Liberty Tax Service, the fastest-growing tax preparation company in history, announced that its Hispanic community initiative, “Una Familia Sin Fronteras” (A Family Without Boundaries), is expanding to offer 37 live radio programs in key Hispanic markets throughout the US in 2012. All shows will continue to feature Doña Libertad (Lady Liberty), an easily-accessible, trustworthy financial information advisor and resource for the Hispanic community, along with local Liberty Service tax professionals.

From January through April, Liberty Tax Service is sponsoring and hosting 37 live weekly 30-minute Spanish-language radio programs nationwide that provide listeners with wide-ranging education and advice about the US tax system, including the importance of paying US income tax, as well as the benefits and application process for ITIN’s (tax ID’s) for non-resident taxpayers and all members of their families. The radio show is interactive and provides a convenient way for Spanish-speaking listeners to call in, ask questions on the air and get reliable advice about the tax process and their obligations in their own language. The shows are already proving to be of great interest to listeners. In January alone, over 950 calls had been received from consumers with all sorts of financial questions, allowing Liberty Tax to help clarify doubts and resolve issues for listeners throughout the country. All programs are hosted by bilingual tax professionals from local Liberty Tax Service offices, certified with Liberty’s Hispanic Services Seal of Excellence, indicating they have acquired the appropriate Hispanic-specific tax and culture training for competency in communication and performance in Hispanic communities. Only certified offices are allowed to participate in the Una Familia Sin Fronteras corporate Hispanic initiative.

Additionally, through a series of PSAs and guest appearances on these radio shows, Liberty Tax Service is providing local and national nonprofit organizations with free airtime to provide valuable health and service information to the Hispanic community. The partnerships with these various community organizations seek to improve the lives of Hispanic community members via FREE education on key issues and topics, family and individual support programs, and community-building programs.

Liberty Tax Service ~ Una Familia Sin Fronteras ~ has also created a series of 30-minute informative TV shows, currently airing on Univision 40 in Raleigh-Durham-Fayetteville and on Univision 39 in Bakersfield, California. These shows feature Liberty professionals offering advice and tips about topics ranging from obtaining a Tax ID (ITIN), to ways that small business owners can save money on taxes, to tax advice for unemployed workers. Additionally, the show features interviews with Una Familia Sin Fronteras partners, including the General Consul of Mexico in North and South Carolina, as well as Spanish-language spokespeople from American Red Cross and MADD (Mothers Against Drunk Driving).

Doña Libertad (Lady Liberty) is a corporate icon who was created to help Spanish-language preferring consumers feel more comfortable with a consultant that represents their culture. The goal of Liberty’s Doña Libertad is to increase the knowledge about financial and fiscal responsibility, enhance financial literacy, provide education about first-time homeownership, as well as to teach tax management for Hispanics across the US through FREE educational programs. Doña Libertad’s friendly, graphically-represented persona brings this important information to Hispanic consumers through a non-threatening character.“ Through Doña Libertad and our interactive Spanish radio formats, we are acting as educators and advocates for the empowerment of our Hispanic communities across the nation that only education can provide,” explains Martee Pierson, Director of Diversity Programs for Liberty Tax Service. “Our work with Hispanic adult outreach programs through over 400+ partnerships that includes school districts, nonprofit organizations and Mexican Consulates across the US allows Doña Libertad to reach thousands of new immigrants with free information that will help them meet their fiscal obligations, as well as benefit from the many free services our partner organizations provide.” Doña Libertad helps the Hispanic community through providing advice on Liberty’s broadcast programming and on her webpage http://www.libertytaxespanol.com/blogs/cliente/ , Facebook page (DonaLibertad) and Twitter account (@DonaLibertad) Consumers can also email Doña Libertad directly at dona.libertad@libtax.com with their questions and concerns. A complete list of radio and TV programs can be found on Doña Libertad’s Facebook page https://www.facebook.com/DonaLibertad?sk=events.

Liberty’s Una Familia Sin Fronteras is an educational outreach program that brings financial and fiscal education seminars and courses to Hispanic communities across the nation, at no cost. Courses and seminars are taught in Spanish and many qualify for college credits through the University of Phoenix. “Liberty Tax Service has long been involved in community service and educational projects on a national level. To better serve the Hispanic community, we created the Una Familia Sin Fronteras initiative to bring value, education and ultimately, financial and fiscal success to Hispanics throughout the United States,” says John Hewitt, Founder and CEO of Liberty Tax Service.

Liberty Tax Service, la compañía de preparación de impuestos con mayor crecimiento en la historia de esta industria, anunció que su Iniciativa Hispana, “Una Familia Sin Fronteras”, se está expandiendo a ofrecer 37 programas de radio en vivo alrededor del país durante 2012. Doña Libertad, la consejera financiera confiable y accesible de Liberty Tax Service, participa en todos los programas con consejos importantes para la Comunidad Hispana, además de profesionales de Liberty Tax de la comunidad local.

Desde enero y hasta abril, Liberty Tax Service estará patrocinando y llevando a cabo 37 programas de radio de 30 minutos, en vivo y en español, a nivel nacional para proporcionar a los radioescuchas una amplia y profunda educación y consejería acerca del sistema fiscal de los Estados Unidos, incluyendo la importancia de pagar impuestos, así como los beneficios y procesos de aplicación para obtener un ITIN (Número de identificación fiscal) para individuos no residentes y miembros de sus familias. El programa de radio es interactivo y les ofrece una forma sencilla a los radioescuchas de habla hispana para que llamen, hagan preguntas al aire y obtengan respuestas confiables acerca del proceso fiscal y sus obligaciones, en su propio idioma. Las diversas comunidades alrededor de la nación han demostrado su interés en la materia impositiva. Sólo en enero, más de 950 llamadas con inquietudes fueron recibidas y clarificadas beneficiando enormemente a los contribuyentes hispanos. Los anfitriones de los programas de radio son profesionales de impuestos bilingües de las oficinas locales de Liberty Tax Service, y están certificados con el Sello de Excelencia de Servicios Hispanos (Hispanic Services Seal of Excellence ) de Liberty, lo cual indica que ellos han adquirido el entrenamiento sobre impuestos para Hispanos adecuado para efectos de comunicación y desarrollo con las Comunidades Hispanas. Sólo se les permite participar a las oficinas certificadas en la iniciativa corporativa “Una Familia Sin Fronteras“.

Adicionalmente, a través de una serie de anuncios del servicio público (PSAs) y apariciones como invitados en estos programas de radio, Liberty Tax Service está proporcionando a organizaciones sin fines de lucro locales y nacionales, tiempo al aire de forma gratuita para dar información valiosa acerca la salud y otros servicios a la Comunidad Hispana. Las asociaciones con las diferentes organizaciones comunitarias buscan mejorar la vida de los miembros de la Comunidad Hispana por medio de educación GRATUITA sobre los problemas clave, temas sobre la familia, programas de apoyo individual y programas que ayudan a fortalecer a la comunidad.

Liberty Tax Service ~ Una Familia Sin Fronteras – también ha creado una serie de programas informativos de 30 minutos en televisión, actualmente siendo presentada en Univisión 40 en Raleigh-Durham-Fayetteville, NC, y en Univisión 39 en Bakersfield, California. Estos programas de televisión presentan a profesionales de Liberty que ofrecen consejos significativos sobre diferentes temas desde como obtener un Numero de Identificación Tributario (ITIN), consejos para que propietarios de pequeñas empresas pueden ahorrar dinero al hacer sus impuestos, hasta consejos para trabajadores desempleados. Adicionalmente, esta programación representa entrevistas con aliados de Una Familia Sin Fronteras, incluyendo el Cónsul General de México de Carolina del Norte y Sur, así como representantes de habla-hispana de la Cruz Roja Americana y MADD (Madres en Contra de Conducir en Estado de Ebriedad).

Doña Libertad es un ícono corporativo que fue creado para ayudar a los clientes que hablan español preferentemente a sentirse más cómodos con una consejera que representa su cultura. La meta de Doña Libertad es aumentar y mejorar el conocimiento financiero y de responsabilidad fiscal, proporcionar educación a las personas que compran casa por primera vez, así como enseñar administración fiscal a los Hispanos a través de los Estados Unidos, por medio de programas educativos GRATUITOS. Doña Libertad es una persona amigable, representada en forma de caricatura que brinda esta importante información a los clientes Hispanos por medio de un personaje muy sano.“ A través de Doña Libertad y de nuestros otros formatos interactivos en radio en español, estamos actuando como educadores y defensores para darles el poder necesario a nuestras Comunidades Hispanas por todo el país que sólo la educación les puede dar,” explica Martee Pierson, Directora de Programas de Diversidad para Liberty Tax Service. “Nuestro trabajo con los programas de alcance de adultos Hispanos a través de más de 400 alianzas incluyendo distritos escolares (número que continúa en ascenso), organizaciones sin fines de lucro y Consulados Mexicanos en los Estados Unidos permite a Doña Libertad alcanzar a miles de nuevos inmigrantes con información gratuita que les ayudará a cumplir sus obligaciones fiscales, así como beneficiarlos con los muchos servicios gratuitos que nuestras organizaciones asociadas proporcionan.”

Doña Libertad ayuda a la Comunidad Hispana a través de programas de radio y televisión patrocinados por Liberty Tax y también a través de su página de Internet http://www.libertytaxespanol.com/blogs/cliente/ , su página de Facebook (DonaLibertad), y su cuenta en Twitter (@DonaLibertad). Además, cualquier persona puede enviar por correo electrónico (dona.libertad@libtax.com) sus preguntas para obtener una respuesta personal por parte de esta “CONFIABLE CONSEJERA DE LA COMUNIDAD”. Una lista completa de los programas de radio y televisión aparece en la página de Facebook de Doña Libertad https://www.facebook.com/DonaLibertad?sk=events

La Iniciativa Hispana de Liberty Tax “Una Familia Sin Fronteras” es un programa de alcance educacional que brinda seminarios y cursos de educación financiera y fiscal a las Comunidades Hispanas por todo el país, sin ningún costo. Los cursos y seminarios son impartidos en español y muchos de ellos califican como créditos universitarios en la Universidad de Phoenix. “Liberty Tax Service ha estado envuelto por mucho tiempo en proyectos educacionales y servicios comunitarios a nivel nacional. Para servir mejor a la Comunidad Hispana, creamos la iniciativa “Una Familia Sin Fronteras” para brindar valores, educación y finalmente, éxito financiero y fiscal a los Hispanos en todo el país”, comentó John Hewitt, Fundador y CEO de Liberty Tax Service.

There are people out there that are con artists who claim they can obtain for their victims, a tax refund or nonexistent stimulus payment centered on the American Opportunity Tax Credit, even if the victim was not enrolled in or paying for college.

These individuals falsely claim that refunds are available even if the victim went to school decades ago. In many cases, con artists are targeting seniors, people with very low incomes and members of church congregations with false promises of free money. These scammers also claim that the college credit can compensate their victims for paying taxes on groceries.

These schemes are quite costly for victims. These artists charge excessive upfront fees to file these claims and are long gone when their victims begin to discover they have been scammed.

Taxpayers should be careful of these scams because no matter who prepared their tax return it is ultimately up to the taxpayer, who is legally responsible, to make sure of the accuracy of their tax return. It will be the taxpayer who will have to repay all refunds received in error including penalties and interest. It can even become a living nightmare because the taxpayer can and may face criminal prosecution.

To avoid becoming a victim to these scam artists’ schemes, Liberty Tax Service recommends following what the IRS says taxpayers should beware of:

• Fictitious claims for refunds or rebates based on false statements of entitlement to tax credits.
• Unfamiliar for-profit tax services selling refund and credit schemes to the membership of local churches.
• Internet solicitations that direct individuals to toll-free numbers and then solicit social security numbers.
• Homemade flyers and brochures implying credits or refunds are available without proof of eligibility.
• Offers of free money with no documentation required.
• Promises of refunds for “Low Income – No Documents Tax Returns.”
• Claims for the expired Economic Recovery Credit Program or for economic stimulus payments.
• Unsolicited offers to prepare a return and split the refund.
• Unfamiliar return preparation firms soliciting business from cities outside of the normal business or commuting area.

In recent weeks, the IRS has identified and stopped an increase of these scandalous refund claims which are coming in from all over the US. The IRS is actively investigating the sources of these schemes and trying to find the organizers so they can be brought to justice with criminal prosecution.

Liberty Tax Service, the fastest-growing tax preparation company in history, announced that its Hispanic community initiative, “Una Familia Sin Fronteras” (A Family Without Boundaries), is supporting American Red Cross Month in Hispanic communities nationwide, helping generate awareness of the American Red Cross’s lines of service in the local community, promote blood donation in the Hispanic community, and raise funds for community programs and disaster relief.

Spanish-speaking representatives of the American Red Cross will participate as guests on 37 live 30-minute Una Familia Sin Fronteras radio shows nationwide sponsored by Liberty Tax Service, providing information about their services to the Hispanic community, and encouraging blood donations. American Red Cross representatives will also be guests on 30-minute Una Familia Sin Fronteras in several markets.

Liberty Tax Service is also working with the American Red Cross to set up and promote blood drives in Hispanic communities throughout the US. The American Red Cross will have their mobile units and trained staff at Liberty Tax Service offices or at community organizations. Liberty Tax Service volunteers will register blood donors, offering giveaways and refreshments to all participants. The blood drives will be promoted in local Liberty Tax Service offices and events, as well as on the local Spanish-language radio stations through the Una Familia Sin Fronteras radio shows as well as PSAs.

At present, the blood supply at the American Red Cross is at a critical low, emphasizing the need to connect with and educate all communities. “We want to ensure that all services are not only available, but known in the minority and diverse communities we serve – not only be a part of the community, but partner with those community leaders. And, we want to assist with the education and understanding of the need for blood donation along with all the services provided by the American Red Cross,” says Vincent Edwards, Executive Director for Biomedical Services at the American Red Cross. “Liberty Tax Service’s unique Hispanic community outreach program, Una Familia Sin Fronteras, allows us to reach a traditionally underserved community efficiently and effectively, on a national basis. We truly value our partnership.”

Liberty Tax Service and the American Red Cross have been strategic partners since 2010. The objective of the partnership is to identify communities and organizations in which the American Red Cross has minimal or no presence and provide them with information on the American Red Cross lines of service, as well as to raise funds for American Red Cross initiatives. In 2011, following the Japan Earthquake and Pacific Tsunami, Liberty Tax Service was able to raise over $38,000 to assist the American Red Cross in its disaster relief programs. And in 2012, the alliance has expanded to set up blood drives in communities throughout the US.

Liberty’s Una Familia Sin Fronteras is an educational outreach program that brings financial and fiscal education seminars and courses to Hispanic communities across the nation, at no cost. Additionally, alliances have been established by Liberty Tax Service’s Diversity Programs team than enable over 400 national, regional and local organizations with important messages for the Hispanic community to provide these messages at no cost. “Liberty Tax Service has long been involved in community service and educational projects on a national level. To better serve the Hispanic community, we created the Una Familia Sin Fronteras initiative to bring value, education and ultimately, financial and fiscal success to Hispanics throughout the United States,” says John Hewitt, Founder and CEO of Liberty Tax Service.

Liberty Tax Service, la compañía de preparación de impuestos de mayor crecimiento en la historia de la industria, anunció que su iniciativa para la comunidad hispana “Una Familia Sin Fronteras” (A Family Without Boundaries), está apoyando el Mes de la Cruz Roja Americana en comunidades hispanas localizadas alrededor del país, ayudando a generar conciencia sobre los servicios de la Cruz Roja Americana para la comunidad local, promover la donación de sangre en la comunidad hispana y recaudar fondos para programas comunitarios y ayuda en caso de desastres.

Una Familia Sin Fronteras es el programa educativo de Liberty que ayuda a la comunidad otorgando seminarios, cursos financieros y fiscales a las comunidades hispanas en todo el país, sin costo alguno. Además, las alianzas han sido establecidas por el Equipo de Programas de Diversidad de Liberty Tax que genera más de 400 alianzas con organizaciones nacionales, regionales y locales con mensajes importantes para la comunidad hispana y proveen estos mensajes sin costo alguno. “Liberty Tax Service ha estado involucrado en el servicio a la comunidad y en proyectos educativos a nivel nacional por mucho tiempo. Para servir mejor a la comunidad hispana, hemos creado la iniciativa Una Familia Sin Fronteras para aportar valor, educación y en última instancia, el éxito financiero y fiscal para los hispanos en los Estados Unidos,” dice John Hewitt, Fundador y CEO de Liberty Tax Service.

1. Tips are taxable: The IRS states the tips are taxable and qualify for Federal Income, Social Security and Medicare taxes.  The IRS does not consider a “tip” as just cash. Instead, non-cash items such as any tickets, passes, electronics, watches, or other items – just about any item which carries a value, will also be considered as a form of income and will be subject to a tax.

2. Include all tips on your tax return:  All tips you receive, whether directly in cash, by credit card, or tips received by the tip-splitting arrangement at your job, should be claimed as gross income.

3. Report tips to your employer: Your employer is supposed to withhold Federal Income, Social Security and Medicare taxes automatically from your tips if they amount to $20 or more in any month.  Always report all your tips to your employer.

4. Keep a daily log of your tips: If you haven’t already done so you should begin keeping a daily log of you tips. The IRS has gone a step further to assist you in keeping that daily log by creating IRS Publication 1244, the Employee’s Daily Record of Tips and Report to Employer, to help you record your tips daily.

