2006 Scams

The IRS has kicked out its annual list of highly dubious tax scams for 2006. Promoters often make these strategies sound credible, but they simply arent. If a taxpayer attempts to use one of the scams, the IRS will audit and aggressively attack the taxpayer as well as try to identify the promoter for prosecution.

The 2006 list of scams contains most of the traditional claims. There are, however, three new areas being targeted by the IRS. They and a few others are highlighted in the following list.

Two new schemes have worked their way onto the list in 2006. In recent months IRS personnel have noted the emergence of the two scamszero wages and Form 843 tax abatement in which filers use IRS forms to claim that their tax bills have been wrongly inflated.

Also high on the list in 2006 is phishing, a favorite ploy of identity thieves. Over the past few years, the IRS has observed criminals working through the Internet, posing even as representatives of the IRS itself, with the goal of tricking unsuspecting taxpayers into revealing private information that can be used to steal from their financial accounts.

1. Zero Wages A new addition to the list, the zero wages scam is designed to create a log jam in the system. A taxpayer is supposed to file a tax return with no wages claimed and notice of challenges to any W-2 or 1099 wage reports. In essence, the idea is to not pay taxes while the IRS tries to figure out what is going on. Ultimately, the goal is to get the IRS to accept a zero income tax return, which of course requires no payment of taxes.

2. Form 843 Tax Abatement The tax abatement strategy is very creative. It is typically used for taxpayers who have failed to file taxes for a few years. In such a situation, the IRS will often assess taxes to the individual based on a variety of factors. The strategy is to abate this assessment and pay not tax by challenging the assessed amount as being calculated incorrectly. The IRS says it doesnt fly, but it is a very creative strategy.

3. Identity Theft/Phishing. This isnt so much a tax reduction scam as a nightmare wherein identity thieves try to obtain information from taxpayers by acting as IRS agents. Often they send out email as though they are from the IRS. The IRS never sends emails to taxpayers, so dont respond to these emails. If youre not sure, call the IRS and ask them if there is a problem. You can reach the IRS at 800-829-1040.

4 Credit Repair Companies You see these companies everywhere. Some are legitimate while others are not. The ones that are not charge high fees and do almost nothing other than putting taxpayers on some kind of a payment plan. The IRS is currently revoking the tax-exempt status of many credit repair companies.

5. Offshore Strategies A traditional area of angst for the IRS, offshore strategies continue to be closely watched. The IRS is hyper sensitive to such strategies and tries to shut them down. In 2005, 68 individuals were charged and convicted for promotion offshore tax scams and thousands of taxpayers were audited with nightmarish results. If you want to go offshore, make sure you get qualified advice from a tax professional and attorney. Dont buy something off a web site.

There is a fine line between tax evasion and tax avoidance. Tax avoidance is legal while tax evasion is criminal. If you wish to pursue advanced tax planning, make sure you do so with the advice of a tax professional that is going to defend the strategy to the IRS.

2006 List of Tax Scams Released by IRS is a post from: Loan Consolidation Knowledge Finance Site

Quality management is certainly a key motivation in attracting a reporters attention. This helps persuade the reporter or a radio/TV producer that the proposed interview isnt going to be with someone who has nothing to say or just rehashing a clich or tired, old story. The higher the title and the better known a company, the greater the impingement a PR pitch (thats what publicity people use to sell a reporter) impacts upon a member of the media. If someone from the publicity department at Microsoft calls Fortune magazine to ask about profiling Bill Gates, the pitch will have major impingement value. Few names have this kind of clout, either personally or corporately.

In any event, the senior editor of the major magazine will still inquire about the story angle. The editor will want to know, What are we going to talk about? Ultimately, it is the outstanding story that sells magazines or newspapers, not just the big name. Not all such stories involve a big name speaking or spouting his thoughts for the day. Often, better stories evolve when there is a strong newsworthy angle. Lets look at two recent stories one which involves a uranium company and another one about a coalbed methane (CBM) company, which weve covered in this column.

On Thursday, Pacific Asia China Energy (PACE) was featured in the Financing section of Canadas Globe and Mail newspaper. Headlined High-Energy Performer, the opening sentences told us why the reporter was interested: PACE holds contracts to help China explore for and develop its coalbed methane (CBM) resources fuel China needs to help satisfy its energy demands.

