Not ready for taxes? File an extension

Here is a link on information for individuals for filing an extension.

It's super easy.

If you think you'll owe money, send in some money. If you don't owe that much, you'll get it refunded. It's better than paying penalties.

If you think you'll owe CA as well, here's there extension form. I don't have the informaiton for other states.

http://www.taxbrain.com/taxcenter/extensions/downloads/2009/ext_ca.pdf

You only need to file the CA extension if you think owe CA money.
Otherwise it's automatic when you file your federal extension.

If you think you owe no money, put down zeroes on the extension form
along with your name, address, and social and send it in. You don't
even have to sign, it's that easy.

Extensions must be postmarked by April 15. Send certified to prove
you filed it in case the IRS / Post Office looses the form. (It's
rare, but it happens. Don't ask me how I know)

Banking: Going Green?

I've been poking around a little about banks and banking relationships. This morning I found this article which is all about Citigroup. This site has good information about banks, where they invest, and what kinds of practices they hold as well as information about sustainable banking.

Have a read and let me know what you think!

Finding The Forms You Need

You know how at the end of the year you're working on those pesky 1099 forms but find that you don't have the contractor's social security number or tax identification number?

Very small companies and companies that use a lot of independent contractors need to use for W-9 get tax ID information from their contractors. It's a simple form to have your contractors fill out bfore they start working with you.

You can find that form here. (Note: This will change in future years.)

You can search www.irs.gov for IRS forms or pulications. They are generally available online.

Now you know, so no excuses!

6 Ways to Take Money Out of Corporation

One of the bigest confusions I see in corporate bookkeeping is how you can take money out of the corporation. So I've complied a very basic list for us to refer to.

(1) Repayment of a loan to the corporation. This is not taxable to the stockholder. The stockholder should have reported interest earned and the corporation should have taken an interest expense deduction.

(2) As dividends paid by the corporation. Dividends are profits split among the shareholders proportional to the number of shares each stockholder owns. For example, a company has $100 to pay in dividends, if one stockholder owns 40% of the stock, he should receive 40% of the dividends or $40. See dividends for more information on them.

(3) By selling some of his stock back to the corporation. This becomes Treasury Stock to the corporation (as opposed to Common Stock) and is not taxable to the sharehold if he receives the same amount per share as the amount per share for which he originally bought the stock.

(4) As salary. The salary amounts are not dependent upon the number of shares owned. For example, if two shareholders each owns 50% of the outstanding stock, it is not necessary that each get identical salaries. Bonus payments would also fall under this category. This is taxable as payroll and the corporation must pay liabilities on the amounts paid.

(5) Theft or embezzlement. This is taxable to the shareholder as he is caught.

(6) As a loan from the corporation. In this case there should have been loan documents drawn up and signed by both the stockholder and a corporate officer. The corporation will record periodic interest earned and the stockholder may be able to take interest paid as a tax deduction.

There's abunch of other things that people think they can take out of a corporation, but they can't. Partner "draws" are one of those things.

Reimbursements are not wages or money taken out, they are corporate expenses being paid in advance by an individual. So the reibrusement is not taxable and does not fall into this category.

Please note: this is a beginning only. This does not create a reliance of any kind.

Tax Payer Advocacy

One of the many things that most people don't know about the IRS.

Taxpayer Advocate Service is an organization that that helps tax payers get help paying their back taxes, settle issues with the IRS and helps them get help with there is a financial hardship regarding those taxes.

From the site:
"Our mission in the Taxpayer Advocate Service reaches beyond individual cases and extends into the realm of Systemic Advocacy. The role of Systemic Advocacy is evident in the TAS mission statement: "As an independent organization within the IRS, we help taxpayers resolve problems within the IRS and recommend changes that will prevent the problems." This means we try to repair systemic flaws in the IRS and the tax code, which can cause trouble for taxpayers and IRS employees alike."

Interesting, isn't it?

The Cure for Money Madness

I keep hearing great things aboutThe Cure for Money Madness: Break Your Bad Money Habits, Live Without Financial Stress--and Make More Money!. He works with my financial coach and you can learn about his work here.

If you read this, do let me know. I'm interested in what people, especially my clients think of it. And I'll get to it, but not until after tax season!

Inoculations of Hope

In the pre-Obama world a lot of people working for peace and justice on the left had a lot of fear, doubt, pain and anger about the possibilities of change. But even in that place, one of my favorite resources has been Rob Bresnzy and his book Pronoia: The Antidote for Paranoia. Well today I found his blog.

It has a lot of things that are really right in the world. If you need a dose of hope, check it out.

Money and Food - Is it True we Don't Have Enough?

I only get two physical magazine subscriptions these days. One of them is National Geographic and the other one is Yes Magazine. Their tag line used to be something like "the magazine of positive futures". And I loved that - I was inspired to pick it up at the US Social forum back in 2007. They've changed the tag line, but not their style. They have a national and global look at what's going right in activism and movements and how you can connect and get involved locally with making a difference. Making a difference and watching others make a difference is inspiring.

I am into food security activism (which is not about using guns to secure food but rather to make sure that people have enough to eat) and this month they have a great article on Belo Horizonte, Brazil. They have implemented a food for all policy making sure their people are fed which includes many methods: from using public space for farming and that food being sold below market cost, to People's Restaurants where whole good foods are sold cheaply to feeding children in nursery schools 3 meals a day. It's brilliant.

They reduced their hunger and child mortality rates dramatically in just a couple of years (which is one measure of nutrition). And they do it all for about a penny a day per person. Holy cow!

I love this work. Frances More Lappe, who wrote the article also founded Food First and wrote "Diet for a Small Planet."

If you know or want to know nothing else about food security activism, I encourage everyone to read the 12 Myths About Hunger. It explains the difference between the hunger issue and the policy issues. I believe that all humans deserve to eat food every day as a right of being alive and this piece of writing was one of my great inspirations for that belief. Hunger is a matter of policy not food quantity and that made it clear to me that scarcity really is all about how we think about it. Go read! And tell me what you think!

Free Payroll Seminars in California

The Employment Development Department teaches free payroll seminars on various topics. 

This is a great place to go and get more information or get your questions answered about topics like federal and state payroll, state labor laws, and whether that person working for you is an employee or a contractor. And they are all free.

Right now it looks like they only have one that is web-based, but that's a start.

Something Simple: Pre-made Spreadsheets

I've just run across the most comprehensive list of tracking, budgeting and financial spreadsheets I've seen on the internet. There are both free and more elaborate paid spreadsheets on a myriad topics.

Go see it here.

Think and Grow Rich - free!

I found out recently the Napolean Hill's "Think and Grow Rich" is public domain so you can get it for free electronically.

One place you can download it is here

Enjoy!

Small Business Administration Deals Blow to Women-Owned Businesses

Since many of my clients are small business owners, those who want to be or those who have been (with small business are those with less than 500 hundred employees) I thought this would be of interest.

One of the findings of the SBA has been that even though women-owned business make up 30% of small businesses they receive only 3.4% of the federal contracts. That's not a big surprise for many reasons. It's still not an equitable playing field for women and minorities.

What is a surprise or a sadness really is that the SBA would try to get rid of legislation that supports equalizing the playing field and supporting all people in running successful businesses. Especially in this economic climate where the government is encouraging spending to increase liquidity in the banking and monetary systems.

You can read more about it here