Source: irs.gov, Tax Tips 2012-14, Liberty Tax Service ~ Una Familia Sin Fronteras

Liberty Tax Service ~ Una Familia Sin Fronteras ~ received recognition for its support of the Hispanic community in San Antonio, as well as its support of the education of the less fortunate. The Director of Diversity Programs, Martee Pierson, received a beautiful plaque from the Mexican Consulate and the Secretary of Public Relations of Mexico.

Liberty Tax Service and the Mexican Consulate in San Antonio have great plans for continued support and education of the Hispanic community in 2012.

www.latinvision.com/leaders

www.latinvision.com/lideres

“America’s young people face record unemployment, and we need to do everything we can to make sure they’ve got the opportunity to earn the skills and a work ethic that come with a job. It’s important for their future, and for America’s. That’s why I proposed a summer jobs program for youth in the American Jobs Act – a plan that Congress failed to pass. America’s youth can’t wait for Congress to act. This is an all-hands-on-deck moment. That’s why today, we’re launching Summer Jobs+, a joint initiative that challenges business leaders and communities to join my Administration in providing hundreds of thousands of summer jobs for America’s youth,” said President Obama.

“While young people who are currently disconnected from school or work are not contributing to our economy, we see these young people as ‘Opportunity Youth’ – because of the untapped potential they bring to the Nation. Today, the White House challenged all sectors to go all-in and work together in creating pathways to youth employment. Summer jobs are an important step – and to stay on the path to success, Opportunity Youth need social supports and access to relevant education, mentoring and training. This spring, the White House Council for Community Solutions will participate in community discussions nationwide to learn from best efforts by youth, families, government, business, educators, and nonprofits to connect young people to meaningful career opportunities,” said Patty Stonesifer,Chair of the White House Council for Community Solutions (WHCCS).

The Administration also announced its intention to launch, within 60 days, the Summer Jobs+ Bank, a one-stop search tool for youth to access postings for any participating employers seeking to reach them where they are online. The search tool builds upon an open standard, the JobPosting schema endorsed by schema.org in November, 2011 in support of the Veterans Jobs Bank,and will include technical and promotional support by Google, Internships.com, AfterCollege, LinkedIn and Facebook. Today the Corporation for National and Community Service released a new toolkit created in collaboration with the WHCCS and employers to support businesses and communities in their efforts to help young people become productive citizens and connect to greater opportunities, both of which are critical for the long-term strength and competiveness of the Nation.

Today’s announcements build on previous commitments from the Obama Administration to support summer youth employment. In 2009 and 2010, communities across the country used Recovery Act funds to directly support summer work opportunities for over 367,000 young people. In the summer of 2011, the Department of Labor brought together private sector commitments to employ over 80,000 youth.

A new analysis released today by the WHCCS showed that in 2011 alone, taxpayers shouldered more than $93 billion in direct costs and lost tax revenue to support young adults disconnected from school and work. Over the lifetime of these young people, taxpayers will assume a $1.6 trillion burden to meet the increased needs and lost revenue from this group. Read the full analysis here.

Businesses, non-profits and government can accept the President’s call-to-action by directly hiring youth as well as providing corporate mentorship experiences, internship, and other opportunities that connect young people to jobs. The three key ways organizations can engage are:

Learn and Earn: Provide youth jobs for the summer of 2012 in the form of paid internships and/or permanent positions that provide on-the-job training. Of the roughly 180,000 job commitments announced today more than 70,000 are Learn and Earn commitments

Life Skills: Provide youth work-related soft skills, such as communication, time management and teamwork, through coursework and/or experience. This includes resume writing or interview workshops and mentorship programs.

Work Skills: Provide youth insight into the world of work to prepare for employment. This includes job shadow days and internships. More information about this initiative can be found at dol.gov/summerjobs
As the nation continues to recover from the deepest recession since the Great Depression, American youth are struggling to get the work experience they need for jobs of the future.

According to the Department of Labor’s Bureau of Labor Statistics (Current Population Survey):

• 48.8 percent of youth between the ages of 16-24 were employed in July, the month when youth employment usually peaks. This is significantly lower than the 59.2 percent of youth who were employed five years ago and 63.3 percent of youth who were employed 10 years ago.

• Minority youth had an especially difficult time finding employment this past summer. Only 34.6 percent of African American youth and 42.9 percent of Hispanic youth had a job this past July.

In  addition to the organizations making commitments for the summer of 2012, the Department of Labor will honor UPS, We Are Golf, Wells Fargo, and Jamba Juice for their strong participation in their 2011 summer jobs effort and the Corporation for National and Community Service will honor Bank of America, State Street, Viacom, Deloitte, and JP Morgan for their leadership in corporate mentoring over the past year.

The Director of Diversity Programs, Martee Saldaña-Pierson, will be speaking tomorrow at the Marketing to Latinos: Banking and Finance Conference. All can see her LIVE tomorrow just press the image located above. The Conference will begin Thursday, 1st of December at 8: 30 AM.

La Directora de Programas de Diversidad, Martee Saldaña-Pierson, estará hablando mañana en la conferencia de Mercadotecnia para Latinos: Bancos y Finanzas. Todos los pueden ver en VIVO mañana solo presionen el imagen localizado arriba. La conferencia empezará Jueves 1º de Diciembre a las 8:30 AM.

This latest report builds on previous studies by the CRL in the area of ethnicity and foreclosure. In 2006, they published, “Losing Ground: Foreclosures in the Subprime Market and Their Cost to Homeowners,” which predicted the sub-prime housing crisis before it hit, outlining the potentially disproportionate impact it would have on African American and Latino homeowners given the fact that a higher than average number of subprime loans are made in these communities. In 2010, the CRL further zeroed in on the subject with the report, “Foreclosures by Race and Ethnicity: the Demographics of Crisis.” It estimated that “17% of Latino homeowners, 11% of African-American homeowners, and 7% of non-Hispanic white homeowners already have lost or are at imminent risk of losing their home.”

The newest report follows up on the previous research and addresses three primary issues:

“First, we consider who has lost their home to foreclosure, and who is still at risk. We look at both the race/ethnicity and income of borrowers, and explore how the impact of foreclosures on different socioeconomic and demographic groups varies depending on where they live. Second, we look at what kind of mortgages different borrowers received to better understand the relationship between loan characteristics and defaults. Finally, we examine where the crisis has had the greatest impact, assessing which areas and types of neighborhoods have been most affected.”

Among the most notable findings in the paper is the contention that the foreclosure crisis is not even halfway over. “Among homeowners who received loans between 2004 and 2008, 2.7 million households, or 6.4 percent, had already lost their homes to foreclosure as of February 2011,” the study notes. “Strikingly, an additional 8.3 percent—3.6 million households—were still at immediate, serious risk of losing their homes.”

The study also unsurprisingly argues that certain types of loans are more likely to be delinquent or in foreclosure—including those originated by brokers, hybrid adjustable rate mortgage loans (ARMs), option ARMs, loans with pre-payment penalties and high interest rate loans. (Earlier this month we wrote about a spike in foreclosure filings which is arguably the result of option ARM loans resetting, which for some borrowers means as much as a 300% jump in their monthly mortgage bill.)

Finally, the study found that nearly 25 percent of all Latino and African America borrowers have either had their homes foreclosed upon or are “seriously delinquent.” That’s compared to just under 12 percent of white borrowers.

The study goes on to suggest that the racial divide persists even when income is factored in—meaning that a poor African American or Latino homeowner is more likely to be in or at risk of foreclosure than an equally poor white person. The study also ties the promulgation of risky loan types to these communities, further supporting the contention that the communities were in fact targeted with riskier loan products. (In August, we wrote about one mortgage broker that was fined $125 million by the Massachusetts Attorney General for such practices.)

Source: Credit.com, 11/17/2011, by Michael Schreiber

While some would debate the value of a college degree these days, there’s no doubt that in the long run a degree is worth the investment. Among immigrant-origin youth — children who are either immigrants themselves or the US-born offspring of immigrants — the importance of having higher education is understood, though not always achievable.

According to a new study published today by the Migration Policy Institute titled UP FOR GRABS:The Gains and Prospects of First- and Second-Generation Young Adults, immigrant-origin youth, ages 16-26, comprise one in four people in the nation.

All 11.3 million of them will be the nation’s workforce in the coming years but findings of the report paint a dismal picture of just how prepared tomorrow’s workforce will be considering that there are 3.2 million second-generation Latinos within this group who still lag behind their peers in walking across that stage.

According to the report:

While Hispanic second-generation women are enrolling in college at the same rate as third-generation non-Hispanic white women, with 46 percent enrollment, they trail their white counterparts by 18 percentage points when it comes to completing an associate’s degree or higher by the age of 26 (33 percent compared to 51 percent).

Without even looking at the report, one can guess why these young women aren’t finishing school by the age of 26 as their white peers seem to be doing — family/children responsibility, jobs, school affordability.

Taken all together, these reasons have always been enough to make any student appear to be a “professional student” and prolong the quest for that degree.

Some can stay on track and graduate but for too many “life” just gets in the way.

Because Latina students don’t finish, their job opportunities aren’t as good, as not only their white peers, but even other immigrant-origin youth.

Despite the gains for Hispanic immigrant-origin young adults (first-generation immigrants and the second-generation U.S.-born children of immigrants), their non-Hispanic counterparts have better education and labor market outcomes by and large – driven in part by the strong performance of first- and second-generation Asian youth. More than 53 percent of non-Hispanic immigrant-origin young adults had at least an associate’s degree by age 26, compared to 45 percent of third-generation whites.

The study underscores the fact that while Latino immigrant-origin youth have the ganas to go to school, unlike other demographic groups, Latino youth are more willing to put their education on the backburner when it comes to fulfilling family and economic responsibilities.

Authors of the report recommend:

…these prospective students will need flexible scheduling and financial aid. Their chances to succeed educationally given competing work and family-related pressures will be greatly improved if they are offered fast-track remedial courses, counseling, and mentorship programs on college campuses.

Findings reinforce the need for accessible pathways that allow students to make the transition among adult basic education, non-credit occupation training, and for-credit postsecondary certificate and degree programs without losing credentials. States can help this transition by determining which courses and programs are fully transferable from two-year institutions to four-year institutions.

And perhaps the most important recommendation:

The educational and economic future of a large number of first-generation youth depends on legislative immigration reform. The fact that a large share of first-generation youth is unauthorized suggests that access to many postsecondary education institutions and to good jobs will require immigration reform, such as enactment of legislation like the DREAM Act or more comprehensive measures.

Source: Latina Lista, November 15, 2011, by Marisa Treviño

According to the authors of the report, Latinos account for more than $5 billion in direct and indirect local taxes annually. This contribution is offset by $3.9 billion in costs for public services such as education, health care, and public safety, resulting in a net gain to public coffers of nearly $1.2 billion after rounding.

While Chicago’s overall population declined in the past decade, its Latino population has continued to grow. Latinos now comprise 22 percent of the metropolitan Chicago population and a proportional 20 percent of its workforce, with the latter number estimated to climb to 25 percent by 2015, according to researchers.

The report was published by the University of Notre Dame’s Institute for Latino Studies, a research institute dedicated to “fostering understanding of the U.S. Latino experience.” The findings were presented at a public forum hosted by the Federal Reserve Bank of Chicago on Wednesday morning.

“This report sets the record straight,” said Eduardo Arnal-Palomera, Consul General of Mexico in Chicago, who spoke on a panel at the forum.

A stated goal of both the report and the panel speakers on Wednesday was to counteract common misconceptions about Latinos: specifically, that as a result of illegal immigration, their population drains public resources, does not pay taxes, and redirects the majority of its earnings back to their countries of origin.

In contrast to this portrayal, the report finds that Chicago-area Latinos as a whole — including undocumented residents — effect a positive influence on public finances and the economy as a whole.

In addition to increased tax revenue, the findings show that Latinos’ growing presence in the workforce has provided the Chicago area with an economic stimulus. Latinos earned $26.2 billion in 2009; after taking out taxes, savings, and money sent back to family in other countries, the population pumped $12.3 billion back into the local economy. Juan Carlos Guzmán, lead author of the report, speculated that after accounting for multiplier effects such as indirect spending stimulated by Latino consumption, the total impact on the Chicago region was closer to $23 billion.

William Testa, a researcher at the Chicago Federal Reserve who served on the panel, also noted the high rate of home ownership for Latinos. He asserted that this finding undermined the popular perception of Latino immigrants as transient group unwilling to embrace life in America. “This is a population that is putting down roots and integrating into the local community,” said Testa.

The report culled data primarily from the U.S. Census Bureau’s American Community Survey, which is published annually. The conclusions refer to Latinos in the Chicago Metropolitan Area, a population of over 1.8 million that spans the city and suburbs in seven counties. Speaking before the forum, lead author Guzmán also observed a “suburbanization of Latinos” in the Chicago region: 57 percent of the area’s Latino population now lives in the suburbs, a trend that has increased in the past decade. Relative contributions and costs are fairly consistent between suburban Latinos and those living in Chicago proper.

Despite their contributions to public and private finances, Chicago-area Latinos face significant challenges. The recession disproportionately affected the Latino workforce: unemployment spiked from 7.2 percent in 2008 to over 12 percent in 2009. And while their labor force participation rate of 73.6 percent remains the highest among all racial and ethnic groups, Latino households still earn only 64 percent of whites’ median household income.

Education is also a particularly important issue for Chicago Latinos; every panelist on Wednesday identified it as the population’s number one priority. The majority of public costs incurred by Latinos — $1.9 billion annually — go toward public elementary and secondary schooling. Over 40 percent of the city of Chicago’s public school enrollment comes from Latinos. Yet despite this investment, the population continues to have the lowest educational attainment levels of any racial or ethnic group. Just over 65 percent of Latino students in Chicago graduate high school; and nearly 45 percent of the Latino population over 25 does not have a high school diploma.

Though the panelists largely avoided making any policy recommendations based on the report, all of them noted the need for the United States to address challenges surrounding its growing immigrant population, of which over 50 percent are from Latin America. “The report is useful at a time when once again the immigration issue is being used as a scapegoat” for the nation’s economic troubles, said Arnal-Palomera. And Allert Brown-Gort, head of the Institute for Latino Studies, said that the findings underscored “the urgent need” for Americans “to come to some sort of understanding about how we’re going to [deal with] immigration in this country.”

When the panel took questions from the audience, many of those who spoke were from Chicago research institutions and community groups. A representative in the audience from Congressman Mike Quigley’s office urged Latino community leaders to meet with the local government representatives to ensure that their voice was heard. And one of the panelists — Ngoan Le, VP of programs for the Chicago Community Trust, which funded the research — argued that civic engagement must be a priority for the Chicago Latino community. An active population would be able to impact local policy that affects Latinos, such as funding for public schools, she said.

Toward the forum’s close, Brown-Gort summarized the consensus: “The real point of this report is that we all have to get involved.”

Source: Progress Illinois, November 17, 2011, By David Milton Brent

Liberty Tax Service has created a one-of-a-kind foundation and educational initiative — Una Familia sin Fronteras (A Family without Boundaries). They are the first private company to have been accepted as a partner with the White House Initiative on Education Excellence for Hispanics. They are very proud to be working hand-in-hand with the White House team. Liberty’s Una Familia sin Fronteras Initiative is currently working with 26 School Districts nationwide, IME, Mexican Consulates and Plazas Comunitarias across the nation.

Liberty Tax at 511 Wolcott Street in Waterbury opened this past tax season and is currently the only local office to be certified through the education initiative. They are proud to have Maria Yepez and Evelyn Torres as employees and Certified Tax Preparers to service our Latino customers. They are actively working to create local partnerships and alliances to offer free education to the Waterbury community, and they are adding to our office staff.

Since its inception, Liberty Tax Service has received extensive recognition for its successful growth and community involvement. Liberty Tax Service firmly believes that education provides options! Our certified offices recruit employees from the local community, providing them with the FREE courses they have available so that they can, in turn, reach out to the local Hispanic community “con corazón” (with heart) and provide them with the “hands-on” assistance to help them better their lives.

They strive to make a difference in Hispanic communities nationwide by providing tax counseling and fulfillment assistance, eliminating confusion and misinformation about various issues surrounding taxes for the undocumented immigrant, i.e. ITINs (Individual Taxpayer Identification Numbers), dependent qualifications, allowable tax credits, etc. They even provide ITIN application services for FREE at all of our Hispanic Services Seal of Excellence stores – the only tax company providing this service at no charge!

They also provide accurate information and education on vital topics that help our new and “recent” immigrants, easily and comfortably, enter our mainstream economy by providing them with FREE education relative to not only the U. S. tax system, but also classes on fiscal and financial literacy.

The staff at 511 Wolcott Street includes Hispanic Tax Preparers who have received extensive training through our Tax Course, Hispanic Service Excellence and Culture Webcast Series, and Spanish-Language Interpreter Course. These courses have all been awarded college credits by the University of Phoenix, making Liberty the first and only tax Company that can offer college credits for ALL of its training courses. As a result of its efforts, Liberty Tax Service has been selected as the only Tax firm to be recognized as the Best Franchise Opportunity by Hispanic Enterprise and Black Enterprise Magazines.

Christine Damato owns the franchise store at 511 Wolcott Street and is actively hiring and planning to open new locations throughout Waterbury. If you have great customer service skills, and the desire to learn and be part of our growing team, please contact by e-mailing cdamato@libertytax.com or call (203) 527 -7585.