The big story, which drew the newspaper to Pacific Asia China Energy, was China. PACE piggybacked that story because the company may be helping to offer a legitimate solution to the countrys energy mix. Part of the big story is the possible size of the recoverable gas, estimated in a technical report by Sproule International to be as large as 11.2 trillion cubic feet of gas.

Those two items enhanced the reporters interest in PACE. China needs alternative energy sources, such as CBM, to improve their energy mix from a near total dependence upon coal. And, PACE has a potentially huge resource, which could last a good number of years. Such a gas resource could be sufficiently large to make an impact on China. After all, China has proven reserves of a little more than 30 trillion cubic feet. Another 11 trillion cubic feet, should the potential be proven up, would represent a significant increase of available gas in a very large country. By itself, this could later develop into a major international energy story, reported upon by a great number of news media. Another impingement about the reporter is having the satisfaction of reporting upon a good story, well before others write the story.

Chatter in the newsroom:
Did you hear about PACEs gas discovery in China, Bob?
Bobs Reply: Oh that one. Yeah, I wrote about it eight months ago!

Therefore, there are multiple impingement points in this story. Each draw, or a reason to attract eyeballs to the story, is another point the story must score, for the reporter and his editor, to overcome the hurdles of being featured in a major publication. China is a draw. The size of the PACE coalbed methane gas resource is a draw. The potential impact upon Chinas energy mix is a draw. Writing about it before the rest of the pack jumps on the bandwagon? Thats a draw, too. In this case, four draws sufficiently attracted media coverage for this small CBM development company.

Sometimes, the timing is just perfect, and the overpowering big story accidentally introduces a lucky guy onto the worlds stage. On the same Thursday, the PACE story was carried in the Globe and Mail, the Chief Executive of a tiny Canadian uranium company impinged on a Russian news service reporter in Hong Kong. Such was the good fortune for Craig Lindsay, a Certified Financial Analyst, who has spent more than 16 years in corporate finance, investment banking and business development, according to the website of Magnum Uranium, for which he now serves as Chief Executive.

While Magnum has a market capitalization of about $15 million, and Lindsay is neither a geologist nor engineer, RIA Novosti news agency touted him as a well-known energy expert. Admittedly, Lindsay gave a great speech at the Hong Kong Club for foreign correspondents. Cleverly, he announced, Uranium may be the next oil, during his speech. As many other industry experts have predicted, Lindsay also forecast uranium may hit $50/pound by the end of the year. So many are now announcing this it is likely to become a self-fulfilling prophesy.

What elevated Lindsays publicity was not what he said in his speech. Most of his commentary has been already been reported in numerous publications, including in our columns. (What reporters really hate is rehashing old news to give someone publicity!) It was to whom Lindsay was speaking, and especially the timing as to when it was said. Here is how Craig Lindsay got his 15 minutes of fame.

About six hours earlier, the very same Russian news agency reported that Russia and Kazakhstan had signed a uranium deal worth $1 billion. The photos of Russian President Vladimir Putin and Kazakh President Nursultan Nazarbayev appeared as the photo op which goes with such really big stories. This was a major event involving two very big names, and among the biggest names and countries in the uranium sector. This was also Russias first contract to import uranium; Kazakhstan is the worlds third largest uranium producer. All of this is big news.

The clever Russian freelance reporter, who attended the Lindsay speech in Hong Kong, probably text-messaged or emailed his editor by Blackberry, tried to piggyback the Russian-Kazak story with his own story. Yes, that is how timing works. As soon as a major event takes place, other journalists rush to piggyback the event with their story. The Russian reporter scored points with his editor and got his story filed (slang for published).

Two cunning gentlemen, the Russian stringer (slang for freelance reporter), and Craig Lindsay (whose name was spelled Kreig Lindsay in the article), both accomplished their purposes. Mr. Lindsay got his company into the worlds spotlight. The Russian stringer got a great story. The reporter threw up a softball question, for which Mr. Lindsay supplied the desired answer.

What was the question the reporter asked Lindsay? Thats pretty obvious from what the reporter published in his article. Here is a clip from the Moscow News article:

Foreign investors are ready to invest in Russias uranium industry, if Moscow wants this to happen and establishes a necessary legal base, Lindsay said. I believe that Russia is one of the most promising directions for this kind of investments, it is an undeveloped market, full of opportunities. My company will be the first to come to Russia, if the necessary conditions are created, he added.

