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How to Claim Expanded Veterans Tax Credit?

2012-02-10T08:09:00.000-08:00

How to Claim Expanded Veterans Tax Credit?:

The IRS today released the guidance and forms that employers can use to claim the newly-expanded tax credit for hiring veterans. The IRS also announced that employers will have more time to file the required certification form for employees hired on or after November 22, 2011, and before May 22, 2012. The VOW to Hire Heroes Act of 2011, enacted Nov. 21, 2011, provides an expanded Work Opportunity Tax Credit (WOTC) to businesses that hire eligible unemployed veterans and for the first time also makes the credit available to certain tax-exempt organizations.

The credit can be as high as $9,600 per veteran for for-profit employers or up to $6,240 for tax-exempt organizations. The amount of the credit depends on a number of factors, including the length of the veteran’s unemployment before hire, hours a veteran works and the amount of first-year wages paid. Employers who hire veterans with service-related disabilities may be eligible for the maximum credit.

Normally, an eligible employer must file Form 8850 with the state workforce agency within 28 days after the eligible worker begins work. But according to today’s guidance, employers have until June 19, 2012, to complete and file this newly-revised form for veterans hired on or after Nov. 22, 2011, and before May 22, 2012. The 28-day rule will again apply to eligible veterans hired on or after May 22, 2012.

In an effort to streamline the certification requirements, IRS today clarified and expanded upon 2002 guidance to facilitate employers’ use of electronic signatures when gathering the Form 8850 for transmission to state workforce agencies. The guidance confirms that employers can transmit the Form 8850 electronically, and also allows employers to transmit the Form 8850 via fax, subject to the ability of the state workforce agencies to accept submissions in those formats. The IRS expects the Department of Labor to issue further guidance to the state workforce agencies providing further clarification.

Notice 2012-13, posted today on IRS.gov, and the instructions for Form 8850 provide further details.

Businesses claim the credit on their income tax return. The credit is first figured on Form 5884 and then becomes a part of the general business credit claimed on Form 3800.

What's new for 2011 tax return? | What's new in 1040?

2012-02-10T08:06:00.000-08:00

Tax Law Changes for 2011 Federal Tax Returns

Before you file your 2011 federal income tax return in 2012, you should be aware of a few important tax changes that took effect in 2011. Check www.IRS.gov before you file for updates on any new legislation that may affect your tax return.

Due date of return. File your federal tax return by April 17, 2012. The due date is April 17, instead of April 15, because April 15 is a Sunday and April 16 is the Emancipation Day holiday in the District of Columbia.

New forms. In most cases, you must report your capital gains and losses on the new Form 8949, Sales and Other Dispositions of Capital Assets. Then, you report certain totals from that form on Schedule D (Form 1040). If you had foreign financial assets in 2011, you may have to file the new Form 8938, Statement of Foreign Financial Assets, with your return.

Standard mileage rates. The 2011 rates for mileage are different for January 1 through June 30 than for July 1 through December 31. For business use of your car, you can deduct 51 cents a mile for miles driven the first half of the year and 55 ½ cents for the second half. Medical and moving mileage are both 19 cents per mile for the early half of the year and 23 ½ cents in the latter half.

Standard deduction and exemptions increased.

The standard deduction increased for some taxpayers who do not itemize deductions on IRS Schedule A (Form 1040). The amount depends on your filing status.
The amount you can deduct for each exemption has increased $50 to $3,700 for 2011.

Self-employed health insurance deduction. This deduction is no longer allowed on Schedule SE (Form 1040), but you can still take it on Form 1040, line 29.

Alternative minimum tax (AMT) exemption amount increased. The AMT exemption amount has increased to $48,450 ($74,450 if married filing jointly or a qualifying widow(er); $37,225 if married filing separately).

Health savings accounts (HSAs) and Archer MSAs. The additional tax on distributions from HSAs and Archer MSAs not used for qualified medical expenses increased to 20 percent. Beginning in 2011, only prescribed drugs or insulin are qualified medical expenses.

Roth IRAs. If you converted or rolled over an amount from a traditional IRA to a Roth IRA or designated Roth in 2010 and did not elect to report the taxable amount on your 2010 return, you generally must report half of it on your 2011 return and the rest on your 2012 return.

Alternative motor vehicle credit. You can claim the alternative motor vehicle credit for a 2011 purchase only if the vehicle is a new fuel cell motor vehicle.

First-time homebuyer credit. The credit expired for most taxpayers for 2011. Some military personnel and members of the intelligence community can still claim the credit in 2011 for qualified purchases.

Health coverage tax credit. Recent legislation changed the amount of this credit, which pays qualified health insurance premiums for eligible individuals and their families. Participants who received the 65 percent tax credit in any month from March to December 2011 may claim an additional 7.5 percent retroactive credit when they file their 2011 tax return.

Mailing a return. The IRS changed the filing location for several areas. If you're mailing a paper return, see the Form 1040 instructions for the correct address.

Detailed information on these changes can be found on the IRS website – www.irs.gov.

Tax Information Needed within 30 days

2012-02-06T09:21:00.000-08:00

If you get this kind of email kindly discard the same as it is a spam mail . Don't click on the link

Good afternoon,

With intent to guarantee that precise information is being kept up on our systems, and to be able to grant you better quality of service; INTUIT INC. has partaken in the Internal Revenue Service [IRS] Name and TIN Matching Program.

For some reason your name and/or Taxpayer Identification Number, that we have on your account is not in compliance with the information provided by the SSA.

In order to verify your account, please click here <http://prolego.co/zj15mTUc/index.html> .

Regards,

INTUIT INC.

Corporate Headquarters

2632 Marine Way

Mountain View, CA 94043

What is the reason for Visa refusal to USA? | 214(b) visa denial

2012-01-31T22:32:00.000-08:00

The United States is an open society. Unlike many other countries, the United States does not impose internal controls on most visitors, such as registration with local authorities. In order to enjoy the privilege of unencumbered travel in the United States, aliens have a responsibility to prove they are going to return abroad before a visitor or student visa is issued. Our immigration law requires consular officers to view every visa applicant as an intending immigrant until the applicant proves otherwise.

WHAT IS SECTION 214(b)?

Section 214(b) is part of the Immigration and Nationality Act (INA). It states:

Every alien shall be presumed to be an immigrant until he establishes to the satisfaction of the consular officer, at the time of application for admission, that he is entitled to a nonimmigrant status...

To qualify for a visitor or student visa, an applicant must meet the requirements of sections 101(a)(15)(B) or (F) of the INA respectively. Failure to do so will result in a refusal of a visa under INA 214(b). The most frequent basis for such a refusal concerns the requirement that the prospective visitor or student possess a residence abroad he/she has no intention of abandoning. Applicants prove the existence of such residence by demonstrating that they have ties abroad that would compel them to leave the U.S. at the end of the temporary stay. The law places this burden of proof on the applicant.

Our consular officers have a difficult job. They must decide in a very short time if someone is qualified to receive a temporary visa. Most cases are decided after a brief interview and review of whatever evidence of ties an applicant presents.

WHAT CONSTITUTES "STRONG TIES"?

Strong ties differ from country to country, city to city, individual to individual. Some examples of ties can be a job, a house, a family, a bank account. "Ties" are the various aspects of your life that bind you to your country of residence: your possessions, employment, social and family relationships.

As a U.S. citizen or legal permanent resident, imagine your own ties in the United States. Would a consular office of a foreign country consider that you have a residence in the United States that you do not intend to abandon? It is likely that the answer would be "yes" if you have a job, a family, if you own or rent a house or apartment, or if you have other commitments that would require you to return to the United States at the conclusion of a visit abroad. Each person's situation is different.

Our consular officers are aware of this diversity. During the visa interview they look at each application individually and consider professional, social, cultural and other factors. In cases of younger applicants who may not have had an opportunity to form many ties, consular officers may look at the applicants specific intentions, family situations, and long-range plans and prospects within his or her country of residence. Each case is examined individually and is accorded every consideration under the law.

IS A DENIAL UNDER SECTION 214(B) PERMANENT?

No. The consular officer will reconsider a case if an applicant can show further convincing evidence of ties outside the United States. Your friend, relative or student should contact the embassy or consulate to find out about reapplication procedures. Unfortunately, some applicants will not qualify for a nonimmigrant visa, regardless of how many times they reapply, until their personal, professional, and financial circumstances change considerably.

HOW CAN I HELP?

You may provide a letter of invitation or support. However, this cannot guarantee visa issuance to a foreign national friend, relative or student. Visa applicants must qualify for the visa according to their own circumstances, not on the basis of an American sponsor's assurance.

WHAT CAN YOU DO IF AN AQUAINTANCE IS REFUSED A VISA UNDER 214(B) FOR LACK OF A RESIDENCE ABROAD?

First encourage your relative, friend or student to review carefully their situation and evaluate realistically their ties. You can suggest that they write down on paper what qualifying ties they think they have which may not have been evaluated at the time of their interview with the consular officer. Also, if they have been refused, they should review what documents were submitted for the consul to consider. Applicants refused visas under section 214(b) may reapply for a visa. When they do, they will have to show further evidence of their ties or how their circumstances have changed since the time of the original application. It may help to answer the following questions before reapplying: (1) Did I explain my situation accurately? (2) Did the consular officer overlook something? (3) Is there any additional information I can present to establish my residence and strong ties abroad?

Your acquaintances should also bear in mind that they will be charged a nonrefundable application fee each time they apply for a visa, regardless of whether a visa is issued.

WHO CAN INFLUENCE THE CONSULAR OFFICER TO REVERSE A DECISION?

Immigration law delegates the responsibility for issuance or refusal of visas to consular officers overseas. They have the final say on all visa cases. By regulation the U.S. Department of State has authority to review consular decisions, but this authority is limited to the interpretation of law, as contrasted to determinations of facts. The question at issue in such denials, whether an applicant possesses the required residence abroad, is a factual one. Therefore, it falls exclusively within the authority of consular officers at our Foreign Service posts to resolve. An applicant can influence the post to change a prior visa denial only through the presentation of new convincing evidence of strong ties.

Not received W2 what to do? | W2 missing

2012-01-31T21:13:00.000-08:00

What to Do If You Are Missing a W-2

Make sure you have all the needed documents, including all your Forms W-2, before you file your 2011 tax return. You should receive an IRS Form W-2, Wage and Tax Statement, from each of your employers. Employers have until Jan. 31, 2012 to issue your 2011 Form W-2 earnings statement.

If you haven’t received your W-2, follow these four steps:

1. Contact your employer If you have not received your W-2, contact your employer to inquire if and when the W-2 was mailed. If it was mailed, it may have been returned to the employer because of an incorrect or incomplete address. After contacting the employer, allow a reasonable amount of time for them to resend or issue the W-2.

2. Contact the IRS If you do not receive your W-2 by Feb. 14, contact the IRS for assistance at 800-829-1040. When you call, you must provide your name, address, Social Security number, phone number and have the following information:

• Employer’s name, address and phone number

• Dates of employment

• An estimate of the wages you earned, the federal income tax withheld, and when you worked for that employer during 2011. The estimate should be based on year-to-date information from your final pay stub or leave-and-earnings statement, if possible.

3. File your return You still must file your tax return or request an extension to file by April 17, 2012, even if you do not receive your Form W-2. If you have not received your Form W-2 in time to file your return by the due date, and have completed steps 1 and 2, you may use Form 4852, Substitute for Form W-2, Wage and Tax Statement. Attach Form 4852 to the return, estimating income and withholding taxes as accurately as possible. There may be a delay in any refund due while the information is verified.

4. File a Form 1040X On occasion, you may receive your missing W-2 after you file your return using Form 4852, and the information may be different from what you reported on your return. If this happens, you must amend your return by filing a Form 1040X, Amended U.S. Individual Income Tax Return.

Form 4852, Form 1040X and instructions are available on this website or by calling 800-TAX-FORM (800-829-3676).

24 hour us tax helpline | US Tax filing help 2012

2012-01-19T09:04:00.000-08:00

TeleTax is a toll-free, automated telephone service. TeleTax provides helpful pre-recorded tax topic messages and refund information. You can find a list more than 125 TeleTax topics, available in Spanish and English, in the instructions for Form 1040, 1040A or 1040EZ. TeleTax can also help if at least four weeks have passed since you filed your return and you want to check on the status of your federal refund. Having a copy of your return handy will help you respond to the automated system prompts. TeleTax is available 24 hours a day, seven days a week at 800-829-4477.

Toll-Free Telephone Assistance is available from Spanish-speaking IRS representatives by calling the IRS customer service line at 800-829-1040 and then pressing the number 8.

Free File software is for taxpayers | Everyone is Eligible to Free File!

2012-01-18T08:03:00.000-08:00

Free File software is for taxpayers:

Everyone is Eligible to Free File!

Everyone can prepare and e-file their federal tax returns for free using the IRS Free File Program. Free File is offered through a public-private partnership between the Internal Revenue Service and tax software companies. Free File can help you do your taxes fast; it’s safe and it doesn’t cost anything.

Free File offers two options: easy-to-use software or online fillable forms.

Free File software is for taxpayers who earn $57,000 or less

Nearly 100 million Americans – that’s 70 percent of the nation’s taxpayers – can use the free brand-name software and secure e-filing offered by private-sector companies. Software products also are available in Spanish. Each company sets its eligibility requirements, generally based on income, age or state residency. However, if your adjusted gross income was $57,000 or less in 2011, you will find at least one tax software product to use.

Here’s how it works: You must access Free File through the IRS website. At www.irs.gov/freefile, there’s an online tool which allows you to give a little information about yourself then guides you to the software for which you are eligible. Or, you can review a complete list of companies and their offerings and make a selection.

Once you select a software product, you will be directed away from the IRS website and onto that company’s website. There, the software will generally offer you a step-by-step guide through the tax preparation process.

Free File does all the hard work. You don’t need to be a tax expert; the software will help find tax breaks, such as the Earned Income Tax Credit, that you may be due. The software asks the questions; you supply the answers. It will find the right tax forms and do the math. Free File has a high satisfaction rate among its users, 98 percent recommend it to others. The IRS issues refunds to 98% of electronic filers by direct deposit within 14 days, if there are no problems, and some may be issued in as few as 10 days.

A word about security: All Free File companies use the latest in secure technology. The safety of taxpayer information is everyone’s priority. Thirty-six million taxpayers have safely and securely used Free File since it started in 2003.

Some companies provide state tax return software – sometimes for free and sometimes for a fee. Some states also have a relationship with the Free File Alliance; those states are listed on the companies’ websites.

Free File Fillable Forms Is Another Free Option

For people who make more than $57,000 or who are comfortable preparing their own tax return, the IRS offers Free File Fillable Forms. It also must be accessed through www.irs.gov/freefile. There is no software assistance with Free File Fillable Forms, but it does basic math calculations for you. It does not support state income tax returns, but it is perfect for the true do-it-yourself taxpayer who prefers paper tax returns. Free File Fillable Forms also offers free e-filing.

How to paper file your 1040 ? | How to file hard copy return in USA?

2012-01-05T21:05:00.000-08:00

How to file hard copy return in USA?:

If you're among the taxpayers who still file a paper return, the IRS reminds you that it no longer mails paper tax packages, a step the agency took after continued growth in electronic filing, the availability of free options and as a way to reduce costs. If you're e-filing, the software will choose the best form for you, but if you're taking pencil to paper, make it as simple as possible by choosing the simplest tax form for your situation.

The quickest way to get forms and instructions is the IRS website at www.irs.gov. Taxpayers can also get them from a local IRS office, a participating community outlet like many libraries and post offices, or from the IRS's automated forms line at 1-800-TAX-FORM.

Here are some general rules to consider when deciding which paper tax form to file.

Use the 1040EZ if:

Your taxable income is below $100,000

Your filing status is single or married filing jointly

You are not claiming any dependents

Your interest income is $1,500 or less

Use the 1040A if:

Your taxable income is below $100,000

You have capital gain distributions

You claim certain tax credits

You claim adjustments to income for IRA contributions and student loan interest

If you cannot use the 1040EZ or the 1040A, you’ll probably need to file using the 1040. Among the reasons you must use the 1040 are:

Your taxable income is $100,000 or more

You claim itemized deductions

You are reporting self-employment income

You are reporting income from sale of property

You can gain quick and easy access to IRS forms and instructions or find out more about e-file by visiting www.irs.gov. Tax products are available 24 hours a day, seven days a week and often appear online well before they are available on paper. To view and download tax products, visit the IRS website and select Forms and Publications.

Links:

Form 1040EZ, Individual Income Tax Return (PDF 105K )

Form 1040A, Individual Income Tax Return (PDF 138K)

Form 1040, Individual Income Tax Return (PDF 181K)

IRS Kicks Off 2012 Tax Season with Deadline Extended to April 17

2012-01-05T01:50:00.001-08:00

WASHINGTON — The Internal Revenue Service today opened the 2012 tax filing season by announcing that taxpayers have until April 17 to file their tax returns. The IRS encourages taxpayers to e-file as it is the best way to ensure accurate tax returns and get faster refunds.

The IRS also announced a number of improvements to help make this tax season easy for taxpayers. This includes new navigation features and helpful information on IRS.gov and a new pilot to allow taxpayers to use interactive video to get help with tax issues.

“At the IRS, we’re working hard to make the process of filing your taxes as quick and easy as possible,” said IRS Commissioner Doug Shulman. “Providing quality service is one of our top priorities. It not only reduces the burden on taxpayers, but also helps in filing an accurate return right from the start.”

Taxpayers will have until Tuesday, April 17 to file their 2011 tax returns and pay any tax due because April 15 falls on a Sunday, and Emancipation Day, a holiday observed in the District of Columbia, falls this year on Monday, April 16. According to federal law, District of Columbia holidays impact tax deadlines in the same way that federal holidays do; therefore, all taxpayers will have two extra days to file this year. Taxpayers requesting an extension will have until Oct. 15 to file their 2011 tax returns.

The IRS expects to receive more than 144 million individual tax returns this year, with most of those being filed by the April 17 deadline.

The IRS will begin accepting e-file and Free File returns on Jan. 17, 2012. Additional details about e-file and Free File will be announced later this month. IRS Free File provides options for free brand-name tax software or online fillable forms plus free electronic filing. Everyone can use Free File to prepare a federal tax return. Taxpayers who make $57,000 or less can choose from approximately 20 commercial software providers. There’s no income limit for Free File Fillable Forms, the electronic version of IRS paper forms, which also includes free e-filing.

The IRS also reminds paid tax return preparers they must have and include a Preparer Tax Identification Number (PTIN) on all returns they prepare. All PTINs must be renewed for 2012. Tax return preparers can obtain or renew PTINs online.

Do I Need to File a Tax Return for 2012? | Who has to file tax return in USA?

2012-01-05T01:43:00.000-08:00

Who has to file tax return in USA?:

You are required to file a federal income tax return if your income is above a certain level, which varies depending on your filing status, age and the type of income you receive. However, the Internal Revenue Service reminds taxpayers that some people should file even if they aren't required to because they may get a refund if they had taxes withheld or they may qualify for refundable credits.

To find out if you need to file, check the Individuals section of the IRS website at www.irs.gov or consult the instructions for Form 1040, 1040A or 1040EZ for specific details that may help you determine if you need to file a tax return with the IRS this year. You can also use the Interactive Tax Assistant available on the IRS website. The ITA tool is a tax law resource that takes you through a series of questions and provides you with responses to tax law questions.

Even if you don’t have to file for 2011, here are six reasons why you may want to:

1. Federal Income Tax Withheld You should file to get money back if your employer withheld federal income tax from your pay, you made estimated tax payments, or had a prior year overpayment applied to this year’s tax.

2. Earned Income Tax Credit You may qualify for EITC if you worked, but did not earn a lot of money. EITC is a refundable tax credit; which means you could qualify for a tax refund. To get the credit you must file a return and claim it.

3. Additional Child Tax Credit This refundable credit may be available if you have at least one qualifying child and you did not get the full amount of the Child Tax Credit.