They are giving each customer $50 cash on the spot when you file your tax return at 511 Wolcott Street from January 8, 2012 – February 18, 2012 so file early!

About Liberty Tax Service

Liberty Tax Service is the fastest-growing retail tax preparation company in the industry’s history. Founded in 1997 by CEO John T. Hewitt, a pioneer in the tax industry, they have prepared over 8,000,000 individual income tax returns. They provide computerized income tax preparation, electronic filing, and refund anticipation loans (see store for details). Each office offers customers audit assistance, a money back guarantee, and free tax return checking.

Source: Waterbury Republican American, 11/17/2011

This progress is due to two primary factors: 1) the strong work ethic, willingness to play by the rules, entrepreneurial instincts, and mental toughness of minorities when times get tough (like today!) and 2) the significant marketing efforts implemented by franchisors to attract and support minorities within their systems. Franchisors clearly realize that their brands are not properly represented in underserved communities and are making significant efforts to close that financial gap.

The National Minority Franchising Initiative received over 450 responses to this year’s survey. The questionnaire asked franchisors to list the minority (African-American, Asian-American, Hispanic, South Indian, etc.) participation among their existing franchised and company-owned units, as well as the minority representation among senior management which is defined as management with an annual salary in excess of $60,000. The companies that scored the highest are listed below. These ten franchisors have clearly been exceptionally successful in their efforts to recruit minorities.

Each company has in excess of 1,000 operating units. In each case, over 33% of their franchisees are minorities. Most also have a significant number of minorities within their management ranks. Given the relatively low cost of entry, one might expect greater participation within the maintenance industry. The last four companies, however, are in the food-service and service industries, which generally have a very high cost of entry.

The adjacent list of 50 Top Franchises for Minorities is an excellent starting point in your search for an optimal franchise that meets your needs. The percentage of minority franchisees is not an overarching factor in selecting a franchise. To the extent that you are a minority, however, there is no question that these companies are clearly doing something right and that they actively support your inclusion within their systems.

The National Minority Franchising Initiative as various resources including books, FDDs, etc. that could be of use to you if you are considering pursuing a franchise. For access to these and for more detailed information on franchises actively seeking minority franchisees, please visit www.MinorityFranchising.com.

The U.S. Census Bureau announced today that in 2010, median household income declined, the poverty rate increased and the percentage without health insurance coverage was not statistically different from the previous year.

Real median household income in the United States in 2010 was $49,445, a 2.3 percent decline from the 2009 median.

The nation’s official poverty rate in 2010 was 15.1 percent, up from 14.3 percent in 2009 ─ the third consecutive annual increase in the poverty rate. There were 46.2 million people in poverty in 2010, up from 43.6 million in 2009 ─ the fourth consecutive annual increase and the largest number in the 52 years for which poverty estimates have been published.

The number of people without health insurance coverage rose from 49.0 million in 2009 to 49.9 million in 2010, while the percentage without coverage −16.3 percent – was not statistically different from the rate in 2009.

This information covers the first full calendar year after the December 2007-June 2009 recession. See section on the historical impact of recessions.

These findings are contained in the report Income, Poverty, and Health Insurance Coverage in the United States: 2010. The following results for the nation were compiled from information collected in the 2011 Current Population Survey (CPS) Annual Social and Economic Supplement (ASEC):

Income

Since 2007, the year before the most recent recession, real median household income has declined 6.4 percent and is 7.1 percent below the median household income peak that occurred prior to the 2001 recession in 1999. The percentages are not statistically different from each another.

Race and Hispanic Origin (Race data refer to people reporting a single race only. Hispanics can be of any race.)

Among race groups, real median income declined for white and black households between 2009 and 2010, while changes for Asian and Hispanic-origin households were not statistically different. Real median income for each race and Hispanic-origin group has not yet recovered to the pre-2001 recession all-time highs. (See Table A.)

Regions

Households in the Midwest, South and West experienced declines in real median income between 2009 and 2010. The apparent change in median household income for the Northeast was not statistically significant. (See Table A.)

Nativity

Median income for households maintained by native-born householders declined between 2009 and 2010 in real terms. The change in the median income of all foreign-born households was not statistically significant. (See Table A.)

Earnings

In 2010, the earnings of women who worked full time, year-round were 77 percent of that for men working full time, year-round, not statistically different from the 2009 ratio. The 2010 real median earnings of these men and women were not different from the 2009 earnings.

Since 2007, the number of men working full time, year-round with earnings decreased by 6.6 million and the number of corresponding women declined by 2.8 million.

Income Inequality

Based on the Gini Index, the change in income inequality between 2009 and 2010 was not statistically significant, while the changes in shares of aggregate household income by quintiles showed a slight shift to more inequality. The Gini index was 0.469 in 2010.

(The Gini index is a measure of household income inequality; zero represents perfect income equality and 1 perfect inequality.)

Poverty

The poverty rate in 2010 was the highest since 1993 but was 7.3 percentage points lower than the poverty rate in 1959, the first year for which poverty estimates are available. Since 2007, the poverty rate has increased by 2.6 percentage points.

In 2010, the family poverty rate and the number of families in poverty were 11.7 percent and 9.2 million, respectively, up from 11.1 percent and 8.8 million in 2009.

The poverty rate and the number in poverty increased for both married-couple families (6.2 percent and 3.6 million in 2010 from 5.8 percent and 3.4 million in 2009) and female-householder-with-no-husband-present families (31.6 percent and 4.7 million in 2010 from 29.9 percent and 4.4 million in 2009). For families with a male householder no wife present, the poverty rate and the number in poverty were not statistically different from 2009 (15.8 percent and 880,000 in 2010).

Thresholds

As defined by the Office of Management and Budget and updated for inflation using the Consumer Price Index, the weighted average poverty threshold for a family of four in 2010 was $22,314.
(See < http://www.census.gov/hhes/www/poverty/data/threshld/index.html> for the complete set of dollar value thresholds that vary by family size and composition.)

Race and Hispanic Origin (Race data refer to people reporting a single race only. Hispanics can be of any race.)

The poverty rate for non-Hispanic whites was lower in 2010 than it was for other racial groups. Table B details 2010 poverty rates and numbers in poverty, as well as changes since 2009 in these measures, for race groups and Hispanics.

Doubled-Up Households

Doubled-up households are defined as households that include at least one “additional” adult: a person 18 or older who is not enrolled in school and is not the householder, spouse or cohabiting partner of the householder. In spring 2007, prior to the recession, doubled-up households totaled 19.7 million. By spring 2011, the number of doubled-up households had increased by 2.0 million to 21.8 million and the percent rose by 1.3 percentage points from 17.0 percent to 18.3 percent.

In spring 2011, 5.9 million young adults age 25-34 (14.2 percent) resided in their parents’ household, compared with 4.7 million (11.8 percent) before the recession, an increase of 2.4 percentage points.

It is difficult to precisely assess the impact of doubling up on overall poverty rates. Young adults age 25-34, living with their parents, had an official poverty rate of 8.4 percent, but if their poverty status were determined using their own income, 45.3 percent had an income below the poverty threshold for a single person under age 65.

Age

The poverty rate increased for children younger than 18 (from 20.7 percent in 2009 to 22.0 percent in 2010) and people 18 to 64 (from 12.9 percent in 2009 to 13.7 percent in 2010), while it was not statistically different for people 65 and older (9.0 percent).

Similar to the patterns observed for the poverty rate in 2010, the number of people in poverty increased for children younger than 18 (15.5 million in 2009 to 16.4 million in 2010) and people 18 to 64 (24.7 million in 2009 to 26.3 million in 2010) and was not statistically different for people 65 and older (3.5 million).

Nativity

The 2010 poverty rate for naturalized citizens was not statistically different from 2009, while the poverty rates of native-born and noncitizens increased. Table B details 2010 poverty rates and the numbers in poverty, as well as changes since 2009 in these measures, by nativity.

Regions

The South was the only region to show statistically significant increases in both the poverty rate and the number in poverty — 16.9 percent and 19.1 million in 2010 — up from 15.7 percent and 17.6 million in 2009. In 2010, the poverty rates and the number in poverty for the Northeast, Midwest and the West were not statistically different from 2009. (See Table B.)
Health Insurance Coverage

The number of people with health insurance increased to 256.2 million in 2010 from 255.3 million in 2009. The percentage of people with health insurance was not statistically different from 2009.

Between 2009 and 2010, the percentage of people covered by private health insurance declined from 64.5 percent to 64.0 percent, while the percentage covered by government health insurance increased from 30.6 percent to 31.0 percent. The percentage covered by employment-based health insurance declined from 56.1 percent to 55.3 percent.

The percentage covered by Medicaid (15.9 percent) was not statistically different from 2009.

In 2010, 9.8 percent of children under 18 (7.3 million) were without health insurance. Neither estimate is significantly different from the corresponding 2009 estimate.

The uninsured rate for children in poverty (15.4 percent) was greater than the rate for all children (9.8 percent).

In 2010, the uninsured rates decreased as household income increased from 26.9 percent for those in households with annual incomes less than $25,000 to 8.0 percent in households with incomes of $75,000 or more.

Race and Hispanic Origin (Race data refer to those reporting a single race only. Hispanics can be of any race.)

The uninsured rate and number of uninsured in 2010 were not statistically different from 2009 for non-Hispanic whites and blacks, while increasing for Asians. The number of uninsured Hispanics was not statistically different from 2009, while the uninsured rate decreased to 30.7 percent. (See Table C.)

Nativity

The proportion of the foreign-born population without health insurance in 2010 was about two-and-a-half times that of the native-born population. The 2010 uninsured rate was not statistically different from the 2009 rate for native-born, the foreign-born overall and noncitizens but rose for naturalized citizens. Table C details the 2010 uninsured rate and the number of uninsured, as well as changes since 2009 in these measures, by nativity.

Regions

The Northeast and the Midwest had the lowest uninsured rates in 2010. Between 2009 and 2010, there were no statistical differences in uninsured rates for any of the regions. The number of uninsured increased in the Northeast, while there were no statistically significant changes for the other three regions. (See Table C.)

Historical Impact of Recessions

Since 2010 represents the first full calendar year after the recession that ended in June 2009, one can compare changes in income, poverty and health insurance coverage between 2009 and 2010 with changes during the first year after the end of other recessions:

Median household income declined the first full year following the December 2007 to June 2009 recession, as well as in the first full year following three other recessions (March 2001 to November 2001, January 1980 to July 1980 and December 1969 to November 1970). However, household income increased the first full year following the November 1973 to March 1975 recession, and the changes following the July 1990 to March 1991 and July 1981 to November 1982 recessions were not statistically significant.

The poverty rate and the number of people in poverty increased in the first calendar year following the end of the last three recessions. For the recessions that ended in 1961 and 1975, the poverty rate decreased in the next full calendar year.

After the most recent recession, there was no significant difference in the uninsured rate during the first full year after the recession. However, in the year following the recessions that ended in 1991 and 2001, the uninsured rate increased.

Supplemental Poverty Measure

The Census Bureau’s statistical experts, with assistance from the Bureau of Labor Statistics and in consultation with the Office of Management and Budget, the Economics and Statistics Administration and other appropriate agencies and outside experts, are now developing a Supplemental Poverty Measure. The Supplemental Poverty Measure, for which the Census Bureau expects to publish preliminary estimates in October 2011, will provide an additional measure of economic well-being. It will not replace the official poverty measure and will not be used to determine eligibility for government programs. See Income, Poverty, and Health Insurance Coverage in the United States: 2010 for more information.

The Current Population Survey Annual Social and Economic Supplement is subject to sampling and nonsampling errors. All comparisons made in the report have been tested and found to be statistically significant at the 90 percent confidence level, unless otherwise noted.

For additional information on the source of the data and accuracy of the estimates for the CPS, visit .

Table A. Median Household Income
2009 2010 Percent change in real median income
(in 2010 dollars)

Region
U.S. $50,599 $49,445 *-2.3
Northeast $53,949 $53,283 -1.2
Midwest $49,684 $48,445 *-2.5
South $46,368 $45,492 *-1.9
West $54,722 $53,142 *-2.9

Race and Hispanic Origin of Householder
White $52,717 $51,846 * -1.7
White, not Hispanic $55,360 $54,620 -1.3
Black $33,122 $32,068 *-3.2
Asian $66,550 $64,308 -3.4
Hispanic origin $38,667 $37,759 -2.3

Nativity of Householder
Native-born $51,337 $50,288 *-2.0
Foreign-born $44,648 $43,750 -2.0
Naturalized citizen $52,833 $52,642 -0.4
Not a citizen $36,685 $36,401 -0.8

*Change statistically significant at the 90 percent confidence level.

Table B. People in Poverty
(Numbers in thousands)
2009 2010 Change in poverty
Number Percent Number Percent Number Percent

Region
U.S. 43,569 14.3 46,180 15.1 *2,611 *0.8
Northeast 6,650 12.2 6,987 12.8 336 0.6
Midwest 8,768 13.3 9,148 13.9 380 0.6
South 17,609 15.7 19,072 16.9 *1,463 *1.2
West 10,542 14.8 10,973 15.3 431 0.5

Race and Hispanic Origin
White 29,830 12.3 31,650 13.0 *1,819 *0.7
White, not Hispanic 18,530 9.4 19,599 9.9 *1,070 *0.5
Black 9,944 25.8 10,675 27.4 *732 *1.6
Asian 1,746 12.5 1,729 12.1 -17 -0.4
Hispanic origin 12,350 25.3 13,243 26.6 *893 *1.3

Nativity
Native-born 36,407 13.7 38,568 14.4 *2,161 *0.7
Foreign-born 7,162 19.0 7,611 19.9 *450 0.9
Naturalized citizen 1,736 10.8 1,906 11.3 *169 0.5
Not a citizen 5,425 25.1 5,706 26.7 281 *1.5

*Statistically different from zero at the 90 percent confidence level.

Table C. People Without Health Insurance Coverage
(Numbers in thousands)
2009 2010 Change
Number Percent Number Percent Number Percent

Region
U.S. 48,985 16.1 49,904 16.3 *919 0.2
Northeast 6,434 11.8 6,779 12.4 *345 0.6
Midwest 8,368 12.7 8,605 13.0 237 0.4
South 21,576 19.2 21,665 19.1 88 -0.1
West 12,606 17.7 12,855 17.9 249 0.2

Race and Hispanic Origin
White 37,124 15.3 37,385 15.4 261 –
White, not Hispanic 22,715 11.5 23,093 11.7 378 0.2 Black 7,838 20.3 8,132 20.8 294 0.5
Asian 2,317 16.5 2,600 18.1 *284 *1.6
Hispanic origin 15,450 31.6 15,340 30.7 -110 *-0.9

Nativity
Native-born 36,305 13.6 36,881 13.8 576 0.2
Foreign-born 12,680 33.7 13,023 34.1 343 0.4
Naturalized citizen 2,951 18.4 3,356 20.0 *405 *1.6
Not a citizen 9,729 45.1 9,667 45.1 -62 –

*Change statistically significant from zero at the 90 percent confidence level.

–Represents or rounds to zero.

WASHINGTON – The Department of Commerce’s Economics and Statistics Administration (ESA) and National Telecommunications and Information Administration (NTIA) today released a report, “Exploring the Digital Nation,” that analyzes broadband Internet adoption in the United States. Overall, approximately seven out of 10 households in the United States subscribe to broadband service. The report finds a strong correlation between broadband adoption and socio-economic factors, such as income and education, but says these differences do not explain the entire broadband adoption gap that exists along racial, ethnic and geographic lines. Even after accounting for socio-economic differences, certain minority and rural households still lag in broadband adoption.

The report analyzes data collected through an Internet use supplement to the Current Population Survey (CPS) of about 54,300 households conducted by the U.S. Census Bureau in October 2010. Earlier this year, NTIA released initial findings from the survey, showing that while virtually all demographic groups have increased adoption of broadband Internet at home since the prior year, historic disparities among demographic groups remain. Today’s report presents broadband adoption statistics after adjusting for various socio-economic differences.

“Closing the broadband adoption gap is a priority because Americans increasingly need 21st century skills to succeed in today’s economy. Today’s report provides a comprehensive, data-driven analysis of broadband adoption that will inform efforts to close the gap and promote America’s competiveness in the global economy,” said Acting Deputy Commerce Secretary Rebecca Blank.

“To get a good job, you often need access to the Internet and online skills. But nearly one in three American households do not subscribe to broadband service,” said NTIA Administrator Lawrence E. Strickling. “NTIA’s broadband grants program is helping to address this challenge by expanding public computer centers and providing Americans with the training needed to participate in the Internet economy. The lessons learned from these broadband projects and today’s report will help the larger community working to close the digital divide, and we encourage researchers to use the survey data for further analysis.”

The principal findings of the report are:

Overall

–Sixty-eight percent of American households used broadband Internet in 2010, up from 64 percent in 2009. Only 3 percent of households relied on dial-up access to the Internet in 2010, down from 5 percent in 2009. Another 9 percent of households had people who accessed the Internet only outside of the home.

–All told, approximately 80 percent of American households had at least one Internet user, whether inside or outside the home and regardless of technology type used to access the Internet.

–Cable modems and DSL were the leading broadband technologies for home Internet adoption, with 32 percent and 23 percent of households, respectively, using these services.

Differences in Household Broadband Adoption

–Households with lower incomes and less education, as well as blacks, Hispanics, people with disabilities and rural residents, were less likely to have Internet service at home.

