Tax Refunds & Advice

Just because you are a movie star who makes a lot of money, it does not mean that you can get away with not paying taxes. Apparently, this is something that Wesley Snipes forgot between the years of 1999 and 2004. Snipes has been accused of failing to pay taxes on $58 million of income that he earned during this time period. If convicted, he faces a prison term of up to 16 years.

Believe it or not, the Snipes case is one of the biggest in the history of the US tax service. Snipes, as well as two co-defendants, deny the eight charges that have been brought against them.

The one twist in this case is that Snipes’ lawyers have admitted that he was wrong. But with that being said, the lawyers have also stated that Snipes should only have to pay the money back. In other words, there is no need for a trial as attempted fraud was never his intention.

The prosecutor in the case, M. Scotland Morris said, “”Nobody likes paying taxes, but paying taxes is the price we pay to live in a civilized society.”

The jury in this case consists of five men and seven women. They have heard both sides of the case, and must now decide whether or not Snipes is guilty.

Within the next few days, Snipes will find out what his future holds. It will be interesting to see how the jury deciphers all of the information that has been presented. Stay tuned for the verdict!

Although there is nothing wrong with donating cash to your favorite charity or organization, there are other options that you can consider. For instance, have you ever looked into donating stock instead? Believe it or not, donating securities over cash contributions is becoming more and more popular. While this process may not be as well known as simply donating cash, there is not much too it if you are willing to learn.

Donating appreciated stock offers many tax advantages. But in order to take advantage of all these benefits, you need to first look into a few details.

First things first, look into how long you have held the stock. Is it more or less than one year? Most people know the answer to this question off hand, but if you do not, find the answer right away; it is very important as you move forward. Next, find out the fair market value of the stock. This is the amount of cash that you would receive if you were to sell the stock on the spot.

The amount of time that you have held your stock will determine the benefits that you can take advantage of. If you have held the stock for less than one year, you can deduct the fair market value at the time minus the appreciation since you purchased. For instance, if you bought stock for $1,000, kept it for less than a year and donated when it reached $1,300, your deduction would equal $1,000.

On the other side of things, if you have held the stock for more than one year, your situation will be entirely different. In this case, you should be able to deduct the entire market value.

Donating stock is not as difficult as you may think. Generally speaking, all you have to do is transfer ownership of the shares that you are interested in donating. While it is not quite this simple, your stock broker can lend some assistance.

The next time you think about donating cash, make sure you first consider the tax benefits of donating stock instead.

Do you meet with a professional tax advisor or CPA for help when filing your tax return? If so, you are making a great financial decision. With that being said, it is very important that you are prepared for your meeting. After all, your tax advisor does not live or work with you everyday of the year. For this reason, they have no way of knowing what you have gotten yourself into as far as your taxes are concerned. The only way for them to effectively lend you assistance is if you are 100 percent prepared and organized.

The best way to get prepared is to stay organized throughout the year. If you try to put together all of your tax documents the day that you meet with your advisor, you are sure to miss something. Instead, make sure that you stay organized day in and day out. Sure, it takes a bit of extra time to stay on track throughout the year, but it is something that you must do nonetheless.

What type of paperwork should you organize? Generally speaking, this includes anything and everything that your tax advisor may need. For instance, you need to take receipts for deductions, documents from lenders, and paperwork from the IRS or local tax organizations.

When you are prepared to meet with your tax advisor it will work out to your advantage in two ways. First off, you will not have to spend nearly as much time with them. Additionally, it will give you the best chance of getting the largest return possible.

Overall, being organized and prepared will benefit both you and your advisor. Make sure that you have everything you need, and that you can find the information your advisor asks for.