How Do I Discover My Purpose? Start By Asking Yourself These 3 Questions

One of the biggest questions I hear is, “What is my purpose?”

In reality, there are only two people who can really tell you what your purpose is you and God.

What is purpose?

Your purpose is the plan God has for you, the reason why He has created to live on this earth.

He can tell you because He created you and He made a specific purpose just for you. As you seek to know God more, and learn His plan for your life, you can discover this purpose. Contrary to what many people believe, you are not here just to take up space, meander around, watch reality TV, be miserable, or even eat chocolate.

God has so much more for you. He wants you to love your life by discovering your purpose and walking it out on consistent basis.

God also wants you to connect with Him and join Him where He is already working.

This requires you to be able to:
• Have a relationship with Him through faith in Jesus Christ
• Experience an intimate relationship with Him
• Learn to hear His voice

If you want to fulfill your purpose for 2017, I encourage you to take a quick mental inventory of what you have. Then 3 questions to ask yourself include:
• What 5 things do I want to change about myself in this year? This could include your job, a relationship, a personal goal, certain habits, etc.
• What people/things do I need to get rid of so I can pursue my purpose?
• What negative mindsets do I need to get rid of? If you are honest with yourself, you can experience areas of growth so you can pursue your purpose.

I would also recommend you find an accountability partner or hire a life purpose coach to help you to see where you are and how you can get closer to pursuing your purpose.

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Less Than 1,000 Days Until the Next Total Solar Eclipse in the United States

On Monday, August 21, 2017, a total solar eclipse will be visible in some areas of the United States. This is now less than 1,000 days away. The event has been a long time coming. While the last total solar eclipse to be seen in the United States occurred in 1991, that event was limited to Hawaii. Before that, the last solar eclipse visible from the continental United States was on February 26, 1979.

While the 1979 event tracked across Oregon, Washington and Montana, people in 12 states will see the 2017 event. Both eclipses started in Oregon. The earlier one then tracked up into Canada. The 2017 eclipse starts in Oregon, travels across the central United States before finishing far out to sea beyond South Carolina.

A total solar eclipse is a rather rare occurrence. Estimates place the likelihood of any point on Earth experiencing one only every 400 years. This is not absolute, however. Several Oregon locations saw the 1979 eclipse and they will see the 2017 event as well. For them, experiencing two solar eclipses in a little more than 35 years is quite unusual. Closer yet are the cities of Carbondale, Illinois, and Cape Girardeau, Missouri. Residents there will see the 2017 eclipse as well as another in April, 2024. This separation of less than seven years for these two eclipses is very unusual. Of course, it may be hundreds of years before these cities see another.

To be a total eclipse, the moon must completely obscure the sun, for an observer standing on Earth. This can occur monthly, at New Moon. Ordinarily, however, the moon passes either above, or below, the sun’s position, as viewed from Earth. As a result, the moon’s shadow normally sweeps across open space. On rare occasions, as the moon passes directly in front of the sun, a shadow is cast upon the surface of the Earth. If the sun is partially obscured, a partial eclipse results. If the sun is completely obscured, a total solar eclipse occurs. The moon is much smaller than the sun, of course. In fact, the moon is some 400 times smaller. In an astronomical twist, the moon is also 400 times closer to the Earth. This makes the apparent size of the moon very close to the apparent size of the sun. When the moon passes directly in front of the sun, it is able to completely eclipse the sun, for some viewers on Earth.

The shadow cast by the moon, however, is very small. Depending on the distance between the Earth and the moon, which varies somewhat, the moon’s shadow will darken a strip of Earth about 70 miles wide. This strip is called the Zone of Totality. Those people located within this zone will experience a total solar eclipse. Those near, but outside, will see a partial solar eclipse.

