On June 23rd, the IRS announced an increase in the optional standard mileage rates for the final six months of 2008. Taxpayers may use the optional standard rates to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
The rate will increase to 58.5 cents a mile for all business miles driven from July 1, 2008, through Dec. 31, 2008. That’s an 8 cent increase from the rate for the first six months of 2008. The IRS normally updates the mileage rates once a year in the fall for the next calendar year but because of the rising price of gas, they’ve decided to make the adjustment.
"Rising gas prices are having a major impact on individual Americans. Given the increase in prices, the IRS is adjusting the standard mileage rates to better reflect the real cost of operating an automobile.” –Commissioner Doug Shulman
The optional business standard mileage rate is used to compute the deductible costs of operating an automobile for business use in lieu of tracking actual costs. This rate is also used as a benchmark by the federal government and many businesses to reimburse their employees for mileage.
The new rates are contained in Announcement 2008-63 on the optional standard mileage rates.
Now you have the smoking gun…Use it!
Solve Your Tax Debt: See if you Qualify for an Offer in Compromise
Settle Down: If you have a tax debt and are in need of settling, you have a few options available to you. Most taxpayers are not able to pay off their debt in full. If this is your case, and you are unable to pay the IRS through an Installment Agreement, an Offer in Compromise (OIC) may be your best choice.
Last Resort: An Offer in Compromise is an agreement between you and the IRS that resolves tax debt by settling or compromising for less than full payment. An OIC is only considered after all other payment options have been exhausted. This means that you have sorted through the requirements of the other plans and find that you don’t qualify, or you can’t make the payments.
The Choice is Yours: Initiating the process, filing accompanying forms, and paying the $150 application fee are entirely up to you. It’s in your hands and it’s not easy. Acceptance into the program is stringent; the IRS resolves very little of the cases this way so it’s important that if you are applying for the program, you are sure it is one of your final options. Otherwise you could end up wasting time, and money.
The Equation: Basically an OIC is your ability to pay vs. the IRS’ ability to collect.
Ask yourself this question: if the IRS were to take everything from you (your wages, your assets, etc.) would that satisfy the debt? If the answer is no then you may just qualify. However, keep in mind that the IRS has a very specific formula for determining your ability to pay.
Big Picture: The entire process of an OIC may take up to two years just to get accepted. Remember that approximately 83% of Offer in Compromise cases are rejected by the IRS. Speak to a tax professional and make sure that you can qualify; otherwise you may be wasting your time. From the IRS Hitman side, I’ve seen many submitted OIC cases. Even though most were rejected and the cases that were accepted were a rarity, it was still nice to see people get the help they deserve. If you make sure the time and effort are worth it
Now you have the Smoking Gun…Use it!
Last Resort: An Offer in Compromise is an agreement between you and the IRS that resolves tax debt by settling or compromising for less than full payment. An OIC is only considered after all other payment options have been exhausted. This means that you have sorted through the requirements of the other plans and find that you don’t qualify, or you can’t make the payments.
The Choice is Yours: Initiating the process, filing accompanying forms, and paying the $150 application fee are entirely up to you. It’s in your hands and it’s not easy. Acceptance into the program is stringent; the IRS resolves very little of the cases this way so it’s important that if you are applying for the program, you are sure it is one of your final options. Otherwise you could end up wasting time, and money.
The Equation: Basically an OIC is your ability to pay vs. the IRS’ ability to collect.
Ask yourself this question: if the IRS were to take everything from you (your wages, your assets, etc.) would that satisfy the debt? If the answer is no then you may just qualify. However, keep in mind that the IRS has a very specific formula for determining your ability to pay.
Big Picture: The entire process of an OIC may take up to two years just to get accepted. Remember that approximately 83% of Offer in Compromise cases are rejected by the IRS. Speak to a tax professional and make sure that you can qualify; otherwise you may be wasting your time. From the IRS Hitman side, I’ve seen many submitted OIC cases. Even though most were rejected and the cases that were accepted were a rarity, it was still nice to see people get the help they deserve. If you make sure the time and effort are worth it
Now you have the Smoking Gun…Use it!
IRS Alert: Watch Out for Phony Tax Relief Companies!
If you’re having a tax issue and you’ve filled out an online application looking for help, be careful! Some of the companies that you speak with can end up doing more harm than good. Here are some big warnings, from some big names:
“Taxpayers should beware of promoters' claims that tax debts can be settled for "Pennies on the Dollar" through the Offer in Compromise program. ‘We urge taxpayers not to be duped by high-priced promises.’”
