Donate to Help Haiti Today – Get Immediate Tax Deduction on 2009 Tax Return

Raleigh NC Accountant

In a recent email news post I made reference to the fact that the natural disaster that occurred in Haiti is now a qualified disaster according to the IRS (http://www.irs.gov/newsroom/article/0,,id=218615,00.html).

I said in the email that the IRS was rumoring that people would be able to take a deduction for contributions to Haiti on the current year’s (2009) tax return – instead of having to wait until you make your 2010 tax return. Obviously this would be quite an reason to donate for people who wanted to give money to the people of Haiti to help them get back on their feet! Are you feeling the pressure of today’s taxes? Right now you can get $100 off your tax return for Cary NC Tax Prep needs!

Well, the suggestions I was hearing and that you may have heard are TRUE! On January 22nd, the IRS adopted a special tax relief provision that allows donations for the Haiti disaster made after January 11, 2010 and prior to March 1, 2010, will be taken from your 2009 tax return. Or, you could choose to put the deduction on your 2010 tax return instead, just in case you didn’t want to take advantage of the wonderful incentive to assist those in need.

The people of Haiti are hurting quite a bit. Earthquake disasters are completely unavoidable, and are well, devastating. Earthquakes and other types of natural disaster create huge amounts of carnage and homelessness. Entire families are without food or clean water. In many cases these families do not even have the capability to acquire any level of stable living environment without the assistance of other countries’ efforts (funded by donators like you!). Do your part today and donate whatever you can to assist the people of Haiti. I would greatly appreciate the extended effort, and I’m positive every one of the struggling people in Haiti would appreciate it to!

Stay tuned for more articles and information regarding tax season, taxes, and Haiti!

http://www.marccpa.com

A Short Timeline of Tax Practices of the USA, Section 3

Raleigh NC Accountant

W. Marc Gilfillan, CPA, NC, individual and business CPA and Tax expert, shares about the history of taxes…

So, what went wrong with taxes in the United States?

US tax makers have been collecting what they have sown for a long time. Our honor system has been trumped by a system in which every tax payer is under surveillance because of the heavy inclination of evading their taxes. In other words, compulsion has replaced consent. Honor has been replaced with espionage. If you are feeling the pressure with today’s taxes, call a Cary NC CPA for all your tax-related needs!

In the 1950s, no bank told the IRS about customer affairs, interest was not reported, withdrawals of money weren’t reported, and nothing that went through any account was photographed. In addition to this, real estate transactions were not reported, stock transactions weren’t reported, dividends were not reported, income from other sources (Form 1099) was not reported, and US Customs didn’t require a declaration of the amount of money carried. Go here if you want help from a modern-day Tax Preparation in Cary, NC.

It was an honor system, and it worked. The erosion that occurred over the previous fifty years to the present is that anything of any fiscal significance is now reported.

Adam Smith observed that taxes will be evaded and tax laws shown little credence when there is a general suspicion of a lot of unnecessary expense and a lot of misspending of the public revenue. In other words, $500 toliet seats, huge grants to study the sex lives of ants, etc.

Because the government wanted to catch a handful of tax resisters and evaders in the 1950s Congress made a tax monster of the US tax system that more and more taxpayers try to evade. As a general rule, mass tax evasion is a clear signal that a government’s tax system isn’t working. Citizens will pay taxes, even income taxes, if the rates are acceptable.

Thanks for reading! Stay tuned for more updates!

http://www.marccpa.com/

A History of Tax Law, Chapter Nine: Tax Law, the Slaves, and the American Civil War

Raleigh NC Accountant

W. Marc Gilfillan, CPA, NC, individual and business CPA and Tax expert, shares about the history of taxes…

“Slavery – the one cause of the Civil War.” – John Stuart Mill, 1862

Can there be any doubtful thoughts about it? Certainly the American Civil War was about slavery… was it not? Well actually, one of the most hoaxes in our history is that the Civil War was started because of slavery and that Lincoln, the Great Emancipator, fueled a bloody struggle to break the claims of bonding that enslaved over 3 million black Americans. Right before the war, the South had everything its way.

