Cashing in a 401k for an Offer in Compromise

Filing an Offer in Compromise (OIC) is an excellent way to reduce your delinquent taxes with the Internal Revenue Service. However when making an offer with the IRS the questions always comes up as to whether or not a taxpayer has to cash in their 401 k plan to when making an offer to the government.

In making an OIC with the IRS, the taxpayer has to provide a lot of financial information to the government. This includes not only information on bank accounts, real estate, and vehicles but also on any 401k plans or other retirement plans that a taxpayer may have.

So on the financial disclosure form 433-A, the taxpayer will disclose the value of his 401k plan less any loans he may have against his 401K. Yet if the taxpayer were to take a distribution from his 401k plan, then the taxpayer would be subject to additional federal income taxes and state income taxes. This would then just make the taxpayer’s tax debt increase so what should a taxpayer do?

In this scenario, the taxpayer should disclose on form 433-A the value of his 401k less his loans, less the federal tax and less the state tax. For example let’s assume that John is 45 and is making an OIC to the IRS and he has $40,000 in his 401k plan. John has a $10,000 loan against his 401k plan so his net amount that he could take as a distribution is $30,000.

In regards to the taxes on this potential distribution, John would have to pay a 10{512b763ef340c1c7e529c41476c7e03bc66d8daea696e1162822661d30dde056} penalty for an early distribution since he is under the age of 59 ½. His federal tax rate is 25{512b763ef340c1c7e529c41476c7e03bc66d8daea696e1162822661d30dde056} so the total federal taxes associated with this distribution would be 35{512b763ef340c1c7e529c41476c7e03bc66d8daea696e1162822661d30dde056} and John’s state tax rate is 5{512b763ef340c1c7e529c41476c7e03bc66d8daea696e1162822661d30dde056}. So the total federal and state tax burden would be 40{512b763ef340c1c7e529c41476c7e03bc66d8daea696e1162822661d30dde056}.

This would then leave only 60{512b763ef340c1c7e529c41476c7e03bc66d8daea696e1162822661d30dde056} of the $30,000 or $18,000 as being eligible to pay off the delinquent taxes with an Offer in Compromise. This $18,000 is the dollar amount that John should disclose on form 433-A when he is making his offer in compromise to the IRS.

Preparing a successful offer in compromise is extremely time consuming and technical in nature. If you have delinquent taxes with the IRS and want to settle by making an OIC, then you should seek the professional assistance of an experience professional such as the author of this article, Michael McNamee.…

The Role of Oil in Nigerian Economy

It would be difficult to exaggerate the role of oil in the Nigerian economy. Since the first oil price shock in 1974, oil has annually produced over 90 percent of Nigeria's export income. In 2000 Nigeria received 99.6 percent of its export income from oil, making it the world's most oil-dependent country.

Oil production has also had a substantial effect on Nigeria's domestic sector. One way to characterize its impact is by looking at the rents produced by oil – that is, the returns in excess of production costs – in the Nigerian economy. From 1970 to 1999, oil generated almost $ 231 billion in returns for the Nigerian economy, in constant 1999 dollars. Since 1974, these rents have instituted between 21 and 48 percent of GDP.

Yet remarkably, these rents have failed to raise Nigerian incomes and done little to reduce poverty. Since 1970, Nigeria's per capital income has fallen by about four percent, in constant dollars. Although Nigerian poverty rates have never been well-measured, there is little indication that they have declined over the last three decades.

This lack of improvement is striking, given the size of Nigeria's oil windfall. Had each year's oil rents been invested in a fund that yielded just five percent real interests, at the end of 1999 the fund would be worth $ 454 billion. If divided among the general population, every man, woman, and child would receive about $ 3,750, equivalent to about 15 years of wages.

Oil has also had a deep influence on the Nigerian government. Since the early 1970s, the Nigerian government has already received over half of its revenues – sometimes as much as 85 percent – directly from the oil sector. These oil revenues are not only large, they are also highly volatile – that is, they can fluctuate drastically in size from year to year, causing the size of government, and the funding of government programs, to fluctuate accordingly. For example, from 1972 to 1975, government spending rose from 8.4 percent to 22.6 percent of GDP; By 1978, it dropped back to 14.2 percent of the economy.

Few Governments are able to cope with this kind of volatility, and it is not surprising – in retrospect – that the Nigerian government was unable to adhere to fiscal fiscal policies during the 1970s and 1980s, when oil prices fluctuated sharply. The decentralization of the Nigerian government made sound revenue management even more difficult, since much of the oil revenue has been automatically passed on from the federal government to the state and local Governments. The ability of these Governments to spend their funds wisely, and limit corruption, has been low.