- IRS Commissioner Mark W. Everson.
Don't give your credit card number or bank information over the phone unless you know the company. One easy way for a scam operator to close a deal is to get your credit card number and charge your account. Sometimes fraudulent telemarketers say they need the number for verification purposes only. Don't believe them.
– Federal Trade Commission (FTC)
Some so-called "tax relief" or "tax settlement" firms claim they can step in and petition the IRS to remove penalties and interest from your tax debt. Be careful… …you want to ensure that the company is honest about what it can deliver.
-Dallas Morning News
Here are my Top 5 Alerts when looking for Tax Help:
1.Beware of any company that has a “Retainer Fee” or “Retainer Agreement.” Retainer means they can charge you more fees later…and if they can get more of your money…they will.
2. Watch out for companies that don’t have a refund policy. You want a company that can stand behind their work; if they don’t offer a refund; ask “Why Not?”
3.Look out for hidden fees. Convenience fees are a big red flag! These companies will tell you one price and when you get their contract, you’ll read a higher price. It’s a perfect example of the “Bait and Switch” scam.
4.Make sure the information you are being told is correct; especially on Offer in Compromise Programs. Remember that with an OIC, 83% of cases are rejected by the IRS. A lump sum down payment is required, and you must make a five-year agreement to join the program.
5.Make sure the company has at least a three-day rescission or “opt-out” on their contract. Fast talking companies just want your money; they don’t want you to get out of their contract.
Now you have the smoking gun...Use it!
“Taxpayers should beware of promoters' claims that tax debts can be settled for "Pennies on the Dollar" through the Offer in Compromise program. ‘We urge taxpayers not to be duped by high-priced promises.’”
- IRS Commissioner Mark W. Everson.
Don't give your credit card number or bank information over the phone unless you know the company. One easy way for a scam operator to close a deal is to get your credit card number and charge your account. Sometimes fraudulent telemarketers say they need the number for verification purposes only. Don't believe them.
– Federal Trade Commission (FTC)
Some so-called "tax relief" or "tax settlement" firms claim they can step in and petition the IRS to remove penalties and interest from your tax debt. Be careful… …you want to ensure that the company is honest about what it can deliver.
-Dallas Morning News
Here are my Top 5 Alerts when looking for Tax Help:
1.Beware of any company that has a “Retainer Fee” or “Retainer Agreement.” Retainer means they can charge you more fees later…and if they can get more of your money…they will.
2. Watch out for companies that don’t have a refund policy. You want a company that can stand behind their work; if they don’t offer a refund; ask “Why Not?”
3.Look out for hidden fees. Convenience fees are a big red flag! These companies will tell you one price and when you get their contract, you’ll read a higher price. It’s a perfect example of the “Bait and Switch” scam.
4.Make sure the information you are being told is correct; especially on Offer in Compromise Programs. Remember that with an OIC, 83% of cases are rejected by the IRS. A lump sum down payment is required, and you must make a five-year agreement to join the program.
5.Make sure the company has at least a three-day rescission or “opt-out” on their contract. Fast talking companies just want your money; they don’t want you to get out of their contract.
Now you have the smoking gun...Use it!
IRS Attack! : Don’t Get Caught in the IRS Crosshairs!
The Last and the Worst: Most people don’t put the IRS at the top of their priority list and here’s why: If you don’t pay your electric bill, they cut off your power. If you don’t pay your car insurance, they terminate the policy. You could go years without hearing anything from the Federal Government. So why worry right? Wrong! The thing that separates the IRS from every other collection agency in the world is that when they come, they come hard!
Round One! So you haven’t filed in the last few years. You’ve probably gotten a couple of letters from the IRS, asking about your debt. Now you find yourself holding a letter that says Final Notice. While this may not seem important at the time, you’d better pay attention! That’s the IRS’ final warning before the onslaught begins. And trust me; you don’t want to be on the receiving end of an IRS attack. Here’s what they will do.
Levy – This tactic involves the IRS putting a federal lien on your bank account and holding all funds. In short, you’re frozen out of your bank account. And if you have direct deposit, you can kiss your paychecks goodbye. The worst part? Neither you nor your bank has any say in the matter.
Lien – A tax lien can be placed on your credit, meaning you can’t do anything that involves credit payment. This can ruin your credit score for the rest of your life! The IRS can also place liens on your house, making it impossible to sell or renovate. Eventually, these liens turn into seizures, and the IRS sells your property in order to pay off the tax debt.
