First-Time Homebuyer Credit Extended to April 30, 2010; Some Current Homeowners Now Also Qualify

IR-2009-108, Nov. 24, 2009

WASHINGTON — A new law that went into effect Nov. 6 extends the first-time homebuyer credit five months and expands the eligibility requirements for purchasers.

The Worker, Homeownership, and Business Assistance Act of 2009 extends the deadline for qualifying home purchases from Nov. 30, 2009, to April 30, 2010. Additionally, if a buyer enters into a binding contract by April 30, 2010, the buyer has until June 30, 2010, to settle on the purchase.

The maximum credit amount remains at $8,000 for a first-time homebuyer –– that is, a buyer who has not owned a primary residence during the three years up to the date of purchase.

But the new law also provides a “long-time resident” credit of up to $6,500 to others who do not qualify as “first-time homebuyers.” To qualify this way, a buyer must have owned and used the same home as a principal or primary residence for at least five consecutive years of the eight-year period ending on the date of purchase of a new home as a primary residence.

For all qualifying purchases in 2010, taxpayers have the option of claiming the credit on either their 2009 or 2010 tax returns.

A new version of Form 5405, First-Time Homebuyer Credit, will be available in the next few weeks. A taxpayer who purchases a home after Nov. 6 must use this new version of the form to claim the credit. Likewise, taxpayers claiming the credit on their 2009 returns, no matter when the house was purchased, must also use the new version of Form 5405. Taxpayers who claim the credit on their 2009 tax return will not be able to file electronically but instead will need to file a paper return.

A taxpayer who purchased a home on or before Nov. 6 and chooses to claim the credit on an original or amended 2008 return may continue to use the current version of Form 5405.

Income Limits Rise

The new law raises the income limits for people who purchase homes after Nov. 6. The full credit will be available to taxpayers with modified adjusted gross incomes (MAGI) up to $125,000, or $225,000 for joint filers. Those with MAGI between $125,000 and $145,000, or $225,000 and $245,000 for joint filers, are eligible for a reduced credit. Those with higher incomes do not qualify.

For homes purchased prior to Nov. 7, 2009, existing MAGI limits remain in place. The full credit is available to taxpayers with MAGI up to $75,000, or $150,000 for joint filers. Those with MAGI between $75,000 and $95,000, or $150,000 and $170,000 for joint filers, are eligible for a reduced credit. Those with higher incomes do not qualify.

 New Requirements

Several new restrictions on purchases that occur after Nov. 6 go into effect with the new law:

• Dependents are not eligible to claim the credit.
• No credit is available if the purchase price of a home is more than $800,000.
• A purchaser must be at least 18 years of age on the date of purchase.

For Members of the Military

Members of the Armed Forces and certain federal employees serving outside the U.S. have an extra year to buy a principal residence in the U.S. and still qualify for the credit. An eligible taxpayer must buy or enter into a binding contract to buy a home by April 30, 2011, and settle on the purchase by June 30, 2011.

For more details on the credit, visit the First-Time Homebuyer Credit page on IRS.gov.

According to Kevin Rubel, a non-profit organization is a Corporation whose primary motive is to benefit the public and not generate any profits. More importantly, a non-profit organization may not allocate income to any of its directors or managers. Further, a Nonprofit Corporation is not just another business and should not be used as a substitute structure for a business whose chief aim is to make money.
Is Tax Exempt the same as “Nonprofit”?
Definitely not says Kevin Rubel. Even though one may be enlisted as Nonprofit Corporation, it does not automatically mean one is not tax exempt from the Federal Income Tax. In some cases, even local state taxes have to be paid.

Kevin Rubel defines a “tax-exempt” Corporation as an entirely separate structure that has earned an exemption from income tax liability. A Nonprofit Corporation, on the other hand, is almost never automatically eligible for exemption from income tax liability until an application has been made and approved by the IRS.

Are there rules as to how many Directors a Non Profit Organizations should have? Yes, says Kevin Rubel. The rules vary from state to state. Most States require Nonprofit Corporations to have a minimum of three directors. However, some states do allow for less than three directors. A handful of states also allow for only director. So, Kevin Rubel points out that Non Profit Corporations should check out the rules pertaining to their State before determining the number of Directors to be appointed.
Is a Non Profit Corporation allowed to pay any money to its Directors? Yes, says Kevin Rubel, a Nonprofit Corporation may pay some compensation to its officers, directors, and/or employees. However, it is vital that the compensation be paid only for services rendered to the Nonprofit Corporation.

For those who ask Kevin Rubel “Are there rules where one can form a non-profit corporation?” he advices: “In general, there are no rules where one can establish a non-profit corporation. However, one has to be practical. There is no point in establishing a non-profit firm in Alaska and live in New York City. Remember, non-profit does not mean that you do not have to pay state fees and taxes- so it is important to work out of the same state. Further, if your directors and officers all live in one state, it is better to establish the corporation in the same state.”