On August 21, 2017, the sun is eclipsed for as much as 2 minutes and 40 seconds at the maximum point. Hopkinsville, Kentucky happens to be located at this point. People not located there may see a shorter eclipse duration. Those located outside the zone of totality will only see a partial eclipse. Some cities that will experience totality include Nashville, Tennessee, Kansas City and St. Louis, Missouri. The 2017 eclipse will potentially be seen by millions of people located across the United States.

Each total solar eclipse is unique, but there are similarities. The Earth will darken over time as the moon obscures more and more of the sun. This is the partial eclipse phase. As totality approaches, the amount of sunlight striking the Earth will be greatly diminished. The sky will become similar to twilight. Colors normally seen at sunset will be visible during the day. Birds, animals and insects will be fooled into believing that night is falling. Some will return to their nests or roosts. Nocturnal creatures will begin to emerge. These effects often happen even if a total solar eclipse occurs early in the morning. After totality ends, another partial eclipse phase occurs until the moon passes beyond the sun’s location.

The biggest factor that cannot be predicted with certainty is the weather on August 21, 2017. Cloudy weather could obscure the eclipse for interested observers. As a result, many people examine historical weather patterns in order to determine prime eclipse viewing locations. Since the 2017 event occurs in August, there are some rather promising weather possibilities. In Oregon, the August weather tends to be sunny and dry, perfect eclipse conditions. Morning fog, storms, or clouds, could thwart eclipse viewers, however.

Idaho and Wyoming residents will also experience the 2017 eclipse. The weather in these states could allow a very good eclipse viewing experience. The eclipse occurs fairly early in the day, lessening the possibility of localized thunderstorms.

As the total solar eclipse tracks across more states, from Nebraska to South Carolina, the possibility of inclement weather increases. These locations will experience the eclipse later in the day. Afternoon storms, or hazy weather, could be encountered. Such weather could limit the eclipse experience.

Many US cities have already begun planning for the August 21, 2017 total solar eclipse. The event represents an opportunity to entertain tens of thousands of visitors to cities located within the zone of totality. With proper attention to details, cities can provide a favorable eclipse experience that also highlights the attractions of the local area. Weather permitting, of course.

Bonus Facts:

– the distance from the Earth to the moon increases each year. In less than 1.5 billion years, the moon will not be close enough to produce total solar eclipses. After that, only partial or annular eclipses will occur.

– when the moon eclipses the sun, the sky darkens enough to allow planets and bright stars to be seen in the daytime. On August 21, 2017, the bright star Rigel should be visible low in the south. – Albert Einstein predicted that a total solar eclipse could provide direct proof of the General Theory of Relativity. He postulated that the eclipsed sun would cause light to be bent, for an observer on Earth. This would be proved as stars located behind the sun would appear to be shifted in location. This visual evidence was demonstrated during an eclipse in 1919.

– as the moon passes in front of the sun, it blocks enough sunlight that the solar corona, the super heated atmosphere, becomes visible to people on Earth. The shape of the corona is different during each eclipse as it is influenced by the level of magnetic solar storms, which constantly changes.

– ancient civilizations did not understand the science responsible for total solar eclipses. Eclipses were attributed to supernatural causes and thought to be bad omens.

– the theoretical maximum duration of a total solar eclipse is about 7 minutes. The 2017 eclipse is less than half this duration, at 2 minutes, 40 seconds for those located in Hopkinsville, Kentucky.

– the sun is not safe to view during any portion of the partial eclipse phase. Even if only 1% of the sun is visible, observers risk damage to their eyes through direct observation. At this eclipse stage, the sun appears to be dim enough to view. Unfortunately, the lit portion still transmits full force sunlight to the optic nerve. Because the level of light is so much lower than normal, the observer feels no urge to avert their gaze. Moreover, the optic nerve does not contain pain receptors so victims are unaware that their eyesight is being damaged. Proper eye protection is vital for all observers of the partial solar eclipse phase.