In 1860, Southerners held the Supreme Court and Lincoln and Congress were approving a constitutional amendment to keep slavery forever! So what happened?

Let’s move the time back to the year 1832. By 1832 the national debt from the War of 1812 had been paid and the South saw no need to continue the exorbitant import taxes that seemed to only jack up price tags for Southern consumers. Either the South had to pay high import taxes on imported goods or it bought Northern manufactured goods at terribly overpriced prices. Either way, the South’s funds ended up in the North. To say the least, the South was not happy with this arrangement. If you are feeling the pressure with today’s taxes, call a CPA for Tax Preparation in Raleigh, NC for all your tax-related needs!

Consequently, in 1832 a convention was hosted in South Carolina to get rid of these federal import taxes. The convention declared the tax was unconstitutional and gave the governor the power to to resist the enforcement of the import taxes instituted by the national government. It seemed like a civil war was in the making. Cool heads won over, however, and the Great Compromise of 1833 lowered import taxes over the next few years to an area the South would tolerate. Go here if you want help with a modern-day Tax Return in Raleigh, NC.

Over the next few years, however, Northern commercial and manufacturing interests bullied through Congress new taxes that again stressed Southern planters and allowed Northern Manufacturers to become rich once again. In 1850, John C. Calhoun, the South’s greatest outstanding spokesman, gave a speech to Congress. His speech listed 3 wrongs done to the South that could lead to secession from the Union and war. The first two involved fears about the gradual decline of power of the South in general and the the power of state government as well.

The third, and only concrete complaint, was about tax policy. In Calhoun’s eyes, federal import taxes was a class legislation against the South. Huge amounts of taxation on the South created funds that were spent in the North. The center of economic strength in the United States was steadily changing heavily to the North. Calhoun spoke of secession if the taxes were not reduced. But what of the slaves? Well, in his run for the presidency in 1860, Lincoln steadily repeated he wouldn’t interfere with slavery in the South. Actually, most Northerners didn’t really care about enslaved blacks, just as little as how much they worried about the Native-American in the West or impoverished illiterate workers in factories. The majority of black slaves received better treatment and more compassion than their counterparts in the North. Lincoln, in fact, promised Southern plantation-owners that run-away slaves would be returned. The Congress and then the Supreme Court (Dred Scott decision) continually affirmed that slavery was not going anywhere.

But, as soon as Lincoln was elected and Congress assembled in 1861, they enacted new high import tariffs. Slavery was not an issue – higher import taxes were. In his inaugural address Lincoln said he would collect the customs in the South even if there was a secession!

Fort Sumter, at the entrance of the Charleston Harbor, began filling with Union soldiers to enforce the collection of the new taxes. The Civil War began in 1861 when South Carolinians shot at the federal garrison at Fort Sumter. The inevitable had been stewing for years – but it wasn’t about the slaves. It was about tax policy.

Two years after that, Lincoln put into action the Emancipation Proclamation, and then only following several military defeats, as the last resort to rally the North to a noble cause. With respect to the slave issue – the majority of the North cared little concerning black people in bondage, no more than they cared about Native-Americans to the west and the impoverished uneducated workers in the factories. For the most part, many black slaves got better treatment and more compassion than their impoverished counterparts in the North.

That’s it for the History of Taxes Series!

http://www.marccpa.com/

The History of Taxation, Section Nine: Tax, the Slaves, and the American Civil War

Raleigh NC Tax Preparation

W. Marc Gilfillan, CPA, NC, individual and business CPA and Tax expert, shares about the history of taxes…

“Slavery – the one cause of the Civil War.” – John Stuart Mill, 1862

Could there be any doubtful thoughts about it? Of course the American Civil War was about slavery… wasn’t it? Well actually, one of the greatest popular myths in American history is that the Civil War was started because of the slavery issue and that Lincoln, the Great Emancipator, fueled a bloody war to sever the chains of bondage that shackled over 3 million black Americans. Just prior to the war, the South had everything its way.