Kevin Rubel further says: “What most people forget is that establishing any business in another state means firstly, you have to qualify to be allowed to do business in another state and secondly you are subjected to taxes in the state where you are incorporated and the state where you conducting your business. Similarly, the chances of a lawsuit are also doubled”.

Getting down to details, Kevin Rubel advices Non Profit Corporations to choose a name that reflects the intent of the Coporation. In general, there are no rules about the kind of names that can be selected by Non Profit Corporations. “However, the name you choose should reflect your motivation” says Kevin Rubel. There is no point in choosing a name that reflects money and profits. Kevin Rubel agrees further that it is important to search for a name that is not deceptively similar to another established entity. Moreover it is advisable to include the words Inc., at the end of the business name selected.

Next in consideration is the question, “How does one establish a non-profit corporation?” While some companies can help you file an application online, it is only the first step in the right direction. Most financial offices or people like Kevin Rubel can help you with this task. Individuals like Kevin Rubel know the requirements, forms, and required language. It is best to leave the filing to a professional.

It follows that if you are looking to set up a Non Profit Corporation, it would be in your own interests to approach people like Kevin Rubel and take advantage of their vast knowledge and experience in the field.

What would you do if someone told you for the purposes of taxation, you were not an employee when you went to work as a private-sector worker? Would you believe them?

26 USC § 3401(c) defines an “employee” as follows:

Employee For purposes of this chapter, the term “employee” includes an officer, employee, or elected official of the United States, a State, or any political subdivision thereof, or the District of Columbia, or any agency or instrumentality of any one or more of the foregoing. The term “employee” also includes an officer of a corporation.

Admittedly, at first glance you read the word “employee” and go, oh yeah, I’m an employee. But let’s break out some old school grammar and get down to what this says.

The first part of the sentence are the people eligible – “officer, employee, or elected official.” The second part of the sentence are the location limiters – “United States, a State, or any political subdivision thereof, or the District of Columbia, or any agency or instrumentality of any one or more of the foregoing”

So what we have is…
Officer, employee, or elected official of… the United States
Officer, employee, or elected official of… a State
Officer, employee, or elected official of… any political subdivision thereof
Officer, employee, or elected official of… District of Columbia
Officer, employee, or elected official of… any agency or instrumentality of any one or more of the foregoing

Are you any of those?

You may be going, “well, it says that the definition ‘includes’!” Of course. In laymen’s thought, why would congress name “Employees of… whatever” if the term “employee” includes all these employees already. If you are an employee of the United States (think, FBI agent or something), then aren’t you already an “employee” by common definition. Of course you are. So why define it again?

The answer is simple, because when words are defined in law, they ignore all common definitions. For instance if Congress decided to say “for the purpose of this chapter, ‘gas’ is to be defined as natural gas” then whenever you read the word “gas” then you would know that the law was not referring to gas that you pump at BP or QuickTrip, but rather natural gas.

Likewise, for Title 26 (tax law) the word “includes” is specifically defined. So, we can conclude that the word “includes” no longer means “in addition to” but rather whatever they defined it to be. In this case, in horrible wording, they defined it to mean inclusive of things within the same scope. Confusing right?

Let’s try to make an example. “For the purposes of this chapter ‘gas’ includes natural gas and bio gas.” So for this, we would conclude that natural gas and bio gas are “gasses” but we could also conclude that gas from landfills is included as well because landfill gasses are a type of bio gas. We could also say that town gas is included because it is a sub-type of natural gas. However, we could not conclude that gas put in your car to be a “gas” under this law.

So, who cares if you are or are not an employee? Well, everyone should! Only these select “employees” are the ones that make “wages” (also a custom term) and wages are taxable. Title 26 does not specify how to handle your money if you are not making “wages.” So if you are not an “employee” and you don’t make “wages” then you are probably paying more taxes then you should, permitting that you read and know the law.

Check it out. You might be surprised.

Este vídeo, extraído do canal no youtube da contadora norte-americana Roni Deuth, mostra as alternativas que o contribuinte do seu país tem ao lidar com débitos tributários devidos ao IRS (a Receita Federal americana). Na sequência, uma tradução parcial da apresentação.

1. Full Payment (pagamento total). Modo mais simples de solucionar o débito tributário, mas que não está ao alcance de todos os contribuintes.

2. Installment Agreement (parcelamento). Uma espécie de parcelamento, na qual o contribuinte assina uma cláusula concedendo ao IRS acesso completo e total às suas finanças, para que o órgão se assegure de que há condições de pagamento do valor devido.

3. Currently Not Collectible (CNC) Status (Débito com execução suspensa). Os contribuintes que não tem condições de pagar seus débitos e que tampouco podem efetuar um parcelamento (Installment Agreement), porque não dispõem de meios (dinheiro), têm sua dívida tributária classificada nessa situação. Devem provar que seus gastos mensais são superiores à renda obtida no mesmo período. Suas dívidas fiscais não serão executadas.

4. Offer in Compromise (semelhante à transação em matéria tributária). O contribuinte que não tem condições de pagar todo o débito com o IRS pode se propor a pagar um valor menor que o total. Essa proposta só será aceita se o valor oferecido for maior que aquele que o IRS espera arrecadar se executar a dívida.