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The Artistic Way of Programming

12 years back, when I started my formal classes in computer science, the first thing I learnt was “data” means “information”. A few days after that, we started conventional programming, where code and data were treated separately. For example, only data can be passed as the functional arguments. It was difficult for me to digest that “code, which is also information, is not treated as data”. I strongly felt that this will increase complexity of softwares in the long run.

A system does three things – read, transform (processing data), write. In other words – the mathematics (the transform part), and the effect of that in real life (the read/write part). The data transformation is indeed a mathematical concept, and with the help of read and write we make the mathematics (the transform part) useful to the real world. Bringing the “transform” part fully inside mathematical domain has its own benefit of using mathematics without fear (possible errors) for the analysis of the system, making the system more tractable mathematically. The catch is to treat both the elements of transformations, data and functions, equally.

Initially, code used to be bigger than the data, so sending data over the wire was feasible. But with time, data becoming huge, sending code to systems over the wire becomes the need, resting the data on the systems intact. With big data, the need of the hour is to treat the code as data, so that the code can be taken as argument to another meta function on a system having huge data which expects an algorithm for transformations.

Roughly speaking, codes are algorithms, algorithms are mathematical functions, functions are in turn actually look-up tables, i.e. data. Hence with this principle, all codes or functions are data.This is exactly the cornerstone of the functional paradigm. The functional programming is programming with functions, they treat functions and data likewise. Another principle I love, to control complexity, rules should not be complex itself.

Thumb rules rewritten for the functional paradigm:

Read-write and transformations(algorithms) should be separate.
Use immutable variables. Discourage use of reassignment statements.
Discourage side-effects (input/output or changing any variable in-place), every function should ONLY return its expected result.
Use referentially transparent functions (sometimes it is called pure functions) with no side effects, i.e. if x = y, f(x) and f(y) should be same forever.
Unit testing is a must for each function.
One of the main design patterns should be followed is to use expressions instead of instructions, i.e. it should be declarative in nature. Discourage use of loops like for/while – use recursive statements as shown above to calculate sum. Tell computers what needs to be done, not how to do it – it reduces error, especially edge cases.
With the need to control the complexity of the system and the advance design, the design pattern for the functional composition can be made to follow some basic algebraic structures, which in turn becomes more robust.

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Unlike Last Season, Early Schedule Will Challenge Cubs In 2017

The celebration has ended, the 108 year drought is over, and baseball on Chicago’s North Side should return to normal. In other words, fans of the Cubs can go back to worrying.

Several big concerns face them as they look toward the 2017 season, in addition to the nearly impossible task of topping the World Series Championship they earned in October. No team has won the Fall Classic back to back in this century, although a much shorter span than the Cubs endured between titles.

That trip to the World Series was made easier by the early schedule, an arrangement the Cubs will not enjoy next April. Chicago did not play a winning team until April 18 against the Cardinals, which was their fifth series of the season. The Cubs did not play another winning team until May 2, when they played the Pirates. Spending the first month against the likes of Cincinnati, Arizona, Atlanta, and Milwaukee would provide nearly any team with the confidence needed to carry them through the most important stretch of the season. To emphasize just how important a hot start is, examine the National League from last season.

All four of the teams who reached the Division Series posted winning percentages over.700 during the first week of 2016, led by the Cubs and Nationals winning eight of their first nine games. The Giants were victorious in six of their first eight, and the Dodgers won seven of their first ten.

The advantage of opening against non-contenders will not be available to the Cubs in 2017, when the early part of their schedule features matchups against the only two teams that had winning records against Chicago last year. They open in St. Louis on April 2nd, a Sunday night game between the two rivals that will be broadcast on national television.

What could make that initial series even more troubling for the Cubs is the strong possibility that one of their most exciting players from last year will be playing for the opposing team. Center fielder Dexter Fowler, Chicago’s spark plug at the top of the batting order, is a free agent. Many baseball writers have projected St. Louis as the most likely team to sign Fowler. After the series in St. Louis, the Cubs must play the team that nearly eliminated them in the NLCS. The Dodgers, who won both of their regular season series against the Cubs in 2016, have the opportunity to avenge their playoff loss on the opening weekend in April.