Nigeria's oil wealth has also led to social and political unrest, particularly in the Niger Delta. The Igbo effort to secede from Nigeria, which led to the 1967-70 civil wars, was deeply rooted in ethnic tensions and Nigeria's colonial past; But the rebellion was encouraged by the presence of oil, and hence the belief that independence would …

Obama’s ‘Moms Return to School’ Government Grant Scholarship

Did you know that the new US government is committed to helping single moms return to school? Many mothers are not aware that the Obama’s ‘Moms Return to School’ Government Grant Scholarship is available, but there are big benefits to finding out as much as you can about this offer.

Despite the bad economy at the moment, now is a good a time as any to be considering going to college; especially if you are a mom. When the economy bounces back (which it always does), qualified workers are going to be in big demand. So having completed a degree is going to put you in prime position to get your ultimate job.

Here are some of the facts about the Obama mom scholarship and grants.

Federal Pell Grants

One of the first bills introduced by Obama, the Federal Pell Grants are being increased for low income students. That means the maximum grant allowed now is $5100 instead of $4050. There is even talk of raising it more. If you are a single mother then is one of the very best grants that you can get.

You can apply for this grant by choosing a college or university that you wish to attend. Make sure they are running your chosen program or course first.

You then fill out a deferral FAFSA form and have it submitted.

Tax Benefits for Studying Moms

Also keep in mind that the The American Opportunity Tax Credit program states that your first $4000 of higher education is free.

Grants for Online Study

You can certainly apply for Obama’s ‘Moms Return to School’ Government Grant Scholarship program if you are choosing to study online instead of on campus. In fact, online study is the most chosen path for moms who want to be at home with their children whilst being able to study at the same time.

You can also search out other suitable scholarships and grants for you. Some are particularly suited to moms and single moms and can offer even more money than the Federal Pell Grant.…

Why Socialism Is Unethical

Most people don’t understand why socialism is bad. You may think that’s crazy, because perhaps you know the difference, but the reality is that socialism sounds pretty good when you’re in college, and you get good grades for merely mimicking and repeating what the professors telling you. I find it rather unfortunate that our colleges and universities are subsidized by tax dollars, and yet they are being used for indoctrination and brainwashing into the belief that socialism is better than capitalism. It’s not. And let me explain why.

With capitalism if you want more, you have to work for it, and when you work for it you provide labor, or goods and services to the marketplace so someone else can get what they want. With socialism, you demand that you get something, something you didn’t work for, and you demand that someone else pays for it. Really, that is stealing, but it doesn’t seem like it’s stealing because the government is taxing another group of people and taking that money, spending a little bit (theory, in reality they spend a lot) in administration, and giving you the difference.

Because you are one level removed from the situation, it doesn’t feel like stealing, but it actually is. Let me put it this way if we raise the taxes on the people next door you by $699 per year, and the government gave you a $699 iPad which the people next door didn’t get, then in a way they’d be paying for your iPad because the government stole the money from them to give you something. Do you see that?

Socialism is also unethical because it goes against what we consider to be human rights, and also what we consider to be our rights as Americans, namely; freedom, liberty, and the pursuit of happiness. If the government controls every aspect of your life as if you were a teenager, just as your parents perhaps tried to do, then you can understand why people call the rise of socialism; a nanny state. Governments like socialism because it’s easier to control the people.

But there are two other items I’d like you to consider when it comes to socialism, as it;

Destroys the Individual for the Whole
Curbs Innovation Except Where the Organism Takes It

Why don’t you think about those two items, and consider what I’ve said previously in this article, and I think it will be readily apparent how true it really is that socialism is unethical. If you don’t believe it, look around at what’s happening, and consider where we are going with all this. Not only is it un-American, it’s not right for our future, and the United States of America need not become another Greek tragedy. Indeed I hope you will please consider all this and think on it.…

Philippine Independence Day – Facts You Should Know About the Philippine Independence Day

It was yesterday when it brought to my attention about Philippine Independence Day. I was curious about where it started and who was behind this historical event. Here is what I found…  

The most momentous achievement of Aguinaldo’s Dictatorial Government was the proclamation of Philippine Independence in Kawit, Cavite, on June 12, 1898.  