5. Just wait (simplesmente aguarde). Débitos do IRS prescrevem em 10 anos.

6. Innocent Spouse (cônjuge inocente). Regra que permite exonerar o contribuinte dos débitos de seu cônjuge que tenham sido resultado de seu comportamento desonesto ou evasivo.

7. Bankruptcy (falência). Algumas formas de falência pessoal podem livrar o contribuinte do pagamento de débitos fiscais, porém essa situação pode ter graves conseqüências nas finanças e na vida pessoal. Recomenda-se consultar um especialista antes de fazer essa opção.

Textos relacionados:

- Atendimento na Receita Federal dos Estados Unidos.

At the beginning of November, news sources reported that Pabst (maker of Pabst Blue Ribbon, the official beer of our little honky-tonk band) was up for sale. Apparently, Pabst is owned by a non-profit foundation and the IRS has been trying to get the foundation to sell it for years.

Problem is, last time Pabst was on the market in 2005 there were no buyers, and the IRS gave them a reprieve until 2010 before they had to try again.

The selling price? $300 million. Which doesn’t sound too bad until you hear that Pabst doesn’t even have any breweries– the last one closed in 2001. They are now essentially a marketing vehicle for a bunch of beer brands, including PBR, but also Old Milwaukee, Schlitz, Stroh’s and about 25-30 others (check out the full list here).

Well now two enterprising advertising agencies have banded together to see if they can create a mass collaboration movement to buy Pabst. They’ve created a website called Buy A Beer Company where you can actually pitch in to purchase a piece of Pabst for yourself. Once they get to $300 million in crowd-sourced funds, they make a formal offer to buy the company.

Sound like a marketing stunt? It is… but it has only been going on for two weeks, and they have already raised almost $10 million!

That’s pretty impressive for a stunt.

Who knows were this will lead? Perhaps a rival crowd-sourced movement will appear and make an aggressive counter-offer? Or maybe some rich investor will swoop in and buy Pabst, the two ad agencies, and their list of donors all at one time. One way or another, it’ll be interesting to watch what happens next. If you want to stay tuned in, you can follow the Buy a Beer Company Twitter feed here.

© 2000, Columbia Pictures, Inc.

I just came across an excellent idea that was not mine, but deserves to be shared.

Everyone tomorrow needs to change his or her tax withholding status to 9. This is apparently the maximum allowed. By doing so you will keep more of your hard-earned money in your paycheck each time you get paid.

The protest angle in this is it seriously slows the amount of income taxes being collected by the government until that time when taxes are due (typically April 15th, but with legal extensions, this can be postponed). The goal is to slow the amount of money going on a regular basis into the US Treasury. Oh, they’ll eventually get the money, but it won’t be before it is legally due.

This also prevents the government from borrowing YOUR money, tax and interest free.

Typically people have low withholding numbers on their tax forms so that at tax time they get a refund. I’m arguing that we need to turn this around and simply wait until the legal date to submit your taxes. You can’t stop paying them — at least legally — but you can seriously slow the flow until the last minute.

Then, write letters to your elected representatives, letters to the editor, and in blog posts sharing that you’re protesting the use of YOUR money by the government in ways that you do not support. Tell your congressman that you simply want government to live within the same means that you are forced to live within while your employer cuts your salary and eliminates your ability to make more money.

It’s not your employer’s fault (I’m speaking to those who work in the private sector); it’s government’s fault for not living within the means of the income that is created by the private sector.

While this will force most of us to pay money to the IRS on April 15th, the point is to put government on notice, without firing a shot, that we’re not going to take this anymore.

This is not the only thing we can do to try to take our country back from the brink of the destruction being foisted upon us by over-spending politicians and a White House that wants to destroy capitalism and America as we know it, but it’s certainly a start.

More than 15.4 million people, the Making Work Pay tax credit enacted as part of the $787-billion economic stimulus package could turn out to be a Making You Pay Back tax credit. The IRS instructed employers to use the new withholding tables in lieu of the applicable previously published tables and to do so by April 1, 2009. In addition, the IRS instructed that the new tables should be applied to pensions. The tables were designed to advance about $400 to single filers and about $600 to joint filers by the end of Tax Year (TY) 2009.  Joint filers³ will then receive the additional $200 credit when they file their TY 2009 tax returns since they are eligible for up to $800. That’s the finding of a government report, it is the signature tax cut that President Obama promised in his campaign and was delivered with much fanfare in February. In order to maximize the credit’s stimulative effect on the economy, withholding changes for taxpayers kicked in within days of Obama signing the legislation and taxpayers started seeing the changes in their paychecks in April. In essence, the credit was “advanced to taxpayers through their wages by a decrease in federal income tax withholding” for the 2009 and 2010 tax years.

