Me and some friends doing the cha cha slide in iraq. I’m the Marine in the blue gloves. Relax, were just having some fun.

Every so often we read that governments are going to crack down on tax havens and offshore bank accounts. The latest threats to do this have come in the wake of the financial crisis and economic recession that began in 2008.

However, attacking offshore tax havens is not new. And it would appear that such attacks by various politicians rarely amount to more than window dressing to placate the masses and an attempt to divert blame for any economic woes from themselves.

Before answering the second question posed in the title of this article, it would be a good idea to clarify exactly what a tax haven is.

A tax haven is a country which has little or no income tax. Some tax havens have zero income taxes, while others may have very low taxes – or only tax local income not worldwide income.

To give a few examples: If you live in Hong Kong you will be taxed at a flat rate of 17% on your income. On the other hand, if you live in New Zealand you will be taxed on a sliding scale all the way up to 38%. Obviously if you lived and worked in Hong Kong, then you?d be keeping a lot more of your own money.

Another issue is whether a country taxes domestic income only or worldwide income. Most countries tax worldwide income, which means if you live in the USA but earn income in the UK, then the UK income is also taxable and is to be considered part of your total income for tax purposes.

But if you lived in Singapore and made money outside that country, then you wouldn?t be liable for income tax on the overseas income, only your local income. So while Singapore is not considered a tax haven in the usual way, it is in fact a tax haven for those who live there and earn money outside Singapore.

The attraction of tax havens is obvious. If you live there, or do business there, you could end up keeping a lot more of your own money. For it never pays to forget that income tax is a tax on your very life. Your labour is part of your life. If someone were to claim 80% of your labour without pay, and only give you food and shelter in return, then you?d have a good working definition of slavery. And the rates of tax prevalent today are akin to slavery in every way – with most developed countries raking off 50% or more of their resident?s money with income and other forms of tax.

So a tax haven is exactly that – a safe haven, if you will, from predatory taxes.

Trouble is, high-taxing countries hate this. They don?t like having to compete with other countries in the matter of tax. And if truth be told, most governments of the developed world would very much like it if such tax competition was abolished, by getting rid of tax havens.

But it?s not as simple as it appears. The tax code of any particular country is a matter for that country to decide. If Hong Kong levies an income tax of 17% on its residents and New Zealand levies up to 38% – who?s to say that Hong Kong shouldn?t be allowed to do it?

And that?s the problem. The very notion of abolishing tax havens implies abolishing each country?s sovereignty. It means that someone, somewhere, is going to dictate to every country what its income tax rate will be – and that in order to eliminate tax competition the rates for all countries must be the same.

Of course, this will not happen – not without a one world government and a one world tax system.

The truth is tax competition, like any competition, is healthy. The very existence of low tax or no tax jurisdictions keeps other countries on their toes, and draws a line in the sand as to how high they can push their own tax rates – without causing an exodus of their best and most productive people.

But there are other reasons why tax havens and offshore bank accounts will not be abolished any time soon. Human nature. And in particular the nature of many politicians. You see, if there were no tax havens, no places to ?hide? money – then what would the corrupt politicians of this world do with their ill-gotten gains?

No, the powers that be, at the very top echelons, require places where they can stash their cash. All their threats about abolishing or doing away with tax havens are but hot air – and hypocritical to boot. Because at the end of the day the people who benefit most from the existence of different tax rates around the world are the people with money – the same people who pull all the strings. To abolish tax havens would be akin to cutting their own throats.

So don?t expect tax havens and offshore banking to disappear any time soon!

Qualify for an IRS Installment Agreement and Save Money by Negotiating the Lowest Possible Monthly Payments

IRS Announces Unprecedented Opportunity for Recession-Burdened Americans to Settle Outstanding Tax Debts

Struggling taxpayers may be eligible for tax breaks as the IRS eases enforcement and collection efforts to help Americans in financial distress. Because of the extraordinary challenges of today’s economy, the IRS is pledging to be more forgiving of Americans who have fallen behind on their taxes due to unusual financial hardship.