The hot start Chicago used to build momentum for their World Series run last year is far less likely to befall them in 2017, simply because of the competition. Instead of opening against last place clubs like San Diego and Cincinnati, the Cubs will be tested right out of the chute by teams expecting to be contenders.

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Are Your Prepared for These Year End Income Tax Issues?

Over the course of the year, I’m sure you’ve noticed the ridiculous way our Congress has acted to update our tax laws. By including tax code provisions in a highway bill, a mass transit bill, and a trade package bill- plus within the Bipartisan Budget Act and the PATH (Protecting Americans from Tax Hikes) Acts. (Those last two were, indeed, logical places to regulate taxes.)

There is a chance that the lame duck Congressional session may act on some tax regulations, but given that these folks work about 1 day a week- and then complain how many lazy folks are out across the US not entering the workforce (that is the pot calling the kettle black)- I am not sanguine they will. So, unless they do- this will be the last year that mortgage insurance will be deductible and foreclosed home debt will not be a taxable situation, among a few other items that expire this calendar year.

But, I figured it would be helpful if I combined all these changes into a coherent mass (which our legislators clearly have not), so you can be prepared for the 2016 tax season. (Remember, you file your taxes for 2016 by April 2017. Oh- and if you are a business, the odds are the date your taxes are due, also changed. More on that below.)

Students and Teachers (PATH Act provisions)

Students got a permanent change for deductibility of tuition via the American Opportunity Tax Credit. This provides up to $ 2500 of tax credit for lower-income filers for the first four years of higher education (with a possibility of 40% of the unused credit being received as a refund- if no other taxes are owed). As long as the students are enrolled at least half time for one term of the year and not convicted of drug violations. The real change is that filers must include the EIN of the college or university involved- and demonstrate that they paid the tuition and fees they claim- not what the institutions may list on the 1098-T form.

On the other hand, the tuition deduction for other students will expire at the end of this year. Oh, and that generous (sic) deduction teachers get for buying supplies for their students that schools don’t supply is now permanent- all $ 250 of it. (Most teachers spend at least twice that!)

Pensions and IRA

Folks older than 70.5 years of age no longer have to rush to transfer their IRA (or portions thereof) to charity, because that provision is permanent. (PATH) Please note that the IRS demands that these transfers not be rollovers. One must employ a trustee to transfer the funds; and that trustee cannot hand you the funds to deliver to the charity. If they do, you lose the exemption. No surprises I am sure when I remind you that there must be a contemporaneous acknowledgement (that means a timely receipt) from the charity for that deductible donation or transfer.

Heirs and Estates

While still in the wrong venue, the Highway Bill did fix a big problem. Folks (or entities) that inherit assets from an estate are now required to use the basis filed in the 706 form for their own calculations. (Just so you know, the rules stipulate that estates can value items as per the date of death, or by alternate choice 9 months after that date. Too many “cheaters” would use a different basis for the property they inherited, thereby cheating the tax authorities with alternative valuations.)

To keep this rule in place, executors are now required to stipulate (i.e., file for 8971 and Schedule A of the 706) said value to all heirs and to the IRS. Which means anyone who inherits property- and thought they didn’t need to file Form 706 because the value of the estate was below the threshold for Estate Tax better reconsider. Otherwise, the heirs may be hit with a penalty for using the wrong basis for that inherited asset when they dispose of same.

Why? Because if a 706 form is never filed, the basis of all assets inherited is now defined as ZERO!!!!! It gets worse. Because if an asset were omitted from Form 706, the basis of that property is now determined to also be ZERO. (Unless the statute of limitations is still opened, when an Amended 706 can be filed to correct this omission.)