–Eighty-one percent of Asian households and 72 percent of white households had broadband at home, compared with 57 percent of Hispanic households and 55 percent of black households.

–Seventy percent of urban households had broadband at home, compared with 57 percent of rural households.

–Households with school-age children were more likely to have broadband at home (78 percent) than the national rate. Older householders, particularly those ages 65 and older (45 percent), were less likely to have broadband at home.

–Less than half (43 percent) of households with annual incomes below $25,000 had broadband access at home, while 93 percent of households with incomes exceeding $100,000 had broadband.

–Average broadband adoption in 2010 varied by state from about half (52 percent) of all households to 80 percent.

Role of Socio-Economic Factors

–Socio-economic differences do not explain the entire broadband adoption gap. For example, after accounting for socio-economic and geographic factors, black and Hispanic households still lag white households in broadband adoption by 11 percentage points, though the gap between Asian and white households disappears.

–After accounting for socio-economic and demographic factors, rural households still lag urban households in broadband adoption by 5 percentage points.

–In contrast, differences in socio-economic characteristics do explain a substantial portion but not all of the broadband adoption lag among people with disabilities.

Reasons for Not Subscribing to Broadband at Home

–The main reasons cited for not having Internet access at home were a lack of interest or need (47 percent), the expense (24 percent), and the lack of an adequate computer (15 percent).

–Not surprisingly, individuals without broadband service at home relied on locations such as public libraries (20 percent) or other people’s houses (12 percent) to go online.

Long-term Trends in Internet and Computer Use

–Between 2001 and 2010, broadband Internet use at home, regardless of technology type, rose from 9 percent to 68 percent of households.

–Between 1997 and 2010, Internet use among households, regardless of technology type, rose from 19 percent to 71 percent.

–More than three quarters (77 percent) of American households had a computer at home in 2010, up from 62 percent in 2003.

NTIA and the Department of Agriculture’s Rural Utilities Service are administering a nearly $7 billion Recovery Act initiative to expand access to and adoption of broadband services. NTIA is utilizing approximately $4 billion of that funding for the Broadband Technology Opportunities Program (BTOP), which provided grants to approximately 230 projects that are deploying broadband infrastructure, enhancing and expanding public computer centers, and encouraging the sustainable adoption of broadband service. In addition, NTIA’s State Broadband Initiative is supporting a host of state-driven initiatives to better integrate broadband and information technology into state and local economies.

The full report is available at http://www.esa.doc.gov/Reports/exploring-digital-nation-computer-and-internet-use-home.

11/8/11, US Census Bureau

Sept. 15 was chosen as the starting point for the celebration because it is the anniversary of independence of five Latin American countries: Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua. In addition, Mexico and Chile celebrate their independence days on Sept. 16 and Sept. 18, respectively.

Source: Hispanicad.com, 9/5/2011

Liberty Tax Service anunció que hasta el 31 de julio de 2011, más de 400 alianzas han sido establecidas mediante su iniciativa Una Familia sin Fronteras, iniciativa educativa hispana y Fundación con organizaciones privadas, públicas y organizaciones sin fines de lucro. El objetivo principal de estas alianzas es el de desarrollar programas de valor dirigidos a padres Hispanos, para que la asistencia y el interés de estos programas educativos puedan expandirse a estas organizaciones, y para que las cabezas del hogar no familiarizadas con el sistema fiscal y financiero de los EE. UU. puedan aprender sobre los valores del sistema económico en los EE. UU. e integrarse de mejor manera a nuestra economía convencional.

Las organizaciones clave con las que se han establecido alianzas incluyen:

• 23 Distritos escolares alrededor de los EE. UU. incluyendo el Distrito Escolar de Los Ángeles (LAUSD) el más grande en los Estados Unidos, el Distrito Escolar de Kansas City, Missouri (KCMSD), Distrito Escolar Independiente de Houston (HISD), San Antonio (Distritos Escolares Independientes del Norte y del Sur), así como también los Distritos Escolares de Fresno, Madera y La Merced.
• Más de 230 Plazas Comunitarias, centros educativos comunitarios afiliados con el Consulado Mexicano en los EE. UU.
• 50 Consulados Mexicanos localizados a través de los Estados Unidos en ares con una gran población de ciudadanos mexicanos.
• Programas “Head Start” que ofrecen educación para adultos.
• Con la entidad más prestigiosa de México, Universidad Nacional Autónoma de México (UNAM) sirviendo por más de 450 años.
• El Instituto de los Mexicanos en el Exterior (IME), entidad que respalda a los Consulados en los Estados Unidos.
• YWCA que ofrecen programas educativos para adultos.
• Librerías públicas, organizaciones femeninas, iglesias y centros culturales que ofrecen programas de educación y seminarios para adultos.
• Institutos técnicos y Cámaras de Comercio Hispanas que ofrecen seminarios para pequeños negocios.
• Ligas de futbol juveniles que ofrecen programas educativos para padres y familiares.

Los expertos en temas fiscales y financieros locales de la iniciativa educativa única de Liberty Tax, Una Familia sin Fronteras, ofrecen seminarios educativos sobre educación Fiscal y Financiera gratis todo el año. En la mayoría de los casos, las alianzas con Liberty Tax ayudan a las organizaciones a otorgar información a sus miembros mediante presentaciones breves, laboratorios de computación, o mediante una serie de seminarios. Los programas son hechos a la medida para contestar las áreas primarias de interés de los participantes, incluyendo procedimientos a seguir para iniciar un pequeño negocio, información para propietarios de su primera vivienda, así como información sobre ITINs (Identificación de Impuestos para no residentes), el proceso tributario y ayuda financiera para estudiantes en los EE.UU., para denominar unos pocos. Todos los programas son ofrecidos en español, siendo que la mayor parte de las organizaciones con las que se colaboran otorgan servicios principalmente a familias inmigrantes hispanas de primera generación. Sin embargo, seminarios en ingles también están disponibles. ¡Muchos de estos seminarios también califican para créditos universitarios de la Universidad de Phoenix, así que participantes pueden disfrutar del entusiasmo de completar un curso acreditado!

Durante todo el año, los propietarios de las franquicias, al igual que su personal, alrededor de los Estados Unidos han demostrado su compromiso a la iniciativa hispana educacional de Liberty Tax Service Una Familia Sin Fronteras a través de su apoyo entusiasta y el cumplimiento de las iniciativas educativas encabezadas por el Equipo de Programas Hispanos nacional. Todos los profesionales de Liberty Tax Service que proporcionan clases y hacen presentaciones vienen de las oficinas que han recibido el Sello de Excelencia de Servicios Hispanos de Liberty Tax, mediante un riguroso programa de certificación proporcionado por el equipo corporativo de Una Familia Sin Fronteras. Este entrenamiento de certificación asegura que las oficinas y el personal de Liberty estén calificados y capacitados para proporcionar servicios a los consumidores hispanos. Debido a la integridad, el éxito y el valor de la iniciativa educativa Una Familia Sin Fronteras, Liberty Tax Service ha sido adoptado por organizaciones no lucrativas, instituciones educativas y entidades gubernamentales de todo el país, a cuales empresas privadas raramente se les permite asociarse.

“Liberty se ha enfocado en asegurar que ofrecemos servicios especiales que son muy necesarios en nuestras nuevas comunidades inmigrantes”, explica John Hewitt, CEO y Fundador de Liberty Tax Service. “Creemos que la información ofrece opciones y las opciones proporcionan poder. Nuestra iniciativa y Fundación Una Familia Sin Fronteras fueron creadas específicamente para ofrecer estos valores tan necesarios a nuestros vecinos latinos en los EE. UU. ”

Además, las alianzas nacionales han sido establecidas por el equipo de Programas de Diversidad de Liberty Tax Service que proporcionan a las organizaciones mensajes importantes para la comunidad hispana para poder proveer estos mensajes sin costo alguno. Muchas de estas organizaciones ofrecen materiales que son distribuidos por los profesionales de Liberty Tax Service en eventos educativos, así como en las “Fiestas de la Comunidad” semanales celebradas en todas las oficinas durante la temporada de impuestos. Además, algunas de las organizaciones son invitadas a presentarse como invitados en los programas de radio de Liberty Tax Service que son Orientados-a-la-Comunidad y son transmitidos en vivo cada semana en más de 40 ciudades entre enero y abril.

Los programas anteriores han incluido representantes de:

• Mothers Against Drunk Driving (MADD)
• El Departamento de Educación (Ayuda Federal Estudiantil)
• La Cruz Roja Americana
• March of Dimes

También en el 2011, Liberty Tax Service anunció la creación de la Fundación Una Familia Sin Fronteras, la primera Fundación en la industria que está orientada específicamente a contribuir al éxito de los inmigrantes hispanos a través de la educación fiscal y financiera. La Fundación Una Familia Sin Fronteras fue creada para ampliar sus programas de educación fiscal y financiera que se ofrecen actualmente, así como para permitir a otras empresas y profesionales la oportunidad de agregar su experiencia y pericia educativa a la mezcla, de esa manera, ofreciendo a las nuevas comunidades de inmigrantes información que les ayudará a crecer económicamente e integrarse más rápidamente al sistema económico de EE. UU., y en última instancia, lograr su “sueño americano”.

Some groups, such as non-Hispanic white males, Asian males and Asian females, benefit more from higher levels of education than other groups over a 40-year career for those with a professional degree. White males with a professional degree make more than double (about $2.4 million more) than that of Hispanic females with the same level of education.

(Note: Hispanics may be any race. All references in this news release to race groups such as black or white exclude Hispanic members of the race group in question; that is, all are “non-Hispanic.”)

Many factors, such as race and Hispanic origin, gender, citizenship, English-speaking ability and geographic location do influence work-life earnings but none had as much impact as education. The estimated impact on annual earnings between a professional degree and an eighth grade education was about $72,000 a year, roughly five times the impact of gender, which was $13,000.

These findings come from the report Education and Synthetic Work-Life Earnings, which looks at the economic value of educational attainment by estimating the amount of money that people might earn over the course of a 40-year work-life given their level of education. The
report also looks at the effect of other factors, such as race and gender groups and other characteristics with regard to this relationship.

“This analysis shows that there is a clear and well-defined relationship between education and earnings,” said Tiffany Julian, an analyst in the Census Bureau’s Housing and Household Economic Statistics Division. “The overall economic value of educational attainment in this report supports the belief that higher levels of education are well-established paths to better jobs and higher earnings.”

Other highlights:
Overall, white males had higher earnings than any other group at every education level, with the exception of those with a master’s degree, which was topped by Asian males, and those with a professional degree, where Asian males were not significantly different from white males.

In general, women in the most economically advantaged race groups usually earn less than men in the most disadvantaged race groups. For example, a white female with master’s degree is expected to earn $2.4 million over a 40-year work-life. In comparison, a Hispanic male with a master’s degree is expected to earn $2.8 million.

For Asian, black and Hispanic groups whose highest education completed is high school, the difference between each group’s work-life earnings was not large compared with the differences between these groups when they had higher levels of education.

Asian men and women with a bachelor’s degree or higher had greater returns on higher education than blacks or Hispanics of either gender. For example, an Asian female with a professional degree made $3.7 million in work-life earnings compared with $2.3 million for a Hispanic female with a professional degree.

Naturalized citizens saw a small yearly increase in earnings over the native-born population ($1,210), but those who were not citizens made $2,446 less a year than the native-born.

Language spoken at home had an effect on earnings: those who spoke a language at home other than English saw a decrease in annual earnings after considering all other factors. Even those who speak English “very well” saw a decrease of $989 in annual earnings compared with English-only speakers.

Geography impacted earnings, showing higher earnings in the Pacific states and in New England and lowest earnings in East South Central states.

Data for this research comes from the 2006-2008 3-year American Community Survey. All estimates are presented in 2008 dollars and represent the amount of estimated money that one can expect to earn from ages 25 to 64.

*As with all surveys, statistics from sample surveys are subject to sampling and nonsampling error. All comparisons made in the reports have been tested and found to be statistically significant at the 90 percent confidence level, unless otherwise noted. Please consult the data tables for specific margins of error.

The American Community Survey is an ongoing survey of approximately 3 million addresses every year and provides one of the most complete pictures of our population available. While the 2010 Census produced a count of the nation’s population and basic demographics, the American Community Survey provides statistics on more than 40 topics, such as income, educational attainment, housing, family structure and more. All survey responses are strictly confidential and protected by law.

Editor’s note: The report can be accessed at .

Source: US Census Bureau, 9/8/2011

50.5 million
The Hispanic population of the United States as of April 1, 2010, making people of Hispanic origin the nation’s largest ethnic or race minority. Hispanics constituted 16.3 percent of the nation’s total population. In addition, there are 3.7 million residents of Puerto Rico, a U.S. territory.
Source: American FactFinder: United States DP-1 and

43%
Percentage increase in the Hispanic population between April 1, 2000, and April 1, 2010, making Hispanics the fastest-growing minority group.
Source: The Hispanic Population: 2010 and

132.8 million
The projected Hispanic population of the United States on July 1, 2050. According to this projection, Hispanics will constitute 30 percent of the nation’s population by that date.
Source: Population projections

35.3 million
The number of Hispanics counted during the 2000 Census.
Source: The Hispanic Population: 2010

22.4 million
The nation’s Hispanic population during the 1990 Census.
Source: The Hispanic Population: 2000

2nd
Ranking of the size of the U.S. Hispanic population worldwide, as of 2010. Only Mexico (112 million) had a larger Hispanic population than the United States (50.5 million).
Source: International Data Base

63%
The percentage of Hispanic-origin people in the United States who were of Mexican background in 2010. Another 9.2 percent were of Puerto Rican background, 3.5 percent Cuban, 3.3 percent Salvadoran and 2.8 percent Dominican. The remainder was of some other Central American, South American or other Hispanic or Latino origin.
Source: The Hispanic Population: 2010

States and Counties

14 million
The population of the Hispanic-origin population that lived in California in 2010, up from 11 million in 2000.
Source: American FactFinder: California DP-1

16
The number of states with at least a half-million Hispanic residents — Arizona, California, Colorado, Florida, Georgia, Illinois, Massachusetts, Nevada, New Jersey, New Mexico, New York, North Carolina, Pennsylvania, Texas, Virginia and Washington.
Source: American FactFinder: United States DP-1

46.3
The percentage of New Mexico’s population that was Hispanic in 2010, the highest of any state. Hispanics also made up at least one-fifth of the population in California and Texas, at 38 percent each, followed by Arizona (30 percent), Nevada (27 percent), Florida (22 percent) and Colorado (21 percent). New Mexico had 953,403 Hispanics.
Source: American FactFinder: United States DP-1

148%
The percentage increase in the Hispanic population in South Carolina between April 1, 2000, and April 1, 2010, the highest of any state.
Source: The Hispanic Population: 2010 page 6

4.7 million
The Hispanic population of Los Angeles County, Calif., in 2010. This is the highest of any county.
Source: American FactFinder: California DP-1

96
Proportion of the population of Webb County, Texas, that was Hispanic as of 2010. This is the highest proportion of any county.
Source: American FactFinder Texas DP-1

82
Number of the nation’s 3,143 counties that were majority-Hispanic.
Source: The Hispanic Population: 2010 page 11

3 million
The increase in California’s Hispanic population between April 1, 2000, and April 1, 2010.
Source: American FactFinder: California DP-1

25
Number of states in which Hispanics were the largest minority group. These states were Arizona, California, Colorado, Connecticut, Florida, Idaho, Illinois, Iowa, Kansas, Maine, Massachusetts, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, Oklahoma, Oregon, Rhode Island, Texas, Utah, Vermont, Washington and Wyoming.
Source: American FactFinder: United States DP-1

Businesses

Source for statements in this section: Census Bureau News Release: Census Bureau Reports Hispanic-Owned Businesses Increase at More than Double the National Rate

2.3
The number of Hispanic-owned businesses in 2007, up 43.7 percent from 2002.

$345.2 billion
Receipts generated by Hispanic-owned businesses in 2007, up 55.5 percent from 2002.

23.6%
The percentage of businesses in New Mexico in 2007 that were Hispanic-owned, which led all states. Florida (22.4 percent) and Texas (20.7 percent) were runners-up.

30.0%
Percentage of Hispanic-owned businesses in the construction and the other services sectors; 50.8 percent of the receipts of Hispanic-owned businesses were concentrated in wholesale trade, construction and retail trade.