In 1860, the South held the Supreme Court and Lincoln and Congress were approving a constitutional amendment to protect slavery for all time! What happened?

We should move the time back to the year 1832. By 1832 the national debt left from the War of 1812 had been paid and Southerners didn’t see a need to continue the exorbitant import taxes that seemed to only raise prices for the South’s consumers. Either the South paid high import taxes on imported goods or it bought Northern manufactured goods at excessive prices. Either way, the South’s money ended up in the North. To say the least, the South was not happy with this arrangement. If you’re feeling the pressure with today’s taxes, call a CPA for Tax Preparation in Raleigh, NC for all your tax-related needs!

Consequently, in 1832 a convention was held in South Carolina to get rid of these federal import taxes. The convention decided the tax was unconstitutional and authorized the governor to defy the enforcement of the import taxes instituted by the national government. It seemed like a civil war was in the making. Cool heads won over, however, and the Great Compromise of 1833 lowered import taxes over the next several years to levels the South would tolerate. Go here if you want help with a modern-day Tax Return in Raleigh, NC.

Over the next few years, however, Northern commercial and manufacturing companies forced into Congress new taxes that again stressed Southern planters and allowed Northern Manufacturers to become rich once again. In 1850, John C. Calhoun, the South’s most exceptional spokesperson, delivered a speech to Congress. It spoke of 3 grievances of the South that may cause secession from the Union and war. The first two involved fears concerning the gradual decline of power of the South in general and the states as well.

The third, and really the only concrete grievance, was about tax policy. In Calhoun’s eyes, national import taxes was a targeted legislation against the South. Heavy taxation on the South created money that was used in the North. The center of economic life in the country was shifting strongly to the North. Calhoun spoke of secession if the taxes weren’t reduced. But what about the slavery issue? Well, in his run for the presidency in 1860, Lincoln repeatedly said he would not do anything about slavery in the South. Truly, most Northerners didn’t care much about black men in bondage, any more than they cared about the Indian in the West or poor uneducated workers in factories. The majority of black slaves got substantially better quality treatment and more compassion than their working-class counterparts in the North. Lincoln, in fact, assured Southern slave-owners that fugitive slaves would be returned. The Congress and subsequently the Supreme Court (Dred Scott decision) continually affirmed that slavery wasn’t going anywhere.

However, as soon as Lincoln was placed in office and Congress assembled in 1861, they created new high import tariffs. Slavery was not an issue – higher import taxes were. In his inaugural address Lincoln said he would go get the customs in the South even if there was a secession!

Fort Sumter, near the beginning of the Charleston Harbor, started to fill with federal troops to enforce the collection of the new taxes. The Civil War began in 1861 when South Carolinians shot at the federal garrison at Fort Sumter. The inevitable had been stewing for years – but it wasn’t about slavery. It was about tax policy.

2 years after that, Lincoln issued the Emancipation Proclamation, and then only after repeated military battles, as a last resort to rally the North behind a noble cause. To address the slave issue – most the North did not care much about black people in bondage, no more than they cared about Indians in the west or poor uneducated peasants in the factories. For the most part, most black slaves got better treatment and more compassion than their impoverished counterparts in the North.

That’s it for the History of Taxes Series!

http://www.marccpa.com/

A Lesson in Taxation, Chapter 8: Taxation and The Boston Tea Party

Raleigh NC CPA

W. Marc Gilfillan, CPA, NC, individual and business CPA and Tax expert, shares about the history of taxes…

Ah…. now we have an event in history obviously concerning oppressive taxes. Was the Boston Tea Party a protest against the British tax on tea, as we were all taught? No, not one bit. The colonies had already been boycotting English tea for 5 years prior to the Boston Tea Party! They had instead smuggled in Dutch tea and were doing quite well. There was tea for all and no British tea tax paid. Naturally, the British did not like the boycott. So, the British forgot the duties back home. The Parliament told British tea merchants to avoid the import tax of getting the tea to England and then pass the savings along to the colonies as they sent the tea over and then sold British tea at a price that was lower than the smuggled Dutch tea. If you are feeling the pressure with today’s taxes, call a CPA for Tax Preparation in Raleigh, NC for all your tax-related needs!