Another kicker. If the 706 form is filed LATE, the basis of all assets that should have been included are also set at ZERO. Some tax advisors feel this one little provision could be challenged in court. But, let’s just be prudent and file all those 706 Estate Tax returns in a timely fashion. (Filing a 706 when the estate value is below the filing threshold is called a Protective 706 Filing; we’ve been doing those for years. And, we strenuously examine the assets often to the consternation of the heirs- to ensure that all the non-worthless assets are included. You know, that 36 diamond tennis bracelet your grandma promised you would inherit when you turned 16.)

Oh, yeah. Another really big kicker for this little item. Under IRC 6501, the IRS has three years to catch cheaters who misstate certain items (like income taxes [except for continuing fraud], employment taxes, excise taxes, and for this provision- estate taxes and the results therefrom). No more. If an asset from an estate is misstated so that it can affect more than 25% of the gross income on a tax return will now have a SIX year statute of limitation.

Mileage Rates

Not surprisingly, the mileage rates for 2016 are lower than they were last year. Business mileage is now deducted as 54 cents a mile; driving for reasons that are medical or moving are only worth 19 cents each. When we drive to help a charity, we only get 14 cents a mile.

As is normally true, we have no clue what those rates will be for 2017. The IRS normally prepares those well into the calendar year.

Real Estate

The PATH ACT made permanent the ability of taxpayers to contribute real property to qualified conservation charities.

Health and Health Insurance

The Highway Bill (yup) came up with a bouquet of flowers for our veterans and folks currently serving in the military. No longer will they be unable to contribute or use HSA (Health Savings Accounts) should they receive VA or armed service benefits. Along that same vein, the Highway Bill enabled all those who purchase- or are provided by their employers- high deductible insurances (about $ 1500 for a single person) to use HSAs, too.

Oh, and assuming Obamacare is not overturned, there is a permanent exemption from penalties for those receiving VA or TriCare Health Benefits. (For employers, the Highway Bill also exempts all such employees from being included in determining the 50 employee (full-time or equivalent) threshold provisions.)

Employers

There were more than a few changes for employers. More than the exemption for the VA and armed service personnel from inclusion in Obamacare provisions mentioned above.

Like ALL 1099s and W-2 are now due by 31 January. That’s a big change for many folks who barely get their stuff together to file 1099’s. It means that companies need to contact their tax professionals really early- to let them verify that all relevant contractors and consultants receive those 1099s on time. Because the penalties have also increased.

The Work Opportunity Credit has been extended through 2019. This applies to Veterans (which is why you keep hearing Comcast advertising its commitment to hire some 10,000 veterans over the next few years- they’re no dummies). Other targeted groups include what are termed those receiving Temporary Assistance for Needy Families (TANF), SNAP (what used to be termed Food Stamp) recipients, ex-felons, and some of those living in “empowerment zones”.

Families and Individuals

The PATH ACt made the enhanced child tax credit (up to $ 1000, income dependent) a permanent provision of the code. As well as the Earned Income Tax Credit provisions that were to expire.

Social Security taxes are not going up per se- but the income basis upon which one pays them is. For the last two years, there was a tax holiday for all wage income (or self-employed income) that exceeded $ 118,500. Next year (2017), the taxes will be collected for totals of up to $ 127,200.

If an employee is working overseas and has income and/or a housing allowance, the exclusion provisions have also changed. For 2016, foreign income of $ 101,300 could be excluded from taxation, as could housing benefits that were $ 16,208 or less. Starting 2017, those exclusions become $ 102,100 and $ 16,336, respectively.

There also is further clarification of these foreign exclusions. In particular, these will affect those in the merchant marine or working aboard cruise lines. Because the IRS now holds that when one is in a foreign port, then one is able to claim foreign income. But… when someone operates in international waters, that is NOT a foreign country. That income must be computed (by the number of days one is on said waters) and is not excludable!