And one way you can settle your back taxes is by negotiating an Installment Agreement with the government that that allows you to pay liabilities over time.

If you cannot afford to make monthly payments and don’t qualify for another type of tax relief, such as an offer in compromise, there are other options including negotiating that your account be placed in a “currently not collectible” status so that you will not be required to make payments and the IRS will not pursue collection action.

What is an IRS Installment Agreement?

An Installment Agreement is a payment arrangement whereby the government allows a taxpayer to pay liabilities over time. Once a payment plan is established, the IRS will not take enforced collection action, including the levy of bank accounts or wages, as long as the taxpayer remains current with all filing and payment obligations. However, interest and penalties would continue to accrue until the outstanding balance is satisfied. Additionally, a tax lien may be filed as part of the terms of the installment payment agreement, depending on the amount of the total liability.

How to Negotiate an IRS Installment Agreement and Set Up a Payment Plan for Your Tax Debt

The IRS encourages taxpayers to pay what they owe as quickly as possible. For those individuals or businesses not able to resolve a tax debt immediately, an installment agreement can be a reasonable payment option. Installment agreements allow for the full payment of the tax debt in smaller, more manageable amounts.

In most cases, the IRS will accept some type of payment arrangement for past due taxes. In order to qualify for a payment plan with the IRS you must meet the following rules and provide the IRS with this information:

*  You must have filed all tax returns (It’s OK to owe money but you must file).

* You will need to disclose all assets owned including all cash and bank accounts.

* You must not have adequate cash available in a checking, savings, money market, or brokerage account to pay the IRS.

* You must not have the capacity to borrow the amount owed to the IRS from other sources (i.e., a second mortgage on your home).

* You must not have adequate equity in a retirement account from which you can borrow or liquidate; for example, IRA’s or 401K’s.

The total dollar amount you owe usually dictates with whom the negotiations will be handled.

* Typically, IRS Revenue Officers are not involved in cases where the amounts owed are less than $25,000.

* The IRS will ask you to complete a personal financial statement and if a business is involved, you will also need a business financial statement.

* The IRS has determined allowable monthly expenses for individuals, which will be matched against your actual monthly expenses.

* The difference between your monthly income and your allowable monthly expenses will be the amount that the IRS will require you to pay on a monthly basis.

These monthly payments will continue until your outstanding tax liabilities are paid in full.

What the IRS May Not Tell You About Payment Plans

It is important to note that the IRS continues to add penalties and interest while you are making monthly payments. This may cause you to be paying what you consider a large monthly payment to the IRS and your outstanding balance may in fact be increasing due to additional penalties and interest.

The IRS may not explain this to you! So be careful!

Additionally, for taxpayers that enter into an installment agreement, the IRS may require a signed waiver to extend the time IRS can collect. While it is always in the best interest of the IRS to get a signed waiver, it may not be in the taxpayer’s best interest. If you are asked to sign a waiver, protect your rights, seek the advice of a tax resolution expert first.

The IRS in most cases, to protect their interest, will file a Notice of Federal Tax Lien, with the County Recorder’s office in the county you reside.  This will inevitably be reflected on your credit report decimating your credit (FICO) score.  In addition a recorded Federal Tax Lien means the IRS has a monetary interest (claim) against all real and personal property owned (at time of filing) and any and all real or personal property acquired in the future while the lien is in effect. Generally, the lien is effective throughout the 10 year Collection Statute of Limitations.

The Benefits of Hiring Professional Tax Representation to Negotiate your IRS Payment Plan

Whether the IRS demands full payment up-front or a payment plan that is substantially higher than what you can afford to pay, a professional tax resolution specialist can help you negotiate an arrangement for the lowest possible monthly payment and also provide you with various options for making those payments.

Additionally, if you owe more than $10,000 to the IRS, you will be required to provide full financial disclosure and you will need to hire specialized tax representation to negotiate on your behalf with the IRS.