The American Recovery and Reinvestment Act of 2009 (Recovery Act) contains many economic stimulus provisions, one of which is the Making Work Pay Credit found in Section 1001 of the Act. The Making Work Pay Credit is a refundable tax credit allowed against the lesser of 6.2 percent of earned income or $400 ($800 in the case of a joint return). The credit will be reduced as taxpayers’ modified Adjusted Gross Income exceeds $75,000 ($150,000 for joint filers) and will be completely phased out as taxpayers’ modified Adjusted Gross Income reaches $95,000 ($190,000 for joint filers). In order to qualify for the Making Work Pay Credit, individuals must have both earned income and a valid Social Security Number. In the case of a joint return, only one valid Social Security Number is required. Earned income is defined in Section 32 of the Internal Revenue Code as “wages, salaries, tips, and other employment compensation…plus the amount of the taxpayer’s net earnings from self-employment…no amount received as a pension or annuity shall be taken into account.”

The credit is to be advanced to taxpayers by their employers through withholding reductions that result in an increase in take home pay, which is intended to help increase spending and stimulate the economy. Advancing the Making Work Pay Credit to taxpayers through reduced income tax withholding creates the potential for some taxpayers to have their taxes underwithheld at the end of the year if the adjustment in their withholding is significantly different than the amount of the Making Work Pay Credit to which they will be entitled.

If taxpayers are advanced more of the Making Work Pay Credit than they are entitled to, they may ultimately owe taxes when they file their TY 2009 and 2010 tax returns such as:

• Dependents who receive wages.
• Single taxpayers with more than one job.
• Joint filers in households where both spouses work or where one or both spouses have more than one job.
• Individuals who file a return with an Individual Taxpayer Identification Number (ITIN).
• Taxpayers who receive pension payments.
• Taxpayers who are employed and receive Social Security or similar benefits referred to in Section 2201 of the Recovery Act.

To determine the extent to which such taxpayers might be negatively affected by the new withholding tables, Because of Obama and his decisions the Making Work Pay Credit may total more than $24.5 million.

Click On Links:
Barack Obama First Year Presidential Actions
Obama’s Approval Rating
Dollar Losing Value Under Obama
Obama Bank Overhaul
Cash For Clunkers Failed America
Obama’s 9 Trillion Dollar Deficit
The World’s Most Powerful People
Obama GM Bankruptcy
Obama Says ‘WE’RE OUT OF MONEY’
Obama $3.6 Trillion Budget Proposal
Where’s The Money !
Ben Bernanke Lies Again
Impeach Obama
The World’s Most Powerful People
U.S. Dollar Dropping Under Obama
Obama Promises One Year Later

New to Business?  There is no need to be afraid of finances, QuickBooks is user friendly.  MJB’s Office Solutions can teach you how install QuickBooks for your business and how to use it.  Every Company file has a chart of accounts that may include the following:  your bank accounts; credit card accounts; asset accounts like land and building; equity accounts for investors; various income accounts such as sales, interest, reimbursements;  and expense accounts for whatever you need to track for your business.

The Item List is your collection of services, product offered, any tracked inventory items, discounts, payments, subtotals, or misc. charges you use to create invoices, receipts, purchase orders etc.

You can set up your regular Customer and Vendor information, create invoices, enter bills, and manage daily transactions easy as a download from your bank.  If you have any questions about QuickBooks, please comment or email me at infomjbs@mjbsoffice.net.

As Christmas is approaching and we thought that we would acquire a few more badges for all you badges collectors and we have reduced some of the badge prices

We have listened to our customer comments, regarding the price of the current US Secret Service badges, that is why that over the next couple of weeks we will be taking delivery of some more US Secret Service Special Agent badges. These badges from another manufacture and have the  hallmark ”bellingham & carrington”on the back of the and with a rear pin attachment. These are excellent reproduction badges of the current issued US Secret service badges and they are at reasonable prices. We still  have the “Sun Badge Co” hallmark badges, which in my opinion are the best ones that the collector can buy, which is reflected in the price, “you pay for the quality. Judge for yourself by looking at the photos of each US Secret Service Special Agent badge on our website. But if the badge is going into a display cabinet, then the Bellingham & Carrington” will be just fine.

We have also got in stock one  U.S.CUSTOMS THE DEPARTMENT OF THE TREASURY INSPECTOR badge . Has original pin fitting on the back and no makers name a reproduction badge, which is slightly oversized from the original badge and is for available at a bargain price of $60……………that’s right $60 including worldwide registered shipping……..What a bargain!………..when emailing mention this blog for this price, the website shows the price at $60 plus shipping……………come on what are you waiting for…………email us now!!

Badges also expected are: Criminal Investigation – Internal Revenue Service (IRS) special agent badge, the IRS is part of the Department of the Treasury. Again this badge has a rear attachment pin and hallmark “bellingham& carrington”.

All enquiries please email store@policebadgestore.co.uk

Other hallmark “bellingham& carrington” badges are available on special order and the include:  US Secret Service Uniform Division, FBI, US Marshal (round Silver).

Treasury report estimates many may be getting paid more of the Making Work Pay credit than they should. Their refunds may be cut or they’ll have to cough up the overpaid amount.