Families and Children

10.4 million
The number of Hispanic family households in the United States in 2010.
Source: Families and Living Arrangements: Table F1

63%
The percentage of Hispanic family households consisting of a married couple.
Source: Families and Living Arrangements: Table F1

39%
The percentage of Hispanic family households consisting of a married couple with children younger than 18 in 2010.
Source: Families and Living Arrangements: Table F1

67%
Percentage of Hispanic children living with two parents.
Source: Families and Living Arrangements: Table C9

44%
Percentage of Hispanic married couples with children under 18 where both spouses were employed in 2010.
Source: Families and Living Arrangements: Table FG-1

Spanish Language

35 million
The number of U.S. residents 5 and older who spoke Spanish at home in 2009. Those who hablan español constituted 12 percent of U.S. residents. More than half of these Spanish speakers spoke English “very well.”
Source: U.S. Census Bureau, 2009 American Community Survey: Table B16001
Note: Figures will be updated late Sept. 2011

17 million
The number of U.S. residents 5 and older who spoke Spanish at home in 1990.
Source: Language Use in the United States: 2007

76%
Percentage of Hispanics 5 and older who spoke Spanish at home in 2009.
Source: U.S. Census Bureau, 2009 American Community Survey: Table B16006

Note: Figures will be updated late Sept. 2011

Income, Poverty and Health Insurance

$38,039
The median income of Hispanic households in 2009.
Source: Income, Poverty, and Health Insurance Coverage in the United States: 2009

Note: Figures will be updated late Sept. 2011

25.3%
The poverty rate among Hispanics in 2009, up from 23.2 percent in 2008.
Source: Income, Poverty, and Health Insurance Coverage in the United States: 2009

Note: Figures will be updated late Sept. 2011

32.4%
The percentage of Hispanics who lacked health insurance in 2009, up from 30.7 percent in 2008.
Source: Income, Poverty, and Health Insurance Coverage in the United States: 2009

Note: Figures will be updated late Sept. 2011

Education

63%
The percentage of Hispanics 25 and older that had at least a high school education in 2010.
Source: Educational Attainment in the United States: 2010 Detailed Tables

14%
The percentage of the Hispanic population 25 and older with a bachelor’s degree or higher in 2010.
Source: Educational Attainment in the United States: 2010

3.9 million
The number of Hispanics 18 and older who had at least a bachelor’s degree in 2010.
Source: Educational Attainment in the United States: 2010

1 million
Number of Hispanics 18 and older with advanced degrees in 2010 (e.g., master’s, professional, doctorate).
Source: Educational Attainment in the United States: 2010

12%
Percentage of college students (both undergraduate and graduate students) in October 2009 who were Hispanic.
Source: School Enrollment – Social and Economic Characteristics of Students: October 2009

20%
Percentage of elementary and high school students that were Hispanic in 2009.
Source: School Enrollment – Social and Economic Characteristics of Students: October 2009

Foreign-Born

47%
Percent of the foreign-born population that was Hispanic in 2009.
Source: U.S. Census Bureau, 2009 American Community Survey
Note: Figures will be updated late Sept. 2011

Names

4
The number of Hispanic surnames ranked among the 15 most common in 2000. It was the first time that a Hispanic surname reached the top 15 during a census. Garcia was the most frequent Hispanic surname, occurring 858,289 times and placing eighth on the list — up from 18th in 1990. Rodriguez (ninth), Martinez (11th) and Hernandez (15th) were the next most common Hispanic surnames.
Source: Census 2000 Genealogy

Jobs

68%
Percentage of Hispanics or Latinos 16 and older who were in the civilian labor force in 2009.
Source: 2011 Statistical Abstract

19%
The percentage of civilian employed Hispanics or Latinos 16 and older who worked in management, professional and related occupations in 2009.
Source: U.S. Census Bureau, 2008 American Community Survey: Table B24010I
Note: Figures will be updated late Sept. 2011

Voting

9.7 million
The number of Hispanic citizens who reported voting in the 2008 presidential election, about 2 million more than voted in 2004. The percentage of Hispanic citizens voting went from 47 percent in 2004 to 50 percent in 2008.
Source: Voting and Registration in the Election of 2008

Serving our Country

1.1 million
The number of Hispanics or Latinos 18 and older who are veterans of the U.S. armed forces.
Source: U.S. Census Bureau, 2009 American Community Survey: Table B21001I
Note: Figures will be updated late Sept. 2011

Source: US Census 2011, posted 9/4/2011 in Hispanicad.com

The data from Washington, D.C.-based Excelencia in Education found 293 nonprofit higher education institutions in 2010 with 25 percent or more total undergraduate Hispanic enrollment, qualifying them as HSIs. Another 204 higher education institutions are “emerging HSIs,” with undergraduate Hispanic enrollment that soon may reach the 25 percent threshold.

“We know how close we are to attaining even greater numbers of HSIs,” Deborah Santiago, Excelencia in Education’s vice president of policy and research, told Diverse. Colleges with 25 percent enrollment are eligible for federal funding specifically dedicated to HSIs.

The analysis also highlights the changing landscape of HSIs, as states not normally associated with large Hispanic populations are entering the ranks of HSIs and “emerging” institutions. While Texas and California have the most Hispanic-serving institutions, the list of current HSIs includes 13 in Illinois, four in Kansas and three in Washington State.

“There is increased growth in states where you don’t expect to see HSIs,” Santiago said. “This is a pleasant surprise.”

This trend is likely to continue based on the list of “emerging” HSIs, or those with Hispanic enrollments of 15 percent to 24 percent. Massachusetts has nine emerging HSIs, while Connecticut and Colorado have five and four such institutions, respectively. Oklahoma, Oregon, Pennsylvania, Tennessee and Louisiana are among those states with at least one emerging HSI.

Lower-cost two-year colleges account for many of the institutions on both lists. Among current HSIs, 47 percent are community colleges while only 28 percent are private, nonprofit four-year colleges.

Santiago told Diverse the data indicate a need to focus on Latino graduation at two-year institutions. “The two-year sector needs to get a better sense of what’s working for Latino students. We need to do a better job of graduating these students from two-year institutions and moving them on to four-year colleges and universities.”

Here are other findings from the study:

- While current HSIs account for less than 10 percent of all colleges nationwide, they enroll more than half — or 54 percent — of Latinos in higher education.

- Among current HSIs, 112, or nearly 40 percent, offer graduate degrees.

- Despite nationwide growth, almost 75 percent of HSIs are concentrated in Puerto Rico and three states — California, Texas and New Mexico.

- New York, New Jersey and Florida account for 53 of the “emerging” Hispanic-serving institutions, or more than 25 percent of the list.

For more information on the study, visit the organization’s website at www.EdExcelencia.org.

Source: Diverse Issues in Higher Education, by Charles Dervarics , September 2, 2011

“It is our goal to continue to offer an affordable chance at the American dream of business ownership to all enterprising persons who are ready to embrace our proven Liberty operating system, and be aggressive competitors in this industry,” said Liberty Tax Service CEO and Founder John Hewitt.

In 2004, Liberty Tax Service launched a Hispanic Services Division to provide better communications, understanding, and customer service to its existing and emerging Hispanic communities across the United States. Franchise owners are trained to cover issues that specifically pertain to Hispanic taxpayers, and take responsibility for going the extra mile to assist clients with navigating through the steps of the Federal tax filing system and ITIN preparation. To foster education as a key component to the growth and economic strength of Latino communities in the United States, the Hispanic Services Division created the Una Familia Sin Fronteras educational initiative and Foundation. An alliance with the White House Initiative Team has been instrumental in bringing vital education resources to the Hispanic communities served by Liberty Tax Service.

“As a Latina, I am very impressed with Liberty’s sincere commitment to provide Hispanics with business growth opportunities,” says Martee Pierson, Director of Diversity Programs for Liberty Tax Service and Executive Director of the company’s Una Familia Sin Fronteras Foundation that provides fiscal and financial education to Hispanics across the nation. “Through our unique, multi-level corporate Hispanic educational initiative — Una Familia Sin Fronteras (A Family Without Boundaries), in tandem with the efforts of our Foundation by the same name, Liberty has successfully reached hundreds of thousands of Latinos across the U.S. with vital fiscal and financial information that will help them thrive instead of just survive in the U.S. Liberty was the first corporation to create this type of consistent national educational outreach program to our Hispanics and the only company to create a Foundation to directly support its efforts. It’s quite obvious that we take our commitment to the advancement and growth of our emerging-majority, Hispanic population as a great deal more than just lip service,” she explains.

“Es nuestra meta continuar ofreciendo una oportunidad asequible para todas las personas emprendedoras que tienen el sueño Americano de ser propietarios de un negocio y que están listos para adoptar el sistema operativo comprobado de Liberty y ser competidores agresivos en la industria,” dijo John Hewitt, CEO y fundador de Liberty Tax Service.

En el 2004, Liberty Tax Service creó una División de Servicios Hispanos para brindar mejor comunicación, entendimiento y servicio a clientes existentes y comunidades emergentes Hispanas alrededor de los Estados Unidos. Los franquiciados son entrenados para tratar temas que específicamente conciernen a los contribuyentes Hispanos, y para tomar la responsabilidad de proveer mayor asistencia a los clientes que navegan por los pasos del sistema Federal tributario y la preparación del ITIN. Para promover la educación como una parte clave del crecimiento y esfuerzo económico de las comunidades Latinas en Estados Unidos, la División de Servicios Hispanos creó la iniciativa y Fundación Una Familia Sin Fronteras. Una alianza con el Equipo de la Iniciativa de la Casa Blanca ha sido instrumental en proporcionar recursos educativos importantes a las comunidades Hispanas que reciben servicios mediante Liberty Tax Service.

“Como Latina, estoy muy impresionada con el compromiso sincero de Liberty al otorgar a Hispanos oportunidades de crecimiento empresarial ,” dijo Martee Pierson, Directora de Programas de Diversidad para Liberty Tax Service y Directora Ejecutiva de la Fundación Una Familia Sin Fronteras de la compañía que ofrece educación fiscal y financiera a Hispanos alrededor del país. “A través de Una Familia Sin Fronteras — nuestra iniciativa corporativa Hispana, educativa, de multi-nivel, y conjuntamente con los esfuerzos de nuestra Fundación que lleva el mismo nombre, Liberty ha logrado trabajar exitosamente con miles de Latinos a través de los EE. UU. brindándoles importante información fiscal y financiera que les ayuda a prosperar en vez de simplemente sobrevivir en los Estados Unidos. Liberty fue la primera corporación en crear este tipo de programa a nivel nacional que constantemente ofrece programas educativos a nuestros Hispanos y es la única compañía que creó una Fundación que directamente apoya sus esfuerzos. Es muy obvio que tomamos nuestro compromiso para fomentar el progreso y desarrollo de la mayoría-emergente, la población Hispana, con mucho más que palabras,” explica ella.

Liberty Tax Service announced that as of July 31, 2011, over 400 alliances have been established through their Una Familia Sin Fronteras (A Family Without Boundaries) Hispanic educational initiative and Foundation with private, public and non-profit organizations. The primary goal of these alliances is to develop programs of value to a broad Hispanic parent base, so that the attendance and interest in educational programs can expand for the organizations, and so that heads of households unfamiliar with the US fiscal and financial systems can learn the values of the economic system in the U.S. and better enter into our mainstream economy.

Key organizations with which alliances have been established include:

• 23 school districts throughout the United States, including the Los Angeles Unified School District (LAUSD), the largest in the US, the Kansas City, Missouri School District (KCMSD), Houston Independent School District (HISD), San Antonio (Northside and Southside Independent School Districts), as well as the School Districts of Fresno, Madera and Merced City.
• Over 230 “Plazas Comunitarias”, community learning centers affiliated with the Mexican Consulate in the US
• 50 Mexican Consulates located throughout the United States in areas with a large population of Mexican citizens
• Head Start programs offering adult education
• Mexico’s most prestigious, international National Autonomous University (UNAM) in existence for over 450 years
• Institute for Mexicans Abroad (IME), the government ministry that oversees all Consulates in the United States
• YWCAs offering adult education programs
• Public libraries, women’s organizations, churches, and cultural centers offering adult education programs and seminars
• Technical colleges and Hispanic Chambers of Commerce offering small business seminars
• Youth soccer leagues that offer educational programs to parents and families

Local fiscal and financial experts from Liberty Tax Service’s unique educational outreach initiative, Una Familia Sin Fronteras, offer financial and fiscal education seminars free of charge throughout the year. In most cases, the alliances with Liberty Tax help organizations provide reliable information to their constituents in the form of brief presentations, computer labs, or seminar series. Programs are tailored to answer the participants’ primary areas of interest, including small business start-up procedures and first-time homeowner information, as well as information about ITINs (Tax IDs for non-residents), the income tax process, and financial aid offerings for students in the US, to name a few. All programs are offered in Spanish, since most of the alliance organizations serve primarily 1st-generation Hispanic immigrant families. However, English languages classes are also available. Many of these seminars also qualify for college credits with the University of Phoenix, so participants can enjoy the excitement of completing a college accredited course!

Franchise owners and their staff across the United States demonstrate their commitment throughout the year to Liberty’s Una Familia Sin Fronteras Hispanic educational initiative by their enthusiastic support and fulfillment of the educational initiatives spearheaded by Liberty’s national Hispanic Programs Team. All Liberty Tax Service professionals teaching classes and making presentations come from offices that have earned the Hispanic Services Seal of Excellence from Liberty Tax, through a rigorous certification program provided by the Una Familia Sin Fronteras corporate team. This certification training ensures that Liberty offices and staff are qualified and trained to provide services to Hispanic consumers. Because of the integrity, success and value of the Una Familia Sin Fronteras educational initiative, Liberty Tax Service has been embraced by nonprofits, educational institutions and governmental entities across the nation, with which private companies are rarely allowed to partner.

“Liberty has focused on ensuring that we provide special services that are very much needed by our new immigrant communities,” explains John Hewitt, CEO and Founder of Liberty Tax Service. “We believe that information provides options, and options provide empowerment. Our Una Familia Sin Fronteras initiative and Foundation were created specifically to bring these much-needed values to our Latino neighbors across the U.S.”

Additionally, national alliances have been established by Liberty Tax Service’s Diversity Programs team than enable organizations with important messages for the Hispanic community to provide these messages at no cost. Many of these organizations provide materials that are distributed by Liberty Tax Service professionals at educational events, as well as at weekly “Roadside Fiestas” held at all offices during tax season. Additionally, some of the organizations are invited to appear as guests on Liberty Tax Service’s Community-Oriented radio programs, aired live on a weekly basis in over 40 cities from January through April.

Past programs have included representatives from:

• Mothers Against Drunk Driving (MADD)
• U.S. Department of Education (Federal Student Aid)
• American Red Cross
• March of Dimes

Also in 2011, Liberty Tax Service announced the creation of the Una Familia Sin Fronteras Foundation, the first Foundation in the industry which specifically aims to contribute to Hispanic immigrants’ success through fiscal and financial education. The Una Familia Sin Fronteras Foundation was created to broaden their fiscal and financial education programs currently being offered, as well as to allow other corporations and professionals the opportunity to add their educational experience and expertise to the mix, thereby offering new immigrant communities information that will help them grow financially and more quickly become integrated into the U.S. economic system, ultimately achieving their “American dream.”

When it comes to their children’s education, Latino voters have clear and high aspirations: a new poll revealed that an overwhelming 96%—almost all—would like to see their kids earn a college degree, whether it is a bachelor’s, master’s or professional degree.

What is not so clear is whether these voters can achieve this, at least from the financial point of view, since 59% do not think they will be able to continue paying their children’s tuition if it increases again next year. And 40% thinks that in general, even today, it will be difficult to pay all the costs associated with having their children attend college.

These are some of the results of an impreMedia/Latino Decisions poll, the fourth in a series of six national polls exploring the opinions of the Latino group that has best integrated into American society: registered voters. This particular poll focused on the education issue.

“These results confirm that the stereotype many have about Latinos in this country, that they push their children to look for a job instead of studying, is nothing but a stereotype,” said Adrián Pantoja, an associate professor of political science at Pitzer College. “What happens is that aspirations are one thing and another are economic realities that at times prevent these dreams from coming true. This population is aware of the limitations.”

An interesting poll finding is that, when it comes to seeking solutions for problems related to education and the low high school graduation rate, Latino voters are not so attached to ideological solutions (read: liberal or conservative) and freely choose from both options, sometimes in contradictory ways.

For example, the poll revealed Latinos consider the participation of parents the most important or crucial issue in tackling education problems. Only 17% blamed the state, 10% the school district and 5% teachers. In fact, Latinos usually have a high opinion of their children’s schools and teachers. Of respondents, 73% think their children’s teachers are good or excellent, while 67% think the school their children attend is good or excellent.

Also, 74% oppose reducing teachers’ salaries. However, 53% support the idea—generally considered conservative—of basing salaries on performance rather than seniority, an option supported by 37%.

They also support the idea of rewarding school performance and encouraging schools to compete against each other, something consistent up to a point with educational reforms proposed by both George W. Bush and Barack Obama.
“Latinos respect teachers, want to pay them more and, although they’re not conservative per se, are open to a variety of solutions,” said Gary Segura, a poll advisor and Stanford University professor.

Regarding solutions to education problems, voters support different things. The use of tax credits to pay for private school or college tuition obtained the support of 51% (school) and 84% (college) of voters. Nevertheless, history has shown that, when push comes to shove, a high percentage of Latino voters reject vouchers.
For example, in 2000 there were two renowned state initiatives involving vouchers (which are essentially publicly funded coupons given to parents to invest in their children’s education at a private institution, an idea the Republicans have pursued for years). These initiatives, in California and Michigan, were defeated and rejected, especially by African-American and Latino voters.

But the persistent attraction of this type of solution means that Latinos are open to possible non-conventional solutions to education problems.

Latinos are political entities who are hard to categorize within the political or ideological options in the United States, according to Robert R. Preuhs, a political scientist at the Metropolitan State College of Denver.

“When you ask Latinos whether they’re liberal, moderate or conservative, more of them say they don’t know than what we see in other groups. And it’s not because they don’t know what it means, but rather because they have mixed ideas about things… Latinos are fiscally liberal and vote for the Democratic Party; however, on some issues, they answer like conservatives,” said Preuhs.

The poll also shows overwhelming support for facilitating education for undocumented students (76%) and bilingual education (80%), and opposition to reducing the school calendar (84%) and reducing art and music classes (65%). These voters are willing to pay more taxes for bond measures or to collect money and invest it in education (63%), all of which are the most liberal options within the political spectrum.

