How to Save Money for Retirement

Written by Marilyn Pokorney


Continued from page 1

Experts suggest that you will need an income equaling about 75 percent of your current take home pay. Be sure to estimate a rise in inflation which has historically been about 5.3 percent per year.

Figure out how much of your current salary will need have to save each year to achieve your retirement goal by counting backward fromrepparttar year you plan to retire to see how many years you have before retirement. Includerepparttar 142713 possibility of being on a fixed income for as long as 20 or 30 years. Depending on how many years you have until retirement a U.S. Treasury bond that guarantees six percent interest might be considered, while stocks might haverepparttar 142714 potential for a much higher return, but has a much higher risk of loss.

A financial planner, stockbroker, or an accountant, can offer guidance, expertise and access to knowledge about almost any type of investment or retirement planning concerns.

Spread your money out over a variety of investments. Some will prosper while others may fail.

Set up an automatic draft from your bank account from your paycheck so that a portion of your income goes directly into your retirement funds. Pay off major debts, such as home mortgages, college loans and other significant cash-flow drains, as quickly as you can.

For more information visit:

http://www.apluswriting.net/finance/retire.htm

Author: Marilyn Pokorney Freelance writer of science, nature, animals and the environment. Also loves crafts, gardening, and reading. Website: http://www.apluswriting.net


Highlights of IRS List of 2005 Tax Scams

Written by Richard A. Chapo


Continued from page 1

5. Corporation Sole. Participants apply for incorporation underrepparttar pretext of being a “bishop” or “overseer” of a one-person, phony religious organization or society withrepparttar 142712 idea that this entitlesrepparttar 142713 individual to exemption from federal income taxes as a nonprofit, religious organization. When used as intended, Corporation Sole statutes enable religious leaders to separate themselves legally fromrepparttar 142714 control and ownership of church assets. Butrepparttar 142715 rules have been twisted at seminars where taxpayers are charged fees of $1,000 or more and incorrectly told that Corporation Sole laws provide a “legal” way to escape paying federal income taxes, child support and other personal debts.

6. Offshore Transactions. Despite a crackdown, individuals continue to try to avoid U.S. taxes by illegally hiding income in offshore bank and brokerage accounts or using offshore credit cards, wire transfers, foreign trusts, employee leasing schemes, private annuities or life insurance to do so. The IRS continues to aggressively pursue taxpayers and promoters involved in such abusive transactions.

7. Zero Return. Promoters instruct taxpayers to enter all zeros on their federal income tax filings. In a twist on this scheme, filers enter zero income, report their withholding and then write “nunc pro tunc”–– Latin for “now for then”––onrepparttar 142716 return. The IRS takes a very poor view of this tactic.

8. Employment Tax Evasion. The IRS has seen a number of illegal schemes that instruct employers not to withhold federal income tax or other employment taxes from wages paid to their employees. Such advice is based on an incorrect interpretation of Section 861 and other parts ofrepparttar 142717 tax law and has been refuted in court. Recent cases have resulted in criminal convictions, andrepparttar 142718 courts have issued injunctions against more than a dozen persons ordering them to stop promotingrepparttar 142719 scheme. Employer participants can also be held responsible for back payments of employment taxes, plus penalties and interest. It is worth noting that employees who have nothing withheld from their wages are still responsible for payment of their personal taxes. The employees, however, can sue their employer for damages.

Inappropriate tax schemes come and go, sorepparttar 142720 2005 list is fairly standard stuff with one exception. The spread of identity theft schemes is troubling, particularly when thieves pretend to act as IRS agents. Be careful out there.

Richard Chapo is CEO of BusinessTaxRecovery.com - We recover overpaid business taxes for small businesses. 80% are due refunds of $5,000 to $10,000 on past tax filings. How much you are owed?


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