Joe sells or transfers his business, both he and the new owner must file form 941 (two forms, one by Joe, and one by the new owner) for the quarter in which the transfer happened. If two businesses merge, the continuing one must file a return for the quarter in which the change took place, and the other should file a final return. See the *&#8221;Instructions for form 941&#8243; to learn about changing forms of business.<br/><br/>If Joe changes his business name or address, he must notify the IRS ASAP. In this event, he must write to the IRS office where his returns are filed, and complete and mail form 8822 (Change of Address) for address changes.<br/><br/>In the event that Joe&#8211;or the government&#8211;closes his business he must file a final return. There will be other forms Joe has to file is he goes out of business.<br/><br/><strong>When must Joe File Form 941?</strong><br/><br/>Joe must file his first form 941 for the quarter in which he first paid wages that were subjected to social security and medicare taxes; or subject to federal income tax whithholding. He must then file every quarter thereafter (each quarter is three months) even if he has no taxes to report, unless he is filing/has filed his final return, or one of the exceptions apply to him. Joe must file form 941 only ONCE for each quarter, even if he chooses to file it electronically.<br/><br/><strong>Quarterly form 941 is due the last day of the month following the end of the quarter it is to be filed for. Quarters are:</strong> <br />  <strong>January, February, March</strong>.</p>
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		<title>Tax Return Online in Canada &#8211; File an Online Tax Return and Get Fast Tax Refund</title>
		<link>http://www.enasacentroamerica.org/tax-return-online-in-canada-file-an-online-tax-return-and-get-fast-tax-refund/</link>
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		<pubDate>Mon, 14 Nov 2011 12:37:57 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Tax]]></category>
		<category><![CDATA[Canadian Income Tax]]></category>
		<category><![CDATA[Gst Hst Credit]]></category>
		<category><![CDATA[Guaranteed Income Supplement]]></category>
		<category><![CDATA[Income Tax Return]]></category>
		<category><![CDATA[Old Age Security]]></category>
		<category><![CDATA[Processing Times]]></category>
		<category><![CDATA[Tax Refunds]]></category>
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		<description><![CDATA[The Canada Revenue Agency is starting the process of the Canadian income tax returns at the middle of February. No matter how early you file, you&#8217;ll not be able to get information on the status of an income tax refund until the middle of March. You should also wait until at least four weeks after [...]]]></description>
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<p align="justify"><br/><br/>The Canada Revenue Agency is starting the process of the Canadian income tax returns at the middle of February. No matter how early you file, you&#8217;ll not be able to get information on the status of an income tax refund until the middle of March. You should also wait until at least four weeks after you file your return before checking on the status of an income tax refund.<br/><br/>Processing Times for Tax Refunds. <br />The length of time it takes the CRA to process your tax return and refund depends on how and when you file your return.<br/><br/>For income tax returns filed before April 15 <br />Paper returns &#8211; four weeks <br />TELEFILE, NETFILE or EFILE returns &#8211; two weeks<br/><br/>For income tax returns filed after April 15 <br />Paper returns &#8211; six weeks <br />TELEFILE, NETFILE or EFILE returns &#8211; two weeks<br/><br/>Who Has to File a Canadian Income Tax Return? <br />Most Canadian residents have to file a Canadian Income Tax Return for the previous year.<br/><br/>-To pay the accurate amount of income tax owed. <br />-To pay back overpayment of benefits such as Employment Insurance. <br />-To claim certain benefits, such as the GST/HST Credit or the Guaranteed Income Supplement under the Old Age Security Program.<br/><br/>Some international and non-resident individuals must also file a Canadian income tax return.<br/><br/>Deadline for Filing Your Income Tax Return: <br />The deadline for filing your tax return is midnight April 30. Normally, Canadian Individual returns for any particular year must be filed by April 30 of the following year. There is no provost for generally covering this deadline, but there are a some exceptions.<br/><br/>The Canada Revenue Agency will charge a penalty and interest on the unpaid amount if you file your income tax return after the deadline.</p>
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		<title>Federal Income Tax Rebates &#8211; Get Your Tax Money Here!</title>
		<link>http://www.enasacentroamerica.org/federal-income-tax-rebates-get-your-tax-money-here/</link>
		<comments>http://www.enasacentroamerica.org/federal-income-tax-rebates-get-your-tax-money-here/#comments</comments>