Education continues being an issue of the utmost importance for Latinos in the U.S.—although in recent months, other issues such as the economy and immigration have had more of a presence in the public arena and have demonstrated a higher priority in recent polls of Latinos in the United States.
In these types of polls, it was traditional for education to be the number one issue for these voters, but in this particular poll, education came third after the economy/jobs and immigration. This makes sense especially today, when the educational opportunities for young people are connected to their immigration status and the swings of the economy.

The economic situation has led states and school districts to make cuts in school spending and increase tuition in colleges and universities frequently in the last few years. This severely impacts the aspirations of Latinos, since a majority of their children count on public education in order to progress, according to the experts.

Source: La Opinion/Impremedia, 8/18/11, by Pilar Marrero

College and career readiness among 2011 Hispanic U.S. high school graduates who took the ACT test shows slow but steady improvement, particularly in the key areas of math and science, according to ACT’s yearly report, The Condition of College and Career Readiness 2011, released today. This has occurred as the number of Hispanic test-takers continues to dramatically increase.

Eleven percent of Hispanic graduates in the class of 2011 who took the ACT exam met or surpassed all four of the ACT College Readiness Benchmarks suggesting they are ready to succeed academically in specific first-year college courses (English composition, college algebra, introductory social science and biology) without the need for remediation. This is unchanged from last year and up from 10 percent the previous three years.

The ACT College Readiness Benchmarks, which are based on actual grades earned by students in college, specify the minimum scores needed on each ACT subject-area test (English, mathematics, reading and science) to indicate that a student has a 50 percent chance of earning a grade of B or higher or about a 75 percent chance of earning a C or higher in a typical credit-bearing first-year college course in that subject area.

The improvement in college readiness among Hispanic students is most evident in the key area of mathematics. This year, 30 percent (compared to 27 percent in 2010 and 26 in 2007) of the students in this group met or exceeded the ACT College Readiness Benchmark in math, while 47 percent (compared to 46 in 2010 and 49 in 2007) met or exceeded the English benchmark. Thirty five percent (compared to 34 in 2010 and 2007) of Hispanic graduates met or exceeded the ACT benchmark in reading. Finally, 15 percent (compared to 14 percent in 2010 and 13 percent in 2007) met or exceeded the benchmark in science.

“It’s encouraging to see that more Hispanic students are ready to succeed academically at the next level,” said Jon Erickson, interim president of ACT’s Education Division.

However, ACT results continue to show an alarmingly high number of students who are graduating without all of the academic skills they need to succeed after high school. Forty-five percent of Hispanic test takers in the 2011 graduating class failed to meet any of the four ACT College Readiness Benchmarks.

“Too many students are still falling through the cracks,” said Erickson. “It’s important that we work hard to ensure that all young people graduate from high school with the skills they need to succeed in college and career.”

This year’s pool of ACT-tested graduates is the largest and most ethnically diverse in the 52-year history of the exam. More than 1.62 million 2011 graduates—49 percent of the entire U.S. graduating class—took the ACT, an all-time record number for the seventh year in a row. The proportion of African-American and Hispanic/Latino test takers has grown from 19 percent in 2007 to a high of 26 percent in 2011.

The growth in Hispanic test takers over the past five years has been dramatic. More than 200,000 Hispanic graduates (200,661) took the ACT test in 2011, 27 percent more than in 2010 and more than twice the number as in 2007. The rising number of Hispanic students taking the ACT continues to move closer to the actual representation of this group among all students. In 2007, Hispanic students were just seven percent of ACT test takers while they represented 15 percent of all graduating seniors. This year, 12 percent of ACT test takers are Hispanic compared to their ethnic representation of 18-percent among all graduates.

The ACT is an achievement test that measures knowledge and academic skills learned in school and validated as critical for success in college. Although academic readiness is a crucial factor impacting college and career readiness, ACT research points to academic skills, behavioral readiness, and education and career planning as three key dimensions of college and career readiness.

“Assessing what students have learned so far is a vital element in helping them to improve, but college and career readiness is very complex,” said Erickson. “With more and more students across the country participating in testing, it’s important that test results are not overemphasized as a single answer to the readiness problem. We at ACT are committed to identifying the various factors that ensure success. The ACT test is used for multiple goals and purposes beyond admissions and predicting college outcomes, such as course placement, counseling, and accountability.”

Finally, the ACT report points to policies and practices that states, districts and schools can implement to systemically increase the percentage of their students who are ready for college-level work.

“If states, districts and schools will follow these recommendations, our research shows that students will benefit,” said Erickson. “And when young people benefit, so does our entire country. ACT will continue working hard to help identify solutions to the problems that impact college and career readiness in the U.S.”

Download report at:
href=”http://www.act.org/news/data/11/index.html”

Source: HispanicAd.com, 8/18/2011

Liberty Tax Service announced that the existing and successful educational alliance with the University Nacional Autónoma de México (UNAM) in San Antonio has recently expanded to the Chicago Campus. Local fiscal and financial experts from Liberty Tax Service’s unique educational outreach initiative, Una Familia Sin Fronteras, will offer financial and fiscal education seminars free of charge to UNAM’s students throughout the year. Programs will be tailored to answer the participants’ primary areas of interest, including small business start-up procedures and first homeowner information, along with basic tax and fiscal responsibility seminars. The majority of programs will be offered in Spanish, since this educational outreach program serves many 1st-generation Hispanic immigrant families, but they may also be available in English for the non-Spanish speaking communities or for English-proficient Hispanic students. Many of these seminars also qualify for college credits with the University of Phoenix, so participants can enjoy the excitement of completing a college-accredited course.

UNAM is Mexico’s most prestigious international learning institution having been in existence for over 450 years. UNAM Chicago is a part of the Center for Foreign Students (CEPE), and was founded in 2001 with the mission of extending UNAM’s academic programs and services to institutions, groups and individuals associated with or interested in its educational and cultural endeavors, while working to promote a better understanding of Mexico and the United States. Typical courses offered include English and Spanish classes, professional development or computer training classes, and cultural classes for non-Mexicans interested in learning more about Mexico.

These seminars and workshops will be taught by Liberty Tax Service professionals from offices in the Chicago area that have earned the Hispanic Services Seal of Excellence from Liberty Tax, through a rigorous certification program provided by the Una Familia Sin Fronteras corporate team. This certification training ensures that Liberty professionals are qualified and trained to provide services to Hispanic consumers. The goal of this alliance will be to develop programs of value to a broad immigrant base, so that newcomers can learn the values of the economic system in the U.S. and better enter into our mainstream economy.

With the addition of the Chicago classes, Liberty Tax professionals will teach over 40 classes this year at the San Antonio and Chicago campuses of UNAM. It is anticipated that the financial and fiscal literacy classes will be expanded to the Los Angeles campus of UNAM in the United States in the near future.

This alliance is yet another extension of Liberty Tax’s unique and highly successful Hispanic initiative, Una Familia Sin Fronteras (A Family Without Boundaries) and its Foundation by the same name, which together provide educational outreach programs that bring financial and fiscal education seminars and courses to Hispanic communities across the nation, at no cost. Courses and seminars are taught in Spanish (and English as needed), and many qualify for college credits through the University of Phoenix. Franchise owners and their staff across the United States demonstrate their commitment throughout the year to Liberty’s Una Familia Sin Fronteras Hispanic educational initiative by their enthusiastic support and fulfillment of the educational initiatives spearheaded by Liberty’s national Hispanic Programs Team. Because of the integrity, success and value of the Una Familia Sin Fronteras educational initiative, Liberty Tax Service has been embraced by nonprofits, educational institutions and governmental entities across the nation, with which private companies are rarely allowed to partner.

“UNAM Chicago supports the commitment of Una Familia Sin Fronteras to the Spanish-speaking community. We think the organization is really well prepared to carry out these programs throughout the United States, while impacting a significant number of people in great need for this information,” comments Arturo Castro, Head of Business and Cultural Affairs at UNAM Chicago. “The results benefit all of society. We are proud to collaborate with them.”

“Liberty has focused on ensuring that we provide special services that are very much needed by our new immigrant communities,” explains John Hewitt, CEO and Founder of Liberty Tax Service. “We believe that information provides options, and options provide empowerment, and ultimately, empowerment provides self-esteem – a priceless trait. Our Una Familia Sin Fronteras initiative and Foundation were created specifically to bring these much needed values to our Latino neighbors across the U.S.”

Liberty Tax Service anunció que la exitosa alianza educativa existente con la Universidad Autónoma de México (UNAM) en San Antonio recientemente se ha expandido al campus de Chicago. Los expertos locales de Una Familia Sin Fronteras, la iniciativa única y educativa de Liberty Tax Service, ofrecerá seminarios educativos fiscales y financieros sin ningún costo a los estudiantes de la UNAM durante el año. Los programas van a ser modificados para cubrir las áreas de interés principales de los participantes, incluyendo los procedimientos de cómo comenzar un pequeño negocio e información para compradores de vivienda por primera vez, como también seminarios básicos de responsabilidad tributaria y financiera. La mayoría de los programas serán ofrecidos en español, debido a que este programa educativo para la comunidad sirve a muchas familias de inmigrantes Hispanos de 1ra generación, pero también podrían ofrecerse en inglés para las comunidades que no hablan español o para los estudiantes Hispanos con un inglés más competente. Muchos de estos seminarios también califican para créditos universitarios de la Universidad de Phoenix, por lo cual los participantes pueden disfrutar del entusiasmo de haber completado un curso acreditado a nivel universitario.

La UNAM es la institución internacional de aprendizaje más prestigiosa de México, con más de 450 años de existencia. La UNAM de Chicago es parte del Centro para Estudiantes Extranjeros (CEPE, por sus siglas en inglés), y fue fundado en el 2001 con la misión de extender los programas académicos y servicios de la UNAM a las instituciones, grupos e individuos asociados o interesados en sus esfuerzos educacionales y culturales, y a la misma vez trabajan para promover un mejor entendimiento de México y los Estados Unidos. Algunos cursos ofrecidos son clases de inglés y español, desarrollo profesional o clases de entrenamiento para uso de la computadora, y clases culturales para personas de no-origen mexicano que estén interesados en aprender más acerca de México.

Estos seminarios y talleres serán proporcionados por los profesionales de las oficinas de Liberty Tax Service en el área de Chicago que han obtenido el Sello de Excelencia en Servicios Hispanos de Liberty Tax, a través de un programa de certificación riguroso proveído por el equipo corporativo de Una Familia Sin Fronteras. Este entrenamiento de certificación asegura que los profesionales de Liberty son calificados y entrenados para proporcionar servicios a los consumidores Hispanos. La meta de esta alianza será desarrollar programas de valor para una población de inmigrantes más amplia para que los recién llegados aprendan los valores del sistema económico en los EE. UU. y se integren mejor a nuestra economía .

Con la adición de las clases de Chicago, los profesionales de Liberty Tax instruirán en más de 40 clases este año en los campus de San Antonio y Chicago de la UNAM. Se anticipa que las clases de conocimiento financiero y fiscal se expandirán al campus de Los Ángeles de la UNAM en los Estados Unidos en un futuro cercano.

Esta alianza es una extensión más de la iniciativa Hispana única y tan exitosa de Una Familia Sin Fronteras y su Fundación, que lleva el mismo nombre, la cual juntas proporcionan programas educativos para la comunidad y ofrecen seminarios y cursos educativos financieros y fiscales a las comunidades Hispanas alrededor del país, sin costo alguno. Los cursos y seminarios se ofrecen en español (e inglés si lo es necesario), y muchos califican para créditos universitarios a través de la Universidad de Phoenix. Alrededor de los Estados Unidos y durante todo el año, los propietarios de las franquicias y su personal demuestran su dedicación a Una Familia Sin Fronteras, la iniciativa Hispana educativa de Liberty, a través de su apoyo y compromiso de las iniciativas educacionales encabezadas por el Equipo nacional de los Programas Hispanos de Liberty. Debido a la integridad, éxito y valor de la iniciativa educacional de Una Familia Sin Fronteras, Liberty Tax Service ha sido acogida por organizaciones sin fines de lucro, instituciones educativas y entidades gubernamentales alrededor del país, con las cuales compañías privadas raramente se les permite asociarse.

“La UNAM de Chicago apoya el compromiso de Una Familia Sin Fronteras a la comunidad de habla Hispana. Pensamos que la organización en verdad esta preparada para llevar a cabo estos programas a través de los Estados Unidos, y a la misma vez impactando un número significante de personas que necesitan esta información,” comenta Arturo Castro, Encargado de los Asuntos de Negocios y Culturales de la UNAM de Chicago. “Los resultados benefician a toda la comunidad. Estamos orgullosos de colaborar con ellos.”

“Liberty se ha enfocado en asegurarse de proporcionar servicios especiales que son muy necesitados por nuestras nuevas comunidades inmigrantes,” explica John Hewitt, CEO y Fundador de Liberty Tax Service. “Creemos que la información brinda opciones, y que las opciones brindan poder, y finalmente, el poder brinda auto-estima – una característica que no tiene precio. Nuestra iniciativa y Fundación de Una Familia Sin Fronteras fue creada específicamente para proporcionar estos valores tan necesitados a nuestros vecinos Latinos alrededor de los EE. UU.”

It is essential for countless parents that work or are looking for work to arrange for care of their children under 13 years of age during the school vacation.

Here are five facts that you should know about a tax credit available for child care expenses. The Child and Dependent Care Credit, is available for expenses incurred during the summer and during the course of the rest of the year.

1. The cost of day camp may count as an expense towards the child and dependent care credit.

2. Expenses for overnight camps do not meet the requirements.

3. No matter if your childcare provider is a sitter at your home or a daycare facility outside the home; you’ll get some tax benefit if you qualify for the credit.

4. The credit can be up and around 35 percent of your qualifying expenses, depending on your income.

5. You may use up to $3,000 of the unreimbursed expenses paid in a year for one qualifying individual or $6,000 for two or more qualifying individuals to figure the credit.

For more information check out Liberty Tax Service, www.libertytax.com, or visit the IRS, www.irs.gov, to find IRS Publication 503, Child and Dependent Care Expenses.

(Virginia Beach, VA) – Liberty Tax Service, la compañía de preparación de impuestos de mayor crecimiento en la historia de la industria, esta ayudando a estudiantes y familias en comunidades de bajos recursos alrededor de los Estados Unidos a alcanzar el sueño de una educación avanzada al crear conciencia del programa de Ayuda Federal para Estudiantes y ofreciendo asistencia GRATUITA en todas sus oficinas a nivel nacional para presentar las aplicaciones.

Al principio del 2010, el Equipo de Programas Hispanos de Liberty se reunió con el equipo de la Casa Blanca que dirige la Iniciativa para la Excelencia en la Educación de los Hispanoamericanos y descubrieron que existe mucha falta de información sobre la disponibilidad de Ayuda Federal para Estudiantes para la educación post-secundaria en los hogares de las comunidades de minorías alrededor de los Estados Unidos. Además, el simple hecho de llenar estos formularios puede ser una tarea de enormes proporciones para muchos en estas comunidades. En reuniones subsiguientes con el Departamento de Educación de los EE.UU., fue nuevamente establecido que crear conciencia de la ayuda federal estudiantil y ayudar a las familias a exitosamente entender el proceso de la aplicación es una oportunidad clave para realísticamente incrementar el índice de la asistencia en escuelas post-secundarias en nuestra comunidad Hispana, como también en otras comunidades de minorías alrededor de los Estados Unidos.

A lo largo de tres décadas, el costo real ajustado por inflación de la matrícula para universidades privadas de cuatro años se ha duplicado, la matrícula en universidades públicas de cuatro años casi se ha triplicado. Por lo tanto, hacer asequible la universidad para todos los estudiantes es una prioridad principal para la Administración de Obama.

Inspirado por las reuniones y conversaciones con la Iniciativa de la Casa Blanca, el Equipo de Programas de Diversidad de Liberty Tax Service concluyó que sus oficinas locales podrían ayudar a diseminar la información, crear conciencia y ayudar con las Solicitudes Gratuitas de Ayuda Federal para Estudiantes en las comunidades de minorías, y lo podían hacer en ambos idiomas del español e inglés, con el objetivo de incrementar el porcentaje de solicitudes de comunidades de bajos recursos alrededor de los Estados Unidos. Como alguna de la información necesaria para la Solicitud FAFSA es obtenida de la declaración de impuestos del solicitante o de su familia, Liberty Tax Service embarcó en la misión de convertirse en un recurso confiable para animar y asistir a los que aplican por ayuda financiera.

En diciembre 2010, las oficinas de Liberty Tax Service alrededor de los Estados Unidos recibieron entrenamiento y materiales explicando los beneficios, el proceso, documentos e información necesaria para FAFSA (Solicitud Gratuita de Ayuda Federal para Estudiantes). Las oficinas de Liberty surgieron como un recurso bilingüe para material en inglés y español proveídos por el Departamento de Educación, como también un recurso creado para ofrecer asistencia GRATIS al llenar el formulario. Los clientes fueron animados a presentar las solicitudes para sus hijos o para ellos mismos. Información educativa fue compartida en los portales web de Liberty Tax Service (inglés y español) con enlaces a recursos y portales web del Departamento de Educación; y seminarios fueron creados y actualmente presentados en colegios secundarios, universidades comunitarias y varios programas de educación a nivel nacional en inglés y español.