IRS Pledges Greater Flexibility to Help Distressed Taxpayers

Although the IRS is pledging to be kinder and gentler to taxpayers in these challenging times, you will still need to meet your installment payment requirements. However, the IRS has announced that they will try to be more flexible with taxpayers who miss an installment payment.

“We need to ensure that we balance our responsibility to enforce the law with the economic realities facing many American citizens today,” IRS Commissioner Douglas Shulman said. “We want to go the extra mile to help taxpayers, especially those who’ve done the right thing in the past and are facing unusual hardships.”

If a taxpayer with an existing installment agreement is worried about missing a payment because of a job loss or other financial hardship, Shulman has assured the public that a missed payment will no longer lead to an automatic end to that agreement.

Additionally, the IRS has announced that it is more likely to forgive a missed payment and they’ve instructed staff to not automatically default someone who is having trouble.

Frequently Asked Questions about IRS Payment Plans

What do you have to do to be eligible for an installment agreement?

To be eligible for an installment agreement, all returns that are due must first be filed.

What are the payment terms?

Installment agreements generally require equal monthly payments. The amount of an installment payment will be based on the amount owed and on the taxpayer’s ability to pay that amount within the time legally available for the IRS to collect. By law, the IRS has the authority to collect outstanding federal taxes for ten years from the date of assessment.

What are the conditions of an installment agreement?

As a condition of an installment agreement, any refund due in a future year will be applied against the amount owed. Therefore, taxpayers may not get all of their refund if they owe certain past-due amounts, such as federal tax, state tax, a student loan, or child support. The IRS will automatically apply the refund to the taxes owed. If the refund does not take care of the tax debt, then the installment agreement continues until all of the terms are met.

Does interest stop with an installment agreement?

Interest does not stop accruing until the entire obligation is paid. An installment agreement is more costly than paying all the taxes owed now. Penalties and interest continue to be charged on the unpaid portion of the debt throughout the duration of an installment agreement.

Are there fees to set up an installment agreement?

The IRS charges a user fee of $43 to set up the installment agreement. And it is possible for an installment agreement to be reinstated if the agreement defaults.

Also, installment agreements may be restructured to include additional amounts owed in one agreement. Reinstating or restructuring an existing installment agreement will cost an additional $24 user fee.

What are enforced collection actions?

Generally, IRS enforced collection actions (levy against personal or real property) are not made while an installment agreement request is being considered, or:

While an agreement is in effect,

* For 30 days after a request for an agreement has been rejected, and

* For any period while a timely appeal of the rejection or termination is being evaluated by the IRS.

Can my installment agreement be defaulted?

Yes. Failure to make timely payments can default the agreement. A defaulted installment agreement could subject a taxpayer’s account to enforced collection action and potentially have a negative effect on a taxpayer’s credit standing.

What is an annual statement of balance due?

In accordance with the law, installment agreement taxpayers receive an annual statement from the IRS. The statement provides the amount owed at the beginning of the statement period, the payments (credits) posted to account(s), any fees or assessments, and the ending balance. Currently, the annual statement is sent each year in July.

For more information on negotiating an IRS Installment Agreement or to get professional tax advice on reducing your IRS debt, visit www.taxresolution.com for a free tax relief consultation or call 866-477-7762.

Michael Rozbruch is one of the nation’s leading tax experts. A Certified Tax Resolution Specialist (CTRS), licensed CPA in the state of Maryland and the founder of Tax Resolution Services (http://www.taxresolution.com/), he helps individuals and small businesses solve their IRS problems and is dedicated to educating the public on tax planning and other strategies for managing their personal and business finances.

Is the IRS all bad? The IRS is not all about seizing assets, bank accounts, and wages. The IRS does provide ways to reduce your actual taxes through Tax Credits. What makes a credit different from a deduction? A credit lowers your actual amount of taxes. A deduction lowers your actual taxable income.

Help for those who need it…So what kinds of tax credits are there, and how can I get them?