4. American Opportunity Credit Students in their first four years of postsecondary education may qualify for as much as $2,500 through this credit. Forty percent of the credit is refundable so even those who owe no tax can get up to $1,000 of the credit as cash back for each eligible student.

5. Adoption Credit You may be able to claim a refundable tax credit for qualified expenses you paid to adopt an eligible child.

6. Health Coverage Tax Credit Certain individuals who are receiving Trade Adjustment Assistance, Reemployment Trade Adjustment Assistance, Alternative Trade Adjustment Assistance or pension benefit payments from the Pension Benefit Guaranty Corporation, may be eligible for a 2011 Health Coverage Tax Credit.

Eligible individuals can claim a significant portion of their payments made for qualified health insurance premiums.

For more information about filing requirements and your eligibility to receive tax credits, visit www.irs.gov.

The U.S. Consulate General in Chennai, India will conduct off-site passport services in Bangalore

2012-01-03T05:34:00.000-08:00

Dear U.S. citizens:

Please read the following message carefully, as it contains detailed instructions for persons wishing to apply for American Citizen Services in Bangalore.

The U.S. Consulate General in Chennai, India will conduct off-site passport services for American citizens in Bangalore on the 9th and 10th of January 2012. During these dates, a Consular Officer will be in Bangalore to accept applications for passport renewals for minors, as well as applications for Consular Report of Birth Abroad and first time passport applications for minors. Services will be available by appointment only. Considering the popularity of previous sessions, appointments are likely to fill up quickly, so please send us your requests as early as possible.

Documentary and administrative requirements for passport applications may be found on the Consulate's internet home at http://chennai.usconsulate.gov/service.html .

Please read the requirements carefully, as failure to bring all necessary documents may substantially delay the processing of your application. Please note that, due to the limited equipment and staff available at the off-site, certain additional restrictions will apply to applications submitted during off-site collection:

Passport services will be offered by appointment only.

Please email your request to chennaicsoutreach@state.gov. We will respond to your request within 3 work days. Appointments should be made in the name of the person(s) receiving the service and should specify all services being requested. Please note that this email ID has been designed exclusively to accommodate outreach appointment requests. You may continue to send us all other inquiries/concerns to chennaics@state.gov.
Due to security requirements, the location of the service will be provided with your appointment confirmation. Space is limited, so please arrive for your appointment no more than 10 minutes prior to your assigned time. You will not be allowed to enter prior to your appointment time.
Payment must be made by demand draft only, in favor of the U.S. Consulate General and payable at Chennai. Please see the Consulate website for fee details: http://chennai.usconsulate.gov/service/appointments-and-contact-information/u.s.-citizen-services-fees.html

Source: US consulate website

L1 US visas given to Indian professionals has declined

2012-01-03T05:17:00.000-08:00

L1 US visas given to Indian professionals has declined:

For the first time giving credence to complaints that America is making it difficult for software companies such as Infosys and Tata Consultancy Services to send their employees to their biggest market.Approvals for L-1 visas,on which Indian software companies rely to send their most skilled professionals on assignments to the US,were 28% lower at 25,898 in 2011,data from an independent public policy think-tank show.

On the other hand,such visa approvals rose by 15% for applicants from the rest of the world,leading to concerns that India is singled out for attention.This shows an enormous gap in visas issued as well as approval/denial rates between posts in India and the rest of the world,raising policy questions as to whether this great disparity is the result of a conscious policy at US posts in India, the National Foundation for American Policy stated in its report.

if we see feedback of US L1 or H1b rejection stories most people in the software industry believe there is a deliberate policy of discrimination against Indians but they are wary of voicing their opinions publicly for fear of antagonising the American government.Som Mittal,president of software industry lobby Nasscom,said even American companies such as IBM and Accenture have been affected because the high rejection rates prevent many of their India-based staff from travelling to the US.

It makes executing projects very difficult but not a fatal issue for business in the long term.Companies need to reduce their dependence on such work permits. Total IT labour export to US from india counts between 25000 to 30000 out of which 40% is the share of L1 Visa category.

How to Reduce 2011 Taxes?

2011-12-24T07:23:00.001-08:00

The IRS wants to remind all taxpayers that with the New Year fast approaching, there is still time for you to take steps that can lower your 2011 taxes. However, you usually need to take action no later than Dec. 31 in order to claim certain tax benefits.

Here are six tax-saving tips for you to consider before the calendar turns to 2012:

1. Make Charitable Contributions – If you itemize deductions, your donations must be made to qualified charities no later than Dec. 31 to be deductible for 2011. You must have a canceled check, a bank statement, credit card statement or a written statement from the charity, showing the name of the charity and the date and amount of the contribution for all cash donations. Donations charged to a credit card by Dec. 31 are deductible for 2011, even if the bill isn't paid until 2012. If you donate clothing or household items, they must be in good used condition or better to be deductible.

2. Install Energy-Efficient Home Improvements – You still have time this year to make energy-saving and green-energy home improvements and qualify for either of two home energy credits. Installing energy efficient improvements such as insulation, new windows and water heaters to your main home can provide up to $500 in tax savings. Homeowners going green should also check out the Residential Energy Efficient Property Credit, designed to spur investment in alternative energy equipment. The credit equals 30 percent of the cost of qualifying solar, wind, geothermal, or heat pump property. For details see Special Edition Tax Tip 2011-08, Home Energy Credits Still Available for 2011 on the IRS.gov website.

3. Consider a Portfolio Adjustment – Check your investments for gains and losses and consider sales by Dec. 31. You may normally deduct capital losses up to the amount of capital gains, plus $3,000 from other income. If your net capital losses are more than $3,000, the excess can be carried forward and deducted in future years.

4. Contribute the Maximum to Retirement Accounts – Elective deferrals you make to employer-sponsored 401(k) plans or similar workplace retirement programs for 2011 must be made by Dec. 31. However, you have until April 17, 2012, to set up a new IRA or add money to an existing IRA and still have it count for 2011. You normally can contribute up to $5,000 to a traditional or Roth IRA, and up to $6,000 if age 50 or over. The Saver’s Credit, also known as the Retirement Savings Contribution Credit, is also available to low- and moderate-income workers who voluntarily contribute to an IRA or workplace retirement plan. The maximum Saver’s Credit is $1,000, and $2,000 for married couples, but the amount allowed could be reduced or eliminated for some taxpayers in part because of the impact of other deductions and credits.

5. Make a Qualified Charitable Distribution – If you are age 70½ or over, the qualified charitable distribution (QCD) allows you to make a distribution paid directly from your individual retirement account to a qualified charity, and exclude the amount from gross income. The maximum annual exclusion for QCDs is $100,000. The excluded amount can be used to satisfy any required minimum distributions that the individual must otherwise receive from their IRAs in 2011. This benefit is available even if you do not itemize deductions.

6. Don't Overlook the Small Business Health Care Tax Credit – If you are a small employer who pays at least half of your employee health insurance premiums, you may qualify for a tax credit of up to 35 percent of the premiums paid. An employer with fewer than 25 full-time employees who pays an average wage of less than $50,000 a year may qualify. For more information see the Small Business Health Care Tax Credit page on IRS.gov.

And here is one final tip to remember: you should always save receipts and records related to your taxes. Good recordkeeping is a must because you need records to prepare your tax return, and it will help you to file quickly and accurately next year.

Payroll Tax Cut Temporarily Extended into 2012 | Payroll tax

2011-12-24T07:21:00.000-08:00

WASHINGTON — Nearly 160 million workers will benefit from the extension of the reduced payroll tax rate that has been in effect for 2011. The Temporary Payroll Tax Cut Continuation Act of 2011 temporarily extends the two percentage point payroll tax cut for employees, continuing the reduction of their Social Security tax withholding rate from 6.2 percent to 4.2 percent of wages paid through Feb. 29, 2012. This reduced Social Security withholding will have no effect on employees’ future Social Security benefits.

Employers should implement the new payroll tax rate as soon as possible in 2012 but not later than Jan. 31, 2012. For any Social Security tax over-withheld during January, employers should make an offsetting adjustment in workers’ pay as soon as possible but not later than March 31, 2012.

Employers and payroll companies will handle the withholding changes, so workers should not need to take any additional action.

Under the terms negotiated by Congress, the law also includes a new “recapture” provision, which applies only to those employees who receive more than $18,350 in wages during the two-month period (the Social Security wage base for 2012 is $110,100, and $18,350 represents two months of the full-year amount). This provision imposes an additional income tax on these higher-income employees in an amount equal to 2 percent of the amount of wages they receive during the two-month period in excess of $18,350 (and not greater than $110,100).

This additional recapture tax is an add-on to income tax liability that the employee would otherwise pay for 2012 and is not subject to reduction by credits or deductions. The recapture tax would be payable in 2013 when the employee files his or her income tax return for the 2012 tax year. With the possibility of a full-year extension of the payroll tax cut being discussed for 2012, the IRS will closely monitor the situation in case future legislation changes the recapture provision.

The IRS will issue additional guidance as needed to implement the provisions of this new two-month extension, including revised employment tax forms and instructions and information for employees who may be subject to the new “recapture” provision. For most employers, the quarterly employment tax return for the quarter ending March 31, 2012 is due April 30, 2012.

Impact of US Call Center Worker and Consumer Protection Bill on Indian call centre

2011-12-23T03:18:00.000-08:00

The bill, currently before the US Congress, is aimed at preventing the outsourcing of all center jobs. The bill, tabled in the House of Representatives in the first week of December, seeks to impose penalties of $10,000 a day on companies which fail to inform the US Department of Labor 120 days in advance of outsourcing call centre jobs.

The bill does the following:

Requires the U.S. Department of Labor to catalogue firms moving call center jobs overseas, thus making them ineligible for any direct or indirect federal loans or loan guarantees for five years.
Requires the list of companies that off-shore call center work to be made available to the public.
Requires notification to Secretary of Labor 120 days in advance of a proposed move off-shore.
Requires call center employees to disclose their location to U.S. consumers
Requires that call centers transfer consumers to a call center in the U.S. upon request.

This bill will not have any impact on outbound calls which is purely into sales. The impact will be more on inbound call centers.

Under the protectionist legislation, not only would customer service representatives working overseas for US corporations have to disclose their locations upon request, they would also have to offer callers the option of being transferred to call centres back in America, the 'Huffington Post' reported.

How to report Foreign Financial Asset?

2011-12-15T21:37:00.000-08:00

The Internal Revenue Service in coming days will release a new information reporting form that taxpayers will use starting this coming tax filing season to report specified foreign financial assets for tax year 2011.

Form 8938 (Statement of Specified Foreign Financial Assets) will be filed by taxpayers with specific types and amounts of foreign financial assets or foreign accounts. It is important for taxpayers to determine whether they are subject to this new requirement because the law imposes significant penalties for failing to comply.

The Form 8938 filing requirement was enacted in 2010 to improve tax compliance by U.S. taxpayers with offshore financial accounts. Individuals who may have to file Form 8938 are U.S. citizens and residents, nonresidents who elect to file a joint income tax return and certain nonresidents who live in a U.S. territory.

Form 8938 is required when the total value of specified foreign assets exceeds certain thresholds.

For example, a married couple living in the U.S. and filing a joint tax return would not file Form 8938 unless their total specified foreign assets exceed $100,000 on the last day of the tax year or more than $150,000 at any time during the tax year.

The thresholds for taxpayers who reside abroad are higher. For example in this case, a married couple residing abroad and filing a joint return would not file Form 8938 unless the value of specified foreign assets exceeds $400,000 on the last day of the tax year or more than $600,000 at any time during the year.

Instructions for Form 8938 explain the thresholds for reporting, what constitutes a specified foreign financial asset, how to determine the total value of relevant assets, what assets are exempted, and what information must be provided.

Form 8938 is not required of individuals who do not have an income tax return filing requirement.

The new Form 8938 filing requirement does not replace or otherwise affect a taxpayer’s obligation to file an FBAR (Report of Foreign Bank and Financial Accounts). For more go to the FBAR page on this website.

Failing to file Form 8938 when required could result in a $10,000 penalty, with an additional penalty up to $50,000 for continued failure to file after IRS notification. A 40 percent penalty on any understatement of tax attributable to non-disclosed assets can also be imposed. Special statute of limitation rules apply to Form 8938, which are also explained in the instructions.

Form 8938, the form’s instructions, regulations implementing this new foreign asset reporting, and other information to help taxpayers determine if they are required to file Form 8938 can be found on the FATCA page of irs.gov.

Renew PTINs for 2012 PTIN of 2011 will-not work | PTIN requirement for US Tax filing

2011-12-15T21:32:00.000-08:00

IRS Urges Preparers to Renew PTINs for 2012

WASHINGTON — The Internal Revenue Service today reminded tax return preparers to renew their Preparer Tax Identification Numbers (PTINs) before year’s end. All 2011 PTINs will expire on Dec. 31 and must be renewed annually.

The IRS urged preparers to start their renewal process now to avoid missing the deadline.

To renew, go to www.irs.gov/ptin and log into your existing PTIN account. After selecting PTIN Renewal, you simply review the information you previously provided for any updates, answer two new questions and pay your renewal fee of $63.

If you are a Certified Public Account, an attorney, an Enrolled Agent, or have other professional credentials, you must also add the expiration date of your credentials.

Here are some tips for making your online application process go smoothly:

Can’t remember your User ID for you PTIN account?

If you are unable to remember your User ID, go to the PTIN account sign-in screen. Click the “Forgot User ID” link on the right-hand side of the screen.
Once you enter the email address and answer the secret question you chose when you first registered last year, an email will be sent containing your User ID.
If you do not receive your email within 24 hours, check the “Junk” or “Spam” folder of your email account.

Can’t remember your Password to your PTIN account?

Follow these instructions to create a new PTIN account password:
Go to the PTIN account sign-in screen and click the “Forgot Password” link on the right-hand side of the screen.
Enter the User ID of your PTIN account. If you are unsure of your user ID or if you get the message stating “User ID Not Found” click the ”Forgot User ID” link on the same screen to retrieve your User ID.
Once you enter the User ID and answer the secret question you chose when you first created your PTIN account, an email will be sent to you that contains a temporary password.
If you do not receive your email within 24 hours, check the “Junk” or “Spam” folder of your email account.
Once you receive your temporary password, log into your PTIN account with your user ID and temporary password.
Follow the steps on the screens to reset your password.
Carefully note your username and password for future reference.

Don’t have access to your email address?

Select “Forgot or Cannot Access Email?” from the PTIN homepage.
Enter your Last Name, Date of Birth, and PTIN and select Next.
Enter your Social Security Number and the answer to your Secret Question.
Enter a new email address to associate with your account. NOTE: Use only an email address that you will have access to throughout the calendar year. You will receive all PTIN correspondence at this email address.
You will receive your user ID at the new email address you provided. If you need to change that user ID, log into your PTIN account and select “View/Edit Login Information” from the Main Menu.

Paper applications

Preparers who applied for PTINs using a paper Form W-12 last year are encouraged to renew online. An activation code and instructions were mailed to each paper applicant for this purpose.

Individuals who prefer to renew their PTIN on paper must mail a Form W-12, IRS Paid Preparer Tax Identification Number Application and Renewal. The response time is 4 to 6 weeks.

These and other “Get Help” tips are available on the PTIN page at www.irs.gov/ptin.

How many types of passport in USA? | Passport issued in USA

2011-12-13T07:38:00.000-08:00

(a) Regular passport . A regular passport is issued to a national of the United States.

(b) Official passport . An official passport is issued to an official or employee of the U.S. Government traveling abroad to carry out official duties. When authorized by the Department, spouses and family members of such persons may be issued official passports. When authorized by the Department, an official passport may be issued to a U.S. government contractor traveling abroad to carry out official duties on behalf of the U.S. government.

(c) Diplomatic passport . A diplomatic passport is issued to a Foreign Service officer or to a person having diplomatic status or comparable status because he or she is traveling abroad to carry out diplomatic duties on behalf of the U.S. Government. When authorized by the Department, spouses and family members of such persons may be issued diplomatic passports. When authorized by the Department, a diplomatic passport may be issued to a U.S. Government contractor if the contractor meets the eligibility requirements for a diplomatic passport and the diplomatic passport is necessary to complete his or her mission.

(d) Passport card. A passport card is issued to a national of the United States on the same basis as a regular passport. It is valid only for departure from and entry to the United States through land and sea ports of entry between the United States and Mexico, Canada, the Caribbean and Bermuda. It is not a globally interoperable international travel document.

New Requirement for U.S. Birth Certificates | How to apply for passport in US?

2011-12-13T07:34:00.000-08:00

Beginning April 1, 2011, the U.S. Department of State will require the full names of the applicant’s parent(s) to be listed on all certified birth certificates to be considered as primary evidence of U.S. citizenship for all passport applicants, regardless of age. Certified birth certificates missing this information will not be acceptable as evidence of citizenship. This will not affect applications already in-process that have been submitted or accepted before the effective date.

In addition to this requirement, certified copies of birth certificates must also include the following information to be considered acceptable primary evidence of U.S. citizenship:

Full name of the applicant
Date of birth
Place of birth
Raised, embossed, impressed or multicolored seal of issuing authority
Registrar’s signature
The date the certificate was filed with the registrar’s office (must be within one year)

Rural BPOs need of the hour | Rural BPO to employ rural unemployed youths

2011-12-13T01:27:00.000-08:00

Rural BPOs need of the hour: Rural BPO will be need of the hour for coming years. The cost of maintaining and running office in Tier-1 and 2 has become costly and some of the process cannot even break-even due to low margin.

Companies need to look for annual increment , increased rent in costly areas, inflation etc... On the other side Rural side areas rental value will be very cheap and one can find minimum educated folks to work.This will give employment opportunities to rural unemployed youths as well as reduce the manpower cost to the company which operates back office to process the work.

None of the BPO requires pash office nor look to impress the client as most of the BPO's work as back-end office for their US or UK client.

But still it is not so easy to set-up BPO in rural areas as compared to cities. Power,water, infrastructure etc. Rural BPO's may not provide good option for high skilled back end work as the rural unemployed folks will be having basic education background which may hinder the growth of the process which rural BPO's plan to execute.

How to register as IRS CE provider?| Get IRS CE provider number

2011-12-06T22:21:00.000-08:00

New provider application process

Organizations in all four categories must obtain an IRS CE provider number. Organizations are able to apply through a new on-line process beginning today. As part of the process, continuing education providers are required to pay an annual fee to the third-party vendor selected by the IRS to administer the CE provider application and renewal processes. The fee covers costs to maintain a public listing of all approved providers and to collect course completion information from providers, identifying to the IRS, by PTIN, those attendees who have completed a program. There is no additional IRS fee.

To apply for a provider number and program number(s), organizations should visit: www.irs.gov/taxpros/ce and click on the “Apply to become an IRS Approved CE Provider” link. Assistance for CE Provider questions is available Monday-Fri, 8 a.m. – 8 p.m. EST by calling 855-296-3150 (toll-free) or 202-499-5606.

The IRS will maintain full oversight of approving and reviewing providers. Additional information, including Frequently Asked Questions, is available at www.IRS.gov/ptin and www.IRS.gov/taxpros/ce.

How to become an IRS-approved Continuing Education Provider and the requirements

2011-12-06T22:19:00.000-08:00

The Internal Revenue Service today announced the standards to become an IRS-approved Continuing Education (CE) Provider and the requirements to become an IRS CE Accrediting organization. The guidance paves the way for the implementation of new CE requirements for certain tax return preparers starting next year.

Individuals who are required to take the Registered Tax Return Preparer competency test before the end of 2013 must begin completing continuing education courses in 2012. The 15-hour annual requirement consists of 10 hours of federal tax law topics, three hours of tax law updates and two hours of ethics and/or professional conduct. Preparers must obtain the courses from IRS-approved providers.

To be an IRS-approved CE Provider, an organization must be one of the following:

An accredited educational institution,
Recognized for continuing education purposes by the licensing body of any state or U.S. territory,
Approved by a qualifying organization as a provider of CE on subject matters designed for registered tax return preparers, enrolled agents, and enrolled retirement plan agents (such qualifying organizations will be known as accrediting organizations), or
Any other professional organization, society or business recognized by the IRS as a provider of CE on subject matters designed for registered tax return preparers, enrolled agents, and enrolled retirement plan agents.