By Jeanne Sahadi, CNNMoney.com senior writer
Last Updated: November 17, 2009: 9:45 AM ET

The recovery from the Great Recession has likely started. But many economists are worried about falling into another downturn. Here’s what has them concerned.

NEW YORK (CNNMoney.com) — Nothing with taxes is ever simple, even when you’re getting a tax break.

An estimated 15.4 million tax filers may be getting paid more of the Making Work Pay credit than they should, according to a report from a Treasury Department inspector general publicly released Monday.

And that means they either will get less of a refund than they expected, or will actually owe money to the IRS on their 2009 taxes.

The IRS said in a written response to the report that the agency believes far fewer people than the inspector general estimates would be affected, and that the majority who might be would see less of a refund but would not have an out-of-pocket tax liability come April 15.

The taxpayers most vulnerable are those in two-earner couples; those who have dependents who earn wages; single or married filers who have more than one job at the same time; and filers who get pension payments or have a job and receive Social Security benefits.

The Making Work Pay credit, created as part of the stimulus legislation enacted in February, is equal to 6.2% of earnings up to $400 per person (or up to $800 per couples who file jointly). The full credit is paid to people making $75,000 or less ($150,000 per couple per household). A partial credit would be paid to those making above those amounts but no more than $95,000 ($190,000 for couples per household).

Bailout Tracker: Understand the rescues

For most who qualify, the 2009 credit is being paid in advance incrementally through their paychecks. And it’s been automatic – meaning employers, based on what they know of a worker’s income and using IRS withholding tables, automatically reduce the amount of taxes withheld from a worker’s paycheck.

But an employer doesn’t know the income of the worker’s spouse or whether the worker is claiming a dependent who also is earning money, or whether the worker has income from other jobs.

So, for instance, two spouses might be receiving the full credit at their jobs when their joint income only qualifies them for a partial credit or none at all. Another scenario: A single person with more than one job might be receiving the full credit at each of his jobs, when in fact he’s only entitled to $400 total.

You get the picture.

Such taxpayers could have increased their withholding to account for the possibility that they might receive more of the credit than they should. Indeed, when the credit was first passed, the IRS put out statements and created a calculator to help taxpayers in such situations figure out how much tax they should have withheld. But that doesn’t mean that everyone did.

Those who have had too little tax withheld this year will either face a reduced refund or owe money to the IRS. The money primarily would be the amount of the credit overpaid to them. But a much smaller group might also owe a penalty if they were significantly under withheld.

“More than 1.2 million taxpayers included in these groups may be subject to: 1) paying back some or all of the Making Work Pay Credit and 2) being assessed the estimated tax penalty or an increased estimated tax penalty as a direct result of the Making Work Pay Credit,” the inspector general’s report said.

The good news is that the IRS is likely to waive penalties for filers who may have to pay an estimated tax penalty or who would see their estimated penalty increased as a result of the Making Work Pay credit, according to the report.

The inspector general’s report also recommended that the IRS embark on an expanded effort to publicize this issue more and specifically target the message to those tax filers most likely to be affected.

First Published: November 17, 2009: 3:55 AM ET

Growth Energy, a new corn ethanol lobby group, put our a press release today calling on Congress to ease the installation of pumps that dispense mid- and high-level ethanol blends. According to a letter written to the Senate Finance and House Ways and Means committees, the organization says the Alternative Fuel Vehicle Refueling Property Credit, which should allow fuel vendors to recapture up to $50,000, or 50 percent, of the total cost of installing alternative fuel dispensing systems is being undermined by an Internal Revenue Service (IRS) interpretation that retailers are only allowed to take credit for a portion of the new pump – instead of the entire pump.

Ah, April 15, the most dreaded date on any calender, provided you are a law abiding, tax paying citizen.

This is a classic episode of Roseanne, when the Connor’s have waited until the last minute to file their income tax. Even though it aired 20 years ago, the message is quite clear. It is time to put the brakes on Federal Reserve and the IRS. Enjoy!

From Frank Gaffney at Biggovernment.com:

On November 17, 2009, a prominent Senator and five leading Members of Congress sent a letter to the IRS asking for an investigation of the Council on American-Islamic Relations (CAIR) concerning their possible violation of the Lobbying Disclosure Act which limits the expenditures a non-profit can spend on lobbying  If CAIR has exceeded the limits of that law, they risk losing their non-profit status.  Other penalties may be more severe:  if the Secretary of the Senate or Clerk of the House of Representatives determines that CAIR should have registered and find “a knowing violation by a preponderance of the evidence,” CAIR could be “subject to a civil fine of not more than $200,000, depending on the extent and gravity of the violation,”  and if CAIR “knowingly and corruptly failed to comply,” they could be subject to imprisonment up to 5 years.    Our separate analysis of CAIR tax returns, compared to audio evidence recorded in 2006, reveals another potential issue for IRS investigators – more on that follows below…

The November 17 letter to the IRS was signed by Senator Tom Coburn (R-OK), Ranking Member on the Permanent Subcommittee on Investigations for the Homeland Security and Governmental Affairs Committee.    The members of Congress signing the letter also have extensive experience in intelligence, counter-terrorism and investigations:

