All Articles Tagged "taxes"
The year is almost over, and after some wise (and perhaps some very unwise) personal financial decisions throughout the course of 2013, you may be ready to close the books on another year. Don’t miss a beat before this year is out. There are many financial decisions you should make before the end of year, such as starting a retirement fund or making room for a little extra cash with a side hustle.
Before the year is over, challenge yourself and accomplish these financial resolutions before the New Year.
Looking to make a little extra cash with a secondary part-time source of income? A second job may only benefit you financially. When deciding whether or not to take on a part-time job or side hustle, you should consider not only the toll it’ll take on your finances, but your emotional health, your mental health, your daily schedule and your free time.
Have you considered these downfalls of juggling multiple jobs at one time? Is a little extra cash worth it? Here’s a few reasons why two (or more jobs) can do you more harm than good.
As we approach the month of November, you’re going to spend your days soon thinking about holiday shopping, decorations, and dinner table place cards. But, don’t forget about your taxes. In fact, it would be best to go ahead and not only start thinking about them, but to begin organizing your paperwork now for early filing.
Because of this year’s government shutdown, the IRS will not begin to process tax returns until one to two weeks after the originally planned January 21st date. If you’e expecting a return and need that money ASAP, you should act in advance. Just because the government is behind schedule does not mean that you should be. Tax season officially starts in December and you will still be able to send your tax returns at any time. Keep ahead of the game and continue to prepare on time — or early — so you’re not pulling your hair out when we’re talking about how close we are to April.
“Because, you know, paying taxes is supposed to pay for the government, which in turn is not working. So if they’re not working, I shouldn’t have to pay taxes,” he jokingly told Vh1. ”Being in the upper echelon of the tax bracket, [I] feel the the money I could be saving over these next couple of days could be very vital to my survival.”
While he’s being silly (clip below) there are those who agree with him.
“Republican or Democrat, it seems hard to argue with this logic,” says Forbes. “But high or low, everyone is a little tired of theatrics, of no service at the IRS and elsewhere. And yet taxes and filings are coming due like a freight train.”
The article also notes some past Nelly tax shenanigans, saying in 2006 he tried to deduct his “jewel-encrusted teeth” after he made the song “Grillz.”
Nelly’s latest album “M.O.” was released last week and, so far, sales have stalled. It debuted at number 14 on the Billboard 200.
If you haven’t paid your taxes lately in New York, don’t expect to get behind the wheel of a car anytime soon. Some 16,000 New Yorkers could lose their driver’s licenses because of unpaid taxes.
“The state has officially rolled out a new program that will yank delinquent taxpayers’ driver’s licenses if they are more than $10,000 behind on payments, according to a memorandum issued by the Dept. of Taxes and Finance,” reports Business Insider.
Gov. Cuomo called tax delinquents “scofflaws,” and said the new policy sends a clear message.
“These worst offenders are putting an unfair burden on the overwhelming majority of New Yorkers who are hardworking, law-abiding taxpayers,” he said. “By enacting these additional consequences, we’re providing additional incentives for the state to receive the money it is owed and we’re keeping scofflaws off the very roads they refuse to pay their fair share to maintain.”
Notices sent by the Tax Department have already gone out to 16,000 delinquent taxpayers, who’ll have 60 days to set up a payment plan or the D.M.V. will send another warning, this time giving them 15 days to respond. If they have not taken action by then, their license will be suspended.
Commercially licensed drivers and taxpayers who are makings child or spousal support payments will be exempt. And those who do lose their license will be able to apply for a restricted license, which will allow them to drive only to work.
The Department of Taxes expects the program to generate $6 million in tax revenue each year.
There are three other states who have similar license suspension programs. Many people in New York City don’t own cars, so this is a measure that will clearly impact people who live across the state more heavily than those living in the five boroughs.
This is not good news for small business owners. The Internal Revenue Service is cracking down on small firms. Since fall 2012, the IRS has been sending out letters to 20,000 small businesses notifying them of “possible income under-reporting.”
The reason: purchases made with card swipes. The IRS is suspicious that a lot of cash transactions might be going unreported. ”The IRS says it is trying to identify businesses that get ‘an unusually high portion’ of their reported sales through credit card transactions,” reports CNNMoney.
Before issuing a letter, the IRS compares a business’s credit card and cash receipts with industry averages. Which sounds a bit arbitrary.
An unnamed owner of a baking equipment supply company received such a letter, reports CNNMoney. The letter claimed that “80% of her $549,955 in annual revenue came from credit card swipes.”
In response her accountant, Steve Schneider, answered the IRS explaining that the numbers were correct, but the agency’s assumptions were wrong.
“Over the years, the business model has switched to more online sales,” Schneider told CNNMoney. “These types of customers tend to pay with credit cards.” He doesn’t agree with the IRS’s methods. He feels by relying on industry averages, the agency isn’t accounting for how a particular business operates.