Apolinario Mabini’s opposition  

General Emilio Aguinaldo thought that it was necessary to declare the independence of the Philippines with a government in operation. Aguinaldo believed that doing this would inspire the people to fight more eagerly against the Spaniards and he also thought that it will lead the foreign countries to recognize the independence of the country. Apolinario Mabini, who was Aguinaldo’s unofficial adviser at that time, objected. He based his opposition on the fact that it was more imperative to reorganize the government to convince the foreign powers of the competence and stability of the new government than to proclaim Philippine independence at such an early stage. Aguinaldo, on the other hand, stood his ground and won.  

Presidential Proclamation No. 28  

The United States recognized Philippines independence on July 4, 1946. But President Diosdado Macapagal, the Grandfather of the current president of the Philippines, signed the Presidential Proclamation No. 28, changing the official celebration to June 12, 1898. That was the day that Emilio Aguinaldo declared the Philippine’s independence from Spain.  

June 12, 1898: The Proclamation of Philippine Independence  

Independence was proclaimed on June 12, 1898 in Cavite at the ancestral home of General Emilio Aguinaldo. The event saw the unfolding of the National Flag of the Philippines and the performance of the Marcha Filipina Magdalo (Lupang Hinirang), as the Nation’s National Anthem. The Act of the Declaration of Independence was written by Ambrosio Rianzares Bautista, who also read it. The Philippine Declaration was signed by ninety-eight persons, one of them was an American army officer, L.M. Johnson, Colonel of Artillery, who witnessed the proclamation.  

The Philippine flag was made in Hong Kong by Mrs. Marcela Agoncillo, Lorenza Agoncillo and Delfina Herboza. The Philippine National Anthem was composed by Julian Felipe and played by the San Francisco de Malabon Marching band.   This year is the 111th Philippine Independence Day celebration. It is being celebrated with traditional flag raising ceremony and occasional programs with lots of Philippine flags that can be seen everywhere from home to schools, government and private establishments and also in public places and transportation.

Real Andrews is a Certified Personal Trainer & Gym Owner. An actor by profession who is very passionate about the health and wellness industry, He is very passionate about making a difference in the State of health in our Country. Please visit his blog for more related articles. Real is an expert at helping people achieve their dreams & Goals. You might recognize him as Lt. Taggert from the ABC Show General Hospital. …

Applying the Broken Windows Theory to Code Enforcement in Urban Communities

The 2008 to 2012 global recession resulted in a landscape of abandoned homes in many neighborhoods across the United States due to the crisis that severely impacted the real estate and financial markets. Although very few communities were spared the negative effect of scattered vacant and unmaintained homes, this large spread dilemma impacted many urban areas more significantly as residential property values and socio-economic conditions were already compressed by limited personal household and public resources. But this rise in properties that once were homes to families known and seen to neighbors that now had become edifices of visual neglect, unsafe locations, and prime targets for eventual squatting, created an environment for widespread concern and reaction from all levels of government. At the local government level, one by one, each jurisdiction began adopting new policies and implementing programs in an effort to curtail the problems associated with extended periods of property maintenance neglect caused by the abandonment by owners, and seemingly lackadaisical response by the financial institutions that became responsible for those assets.

Control in a Changing Neighborhood Environment

Code Enforcement agencies immediately responded to the distress calls and complaints from neighbors and community leaders that had become desperate to try to eradicate the problems associated with the conditions of these abandoned homes, but quickly became overwhelmed both by demand for services and funding necessary to provide adequate property maintenance and nuisance abatement. Vacant property registration programs quickly found their way into local legislation that shared common requirements for mortgagees or ‘banks’ to step in after a property was abandoned by their owners and take responsibilities to provide proper responsible party information, local property management, routine maintenance and security. These registration programs, due to the requirements imposed on the banks, actually provided a sense of structure and control that was needed in order for the banks to properly respond and for communities to feel a sense of control. While these programs were highly effective, the slow turnover rate of these properties to new owners, still left neighborhoods with homes that are visibly unoccupied, not well-maintained, and subject to continuous vandalism and trespass.

The economic decline also hit property owners of homes and rentals who walked away from properties where there were no mortgages leaving no interested parties to immediately step in and take responsibility for maintenance adding another level of concern for areas that were already economically depressed and dealing with higher incidents of criminal activity. In a response to citizens to create safer communities and increase livability, one of the theoretical tools used in the practice of law enforcement, the broken windows theory, is making its way into the thinking of how to attain environments free from visual signs of neglect and public nuisances through its application to code enforcement efforts.