El apoyar el objetivo de la Iniciativa de la Casa Blanca para diseminar la información a la comunidad Hispana también se convirtió un enfoco principal para 2011 para la iniciativa Una Familia Sin Fronteras de Liberty Tax Service, un programa único que ayuda a las comunidades Hispanas alrededor del país a través de seminarios y cursos de educación financiera y fiscal, sin ningún costo. Al comienzo de enero, el Equipo de Programas Hispanos estableció un programa comprensivo de comunicación en el idioma español para crear conciencia de la Ayuda Federal para Estudiantes y sus beneficios, explicando el proceso y la base de calificación, y para animar a los consumidores a beneficiarse de sus servicios bilingües y la asistencia gratis proveída por las oficinas CERTIFICADAS CON EL SELLO DE SERVICIO DE EXCELENCIA de Liberty para ayudar a comprender el proceso de FAFSA.

En programas de radio de 30 minutos a través de 29 mercados alrededor de los Estados Unidos, auspiciados y conducidos por la iniciativa Una Familia Sin Fronteras de Liberty Tax Service, el tema de la disponibilidad de la Ayuda Federal para Estudiantes para la educación post-secundaria fue frecuente, y varios radio-escuchas llamaron con preguntas acerca de los requisitos para calificar para esta ayuda y el proceso de aplicación. En marzo, Liberty también tuvo el gusto de tener como invitados a representantes de habla-hispana del Departamento de Educación en los programas de radio, permitiendo que la voz del programa FAFSA se compartiera con nuestras alianzas educativas dentro del gobierno.

De acuerdo con Juan Sepúlveda, Director de la Iniciativa de la Casa Blanca para la Excelencia Educativa para Hispanos, “La Aplicación Simplificada Gratuita de Ayuda Federal para Estudiantes (FAFSA), ahora disponible en español, permite a los solicitantes recuperar los registros de impuestos electrónicamente del Servicio de Rentas Internas, haciendo este proceso más fácil, lo indica el incremento del 35% de solicitudes. Además, la cantidad de fondos federales disponibles para estudiantes para asistir a la universidad se ha duplicado, las inversiones administrativas otorgadas para becas Pell se han incrementado de $4,730 en 2008 a $5,550 en la actualidad, permitiendo que más estudiantes de bajos ingresos, especialmente los latinos, puedan recibir asistencia en el pago de la universidad. Estas mejoras a FAFSA y al financiamiento federal ayudaran a que esta nación sea un líder mundial en educación y a que tenga la mayor proporción de graduados universitarios en 2020.”

“La educación es un elemento clave para el crecimiento y fortaleza económica de nuestras comunidades Latinas en Estados Unidos” explica Martee Saldaña Pierson, Directora de Programas de Diversidad de Liberty Tax Service. “Por esta razón, nosotros creamos nuestra iniciativa y Fundación educativa Una Familia Sin Fronteras para otorgar educación GRATIS a nuestras comunidades Hispanas y en su propio idioma. Nuestra alianza con el Equipo de la Iniciativa de la Casa Blanca ha sido instrumental en otorgar recursos importantes a nuestros vecinos Hispanos, al trabajar juntos para mejorar esta “mayoría emergente” que es nuestra población Hispana.

Liberty Tax Service también ha creado alianzas con distritos escolares y universidades comunitarias en varias áreas para ofrecer seminarios y sesiones de consultas bilingües a estudiantes y familias que deseen aprender más acerca de la Ayuda Federal Estudiantil y el proceso de aplicación. Las organizaciones o escuelas que estén interesados en tener una reunión para conversar acerca de la Ayuda Federal para Estudiantes, las presentaciones y/o las consultas brindadas en ambos idiomas por profesionales calificados de Liberty Tax Service deben comunicarse con Martee Pierson al 757.301.8111.

(Virginia Beach, VA) – Liberty Tax Service, the fastest-growing retail tax preparation company in the industry, is helping students and families in underserved communities throughout the United States realize their dream of advanced education by creating awareness of the Financial Student Aid program and offering FREE assistance with completing these applications through their offices nationwide.

In early 2010, Liberty’s Hispanic Programs Team met with the White House team leading the Initiative for Educational Excellence among Hispanic Americans and learned that there is a wide gap in awareness of the availability of Federal Student Aid for postsecondary education among households in minority communities throughout the United States. Additionally, completing these forms can be a daunting task for many in these communities. In meetings with the U.S. Department of Education, it was further established that creating awareness of federal student aid and assisting families to successfully navigate the application process has been identified as a key opportunity to realistically increase the postsecondary school attendance rate in the Hispanic community, as well as in other minority communities in the United States.

Over the span of three decades, the real, inflation-adjusted cost of tuition for private four-year colleges has more than doubled; tuition at public four-year institutions has nearly tripled. Consequently, making college affordable for all students is a top priority for the Obama Administration.

Inspired by the White House Initiative meetings and conversations, the Diversity Program’s Team at Liberty Tax Service realized that their local offices could help close the gap in awareness of and applications for Student Financial Aid in minority communities, and could do so in both Spanish and English across the nation. Since some of the information needed for applications comes from the applicants’ or their family’s tax returns, Liberty Tax Service embarked on a mission to become a trusted resource for encouragement and assistance in applying for financial aid.

In December, 2010, Liberty Tax Service offices across the U.S. received training and materials explaining the benefits, process, documents and information needed for FAFSA (Free Application for Federal Student Aid) forms completion services. Liberty’s offices became a bilingual resource for English and Spanish materials provided by the Department of Education as well as created in-house, offering FREE forms completion assistance. Potentially qualified clients were encouraged to submit applications for their children and/or for themselves. Educational information was posted on the Liberty Tax Service websites (English and Spanish) with links to the Department of Education resources and websites; and seminars were created that are currently being presented at high schools, community colleges and various educational outreach programs across the nation in English and Spanish.

Supporting the White House Initiative’s objective of closing the gap in the Hispanic community also became a major focus of the 2011 outreach program for Liberty Tax Service’s Una Familia Sin Fronteras initiative, a unique educational outreach program that brings financial and fiscal education seminars and courses to Hispanic communities across the nation, at no cost. In early January, the Hispanic Programs Team deployed a comprehensive Spanish-language communications program to create awareness of Federal Student Aid and its benefits, explaining the process and basis for qualification, and encouraged consumers to benefit from its bilingual services for assistance in navigating the FAFSA process, provided by HISPANIC SERVICES SEAL OF EXCELLENCE CERTIFIED offices.

In weekly, 30-minute, Spanish-language educational radio shows in 29 markets across the U.S. sponsored and hosted by Liberty Tax Service’s Una Familia Sin Fronteras initiative and Foundation, the availability of Federal Student Aid for postsecondary education was a frequent topic, with numerous call-ins from listeners with questions about qualification, as well as the application process. In March, Liberty also hosted Spanish-speaking representatives from the Department of Education as guests on many of these shows, allowing the voice of the FAFSA program to be shared with our educational alliances within the government.

According to Juan Sepulveda, Director of the White House Initiative on Educational Excellence for Hispanics, “The simplified Free Application for Federal Student Aid (FAFSA), now available in Spanish, allows applicants to retrieve tax records electronically from the Internal Revenue Service, making it easier to complete—as the 35% increase in applicants now shows. In addition, the amount of federal funding available for college-going students has doubled; Administration investments in Pell Grants have grown the award from $4,730 in 2008 to $5,550 today, enabling more low-income students—particularly Latinos—to receive assistance in paying for college. These improvements to the FAFSA and federal funding will help this nation lead the world in education and have the highest proportion of college graduates by 2020.”

“Education is a key component to the growth and economic strength of our Latino communities in the United States,” explains Martee Saldaña Pierson, Director of Diversity Programs for Liberty Tax Service. “For this reason, we created our Una Familia Sin Fronteras educational initiative and Foundation so we can bring FREE education to our Hispanic communities and do so in their own language. Our alliance with the White House Initiative Team has been instrumental in bringing vital education resources to our Hispanic neighbors, and we plan to continue pushing forward with this important program as we work together for the betterment of this ‘emerging majority’ that is our Hispanic population.”

Liberty Tax Service is also partnering with school districts and community colleges in many areas to offer bilingual seminars and consultation sessions students and families who wish to learn more about Federal Student Aid and the application process. Organizations or schools that are interested in holding open houses or meetings to discuss Federal Student Aid with presentations and/or consultation by qualified Liberty Tax Service professionals in both languages should contact Martee Pierson at Liberty Tax Service, 757.301.8111.

Liberty Tax Service wants students to be aware of six things when they start a summer job:

1. When you start a new job you must fill out a Form W-4, Employee’s Withholding Allowance Certificate. This form determines the amount of tax that will be withheld from your paycheck by your employer. If you have several summer jobs, make sure all your employers are withholding an adequate amount of taxes to cover your total income tax liability. To make sure your withholding is correct; use the Withholding Calculator on www.libertytax.com.

2. If you are working as a waiter or in some other position where you are receiving tips, remember this will be part of your summer income. All tips you receive are taxable income and are subject to federal income tax.

3. Many students do various odd jobs during the summer to make extra cash. Wages you receive from self-employment are also subject to income tax (i.e. babysitting or lawn care).

4. If you have take-home incomes of $400 or more from self-employment, you will also have to pay self-employment tax. This tax pays for your benefits under the Social Security system. Social Security and Medicare benefits are available to individuals who are self-employed the same as they are to wage earners who have Social Security tax and Medicare tax withheld from their wages. The self-employment tax is figured on Form 1040, Schedule SE.

5. Food and lodging stipends 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.

6. Special rules apply to services you perform as a newspaper carrier or distributor. You are a direct seller and treated as self-employed for federal tax purposes if you meet the following conditions:
• You are in the business of delivering newspapers.
• All your pay for these services directly relates to sales rather than to the number of hours worked.
• Lastly, if you perform the delivery services under a written contract which states that you will not be treated as an employee for federal tax purposes.

WASHINGTON – U.S. Education Secretary Arne Duncan today urged parents, educators and school leaders at every level of government to make Hispanic educational excellence a national priority. Secretary Duncan’s challenge follows the release of a sobering new report on the Hispanic achievement gap by the National Center for Education Statistics (NCES), the U.S. Department of Education’s statistical center.

Mathematics and reading scores for Hispanic students have increased over time, but the gap between Hispanic students and their white counterparts on the National Assessment of Educational Progress has not changed since the 1990s, according to the comprehensive report by NCES. Over the same period, the gap between non-limited English proficient Hispanic students and their white peers narrowed.

In the knowledge economy, Secretary Duncan said it is more vital than ever that every child in America be able to go as far as his or her potential, talent and energy will allow.

“Race and ethnicity shouldn’t be factors in the success of any child in America,” said Secretary Duncan. “Hispanic students are the largest minority group in our nation’s schools. But they face grave educational challenges that are hindering their ability to pursue the American dream. We must expand their educational opportunities at every level of the P-12 system to compete with the rest of the world.”

Expanding opportunities is crucial to reaching the Obama Administration’s goal of having the world’s highest share of college graduates by 2020. “We cannot achieve the 2020 goal without challenging every level of government to make the educational success of Latinos a top priority,” said Secretary Duncan. “America’s future depends on it.”

Juan Sepulveda, the director of the White House Initiative on Educational Excellence for Hispanics, noted that the Obama Administration is working in partnership with communities across the country.

“Low Hispanic educational attainment levels aren’t just a problem for the Latino community. Every American has a stake in this,” said Sepulveda. “We’ve brought major organizations and key people from inside and outside the education system together to tackle this challenge. We’re focused on advancing and accelerating achievement, access and attainment for Hispanic students so they’re ready for college and a career and to compete globally.”

At the national level, the achievement gaps between Hispanic and white students at grades 4 and 8 in mathematics and reading are about 20 points on the NAEP scale, according to the NCES report. California and Connecticut each had a Hispanic-white gap larger than that of the nation for grades 4 and 8 in mathematics and for grade 4 in reading, while Department of Defense Education Activity schools, Florida, Kentucky, Missouri and Wyoming had smaller gaps than those of the nation for both reading and mathematics at grades 4 and 8.

Source: U.S. Department of Education, Office of Communications & Outreach, Press Office, 400 Maryland Ave., S.W., Washington, D.C. 20202, 6/23/2011

Mileage Rate Changes

Source: IR-2011-69, irs.gov, 6/23/2011

Mileage Rate Changes

Source: IR-2011-69, irs.gov, 6/23/2011

The Marian Palmer Capps Award recognizes an individual or group who has made significant contributions to the Hampton Roads community through the promotion of educational initiatives that support inter-racial understanding and cooperation. The 2011 recipient of the Marian Palmer Capps Award was Ms. Martee Pierson, the Director of Diversity Programs for Liberty Tax Service, and the Executive Director of the Una Familia Sin Fronteras Foundation. “It is an honor to receive this award on behalf of the entire Liberty Tax Service team and its Una Familia Sin Fronteras education initiative and Foundation,” says Ms.Pierson. “Liberty has long been a supporter of empowerment through education, and we have focused our efforts in helping our diverse communities across the nation reap the benefits of this extremely important goal.”

Marian Palmer Capps, for whom the award is named, is a graduate of Norfolk Public Schools. The professional career of Marian P. Capps began as a high school teacher at Booker T. Washington High School in Norfolk. After receiving her doctorate, she was offered a position at Hampton Institute. Later she became Chairman of the Department of Mathematics at Hampton, a teaching position at Norfolk State University. Dr. Capps was appointed to the Virginia State Council of Higher Education by Governor Mills Godwin in 1978 and was reappointed by Governor Charles Robb in 1982. Long active in the Norfolk community, Dr. Capps has served on innumerable boards, commissions, and committees, was one of the founders of the Urban League of Hampton Roads, and has been honored repeatedly by local, statewide, and national civic and charitable organizations.

“We are proud to once again recognize members of our Hampton Roads community that represent excellence in leadership through the contributions they have made” said Edith White, president and CEO of the Urban League of Hampton Roads. “With this campaign, we get the opportunity to celebrate the individuals and organizations that have supported the Urban League and its ideals, and have helped to empower our efforts. We couldn’t be more excited to celebrate with this commemorative dinner.”

About the Urban League of Hampton Roads
Celebrating its 101st year, the Urban League is an empowerment organization that connects individuals with the resources they need to change their lives. The Urban League of Hampton Roads is among the more than 100 affiliates that offer housing, health, education and jobs programs to empower individuals and families. The Urban League of Hampton Roads was featured on NBC Nightly News for its successful foreclosure program, which has saved several Virginians from losing their homes.

El Premio Marian Palmer Capps reconoce a un individuo o grupo que ha hecho importantes contribuciones a la comunidad de Hampton Roads a través de la promoción de iniciativas educativas que apoyan la comprensión entre las razas y la cooperación. La galardonada del Premio de 2011 de Marian Palmer Capps fue la Sra. Martee Pierson, Directora de Programas de Diversidad de Liberty Tax Service y Directora Ejecutiva de la Fundación Una Familia Sin Fronteras. “Es un honor recibir este premio a nombre de todo el equipo de la iniciativa Hispana de Liberty Tax Service y de la Fundación Una Familia Sin Fronteras, “, dijo la Sra. Pierson. “Liberty siempre ha sido un partidario del empoderamiento a través de la educación, y hemos centrado nuestros esfuerzos en ayudar a nuestras diversas comunidades en todo el país las cuales cosecharán los beneficios de este objetivo extremadamente importante.”

Marian Palmer Capps, cuyo nombre lleva el premio, es una graduada de las Escuelas Públicas de Norfolk. La carrera profesional de Marian P. Capps comenzó como una profesora en la Escuela Secundaria de Booker T. Washington, en Norfolk. Después de recibir su doctorado, se le ofreció un puesto en el Instituto de Hampton. Posteriormente,, se convirtió en la Presidente del Departamento de Matemáticas de Hampton, un puesto de docente en la Universidad Estatal de Norfolk. La Dra. Capps fue nombrada miembro del Consejo de la Educación Superior del Estado de Virginia por el Gobernador Mills Godwin en 1978 y fue reelegida por el gobernador Charles Robb en 1982. Como una integrante activa en la comunidad de Norfolk, la Dra. Capps ha servido en innumerables consejos, comisiones y comités, fue una de las fundadoras de la Liga Urbana de Hampton Roads, y ha sido honrada en varias ocasiones por organizaciones cívicas y caritativas a nivel local, estatal y nacional.

“Estamos orgullosos de volver a reconocer a los miembros de nuestra comunidad de Hampton Roads que representan la excelencia en el liderazgo a través de las contribuciones que han hecho”, dijo Edith White, presidente y directora ejecutiva de la Liga Urbana de Hampton Roads. “Con esta campaña, tenemos la oportunidad de celebrar a las personas y organizaciones que han apoyado la Liga Urbana y sus ideales, y han ayudado a enriquecer nuestros esfuerzos. No podríamos estar más emocionados de celebrar con esta cena conmemorativa.”

Acerca de la Liga Urbana de Hampton Roads
Celebrando su 101er año, la Liga Urbana es una organización de empoderamiento que enlaza a personas con los recursos que necesitan para cambiar sus vidas. La Liga Urbana de Hampton Roads es una de las más de 100 filiales que ofrecen programas de vivienda, salud, educación y empleo para empoderar a los individuos y las familias. La Liga Urbana de Hampton Roads fue presentada en la cadena NBC Nightly News por su exitoso programa de ejecución hipotecaria, que ha evitado a varios residentes de Virginia la pérdida de sus hogares

The percentage of Hispanic 18- to 24-year-olds who are not enrolled in high school and don’t have an equivalent degree was 22 percent in 2008, down from 34 percent in 1998.