Most tax credits are dependent on your income. The majority of them do require that you be in a lower income bracket, so check with the IRS at irs.gov to see if you can qualify.

Some of the tax credits that you may qualify for are listed below. This is not a complete list, but it should give you an idea of what’s okay and what isn’t:

Child tax credit: You can receive a $1,000 tax credit for each child that is eligible as dependents. Be careful with this one, as claiming a child incorrectly can cause you to be in debt to the IRS.

Education credit: This is available to full and part time students. So whether you’re a twenty-something going full time or if you’re a returning student looking to improve your career options you can claim your schooling. You can claim up to $1,650 as a credit for your schooling for the year. Usually your school will send you a tax statement.

Home Energy Efficiency Credit: If you’ve made changes to your home to make it more energy efficient you can claim up to $500 as a credit. Keep your receipts so you can prove you made the improvements. Not only do you save on utility bills, but you get back money for the government.

Be certain…Tax credits can provide you with a much needed shot in the arm as they can greatly increase your income tax return. But beware, and make sure you know and follow the guidelines set by the IRS before you claim anything as a credit.

These same credits can backfire on you as the IRS frequently audits larger tax returns. You could find yourself owing the IRS if you incorrectly claimed a tax credit, or claimed something you shouldn’t have.

If you’re not sure about a tax credit feel free to drop your friendly former IRS-Hitman an e-mail.

Now you have the smoking gun…Use it!

Tax payment is probably the most confusing process in the world. Many people have many questions regarding the process of tax payment. They have a little or no knowledge about the laws of tax payment and so can not pay tax in a timely manner. The solution to this problem is the tax accountant. The tax accountant is a consultant who can complete the whole process of tax payment for you. If you are worrying about the tax payment, your worries ends now. You can hire a better tax accountant who will solve all of your problems regarding the tax payment.

The job of a tax consultant is to manage the tax payments, planning for the tax, and to assist you in the preparation of your tax payment. If you are looking for a good tax    accountant, this article will help you finding a good tax account. This article collects various points that a tax accountant should possess.

Specialization:
The specialization in one or more areas of tax is important requirement of the tax accountant. There are many tax accounting consultants who provide specialized services. They are master of individual areas of tax. The areas of tax such as financial tax, individual tax, etc.

Knowledgeable:
The tax field is too large. There are few persons who have a great knowledge about the tax. The knowledge about tax is a most important characteristic that a tax accountant should possess. If you are looking for a good tax accountant, the knowledge about the taxation should be the first requirement of you.
 
Experienced:
Experience makes man perfect. When considering someone to process the tax payment, you must see the experience of the person. The experienced person would be easily able to process the tax payment. The tax accountant must possess at least three or four years of experience.
Popular:
The tax payer comes to the tax accountant by the reference of someone. It is obvious that a popular tax account will get more clients. So whenever you are about to hire a tax accountant, you should look for a well experienced person.

Comfortable:
The tax accountant should be comfortable to the tax payers. He should understand the requirements of the client and according to the requirement, the tax payment preparation and planning should be proceed.

Affordable:
The fee of the tax accountant is a major point of consideration when any tax payer would receive services from a tax accountant. The payment to the tax accountant should be according to the services and the amount of tax to be paid. 

Situation Special:
The tax payers have many situations, each of which is different then another. The tax accountant that can handle any situation and can solve the tax problem for any situation can be known as the idle tax accountant.

All the characteristics described here may not be found in one person. Some times, a person with knowledge may not be so popular and vice versa. You need to be careful when you choose a tax account for you.