• Rep. Sue Myrick (R-NC), Deputy Whip, founder of the Congressional Anti-Terrorism Caucus, who also serves on the House Permanent Select Committee on Intelligence
• Rep. Trent Franks (R-AZ), who serves on the Judiciary Committee and the Armed Services Committee
• Rep. Paul Broun (R-GA), who serves on the United States House Homeland Security Subcommittee on Intelligence, Information Sharing, and Terrorism Risk Assessment
• Rep. John Shadegg (R-AZ), who serves on the  Committee on Energy and Commerce and the Select Committee on Energy Independence and Global Warming
• Rep. Patrick McHenry (R-NC), who serves on the Subcommittee on National Security and Foreign Affairs for the Committee on Oversight and Government Reform

Our own investigation revealed another problem CAIR may have with the IRS.

 Their most recent publicly available tax return, from 2006, reports gross receipts for their annual fundraiser that are significantly less than they announced at the event itself.  On that 2006 990 form, they reported that they had raised $89,775, but left blank (or zeroed) several key fields:

But our investigative team attended that 2006 annual CAIR event and recorded the fundraiser Master of Ceremonies, Rodwan Saleh of the Islamic Society of Greater Houston, announcing that they raised much more than $89,775 – at least $250,000, and possibly as much as $600,000 due to a matching grant.  Below is a partial transcript and the audio:

Partial Transcription:

RODWAN SALEH: We are now at $250,000. Takbir.

AUDIENCE: Allahu Akbar.

SALEH: Takbir.

AUDIENCE: Allahu Akbar.

SALEH: Now, listen carefully [unclear] requirements. There is a family, there is a family that says if we all now can put this amount of money from 250 to 300, they will match the 300. You understand what I’m saying? Now, so we need now to make sure that we get $50,000 in no time because if we can make 300 this family will put another 300 [unclear]. Did you hear me?

So here are two more questions for IRS investigators:   Did CAIR raise only $89,775 at the fundraiser and if so, what happened to the rest of the $250,000 (or $300,000 0r $600,000)?  Or did CAIR raise the larger amount, and if so, why did they report less to the IRS?

On November 3, 2009, we called CAIR Executive Director Nihad Awad for comment on this apparent discrepancy.  Mr. Awad said he would look into the matter and get back to us, but so far he has failed to do so.

CAIR’s supporters include foreign businesses and members of various Middle Eastern royal families, and at the 2006 annual fundraiser in question, tables were assigned to the embassies of Malaysia, Pakistan, Jordan, Qatar, Saudi Arabia, the UAE, and the Interests Section of Iran.   The Holy Land Foundation terrorism finance trial documents, along with numerous Arab and English news articles, show CAIR receiving foreign contributions and pledges ranging from hundreds of thousands to millions of dollars.  During 2005 and 2006, CAIR had additional capital to purchase properties valued at over $10 million, as detailed in the investigative best-seller book Muslim Mafia.

Yet in 2006 their membership dues from actual Muslim Americans were only $41,383 -  one percent of their total reported revenues of over $2.7 million.

One percent from Muslim Americans’ dues.  And just $89,775 gross receipts from the annual fundraiser, partially reported to the IRS.

And 99% from…somewhere else.

Incidentally, we were able to obtain copies of the 2007 990 tax forms for fifteen CAIR chapters, and the 2008 990 tax forms for five CAIR chapters, but the CAIR national office has still not made public their 2007 and 2008 tax returns.

A key question for both the IRS and the Department of Justice: Is CAIR really an organization representing Muslim Americans, or is it representing the interests of foreign principals?

To be continued….

http://www.irs.gov/irm/part20/irm_20-001-002r.html

The just revealed IRS criteria targetting UBS accounts may form the basis of an SOP for catching artful dodgers hiding their money in other “we-are-not-tax-havens” tax havens like Singapore and Hong Kong.

In a nutshell, IRS said any of the 4400 Americans with less than CHF 250,000 (roughly 1 for 1 to the USD) will be spared. (I’m betting that many of the 14,700 who owned up in time for the IRS leniency program feel pretty foolish now, eh?) Everyone else is fair game, including those who have parked the money through shell companies. (which means that the IRS is probably salivating at the prospect of getting their hot little hands on details of the approx US-originated USD100 billion parked in Singapore via holding companies through the whole of 2008)

From the WaPo “Swiss no longer shielding biggest U.S. tax dodgers”

If your secret Swiss bank account was small enough, you can breathe easier: A landmark deal between the United States and Switzerland to expose American tax dodgers does not call for the Swiss to blow your cover.

But if you exceeded certain thresholds and failed to disclose the account to the Internal Revenue Service, don’t count on Switzerland’s legendary tradition of bank secrecy to protect you any longer. Your account details may be on their way to U.S. tax collectors and federal prosecutors.

That is the upshot of a previously confidential annex to a settlement reached in August by the IRS with the Swiss government and Swiss banking giant UBS.