Individuals, Businesses, Trusts, Non-Profits that have Foreign Accounts

Some big changes affect those who must file those FBARs (Foreign Bank and Financial Accounts). It used to be you had to report any holdings in a bank, stock account, commodities or future accounts, mutual funds, or [pay attention to this one] poker, gambling or gaming site account that was not a US domicile by 30 June. (This also means a foreign insurance policy that has a cash value or foreign retirement accounts [including inheritances] is a foreign account.) It also covers recent immigrants to the US! These filings are due at the same time as your income tax return. But, while there never was an extension possible for these forms, now there is – for the same six months that obtains for your personal tax filings.

A foreign account does not mean that using the Royal Bank of Scotland to house funds in New York City; but having a Citicorp account that is based in Jerusalem or London does. The critical consideration is where the local branch is situated, where the account was opened. By the way, accessing foreign funds via PayPal means you have a foreign account.

The FBAR filing uses Form 114 and must be now filed electronically. The requirement to file applies to all taxable entities (individuals and businesses) that have $ 10,000 or more of value on any given day during the tax year. And, the conversion rate for said value is no longer allowed to be daily- but determined by the value on the last day of the tax year.

There is a new interpretation, too. The requirement to file applies not just to the account owner(s), but to anyone with signature authority. So, that means people like me that maintain client accounts overseas will now have to file these forms, because I can issue checks on those accounts. (I am not responsible for about 100 of them where I write the checks for the clients- but have no signature authority.) It also means employees of corporations or businesses or estates that have foreign funds and have signature authority must also file Form 114.

All business entities (and trusts and non-profits) should recognize that all entities – and individuals who work for or at those entities- that have signature authority for a foreign bank account, stock account, gaming or gambling account are subject to these provisions. In other words, all foreign money holdings may subject employees, not just officers of the institutions, to these provisions.

Oh. The IRS also requires those foreign entities where you may or may not have money to file Form 8938, a FATCA (Foreign Account Tax Compliance Act) filing. This covers those financial accounts, stocks, securities, contracts, interests- anything that exceeds the filing threshold. These rules also apply to American entities (individuals, businesses, trusts, etc. that have such interests in excess of the filing threshold! (If one resides in the US, those thresholds are $ 50K for individuals, $ 75$ for married folks on the last day of the year- or $ 100K and $ 150K at any time during the tax year. Those numbers increase by a factor of 4 if one doesn’t reside in the US; the thresholds are $ 200K, $ 300K, $ 400K, and $ 600K, respectively.)

Businesses

The PATH Act changed the 179 (the capital purchases write-off provisions) Election. For good. The maximum Section 179 write-off is now permanent. (It had been extended for a year or two each time Congress had made a change for a while.) That maximum is also to be adjusted for inflation starting this year, which is why it is now $ 510,000. Moreover, there is a phaseout when the amount of new capitalized property exceeds $ 2.03 million, but not to zero.

Real Estate

For real estate purchases, the maximum Section 179 exclusion is now also $ 500K. (Last year, it was capped at $ 250K.) This includes HVAC (heating, ventilation, and air conditioning), which is a new change. Any recapture of this credit (due to an early sale) is now considered subject to ordinary income taxes.

The time to depreciate real estate is now 15 years for qualified leasehold improvements, restaurants, and retail improvements. Bonus depreciation is also allowed for the first half of said improvement value (through 2017), decreasing in 2018 to only 40%, 30% in 2019 and removed completely by 2020. The PATH Act also let bonus depreciation apply to 39 year property (for improvements that were already in service by the entity).

Automobiles (Luxury)

The depreciation limits for vehicles is limited to $ 3160 or 20% of the basis in 2016. However, this year one can write off up to $ 8000 in bonus deprecation (which is reduced to $ 6400 in 2018, $ 4800 in 2019 and then removed forever by 2020) for new (not used) automobiles. Of course, these numbers apply only to vehicles that are used completely for business. There is a reduction for vehicle use that is not fully attributed to business usage.

Partnerships

The Bipartisan Budget Act (the one that taxes would normally be addressed) has brought a sea change to the way partnerships will be treated, should the IRS find problems with their tax submissions. The changes do not take effect for a few years- but the time to address the changes is really now.