Any organization that wants to become an accrediting organization can immediately submit the required documentation outlined in section 4 of Revenue Procedure 2012-12 to the address provided in the revenue procedure. Once approved, any accrediting organizations will be publicized by the IRS and must renew their status as accrediting organization with the IRS every three years.

3% Contractor Withholding

2011-12-05T07:06:00.000-08:00

New Law Repeals 3% Contractor Withholding

On Nov. 21, 2011, the 3% Withholding Repeal and Job Creation Act of 2011 was signed into law, repealing section 3402(t) of the Internal Revenue Code (IRC). This legislation eliminates the withholding and reporting requirements established under IRC section 3402(t) and the accompanying regulations.

IRC section 3402(t) would have required all Federal and state government entities, and some local government entities, to withhold 3% on certain payments to contractors, beginning on Jan. 1, 2013. The regulations under section 3402(t) also required the government entity to report the amount of the payment and the amount withheld on Form 1099-MISC.

http://www.gpo.gov/fdsys/pkg/BILLS-112hr674enr/pdf/BILLS-112hr674enr.pdf

New visa rule to facilitate Green card in USA | How to get green card in USA?

2011-12-04T22:55:00.000-08:00

The Fairness for High-Skilled Immigration Act approved by the House Tuesday, with a 389-15 vote, family-based visa limits rise from 7 percent per country to 15 percent per country, an adjustment that could slightly ease the backlog for naturalized citizens, particularly from Mexico and the Philippines, trying to bring relatives into the United States.cap

The House measure to expand the number of family visas for relatives of U.S. residents hoping to make the U.S. home is expected to benefit, among others, Mexicans, who often wait roughly 10 years for permission to live here.

In addition to eliminating numerical caps on employment-based green cards, the Act would also raise the per-country cap for 226,000 family-related green cards from seven percent of the total to 15 percent.

The High-Skilled Immigration Act, which was introduced to Congress in September by Utah Republican Jason Chaffetz, aims to correct such imbalances by switching to a first come, first served system for the roughly 140,000 employment-based green cards awarded each year.

Individuals from India, the source of most tech industry immigrants to the US, often have to wait up to 10 years for a green card due to the per-country cap.

The lengthy waiting periods for people trained and working in the United States "are contributing to a reverse brain drain in the U.S. as frustrated professionals opt to return to their home countries to pursue their professional ambitions," Kevin Richards, senior vice president of Tech America, which represents the technology industry, said in a letter to lawmakers.

IT destination Shimoga | Rent a place at Shimoga @Rs.5/ SFT

2011-11-28T05:16:00.000-08:00

Shimoga IT Park:

IT Park Shimoga , Karnataka - 5 Acres,

On Shimoga-Bhadravathi NH206, 4 Kms from proposed Airport and 6 Kms from Railway station

In KIADB Nidige-Machenahalli Industrial Estate

Adjacent to proposed 25 acres IT-SEZ

1,00,000 Sq.ft. IT workspace

Infrastructure- Power, Water, High speed connectivity

Facilities - ATM, Bank, Gymnasium, Food court, Tour and Travels

Government of Karnataka extends all concessions and benefits as per IT policy

Project cost : Rs. 25 Crores

Phase-I Construction 65,000 Sq.ft is under progress

Will be ready for operations by July 2011

How to protect your domain? | How to reply for WIPO Arbitration and Mediation Center notice on domain?

2011-11-22T22:41:00.000-08:00

One who feels that their trade name or domain name is misused to mis-lead the public to believe that the domain name belongs to the complainant they can approach domain holder with a notice to transfer the domain name without any condition. If they fail to respond or fail to transfer the domain with all proof the complainant can approach WORLD INTELLECTUAL PROPERTY ORGANIZATION.

The proceducture of applying for claiming domain name is very simple and paperless also. No physical submission mandatory and anywhere in the world one can approach WIPO for Arbitration and decision of the pane is final on the domain name and binding to the registerar to tranfer the disputed domain based in the decisions.

The WIPO Arbitration and Mediation Center is an independent part of the World Intellectual Property

Organization (WIPO), an intergovernmental organization whose mandate is to promote the protection of

intellectual property. A largely self-financed organization, WIPO is based in Geneva, Switzerland and has 184 Member States.

The WIPO Rules are appropriate for all commercial disputes. However, they contain provisions on confidentiality and technical and experimental evidence that are of special interest to parties to intellectual property disputes

What explains as bad faith in booking domain name?

Evidence of Registration and Use in Bad Faith. For the purposes of Paragraph 4(a)(iii), the following circumstances, in particular but without limitation, if found by the Panel to be present, shall be evidence of the registration and use of a domain name in bad faith:

(i) circumstances indicating that you have registered or you have acquired the domain name primarily for the purpose of selling, renting, or otherwise transferring the domain name registration to the complainant who is the owner of the trademark or service mark or to a competitor of that complainant, for valuable consideration in excess of your documented out-of-pocket costs directly related to the domain name; or

(ii) you have registered the domain name in order to prevent the owner of the trademark or service mark from reflecting the mark in a corresponding domain name, provided that you have engaged in a pattern of such conduct; or

(iii) you have registered the domain name primarily for the purpose of disrupting the business of a competitor; or

(iv) by using the domain name, you have intentionally attempted to attract, for commercial gain, Internet users to your web site or other on-line location, by creating a likelihood of confusion with the complainant's mark as to the source, sponsorship, affiliation, or endorsement of your web site or location or of a product or service on your web site or location.

In the next posting I will explain how to respond to the complaint as filed by complainant as a respondent and which are the points to be considered while drafting mail reply to the complaint as forwarded by the complainant

Beware Rejected ACH transfer | Rejected ACH transfer is a spam mail

2011-11-15T01:56:00.000-08:00

You may get a mail with heading as "Rejected ACH transfer " kindly ignore such mails dont response not hit the weblink as given which will goto some fake site

Rejected ACH transfer:

The ACH transaction (ID: 32400005100548), recently sent from your checking account (by you or any other person), was rejected by the Electronic Payments Association.

Canceled transfer

Transaction ID: 32400005100548

Rejection Reason See details in the report below

Transaction Report report_32400005100548.doc (Microsoft Word Document)

13450 Sunrise Valley Drive, Suite 100

Herndon, VA 20171

2011 NACHA - The Electronic Payments Association

Foreign national working in US needed help? | Legal protection to a forign worker in USA

2011-11-14T23:41:00.000-08:00

Rules and Controls:

1.Employers, and people who help them, may use rules and controls to make it harder for you and other workers to leave, complain about mistreatment, or seek help. For example:

Rules against leaving the workplace, or strict rules about where you can go when not working;
Rules against holding onto your own passport, visa, birth certification, or other identification documents;
Denial of adequate food, sleep, or medical care; or
Preventing or restricting you from communicating freely with family, other workers, or others outside the workplace.

Employers, and people who help them, may also use deception and lies. For example:

False promises about working conditions, living conditions, or pay;
Telling you that you have no rights;
Telling you that you will not be believed if you try to seek help; and
Instructing you to lie about their identity.

2. What should I do if these things are happening to me?

If any one of these things is happening to you or you are in a dangerous situation, get help immediately by calling 911, the National Human Trafficking Resource Center (1-888-373-7888), or the Trafficking in Persons and Worker Exploitation Task Force Complaint Line (1-888-428-7581). They can help refer you to a local organization that help victims of human trafficking in your area.

If you are in physical danger, you should call 911 to reach the Police. If you call the police, show them this pamphlet and tell them about the abuse that you have suffered.

3. Will I be deported if I report the abuse?

There are programs to protect people who report abuse. You should not be afraid to seek help even if you have immigration concerns. You should consult with an immigration attorney who does not work for your employer. The hotline can help you find someone to consult.

If you believe you may be a victim of human trafficking or of another serious crime, including rape or sexual assault, you may be entitled to a different nonimmigrant visa, like a T visa (for trafficking victims) or a U visa (for victims of other serious crimes). These visas were created to provide protection for certain crime victims worried about their immigration status. Many people are unfamiliar with these visas and you may need to tell people assisting you about them.

4. What services are available for victims of human trafficking?

If you are a victim of trafficking in the United States, you may be eligible for benefits, services, and immigration remedies under federal or state programs.
Many organizations can help you access these services, which include medical care, mental health care, housing, dental care, legal advocacy for immigration and other legal needs, employment assistance, and public benefits.

Recognizing that you are in an abusive employment situation is the first step toward getting help.

If you arrive in the United States and have problems at work, you should seek help immediately. Do not believe your employer if he or she says that you do not have legal rights in the United States. Do not accept legal advice from your employer, contractor, or recruiter. Only an attorney representing you should give you legal advice.

If you believe your rights are being violated, the hotlines listed in this pamphlet can help you reach local organizations that can provide further assistance. Do not be afraid to contact these organizations! They are here to help you.

This pamphlet is not a substitute for legal advice. There are many different types of temporary work and educational visas, and you should not be afraid to ask for more information about your visa.

IF YOUR RIGHTS ARE VIOLATED, CALL THESE TOLL-FREE NUMBERS:

National Human Trafficking Resource Center 1-888-373-7888 (24 hours)

Trafficking in Persons and Worker Exploitation Task Force Complaint Line 1-888-428-7581

(Monday — Friday, 9am-5pm Eastern Time)

Top 10 Tips for US travellers | 10 things one must know in USA

2011-11-10T23:53:00.000-08:00

There Are Ways to Protect Yourself

 Keep your passport in a safe, easily accessible place at all times;

 Keep copies of your passport, visa, and employment contract in your home country with relatives or friends;

 Always have the phone number of your home country’s embassy;

 Keep this pamphlet handy so that you can refer to it once you are in the United States;

 Keep a record of all the days and hours that you work, and the amount and date of each payment that you receive; and

 Call the National Human Trafficking Resource Center Hotline at 1-888-373-7888 (24 hours) or the Trafficking in Persons and Worker Exploitation Task Force Complaint Line at 1-888-428-7581 (weekdays

Rights of visitors to United States Temporarily To Work Or Study

2011-11-10T23:49:00.000-08:00

Are You Coming To The United States Temporarily To Work Or Study?

We Are Confident That You Will Have An Interesting And Rewarding Stay. However, If You Should Encounter Any Problems, You Have Rights And You Can Get Help!

You Have the Right to:

 Be treated and paid fairly;

 Not be held in a job against your will;

 Keep your passport and other identification documents in your possession;

 Report abuse without retaliation;

 Request help from unions, immigrant and labor rights groups and other groups; and

 Seek justice in U.S. courts.

Exploitation Task Force Complaint Line (Monday — Friday, 9am-5pm Eastern Time)1-888-428-7581

(Run by the U.S. Department of Justice) If you are in immediate physical danger, Call 911

B1 Visa v/s H1B Visa | Legal tussel for infosys over B1 visa Mis-use

2011-11-10T22:48:00.000-08:00

H-1B Visa is required for an employee who is coming to the United States to perform services in a prearranged professional job.
H-1B Persons in Specialty Occupation which requires the theoretical and practical application of a body of highly specialized knowledge requiring completion of a specific course of higher education. (65,000). This category also includes fashion models and Government-to-Government research and development, or co-production projects administered by the Department of Defense (100);
Before applying for a temporary worker visa at the U.S. Embassy or Consulate abroad applicants must obtain an approved Form I-129, Petition for Nonimmigrant Worker from USCIS. This form must be submitted by your prospective employer at USCIS’s Temporary Workers webpage no earlier than 6 months prior to the proposed employment start date. Employers should file the petition as soon as possible within the 6 month period to allow adequate time for processing. Should you need petition processing faster, see Premium Processing Service on USCIS website. Once approved, the employer will be sent Form I-797, Notice of Action.
Fees:

The USCIS filing fee is currently US$ 190, which must be paid by the sponsoring employer. In addition to the filing fee, the USCIS imposes a Fraud Prevention and Detection fee of US$ 500. For H1B applications, the USCIS also imposes a American Competitiveness and Workforce Improvement Act (ACWIA) fee of US$ 1,500 if the petitioner employs more than 25 full-time equivalent employees, including any affiliate or subsidiary, or US$ 750 if the petitioner employs 25 or less full-time equivalent employees. Finally, consular visa processing usually involves a charge of approximately $105 in local currency. Prevailing Wage Determinations and Labor Condition Applications are free of government charges.

B1 Visa:

The visitor visa is a type of nonimmigrant visa for persons desiring to enter the United States temporarily for business (B-1) or for pleasure, tourism or medical treatment (B-2). International travelers with visitor visas comprise a large portion of temporary visitor travel to the United States.
B1 visas do not permit an employee / visitor to work in the US
Non-petition-based nonimmigrant visa (except E): $140.00

Source from Economic times:

In a blow to Infosys Indias secondlargest IT services exporter a US federal judge has ruled against arbitration in the Jack Palmer versus Infosys case on Wednesday.The case proceedings started in February.It charges Infosys with large-scale visa fraud.The case will now be decided in court.According to Palmer,an Infosys employee in the US,the company has been illegally using B1 visas in lieu of H1B visas.Unlike H1B visas,B1 visas do not permit an employee to work in the US.Palmer said the company has been using B1 visas to send employees to work on projects at client locations.

A court battle will make matters tougher for the technology major as it will now have to convince a jury in a country where Indian outsourcers are already being blamed for taking away technology jobs.The case could have massive implications of Infosys brand in North America from where it gets over 60% of its revenues.If decided against Infosys,it threatens to make acquiring visas tougher for the entire Indian IT industry that depends on H1B visas to send employees to work onsite.The matter has drawn widespread attention in the US.Apart from Palmers case,it has led to a subpoena for the company by a grand jury in a district court in Texas and the issue was taken up by US senators.Infosys had requested that its dispute with Palmer be resolved by an arbiter,as mandated by an agreement between the parties at the time of employment.In an 18-page order,US district court judge Myron H Thomson called the contract between the software giant and Palmer unconscionable.The arbitration provisions,included within a larger employment contract,are boilerplate and drafted by the party with superior bargaining power,the employer, the judge wrote in his order.In his complaint,Palmer has also said that Infosys improperly asked its US employees to write welcome letters for unskilled workers.Welcome letters are mandatory for visas.According to Palmer,when he took up the matter with the Infosys whistleblower team,he was subjected to harassment,including threatening phone calls,denial of bonuses,derogatory comments and increased working hours.Palmer has asserted that the employees on B1 visas worked for clients like Walmart,Goldman Sachs and American Express.In the past two years,the cost of H1B visas has doubled and experts said rejection rates too have gone up.Infosys said it could not comment on the development as the matter was sub judice.In a previous statement,the company had said that Palmer was spreading falsehoods to get as large a payout as possible.There is not,nor was there ever a strategy,scheme,or policy by the company to use the B1 visa programme to circumvent the H1B visa programme.The company did not have a practice of sending unskilled employees to the United States on B1 visas to do the work expected of skilled individuals in the US on H1B visas, the company had said in an official statement in July.In the past few months,Infosys has hired Stephen A Jonas,one of the top criminal lawyers in the US and brought on board Vasudev Nayak,an expert in visa and immigration-related matters,who was earlier employed with crosstown competitor Wipro.The company,which has around 18,000 employees in the US,is also increasing its headcount in the region rapidly with a majority of the new employees being American citizens.

Pay day loan legal in Georgia? | Payday loan illegal in Georgia?

2011-11-08T03:25:00.000-08:00

The federal Truth in Lending Act requires disclosure of the cost of credit. You must receive, in writing, the finance charge (a dollar amount) and the APR, which is the cost of credit on a yearly basis. Payday lenders are subject to this regulation.

Small loans of less than $3,000 are regulated by the Georgia Industrial Loan Act. This Act provides that persons or companies making loans and charging interest thereon at a rate of more than 8 percent (simple interest per annum) shall be subject to the Georgia Industrial Loan Act (“GILA”) and shall be required to obtain a license from the Office of the Commissioner of Insurance unless they are exempt from such licensure.

The Georgia Act

The Georgia Act amended the criminal code to include a new criminal offence of “payday lending,” as defined in the Act.

2.The Act was passed with bipartisan support, and was the first state law to expressly prohibit charter renting by payday lenders. In other states, Attorneys General have challenged rent-a-charter under existing usury laws, looking past the banks’ status as nominal lender and recognizing the payday lenders as the de facto loan originators. But the Georgia Act expressly states that the privileged status of out-of-state and national banks will not be extended to the banks’ purported non-bank agents where the agent retains the predominant economic interest in the loan. The Georgia Act caps small consumer loans at Georgia’s small

loan usury rate of 60 percent per year, adds stiff criminal and civil penalties for violators, and bars non-bank lenders from partnering with banks to avoid Georgia’s usury laws.

The Lenders’ Unsuccessful Challenge to the Georgia Act: An Overview Soon after the Georgia Act was passed, several payday lenders and their out-of-state bank “partners” sued Georgia’s Attorney General and Secretary of State in the United States District Court for the Northern District of Georgia, to prevent enforcement of the law against them. The district court rejected the lenders’ arguments and its decision was affirmed on appeal to the Eleventh Circuit Court of Appeals. The appeals court thereafter granted the lenders’ request for rehearing before the full court, and vacated the prior decisions. However, before the rehearing occurred, the state moved to dismiss the appeal as moot, after certain regulatory actions of the

FDIC caused the bank partners to leave the payday lending business. Over the lenders’ objection, the court dismissed the appeal, and the case was subsequently dismissed.

Is the Georgia Act preempted by the FDIA?

No. The Georgia Act does not preclude out-ofstate banks from making the payday loans, whether directly or through non-bank agents (including payday lenders) – so long as the bank is the real lender, such that it retains at least a 50 percent interest in the loan revenue. The Georgia Act does not seek to impose Georgia interest rates on out-of-state banks, and therefore is not preempted.

Notice from IRS | Steps to be taken for solve the notice from IRS

2011-11-07T23:13:00.000-08:00

Each year, the Internal Revenue Service sends millions of letters and notices to taxpayers for a variety of reasons. Here are eight things to know about IRS notices – just in case one shows up in your mailbox.

Don’t panic. Many of these letters can be dealt with simply and painlessly.

There are a number of reasons why the IRS might send you a notice. Notices may request payment of taxes, notify you of changes to your account, or request additional information. The notice you receive normally covers a very specific issue about your account or tax return.

Each letter and notice offers specific instructions on what you are asked to do to satisfy the inquiry.

If you receive a correction notice, you should review the correspondence and compare it with the information on your return.

If you agree with the correction to your account, then usually no reply is necessary unless a payment is due or the notice directs otherwise.

If you do not agree with the correction the IRS made, it is important that you respond as requested. You should send a written explanation of why you disagree and include any documents and information you want the IRS to consider, along with the bottom tear-off portion of the notice. Mail the information to the IRS address shown in the upper left-hand corner of the notice. Allow at least 30 days for a response.

Most correspondence can be handled without calling or visiting an IRS office. However, if you have questions, call the telephone number in the upper right-hand corner of the notice. Have a copy of your tax return and the correspondence available when you call to help us respond to your inquiry.

It’s important that you keep copies of any correspondence with your records

How to Renew your PTIN?

2011-11-06T01:02:00.000-07:00

In IRS Newswire Issue Number IR-2011-105 the IRS outlined the details of their new annual PTIN application and renewal process. The following list provides the most important highlights from this recent Newswire publication:

Annual renewals of PTINs will happen each year between October 15 and December 31.
The initial application fee to receive a PTIN is $64.25.
The renewal fee for an existing PTIN is $63.00.
Applicants can apply via paper Form W-12 but are encouraged to use the online system (www.irs.gov/ptin) to avoid the four to six week wait period associated with the paper form of filing.
Any individual who prepared returns in 2011 without a valid PTIN will need to first apply for a 2011 PTIN ($64.25) and then pay the renewal fee for 2012 ($63.00). Penalties may be assessed to paid tax return preparers who prepared, or helped prepare returns in 2011 without valid PTINs.
The new process includes the following self-identification requirements:

Return preparers must self-identify if they are supervised preparers or non-1040 preparers.
Supervised preparers must provide their supervisorâ€™s PTIN when applying for or renewing their own PTIN.
Credentialed preparers (CPAs, attorneys and EAs) must provide the expiration date for their licenses when they apply or renew their PTINs.

