White House Proposal

White House proposal

(President President Trump Releases a One Page Plan):
Individual Tax Reform

• Reduce seven (7) tax brackets into three (3) tax brackets. 
• The current marginal rates are 10%, 15%, 25%, 28%, 33%, 35%, and 39.6%. 
• Three new proposed rates of 10%, 25%, and 35%. 
• The administration has yet to identify the tax bracket income levels for these new rates? 
• Repeal the Affordable Care Act's (ACA) 3.8% net investment income tax imposed upon unearned income and capital gains of high-income taxpayers.
• Double the standard deduction.
• Limit itemized deductions to mortgage interest and charitable contributions.
• Repeal the estate tax.
• Repeal the Alternative Minimum Tax (AMT).
• Provide tax relief for families with child and dependent care expenses. 
• The administration has yet to clarify how this relief will differ from the current expenses under IRC §21.

Business Tax Reform

• Lower the business tax rate to 15%. While the current corporate tax rate is 35%, many small businesses  (S-Corp's P-Ships)  pass through their income via K-1's to the individual level. 
• The administration has yet to identify any rules which may be established to prevent individuals from creating pass-through entities to avoid being taxed at a lower business rate, rather than higher individual rate?  But there would be rules established to prevent this practice from taking place?
• Establish a territorial tax system. 
• Foreign earned income would generally be excluded from this system.
• Eliminate tax breaks for special interests. 
• Establish a "one-time tax" on corporate earnings realized and held overseas (on which tax is deferred).

Source: NAEA E@lert Newsletter April 28, 2017

IRS Offers New Cash Payment Option

IRS Offers New Cash Payment Option
The Internal Revenue Service recently announced a new payment option for individual taxpayers who need to pay their taxes with cash. In partnership with ACI Worldwide's OfficialPayments.com and the PayNearMe Company, individuals can now make a payment without the need of a bank account or credit card at over 7,000 7-Eleven stores nationwide.

"We continue to look for new ways to provide services for our taxpayers. Taxpayers have many options to pay their tax bills by direct debit, a check or a credit card, but this provides a new way for people who can only pay their taxes in cash without having to travel to an IRS Taxpayer Assistance Center," said IRS Commissioner John Koskinen.

Individuals wishing to take advantage of this payment option should visit the IRS.gov paymentspage, select the cash option in the other ways you can pay section and follow the instructions:

• Taxpayers will receive an email from OfficialPayments.com confirming their information.
• Once the IRS has verified the information, PayNearMe sends the taxpayer an email with a link to the payment code and instructions.
• Individuals may print the payment code provided or send it to their smart phone, along with a list of the closest 7-Eleven stores.
• The retail store provides a receipt after accepting the cash and the payment usually posts to the taxpayer's account within two business days.
• There is a $1,000 payment limit per day and a $3.99 fee per payment.

Because PayNearMe involves a three-step process, the IRS urges taxpayers choosing this option to start the process well ahead of the tax deadline to avoid interest and penalty charges.

The IRS has been partnering with Official Payments since 1999 for taxpayers wanting to use a credit card to pay taxes.

In this new option, PayNearMe is currently available at participating 7-Eleven stores in 34 states. Most stores are open 24 hours a day, seven days a week,. For details about PayNearMe, the IRS offers a list of frequently asked questions on IRS.gov.

The IRS reminds individuals without the need to pay in cash that IRS Direct Pay offers the fastest and easiest way to pay the taxes they owe. Available at IRS.gov/Payments/Direct-Pay, this free, secure online tool allows taxpayers to pay their income tax directly from a checking or savings account without any fees or pre-registration.
Click here for more information about the new IRS payment option.