Wage Garnishment – This is my personal favorite, and probably the most effective. The IRS will contact your employer and start taking a percentage of your check in order to pay off the debt. They can legally take out up to 80%, and a good IRS Hitman will take as much as he can.
Here’s What to Do: File your taxes! Even if you owe money, and you have to file an extension, make sure you file. The IRS can put you in jail if you don’t file, and the penalties are up to $50,000 per year not filed. If you know you’re not going to file on time, file for an extension. Contact with the IRS is extremely important. The IRS is not the collection agency to mess with.
Going at it Alone: An IRS debt can be a terrible situation. As an IRS Hitman, I know how brutal they can be. If you’re in a rough spot, and you’re losing hope, contact a tax professional. They have the knowledge and experience needed to get the IRS off your back.
Now you have the smoking gun…Use it!
Round One! So you haven’t filed in the last few years. You’ve probably gotten a couple of letters from the IRS, asking about your debt. Now you find yourself holding a letter that says Final Notice. While this may not seem important at the time, you’d better pay attention! That’s the IRS’ final warning before the onslaught begins. And trust me; you don’t want to be on the receiving end of an IRS attack. Here’s what they will do.
Levy – This tactic involves the IRS putting a federal lien on your bank account and holding all funds. In short, you’re frozen out of your bank account. And if you have direct deposit, you can kiss your paychecks goodbye. The worst part? Neither you nor your bank has any say in the matter.
Lien – A tax lien can be placed on your credit, meaning you can’t do anything that involves credit payment. This can ruin your credit score for the rest of your life! The IRS can also place liens on your house, making it impossible to sell or renovate. Eventually, these liens turn into seizures, and the IRS sells your property in order to pay off the tax debt.
Wage Garnishment – This is my personal favorite, and probably the most effective. The IRS will contact your employer and start taking a percentage of your check in order to pay off the debt. They can legally take out up to 80%, and a good IRS Hitman will take as much as he can.
Here’s What to Do: File your taxes! Even if you owe money, and you have to file an extension, make sure you file. The IRS can put you in jail if you don’t file, and the penalties are up to $50,000 per year not filed. If you know you’re not going to file on time, file for an extension. Contact with the IRS is extremely important. The IRS is not the collection agency to mess with.
Going at it Alone: An IRS debt can be a terrible situation. As an IRS Hitman, I know how brutal they can be. If you’re in a rough spot, and you’re losing hope, contact a tax professional. They have the knowledge and experience needed to get the IRS off your back.
Now you have the smoking gun…Use it!
THAT AIN'T TRUE!
Here you go. I expect you to use this, mostly on forums, when somebody says something completely incorrect. Like, let's say UGAFan4Lyfe says "Stafford is the best QB in the SEC," you post this.
I believe this line was the most underrated of Mike Gundy's rant. Use it at will.
I believe this line was the most underrated of Mike Gundy's rant. Use it at will.
Revisiting 2006 CGVRs
In January of 2007, at my original Tennessee blog, I outlined the teams from 2006 that fell under the CGVR (Close Game Variance Ratio) parameters. CGVR is just the tool Phil Steele came up with years ago, but with a fancy name and specifically revisited every year. If you're new to CGVR, here's the deal: Mr. Steele found some strong statistical correlations between teams that either won or lost many close games and their record the next season. A close game is defined as any game that ends within one possession on the scoreboard (thus, 8 points). So if a team wins 3 close games and loses 1 close game, that team's CGVR is +2. Steele found that the correlations become strong at +2 and above and -2 and below. Teams with +2 or more cannot be expected to improve their record the next season, whereas teams with -2 or worse cannot be expected to regress the next season. Make sense? Good. Here are the 2006 CGVRs, the expectation, the 2007 record, and if the CGVR got it right.
As you can see, Phil Steele's theory continued to be accurate. Twenty of the 28 teams that qualified did not improve their records, which is 71.4%. Also, every single team with a CGVR of +4 or more had worse records the next year, with over 2 less wins than in 2006.
Onto the other side of the coin.
Again, the theory holds water. Twenty-two of 27 qualified teams fit the mold. Overall, 42 of 55 teams that qualified somewhere within the parameters set my Phil Steele did what Steele predicted. That's 76.4% of the teams from last year - but people will still blow these facts off.