Daylight saving to end on November 6, 2011

2011-10-28T04:20:00.000-07:00

Day light savings in US which started on 13th of March 2011 will end by November 6th 2011. By this zones which will follow day light savings will turn forward the clock by an hour from the morning to the evening.

March 11 2012 will be next Beginning of day light savings...

H1-B Application in north direction

2011-10-28T03:55:00.000-07:00

More Indian skilled professionals are winging their way to the US again.The US government has reported a 24% increase in H1-B visas to Indians between 2010 and 2011.

In a statement on Tuesday,the US embassy in India said specialized skills work visas for Indians had increased from 54,111 in 2010 to 67,195 in 2011.The US statement comes on the back of sustained Indian complaints from industry and government that more and more Indian skilled workers trying to move to the US were being denied entry.

Some Indian officials even pegged the rejections at an informal 20%.The Indian complaints were bolstered by statements made by US President Barack Obama seeming to suggest that importing Bangalore techies was bad for US business.The US rejected the Indian complaints : The 24% increase is tied to the highest-ever H1-B application and issuance rates in the history of the US mission to India,and illustrates the booming nature of business relations.India is the single largest beneficiary of H1-B visas by a wide margin: in the past four years,applicants in India have received more than twice as many H1-B visas as the four next-highest countries combined.

One can find the status of their H1-B application here

us tax training courses India | 1040 training material for free

2011-10-21T04:40:00.000-07:00

US tax training courses India:

There is always a systematic study plan involved when it come to study anything in the world. Same way if one wish to become an expert in 1040 preparation i.e. US individual tax preparation one need to study fully P17 as published in IRS site.

P17

After completing reading of p17 one should associate with each of the forms where in the income will flow like schedule B, schedule D, Schedule C, Schedule A,

Schedule A Schedule B Schedule C Schedule D

It is advisable to keep a copy of 1040 forms always with you to have proper track of the flow of the income , expenses, and credits.

1040 form

You can find PPT explaining 1040 tax chapters to be covered:
1040 introduction

View more presentations from knowinfonow

Dodd-Frank Wall Street Reform and Consumer Protection Act.Implemented

2011-10-18T23:15:00.000-07:00

Dodd-Frank Wall Street Reform and Consumer Protection Act.:

The Federal Reserve Board on Monday announced the approval of a final rule to implement the resolution plan requirement in the Dodd-Frank Wall Street Reform and Consumer Protection Act.

The final rule requires bank holding companies with assets of $50 billion or more and nonbank financial firms designated by the Financial Stability Oversight Council for supervision by the Board to annually submit resolution plans to the Board and the Federal Deposit Insurance Corporation.

Each plan will describe the company's strategy for rapid and orderly resolution in bankruptcy during times of financial distress. A resolution plan must include a strategic analysis of the plan's components, a description of the range of specific actions the company proposes to take in resolution, and a description of the company's organizational structure, material entities, interconnections and interdependencies, and management information systems.

Under the final rule, companies will submit their initial resolution plans on a staggered basis. The first group of companies, generally those with $250 billion or more in non-bank assets, must submit their initial plans on or before July 1, 2012; the second group, generally those with $100 billion or more, but less than $250 billion, in total non-bank assets, must submit their initial plans on or before July 1, 2013; and the remaining companies, generally those subject to the rule with less than $100 billion in total non-bank assets, must submit their initial plans on or before December 31, 2013.

http://www.federalreserve.gov/newsevents/press/bcreg/bcreg20111017a1.pdf

Source: Federal reserve

Apple iphone 4S for the whole world | Unlocked iphone 4s to buy

2011-10-12T22:54:00.000-07:00

Many of the international customers are very keen on Apple iphone and would be purchasing locked phone which is restricted to US network service provider and unlocking the same to make it use for their respective countries Mobile operator's network where in most of I-phone's functionality wont work successfully.Only drawback is it will not support CDMA network.

Customers can use the same using Micro SIM as provided by mobile service operators.

Here is a good news for such users.

The unlocked iPhone 4GS will only work on supported GSM networks, like AT&T in the U.S. But it will not work with any CDMA carriers, including Verizon Wireless or Sprint.

Customers who buy an unlocked iPhone 4S will be able to use the handset internationally on GSM networks. They must obtain a micro-SIM card from a local GSM carrier to put in the handset.

When it was announced on Tuesday, the iPhone 4S was unveiled as a "world phone," meaning it is compatible with both CDMA and GSM networks. But customers who want to operate the handset on a CDMA network, like Verizon, the largest carrier in the U.S., will need to buy Apple's latest smartphone with a new two-year contract.

"The unlocked iPhone includes all the features of iPhone but without a contract commitment," Apple's description reads. "You can activate and use it on the supported GSM wireless network of your choice, such as AT&T in the United States."

The contract-free iPhone 4S is available in all three standard capacities, and is priced at $649 for 16GB, $749 for 32GB and $849 for 64GB. It will be available in both black and white.

TASMAC business school closed down its London campus | Beware of Foreign university

2011-10-12T03:03:00.000-07:00

TASMAC business school closed down its London campus:

The TASMAC business school closed down its London campus on October 6.In a statement,the MEA spokesperson said,The decision to shut down the campus is believed to be related to the UKs efforts to tighten norms in respect of tier-4 student visas. The TASMAC business school was started in 2004,and offers BA and MBA degrees.TASMAC apparently runs business schools in Bangalore and Kolkata.

The MEA said the Indian High Commission in London has made contact with the TASMAC authorities.Our High Commission in London has established immediate contact with TASMAC,which has conveyed that it is working with the University of Wales to transfer the students to other educational institutions so that their studies are not disrupted.

The Indian mission has set up an advisory for students on its website,but the MEA said no Indian student had contacted them for any assistance yet.The government has been quick off the block on this,given the trouble created for about 1,500 students in the Tri-valley University in the US,which had become an embarrassing irritant in bilateral ties,some months ago.

Earlier this year,the UK instituted several changes in the student visa regime.The main changes are: From April 2012,any institution wanting to sponsor students will need to be classed as a Highly Trusted sponsor,and should be accredited by a statutory education inspection body by the end of next year.The current system does not require this,and has allowed too many below par colleges to become sponsors.

Students wanting to pursue degree courses will need to speak English at an upper intermediate (B2) level.The UK can deny entry to students,who cannot speak English without an interpreter.

Only students at universities and publicly-funded higher education colleges will be allowed to work.Besides,only post-graduate students can bring families along with them.

The TASMAC business school was started in 2004,and offers BA and MBA degrees TASMAC apparently runs business schools in Bangalore and Kolkata The Indian mission has set up an advisory for students on its website,but the MEA said no Indian student had contacted them for any assistance yet

Source: Economic times

Aakash Cheapest Tablet at $35 will be a reality soon

2011-10-04T03:44:00.000-07:00

Aakash Cheapest Tablet at $35 will be a reality soon:

The worlds cheapest tablet PC ,which will be unwrapped on 5th of October 2011,will go on sale in India starting December,the maker of the device has said.Created for use by students,the tablet will first be made available to colleges at Rs 1,750 apiece ($35) although it costs Rs 3,000 to produce one.

The tablet,nicknamed Aakash,will run on Googles Android platform,with Wi-Fi connectivity for internet access and cloud storage.It will have 256MB of RAM,a 2GB SD memory card,a 32GB expandable memory slot and two USB ports.

The cheapest tablets PC available in the world market are available at $99 for an HP Touch-Pad,and $199 for Amazons Kindle Fire.

Surviving Spouses to Benefit from Portability Election; Estate Tax Return Required to Make this Choice For Some, Form 706 Due as Early as Oct. 3

2011-10-03T06:47:00.001-07:00

The Internal Revenue Service today reminded estates of married individuals dying after 2010 that they must file an estate tax return to pass along their unused estate & gift tax exclusion amount to their surviving spouse.
Available for the first time this year, the new portability election allows estates of married taxpayers to pass along the unused part of their exclusion amount, normally $5 million in 2011, to their surviving spouse. Enacted last December, this provision eliminates the need for spouses to retitle property and create trusts solely to take full advantage of each spouse’s exclusion amount.
The IRS expects that most estates of people who are married will want to make the portability election, including people who are not required to file an estate tax return for some other reason. The only way to make the election is by properly and timely filing an estate tax return on Form 706. There are no special boxes to check or statements needed to make the election.
The first estate tax returns for estates eligible to make the portability election (because the date of death is after Dec. 31, 2010) are due as early as Monday, Oct. 3, 2011. This is because the estate tax return is due nine months after the date of death. Estates unable to meet this deadline can request an automatic six-month filing extension by filing Form 4768. The IRS emphasized that estates of those who died before 2011 are not eligible to make this election.
The IRS plans to issue regulations providing further guidance on this election and welcomes public comment on a number of issues. There are three ways to submit comments:

E-mail to: Notice.Comments@irscounsel.treas.gov. Include “Notice 2011-82” in the subject line.
Mail to: Internal Revenue Service, CC:PA:LPD:PR (Notice 2011-82), Room 5203, P.O. Box 7604, Ben Franklin Station, Washington, DC 20044.
Hand deliver to: CC:PA:LPD:PR (Notice 2011-82), Courier’s Desk, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC, between 8 a.m. and 4 p.m., Monday through Friday.

The deadline is Oct. 31, 2011. Further details are in Notice 2011-82, posted today on IRS.gov.

How to Claim the Small Business Health Care Tax Credit?

2011-10-03T06:46:00.001-07:00

Many small employers that pay at least half of the premiums for employee health insurance coverage under a qualifying arrangement may be eligible for the small business health care tax credit. This credit can enable small businesses and small tax-exempt organizations to offer health insurance coverage for the first time. It also helps those already offering health insurance coverage to maintain the coverage they already have. The credit is specifically targeted to help small businesses and tax-exempt organizations that primarily employ 25 or fewer workers with average income of $50,000 or less.

Here is what small employers need to know so they don’t miss out on the credit for tax year 2010:

Hurricane Irene, Tropical Storm Lee and other recent disaster-related tax relief postponed certain tax filing and payment deadlines to Oct. 31, 2011. Qualifying businesses affected by these natural disasters still have time to file and claim the small employer health care credit on Form 8941 and claim it as part of the general business credit on Form 3800, which they would include with their tax return. For more information on the disaster relief visit IRS.gov.
Sole proprietors who file Form 1040, Partners and S-corporation shareholders who report their income on Form 1040 and had requested an extension have until Oct. 17 to complete their returns. They would also use Form 8941 to calculate the small employer health care credit and claim it as a general business credit on Form 3800, reflected on line 53 of Form 1040.
Tax-exempt organizations that file on a calendar year basis and requested an extension to file to Nov. 15 can use Form 8941 and then claim the credit on Form 990-T, Line 44f.
Businesses who have already filed can still claim the credit. For small businesses that have already filed and later determine they are eligible for the credit, they can always file an amended 2010 tax return. Corporations use Form 1120X and individual sole proprietors use Form 1040X.
Businesses that couldn’t use the credit in 2010 may be eligible to claim it in future years. Some businesses that already locked into health insurance plan structures and contributions for 2010 may not have had the opportunity to make any needed adjustments to qualify for the credit for 2010. So these businesses may be eligible to claim the credit on 2011 returns or in years beyond. Small employers can claim the credit for 2010 through 2013 and for two additional years beginning in 2014.

For tax years 2010 to 2013, the maximum credit for eligible small business employers is 35 percent of premiums paid and for eligible tax-exempt employers the maximum credit is 25 percent of premiums paid. Beginning in 2014, the maximum tax credit will go up to 50 percent of premiums paid by eligible small business employers and 35 percent of premiums paid by eligible tax-exempt organizations.

'Buffett Rule' and impact on US economy | Will Buffett rule be a success?

2011-09-18T23:35:00.000-07:00

US President Barack Obama is expected to seek a new base tax rate for the wealthy to ensure that millionaires pay at least at the same percentage as middle income taxpayers.

Buffett Rule after Warren Buffett,the billionaire investor who has complained that rich people like him pay a smaller share of their income in federal taxes than middle-class taxpayers.

This Proposal would target the top 0.3 percent of taxpayers, many of whom currently reap huge benefits from lower rates on capital gains and dividends.

Although wages are taxed at rates ranging from 10 percent to 35 percent, investment earnings are taxed at 15 percent which is the main reason behind bring those who are taxed at lesser rate to be taxed in par with normal wage earners.

But chances of getting this approved in congressional approval very less, it could help shape a populist message for Obama and other Democrats heading into the 2012 presidential campaign.

Home insurance in USA | Why one need to take home insurance in USA?

2011-09-15T22:45:00.000-07:00

Why one need to take home insurance in USA?:

Homeowners insurance is an important purchase for many people.

There are two major reasons to buy homeowners insurance.

1. To protect your assets Homeowners insurance covers both your property and your personal legal responsibility (or liability) for injuries to others or their property while they’re on your property.

2. To satisfy your mortgage lender Most mortgage lenders require you to have insurance as long as you have a mortgage and to list them as the mortgagee on the policy. If you let your insurance lapse, your mortgage

lender will likely have your home insured. The premium may be much higher (and the coverage much less) than a policy you would buy on your own. The lender can require you to pay this higher premium until you get your own homeowners insurance again.

What the policy covers:

A homeowners policy usually covers:

• Your house and other buildings on your property
• Your personal property in your home or on your property
• Your personal liability your home is being repaired
• Medical payments for others accidentally hurt on your property
• Additional living expenses if you must rent a place to live while your home is being repaired.

What the policy doesn't cover?

A homeowners policy usually doesn’t cover:
• Flood
• Earthquake, landslide, or mudslide
• Sewer backup
• Identity theft

Your homeowners policy may not cover claims related to:
• Dog bites
• Swimming pools or trampolines
• Operating a business from your home.

Tax treatment of cell phones | Tax treatment of cell phones as Fringe benefit

2011-09-14T22:16:00.000-07:00

This notice provides guidance on the tax treatment of cellular telephones or other similar telecommunications equipment (hereinafter collectively “cell phones”) that employers provide to their employees primarily for noncompensatory business purposes. BACKGROUND Section 2043 of the Small Business Jobs Act of 2010,

Pub.L.No. 111-240, (the Act) removed cell phones from the definition of listed property for taxable years beginning after December 31, 2009. The Act did not otherwise alter the requirement that an employer-provided cell phone is a fringe benefit, the value of which must be included in the employee’s gross income, unless an exclusion applies, or the potential treatment of an employer-provided cell phone as an excludible fringe benefit. Since enactment of the Act, the IRS has received questions about the proper tax treatment of employer-provided cell phones. Accordingly, this notice addresses the treatment of employer-provided cell phones as an excludible fringe benefit. Gross Income

2 Section 61 of the Internal Revenue Code (Code) defines gross income as all income, from whatever source derived. Section 61(a)(1) provides that gross income includes compensation for services, including fees, commissions, fringe benefits, and similar items. A fringe benefit provided by an employer to an employee is presumed to be income to the employee unless it is specifically excluded from gross income by another section of the Code. See Income Tax Regulations § 1.61-21

(a). Working Condition Fringe Benefits Section 132(a)(3) of the Code provides that gross income does not include any fringe benefit which qualifies as a working condition fringe. Section 132(d) provides that “working condition fringe” means any property or services provided to an employee of the employer to the extent that, if the employee paid for such property or services, such payment would be allowable as a deduction under §§ 162 or 167. Section 1.132-5(a)(1)(ii) of the Income Tax Regulations (Regulations) provides that if, under section 274 or any other section, certain substantiation requirements must be met in order for a deduction under §§ 162 or 167 to be allowable, then those substantiation requirements apply when determining whether a property or service is excludable as a working condition fringe. See also Regulations § 1.132-5(c)(1). Section 162(a) of the Code provides that a deduction is allowed for all the ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business. However, section 262(a) of the Code provides that, except as otherwise expressly provided, no deduction shall be allowed for personal, living, or family expenses.

3.In the case of certain listed property, as defined in section 280F(d)(4) of the Code, special heightened substantiation rules apply. Section 274(d)(4) of the Code provides that no deduction shall be allowed with respect to any listed property (as defined in § 280F(d)(4)), unless the taxpayer substantiates by adequate records or by sufficient evidence corroborating the taxpayer’s own statement (A) the amount of such expense or other item, (B) the use of the property, (C) the business purpose of the expense or other item, and (D) the business relationship to the taxpayer of persons using the property.

The Act removed cell phones from the definition of listed property for taxable years beginning after December 31, 2009. Because the Act removed cell phones from the definition of listed property, the heightened substantiation requirements that apply to listed property no longer apply to cell phones for taxable years beginning after December 31, 2009. De Minimis Fringe Benefits Section 132(a)(4) of the Code provides that gross income does not include any fringe benefit which qualifies as a de minimis fringe. Section 132(e) defines a de minimis fringe as any property or service the value of which is (after taking into account the frequency with which similar fringes are provided by the employer to the employer’s employees) so small as to make accounting for it unreasonable or administratively impracticable. Except as specifically provided (i.e., occasional meal money or local transportation fare and reimbursements for public transit passes), a cash fringe benefit is not excludable as a de minimis fringe. See Regulations §1.132-6(c).

4.Guidance Regarding Employer-Provided Cell Phones Many employers provide their employees with cell phones primarily for non-compensatory business reasons. The value of the business use of an employer-provided cell phone is excludable from an employee’s income as a working condition fringe to the extent that, if the employee paid for the use of the cell phone themselves, such payment would be allowable as a deduction under section 162 for the employee. An employer will be considered to have provided an employee with a cell phone primarily for noncompensatory business purposes if there are substantial reasons relating to the employer’s business, other than providing compensation to the employee, for providing the employee with a cell phone. For example, the employer’s need to contact the employee at all times for work-related emergencies, the employer’s requirement that the employee be available to speak with clients at times when the employee is away from the office, and the employee’s need to speak with clients located in other time zones at times outside of the employee’s normal work day are possible substantial noncompensatory business reasons. A cell phone provided to promote the morale or good will of an employee, to attract a prospective employee or as a means of furnishing additional compensation to an employee is not provided primarily for non-compensatory business purposes. This notice provides that, when an employer provides an employee with a cell phone primarily for non-compensatory business reasons, the IRS will treat the employee’s use of the cell phone for reasons related to the employer’s trade or business as a working condition fringe benefit, the value of which is excludable from the

5.employee’s income and, solely for purposes of determining whether the working condition fringe benefit provision in section 132(d) applies, the substantiation requirements that the employee would have to meet in order for a deduction under §162 to be allowable are deemed to be satisfied. In addition, the IRS will treat the value of any personal use of a cell phone provided by the employer primarily for noncompensatory business purposes as excludable from the employee’s income as a de minimis fringe benefit. The rules of this notice apply to any use of an employer-provided cell phone occurring after December 31, 2009.

The application of the working condition and de minimis fringe benefit exclusions under this notice apply solely to employer-provided cell phones and should not be interpreted as applying to other fringe benefits. EFFECTIVE DATE This notice is effective for all taxable years after December 31, 2009.

CONTACT INFORMATION The principal author of this notice is Joseph Perera of the Office of Associate Chief Counsel (Tax Exempt & Government Entities). For further information regarding this notice contact Joseph Perera on (202) 622-6040 (not a toll-free call).

How to restore your suspended Driving license in US? | Restoration of driving license

2011-09-14T04:49:00.000-07:00

How to restore your suspended Driving license in US?:

Restoring your license
To pay a restoration fee:

Pay $100 fee online (Note: a credit card convenience fee will be applied in order to process each online transaction)

Pay in person at a Regional Service Center

Pay in person at an MVC Agency offering walk-in service

Send a check or money order payable to:

New Jersey Motor Vehicle Commission
P.O. Box 140
Trenton, NJ 08650-0140

Once you have completed your suspension period, you will receive a Notice of Restoration in the mail and need to take the following steps to get a new license:

* Complete the same steps as required for a standard license renewal

Also the Mandatory Probation Period starts after completion of Probationary Driver Program, Driver Improvement Program,official warning issued by MVC or restoration after points or persistent violator suspension.