The IRS revealed Tuesday that Swiss authorities did not have to spill the beans on Americans who had less than $248,200 (250,000 Swiss francs) in their accounts or received less than $99,280 (100,000 Swiss francs) in annual revenue from them.

Before the showdown over UBS, Swiss law generally shielded depositors whose only offense was failing to disclose assets and income on tax forms. To jeopardize their entitlement to secrecy, bank clients had to engage in more overt acts of concealment, described as “fraud and the like.”

According to the newly unveiled annex, however, the Swiss appear to have stretched the definition of that kind of subterfuge. Under the annex, Switzerland defined “fraud and the like” to include failure to provide a W-9 disclosure form for three years if the account met two measures: having more than $992,802 (1 million Swiss francs) at any time from 2001 through 2008, and generating average annual revenue of more than 100,000 Swiss francs over three years.

The agreement also covers accounts of at least 250,000 Swiss francs if the American depositors used an off-shore shell company to hide ownership of the funds and if they engaged in a “scheme of lies.” That could include using calling cards to disguise trading orders, and using debit cards, credit cards or loans to mask withdrawals from the Swiss accounts.

Under the sometimes fuzzy terms of the international agreement, the Swiss have not explicitly promised to turn over the account information, only to “process” a U.S. request. Nonetheless, the U.S. government has made clear that, once the Swiss review runs its course, it expects to get details on about 4,450 accounts.

“Switzerland is no longer a place where Americans can freely think that their account information will be forever protected,” said Scott D. Michel of the law firm Caplin & Drysdale, which represents UBS clients.

The Swiss government said it has 40 people processing the disclosure requests. UBS admitted early this year that it schemed to defraud the U.S. government by helping Americans hide money in secret Swiss accounts. The bank surreptitiously recruited wealthy Americans as clients and then helped some of them set up shell companies to obscure their connection to the accounts.

To avoid a potentially ruinous criminal prosecution, UBS agreed to pay the U.S. government $780 million. Then, the U.S. government stepped up a civil action against UBS, asking a federal court to force the bank to disclose the holders of 52,000 accounts. Through the deal struck in August, the two governments chose accommodation over confrontation, with face-saving measures for both sides. The U.S. government has accepted the possibility that some people who used UBS to evade taxes will get away with it.

Details as to which accounts the two governments would target for disclosure under the agreement were withheld until Tuesday to keep depositors guessing about their risk of being exposed — and to keep them under pressure to confess in return for an IRS offer of leniency.

The offer, originally set to expire in September, was extended to mid-October. As the deadline loomed, a crush of depositors filed voluntary disclosures. All told, more than 14,700 people turned themselves in under the IRS leniency program, more than 12,000 of them after the deal with Switzerland was announced, IRS Commissioner Douglas Shulman said in a briefing Tuesday.

Those figures went beyond UBS clients to include people with accounts at other banks and in other countries; Shulman did not provide a subtotal for UBS.

It was not immediately clear how much money the government stands to recoup from taxpayers who turned themselves in or face exposure under the UBS settlement.

“We are talking about billions of dollars coming into the U.S. Treasury,” Shulman said.

Depois de um hiato forçado, dou continuidade no post da visita à BadBug Garage.

Dica 02 – SUSPENSÃO, FREIOS E CÂMBIO

Uma grande dica que tirei do Eric foi o uso da suspensão traseira da VariantII brasileira ou da Kombi, isso porque a suspensão original do fusca é baseada num facão rígido, isso faz com que, ao rebaixar, as rodas se inclinem para dentro, é bastante comum vermos fuscas rebaixados com essa formatação nas rodas traseiras. O resultado é, além da desarmonia visual, o evidente desgaste do pneu e da própria suspensão.

A suspensão do tipo IRS ou Independent Rear Suspention, utilizada na Variant II e na Kombi não causa esse desequilíbrio, assim o desenho da suspensão deixa que pneus continuam retos. No aspecto visual as vantagens são óbvias, dando um resultado harmônico no conjunto traseiro. No técnico, melhores ainda, tendo reflexo direto na estabilidade do carro, deixando mais confortável de andar e guiar, portanto, mais seguro. Além disso, as rodas retas permitem um aproveitamento maior do espaço na traseira do carro possibilitando que, no projeto de design, este seja melhor aproveitado, o ideal é encontrar um conjunto de suspensão traseira IRS de Variant II ou Kombi, com jogo de câmbio, os freios a disco.

Anúncio de época da VariantII

Bom, daí pra frente temos um mar de opções de adaptação, afinal estamos trabalhando com um Fusca. Podemos optar por um câmbio de quatro marchas de SP2/Kombi ou até de cinco marchas, várias configurações de suspensão e outras tantas para freiar sua máquina. Dependendo, é claro, das idéias, disposição e da grana no bolso. Penso de início num de 5 marchas, pra manter a idéia de conforto ao dirigir, freio a disco e uma suspensão IRS não muito baixa, não quero socar o carro no chão.