Nowhere in Lindsays speech did Magnum Uraniums Chief Executive discuss investing in Russia. However, the reporter NEEDED a good quote. It had to tie-in with investing in Russia for uranium development. Lindsay accommodated. He didnt commit to investing in Russia, but he kept the door open. Magnum Uranium recently announced the acquisition of a 1,080-acre land package in Converse County, Wyoming. The company is also exploring for uranium in both Wyoming and the Athabasca Basin. Its finances are probably already stretched from both exploration and acquisition activities. Magnums market capitalization would probably be insufficient to launch investments into Russia, at this time.

However, Lindsay did a great job getting his company this caliber of publicity. And he got the uranium sector excellent publicity. He capitalized upon an impinging story a story that did show up on the worlds radar by correctly supplying an answer the Russian journalist was trying to prod out of him.

This is the essence of how journalists and publicity-seekers work together. If the PR person gives the journalist the story angle he is looking for within the bigger story, chances are it will appear in print. Piggybacking a main event is the most common way to increase ones impingement value to a reporter. And by being a cunning interviewee for his Russian reporter, Craig Lindsay just got Magnum Uranium into this column as well!

A Companys Story Must Carry Impingement Value to Obtain Widespread Publicity is a post from: Loan Consolidation Knowledge Finance Site

To be really effective, you need to look at both the outside and the inside of your home. Here are 3 tips to get you started with the inside of your home:

1. De-clutter. This is one of the most important things you can do. It might be easier to think of de-cluttering like this youre moving anyway, so why not start packing now?

Pack up everything you dont need and store the boxes out of sight in the garage (or consider temporarily renting a small storage locker).

2. Organize your closets – put similar colors together, pants together, skirts together, shirts together etc. Why? Because it will make the closets look bigger. (Really.) An organized closet appears bigger, and you want your closets to look as spacious as possible.

3. Make your home look like a model. You want to de-personalize as much as possible so potential buyers can imagine themselves and their own belongings occupying the space in your house. That means minimizing putting away everything you dont need or use. Clear off kitchen counters as much as possible stash all those appliances you dont use, and put miscellaneous small clutter in a few attractive baskets or boxes

And the biggest tip of all? Imagine yourself as a potential buyer looking at your property for the very first time. What impressions are you getting? Would YOU buy your house? What would you like to see changed before you put an offer on your house?

And dont worry about spending several thousand dollars to get your house ready to sell youll get it all back when your house sells. Proper staging helps you sell your house in a shorter time and at the price you want.

3 Tips to Staging the Inside of Your Home Like a Pro is a post from: Loan Consolidation Knowledge Finance Site

You probably know that by recycling you can save landfill space. But did you know that recycling also can produce a profit for your company? Follow these recycling tips and your workplace will be ready to save the world.

* Create a recycling program. Almost all types of office papers are recyclable. So is most plastic, aluminum and cardboard. If your office doesn’t already have a recycling program, contact your local recycling company to see how to start one.

* Use recycled products. If you recycle but don’t buy recycled products, you’re defeating the purpose, in a sense, by discouraging manufacturers of recycled products.

* Conserve paper. Find paperless ways to communicate, such as by e-mail. Also, save used paper for scrap, make double-sided copies and only print pages you actually need. By cutting back on paper consumption, your office will save money and natural resources.

* Recycle office equipment. Did you know that computers can be recycled, as well as cell phones, PDAs, pagers, chargers and rechargeable batteries? Many local recycling companies and retailers, including Staples, offer easy ways to recycle your equipment.

* Recycle empty inkjet and toner cartridges. The fewer drafts you print, the more money you’ll save on cartridge replacements. But when that inkjet or toner cartridge is empty, recycle it through mail-back programs or local retailers like Staples.

In fact, Staples offers a Recycle for Education program that gives $1 to local education charities for every empty inkjet or toner cartridge you recycle in their stores.

5 Tips to Save Money–And the Earth is a post from: Loan Consolidation Knowledge Finance Site

Investors as a whole are primarily allocating their new investments to a small number of mutual funds and to a smaller number of mutual fund companies. Investors have invested over $400 billion in the 2843 different mutual funds, but one-third of those assets are invested in only 50 of those funds and one-half of those assets are invested in the largest 100 funds.