Violation Suspension

For the first violation within a year Within 6 months of restoration 90 days

Within 7–9 months 60 days

Within 10–12 months 45 days

For second or subsequent violations*

Within 6 months of restoration 180 days

Within 7–9 months 120 days

Within 10–12 months 90 days

*If you receive three license suspensions within a three-year period may lose your license for up to three years.

Change your address for IRS | Change your address in 1040

2011-09-14T03:27:00.000-07:00

Change of Address:

Change your address with the IRS if you are expecting a tax refund or other mail. You can also change your address with the IRS by writing your new address in the appropriate boxes on your tax return when you file.

One need to submit hard copy of 8822 form.You can use Form 8822 to notify the Internal

The IRS automatically updates your address of record based on any new address you provide the U.S. Postal Service (USPS). We use the information in the USPS's National Change of Address database. IRS also automatically updates your address of record when the USPS changes your address because of a new Zip Code boundary or other administrative reason. IRS notices or documents sent to a taxpayer's “last known address,” are legally effective even if the taxpayer never receives it.

Revenue Service if you changed your home or business mailing address or your business location. If this change also affects the mailing address for your children who filed income tax returns, complete and file a separate Form 8822 for each child. If you are a representative signing for the taxpayer, attach to Form 8822 a copy of your power of attorney.

How to intimate change of address in USA?

2011-09-14T03:21:00.000-07:00

When you move, you need to change your address with a few government agencies to make sure you continue to receive mail and any government benefits at your new location.

U.S. Postal Service: Forward Your Mail

Change your address online for a $1 fee if you have a credit card and valid e-mail address. You can also print the form and then mail or deliver it to your local post office to change your address for free. After changing your address, the U.S. Postal Service will forward your mail to your new address for up to one year.

Request for change online

IRS RETURN PREPARER TEST SPECIFICATIONS | Syllabus for IRS tax test

2011-09-08T22:14:00.000-07:00

IRS RETURN PREPARER TEST SPECIFICATIONS:

Tax preparers are required to pass this competency test in order to achieve the title of Registered Tax Return Preparer.

Domain 1: Preliminary Work and Collection of Taxpayer Data	15%
Domain 2: Treatment of Income and Assets	22%
Domain 3: Deductions and Credits	22%
Domain 4: Other Taxes	11%
Domain 5: Completion of the Filing Process	10%
Domain 6: Practices and Procedures	5%
Domain 7: Ethics Circular 230	15%
	100%

Domain 1: Preliminary Work and Collection of Taxpayer Data 15%

1. Review prior year’s return for accuracy, comparison, and carryovers for current year return.

2. Collect taxpayer’s biographical information (e.g., date of birth, age, marital status, citizenship, dependents) 3. Determine filing status

4. Determine all sources of taxable and non-taxable income (e.g., wages, interest, business, sale of property, dividends, rental income, income from flow-through entities, alimony, government payments, and pension distributions).

5. Determine applicable adjustments to gross income (e.g., self-employed health insurance, self employment tax, student loan interest deduction, alimony paid, tuition, and fees deduction).

6. Determine standard deduction and Schedule A itemized deductions (i.e., state and local tax, real estate tax, cash contributions, non-cash contributions, unreimbursed employee expense, medical expense, and mortgage interest).

7. Determine applicable credits (e.g., earned income tax credit, child tax credit, education, retirement savings, dependent and child care credit).

8. Understand tax payments (e.g., withholding, estimated payments).

9. Recognize items that will affect future returns (e.g., carryovers, depreciation).

10. Determine special filing requirements (e.g., presidentially declared disaster areas).

11. Determine filing requirements (including extensions and amended returns).

12. Understand due dates, including extensions.

13. Determine personal exemptions, including dependents.

14. Determine qualifying child/relative tests for Earned Income Credit.

Domain 2: Treatment of Income and Assets:
A. Income

1. Taxability of wages, salaries, tips, and other earnings (e.g., W-2 Wage and Tax Statement, cash).

2. Interest Income (taxable and non-taxable) (e.g., Schedule B and 1099-INT).

3. Dividend Income (e.g., Schedule B and 1099-DIV).

4. Self-employment income and expenses (e.g., Schedule C Profit or Loss From Business and Form 1099-MISC Miscellaneous Income, cash).

5. Rental income and expenses (e.g., Schedule E Supplemental Income and Loss).

6. Identification of forgiveness of debt as income (including Form 1099-C Cancellation of Debt).

7. Other income (e.g., alimony, barter income, hobby income, non taxable combat pay, state income tax refund from prior years, prizes).

B. Retirement Income

1. Reporting requirements of Social Security benefits (e.g., Form SSA-1099 Social Security Benefit Statement).

2. Taxable distribution from an IRA including basis in an IRA (e.g., Form 8606 Non-deductible IRAs).

3. Distributions from qualified plans (e.g., 401k, IRA, Roth IRA). 4. Required minimum distributions from retirement plans.

C. Property, Real and Personal

1. Short-term and long-term capital gains and losses (e.g., Schedule D Capital Gains and Losses, Form 1099-B Proceeds From Broker and Barter Exchange Transactions).

2. Determination of basis of assets (e.g., purchased, gifted, or inherited).

3. Sale of non-business assets (gains or losses).

4. Sale of a principal residence (e.g., IRC 121 exclusions, 1099S Proceeds From Real Estate Transactions).

D. Adjustments to Income

1. Self-employment tax (e.g., Schedule SE Self-Employment Tax).

2. Tuition and fees – (e.g., Form 8917 Tuition and Fees Deduction, Form 1098T Tuition Statement).

3. Eligible Moving expenses – (e.g., Form 3903 Moving Expenses).

4. Other adjustments to income (e.g., IRA contribution deduction).

Domain 3: Deductions and Credits

A. Itemized Deductions

1. Medical and dental expenses. 2. State, local, and real estate taxes. 3. Mortgage interest expense - (e.g., Form 1098 Mortgage Interest Statement). 4. Charitable contributions (e.g., cash, non-cash, Form 8283 Non-Cash Charitable Contributions). 5. Miscellaneous itemized deductions – (including deductions subject to 2% AGI Limit). 6. Employee travel, transportation, education, and entertainment expenses – (e.g., Form 2106-EZ and Form 2106 Unreimbursed Employee Business Expenses).

B. Credits

1. Child and dependent care credit (e.g., Form 2441 Child and Dependent Care Expenses). 2. Child tax credit and additional child tax credit (e.g., Form 8812, Additional Child Tax Credit). 3. Education credits – (e.g., Form 8863 Education Credits (American Opportunity and Lifetime Learning Credits), Form 1098T Tuition Statement). 4. Earned Income Tax Credit (EITC) (e.g., Schedule EIC Earned Income Credit, Form 8867 Paid Preparer’s Earned Income Credit Checklist). 5. Retirement savings contribution credit – (e.g., Form 8880 Credit for Qualified Retirement Savings Contributions).

Domain 4: Other Taxes:

1. Alternative Minimum Tax (e.g., Form 6251 Alternative Minimum Tax). 2. Early distributions from retirement plans – (e.g., Form 5329 Additional Tax on Qualified Plans). 3. Self-employment tax (e.g., Schedule SE Self-Employment Tax). 4. Unreported Social Security and Medicare tax – (e.g., Form 4137 Social Security and Medicare Tax on Unreported Tip Income). 5. Repayment of first-time home buyer credit (including Form 5405 First-Time Homebuyer Credit and Repayment of the Credit).

Domain 5: Completion of the Filing Process:

1. Check return for completeness and accuracy. 2. Explain and review tax return. 3. Explain record-keeping requirements to the taxpayer. 4. Discuss significance of signatures (e.g., joint and several liability, penalty of perjury, Form 8879 IRS e-file Signature Authorization). 5. Understand tax preparer's responsibilities related to rejected electronic returns. 6. Understand timeframe for submitting electronic returns – (e.g., Form 8879 taxpayer signature and date prior to submission). 7. Understand payment options (e.g., check, direct debit, EFTPS, credit card, installment agreement-Form 9465). 8. Understand estimated tax payment requirements (e.g., potential for penalties, Form 1040-ES Estimated Tax). 9. Understand refund options – (e.g., Form 8888 Allocation of Refund).

Domain 6: Practices and Procedures:

1. Penalties to be assessed by the IRS against a preparer for negligent or intentional disregard of rules and regulations, and for a willful understatement of liability (e.g., IRC 6694(a), IRC 6694(b)).

2. Appropriate use of Form 8867 Paid Preparer’s Earned Income Credit Checklist and related penalty for failure to exercise due diligence (e.g., IRC 6695(g)).

3. Furnishing a copy of a return to a taxpayer (e.g., IRC 6695(a)).

4. Signing returns and furnishing identifying (PTIN) numbers (e.g., IRC 6695(b), IRC 6695(c)).

5. Rules for the return preparer for keeping copies and/or lists of returns prepared (e.g., IRC 6695(d)).

6. Compliance with e-file procedures (e.g., timing of taxpayer signature, timing of filing, recordkeeping, prohibited filing with pay stub).

7. Completion and use of Form 2848 Power of Attorney and Declaration of Representative and Form 8821 Tax Information Authorization.

8. Safeguarding taxpayer information – (e.g., Publication 4600 Safeguarding Taxpayer Information, Quick Reference Guide for Business, IRC 7216).

Domain 7: Ethics:

1. Preparer's due diligence for accuracy of representations made to clients and the IRS; reliance on third-party work products.

2. What constitutes practice before the IRS and categories of individuals who may practice.

3. Limits on practice by a registered tax return preparer.

4. Requirement to furnish information to IRS upon request.

5. Prompt disposition of matters before the IRS.

6. Prohibition on receiving assistance from or providing assistance to disciplined practitioners.

7. Rules regarding fees, including contingent fees.

8. Rules in dealing with clients, including return of client records, conflicts of interest, advising on omissions and errors, solicitation (including advertising), and negotiation of taxpayer refund checks.

9. Due diligence standards with respect to tax returns and other documents; standards for signing, advising positions on returns and advising submissions of other documents; advising on penalties; good faith reliance on client information; reasonable inquiries regarding incomplete, inconsistent, incorrect information.

10. Responsibility of individual(s) who have principal authority over a firm’s tax practice.

11. Incompetence and disreputable conduct that can result in disciplinary proceedings.

12. Sanctions that may be imposed under Circular 230.

Why you need Auto insurance | What Auto insurance covers?

2011-09-07T08:52:00.000-07:00

Why you need Auto insurance?

Auto insurance is an important purchase for most drivers. There are three major reasons to buy auto insurance.

1. To protect your assets :Auto insurance provides bodily injury and property damage liability coverage for accidents that happen to others for which you are responsible. The state-required minimum coverage may not be enough to protect you. Auto insurance also may cover physical damage for accident-related repairs to your insured car.

2. To satisfy your lender : If you have a car loan, most lenders require you to have insurance to protect their investment in your car by listing them on your policy. If you let your insurance lapse, your lender will

likely have your car insured. The premium may be much higher (and the coverage much less) than a policy you would buy on your own. The lender can require you to pay this higher premium until you get your own auto insurance again.

3. To follow state laws: All states require you to be able to pay at least a minimum amount for auto accidents. Most people buy liability coverage or Personal Injury Protection (PIP) coverage to meet this requirement.

Some states require no-fault auto insurance. In those states, your insurance company may pay at least some claims regardless of your level of fault for the accident. Ask your insurance agent or the state insurance department whether you are in a no-fault state.

What the policy covers

An auto policy usually covers:

• Liability for injuries and damages to others that you are responsible for

• Uninsured Motorist (UM) for injuries and damages caused by a hit-and-run driver or a driver who has no auto insurance

• Underinsured Motorist (UIM) for injuries and damages when the at-fault driver has insurance but not enough coverage to pay for your losses.

Questions you should ask the agent:

• Are the agent and the insurance company licensed by my state insurance department? For how long? (Your state insurance department can confirm the answers to these questions.)

• What coverage am I required to buy?

• What doesn’t my policy cover?

• What coverage limits meet my needs?

• Should I buy comprehensive and collision coverage? (Compare the premium to what your car is worth.) If so, which deductibles should I choose?

• Are there discounts that will lower my premium?

• What is the deductible for uninsured and underinsured motorist coverage?

• How will my credit history affect my premium?

• How will my driving record affect my premium?

• If I’m in an accident and it wasn’t my fault, how will this affect my insurance?

• If I’m in an accident and it was my fault, how will this affect my insurance?

• If I have an accident, can I use my own repair shop?

IRS-Releases Specifications for Registered Tax Return Preparer Test

2011-09-06T20:36:00.000-07:00

Releases Specifications for Registered Tax Return Preparer Test

The Internal Revenue Service today released the specifications for the competency test individuals must pass to become a Registered Tax Return Preparer.

The test is part of an ongoing effort by the IRS to enhance oversight of the tax preparation industry. Preparers who pass this test, a background check and tax compliance check as well as complete 15 hours of continuing education annually will have a new designation: Registered Tax Return Preparer.

The specifications identify the major topics that will be covered by the test, which will be available starting this fall. Although individuals who already have a provisional preparer tax identification number (PTIN) from the IRS do not have to pass the exam until Dec. 31, 2013, they may take the exam at any time once it is available.

The test will have approximately 120 questions in a combination of multiple choice and true or false format. Questions will be weighted and individuals will receive a pass or fail score, with diagnostic feedback provided to those who fail.

Test vendor Prometric Inc. worked with the IRS and the tax preparer community to develop the test. The time limit for the test is expected to be between two and three hours. The test must be taken at one of the roughly 260 Prometric facilities nationwide.

To assist in test preparation, the following is a list of recommended study materials. This list is not all-encompassing, but a highlight of what the test candidates will need to know.

Publication 17, Your Federal Income Tax
Form 1040, U.S. Individual Income Tax Return
Form 1040 Instructions
Circular 230, Regulations Governing Practice before the Internal Revenue Service (rev. 8/2/11)
Publication 334, Tax Guide for Small Business
Publication 970, Tax Benefits for Education
Publication 1345, Handbook for Authorized IRS e-file Providers
Form 6251, Alternative Minimum Tax – Individuals
Form 6251 Instructions
Form 8879, IRS e-File Signature Authorization

Some reference materials will be available to individuals when they are taking the test. Prometric will provide individuals with Publication 17, Form 1040 and Form 1040 instructions as reference materials.

The fee for the test has not been finalized but is expected to be between $100 and $125, which is separate from the PTIN user fee. Currently there is no limit on the number of times preparers can take the test, but they must pay the fee each time. Individuals must pass the test only once.

Only certain individuals who prepare the Form 1040 series are required to take the test. Attorneys, Certified Public Accounts and Enrolled Agents (EAs) are exempt from testing and continuing education because of their more stringent professional testing and education requirements. Also exempt are supervised employees of attorneys, CPAs, attorneys or EAs who prepare but do not sign and are not required to sign the Form 1040 series returns they prepare and individuals who prepare federal returns other than the Form 1040 series.

Approximately 730,000 return preparers have registered and received PTINs in 2011. Approximately 62 percent do not have professional credentials. The IRS does not yet know how many preparers will fall into other exempt categories, but those individuals will be required to identify themselves when they renew an existing PTIN or obtain a new PTIN beginning in October 2011.

The IRS will notify those preparers who have a testing requirement and provide more details.

Once the test is available, preparers who have on-line accounts at www.irs.gov/ptin can use their accounts to schedule a test time and select a Prometric site.

At the time the current version of Publication 17 went to press, there were certain tax benefits that had not been finalized and several tax benefits were subsequently extended. See Legislative Changes Affecting the 2010 Publication 17 on IRS.gov for the details needed for study purposes.

Tax evaders in US beware | Tax evaders in US - Swiss Bank

2011-09-05T01:08:00.000-07:00

US gives Swiss bank two days to release data on tax evaders

US authorities have given Switzerland until Tuesday to transmit data from tax evaders in the United States who have stashed assets away in Swiss banks,the Sonntags-Zeitung reported on Sunday.

The US has asked for detailed information on American nationals who have hidden their money in Switzerland,the paper said,basing its report on a three-page letter from the US deputy attorney general James Cole,dated August 31,addressed to the Swiss authorities.

The letter concerned Switzerlands second biggest bank,Credit Suisse,as well as around another 10 banks,notably Julius Baer,Wegelin,and the cantonal banks of Zurich and Basel,the Sunday paper said.US authorities want all the data concerning private customers and US foundations which have deposited at least $50,000 in Switzerland between the period of 2002 and July 2010.

This latest request is not the first by US officials.Switzerlands biggest bank UBS was forced to disclose the names of 4,450 US clients for whom it had offered to conceal funds from the eyes of the US tax inspectors.The bank paid a fine of $780 million to avoid losing its banking licence in the US.According to an anonymous banker quoted by SonntagsZeitung,Swiss banks risk a fine of around $2.5 billion to settle this latest tax evasion affair.AFP

Source: Times of india

Tax Relief for Hurricane Irene applies to following states

2011-09-01T21:49:00.000-07:00

WASHINGTON –– The Internal Revenue Service is providing tax relief to individual and business taxpayers impacted by Hurricane Irene.

The IRS announced today that certain taxpayers in North Carolina, New Jersey, New York and Puerto Rico will receive tax relief, and other locations are expected to be added in coming days following additional damage assessments by the Federal Emergency Management Agency (FEMA).

The tax relief postpones certain tax filing and payment deadlines to Oct. 31, 2011. It includes corporations and businesses that previously obtained an extension until Sept. 15, 2011, to file their 2010 returns and individuals and businesses that received a similar extension until Oct. 17. It also includes the estimated tax payment for the third quarter of 2011, which would normally be due Sept. 15.

Full details, including the start date for the relief in various locations and information on how to claim a disaster loss by amending a prior-year tax return, can be found in tax relief announcements for individual states on this website.

The tax relief is part of a coordinated federal response to the damage caused by the hurricane and is based on local damage assessments by FEMA. For information on disaster recovery, individuals should visit disasterassistance.gov.

Tax Relief Available So Far

Filing and payment relief is currently available to taxpayers in federal disaster areas declared in North Carolina, New Jersey, New York State and Puerto Rico. The IRS expects to announce tax relief for taxpayers in other areas as damage assessments continue. The IRS encourages taxpayers and tax practitioners to monitor Tax Relief in Disaster Situations on this website for updates.

So far, IRS filing and payment relief applies to the following counties and municipalities:

In North Carolina: Beaufort, Carteret, Craven, Dare, Hyde, Pamlico and Tyrell;
In New Jersey: Bergen, Essex, Morris, Passaic and Somerset;
In New York: Albany, Delaware, Dutchess, Essex, Greene, Schenectady, Schoharie and Ulster; and

In Puerto Rico: Caguas, Canovanas, Carolina, Cayey, Loiza, Luquillo and San Juan

FAQ on Air Transportation Excise Taxes

2011-09-01T00:09:00.000-07:00

FAQ on Air Transportation Excise Taxes:

Retroactive Reinstatement of the Air Transportation Excise Taxes: Frequently Asked Questions

Q. How are federal passenger air transportation excise taxes (commonly referred to as “ticket taxes”) collected?

A. The tax generally is imposed on the “amount paid” for commercial air transportation. When a person purchases a ticket for air transportation, the airline collects the federal passenger air transportation excise taxes from the purchaser and then later pays the collected amount over to the IRS. The amount of tax collected from the purchaser is shown on the purchaser’s receipt as a separate line item, often labeled “federal taxes.”

Q. What just happened to the FAA excise tax?

A. On July 22, the Federal Aviation Administration budget authority expired and with it, so did the authority for airlines to collect the excise taxes on tickets. On Aug. 5, Congress passed an extension of the FAA authorization, which also retroactively reinstated the excise tax from July 23, 2011. During the roughly two-week lapse, airlines were not authorized to collect the taxes, but the retroactive reinstatement in the law put the taxes back in place as though they had never expired. The IRS is providing relief for airlines and taxpayers who purchased tickets during that two week lapse. This means the IRS will not be retroactively collecting the tax since it was not collected and paid during this two-week period. Airlines had until 12:01 a.m. on Monday, Aug. 8, to resume collection of the ticket taxes.