Complete video at: fora.tv Former Arkansas Governor and 2008 Republican Presidential candidate Mike Huckabee explains his support for a federal “Fair Tax.” —– Mike Huckabee speaks at The Commonwealth Club of California. Governor Huckabee’s win in the Iowa caucuses vaulted him into position as a serious contender for the Republican Presidential nomination. Strong showings in subsequent states have kept him in the running. Now, Californians have a decision to make about which candidate to …

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Why we need a tax accountant?
All tax payers, individual or having a business, need a professional tax accountant to complete the whole complicated process of the payment of income tax. The time consuming and boring process of tax payment can easily be accomplished if you hire a tax accountant, he will do all the tax payment process for you. The job of a tax accountant is to assist you in the preparation of your tax payment. The tax accountant manages the tax payments of the company and completes the whole tax payment process of the company. If you are an employee and having trouble in the difficult process of tax, you can hire a tax consultant who will give you the proper suggestions useful in savings of the tax. The tax accountant prepares the tax return, plans for the tax payment, makes research various issues of tax, and ensures the payment of the tax in a timely manner. All the process of tax payments will be finished by the tax accountant if you hire them for tax payment. The compilation of tax, accounting of income tax, and other income tax related tasks are accomplished by the tax accountant.

This article will help you how to in the choice of tax accountant. It will explore the characteristics of better accountant and some other points to consider when you are about to choose a tax accountant or to change your tax accountant.
Experience:
The most important thing a tax accountant should possess is proper experience. You should hire a tax accountant that is master in the tax process having several years of experience.
Popularity:
Look for a tax accountant or consultant who is very popular. If the tax accountant has many clients, he is trusted and is able to do the tax payment process for you. If you can find, ask your friends and relatives for help.
Comfortable:
The tax accountant should be able to understand your tax needs. The deal with the tax accountant should be comfortable for you. The tax accountant should complete the process according to your need and it should be affordable to you.
Legal:
The tax accountant that you choose must be authorized. You should check weather the tax accountant has the proper certificate of their authorization. The tax accountant should be paying the tax according to the state and federal lows. The choice of the popular tax accountant would not be the matter of check the authorization of the tax accountant.

The choice of the tax accountant is the important point to consider when you don’t want to complete the boring and time consuming processes of tax payment yourself. The problem of tax payment can easily be solved if you hire a better tax accountant for you. If you are individual or having a business, the tax payment can be very easy for you and that is made by a tax accountant. The better choice of tax accountant is very important in order to save your valuable money and time.

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The savings of tax is the dream that everyone wants to achieve. Almost each country in the world has the income tax system. Many taxation professionals are there who are providing tax related services to the millions of tax payers. The savings of tax is the topic of discussion since a long time. This article will explore the tricks to save the tax. In this article, you will find simple tricks that can be useful to you in the process of the tax payment. The tax saving is in your hand. If you wish, you can easily save tax. Yes, you can save your valuable money to be paid to the government in a form of tax. There are mainly there methods of tax savings: Reducing Income, increasing tax deduction, and being qualified for the tax credits. If you can all of the three, you can easily save the tax money

Reducing income
The tax is applied on the income and deducted amount of tax is dependent on the amount of the income. If your income is more, you have to pay more tax to the government. The low income can result in low tax deduction. There are several ways to save tax. If you runs a small business, you can wait till the new year if you are about to stock more items. If you are an employee in a company, the government itself gives less income tax offers to you. The offers depend upon the type of your job.

Increasing tax deductions:
If you pay taxes in advance, the deduction of the amount of taxes can be increased. The payment of taxes in advance can save a good amount of tax. The real estate taxes and other fix taxes can be easily paid in advance. The increase in the tax deduction can be a great way of saving of tax. There are many people who pay taxes in advance and enjoy the tax credits from the government.

Getting the tax credits:
The tax credits are given to the regular and timely tax payers. Various governments have various schemes on the credits given to the tax payers. You can get tax benefits according to the laws of your government. The advance payment of the fix taxes such as house tax can be a useful trick to earn tax credits from the government.
 
The process of tax payment is probably the most complicated process on the earth. If you have right guidelines, you can easily save tax and make more money. The tax savings tips given here may not be applied to everyone. The tips are useful for you to reduce your taxes. There are many people who don’t know about the real ways to reduce the income tax. This article may have helped them a lot.