A Review Of America’s Car Donation Center

Americas Official Car Donation Center has been in business since 1992. The center accepts cars, trucks, motorcycles, boats, trailers and RVs that will help to support thousands of local and nationwide charities. This often allows for new research funding and outreach because of your donation.

Over 1 million donated vehicles have supported hundreds of non-profit charities through the work of Americas Official Car Donation Center. The center is also equipped to receive trailers, boats, trucks, RVs, and some other recreational vehicles like snowmobiles and jet skis. They accept most vehicles even if they are not running, so your “junk car” is welcome here.

The donation process is pretty easy. There is an online form or you can call to request a form. Local and national charities that include the American Red Cross, United Way, Humane Society, SPCA, Boy Scouts of America, the USO and many more. Check out the list by state, cause or national chapter on their website.

Towing companies that are associated with Donation Charities Center are professionally licensed, bonded and insured. Americas Official Car Donation Center is able to pick up in every US state except for Alaska. Usually the towing company will be notified by the center and call you and come up with an agreed upon time to pick up the vehicle.

The title and keys will be picked up when the towing company comes to pick up the vehicle. Do not forget to sign over the title to the Center, cancel your registration and insurance. It is very important for you to sign the back of the title and then give it to the organization or charity that you are donating the car to. Also, don’t cancel your auto liability insurance until youve cancelled your car’s registration. You should cancel your car’s registration so you are not responsible for anything that happens with the car after you’ve donated it, like getting a speeding ticket.

IRS and Tax Deduction: A Donors Guide to Car Donation

The IRS allows a tax deduction of the value of your vehicle up to $500 or if the vehicle is sold at auction for more than $500. Donation Charities Center will mail the IRS tax form 1098-C with the value. To find out what your car is worth visit Kelly Blue Book website.

Most cars will be sold at auction. The cars are sold then the center will forward a portion of the proceeds to the charity of your choice. When donating to this particular charity, you may want to check out the regulations. The regulations would be different than an outright donation. You can find the information you need in A Donors Guide to Car Donations. You should read the guidelines and ask questions. Checking with a certified tax planner is an excellent idea, too.

Tax Tips CPA Or Tax Attorney

When confronted with solving a tax problem, taxpayers have a number of choices including dealing with the issue themselves, hiring a CPA or retaining a tax attorney versed in the tax problem being addressed. Due to the intricacies and far reaching impact of income tax law, engaging a CPA or tax attorney may be advantageous to the taxpayer.

A CPA (certified public accountant) has completed the requisite university courses, passed examinations and met all other licensing and experience requirements to be certified by the state. CPAs are experts in accounting, auditing financial statements and the preparation of income tax returns for corporations, non profits and individuals. CPAs are also employed in industry, non profits or government as accountants, auditors, treasurers, chief financial officers (CFO) and other accounting, financial or executive positions. For example, the IRS hires an army of professional accountants and auditors.

The individual state boards grant the CPA designation and license. CPAs may also belong to the national association, the American Institute of Certified Public Accountants (AICPA). A CPA can also be a member of the state association. CPAs are mandated to fulfill continuing education requirements and follow the associations code of conduct.

An attorney is a professional licensed to provide legal advice, practice law or conduct lawsuits on behalf of clients. A tax attorney is a specialist attorney in assisting taxpayers to solve tax problems with the IRS or the state Franchise Tax Board. An attorney can also be called a lawyer or counselor. To be licensed as an attorney, one must have obtained a degree in professional law from an accredited law school and successfully completed a state bar examination.

While the Statement of Principles (National Conference of Lawyers and CPAs 1951) recognizes that nonlawyers may be admitted to practice before the United States Tax Court, it states that a CPA should advise a client who has received a notice of deficiency to consult an attorney, because the client should be advised of the possibility of litigating the matter through a refund suit in the district court of the Claims Court rather than before the Tax Court. When a CPA learns that a client is being investigated for possible criminal violations of the tax laws, he or she should promptly advise the client to seek the advice of a lawyer as to the clients legal, constitutional rights and the related privileges. An attorney can plead a taxpayers case in a court of law. In limited cases a CPA can make a presentation to the Court, however this is not a good idea especially if the accountant prepared the tax return in question.

The Attorney-client privilege is a legal concept that protects communications between an attorney and the client. The attorney is bound to keep these communications confidential. Any communication between a CPA and a client is not held confidential.