There are benefits to following the market leaders. Larger mutual fund companies and larger funds have the ability to reduce costs and attract the best professional money managers. However, the biggest limitation is that today’s better-selling mutual fund may not be tomorrow’s winner. This is true for any mutual fund but it seems to plague the best seller, and the one that garners the most attention, the most often.

So buying the equity fund that was yesterday’s best-seller isn’t a strategy that produces excellent returns. You do not have to go fully in the opposite direction and ignore these hot funds, but you should understand their limitations and strengths. They became best-selling funds because they have merit, but you have to access that merit within your own well-diversified portfolio, and not the crowd’s current investment trend.

How to select a mutual fund is a post from: Loan Consolidation Knowledge Finance Site

1. Increased conversion rates: Mortgage branches obtain mortgage leads from various sources such as mortgage lead websites and marketing companies. These leads are pre-sorted to include prospects that possess the right credentials and are more likely to buy a home. Following up on genuine leads increases the conversion rate, helps to generate more referrals, and provides companies with more time to concentrate on customer service. A good mortgage lead management system allows companies to close up to 20% more leads than before.

2. Good leads do not get lost: In the absence of a good lead management system, genuine leads are apt to get lost in the clutter that arises from obtaining leads in a haphazard manner. With a lead management system in place, this does not happen as only genuine mortgage shoppers are included in the lead. The leads generated can be differentiated in terms of zip codes, loans required, area codes, credit history, etc. Such cataloging of the leads simplifies the follow-up and tracking of these leads. Thus, a good lead management system makes it easy for companies to act on the leads while they are still hot. It helps companies to allocate their resources more efficiently for the purpose of converting leads into business.

3. Better response time: A swift response to queries from prospects helps to not only resolve their doubts but can also prevent them from looking elsewhere. Good mortgage lead management enables collection of leads for various services. These leads are gathered at a central location where they can be easily accessed by all employees who can study the information and contact the leads quickly. The database of information provided by a mortgage lead management system can be easily updated, and future queries by prospects can also be handled with ease.

4. Better security: A good lead management system offers security for mortgage companies as well the prospective clients by providing access only to qualified employees. This is of significance to prospects who part with valuable information in their dealing with the mortgage companies.

Thus, implementation of a good mortgage lead management system enables better customer service and data security for the prospect, and higher efficiency and profits for the mortgage firm.

4 Reasons Why Good Mortgage Lead Management Is Essential is a post from: Loan Consolidation Knowledge Finance Site

Bankruptcy And Sub Prime Lenders

Millions of people file for bankruptcy every year for many understandable reasons, such as job loss or illness. Sub prime lenders understand this and are willing to lend to such people

Specializing in high risk loans with unconventional terms, sub prime lenders can work out financing for virtually anyone. Legitimate lenders will offer rates that are competitive with reasonable closing costs.

Bankruptcy Affect On Your 2nd Mortgage Rates

The first two years after a bankruptcy are the most difficult for your credit score. Right after your bankruptcy, you will qualify for E class loans, the highest rate mortgages.

After a year and a good credit history, you can qualify for better rates with a C class loan. Rates are typically about 3% to 5% higher than conventional rates. And in two years, you can possibly have an excellent credit score and get prime mortgage rates.

Other factors also affect your mortgage rates. Keeping a large percent of your equity in tact along with cash assets could possibly bump up your credit score.

Comparison Shopping For Better Rates

No matter when you decide to secure a 2nd mortgage, you need to shop loan rates before settling on a lender. Each financing company has its own formula for determining rates and closing costs. A careful search of loan estimates will ensure you get the cheapest rates and fees.

If you dont have a specific lender in mind, start with a mortgage broker site. They partner with several different companies to come up with special offers. From there you can expand your search to individual lender sites.

When you are looking at rates, be sure they include closing costs as well. With some lenders, low rates are available only if you pay thousands up front. You may also want to consider a home equity line of credit if you want to keep loan processing fees to a minimum.