		<pubDate>Wed, 14 Sep 2011 11:05:49 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Tax]]></category>
		<category><![CDATA[Exceptions]]></category>
		<category><![CDATA[Federal Income Tax]]></category>
		<category><![CDATA[Federal Income Tax Return]]></category>
		<category><![CDATA[Freebie]]></category>
		<category><![CDATA[Generosity]]></category>
		<category><![CDATA[Money For Nothing]]></category>
		<category><![CDATA[Rebate Check]]></category>
		<category><![CDATA[Threshold]]></category>

		<guid isPermaLink="false">http://www.enasacentroamerica.org/federal-income-tax-rebates-get-your-tax-money-here/</guid>
		<description><![CDATA[Everyone knows you never get something for nothing.Right? Well, that is usually true. But hold on to your hats, people. Not only are you going to get some MONEY for nothing, it&#8217;s coming from the least likely place of all &#8211; the federal government!What, you say? How can this be?Here&#8217;s how: the U.S. government, in [...]]]></description>
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<p align="justify"><br/><br/><strong>Everyone knows you never get something for nothing.</strong><br/><br/>Right? Well, that is usually true. But hold on to your hats, people. Not only are you going to get some MONEY for nothing, it&#8217;s coming from the least likely place of all &#8211; the federal government!<br/><br/>What, you say? How can this be?<br/><br/>Here&#8217;s how: the U.S. government, in all its generosity, has decided that in order to try and help what appears to be a looming recession, they will issue rebate checks to somewhere around 117 million people. Even if you earned money last year but not enough to pay taxes on.<br/><br/><strong>Here&#8217;s how it will work:</strong><br/><br/>-Most people will get somewhere between $600 and $1,200, although there will be exceptions to this. For example, some individuals may only get $300, but that would be true only if they made at least $3,000 in 2007 but didn&#8217;t pay any federal income taxes on it.<br/><br/>-To get the maximum $600 per individual, or $1,200 per couple rebate, you must have paid federal income taxes in 2007 and made at least $3,000.<br/><br/>-If you have children, you will get an additional $300 per dependent child.<br/><br/>-The rebates start phasing out if you are an individual with an adjusted gross income of over $75,000, or a couple with adjusted gross income of over $150,000. Note that these income thresholds are slightly higher if you have children, but the exact threshold numbers have not yet been released.<br/><br/>-The government will issue checks based on the returns filed in the spring of 2008 for tax year 2007.<br/><br/>It was announced that the checks are tentatively set to start being mailed in May of 2008. It would, therefore, be in your best interests to prepare and file your federal income tax return as soon as possible. The longer you wait to file, the longer you will wait for your rebate check.<br/><br/>If this isn&#8217;t a good reason to prepare and file your federal income tax return early this year, what else is? Look in your mailbox in a few months for that nice freebie, and don&#8217;t spend it all in one place!</p>
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		<title>Tax Identification Number</title>
		<link>http://www.enasacentroamerica.org/tax-identification-number/</link>
		<comments>http://www.enasacentroamerica.org/tax-identification-number/#comments</comments>
		<pubDate>Wed, 14 Sep 2011 07:42:57 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Tax]]></category>
		<category><![CDATA[Direct Taxes]]></category>
		<category><![CDATA[Government Taxation]]></category>
		<category><![CDATA[Indirect Tax]]></category>
		<category><![CDATA[Indirect Taxes]]></category>
		<category><![CDATA[Productive Investment]]></category>
		<category><![CDATA[Tax Identification Number]]></category>
		<category><![CDATA[Tax Payers]]></category>
		<category><![CDATA[Tax Structure]]></category>

		<guid isPermaLink="false">http://www.enasacentroamerica.org/tax-identification-number/</guid>
		<description><![CDATA[Taxation is a powerful instrument to determine the fiscal policy of a nation and help to build up the economic structure of a country. Tax is a compulsory payment to the government.Taxation is in the nature of a compulsory levy and there is no quid pro quo between the amount paid and the services provided [...]]]></description>