The Broken Windows Theory

The broken windows theory is based on the premise that unimpeded disorder in urban communities leads to additional crime and anti-social behavior. This criminological theory was introduced in 1982 by two social scientists, James Q. …

How Washington DC was Chosen as Capital of the United States

The War of Independence had left the fledgling America free, but in turmoil. There was as yet no President and the country was a loose conglomeration of more or less independent states. Many soldiers who had fought in the war had yet to be paid for it and there was no official center of government to pay them. Philadelphia’s Old City Hall was the only place the where the leaders of the revolution routinely met and in 1783 they decided it was time to designate a new national capital.

While most people agreed on the need for a national capital nobody could agree on just where it should be. People who lived in the northern states favored either New York City, Philadelphia or Germantown which is now part of Philadelphia. People who lived in the southern states were unsure about a central government, especially one with a capital city located in the north. For a time Germantown was actually designated as the new national capital but when no action was taken the debate lingered on for years. When George Washington was elected President of the United States in 1789 he was president of a country that had yet to agree on the location of its capitol city

The entire issue was further complicated when Secretary of the Treasury Alexander Hamilton proposed that all the state debts incurred while fighting the War for Independence should be assumed by the federal government. To the people of the northern states this sounded like a great idea since their sates owed quite a bit more than the southern states. But the people of the southern states felt this might give the federal government too much power and there was even talk among some southern states about secession from the union. A vote was taken in the Continental Congress and the proposal lost by a margin of just two votes and it was a bitter defeat that left everybody unsatisfied and searching for answers.

Determined to see things through Hamilton sought out James Madison and Thomas Jefferson and asked to talk to them about the problems their country was facing. Jefferson graciously invited Hamilton and Madison to dinner at his home and the men sat down to see if they could solve their differences on the issues of their day. At this meeting Hamilton suggested that the nations capital stay in Philadelphia for the next ten years and then be moved to a site on the Potomac River near Georgetown as this would be more acceptable to the southern states. In exchange for this he asked Jefferson and Madison to convince two friends to reverse their votes on his proposal. Jefferson and Madison agreed to this and even President Washington was pleased with the plan to place the nations capital on the Potomac River.

And so it was that on July 16, 1790 an act of Congress was passed that established the location of Americas capital city at a place first known to the Native …

New Zealand 141114: A Powerful Date for Maori, Or Just More Whitewash?

After another very lengthy (and costly) Tribunal, set up by the New Zealand Government, comprised of Judge Carrie Wainwright (presiding), Professor Wharehuia Milroy, Dame Margaret Bazley, and Professor Ranginui Walker, and was assisted by consulting historian and Tribunal member Dr. Robyn Anderson, the unanimous conclusion was that the Maori peoples NEVER conceded Sovereignty to the British at the signing of Te Tiriti O Waitangi (Te Tiriti O Waitangi).

Because of this, for well over a century, the Maori peoples have been treated as ‘second -class’ citizens within their own country. This has in many cases dramatically affected their health, their livelihoods, their status as landowners, their access to and protection of their ancestral heritage sites, and their ability to have any voice in the running of what was – and still is – their own country.

It is interesting to note that Chis Finlayson, Treaty Minister, basically dismissed the Tribunal findings out of hand, stating that the current New Zealand Government still holds Sovereignty over New Zealand. This quote, by him, typifies the attitude of many New Zealand politicians. “There is no question that the Crown has Sovereignty in New Zealand. This report doesn’t change that fact.” So why did the NZ Government commission such a Tribunal investigation, and why are they looking at the next stage of the Tribunal, which is to ascertain if and when the Government ‘assumed’ sovereignty? If the reaction is the same as it has been to Part 1 of the Tribunal, then why waste any more time and money on a report that allegedly will never be taken seriously by the current New Zealand Government?

The Maori people of New Zealand (or Aotearoa as they would prefer to call it), like many other Indigenous (or First Nations) Peoples around the world, are beginning to stand up for their dignity as a Nation in their own right, and not just some subjugated tribe of savages. The United Nations is very well aware of this, and allocates a lot of their time in supporting changes in these people’s status. So why will the New Zealand Government not take note of a Tribunal that they themselves had commissioned?

