Bank finance articles and tips

Does the media have any influence on the economy? The media has influence, good or bad, on the economy. I am not stating that it is the only thing driving the forces of the economy, but if you think about all of the bad news that has been out about how little people are spending, layoffs, a downed economy, and other variables; it does have some influence on what people do.

The tax gap is the difference between tax the IRS believes it should collect and what is actually paid. Tax preparers who are not familiar with the tax gap soon will learn about it as a result of their registered tax return preparer CPE.

To see what the IRS means by the tax gap only requires considering two workers conducting identical jobs. One is an employee who receives a W-2 each year reporting wages earned. The other is an independent contractor who is paid by each customer. They both are paid the same amounts.

However, all of the employee's paycheck income appears on the W-2. But, the self-employed independent contractor's income isn't reported anywhere. If some payments are in cash, they don't even appear as bank deposits....

A rumor has circulated that the IRS might provide tax preparation services in the future. The idea may appear far-fetched for now, but the government is under pressure to develop novel ways of increasing tax revenue. IRS tax preparation has already become more highly regulated in 2011. Perhaps paying the IRS a fee for preparing a tax return is a potential future measure.

The idea has been floated at least as far back as 2006. This is when Senator Max Baucus, chairman of the finance committee, proposed a solution to "get rid of the middle man" in tax preparation. In the same year, Austan Goolsbee, former chairman of President Obama's Council of Economic Advisers suggested that the IRS send a pre-filled tax form each year....

The Report of Foreign Bank and Financial Accounts Form TD F 90-22.1 ("FBAR") is due June 30, 2011. This form must be filed by a United States person with a financial interest in or signature authority over a foreign financial account if the total value of all of the accounts exceeded $10,000 at any time during the year. This form is merely an information form. There is no tax due with this return.

This form must be received on or before June 30, 2011. There is no extension of time to file this return. Even if your individual income tax return is on extension, it doesn't matter. Please note it must be received by June 30, 2011, not postmarked. File this form with the Treasury Department, not the Internal Revenue Service. Unlike income tax returns, this form cannot be filed electronically. It must be mailed in. Caution should be exercised to assure the form arrives by the due date. As with other returns and forms, it is recommended that you send it "Certified Mail, Return Receipt Requested"....

Form 709, is required to be filed if a gift is made to someone for more than $13,000 in one year. Gifts between spouses are not required to file. Gifts can be made to an unlimited number of people in a year provided they are below the $13,000 per person annual exclusion.

The return is due on April 15 following the year of the gift. For example, for gifts made in 2011, the return is due on April 15, 2012.

This due date can be extended two ways. First, you can file for an extension on your individual income tax form using Form 4868. The other option is to file Form 8892, Application for Automatic Extension to File Form 709. The extension will extend the filing due date for six months. A return with a valid extension would be due on October 15.

If you are in the process of submitting loan applications, applying for financial assistance, availing of mortgage plans, or even purchasing new automobiles, you would need to have the necessary know-how about what is considered a good credit score since whatever rating you will get after your financial history has been evaluated will determine if you will be granted approval of what you are currently applying for or not.

Some people may actually question why they have to be subjected to such financial assessments when they avail of certain transactions. The answer lies in the quest for firms and provider to lessen the risks that they have to take on their part for approving request of prospective customers especially if the transactions involved the customer paying off their financial obligations over a considerable time....