When a taxpayer is trying to solve a tax problem it is not a matter of either or. Taxpayers can consider their CPA as vital as their tax attorney and quite so. A taxpayer could utilize the services of both a tax attorney and a CPA to resolve a pressing IRS tax situation. The main difference is that a CPA cannot litigate in district court and a CPA does not have privileged communication with the client.

Key Man Life Insurance And Taxation

If your company owns life insurance policies on your executives or any key people for that matter, you need to be aware of the potential tax ramifications and the requirements to avoid taxation of benefits. Important changes have taken place in the last few years that can significantly impact the taxation of corporate owned life insurance. The information below is designed to inform you of the IRS regulations that have been implemented over the last few years and what is needed to comply with these IRS requirements so that policy proceeds avoid needless taxation.*

Pension Protection Act of 2006 and Life Insurance Taxation

On August 17, 2006, President George Bush signed tax legislation containing provisions that significantly impact key man and other employer owned life insurance purchased after August 17, 2006. The legislation, known as the COLI (Corporate Owned Life Insurance) Best Practices Act (which is part of the Pension Protection Act of 2006), includes the proposed IRC Section 101(j). Under this proposed law, life insurance death benefits for business-owned life insurance policies issued after the effective date of August 17, 2006 are income taxable (to the extent the death benefit exceeds the employer’s premiums) unless certain requirements are met.

This new legislation applies to all employer-owned policies issued after August 17, 2006 and includes policies used for key man insurance, stock redemption plans, Corporate Owned Life Insurance and Supplemental Executive Retirement Plans (among others). It may also extend to collateral assignment (economic benefit) regime split dollar and split dollar loans. With this law, all situations where an employer will have full or partial ownership of a insurance policy that is issued after August 17, 2006, regardless of the purpose of the policy, will need to meet certain requirements and follow specific guidelines to avoid potential taxation.

Avoiding Taxation of Key Man Life Insurance

In order to prevent policy proceeds (death benefits) from being income taxable, both of the following requirements must be met:

1. Notice and Consent Requirements:

a) The employee must be notified (in writing), prior to the life insurance policy being issued, that the employer intends to buy a policy on his/her life and disclose what the maximum face amount that is being applied for on his/her life is;

b) The employee must provide written consent to being insured and agree that the employer may choose to keep the policy in force even after the employee separates employment; and

c) The employee must be notified in writing that the employer is the beneficiary of all or part of the death benefit proceeds.

Under the COLI Best Practices Act, unless the employer provides written notice and obtains the employee’s written consent prior to the issuance of the policy, the death benefit of the life insurance policy will be taxable from day 1. Notice and consent may not be obtained after the life insurance policy is issued to remove this taxable death benefit status.

2. Once the “Notice and Consent Requirements” are met, there are two “Exceptions” to the rule taxing death proceeds payable to an employer, one of which must be met:

a.) Exception #1:

1) The insured was an employee at any time during the 12-month period before the insured’s death OR

2) The insured was a Director or “highly compensated employee” at the time the contract was issued.

b.) Exception #2:

Any amount received by the employer as a result of the insured’s death is paid to:

1) A family member of the insured;

2) A designated beneficiary of the insured under the contract other than the employer;

3) A trust established for the benefit of a family member, other designated beneficiary, or the insured’s estate; or

4) A family member, designated beneficiary, trust, or estate in exchange for any interest they hold in the corporation / employer (i.e. buy-sell agreement).

If both the “Notice and Consent Requirements” and one of the “Exceptions” above are met, Corporate Owned Life Insurance proceeds would be received income tax free if the policy death benefits would otherwise be eligible for favorable tax treatment.

COLI Best Practices Act- Reporting Requirements

All employers are required to report annually all corporate-owned life insurance policies to the IRS. The annual reporting requirements imposed under the IRC Sec. 6039I include:

1) The total number of employees at the end of the year;

2) The number of employees insured under COLI arrangement at the end of the year;

3) The total amount of insurance in force on all insured employees at the end of the year; and

4) The employer’s name, address, tax payer identification number and type of business, and

5) A statement of valid consent for each insured employee (or, if all required consents are not obtained, number of insured employees for who consent was not obtained).

The IRS requires this reporting annually on Form 8925 ” Report of Employer-Owned Life Insurance Contracts.” It is a simple form and must be completed to comply with IRS Code. You should consult your CPA or professional tax advisor immediately for more information on Form 8925 and the IRS reporting requirements.