Towards the achievement of this aim, in 2006 the Maori Confederation of Chiefs bestowed on His Excellency Chief Charles Hohepa the greatest honour of the Maori Nation – he was SELECTED (not elected) to be the first Sovereign Mandate – the Sole Protector – of the Maori Nation. His Excellency Chief Charles Hohepa, has for many years been attempting to raise international funds that will see the status and the well-being of many Maori vastly improved, including the establishment of a new Capital City to be built at Waitangi, as the new focal point of the Maori Nation. He is doing this in his capacity of Sovereign Head of the Matua Karanga Foundation. To reach such an exulted position within a Nation requires a very powerful character with a strong moral code, as well as the ability to take …

Do You Qualify For Obama's Moms Return to School Government Grant Scholarship?

The new Obama administration has made a commitment to assist single mothers to return to school. It sees though that most mothers do not realize that Obama's 'Moms Return to School' Government Grant Scholarship even exists! That is a shame as there are so many benefits to be had with this opportunity.

Even though the economy is not great at the moment you should not let that deter you from going to college – even if you are a mom!

The economy always comes back strong and when it does, your college qualifications will put you in a great position when you are finding work. You will have skills that employers want and you will not have a problem finding a job you love and one that pays well.

Federal Pell Grants

The Federal Pell Grants were one of the first points of call for Obama when he became President. He has increased the amount of the grant for low income students. The amount is now $ 5100 and it used to be $ 4050 – and he may raise it more in the near future. This is great news for moms who wish to go to college and can not afford to pay for it.

How to Apply

First you should find a college that has the program you want to do. Then simply fill out the deferral FAFSA form and submit it.

Studying Moms Get Tax Benefits

Thanks to The American Opportunity Tax Credit program you will get your first $ 4000 of education fees for nothing. As a mom this is going to take a great weight off your shoulders.

Online Study Grants

If you choose to study via online education then you can still apply for the Obama Moms Scholarship. There is no doubt that studying with online education is the best choice for most busy moms who prefer not to leave their kids to go off to college.

If you feel that the Obama 'Moms Return to School' Government Grant Scholarship is not suitable for you then do not worry: there are certainly other scholarships that you can apply for so that you can get the money you need to go to college. …

Constitutional Development in Sierra Leone – The Blackhall Experience

The Colony of Sierra Leone

Henry Smeathman, the botanist, recommended Sierra Leone as the most advantageous place for the establishment of a settlement.1 Established as a Crown Colony in 1808, the Sierra Leone peninsula and the areas directly to the south of it were governed by a Governor-in-Council who combined both Executive and Legislative authority. This system prevailed until 1863 when the Executive and Legislative functions were divided between an Executive Council and a Legislative Council. Though the new councils marked a step away from the earlier form of colonial autocracy, it is argued that they were not intended as a move towards self-government.2 The Colony of Sierra Leone then was inspired by the humanitarian opposition to the institution of slavery and nurtured by the British determination to end the Slave Trade. By the middle of the eighteen century, the system of slavery was not too popular with the English. On several occasions, public attention was drawn to the question as to whether a slave should become free after arriving on English soil. The philanthropist Granville Sharp struck an effective blow in 1772 when “a test case was provided in the case of a slave named James Somerset, who had been brought to England from Jamaica by his master and had subsequently run away from him”3. The principles laid by Lord Chief Justice Mansfield of the English High Court in the case Somerset v. Stewart implied that any slave setting foot in England should be deemed a freeman. He noted that “the state of slavery… is incapable of being introduced on any reasons…I cannot say this is allowed or approved by the law of England and therefore the black man must be discharged”.4 This famous Mansfield Decision stimulated the Christian philanthropy of men like Sharp and Wilberforce.

The consequence of this judgement was the liberation of hundreds of slaves living in England. During the American War of Independence (1776-1983), the British encouraged slaves in America to desert their masters to join the British army in return for freedom and land. After the War – which Britain lost- some of these slaves went to Nova Scotia (Canada) and some to London. In London, these former slaves were beset with many problems. Their freedom definitely did not mean equality with British subjects. Often destitute, most of these freed slaves wandered about the streets of England distressing the kindhearted and men of property. They posed an awkward social problem. The victor and hero of the Somerset case, Granville Sharp, maintained a growing number of these slaves collectively referred to as the Black Poor. It did not take long for Granville Sharp to realize that the problem was more than private charity would cope with. As a remedial agency, a considerable number of philanthropists formed a Committee for relieving the Black Poor in 1986 known as the Committee of the Black Poor. This Committee was chaired by Jonas Hanway. It was during this period of uncertainty that a certain individual Dr. Henry Smeathman, alias …