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<p align="justify"><br/><br/>Taxation is a powerful instrument to determine the fiscal policy of a nation and help to build up the economic structure of a country. Tax is a compulsory payment to the government.<br/><br/>Taxation is in the nature of a compulsory levy and there is no quid pro quo between the amount paid and the services provided by the government.<br/><br/>The primary purpose of taxation is the mobilization of resources and canalizing the same for productive investment. Taxation can also be used as a measure to promote equity and reduce disparities or to encourage or discourage consumption of particular items.<br/><br/>Tax structure in India<br/><br/>The system of taxation in India is very much primitive. For development of any nation and for civilization, imposition of tax within the framework of logical tax structure is utmost necessary. On this basis, system of taxation is broadly classified into two categories- Direct Taxes and Indirect Taxes. In fact, direct taxes include those taxes which the taxpayer pays directly on his income, wealth, etc. Direct taxes are mainly Central&#8217;s subject except professional tax and Agricultural Income-tax.<br/><br/>The difference between the two types of taxes is that in the case of direct taxes the burden or &#8216;incidence&#8217; is borne by the tax-payers themselves whereas in the case of an indirect tax, the burden can be shifted to another person.<br/><br/>Authority to collect taxes is conferred on the Central and State Government by the Constitution of out country.<br/><br/>Another feature of the Indian tax structure is the tendency to increase the proportion of indirect taxes. This had come down drastically to 16% by 1991. However, there has been some improvement in the subsequent years. For the year 1998-99 the ratio between indirect and direct taxes was 70:30. It had improved to 62:38 in 2001-02. Even at this rate, the economic consequence is that the burden will fall disproportionately on the poorer section, as indirect taxes, especially on commodities, affect the poorer sections more.<br/><br/>It must, however, be admitted that India&#8217;s tax effort since independence has been quite appreciable. The tax to GDP ratio (centre and states together) was 6% in 1950-51. In rose to 11% by 1970-71. Compared to many developing countries, India&#8217;s record of resource mobilization through taxes has been satisfactory.<br/><br/>&#8216;Tax&#8217; refers to payment of fund to governmental authorities against which no direct benefits may be expected by the tax payers. The governmental authority of any modern country is found to require huge financial resources to discharge various functions. The functions done by modern government may be of two basic types which are- (i) compulsory functions and (ii) optional functions. Traditional compulsory functions refer to the areas of activities relating to the defence of the country and maintenance of internal law and order. To discharge these compulsory functions any modern government is required to maintain security and police forces. Huge financial resource is essentially required to discharge such functions. Optional functions refer to various activities relating to improvement of socio-economic conditions of the people. In relation to such areas of activities a modern government, based on social welfare concepts is required to spend huge fund for development of economic infrastructure in the form of road and railway development, power generation, telecommunication development, educational and health care development and even implementation of various schemes for development of agricultural and industrial sectors of the country.<br/><br/>Federal Tax Identification Number<br/><br/>All the business has its own image and entity and the tax identification number is used to identify this entity. Simply to be said that it is used to identify employer&#8217;s tax accounts. It is also known as Employer Identification Number (EIN) or Taxpayer Identification Number (TIN). The Federal Tax Identification Number or Employer Tax Identification Number or EIN is a nine digit number and it is used to fulfill most of your business needs. It is to be mentioned that, Internal Revenue Service (IRS) assigns the federal tax ID number to identify the business.<br/><br/>The employer, sole proprietor, trust, non profit organization, partnership or other business entities may use this tax ID number. One can easily apply for a new tax identification number though there is already an EIN, due to the changes of ownership or some certain circumstances.<br/><br/>Before applying for EIN either telephone or fax, you have to complete Form SS-4. The federal tax identification number is applied on online also. It is open an avenue to the customer. Therefore you have to fill the form and other necessary criteria through online. You can also collect your Tax ID Number through online. In this whole process there may not be need to registration. The application process is proceeds to fill up the form.<br/><br/>Last of all it is to be said that, a business need a Federal Tax Identification Number or Employer Tax Identification Number, so that they can maintain their own image or entity in the market. It is to be noted that, the tax ID number could not be transfer in case of the transferring of any business. If the structure or ownership would be changed then a new tax ID number is required for the business. But above all you have to collect the relevant information to get an EIN.</p>
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		<title>Inheritance Tax vs Estate Tax, Inheritance Tax Exemptions</title>