“I just don’t think that the data they have is sufficient for them to send these letters out,” Schneider said.
There are other cases as well. But the IRS says it has reason. The agency found that some $450 billion is owed in taxes that goes uncollected. “Under-reporting by small businesses accounts for about $140 billion of that tax gap,” the story reports.
Some accountants say the IRS has always been stricter with small business. “This is nothing new,” Van Ballantyne, a small business accountant in Greenland, New Hampshire, told CNNMoney. “I think it’s another attempt to try to get us all to sit a little straighter in our chairs and be more honest in our reporting. It is fairly innocuous.”
MadameNoire got the chance to talk with the legendary Ron Isley y’all! The day after the BET Awards, the man we’ve come to know and love as Mr. Big came into our office and dished on everything from the time he spent in jail for not paying his taxes to his thoughts on Charlie Wilson’s return to music and what his plans are for new albums in the future. And to top it all off, he sang us a line or two from one of our favorite songs. Take a listen!
If this is true, Dame Dash is drowning in debt right now.
In a report by The New York Daily News, Dash filed papers on Tuesday saying is so deep in debt that he cannot pay his personal bills, which includes his rent in a Carmel, NY mansion where he is currently behind in rent by $100,000.
Over the past few years, Dash has lost two New York City lofts to foreclosure, his vehicle has been seized, he owes $2 million dollars in New York State taxes, an undisclosed amount in federal taxes and he says he’s facing criminal charges for non-payment of New Jersey state taxes.
On Thursday, Dame went to court to ask the judge not to garnish his wages (whatever they are). He says that at this time, his money goes to the following (your mouth will drop):
- He pays $24,000 every three months to his ex-wife, fashion designer Rachel Roy, for child support of their two kids, and to cover money owed on the lofts.
- New York state forces Dash to send another $4,341.10 per month for support of his son, Christian.
- He paid nearly $20,000 in garnished wages in late 2012 for other debts.
- And he faces a pending $40,000 tax payment for business earnings.
Dash says in paying for all that, he is barely keeping his business afloat let alone able to pay his personal bills.
Well, we can see how that could be the case.
Dame sent a message through his attorney saying:
“I’m an independent businessman and this is what comes from business. I have the guts to fight my battles on my own and it’s entertainment to everybody else because I’m so cool about it.”
How “cool” can you really be when you’re obviously still spending beyond your means and barely have a place to lay your head?
It sounds like someone needs to put their pride to the side and get himself together.
UPDATE: Lauryn Hill has been sentenced to three months in prison and three months house arrest. Details here.
Lauryn Hill’s attorney Nathan Hochman says the Grammy-award winning singer has paid $900,000 in back taxes and penalties ahead of her sentencing for federal tax evasion, Reuters reports. Hill will be in court in Newark today to face the judge over failure to file tax returns on $1.8 million between 2005 and 2007.
Reuters says her sentence will be impacted by the amount she ultimately pays.
“Ms Hill has not only now fully paid prior to sentencing her taxes, which are part of her criminal restitution, but she has additionally fully paid her federal and state personal taxes for the entire period under examination through 2009,” Hochman said in an email.
Last month her attorney said she has arranged for loans on two pieces of real estate to cover the tax tab. He says the money didn’t come from music sales.
Hill did release a new song, “Neurotic Society,” this past week. She says it was another thing she was legally required to do, but felt strongly about the message in light of the death of Kriss Kross rapper Chris Kelly.
In a post on Tumblr a couple of weeks ago, Hill confirmed that she has a new contract with Sony Worldwide Entertainment to launch a new label and is working on new music. She added that she has been fighting a decade-long battle “for existential and economic freedom, which means the freedom to create and live without someone threatening, controlling, and/or manipulating the art and the artist, by tying the purse strings.”
Poor Lauryn Hill. If it ain’t one thing it’s another with her — although I’m wondering when she’s going to learn that people don’t play when it comes to their money. We all know the Grammy-Award winning singer is in major trouble with the IRS, having pled guilty to tax fraud last year. Now she’s being sued for eviction by her landlord and could find herself out on the street.
According to TMZ, Lauryn’s been renting a mansion in South Orange, NJ, since 2009, but apparently stopped paying rent last month. As a result, her landlord went to court to file a legal ultimatum demanding that she pay up or get out. Apparently she still hasn’t paid, so the landlord is moving ahead with the eviction lawsuit.
Unlike Lauryn’s odd reasoning for not paying her taxes — she claimed she had received frightening threats — she likely has a somewhat decent reasoning for not paying her rent. According to TMZ, next week Lauryn will be sentenced for tax fraud and since she’s facing several years in federal prison, paying rent likely isn’t at the top of her list of priorities — if she even has the cash to pay. Still, the landlord needs his money too and it’s not the smartest move to add more money woes on top of others. Let’s just hope her babies have somewhere to stay for the time being and after if, unfortunately, she goes to prison.