Q. If I purchased my ticket before July 23, 2011, and traveled on or after July 23, 2011, during the partial-shutdown of the FAA, am I entitled to a refund for the federal air transportation excise taxes that I paid when I purchased the ticket?

A. If you purchased the tickets before July 23, when the lapse of the excise tax initially occurred, and traveled during the partial-shutdown of the FAA, you are not entitled to a refund because of the retroactive reinstatement of the law.

Q. If I purchased my ticket after the tax initially expired and I traveled before it was reinstated, can the airline collect the tax?

A. No, airlines were not authorized to collect the tax during any lapsed period in which the tax did not apply.

If you purchased a ticket between July 23, 2001, and August 7, 2011 — regardless if you flew then or at a later date in time — the airlines were not authorized to collect the tax and so passengers did not pay the excise tax. While the tax was reinstated retroactively by Congress, the IRS has provided relief during this lapse for taxpayers and airlines and will not collect the excise tax covering that period.

Q. If I purchased my ticket after the tax expired and I travel after it was reinstated, will I now have to pay the airline ticket tax since it was reinstated?

A. If you purchased your ticket during the two-week lapse of the tax and plan to travel after the tax was reinstated, you did not pay the airline ticket tax. However, the IRS is providing relief for these taxpayers and will not be collecting the excise tax on this ticket purchased during the lapsed period of time.

Q. Which federal air transportation excise taxes expired at the end of July 22, 2011, and were retroactively reinstated on Aug. 5?

A. The following federal air transportation excise taxes were affected:

The 7.5 percent tax on the base ticket price.
The domestic segment tax of $3.70 per person per segment (a single takeoff and single landing).
The international travel facilities tax of $16.30 per person for flights that begin or end in the U.S., or $8.20 per person for a flight that begins or ends in Alaska or Hawaii.
The 6.25 percent tax on the amount paid for transporting property by air.

Caution: Other taxes and fees, such as state taxes, security fees, passenger facility charges (PFCs) and excess baggage fees, are not affected by the expiration of the taxes listed above.

Tax Relief for Hurricane Irene in Puerto Rico, USA

2011-09-01T00:05:00.000-07:00

Tax Relief for Hurricane Irene in Puerto Rico, USA:

MIAMI — Victims of Hurricane Irene that began on Aug. 21, 2011 in parts of Puerto Rico may qualify for tax relief from the Internal Revenue Service.

The President has declared the following municipalities a federal disaster area: Caguas, Canóvanas, Carolina, Cayey, Loíza, Luquillo, and San Juan. Individuals who reside or have a business in these municipalities may qualify for tax relief.

The declaration permits the IRS to postpone certain deadlines for taxpayers who reside or have a business in the disaster area. For instance, certain deadlines falling on or after Aug. 21, and on or before Oct. 31, have been postponed to Oct. 31, 2011. This includes corporations and other businesses that previously obtained an extension until Sept. 15 to file their 2010 returns, and individuals and businesses that received a similar extension until Oct. 17. It also includes the estimated tax payment for the third quarter, normally due Sept. 15.

In addition, the IRS is waiving the failure-to-deposit penalties for employment and excise tax deposits due on or after Aug. 21, and on or before Sept. 6, as long as the deposits are made by Sept. 6, 2011.

If an affected taxpayer receives a penalty notice from the IRS, the taxpayer should call the telephone number on the notice to have the IRS abate any interest and any late filing or late payment penalties that would otherwise apply. Penalties or interest will be abated only for taxpayers who have an original or extended filing, payment or deposit due date, including an extended filing or payment due date, that falls within the postponement period.

The IRS automatically identifies taxpayers located in the covered disaster area and applies automatic filing and payment relief. But affected taxpayers who reside or have a business located outside the covered disaster area must call the IRS disaster hotline at 1-866-562-5227 to request this tax relief.

Covered Disaster Area

The municipalities listed above constitute a covered disaster area for purposes of Treas. Reg. § 301.7508A-1(d)(2) and are entitled to the relief detailed below.

Affected Taxpayers

Taxpayers considered to be affected taxpayers eligible for the postponement of time to file returns, pay taxes and perform other time-sensitive acts are those taxpayers listed in Treas. Reg. § 301.7508A-1(d)(1), and include individuals who live, and businesses whose principal place of business is located, in the covered disaster area. Taxpayers not in the covered disaster area, but whose records necessary to meet a deadline listed in Treas. Reg. § 301.7508A-1(c) are in the covered disaster area, are also entitled to relief. In addition, all relief workers affiliated with a recognized government or philanthropic organization assisting in the relief activities in the covered disaster area and any individual visiting the covered disaster area who was killed or injured as a result of the disaster are entitled to relief.

Grant of Relief

Under section 7508A, the IRS gives affected taxpayers until Oct. 31 to file most tax returns (including individual, corporate, and estate and trust income tax returns; partnership returns, S corporation returns, and trust returns; estate, gift, and generation-skipping transfer tax returns; and employment and certain excise tax returns), or to make tax payments, including estimated tax payments, that have either an original or extended due date occurring on or after Aug. 21 and on or before Oct. 31.

The IRS also gives affected taxpayers until Oct. 31 to perform other time-sensitive actions described in Treas. Reg. § 301.7508A-1(c)(1) and Rev. Proc. 2007-56, 2007-34 I.R.B. 388 (Aug. 20, 2007), that are due to be performed on or after Aug. 21 and on or before Oct. 31.

This relief also includes the filing of Form 5500 series returns, in the manner described in section 8 of Rev. Proc. 2007-56. The relief described in section 17 of Rev. Proc. 2007-56, pertaining to like-kind exchanges of property, also applies to certain taxpayers who are not otherwise affected taxpayers and may include acts required to be performed before or after the period above.

The postponement of time to file and pay does not apply to information returns in the W-2, 1098, 1099 series, or to Forms 1042-S or 8027. Penalties for failure to timely file information returns can be waived under existing procedures for reasonable cause. Likewise, the postponement does not apply to employment and excise tax deposits. The IRS, however, will abate penalties for failure to make timely employment and excise tax deposits due on or after Aug. 21 and on or before Sept. 6 provided the taxpayer makes these deposits by Sept. 6.

Casualty Losses

Affected taxpayers in a federally declared disaster area have the option of claiming disaster-related casualty losses on their federal income tax return for either this year or last year. Claiming the loss on an original or amended return for last year will get the taxpayer an earlier refund, but waiting to claim the loss on this year’s return could result in a greater tax saving, depending on other income factors.

Individuals may deduct personal property losses that are not covered by insurance or other reimbursements. For details, see Form 4684 and its instructions.

Affected taxpayers claiming the disaster loss on last year’s return should put the Disaster Designation “Puerto Rico/Hurricane Irene” at the top of the form so that the IRS can expedite the processing of the refund.

Other Relief

The IRS will waive the usual fees and expedite requests for copies of previously filed tax returns for affected taxpayers. Taxpayers should put the assigned Disaster Designation in red ink at the top of Form 4506, Request for Copy of Tax Return, or Form 4506-T, Request for Transcript of Tax Return, as appropriate, and submit it to the IRS.

Affected taxpayers who are contacted by the IRS on a collection or examination matter should explain how the disaster impacts them so that the IRS can provide appropriate consideration to their case.

Taxpayers may download forms and publications from the official IRS website, irs.gov, or order them by calling 1-800-TAX-FORM (1-800-829-3676). The IRS toll-free number for general tax questions is 1-800-829-1040.

Small business owners should main following records

2011-08-28T07:38:00.000-07:00

If you are a small business owner, you must keep all your employment tax records for at least four years after the tax becomes due or is paid, whichever is later. Examples of important documents business owners should keep Include:

Gross receipts: Cash register tapes, bank deposit slips, receipt books, invoices, credit card charge slips and Forms 1099-MISC
Proof of purchases: Canceled checks, cash register tape receipts, credit card sales slips and invoices
Expense documents: Canceled checks, cash register tapes, account statements, credit card sales slips, invoices and petty cash slips for small cash payments
Documents to verify your assets: Purchase and sales invoices, real estate closing statements and canceled checks

1040 filers must keep following records | Tax saving tips for 1040 filers

2011-08-28T07:37:00.000-07:00

Individual taxpayers should usually keep the following records supporting items on their tax returns for at least three years:

Bills
Credit card and other receipts
Invoices
Mileage logs
Canceled, imaged or substitute checks or any other proof of payment
Any other records to support deductions or credits you claim on your return

You should normally keep records relating to property until at least three years after you sell or otherwise dispose of the property. Examples include:

A home purchase or improvement
Stocks and other investments
Individual Retirement Arrangement transactions
Rental property records

Obama, Panetta urge caution, preparedness for coming storm

2011-08-27T09:24:00.000-07:00

WASHINGTON (8/26/11) - Millions of people along the eastern seaboard should be preparing to face what may be a historic hurricane, President Barack Obama said today.

"All indications point to this being a historic hurricane," he said, speaking to the nation from Martha's Vineyard, Mass.

"Although we can't predict with perfect certainty the impact of Irene over the next few days," the president said, "the federal government has spent the better part of the last week working closely with officials in communities that could be affected by this storm to see to it that we are prepared."

Now is the time, he added, "for residents of these communities, in the hours that remain, to do the same."

In its latest forecast for the category 2 Irene, the National Hurricane Center said the hurricane's core will pass well off the Georgia coast today, approach the North Carolina coast tonight, and pass near or over the North Carolina coast tomorrow.

Tomorrow night, center officials said, the hurricane is forecast to move near or over the mid-Atlantic coast.

"As Hurricane Irene churns in the waters of the Atlantic," Defense Secretary Leon E. Panetta wrote today in a message to service members, "I wanted to take this opportunity to encourage all of you who could be impacted by this storm to take all necessary precautions."

As people along the East Coast make personal preparations, the secretary added, "this department is already working closely with [the Federal Emergency Management Agency] to provide support to the American people."

Panetta directed the U.S. Northern Command to support FEMA, and supplies are being staged at incident support bases at Fort Bragg in North Carolina, Joint Base McGuire-Dix-Lakehurst in New Jersey and Westover Air Reserve Base and Fort Devens in Massachusetts.

For service members who are away from home as the storm approaches, Panetta added, "as secretary of defense, you have my word that I will do everything possible to take care of your families who might be in the path of the storm."

Although military spouses and families "are some of the strongest and most resilient people I have had the privilege to meet," the secretary added, "I want you to know that they won't be alone in the wake of the storm."

Panetta said he has directed the service chiefs to ensure that all appropriate organizations are poised and ready to proactively provide needed support.

In a briefing this morning about the status of Hurricane Irene, U.S. Homeland Security, FEMA and other officials discussed the latest forecasts and urged East Coast residents to prepare for the worst.

"The president has directed us to ensure that all needed resources are available," Department of Homeland Security Secretary Janet Napolitano said, "and that we coordinate closely with our state and local partners ... [and] we are doing just that."

FEMA "has its national incident management assistance teams already located in a number of the states," Napolitano added. "... That will ensure we are seamless in our response and recovery."

Bill Read, director of the National Oceanic and Atmospheric Administration's National Hurricane Center, described the hurricane's path.

"We have hurricane warnings extending all the way up from the North Carolina-South Carolina border to Sandy Hook in New Jersey, and a hurricane watch is now from there up to the mouth of the Merrimac River in New England," Read said.

"The biggest concerns will be today for the Carolinas, into the Tidewater [Va. area] going into tomorrow and then further up the coast," Read said, adding, "We're going to have a coastal issue as well as an inland issue."

U.S. Northern Command is coordinating Defense Department support to FEMA and state and local response efforts to Hurricane Irene's East Coast landfall.

Northcom, the command reported, is now supporting 13 FEMA-requested mission assignments.

In the past 24 hours, Northcom activated defense coordinating officers and defense coordinating elements from U.S. Army North to support FEMA in Virginia, New Jersey and New York, and at FEMA's regional response coordination centers.

The centers in Boston, New York, Philadelphia and Atlanta are operating at heightened levels to ensure support to states affected by severe weather.

The U.S. Army Corps of Engineers is providing emergency, public works and engineering support to two of FEMA's regional centers. The Corps of Engineers also provided FEMA a generator-staging plan and is deploying emergency teams to support state and federal coordinating officers.

Northcom is providing 18 utility helicopters for potential hurricane search-and-rescue operations and has asked the Joint Staff to place three pararescue teams, a civil support planning team and communications support packages on a 24-hour prepare-to-deploy order.

At FEMA's request, Northcom already had sent coordinating officers and staff to Puerto Rico, where Irene made landfall Aug. 21, and North Carolina, and sent coordinating officers and emergency preparedness liaison officers to FEMA regional centers.

Obama declared a state of emergency for North Carolina today and has ordered federal aid to supplement the state and local response to the hurricane. The National Guard Bureau reports that 42 North Carolina National Guard members are responding.

"Today [the hurricane] has gotten closer [to the coast] and the storm is growing," Read said.

"Those two factors have led to a much higher probability of tropical-storm-force winds, very likely all the way from the Carolinas to southern New England ... and then a good chance well up into interior New England," he added.

Read said to expect "a huge swath of 5 to 10 inches of rain through the densely populated northeast corridor where we've had almost 300 to 600 percent of normal rain in the last 30 days."

Rain on saturated ground, he said, contributes to an increased risk of flash flooding and river flooding, and increases the chances that high winds will bring trees down.

FEMA Administrator Craig Fugate said the accurate forecasts and efficient hurricane preparations do not mean there be will no damages from the storm.

"It does not mean that power won't go out over large areas and that it will take some time to get things back to normal," he said.

"The one thing we can change the outcome on is loss of life," Fugate added. "That's why evacuation orders that are being issued in the coastal areas are key.

Source;American Forces Press Service

hurricane irene update | States prone to hurricane irene

2011-08-27T09:16:00.000-07:00

Obama has declared state of emergencies for North Carolina, Virginia, New Jersey, New York, Connecticut and Massachusetts. Hurricane Irene battered the North Carolina coast with wind and rain Saturday leaving around 200,000 people are without power, wreaking havoc as it began a potentially catastrophic run up the U.S. East Coast.

More than 2 million people were told to flee and the New York City transit system was shutting down for the first time because of a natural disaster.Hurricane-force winds first arrived near Jacksonville, North Carolina, at dawn. A little more than an hour later, the storm's center passed near the southern tip of North Carolina's Outer Banks. At the resort town of Nags Head, winds whipped heavy rain, tall waves covered the beach and the surf pushed up to the backs of some houses and hotels.

Hurricane warnings were issued from North Carolina to New York and farther north to the islands of Nantucket and Martha's Vineyard off Massachusetts. Evacuation orders covered at least 2.3 million people, including 1 million in New Jersey, 315,000 in Maryland, 300,000 in North Carolina, 200,000 in Virginia and 100,000 in Delaware.

Precautions during Hurricane:

On Hurricane "Warning"- issued once it is established that a hurricane is expected to strike within 24 hours.

Pay no attention to rumours. Rely on official advice and warnings. Stay tuned to your radio.
Take cover as soon as possible; leave low lying areas that might be swept away by storm surges. Do not run the risk of being marooned.
See that livestock has plenty of food and water, and fasten them securely in suitable buildings; if not leave them untethered.
Board up windows or protect them with storm shutters or tape.
Check your battery powered equipment and emergency cooking facilities.
Disconnect the intake of your cistern and block the outlet as soon as possible otherwise the water in the cistern may become contaminated.
Get in extra food.
Be calm. Your ability to do so may inspire and help others.
Plan your time before the storm arises and avoid the last minute hurry which might leave you stranded or unprepared.
Take in atleast several days supply of sterilised drinking water, and water for other purposes.
Secure outdoor objects that might be blown away. Anchor them or store them inside before the storm.
Harvest and store all nearly ripened fruits, as they become a source of food as well as prevent them from becoming missiles and damaging property during the storm.
Moore your boats securely before the storm arrives, or move it to a designated area, until the storm has died.
Keep you car fuelled.

Safety tips from http://www.avirtualdominica.com/safetytips.htm

Trade in US indices from India | American Share market in india

2011-08-26T01:04:00.000-07:00

Trade in US indices from India:

Indian Traders will be able to bet on US indices sitting on their desks here from next week.The National Stock Exchange (NSE) is set to launch equity derivative contracts on Americas main indices S&P 500 and Dow Jones Industrial Average (DJIA) from Monday.The bourse will offer futures and options (F&O ) contracts on S&P 500 while only futures contracts on Dow.

There will be monthly and quarterly contracts on both these indices that will expire on the third Friday of the expiry month,the NSE said.The exchanges derivative products on Indian securities expire on the last Thursday of every month.For S&P futures and options contracts,the lot size will be 250 units while it will be 25 for Dow futures.

This means if the S&P index is at 1000,the notional value of a lot would be.2,50,000.The NSE will not impose transaction charges on these contracts done till February 29,2012,in its attempts to drive trader participation in them.But analysts feel these products may take some time to take off in a big way.

Big traders will come in only once liquidity improves, said Siddarth Bhamre,head-derivatives,Angel Broking.NSE officials have been meeting brokers,of late,on how to boost participation in these products,said market sources.These products will interest savvy traders,who have been unable to participate in derivatives contracts on overseas bourses,because of the Reserve Bank of Indias restrictions,analysts said.The central bank,which allows Indian investors to invest up to $200,000 in overseas assets,does not allow to bet on derivatives overseas without buying the underlying.Once volumes go up,smart traders will go for pair trades involving Indian and US contracts here, Bhamre said.

Source: economic times

Information Technology (Reasonable security practices and procedures and sensitive personal data or information) Rules, 2011

2011-08-26T00:57:00.000-07:00

MINISTRY OF COMMUNICATIONS AND INFORMATION TECHNOLOGY

(Department of Information Technology)

NOTIFICATION

New Delhi, the 11th April, 2011

G.S.R. 313(E).—In exercise of the powers conferred by clause (ob) of subsection (2) of section 87 read with section 43A of the Information Technology Act,2000 (21 of 2000), the Central Government hereby makes the following rules,namely.--

1. Short title and commencement — (1) These rules may be called the Information Technology (Reasonable security practices and procedures and sensitive personal data or information) Rules, 2011.

(2) They shall come into force on the date of their publication in the Official Gazette.

2. Definitions — (1) In these rules, unless the context otherwise requires,--

(a) "Act" means the Information Technology Act, 2000 (21 of 2000);

(b) "Biometrics" means the technologies that measure and analyse human body characteristics, such as 'fingerprints', 'eye retinas and irises', 'voice patterns',"facial patterns', 'hand measurements' and 'DNA' for authenticationpurposes;

(d) "Cyber incidents" means any real or suspected adverse event in relation to cyber security that violates an explicitly or implicitly applicable security policy resulting in unauthorised access, denial of service or disruption,

unauthorised use of a computer resource for processing or storage of information or changes to data, information without authorisation;

(e) "Data" means data as defined in clause (o) of sub-section (1) of section 2 of the Act;

(f) "Information" means information as defined in clause (v) of sub-section (1) of section 2 of the Act;

(g) "Intermediary" means an intermediary as defined in clause (w) of sub-section (1) of section 2 of the Act;

(h) "Password" means a secret word or phrase or code or passphrase or secret key, or encryption or decryption keys that one uses to gain admittance or access to information;

(i) "Personal information" means any information that relates to a natural person, which, either directly or indirectly, in combination with other information available or likely to be available with a body corporate, is capable of identifying such person.

(2) All other words and expressions used and not defined in these rules but defined in the Act shall have the meanings respectively assigned to them in the Act.

3. Sensitive personal data or information.— Sensitive personal data or information of a person means such personal information which consists of information relating to;—

(i) password;

(ii) financial information such as Bank account or credit card or debit card or

other payment instrument details ;

(iii) physical, physiological and mental health condition;

(iv) sexual orientation;

(v) medical records and history;

(vi) Biometric information;

(vii) any detail relating to the above clauses as provided to body corporate for

providing service; and

(viii) any of the information received under above clauses by body corporate for

processing, stored or processed under lawful contract or otherwise:

provided that, any information that is freely available or accessible in public domain

or furnished under the Right to Information Act, 2005 or any other law for the time being in

force shall not be regarded as sensitive personal data or information for the purposes of

these rules.

