The Crime.

On Sunday while enjoying Super Bowl XLV with good friends, “Carlos Dorame” walked into Dillard’s Department Store in Tucson, Ariz. He grabbed four pair of women’s shoes and proceeded to the checkout. The first MasterCard he presented was declined, but he then handed the clerk another card with his name and my debit card number and expiration date. The card was run as “credit” (not requiring a PIN) and approved. Within ten minutes, Carlos was able to make two additional purchases before my bank account was depleted. read more »

There have been many stories involving the Internal Revenue Service in the media lately:

• Owner of South Kitsap Drive-In Pleads Guilty to Tax Evasion, www.kitsapsun.com, Mar. 5
• Man Sends Message to Bank, IRS with a Bulldozer, www.wlwt.com Feb. 18
• Tax Protester Crashes Plane into IRS Office, www.wsj.com Feb. 19

Recollections of stories like these can trigger apprehension in anyone who receives notice that their business or personal income tax return has been selected by the IRS for examination. read more »

Between September 1, 2008 and October 15, 2008 the value of the Dow Jones Industrial Average decreased by over 25 percent. Believing the economy would only get worse, my wife Christine and I made changes in our spending and living habits in order to ride out the anticipated recession.

Mortgage loans and credit cards

We watched fixed mortgage interest rates drop and explored the possibility to getting a lower rate on our first mortgage. With falling home values we were not sure if we could, but in March 2009 read more »

For the past 10 months I have participated with the Tax and Fiscal Policy Committee (TFPC) of the Association of Washington Business (AWB). TFPC participants provide feedback to the AWB regarding proposed tax legislation.

Representatives from the AWB then meet with State Representatives to discuss issues and potential “unintended consequences” of proposed legislation. The TFPC also works with the Department of Revenue regarding implementation issues on new legislation, such as the destination-based sales tax and the taxation of “digital goods.” read more »

Beginning in January of next year, the resale certificate used by retailers, wholesalers, manufacturers and contractors to purchase goods for resale without paying sales tax will no longer be valid. It is being replaced with a “reseller’s permit” issued free by the Department of Revenue. This change is a result of Senate Bill 6173, which passed the Legislature during the 2009 legislative session and was signed into law by the governor to improve sales tax compliance. read more »

In my career, I have participated on executive boards of nonprofit organizations; audited and consulted on internal controls for nonprofit organizations, and served as finance manager for a nonprofit organization. Nonprofits routinely replace board members and some day you may be asked to serve on the board of a nonprofit organization.

Board members of nonprofit organizations have a fiduciary responsibility to oversee management of the organization. read more »

If you have not evaluated your business’s internal controls lately, you should be aware that today’s economic climate places your company at greater risk for fraud and embezzlement than at any other time in recent history.

The reason your business is at risk is that recent events are motivating normally honest, hard-working employees to do things he or she would not ordinarily do, including steal from you. read more »

If you utilize the services of a tax professional, consider making an appointment with him or her before the end of the year to discuss tax saving strategies. A tax professional can assist you in a thoughtful analysis of your business and/or personal finances to determine if you can take any steps that might make paying your 2007 income taxes less painful. read more »

Just about every taxpayer who itemizes deductions as part of their Federal income tax preparation routine knows that Washington State residents now have the option claiming an additional deduction for sales taxes paid. The deduction is allowable for 2004, and the IRS has published Optional Sales Tax Tables for taxpayers who do not keep receipts. In addition, sales tax paid on certain large purchases, such as cars, motorcycles and boats, can be added to the optional sales tax amounts. read more »