2nd Mortgage Loan After Bankruptcy – Get Approved Online With A Sub Prime Lender is a post from: Loan Consolidation Knowledge Finance Site

The Benefits of an Internet Model based Lease Management system

To implement, the Internet model is much simpler than its client/server based counterpart, demanding nothing more than a secure Internet server on which the lease accounting software and database reside. Each of the limitless number of computers accessing the server can run any operating system, be it Apple Macintosh or Windows 2000, with nothing more than access to the Internet. By inference, the type of Network and the leasing software’s compatibility to it no longer matters. Even the physical implementation of the network itself, in laying down the wiring and connections, becomes redundant when any authorized computer belonging to any authorized user, is part of the virtual network. In this respect, especially for lessors with multiple operations in different locations, the model used in the lease management software is a boon that takes no more significant effort to tie two computers into its virtual network as it does 2,000. Even training employees to use the lease accounting software becomes easy when there is one standard program worldwide. This immediate scalability and operating-system/network-independence of the leasing software model makes it possible for lessors of all sizes to experience IT benefits unknown in the client/server world.

It would seem that today’s nascent Internet technology compromises the functional power of the client/server model in their leasing software; complex algorithms required to amortize income or calculate yields appear hard or even impossible to replicate on a browser. Fortunately, however, with the growing sophistication of Internet developmental platforms such as Microsoft’s Active Server Pages, Internet applications run a tight race with client/server technologies. The Internet based lease accounting software enables yields and depreciation schedules to be calculated with the same click of a button. The lease management software facilitates reports to be sorted, filtered and queried to obtai any conceivable information available in the database. Income, IDC and residual can be accrued, blended and separated, just like they are in client/server systems.

Not surprisingly, even technology as complex as an Enterprise Resource Planning system, simultaneously used for solutions from global car-manufacturing to domestic chemical-production, runs on Internet-based applications today similar to the internet based lease accounting software. Leading ERP vendors including SAP, Oracle Financials and PeopleSoft, for instance, have tried and tested success stories of highly versatile and complex system that are browser based. “Lease Management Software”, says Jay Mehra, COO of Odessa Technologies, Inc., “though sophisticated in its own right, can quite easily be implemented on the Internet.” Despite the complexity, therefore, the functional powers of traditional models are easily captured in Internet-based applications.

Functionality of the Internet model and the Lease Management Software
While functionally the Internet application is interchangeable, its differentiating quality lies in its approach to data. By the very nature of their technology, client/server systems typically just crunch numbers. A good Internet based application, on the other hand, maximizes the value of that data, in addition to maintaining it. This translates into a direct value-add for the lessor’s operational efficiency. Sales staff can, for instance, be allowed to access the leasing software from anywhere they can connect to the Internet. During negotiations, they can obtain historic information about the lessee to make informed decisions for new business opportunities through the lease management software. The traditional one-way pipelines of data delivery thus become forums for information exchange.

Equally important, as shown by the diagram above, the new channels of Internet-driven communication can now enhance the lessor’s external relationships. Odessa Technologies, developer of a wholly web-based Lease management and accounting software, uses a series of independent web sites that ties the lessor with its various business partners. Through their lessee web site, lessees can get online help, access important account information, download invoices and even make secure Net payments enabled by the lease management software. Moreover, by leveraging the critical data residing within the Internet application, the lessor can even customize business promotions based on the individual lessee logging onto the system. Far from being just a tool that manages a part of the leasing business, lease management software thus becomes a way of conducting and even marketing the business. Through the Internet model the leasing software is able to bring about new sources of productivity, both direct and implied, are thus created from business relationships that are fuelled by information flow.

LeaseWave – A new Wave in Lease Accounting Software
While the advantages of Internet-based applications are obvious, there is a conspicuous absence of such technology in the leasing industry. It is this gap between the ideal technology and what is typically available that Odessa Technologies, Inc. is fulfilling. With the release of LeaseWave, a technology built entirely on Microsoft’s Internet platforms, Odessa brings the lease management process online. Through LeaseWave and technological collaborations with companies such as CapitalStream and Ivory Consulting, the company offers a comprehensive solution that is entirely Internet based by way of the lease accounting software. LeaseWave, at its core, provides for complete asset management and lease accounting functionality, allowing the lessor to efficiently manage any number of lease portfolios in the leasing software. Beyond this core, LeaseWave provides a series of interactive web sites that connects the lessor with business partners including lessees, funding sources, auctioneers and banks via the lease management software. Each line of communication in the lease software employs secured socket layers for complete security and is even e-commerce enabled, allowing for secure online ACH and credit card payments.