Coming later this week is the list of 2007 CGVR qualifiers.
| Team | 2006 CGVR | 2006 Record | Expect | 2007 Record | Correct? |
|---|---|---|---|---|---|
| Wake Forest | +5 | 11-3 |  | 9-4 |  |
| Auburn | +5 | 11-2 | | 9-4 | |
| Florida | +5 | 13-1 | | 9-4 | |
| Maryland | +5 | 9-4 | | 6-7 | |
| Oregon State | +4 | 10-4 | | 9-4 | |
| Rice | +4 | 7-6 | | 3-9 | |
| Boise State | +4 | 13-0 | | 10-3 | |
| Iowa State | +4 | 4-8 | | 3-9 | |
| Arkansas State | +4 | 6-6 | | 5-7 | |
| Kansas State | +3 | 7-6 | | 5-7 | |
| Texas Tech | +3 | 8-5 | | 9-4 |  |
| Wisconsin | +3 | 12-1 | | 9-4 | |
| Notre Dame | +3 | 10-3 | | 3-9 | |
| Ohio | +3 | 9-5 | | 6-6 | |
| Troy | +3 | 8-5 | | 8-4 | |
| Boston College | +2 | 10-3 | | 11-3 | |
| Texas A&M | +2 | 9-4 | | 7-6 | |
| LSU | +2 | 11-2 | | 12-2 | |
| Tennessee | +2 | 9-4 | | 10-4 | |
| Georgia | +2 | 9-4 | | 11-2 | |
| Kentucky | +2 | 8-5 | | 8-5 | |
| Ohio State | +2 | 12-1 | | 11-2 | |
| Purdue | +2 | 8-6 | | 8-5 | |
| Rutgers | +2 | 11-2 | | 8-5 | |
| Cincinnati | +2 | 8-5 | | 10-3 | |
| Southern Miss | +2 | 9-5 | | 7-6 | |
| Idaho | +2 | 4-8 | | 1-11 | |
| Lousiana-Lafayette | +2 | 6-6 | | 3-9 | |
As you can see, Phil Steele's theory continued to be accurate. Twenty of the 28 teams that qualified did not improve their records, which is 71.4%. Also, every single team with a CGVR of +4 or more had worse records the next year, with over 2 less wins than in 2006.
Onto the other side of the coin.
| Team | 2006 CGVR | 2006 Record | Expect | 2007 Record | Correct? |
|---|---|---|---|---|---|
| North Carolina State | -5 | 3-9 |  | 5-7 | |
| Memphis | -5 | 2-10 | | 7-6 | |
| Eastern Michigan | -5 | 1-11 | | 4-8 | |
| Florida International | -5 | 0-12 | | 1-11 | |
| Louisiana-Monroe | -5 | 4-8 | | 6-6 | |
| New Mexico State | -4 | 4-8 | | 4-9 | |
| Colorado | -4 | 2-10 | | 6-7 | |
| Duke | -3 | 0-12 | | 1-11 | |
| Missouri | -3 | 8-5 | | 12-2 | |
| Oklahoma State | -3 | 7-6 | | 7-6 | |
| Vanderbilt | -3 | 4-8 | | 5-7 | |
| Michigan State | -3 | 4-8 | | 7-6 | |
| Illinois | -3 | 2-10 | | 9-4 | |
| Air Force | -3 | 4-8 | | 9-4 | |
| UAB | -3 | 3-9 | | 2-10 | |
| Miami (OH) | -3 | 2-10 | | 6-7 | |
| Clemson | -2 | 8-5 | | 9-4 | |
| Florida State | -2 | 7-6 | | 7-6 | |
| Alabama | -2 | 6-7 | | 7-6 | |
| Mississippi State | -2 | 3-9 | | 8-5 | |
| Iowa | -2 | 6-7 | | 6-6 | |
| Minnesota | -2 | 6-7 | | 1-11 | |
| San Diego State | -2 | 3-9 | | 4-8 | |
| UNLV | -2 | 2-10 | | 2-10 | |
| Houston | -2 | 10-4 | | 8-5 | |
| Nevada | -2 | 8-5 | | 6-7 | |
| North Texas | -2 | 2-10 | | 2-10 | |
Again, the theory holds water. Twenty-two of 27 qualified teams fit the mold. Overall, 42 of 55 teams that qualified somewhere within the parameters set my Phil Steele did what Steele predicted. That's 76.4% of the teams from last year - but people will still blow these facts off.
Coming later this week is the list of 2007 CGVR qualifiers.
Subscribe to:
Comments (Atom)