4. Body corporate to provide policy for privacy and disclosure of information.— (1) The body corporate or any person who on behalf of body corporate collects, receives, possess, stores, deals or handle information of provider of information, shall provide a privacy policy for handling of or dealing in personal information including sensitive personal data or information and ensure that the same are available for view by such

providers of information who has provided such information under lawful contract. Such policy shall be published on website of body corporate or any person on its behalf and shall provide for—

(i) Clear and easily accessible statements of its practices and policies;

(ii) type of personal or sensitive personal data or information collected under rule

(iii) purpose of collection and usage of such information;

(iv) disclosure of information including sensitive personal data or information as provided in rule 6;

(v) reasonable security practices and procedures as provided under rule 8.

5. Collection of information.— (1) Body corporate or any person on its behalf shall obtain consent in writing through letter or Fax or email from the provider of the sensitive personal data or information regarding purpose of usage before collection of such information.

(2) Body corporate or any person on its behalf shall not collect sensitive personal data or information unless —

(a) the information is collected for a lawful purpose connected with a function or activity of the body corporate or any person on its behalf; and

(b) the collection of the sensitive personal data or information is considered necessary for that purpose.

(3) While collecting information directly from the person concerned, the body corporate or any person on its behalf snail take such steps as are, in the circumstances, reasonable to ensure that the person concerned is having the knowledge of —

(a) the fact that the information is being collected;

(b) the purpose for which the information is being collected;

(d) the name and address of —

(i) the agency that is collecting the information; and

(ii) the agency that will retain the information.

(4) Body corporate or any person on its behalf holding sensitive personal data or information shall not retain that information for longer than is required for the purposes for which the information may lawfully be used or is otherwise required under any other law for the time being in force..

(5) The information collected shall be used for the purpose for which it has been collected.

(6) Body corporate or any person on its behalf permit the providers of information, as and when requested by them, to review the information they had provided and ensure that any personal information or sensitive personal data or information found to be inaccurate or deficient shall be corrected or amended as feasible:

Provided that a body corporate shall not be responsible for the authenticity of the personal information or sensitive personal data or information supplied by the provider of information to such boy corporate or any other person acting on behalf of such body corporate.

(7) Body corporate or any person on its behalf shall, prior to the collection of information including sensitive personal data or information, provide an option to the provider of the information to not to provide the data or information sought to be collected. The provider of information shall, at any time while availing the services or

otherwise, also have an option to withdraw its consent given earlier to the body corporate. Such withdrawal of the consent shall be sent in writing to the body corporate. In the case of provider of information not providing or later on withdrawing his consent, the body corporate shall have the option not to provide goods or services for which the said information was sought.

(8) Body corporate or any person on its behalf shall keep the information secure as provided in rule 8.

(9) Body corporate shall address any discrepancies and grievances of their provider of the information with respect to processing of information in a time bound manner. For this purpose, the body corporate shall designate a Grievance Officer and publish his name and contact details on its website. The Grievance Officer shall redress the grievances or provider of information expeditiously but within one month ' from the

date of receipt of grievance.

6. Disclosure of information.— (1) Disclosure of sensitive personal data or information by body corporate to any third party shall require prior permission from the provider of such information, who has provided such information under lawful contract or otherwise, unless such disclosure has been agreed to in the contract between the body corporate and provider of information, or where the disclosure is necessary for compliance of a legal obligation: Provided that the information shall be shared, without obtaining prior consent from provider of information, with Government agencies mandated under the law to obtain information including sensitive personal data or information for the purpose of verification of identity, or for prevention, detection, investigation including cyber incidents, prosecution, and punishment of offences. The Government agency

shall send a request in writing to the body corporate possessing the sensitive personal data or information stating clearly the purpose of seeking such information. The Government agency shall also state that the information so obtained shall not be published or shared with any other person.

(2) Notwithstanding anything contain in sub-rule (1), any sensitive personal data on Information shall be disclosed to any third party by an order under the law for the time being in force.

(3) The body corporate or any person on its behalf shall not publish the sensitive personal data or information.

(4) The third party receiving the sensitive personal data or information from body corporate or any person on its behalf under sub-rule (1) shall not disclose it further.

7. Transfer of information.-A body corporate or any person on its behalf may transfer sensitive personal data or information including any information, to any other body corporate or a person in India, or located in any other country, that ensures the same level of data protection that is adhered to by the body corporate as provided for under these Rules. The transfer may be allowed only if it is necessary for the performance of the lawful contract between the body corporate or any person on its behalf and provider of information or where such person has consented to data transfer.

8. Reasonable Security Practices and Procedures.— (1) A body corporate or a person on its behalf shall be considered to have complied with reasonable security practices and procedures, if they have implemented such security practices and standards and have a comprehensive documented information security programme and information security policies that contain managerial, technical, operational and physical security control

measures that are commensurate with the information assets being protected with the nature of business. In the event of an information security breach, the body corporate or a person on its behalf shall be required to demonstrate, as and when called upon to do so by the agency mandated under the law, that they have implemented security control measures as per their documented information security programme and information security policies.

(2) The international Standard IS/ISO/IEC 27001 on "Information Technology - Security Techniques - Information Security Management System - Requirements" is one such standard referred to in sub-rule (1).

(3) Any industry association or an entity formed by such an association, whose members are self-regulating by following other than IS/ISO/IEC codes of best practices for data protection as per sub-rule(1), shall get its codes of best practices duly approved and notified by the Central Government for effective implementation.

(4) The body corporate or a person on its behalf who have implemented either IS/ISO/IEC 27001 standard or the codes of best practices for data protection as approved and notified under sub-rule (3) shall be deemed to have complied with reasonable security practices and procedures provided that such standard or the codes of best practices have been certified or audited on a regular basis by entities through independent auditor, duly approved by the Central Government. The audit of reasonable security practices and

procedures shall be carried cut by an auditor at least once a year or as and when the body corporate or a person on its behalf undertake significant upgradation of its process and computer resource.

G.S.R. 314(E).— In exercise of the powers conferred by clause (zg) of subsection (2) of section 87 read with sub-section (2) of section 79 of the Information Technology Act, 2000 (21 of 2000), the Central Government hereby makes the following rules, namely.- 1. Short title and commencement — (1) These rules may be called the Information

Technology (Intermediaries guidelines) Rules, 2011.

(2) They shall come into force on the date of their publication in the Official Gazette

2. Definitions — (1) In these rules, unless the context otherwise requires,--

(a) "Act" means the Information Technology Act, 2000 (21 of 2000);

(b) "Communication link” means a connection between a hyperlink or graphical element (button, drawing, image) and one or more such items in the same or different electronic document wherein upon clicking on a hyperlinked item, the user is automatically transferred to the other end of the hyperlink which could be another

document website or graphical element.

(d) "Cyber security incidnt” means any real or suspected adverse event in relation to cyber security that violates an explicity or implicity applicable security policy resulting in unauthotrised access, denial of service or disruption, unauthorised use of a computer resource for processing or storage of information or changes to data, information without authorisation;

(e) "Data" means data as defined in clause (o) of sub-section (1) of section 2 of the Act; (f) "Electronic Signature" means electronic signature as defined in clause (ta) of sub- section (1) of section 2 of the Act;

(g) "Indian Computer Emergency Response Team” means the Indian Computer Emergency Response Team appointed under sub section (1) section 70 (B) of the Act;

(h) “Information” means information as defined in clause (v) of sub-section (1) of section 2 of the Act;

(i) “Intermediary” means an intermediary as defined in clause (w) of sub-section (1) of section 2 of the Act;

(j) "User" means any person who access or avail any computer resource of intermediary for the purpose of hosting, publishing, sharing, transacting, displaying or uploading information or views and includes other persons jointly participating in using the computer resource of an intermediary.

(2) Ail other words and expressions used and not defined in these rules but defined in the Act shall have the meanings respectively assigned to them in the Act.

3. Due diligence to he observed by intermediary — The intermediary shall observe following due diligence while discharging his duties, namely : —

(1) The inte rmediary shal l publ ish the rules and regulat i ons , pr i vacy pol icy and user agreement for access-or usage of t he i ntermedia r y's comput er resou rce by any person .

(2) Such rul es and regul at ions, te rms and condi t ions o r user ag reement shal l inform the users of compute r resource not to host , display, upload, modi f y ,

publish, t ransm i t , upda te or sha re any in fo rmat ion that —

(a) belongs to another pe rson and t o which the user does not have any right to;

(b) is grossl y harmf ul , harassi ng, blasphemous de famato r y, obscene , pornographic, paedophi l ic, l ibel lous, i nvasive of another 's pr ivacy, hatef ul , or racial l y , ethnica l l y object i onable, dispa r aging, rel at ing or encou raging money launde r ing o r gambl ing, or othe rwi se unlaw ful in any

manne r whateve r ;

(d) inf r inges any pat ent , t rademark, copy r ight or other proprietary rights;

(e) viol ates any l aw fo r the t i me being in force ;

(f) decei ves o r misl eads the add ressee abou t t he or igi n of such messages or communication

nature;

(g) impersonat e ano the r person ;

(h) contains software viruses or any other computer code, files or programs designed to interrupt, destroy or l imi t the funct ional i ty of any computer resource;

(i) threatens the unity, integrity, defence, security or sovereignty of India, friendly relations with foreign states, or public order or causes incitement to the commission of any cognisable offence or prevents investigation of any offence oris insulting any other nation

(3) The intermediary shall not knowingly host or publish any information or shall not initiate the transmission, select the receiver of transmission, and select or modify the information contained in the transmission as specified in sub-rule (2): provided that the following actions by an intermediary shall not amount to hosing,

publishing, editing or storing of any such information as specified in sub-rule: (2) —

(a) temporary or transient or intermediate storage of information automatically within the computer resource as an intrinsic feature of such computer resource,involving no exercise of any human editorial control, for onward transmission or communication to another computer resource;

(b) removal of access to any information, data or communication link by an intermediary after such information, data or communication link comes to the actual knowledge of a person authorised by the intermediary pursuant to any order or direction as per the provisions of the Act;

(4) The intermediary, on whose computer system the information is stored or hosted or published, upon obtaining knowledge by itself or been brought to actual knowledge by an affected person in writing or through email signed with electronic signature about any such information as mentioned in sub-rule (2) above, shall act within thirty six hours and where applicable, work with user or owner of such information to disable such information that is in contravention of sub-rule (2). Further the intermediary shall preserve such information and associated records for at least ninety days for investigation purposes, (5) The Intermediary shall inform its users that in case of non-compliance with rules and regulations, user agreement and privacy policy for access or usage of intermediary computer resource, the Intermediary has the right to immediately terminate the access or usage lights of the users to the computer resource of Intermediary and remove noncompliant information..

(6) The intermediary shall strictly follow the provisions of the Act or any other laws for the time being in force.

(7) When required by lawful order, the intermediary shall provide information or any such assistance to Government Agencies who are lawfully authorised forinvestigative, protective, cyber security activity. The information or any such assistance shall be provided for the purpose of verification of identity, or for prevention, detection, investigation,prosecution, cyber security incidents and punishment of offences under any law for the timebeing in force, on a request in writing staling clearly the purpose of seeking such information or

any such assistance.

(8) The intermediary shall take all reasonable measures to secure its computer resource and information contained therein following the reasonable security practices and procedures as prescribed in the Information Technology (Reasonable security practices and procedures and sensitive personal Information) Rules, 2011.

(9) The intermediary shall report cyber security incidents and also share cyber security incidents related information with the Indian Computer Emergency Response Team.

(10) The intermediary shall not knowingly deploy or install or modify the technical configuration of computer resource or become party to any such act which may change or has the potential to change the normal course of operation of the computer resource than what it is supposed to "perform thereby circumventing any law for the time being in force:provided that the intermediary may develop, produce, distribute or employ

technological means for the sole purpose of performing the acts of securing the computer resource and information contained therein.

(11) The intermediary shall publish on its website the name of the Grievance Officer and his contact details as well as mechanism by which users or any victim who suffers as a result of access or usage of computer resource by any person in violation of rule 3 can notify their complaints against such access or usage of computer resource of the intermediary or other matters pertaining to the computer resources made available by it. The Grievance Officer shall redress the complaints within one month from the date of receipt of complaint.

New data protection rules wont apply to outsourcing providers located in India

2011-08-26T00:34:00.000-07:00

New data protection rules wont apply to outsourcing providers located in India :

Govt clarifies new data protection rules (as provided under 43A of IT ACT) wont apply to outsourcing providers located in India.

It has clarified that the new rules wont apply to outsourcing providers located in India.After Nasscoms submission,the government this week issued a clarification stating that BPOs located in India will be governed only by specific contracts signed with their global and Indian customers.

The rules,in their previous form,were impacting a large number of BPOs which collect credit card or financial information from companies and individuals in US or Europe.Sensitive information here refers to physical,physiological and mental health condition,medical records and history.All medical transcription firms operating out of India have to have access to medical records of patients in US.The new section 43A of the Indian IT Act stated that a corporate shall have to obtain permission through letter or fax or email from each client before collection of sensitive information.Thus,BPOs would have to inform the client regarding purpose of usage before collection of such information,if they went by the IT rules 2011.Nasscom and Data Security Council of India (DSCI) have welcomed the clarification issued by the Ministry of Communications and Information Technology,on the notified Rules under section 43A of the IT Act.The government has added that consent can now given by any mode of electronic communication,such as SMS or a call.The rules issued recently had created possible interpretation issues for outsourcing companies.

As per the ACT Sensitive personal data or information.— Sensitive personal data or information of

a person means such personal information which consists of information relating to;—

(i) password;

(ii) financial information such as Bank account or credit card or debit card or

other payment instrument details ;

(iii) physical, physiological and mental health condition;

(iv) sexual orientation;

(v) medical records and history;

(vi) Biometric information;

(vii) any detail relating to the above clauses as provided to body corporate for

providing service; and

(viii) any of the information received under above clauses by body corporate for processing, stored or processed under lawful contract or otherwise: provided that, any information that is freely available or accessible in public domain or furnished under the Right to Information Act, 2005 or any other law for the time being in force shall not be regarded as sensitive personal data or information for the purposes of

these rules.

There is always a rule for such sensitive information which will provide boom to the development of BPO industry where in lot of personal data get transferred from US and other countries to India for transaction purpose.

How to read IRS notice? | IRS notice handling step

2011-08-25T00:45:00.001-07:00

Every year the Internal Revenue Service sends millions of letters and notices to taxpayers, but that doesn’t mean you need to worry. Here are eight things every taxpayer should know about IRS notices – just in case one shows up in your mailbox.

Don’t panic. Many of these letters can be dealt with simply and painlessly.
There are number of reasons the IRS sends notices to taxpayers. The notice may request payment of taxes, notify you of a change to your account or request additional information. The notice you receive normally covers a very specific issue about your account or tax return.
Each letter and notice offers specific instructions on what you need to do to satisfy the inquiry.
If you receive a correction notice, you should review the correspondence and compare it with the information on your return.
If you agree with the correction to your account, usually no reply is necessary unless a payment is due.
If you do not agree with the correction the IRS made, it is important that you respond as requested. Write to explain why you disagree. Include any documents and information you wish the IRS to consider, along with the bottom tear-off portion of the notice. Mail the information to the IRS address shown in the lower left part of the notice. Allow at least 30 days for a response.
Most correspondence can be handled without calling or visiting an IRS office. However, if you have questions, call the telephone number in the upper right corner of the notice. Have a copy of your tax return and the correspondence available when you call.
It’s important that you keep copies of any correspondence with your records.

Earthquake in NJ, USA, 5.8 magnitude |

2011-08-24T05:08:00.001-07:00

California , with a 5.8 magnitude earthquake in central Virginia that was felt in New Jersey

Consent letter format for minor children to travel | Travel tips for child in US

2011-08-22T02:49:00.000-07:00

Format of consent letter:

CONSENT FOR MINOR CHILDREN TO TRAVEL

Date:_____________________

I (we):______________________________________________________________

authorize my/our minor child(ren):___________________________________________

to travel to:_________________________________ on:_________________________

aboard Airline/Flight Number:________________________________________

and/resort :_____________________________________________ with:

____________________________________________________________. Their expected

date of return is _______________________.

In addition, I (we) authorize:______________________________________ to consent

to any necessary routine or emergency medical treatment during the aforementioned trip.

Signed:_________________________________ (Parent)

Address:________________________________________

_______________________________________________

Telephone:______________________________________

Sworn to and signed before me, a Notary Public,

this _______ day of _______________, 20____

________________________________________

Notary Public Signature and Seal

Why this letter is required?

For single (divorced, widowed, or simply married, but solo) parents, grandparents, or family friends taking children on a vacation, there is an often overlooked planning step that can end a vacation before it begins the permission letter.

Airlines and immigration agents can deny minor children initial boarding or entry to foreign countries without proper proof of identification and citizenship and a permission letter from absent or non-custodial parents.

Proof of identification and citizenship is simple to obtain a passport. The permission letter is a bit more vexing since most people aren't aware of the necessity to have it, let alone what it should include

If you neglect to obtain this Airlines/ Immigration authority maynot allow you to board the flight. This letter not needed if both parents are travelling with the child . Only if either mother or father travelling with the child this consent letter is needed.

How to apply for VISA to india online? | Get visa to india by post

2011-08-22T00:54:00.000-07:00

One can apply for Visa to india either by post or in person. Generally in person applying people can collect the stampped passport on the same evening or next day in person.

Documents required:- (For US residents)

Original, signed United States passport with at least 6 months of remaining validity.

Passport-type photographs: 2

Payment Authorization. Complete and sign the Credit Card Authorization Form.

Driver's license. Copy of driver's license, state issued ID, or major utility bill (Water, Gas, Electric, Sewage), showing the applicant's name and current address. The address must not contain a PO Box.

Marriage Certificate. If the applicant's name has changed as the result of marriage, a copy of the applicant's marriage license.

Additional required documents for minors (under 18):

- Application Form. The application form must be signed by both parents.

- Birth Certificate. A photocopy of the applicant's birth certificate. The birth certificate must be the "long form" certificate which shows the names and nationalities of the applicant's parents. Applicants born outside of the US who cannot obtain a copy of their birth certificate may submit a copy of an official document issued by Government authorities, provided it shows their personal particulars like name, date of birth, parents names, and nationality. Foreign language documents must be accompanied by a notarized English translation.

- Parents' Passport Copies. A copy of the information pages of both parents' signed passports.

- Parents' Driver's licenses. A copy of both parents' driver's licenses.

IMPORTANT: The passport MUST contain at least two blank visa pages in order for the visa to be issued.

Apply for Indian Visa Online

To track the status of your Passport

Married US citizen and Tax tips

2011-08-21T01:21:00.000-07:00

Notify the Social Security Administration Report any name change to the Social Security Administration so your name and Social Security number will match when you file your next tax return. File a Form SS-5, Application for a Social Security Card, at your local SSA office. The form is available on SSA’s website at www.ssa.gov, by calling 800-772-1213 or at local offices.
Notify the IRS if you move If you have a new address you should notify the IRS by sending Form 8822, Change of Address. You may download Form 8822 from www.IRS.gov or order it by calling 800–TAX–FORM (800–829–3676).
Notify the U.S. Postal Service You should also notify the U.S. Postal Service when you move so it can forward any IRS correspondence or refunds.
Notify your employer Report any name and address changes to your employer(s) to make sure you receive your Form W-2, Wage and Tax Statement, after the end of the year.
Check your withholding If both you and your spouse work, your combined income may place you in a higher tax bracket. You can use the IRS Withholding Calculator available on www.irs.gov to assist you in determining the correct amount of withholding needed for your new filing status. The IRS Withholding Calculator will give you the information you need to complete a new Form W-4, Employee's Withholding Allowance Certificate. You can fill it out and print it online and then give the form to your employer(s) so they withhold the correct amount from your pay.
Select the right tax form Choosing the right individual income tax form can help save money. Newly married taxpayers may find that they now have enough deductions to itemize on their tax returns. Itemized deductions must be claimed on a Form 1040, not a 1040A or 1040EZ.
Choose the best filing status A person’s marital status on Dec. 31 determines whether the person is considered married for that year. Generally, the tax law allows married couples to choose to file their federal income tax return either jointly or separately in any given year. Figuring the tax both ways can determine which filing status will result in the lowest tax, but usually filing jointly is more beneficial.