		<link>http://www.enasacentroamerica.org/inheritance-tax-vs-estate-tax-inheritance-tax-exemptions/</link>
		<comments>http://www.enasacentroamerica.org/inheritance-tax-vs-estate-tax-inheritance-tax-exemptions/#comments</comments>
		<pubDate>Sat, 10 Sep 2011 01:14:46 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Tax]]></category>
		<category><![CDATA[Decedent]]></category>
		<category><![CDATA[Executor Of The Estate]]></category>
		<category><![CDATA[Federal Inheritance Tax]]></category>
		<category><![CDATA[Federal Inheritance Tax Rate]]></category>
		<category><![CDATA[Federal Tax]]></category>
		<category><![CDATA[Financial Responsibility]]></category>
		<category><![CDATA[Inheritance Tax Rate]]></category>
		<category><![CDATA[Tax Exemptions]]></category>

		<guid isPermaLink="false">http://www.enasacentroamerica.org/inheritance-tax-vs-estate-tax-inheritance-tax-exemptions/</guid>
		<description><![CDATA[What is the inheritance tax rate? There is no such thing as a federal inheritance tax rate. The inheritance tax is imposed on a state level, and not all states have one. For example, Texas does not impose an inheritance tax, and some states refer to an estate tax and an inheritance tax as the [...]]]></description>
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<p align="justify"><br/><br/>What is the inheritance tax rate? There is no such thing as a federal inheritance tax rate. The inheritance tax is imposed on a state level, and not all states have one. For example, Texas does not impose an inheritance tax, and some states refer to an estate tax and an inheritance tax as the same thing even though they are technically very different. Other terms you may hear used in place of inheritance tax are &#8220;death duty&#8221; in the United Kingdom, &#8220;estate duty&#8221; in Hong Kong, or &#8220;stamp duty&#8221; in Bermuda. Some places such as Australia and the British Virgin Islands do not currently have an inheritance tax nor have they ever had one.<br/><br/>DIFFERENCE OF AN ESTATE TAX AND INHERITANCE TAX<br/><br/>The difference between the estate tax and the inheritance tax lies with who is actually responsible for paying the taxes owed.<br/><br/>WHO PAYS THE ESTATE TAX?<br/><br/>With an estate tax it is the responsibility of the Administrator, or Executor, of the estate to pay the taxes. The taxes are calculated based on the entire value of the estate, and if the Administrator cannot pay the taxes out of the estate&#8217;s value then it becomes the responsibility of the heirs to pay the taxes. The federal government will impose this tax according to established guidelines which include the value of the estate.<br/><br/>WHO PAYS THE INHERITANCE TAX?<br/><br/>An inheritance tax is the individual responsibility of each heir. Determining the financial responsibility of the heirs for the inheritance tax is based on several key factors.<br/><br/>WHAT IS THE INHERITANCE TAX RATE? IT DEPENDS&#8230;<br/><br/>The inheritance tax rate varies depending on the relationship of the heir to the deceased (decedent). Each state may determine this rate, and if the heir is a distant relative or friend the inheritance tax rate will be much higher than if the heir is a spouse or child of the decedent.<br/><br/>A child may be entitled to an exemption of the first $3000 of their inheritance and be responsible for only a 7.5% tax on inheritance valued over $100,000. In contrast, a friend of the decedent may be taxed as much as thirty percent and only receive a tax exemption on the first hundred dollars.<br/><br/>Another consideration state government will make when determining the inheritance tax rate will be the fair market value of the property being transferred. Fair market value is not what it would cost to replace the property, but what you would be able to sell the property for if needed.<br/><br/>WHAT ARE THE INHERITANCE TAX EXEMPTIONS?<br/><br/>Your heirs may receive tax exemptions for taxes that have already been paid on the property and it is important to have all documents in a readily accessible location to prove that little or no debt is owed upon your death. If any of the inheritance has been designated for charitable organizations your heirs will not be held accountable for paying an inheritance tax on this portion of the estate.<br/><br/>FRAUDULENT INCOME TAX RETURNS TO AVOID THE INHERITANCE TAX<br/><br/>Opponents of the inheritance tax feel that in addition to an estate tax, the inheritance tax is harmful to families who may need the money immediately and cannot afford to pay harsh taxes imposed on them during an already emotionally difficult time. Critics also feel that taxes such as these encourage individuals to file fraudulent income tax returns by placing their money into annuities both on and offshore, and to establish trusts for their heirs to remove large amounts of property from their listed estate.