Basically, the Act stipulates that any change that comes about by an audit are to be collected directly from the partnership- unless the partnership elects out of TEFRA (Tax Equity and Fiscal Responsibility Act of 1982). So, it means that partnership formation, operations, new partner admissions, etc. will all have to be reconsidered.

What changed is this- the partnership can decide to accept an IRS decision that the underpayment is due from the partnership itself or it can elect to have that decision divided up among the partners, according to their percentage ownership or liability percentage. Most advisors are telling partnerships to elect the latter process. If the partnership does not so choose, then the IRS will assess the partnership at the highest tax rate allowed- 39.6%. Of course, if the partnership can prove (to the satisfaction of the IRS) that a lower rate is appropriate, based upon the individual tax rates of the partners, then a lower rate may be allowed. (Don’t bank on the IRS doing so.) However, this underpayment will not be allowed to change the basis of each of the partner’s interests, if the partnership is taxes for the liability.

If the partnership pushes the issues down to the partner level, then each partner is assessed for the tax at its own rate. And, the partnership can issue an adjusted (amended) K-1 for the IRS revisions that will change the basis and avoid the double taxation possibility. The partnership has 45 days from the date of the IRS notice of change to make this election.

There is another change that affects partnerships- the PAL (passive active loss) issue. Why? Because most partners and partnerships do not maintain pristine time records. (This also affects real estate rentals that are reported on Schedule E, page 1.) There are various definitions that set the PAL issues- for real estate professionals it is a minimum of 750 hours of work a year. The IRS has allowed other partnerships to use different designations, such as 500 hours, or the fact that a particular partner does all the work (even if less than 500 hours), or even when a partner spends 100 hours or more on the partnership and no one else does more.

But, the rules to prove how much participation are gelling. One can use a record of cell phone call records, eMails, or credit card charges. Travel itineraries and receipts can prove how much participation was involved. Even affidavits from customers and clients can be used to prove the time one participated in the venture.

Payments Due

The IRS has been starved to death for years by Congress. Partly because one party was angry that the IRS was not automatically granting those “social welfare” organizations (read as political collections and donation farms) tax exemptions without scrutiny. Partly because the IRS is responsible for collecting the penalties for those who don’t comply with Obamacare. (Hoping that this lack of funds would make it harder for them to do so.)

But, in my humble opinion, the solution Congress came up with sucks. The IRS has now been authorized to hire those bottom feeders- the outside collection agents, that harass and subject folks to all sorts of intimidation. The logic behind this choice? After all, folks who owe the IRS must be the scum of the earth. (Of course, no one ever considers the fact that the IRS makes mistakes, chooses random numbers to assess non-filing taxpayers who may actually owe nothing, etc.)

Many clients fall short of having sufficient funds to pay their taxes when due. This entails the taxpayer submitting a form 9465 (Installment Agreement Request). These must be automatically approved if the taxpayer [individual] owes (or will owe) the IRS $ 50,000 or less, with the addition of this request- and all tax forms have been timely submitted. (Businesses are limited to a $ 25,000 maximum, with the same provisos.) However, the fees involved to have the IRS process the request have been increased to $ 120, unless the taxpayer agrees to have the IRS zap their bank account automatically each month. Then, the fees are reduced to $ 52. (The IRS has way too many taxpayers “forgetting” to make timely payments. This is a way to incur fewer manpower issues for the service.) However, no matter how the payment is to be processed by the IRS, all low-income taxpayers (a family of 4, with $60K or less in income) won’t have to pay more than $ 43 to institute a payment plan. The biggest issue? Any taxpayer who is not in compliance with IRS code, who has no installment agreement in place, and owes $ 50,000 in taxes, penalties, and interest can find his passport revoked IMMEDIATELY. (If one is not yet issued, don’t expect the Department of State to issue one, either.)