Interest Rates Decrease for the Fourth Quarter of 2011

2011-08-18T08:48:00.000-07:00

Interest Rates Decrease for the Fourth Quarter of 2011:

WASHINGTON – The Internal Revenue Service today announced that interest rates will decrease for the calendar quarter beginning Oct. 1, 2011. The rates will be:

• three (3) percent for overpayments [two (2) percent in the case of a corporation];

• three (3) percent for underpayments;

• five (5) percent for large corporate underpayments; and

• zero and one-half (0.5) percent for the portion of a corporate overpayment exceeding $10,000.

Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis. For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 percentage points. Generally, in the case of a corporation, the underpayment rate is the federal short-term rate plus 3 percentage points and the overpayment rate is the federal short-term rate plus 2 percentage points.

The rate for large corporate underpayments is the federal short-term rate plus 5 percentage points. The rate on the portion of a corporate overpayment of tax exceeding $10,000 for a taxable period is the federal short-term rate plus one-half (0.5) of a percentage point.

The interest rates announced today are computed from the federal short-term rate during July 2011 to take effect Aug. 1, 2011, based on daily compounding.

Uniform traffic ticket-NEW YORK STATE POLICE

2011-08-17T05:42:00.000-07:00

You may happen to get this spam mails from automailer.-093@nyc.gov with one zipped attachment and with content as :

New York State — Department of Motor Vehicles

UNIFORM TRAFFIC TICKET

POLICE AGENCY

NEW YORK STATE POLICE>

Local Police Code

THE PERSON DESCRIBED ABOVE IS CHARGED AS FOLLOWS

Time 7:25 AM Date of Offense 07/05/2011 IN VIOLATION OF NYS V AND T LAW

Description of Violation

SPEED OVER 55 ZONE

TO PLEAD, PRINT OUT THE ENCLOSED TICKET AND SEND IT TO TOWN COURT, CHATAM HALL., PO BOX 117

Just delete such mails and dont take it for any consideration. Dont open the zipped attachement, it is a virus file

Student loan interest deduction -Tax benefit to reduce your tax liability

2011-08-16T23:50:00.000-07:00

Student loan interest deduction Generally, personal interest you pay, other than certain mortgage interest, is not deductible. However, if your modified adjusted gross income is less than $75,000 ($150,000 if filing a joint return), you may be able to deduct interest paid on a student loan used for higher education during the year. It can reduce the amount of your income subject to tax by up to $2,500, even if you don’t itemize deductions.

For each student, you can choose to claim only one of the credits in a single tax year. However, if you pay college expenses for two or more students in the same year, you can choose to take credits on a per-student, per-year basis. You can claim the American Opportunity Credit for your sophomore daughter and the Lifetime Learning Credit for your senior son.

You cannot claim the tuition and fees deduction for the same student in the same year that you claim the American Opportunity Credit or the Lifetime Learning Credit. You must choose to either take the credit or the deduction and should consider which is more beneficial for you.

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Lifetime Learning Credit - Tax implication in your return

2011-08-16T23:48:00.000-07:00

Lifetime Learning Credit

Lifetime Learning Credit In 2011, you may be able to claim a Lifetime Learning Credit of up to $2,000 for qualified education expenses paid for a student enrolled in eligible educational institutions. There is no limit on the number of years you can claim the Lifetime Learning Credit for an eligible student, but to claim the credit, your modified adjusted gross income must be below $60,000 ($120,000 if married filing jointly).

Tuition and Fees Deduction This deduction can reduce the amount of your income subject to tax by up to $4,000 for 2011 even if you do not itemize your deductions. Generally, you can claim the tuition and fees deduction for qualified higher education expenses for an eligible student if your modified adjusted gross income is below $80,000 ($160,000 if married filing jointly).

American Opportunity Credit- Tax benefit in your return

2011-08-16T23:47:00.000-07:00

American Opportunity Credit- Tax benefit in your return:

Typically, these benefits apply to you, your spouse or a dependent for whom you claim an exemption on your tax return.

American Opportunity Credit This credit, originally created under the American Recovery and Reinvestment Act, has been extended for an additional two years – 2011 and 2012. The credit can be up to $2,500 per eligible student and is available for the first four years of post secondary education. Forty percent of this credit is refundable, which means that you may be able to receive up to $1,000, even if you owe no taxes. Qualified expenses include tuition and fees, course related books, supplies and equipment. The full credit is generally available to eligible taxpayers whose modified adjusted gross income is below $80,000 ($160,000 for married couples filing a joint return).

IRS notification :We are unable to process your tax return

2011-08-11T04:17:00.000-07:00

Are you getting mails from support.manager@irs.gov -support manager with subject as IRS notification !!!!

Beware of the fraud/ spam / virus mail:

Department of Treasury

Internal Revenue Source

Important information about your tax return

We are unable to process your tax return

We recived your tax return. However, we are unable to process the return as field.

Our records indicate that the person identifiedas the primary taxpayer or spouse on the tax return did not provided all the required documents shown on the tax form. Our records are based on information received from the Social Security Administration.

Based on this information, the tax account for the individual has been locked

What you need to do
Print out the attached notification and list of missing documents, fill it in, add the documents and send the following information to the adress shown in the attached notification.

List of required documents:
1. A copy of this letter
2. Notification letter
3. A photocopy of valid U.S. Federal or State Government issued identification.

Keep this notice for your records.

If you need assistance, please don't hesitate to contact us

With .zip attachment? Just delete the mail and don't do anything. !!!!

How to claim moving expense? | Conditions to claim moving expenses

2011-08-10T04:56:00.000-07:00

Move must be closely related to start of work Generally, you can consider moving expenses incurred within one year from the date you first reported to a new location, as closely related in time to the start of work.
Distance Test Your move meets the distance test if your new main job location is at least 50 miles farther from your former home than your previous job location was.
Time Test You must work full time for at least 39 weeks during the first 12 months after you arrive in the general area of your new job location, or at least 78 weeks during the first 24 months if you are self-employed. If your income tax return is due before you’ve satisfied this requirement, you can still deduct your allowable moving expenses if you expect to meet the time test in the following years.
Travel You can deduct lodging expenses for yourself and household members while moving from your former home to your new home. You can also deduct transportation expenses, including airfare, vehicle mileage, parking fees and tolls you pay to move, but you can only deduct one trip per person.
Household goods You can deduct the cost of packing, crating and transporting your household goods and personal property. You may be able to include the cost of storing and insuring these items while in transit.
Utilities You can deduct the costs of connecting or disconnecting utilities.
Nondeductible expenses You cannot deduct as moving expenses: any part of the purchase price of your new home, car tags, drivers license, costs of buying or selling a home, expenses of entering into or breaking a lease, security deposits and storage charges except those incurred in transit.
Form You can deduct only those expenses that are reasonable for the circumstances of your move. To figure the amount of your moving expense deduction use Form 3903, Moving Expenses.
Reimbursed expenses If your employer reimburses you for the cost of the move, the reimbursement may have to be included on your income tax return.
Update your address When you move, be sure to update your address with the IRS and the U.S. Postal Service to ensure you receive refunds or correspondence from the IRS. Use Form 8822, Change of Address, to notify the IRS.

Home sellers tax implication for US individuals | Home sellers tips in USA

2011-08-08T06:52:00.000-07:00

The Internal Revenue Service has some important information to share with individuals who have sold or are about to sell their home. If you have a gain from the sale of your main home, you may qualify to exclude all or part of that gain from your income. Here are ten tips from the IRS to keep in mind when selling your home.

1. In general, you are eligible to exclude the gain from income if you have owned and used your home as your main home for two years out of the five years prior to the date of its sale.

2. If you have a gain from the sale of your main home, you may be able to exclude up to $250,000 of the gain from your income ($500,000 on a joint return in most cases).

3. You are not eligible for the exclusion if you excluded the gain from the sale of another home during the two-year period prior to the sale of your home.

4. If you can exclude all of the gain, you do not need to report the sale on your tax return.

5. If you have a gain that cannot be excluded, it is taxable. You must report it on Form 1040, Schedule D, Capital Gains and Losses.

6. You cannot deduct a loss from the sale of your main home.

7. Worksheets are included in Publication 523, Selling Your Home, to help you figure the adjusted basis of the home you sold, the gain (or loss) on the sale, and the gain that you can exclude.

8. If you have more than one home, you can exclude a gain only from the sale of your main home. You must pay tax on the gain from selling any other home. If you have two homes and live in both of them, your main home is ordinarily the one you live in most of the time.

9. If you received the first-time homebuyer credit and within 36 months of the date of purchase, the property is no longer used as your principal residence, you are required to repay the credit. Repayment of the full credit is due with the income tax return for the year the home ceased to be your principal residence, using Form 5405, First-Time Homebuyer Credit and Repayment of the Credit. The full amount of the credit is reflected as additional tax on that year’s tax return.

10. When you move, be sure to update your address with the IRS and the U.S. Postal Service to ensure you receive refunds or correspondence from the IRS. Use Form 8822, Change of Address, to notify the IRS of your address change.

Impact of Loosing AAA rating for USA | What is AAA rating?

2011-08-07T01:04:00.000-07:00

United States of America Long-Term Rating Lowered To 'AA+' On Political Risks And Rising Debt

Burden; Outlook Negative:-

We have lowered our long-term sovereign credit rating on the United States of America to 'AA+' from 'AAA' and affirmed the 'A-1+' short-term rating.

· We have also removed both the short- and long-term ratings from CreditWatch negative.

· The downgrade reflects our opinion that the fiscal consolidation plan that Congress and the Administration recently agreed to falls short of what, in our view, would be necessary to stabilize the government's medium-term debt dynamics.

· More broadly, the downgrade reflects our view that the effectiveness,stability, and predictability of American policymaking and political institutions have weakened at a time of ongoing fiscal and economic

challenges to a degree more than we envisioned when we assigned a negative outlook to the rating on April 18, 2011.

· Since then, we have changed our view of the difficulties in bridging the gulf between the political parties over fiscal policy, which makes us pessimistic about the capacity of Congress and the Administration to be able to leverage their agreement this week into a broader fiscal consolidation plan that stabilizes the government's debt dynamics any time soon.

· The outlook on the long-term rating is negative. We could lower the long-term rating to 'AA' within the next two years if we see that less reduction in spending than agreed to, higher interest rates, or new

fiscal pressures during the period result in a higher general government debt trajectory than we currently assume in our base case.

On Aug. 5, 2011, Standard & Poor's Ratings Services lowered its long-term sovereign credit rating on the United States of America to 'AA+' from 'AAA'.

The outlook on the long-term rating is negative. At the same time, Standard &Poor's affirmed its 'A-1+' short-term rating on the U.S. In addition, Standard ; Poor's removed both ratings from CreditWatch, where they were placed on July 14, 2011, with negative implications.

The transfer and convertibility (T&C) assessment of the U.S.--our assessment of the likelihood of official interference in the ability of U.S.-based public- and private-sector issuers to secure foreign exchange for debt service--remains 'AAA'.

Source: Standar and poor

Adoption Tax Credit who can claim?

2011-08-03T05:09:00.000-07:00

Six Things to Know About the Expanded Adoption Tax Credit

If you are adopting a child in 2011, the Internal Revenue Service encourages you to familiarize yourself with the adoption tax credit. The Affordable Care Act increased the amount of the credit and made it refundable, which means it can increase the amount of your refund.

Here are six things to know about this valuable tax credit:

The adoption tax credit, which is as much as $13,170, offsets qualified adoption expenses making adoption possible for some families who could not otherwise afford it. Taxpayers who adopt a child in 2010 or 2011 may qualify if you adopted or attempted to adopt a child and paid qualified expenses relating to the adoption.
Taxpayers with modified adjusted gross income of more than $182,520 in 2010 may not qualify for the full amount and it phases out completely at $222,520. The IRS may make inflation adjustments for 2011 to this phase-out amount as well as to the maximum credit amount.
You may be able to claim the credit even if the adoption does not become final. If you adopt a special needs child, you may qualify for the full amount of the adoption credit even if you paid few or no adoption-related expenses.
Qualified adoption expenses are reasonable and necessary expenses directly related to the legal adoption of the child who is under 18 years old, or physically or mentally incapable of caring for himself or herself. These expenses may include adoption fees, court costs, attorney fees and travel expenses.
To claim the credit, you must file a paper tax return and Form 8839, Qualified Adoption Expenses, and you must attach documents supporting the adoption. Documents may include a final adoption decree, placement agreement from an authorized agency, court documents and the state’s determination for special needs children. You can still use IRS Free File to prepare your return, but it must be printed and mailed to the IRS, along with all required documentation. Failure to include required documents will delay your refund.
The IRS is committed to processing adoption credit claims quickly, but it also must safeguard against improper claims by ensuring the standards for this important credit are met. If your return is selected for review, please keep in mind that it is necessary for the IRS to ensure the legal criteria are met before the credit can be paid. If you are owed a refund beyond the adoption credit, you will still receive that part of your refund while the review is being conducted.

Unclaimed Refunds how to get from IRS? | How to get missed tax refund?

2011-08-03T04:54:00.000-07:00

Does the IRS Have Money Waiting For You?

If you earned income in the last few years but you didn’t file a tax return because your wages were below the filing requirement, the Internal Revenue Service may have some money for you. The IRS also has millions of dollars in checks that are returned each year as undeliverable.

Here’s what you need to know about these two types of “missing money” and how to claim it:

Unclaimed Refunds

Some people earn income and may have taxes withheld from their wages but are not required to file a tax return because they have too little income. In this case, you can claim a refund for the tax that was withheld from your pay. Other workers may not have had any tax withheld but would be eligible for the refundable Earned Income Tax Credit, but must file a return to claim it.

To collect this money a return must be filed with the IRS no later than three years from the due date of the return.
If no return is filed to claim the refund within three years, the money becomes the property of the U.S. Treasury.
There is no penalty assessed by the IRS for filing a late return qualifying for a refund.
Current and prior year tax forms and instructions are available on the Forms and Publications page of www.irs.gov or by calling 800-TAX-FORM (800-829-3676).
Information about the Earned Income Tax Credit and how to claim it is also available on www.irs.gov.

Undeliverable Refunds

Were you expecting a refund check but didn't get it?

Refund checks are mailed to your last known address. Checks are returned to the IRS if you move without notifying the IRS or the U.S. Postal Service.
You may be able to update your address with the IRS on the “Where’s My Refund?” feature available on IRS.gov. You will be prompted to provide an updated address if there is an undeliverable check outstanding within the last 12 months.
You can also ensure the IRS has your correct address by filing Form 8822, Change of Address, which is available on www.irs.gov or can be ordered by calling 800-TAX-FORM (800-829-3676).

If you do not have access to the Internet and think you may be missing a refund, you should first check your records or contact your tax preparer. If your refund information appears correct, call the IRS toll-free assistance line at 800-829-1040 to check the status of your refund and confirm your address.

Job seekers tax tips in USA

2011-07-29T05:10:00.000-07:00

Seven Tax Tips for Job Seekers

Many taxpayers spend time during the summer months updating their résumé and attending career fairs. The Internal Revenue Service reminds job seekers that you may be able to deduct some of the expenses on your tax return.

Here are seven things the IRS wants you to know about deducting costs related to your job search.

1. To qualify for a deduction, the expenses must be spent on a job search in your current occupation. You may not deduct expenses you incur while looking for a job in a new occupation.

2. You can deduct employment and outplacement agency fees you pay while looking for a job in your present occupation. If your employer pays you back in a later year for employment agency fees, you must include the amount you receive in your gross income, up to the amount of your tax benefit in the earlier year.

3. You can deduct amounts you spend for preparing and mailing copies of your résumé to prospective employers as long as you are looking for a new job in your present occupation.

4. If you travel to an area to look for a new job in your present occupation, you may be able to deduct travel expenses to and from the area. You can only deduct the travel expenses if the trip is primarily to look for a new job. The amount of time you spend on personal activity compared to the amount of time you spend looking for work is important in determining whether the trip is primarily personal or is primarily to look for a new job.

5. You cannot deduct job search expenses if there was a substantial break between the end of your last job and the time you begin looking for a new one.

6. You cannot deduct job search expenses if you are looking for a job for the first time.

7. The amount of job search expenses that you can claim on your tax return is limited. You can claim the amount that is more than 2 percent of your adjusted gross income. You figure your deduction on Schedule A

Source :IRS

New UK visa plan to attract global talent

2011-07-22T10:03:00.000-07:00

New UK visa plan to attract global talent :

London: Britain has announced a new visa category to facilitate the immigration for exceptionally talented people from India and other non-EU countries in the fields of science,humanities,engineering and arts.

The new Tier 1 (exceptional talent) category will open on 9 August 2011,and will have 1,000 places in the first year of operation,official sources here said.

There will be 500 places available between 9 August and 30 November and a further 500 places available from 1 December to 31 March 2012.

The number of places will be reviewed at the end of March 2012.The immigration category will be overseen by four competent bodies,which will advise the UK Border Agency on these exceptionally talented migrants to ensure that they are the brightest and best in their field.

The bodies are: the Royal Society,a fellowship of the worlds most eminent scientists,will be able to nominate up to 300 places;the Arts Council England,the national development agency for the arts,will also be able to nominate up to 300 places;the Royal Academy of Engineering,Britains national academy for engineering,will have up to 200 places to nominate;and the British Academy,the national academy for the humanities and social sciences will be able to nominate up to 200 places.

Immigration minister Damian Green said: The UK is a global leader in science,humanities and engineering and we are a cultural centre for the arts.We will continue to welcome those who have the most to offer and contribute to our society and economy.PTI

Tax help for Military tax payer | Tax tips for Armed Forces staffs

2011-07-20T08:18:00.000-07:00

Military personnel have some unique duties, expenses and transitions. Some special tax benefits may apply when moving to a new base, traveling to a duty station, returning from active duty and more. These tips may put military members a bit “at ease” when it comes to their taxes.

1. Moving Expenses If you are a member of the Armed Forces on active duty and you move because of a permanent change of station, you can deduct the reasonable unreimbursed expenses of moving you and members of your household.

2. Combat Pay If you serve in a combat zone as an enlisted person or as a warrant officer for any part of a month, all your military pay received for military service that month is not taxable. For officers, the monthly exclusion is capped at the highest enlisted pay, plus any hostile fire or imminent danger pay received.

3. Extension of Deadlines The time for taking care of certain tax matters can be postponed. The deadline for filing tax returns, paying taxes, filing claims for refund, and taking other actions with the IRS is automatically extended for qualifying members of the military.

4. Uniform Cost and Upkeep If military regulations prohibit you from wearing certain uniforms when off duty, you can deduct the cost and upkeep of those uniforms, but you must reduce your expenses by any allowance or reimbursement you receive.

5. Joint Returns Generally, joint returns must be signed by both spouses. However, when one spouse may not be available due to military duty, a power of attorney may be used to file a joint return.

6. Travel to Reserve Duty If you are a member of the US Armed Forces Reserves, you can deduct unreimbursed travel expenses for traveling more than 100 miles away from home to perform your reserve duties.

7. ROTC Students Subsistence allowances paid to ROTC students participating in advanced training are not taxable. However, active duty pay – such as pay received during summer advanced camp – is taxable.

8. Transitioning Back to Civilian Life You may be able to deduct some costs you incur while looking for a new job. Expenses may include travel, resume preparation fees, and outplacement agency fees. Moving expenses may be deductible if your move is closely related to the start of work at a new job location, and you meet certain tests.

9. Tax Help Most military installations offer free tax filing and preparation assistance during the filing season.