<br/><br/>Call a professional estate planner such as Estate Street Partners if you wish to know more about how to reduce your estate tax, eliminate your inheritance tax, possibly eliminate some of your income tax and learn how to strategize your money and assets to be in compliance with the IRS and federal and state-specific regulations. Estate planning can be complex and taking the route of doing it yourself can lead to severe financial penalties.<br/><br/>SEEK KNOWLEDGEABLE AND PROFESSIONAL ESTATE PLANNING ADVICE<br/><br/>Inheritance tax information can be obtained by seeking the services of a knowledgeable estate planner. Since each state differs in the amount taxed to heirs, an estate planner will be able to provide accurate information involving up-to-date tax laws and ways to protect assets.<br/><br/>One of the more common means of protecting inheritance from taxes is to place money into trusts and elect a trustee to transfer the property to your beneficiaries upon your death. Once money has been allocated into a trust it is removed from you listed estate and upon your death it will be distributed to your heirs free from estate and inheritance taxes.<br/><br/>Some people also choose to give their money in the form of gifts to organizations and establish a charitable gift annuity. Receiving money from an annuity protects your heirs from paying any inheritance tax, although they may still be responsible for an early withdrawal penalty from the IRS. Failure to consult with an advisor could result in unnecessarily high taxes for your heirs. Please seek professional advice on these important financial matters.</p>
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		<title>Career Options For Tax Preparers</title>
		<link>http://www.enasacentroamerica.org/career-options-for-tax-preparers/</link>
		<comments>http://www.enasacentroamerica.org/career-options-for-tax-preparers/#comments</comments>
		<pubDate>Mon, 22 Aug 2011 03:43:47 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Tax]]></category>
		<category><![CDATA[Becoming A Tax Preparer]]></category>
		<category><![CDATA[Certificate Program]]></category>
		<category><![CDATA[Cpa Firms]]></category>
		<category><![CDATA[Crunch]]></category>
		<category><![CDATA[Nonprofit Organizations]]></category>
		<category><![CDATA[Tax Preparation Firms]]></category>
		<category><![CDATA[Time Basis]]></category>
		<category><![CDATA[Work Commitments]]></category>

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		<description><![CDATA[Tax preparation is a relatively easy career field to enter. All you need is a certificate, which is usually obtained through formal via one of the many online training schools or provided by the tax preparation firms themselves. To enroll in a certificate program you will need to possess either a high school diploma or [...]]]></description>
			<content:encoded><![CDATA[<div style="float:left; padding: 12px"><a href="/wp-content/uploads/2010/08/tax48.jpg"><img src="/wp-content/uploads/2010/08/tax48.jpg" title='' alt='' /></a></div>
<p align="justify"><br/><br/>Tax preparation is a relatively easy career field to enter. All you need is a certificate, which is usually obtained through formal via one of the many online training schools or provided by the tax preparation firms themselves. To enroll in a certificate program you will need to possess either a high school diploma or GED.<br/><br/>It should be noted that there are some important benefits in choosing a tax preparation school over training with a tax preparation firm. Most of the programs offered by training schools are conducted online so that you can review the coursework and complete assignments from the comfort of your own home and at a time which is most convenient to you. In addition, by participating in an online program you will have a greater choice of where to work, such as CPA firms, government agencies, as well as private and nonprofit organizations. Most of the tax preparation firms will be training you to work for their own office.<br/><br/>Career Options:<br/><br/>Temporary and Part time Work<br/><br/>Becoming a tax preparer is a great way to earn some extra money during the crunch of tax season. It is for this reason that the work appeals to retirees, students, as well as stay-at-home moms. There are also some tax preparers who have a full-time career in another field but perform this work to supplement their current earnings.<br/><br/>The income that can be earned over a relatively short period of time, usually from mid-January through mid-April can amount to several thousand dollars as fees typically range from $25. $50. per hour for preparing individual returns. In addition, the work can be performed on a part time basis with a great deal of scheduling flexibility, to include evenings and weekends. Indeed, it during these times when you are likely to meet with the majority of your clients as they are unable to come during the week due to their own work commitments.<br/><br/>Transition into Full Time<br/><br/>Because of the temporary nature of the work, this is also a great way to test whether this is the right career field for you while gaining some valuable new skills.</p>
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