It is common knowledge that front-end systems, such as CapitalStream’s CapitalStream – FinanceCenterTM are already leveraging the powers of the Internet. The efficiencies that they have realized, however, represent only the beginnings of a greater change. Still to be tapped are the efficiencies of large data-rich back-end processes. The web-enabling of lease management and accounting software, by companies such as Odessa Technologies, is a step towards this efficiency-realization. As Internet technology seeps into the back-end, the leasing industry stands to experience a rare paradigm shift: one where the technology drives the process rather than being driven by it.

Bios

Madhu Natarajan, CEO Odessa Technologies, Inc.

Madhu Natarajan became the CEO of Odessa Technologies, Inc. He has consulted for various companies including Caterpillar, Inc and Crowe Chizek, LLP; Madhu brings with him an extensive research based leasing background with 5 years of leasing software experience. He holds a Bachelor’s degree in Computer Science and Business Administration from Monmouth College, Monmouth, IL; Madhu graduated Magna Cum Laude.
fax copy to 610-293-9903

Internet Based Lease Accounting Software: Creating Operational Effeciency While Crunching Numbers is a post from: Loan Consolidation Knowledge Finance Site

* Know your goals. Consider how much money you’ll need for your children’s education or your retirement. Whatever your vision for the future might be, set your goals and develop a concrete plan for meeting them.

* Define your investment time horizon. If you’re not planning on retiring anytime soon, you might want to have a portfolio that includes more long-term investments. If retirement is just around the corner, consider a more conservative approach.

* Determine your risk tolerance. Figure out your risk comfort level and compare that with what you can afford. In general, the longer you have to invest, the bigger risk you can take.

* Consult a professional. In order to avoid financial pitfalls later on, it is often wise to seek professional guidance when putting together a portfolio.

“Recent research shows that investors continue to grapple with some of the most basic investment concepts, suggesting a greater need for financial advice and guidance,” said Doug Lockwood, a certified financial planner.

To help investors meet their financial goals, American Century Investments has developed On Plan Investing, a program designed to help investors build and maintain diversified investment portfolios – at no additional cost.

Combining educational tools, advice, market insight and investment products, On Plan Investing helps investors develop a personal investment strategy, whether they are new to investing, seeking guidance but still want control over their investment mix, need help positioning their portfolios with a long-term perspective or need help understanding how the markets work.

4 Tips to Build a Successful Portfolio is a post from: Loan Consolidation Knowledge Finance Site

Step 1 – Cut the Risk and Cut the Cost
The easiest way to cut your car insurance premiums is to cut the risk and accept a higher voluntary excess. An insurer’s standard excess may be 100 but if you meet the first 250 of any claim, you’ll see a reduction in your premium. This is because you’re taking on more of the risk so you get a discount. But it’s a gamble, be aware that you might have to meet the cost of a broken window after an attempted theft or a bill for repairing bodywork damage after a car park crunch.

Step 2 – Security Means Savings
Fitting security devices can also result in cheap car insurance premiums. All major insurers insist on Thatcham rated security equipment, usually a minimum of an alarm. If you live in a high-risk area for car crime, it makes sense to fit extra security. It saves you money when your insurance renewal is due and gives you extra peace of mind.

Step 3 – Annual Mileage, Less Means More in Your Pocket
If your annual mileage is, 5,000 miles or less, ask insurers if they offer discounts for agreed mileage restrictions.

Step 4 – Named Drivers Trick
Adding a named driver to your policy can increase or reduce your premiums depending upon the named drivers age, sex and driving record. Adding a young driver will increase your premiums, particularly with a limited or poor driving record. However, adding a driver over 30 years old with a long and clean driving record can cut premiums, particularly if the named driver is female!

Step 5 – Shop Around and Save Even More
The biggest car insurance savings come from shopping around. There can be massive differences between the lowest and highest car insurance quotes for exactly the same car and driver(s). Start off using good comparitive online quotation sites, take their best quotes and go direct to the cheapest car insurance company for more specific quotes.

So next time your renewal quote arrives, don’t just accept it and give your money away to the insurance company. Use the steps above and get the right cover at the right price.

5 Steps To Cheap Car Insurance Premiums is a post from: Loan Consolidation Knowledge Finance Site