Filing Dates

Individuals

There has been no change in the due date for 1040 filing, in that it is still due on 15 April (or the next business day, should the 15th fall on a weekend or legal holiday). Unless you can prove you were out of the country on 15 April- then you have the right to extend the filing date to 15 June. Or, you filed an extension request- that gives you until 15 October (with the same proviso for when it falls on a weekend or legal holiday).

Businesses

Here’s where the big changes arrive. And, it is about time. Because too many pass-through entities have been screwing over their partners, their stockholders by delaying their filing. Oh, sure, they may pay a penalty, but that doesn’t help the multitudes who can’t file their taxes in a timely fashion due to the lassitude of these entities.

So, from now on, all pass through entities- those are partnerships, LLCs, and S entities must no file their tax returns by the 15th day of the 3rd month after the end of their tax year. Recognize that the IRS allows companies that have “good” reasons to not use a natural year (i.e., 1 January to 31 December) to chose another month to end their tax year. But, for most entities, the due date will now be 15 March. Which gives the partners or the stockholders a month to finish their own tax returns. (Firms that operate on the US Government year, which ends 30 September, for example, must file their taxes by 15 November.)

Regular Corporations (C entities) no longer have to file by the 15th day of the 3rd month, but now have until the 4th month. So, for those companies operating on a natural year basis, the due date has been extended (permanently) from 15 March to 15 April. (A similar 15th day of the 4th month after year-end applies for those not operating on a natural year basis.)

Business, Trusts, Non-Profits, and Pension Plan Extensions

There is one more change for C corporations. Their extension is no longer 6 months long- but 5 months. In other words, before when they had to file by 15 March, but could extend the due date until 15 September… still have that same final extended due date, regardless that the original filing date is now 15 April.

Partnerships and S entities still have a 6 month extension- which also falls (for those who use a natural year) on 15 September.

Trusts and Estates of the Deceased file form 1041. The only extension request provided 5 months beyond the due date. Now, the due date is 5.5 months. That means the due date for filing is 15 April, but an extension means the due date can be 30 September.

Non-Profit entities file form 990 on 15 May- or the 15th day of the 5th month after the end of their fiscal year. Extensions used to be provided for 3 months; they now have more time- six month extensions are the new rules.

Employee Benefit Plans (Pension Plans, 401(k), welfare plans) must file their tax returns with the IRS by the last day of the 7th month after their year end. (For natural year plans, that means 31 July). Before the plans could extend that deadline by 2.5 months; now the rule provides for an additional month to 3.5 months.

Late Filing Penalties

The minimum penalty for filing late (more than 60 days) has been increased from $ 135 to $ 205. Except in certain cases, that penalty can be reduced to the amount of tax owed, which ever is smaller. (By 2017, the penalty will go up to $ 210.)

Which entities are affected by this change? Individuals (all forms 1040, including non-citizens). Estates and Trusts (Form 1041). Corporate Files (all forms of the 1120 filing). And, Non-Profit entities that can file a 990-T (they have unrelated business income of $ 1000 or more.)

There are more penalties, too. These were included in the Trade Package Legislation. The act included late filing of 1099 forms, W-2s, and 1095 (Health Care Reporting). You will note that the deadlines for some of these forms have been moved up- so pay attention and file them on time. Because the penalties can be $ 1060 for each delinquent 1099 form- because you have intentionally filed late to the government AND to the payee!

Of course, if you file the 1099 only 30 days late, the penalty is $ 50 (again- for each – the payee and the government). If you get your act together by 1 August, the penalty is $ 100 (again, for each). And, if you miss that date, the penalty is $ 250 each- unless the IRS feels it was intentional (and you know that number is $ 530).

There you have the big changes for the year. Now, you should be ready to file your taxes comes the 1rst of the year. But, don’t expect really fast refunds (as one would have expected before). Because the IRS is going to be checking to make sure the taxpayer is legit- they don’t want all those identity theft and tax fraud situations to obtain.

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