If proper record keeping and reporting is not maintained, any and all key man life insurance policy proceeds or other corporate owned life insurance death benefits may be subject to income taxation

In Conclusion

Corporate Owned Life Insurance Policies including key man insurance policies issued after August 17, 2006 may have death benefits that are subject to income taxation if certain requirements are not met. The Pension Protection Act of 2006, which includes the COLI Best Practices Act, includes provisions that have significant consequences for key man and other employer owned insurance purchased after August 17, 2006. You need to understand the Notice and Consent requirements and well as the Exceptions and Record Keeping and Reporting requirements and comply with the IRS so that key man insurance policy proceeds avoid needless taxation. Unfortunately, if you have a key man policy issued after August 17, 2006 and you have not been compliant, your best bet to avoid potential income taxation may be to scrap your current policy and start over!

* All of the above tax information is for information purposes only and is provided to explain the basic tax treatment of life insurance based on the Internal Revenue Code. Any individual or entity considering any life insurance policy should consult with their own CPA or tax/legal advisor that understands their particular tax circumstances and the rules governing their state. In no way is this information intended to be tax or legal advice.

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When to Use a Licensed Public Accountant in Dandenong/p>

A Licensed Public Accountant, or CPA, might help you ensure that your small enterprise accounting or particular person taxes are correct and complete. Some companies are small enough, akin to residence based mostly companies, that a Certified Public Accountant just isn’t needed for most accounting tasks. However, there are times when a business or particular person should use a Certified Public Accountant.

When you’ve got a small enterprise, and you have discovered that an error in your bookkeeping exists, it may possibly typically be troublesome to locate the place and when the error was made to correct the mistake. A Certified Public Accountant has special training and training to seek out these errors through an external audit process. It’s critical that these errors be corrected, as a result of the books you utilize in your small business are used to find out taxes and business decisions.

These information also enable traders to see how effectively your enterprise is doing so to get more backing to help your enterprise grow. A Certified Public Accountant can discover and correct any errors in your bookkeeping, and enable you organize your bookkeeping so that you just or the Licensed Public Accountant can simply generate monetary statements and reports. These financial statements and reviews prepared by a Licensed Public Accountant are the documents that most banks and investors wish to see before making any financing decisions.

If you are beginning up a house primarily based or small enterprise, you must search the guidance of a Licensed Public Accountant. The Licensed Public Accountant might help you set up a double entry methodology of accounting with a journal and ledger, as well as a chart of accounts that will help you use these instruments effectively in your business. The Certified Public Accountant may advise you as to what taxes you can be accountable for paying throughout the year. Quarterly taxes are sometimes required of businesses and self-employed individuals. To keep away from penalties, late charges, and a big tax bill at the end of the yr, it is best to contact a Licensed Public Accountant for this information.

Any individual that’s self-employed ought to search out the services of a Certified Public Accountant when it’s time for tax return preparation. Tax legal guidelines change every year, and a Certified Public Accountant can help you just be sure you are receiving all of the deductions you might have accessible as a self-employed individual.

Any particular person with kids, who is separated or newly divorced, or who could want to itemize deductions based on mortgages, medical expenses, and charitable contributions should also hunt down a Licensed Public Accountant for help in revenue tax preparation. It is because the tax legal guidelines are very complicated, and change often. Should you make a mistake and claim a deduction that you would not legally claim, the IRS may audit your return and trigger you to pay again the refund quantity, with penalties. Additionally, if you make a mistake and do not declare a deduction that you can legally declare, the IRS is not going to try to right the error, inflicting you to obtain a smaller refund. Both approach, you lose money. One of the simplest ways to keep away from these and different errors is to have a Certified Public Accountant put together your earnings tax return.

Many people are under the mistaken belief that accountants simply provide tax return preparation services. The stereotypical view involves a person dropping off their receipts a month before tax returns are due and the accountant doing the best he or she can to prepare a tax return while limiting the amount of money you owe the government. This occurs, but people are wasting money if this is how they are using their accountant.

Accountants have expertise in the tax code. You should use this. Ideally, an accountant will aware of all aspects of your financial life. They should also be aware of significant events in your private life The reason this is important is it gives the accountant the ability to solve your tax mystery.

Solving a tax mystery simply refers to an accountant figuring out the best way to limit your taxes.

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