But who would sell this British tea?

They sold it through loyal British merchants in the colonies. But would the colonists take the cheaper British tea even though it had a tax? Yes. So much so that the result was loyal British merchants were getting all the business and a tax was still be given to England. However, the colonists didn’t mind the tax that much; they ended up receiving more inexpensive tea. However, the non-British MERCHANTS didn’t like the gig. The British merchants, gaining the help from England, had basically established a monopoly on tea sales. The native merchants thought it would only be a matter of time before more monopolies would be established with an identical mechanism and they would be forced out of business. Go here if you want help with a modern-day Tax Return in Raleigh, NC.

So, a collection of MERCHANTS who appeared to be Natives, walked on a vessel loaded with British tea and dumped it into the harbor. Was this a shining peak in American tax protest? Not at all. The Boston Tea Party was viewed as the senseless destruction of private property at a period when private property was viewed as very important. This Boston Tea Party was very looked down upon and didn’t sit well with the colonists. Ben Franklin was shocked and told the merchants that complete restitution would be given immediately to the owners of the tea. Anyway, it turned into war.

However, the colonies would soon realize that fleets of warships, legions of redcoats, and cannons were a lot more terrifying than a few tax collectors. The funny thing is, America won the war, primarily due to the fact that England found it too expensive to fund war so far from home. BUT after the war, America faced astounding debts and taxes, and even with representation they were going to be huge.

Keep an eye out for W. Marc Gilfillan’s next chapter in his History of Taxes series: Taxes and Slavery and the Civil War.

http://www.marccpa.com/

A History of Tax Law, Part Seven: Taxation and The Revolution

Raleigh NC CPA

W. Marc Gilfillan, CPA, NC, individual and business CPA and Tax expert, shares about the history of taxes…

There has been no other revolution that was more solidly based in taxation. Tax issues didn’t just cause it, but assisted in providing unity for the unorganized and disagreeing colonies. However, probably not exactly the way you think. If you are feeling the pressure with today’s taxes, call a CPA for Tax Preparation in Raleigh, NC for all your tax-related needs!

First, the British taxes on the colonies were neither not fair nor oppressing on the people. Actually, Americans had a good life: we had the help of Britain, the land was rich, business was good, and there were jobs for everyone. Europe’s social castes did not enchain the citizens and our sons were not forced to battle in wars in far-off places… we had it good. So why? Well, there were many missteps and misstatements by each side. Go here if you want help with a modern-day Tax Return in Raleigh, NC.

“Taxation without representation” was truly an issue. The problem was, nobody knew quite what to do about it (after the American revolution, other colonies such as Canada and Australia were able to find more achievable solutions). However, at this point in history there wasn’t agreement by the British parliament or American leaders on what should happen to dissolve “taxation without representation”. Ben Franklin, unknowingly I presume, complicated the issue. He went over to England as our liaison and told the British that internal taxes were unacceptable but external taxes were OK.

By internal taxes, Franklin meant the stamp tax and other taxes that were paid on transactions within the colonies themselves. External taxes, according to colonists’ definition, were taxes like import taxes that were on transactions that only partially took place in the colonies. The colonists thought import taxes were external to the colonies. Yes, if you are confused about this, you should be. It makes almost no sense. No one understood the connection with import/export taxes and the ultimate prices paid for the goods and services. In other words, import/export taxes worked against the “other guy” so they were OK.

The British parliament complied. if that’s what you desire we will help and give you whatever it takes to make you happy. So, the British enacted new tariffs, import and export taxes. Then, Americans changed their mind. They saw the flaw of their logic… however, it was too late and the situation worsened.

Keep an eye out for W. Marc Gilfillan’s next chapter in his History of Taxes series: Taxes and the Boston Tea Party.

http://www.marccpa.com/