No quesito “grana no bolso”, Eric dá outra dica: A EMPI Volkswagen Parts. Uma espécie de Mopar para VW’s, onde você econtra todo tipo de peça ou equipamento relacionados à montadora alemã, de kits de carburação a adereços internos e externos. O preço é outra história.

You may or may not be following the downward spiral of actor Nicholas Cage’s finances.  Evidently he owes MILLIONS to the IRS and is trying to sell property to pay back taxes.  There was even one report that pal Johnny Depp had offered to bail him out.

It appears Nicholas has champagne taste and a beer wallet.  Cage recently sued his former business manager Samuel Levin, blaming Levin for his financial misfortune.  Mr. Levin, who is having none of that, countersued Cage stating it was Nicholas’ extravagant spending habits that have put the actor behind the eight-ball.  Not poor financial management on Levin’s part.

Evidently Nick thinks he’s a rapper and surrounds himself with an entourage who he throws money at like he’s Oprah!  Only he doesn’t have Oprah’s money.  Mr. Levin warned Cage about his out of control spending stating he would need to earn $30 million dollars a year to cover his EXPENSES!!!  Not make money, just break even!

Look for more Nicholas Cage movies in the future.  Probably some really bad ones too.  Cage will have to take any script that comes along until he digs himself out of the sizeable hole he finds himself at the bottom of.

Still from Stranger Than Fiction, 2006

How easily do the comic actors get dismissed as good for nothing else performers who can be part of commercially viable comic projects only. Frankly, I used to believe so too. And it wasn’t till very recently that this belief of mine stood strong in my head. And the person, or rather the actor, who literally crushed my belief system and changed it all for me was someone I could never have expected in a million years. I’ve seen him do corny and trashy and really, really terrible stuff in the not so distant past. I would, however, like to clear that the actor I’m referring to here is a mainstream, commercial performer and the movies in consideration were made with mainstream audiences in mind.

The man I’m referring to is Will Ferrell. I’d seen him in movies that not only made no sense to human intellect but were rather repulsive at time as well. ‘Things’ (not movies) like Zoolander, Talladega Nights – The Ballad of Ricky Bobby, Anchorman – The Legend of Ron Burgundy (which was a good satire on news anchors and news channels as such), A Night At The Roxbury, Dick, Superstar and Bewitched to name a few. And just to clear things up, I saw these movies on TV for lack of anything better to do at the time. There was no reason for me to even consider Will Ferrell as an actor at any level. But two weeks ago, when I was watching the TV yet again for lack of anything else to do, I chanced upon another Will Ferrell movie, Stranger Than Fiction, co starring the very talented Emma Thompson, Dustin Hoffman and Maggie Gyllenhaal.

The story revolves around Harold Crick (Ferrell), an IRS agent, a loner, a man with a compulsive habit of counting everything. One day Harold wakes up with a feeling of a strange voice in his head narrating his life. The voice goes on and on as he counts the strokes of his tooth brush, counts his steps to the bus stop and the stairs to his office floor. At first he ignores the voice, but when the voice says that Harold will die in a few days, he suddenly snaps up to the reality that the voice in his head is actually that of a writer, authoring a book and he is the ‘hero’ of that book. Sometimes, he finds the voice describing his actions and sometimes, guiding his thoughts and actions. The situation gets interesting with addition of a beautiful young woman, Anna Pascal, into the story of Harold’s life, played by Maggie Gyllenhaal, who is being audited by the IRS. Gyllenhaal herself is in her own time-space continuum in the movie, giving a nearly stellar performance (after watching this one, I actually expect far better things from her) as Anna Pascal, a feisty baker who catches the fancy of the IRS agent, partly being led on by the voice in his head and partly by the free spirited young woman’s subtle beauty. Things start to change in Harold’s life, he starts living for the first time. He stops counting the strokes of his tooth brush, his steps to the bus stop or even the stairs to his office floor or his apartment. He even buys a guitar, a stratocaster and learns how to play. Just when he starts to let go of himself and enjoy whatever little life the writer has decided to leave him, Harold finally manages to find out the woman whose voice he’s been hearing, describing him, guiding him and sometimes even mocking him.

Emma Thompson is a veteran actor, been around for a while now and really good at what she does. The biggest surprise element of Stranger Than Fiction was, undoubtedly, Will Ferrell with Maggie Gyllenhaal doing her part to perfection in no small way and looking gorgeous while doing so. She catches the essence of Anna Pascal perfectly, the slightly fluid tempered, easy living, free spirited, large tattoo sporting baker being audited by the IRS for refusing to pay her taxes as a mark of protest. Will Ferrell as Harold Crick just plonks a mirror in front of your face, telling you how mundane and superfluous your life is if you tune out the voice of your heart. What was really Stranger Than Fiction was watching this man make a u-turn from his usually unimaginative and rather slapstick performances and give the performance of a lifetime.

I liked to believe in Freud’s saying that people who go into the performing arts suffer from an external locus of identity and are seeking other people’s approval in whatever they do with their life. Well, if that is true indeed, then Mr. Ferrell is definitely Stranger Than Fiction and has my approval for sure.