The Seven Spiritual Laws of Success – A Practical Guide to the Fulfillment of Your Dreams :: Author: Deepak Chopra

The Seven Spiritual Laws of Success – A Practical Guide to the Fulfillment of Your Dreams
Author: Deepak Chopra

Freely inspired in Hinduist and spiritualistic concepts, which preaches the idea that personal success is not the outcome of hard work, precise plans or a driving ambition, but rather of understanding our basic nature as human beings and how to follow the laws of nature. According to the book, when we comprehend and apply these laws in our lives, everything we want can be created, “because the same laws that nature uses to create a forest, a star, or a human body can also bring about the fulfillment of our deepest desires”.

1. The Law of Pure Potentiality: Take time to be silent, to just BE. Meditate for 30 minutes twice a day. Silently witness the intelligence within every living thing. Practice non-judgment.
2. The Law of Giving: Today, bring whoever you encounter a gift: a compliment or flower. Gratefully receive gifts. Keep wealth circulating by giving and receiving care, affection, appreciation and love.
3. The Law of Karma: Every action generates a force of energy that returns to us in like kind. Choosing actions that bring happiness and success to others ensures the flow of happiness and success to you.
4. The Law of Least Effort: Accept people, situations, and events as they occur. Take responsibility for your situation and for all events seen as problems. Relinquish the need to defend your point of view.
5. The Law of Intention and Desire: Inherent in every intention and desire is the mechanics for its fulfillment. Make a list of desires. Trust that when things don’t seem to go your way, there is a reason.
6. The Law of Detachment: Allow yourself and others the freedom to be who they are. Do not force solutions—allow solutions to spontaneously emerge. Uncertainty is essential, and your path to freedom.
7. The Law of Dharma: Seek your higher Self. Discover your unique talents. Ask yourself how you are best suited to serve humanity. Using your unique talents and serving others brings unlimited bliss and abundance

Spring Cleaning: What Financial Records to Keep and What to Throw Away

Spring Cleaning: What Financial Records to Keep and What to Throw Away

When it comes to financial papers, an approach of “better safe than sorry” can lead to a whole lot of clutter. Tax season is coming to a close, and spring is upon us; it’s time to rummage through those mounds of financial records and other important documents and determine what financial records to keep and what can go.

Here is a quick overview of how long you should keep those important documents:
Safe to Dispose of (optionally, keep permanently):

• Bank Deposit Slips (after reconciling statements)
• Certificates of Deposit (after maturity)
• Loan Documents (when repaid)
• Term life Policies (after term expires)
• Savings Bonds (after maturity)
• Car Title (when car sold)
• Warranties (after expiration)

Keep Permanently:

• Birth Certificate
• Death Certificates
• Marriage License
• Military Discharge Papers
• Social Security Card
• Loan Discharge Notices
• Employer Defined-Benefit Communications
• Permanent Life Policies
• IRA Contribution Records

Keep for One Year:

• Canceled Checks (7 years if needed to support tax filings)
• Check Registers
• Check Statements
• Credit Card Statements (7 years if needed to support tax filings)
• Pay Stubs

Keep for Seven Years:

• Brokerage Statements (after securities sold)
• Receipts (if needed to support tax filings)
• Purchase Confirmations and 1099s (after securities sold)
• Tax Returns and Supporting Documents
• Paperwork on Charitable Donations
• Investment and Real Estate Records (after you sell)
• Bank Statements

Keep Indefinitely:

• W-2 Wage and Tax Statement (until you start receiving social security)
• Receipts for Big Ticket Items

When You Receive a New One:

• 401k Statements
• Social Security Statements
• Bills for Non-Deductible Items
• Insurance Policies

Dispose of Old Copy When Updated:

• Health-Care Proxy
• Living Trust
• Living Will
• Power of Attorney
• Will
• Insurance Inventory

Every household must work out it’s own records management system, but some general guidelines can help. This is not necessarily a fully comprehensive list. However, it gives an idea of what can go and when. If you are confused or unsure about a document it’s best to check with your accountant before disposing of it.

This information was provided by:
Mary Ellen Hall EA
Rauker, Scheinfeldt & Company, Inc.
Auburn, MA
Phone - 508-832-4085
Email - Mary Ellen
Website - Rauker, Scheinfeldt

Courtesy:  My Senior Portal