Meanwhile, the number attending a 2-year college increased 85 percent, from 540,000 in 2000 to 1 million in 2008.

“It’s an amazing level of growth,” said Kurt Bauman, the chief of the Census Bureau’s education branch.

Researchers said the numbers on high school completion were the result of several factors, including targeted efforts to reduce the number of Latino students dropping out, as well as an increasing percentage born and attending all their schooling in the United States.

But several experts also expressed concern that high numbers are choosing two-year colleges, where students tend to have lower completion rates and frequently do not go on to earn a bachelor’s degree.

Jose Cruz, vice president for higher education policy and practice with the Education Trust, pointed to studies that show a majority of Latino students aspire to earn a bachelor’s degree, but noted they are overrepresented in 2-year institutions. He attributed the gap to issues of K-12 preparation, insufficient counseling and the overwhelming financial contribution low-income families must make in order to attend a 4-year institution.

Frank Alvarez, president of the Hispanic Scholarship Fund, himself a community college graduate, said that many students fail to finish an associate’s degree because they find themselves inadequately prepared and lacking guidance once they make their way into the system.

“If you’re going to community college because it’s less costly, or because it’s the option that’s closest to you, there’s nothing wrong with that, but please continue to a four-year school,” Alvarez said.

The Census report contained a number of other education indicators, including data on early education and demographics. The number of students enrolled in kindergarten has increased from 2.9 million in 1978 to 4 million in 2008. Higher numbers are also going to full-day instead of part-day programs.

Among nursery school students, Hispanic students made up 18 percent, an increase of 5 percent from 1998.

Deborah Santiago, vice president for policy and research at Excelencia in Education, said the findings on high school completion should be celebrated, though she cautioned there was still significant work to be done targeting dropout factories and increasing college readiness.

“What this does is create an opportunity to think about the population even more clearly as a college-going community, as a community that does have educational success,” Santiago said.

Source: Miami Herald (June 8, 2011), by Christine Armario

Liberty Tax Service announced that local offices in the Kansas City area have formed an educational alliance with the University of Missouri – Kansas City supporting the University’s outreach program for parents of elementary school children. Local fiscal and financial experts from Liberty Tax Service’s unique educational outreach initiative, Una Familia Sin Fronteras, will offer financial and fiscal education seminars free-of-charge to parents throughout the year. Programs will be tailored to answer the participants’ primary areas of interest, including small business start-up procedures and first homeowner information. The majority of programs will be offered in Spanish, since this educational outreach program serves many 1st-generation Hispanic immigrant families, but they will also be available in English for the non-Spanish speaking communities. Many of these seminars also qualify for college credits with the University of Phoenix, so participants can enjoy the excitement of completing a college accredited course!

Additionally, Liberty Tax Service is partnering with the Kansas City, Missouri School District (KCMSD) offering financial and fiscal education seminars to parents of elementary, middle and high school students throughout the year. The first seminar will cover Student Financial Aid (FAFSA), outlining the opportunities for families to take advantage of financial aid for education, explaining the application process, and encouraging families to apply for FAFSA grants in order to help enable qualified students to pursue higher education.

These seminars and workshops will also be taught by Liberty Tax Service professionals from offices in the Kansas City area that have earned the Hispanic Services Seal of Excellence from Liberty Tax, through a rigorous certification program provided by the Una Familia Sin Fronteras corporate team. This certification training ensures that Liberty offices are qualified and trained to provide services to Hispanic consumers. The goal of both alliances will be to develop programs of value to a broad parent base, so that the attendance and interest in parent programs can expand for both organizations, and so that parents can learn the values of the economic system in the U.S. and better enter into our mainstream economy.

These new alliances are extensions of Liberty Tax’s unique and highly successful Hispanic initiative, Una Familia Sin Fronteras (A Family Without Boundaries) and its Foundation by the same, which together provide educational outreach programs that bring financial and fiscal education seminars and courses to Hispanic communities across the nation, at no cost. Courses and seminars are taught in Spanish (and English as needed), and many qualify for college credits through the University of Phoenix. Franchise owners and their staff across the United States demonstrate their commitment throughout the year to Liberty’s Una Familia Sin Fronteras Hispanic educational initiative by their enthusiastic support and fulfillment of the educational initiatives spearheaded by Liberty’s national Hispanic Programs Team. Because of the integrity, success and value of the Una Familia Sin Fronteras educational initiative, Liberty Tax Service has been embraced by nonprofits, educational institutions and governmental entities across the nation, with which private companies are rarely allowed to partner.

“Liberty has focused on ensuring that we provide special services that are very much needed by our new immigrant communities,” explains John Hewitt, CEO and Founder of Liberty Tax Service. “We believe that information provides options, and options provide empowerment. Our Una Familia Sin Fronteras initiative and Foundation were created specifically to bring these much needed values to our Latino neighbors across the U.S.”

Liberty Tax Service anunció que las oficinas locales de Kansas City han formado una alianza educativa con la Universidad de Missouri – Kansas City apoyando los programas de la Universidad que están disponibles para los padres de los niños que asisten a la escuela primaria. Los expertos fiscales y financieros del área local de Liberty Tax Service que forman parte de la iniciativa educativa, Una Familia Sin Fronteras, ofrecerán seminarios fiscales y financieros gratuitos a los padres durante el año. Los seminarios serán diseñados según la necesidad e interés de los participantes, incluyendo pequeños negocios y los procedimientos para un inicio exitoso e información para nuevos propietarios de vivienda. La mayoría de los seminarios serán ofrecidos en español, siendo que este programa educativo está al alcance de muchas familias de inmigrantes hispanos de primera generación, pero estos también estarán disponibles en inglés para las comunidades que no hablan español. ¡Muchos de estos seminarios también califican para créditos universitarios de la Universidad de Phoenix, así que los participantes pueden disfrutar y entusiasmarse por completar un seminario con créditos universitarios!

Adicionalmente, Liberty Tax Service está formando una alianza con el Distrito Escolar de Kansas City, Missouri (KCMSD) otorgando seminarios de educación fiscal y financiera a los padres de los estudiantes de primaria, secundaria y bachillerato durante el año. El primer seminario cubrirá Ayuda Federal Estudiantil (FAFSA), resaltando las oportunidades para las familias para tomar ventaja de la ayuda federal estudiantil, explicando el proceso de aplicación, y alentado a las familias a que soliciten los subsidios de FAFSA para ayudar a estudiantes calificados a continuar con su educación superior.

Estos seminarios y talleres también serán otorgados por profesionales de Liberty Tax Service con oficinas en el área de la Ciudad de Kansas que han obtenido El Sello de Excelencia en Servicios Hispanos de Liberty Tax, mediante un programa de certificación rigurosa proporcionado por el equipo corporativo de Una Familia Sin Fronteras. Este entrenamiento certificado asegura que las oficinas de Liberty están calificadas y entrenadas para proporcionar servicios a consumidores hispanos. El objetivo de ambas alianzas es el de desarrollar programas de valor para los padres, para que la asistencia y el interés en los programas se puedan expandir en ambas organizaciones, y para que los padres puedan aprender los valores del sistema económico en los EE. UU y puedan integrarse de manera positiva en nuestra economía convencional.

Estas nuevas alianzas son extensiones de la iniciativa hispana extraordinaria y de mucho éxito de Liberty Tax, Una Familia Sin Fronteras y de su Fundación que tiene el mismo nombre y juntos proporcionan programas educativos y seminarios sobre temas fiscales y financieros a las comunidades hispanas alrededor de la nación, gratis. Los cursos y los seminarios son otorgados en español (e inglés si es necesario), y muchos califican para créditos universitarios de la Universidad de Phoenix. Franquiciados y su personal alrededor de los Estados Unidos demuestran durante el año su compromiso mediante su apoyo, cumplimiento y entusiasmo respaldando la iniciativa educativa hispana de Liberty Una Familia Sin Fronteras que está encabezada por el Equipo Nacional de Programas Hispanos de Liberty. Debido a su integridad, éxito y valor la iniciativa educativa Una Familia Sin Fronteras de Liberty Tax Service ha sido respaldada por organizaciones sin fines de lucro, instituciones educativas y entidades gubernamentales a través de la nación, quienes muy rara vez trabajan con empresas privadas.

“Liberty ha centrado sus esfuerzos en asegurar que proporcionamos servicios especiales necesarios a nuestras nuevas comunidades de inmigrantes,” explica John Hewitt, CEO y Fundador de Liberty Tax Service. “Creemos que la información genera opciones y las opciones otorgan poder. Nuestra iniciativa y Fundación Una Familia Sin Fronteras fueron creadas para brindar específicamente estos valores muy necesitados a nuestros vecinos latinos a través de EE. UU.”

Is success about thought or action – or both? Is it instinctive or can it be learned?

For many business leaders, me included, this is a conundrum that can be argued successfully on either side. However, the one thing I’m sure of is that in order for a small company to stand shoulder-to-shoulder with a more mature competitor, it takes a great deal of leadership foresight, tenacious imagination, a little luck and a lot of hard work by everyone involved. Most importantly, for a “David-sized” company to become or overcome a “Goliath”, it takes careful implementation of a successful formula. This is where the power of organizational tuning steps in.

From my perspective, there are three key components to organizational tuning: 1) Creating a great place to work for all of our employees, 2) Ensuring value for our initiatives, and 3) Ensuring change readiness. These structural elements are not only commonsensical but are the vital building blocks on which successful companies are established. Why? Because they are all encompassing — tying together culture, value strategies and responsive action into one keen focus.

When Jackson Hewitt was a mere business consideration for me, I mapped out a list of my key drivers for starting a company. Naturally I wanted it to be successful – that was a given. But I also wanted to create something unique that did not theretofore exist within the tax industry. As I planned toward this goal, I continued to return to the three elements noted above, very simply because the tax industry was not necessarily known for its positive and creative culture. And, beyond providing the essential requirements of tax return services, the industry had a fairly static opinion of “value”. Additionally, as a whole, the industry was loathe to deploy change with any level of alacrity. As an entrepreneur, I found this an opportunity to create a unique service, supported by a creative culture that would ultimately provide us all, employees and clients alike, with an experience that was unsurpassed by any retail tax firm in the industry’s history. We accomplished this goal, and are well on our way to recreating our success with Liberty as well.

By striving to create this “best of breed” environment, business owners will quickly see the results in the type of people they attract to their organization and in the level of commitment derived from each individual’s association. After all, it is this very team that will carry and nurture the company through the changes that are inevitable. And it is this very team that must feel the value of the contribution in more ways than just monetary remuneration. It’s interesting to note that the concept of creating a nurturing work environment was nonexistent some 50 years ago, and it has slowly evolved into one of the most important strategies a savvy business owner can deploy.

Size does NOT matter!

The age of the entrepreneur is equally the age of opportunity. New ventures are opening their doors daily. Many of these new companies are well funded and others are struggling to achieve monetary sustenance. Most of these new endeavors will probably fail regardless of the amount of seed money. More than likely, their failure will not have been driven by the size of the investment or company, but more on their inability to properly read the business landscape and respond proactively in a timely manner.

The business landscape is forever reinventing itself and success in this environment of flux is dependent on a company’s ability to bend and flex with the tides of change. You don’t have to be a Goliath-size company to think like one, act like one and professionally present yourself like one. As a matter of fact, sometimes it’s easier to adjust to change when the company is smaller.

Speaking from experience, I’ve often found it much easier to make decisions and deploy tactics when there were just a handful of individuals involved, as it seemed easier to quickly systematize to any event literally on the fly. However, since the goal is to grow David-sized businesses so that their services are available to a larger marketplace, the challenge then becomes how to ensure rapid response without creating a “reactive” environment. Again, fine-tuning your organization pops-up as the most intelligent approach to securing action-driven processes that eliminate “shotgun” reactions. With David-size companies, ensuring that an orderly, clearly defined deployment process is in effect will help protect your investment in both people and economic power.

Of course, the most important caveat for my success is that I found an industry in which to thrive that I truly love. Finding the right business that meshes with your personality is vital to success in whatever industry you choose. Next is attracting and keeping staff that share in and contribute to your vision, enthusiasm and ideals. Then the fun begins because work becomes play, and success, in the minds of all the stakeholders, is unequivocal.

It’s not magic, just good business!

As much as we would all like to have that magic bullet that hits the target each and every time, reality disallows this fantasy. Good business is not magic. It’s about good judgment, (as good as is possible at any given time), being able to intelligently sort through the pile of options and possibilities that are constantly at hand, and settling on the “possible” as opposed to the “plausible”. Moreover, as oxymoronic as this may seem, good business requires both realism and idealism. The ability to acknowledge the mundane in order to accept that “this is what we have to work with” is tantamount to realizing it’s up to you to make the magic. 1.

This is a reality that successful leaders embrace early on in their careers. Instead of viewing the business environment in right and wrong values, why not synthesize them into one solution that opts for the best of both worlds? That is to say, why not integrate the more simplistic approach of conventional wisdom with the more complex analytical view and see what happens? I’m not advocating that good business is about throwing it all into a cauldron and seeing what “cooks to the top”. But I am professing that by creating a fundamental structure whereby your team has a good mix of conventional and analytical points of view, innovation is more likely to be the result.

Create the right structure and success will follow!

Creating the right internal structure requires something that is very difficult for many entrepreneurs…and that is giving up ego. Let’s face it, successful people by nature are typically ‘Type A’ personalities who believe in their abilities and opinions with a vengeance. Otherwise, they could never have taken the risks needed to surge to the top. While they seek talented people to join their team, they also subconsciously want these talented people to agree with them as much as possible…we all do! However, this is the sure path to failure.

In my years of experience, I’ve watched my colleagues hire staff as though they were going through a department store trying to purchase a tie. They pick and choose, reject and discard and ultimately, select or settle on an individual. Through my years of team building, I’ve found it to be more advantageous to keep my options open so as not to create an “either / or” situation. This is entirely too confining for me. I like to look for a third approach – and if need be, a fourth. I always try to envision how an individual could complement the overall design of the company or team and focus on those attributes to support an invitation to join my team. Sometimes, the “fourth” approach is whether the individual might be instrumental in creating a new approach heretofore unknown. That is to say, thinking out of the box can go a long way if it is integrated into the right atmosphere.

Derailing organizational complexities with focus on execution!

If you’re looking for a quick and dirty “Ten Ways to Succeed in Business”, I advise you to set that thought free. They don’t exist!

In business, as in life itself, there is a level of randomness to which we must all be able to adjust. This is very simply a fact of life. However, we can control how we structure our business so that choices, decisions and successes are not just random occurrences. I have long been a proponent of keeping processes simple and eliminating the organizational hierarchy that seems to creep in once a company becomes successful.

Organizational complexity has been defined in various ways, with some definitions being fairly “complex” themselves! However, given that I am an advocate of simplifying the business process, I define organizational complexity as the process of introducing a number of differing elements into your business structure such that it becomes difficult, and often, impossible for them to connect. In my opinion, this is counterproductive as a company’s capacity to innovate for success is only as good as its weakest link. And, with a complex structure that does not interconnect easily, how do you know which links are vulnerable?

Research has shown that organizational complexity breeds negative behavior because there is no cohesion. Often, disagreement is expressed through “grumblings” or passive-aggressive behavior. This “secreted” animosity will ultimately destroy any sense of team commitment or sense of belonging, and will impair your ability to focus on execution. That’s why it is so important to build internal cross-unit networks inside your organization to combat the cancer of organizational complexity and ensure that the team maintains focus on execution. With David-sized companies, this is imperative as there is little margin for error due to miscommunication or lapses in action.

High performance work system versus command and control!

Long before the High Performance Work System (HPWS) became a vogue managerial approach, I have always maintained that “command and control” work environments destroy creativity and hamper innovation. In fact, all of my companies have been built around a rather unorthodox approach to hiring. While we may post specific jobs to be filled, we also interview year round with individuals who have qualities that we feel would contribute to the team. Everyone in the company is encouraged to be on the lookout for talent – not just to fill an opening, but to join the team in whatever capacity the individual’s expertise might provide.

Within my companies, we do not create job descriptions per se, but work to place individuals with specific skills in situations where they can develop and create their own niche that will add to our success. We also encourage employees to move about within the company if they find that their skill sets can contribute to the charter of another department. I found this approach to be more satisfying to the employee, which in return, boosts our client’s opinions of the company. Enthusiastic employees will not only bring other success-driven candidates to the fold, but they will contagiously pass on their appreciation to the client base. I believe there is a strong correlation between the level of employee satisfaction and corporate growth such that I try to focus on employee “mental health” in order to best judge our level of client satisfaction.

Incentivize your stakeholders!

For years, the word “incentive” seemed to only relate to sales professionals and executive management. What we’ve learned through the years is that if it works for these groups, think about the affect to the bottom line if the entire company was incentivized. For David-size companies, using incentives to complement salaries is an excellent way to recruit and keep good people. After all, our goal should be to turn our companies into “talent factories”, filled with vitality, ingenuity and “fire in the belly” stakeholders.

I have built my success by ensuring the fundamentals were in place, i.e. creating a formula that works and filling my resource coffers with individuals from all walks of life, each contributing diverse energies and expertise to the mix. And, under no circumstance should you allow bureaucratic processes to creep into your space as they will only serve to grind creative execution to a halt. Bear in mind that whether you’re a David or Goliath-size company, execution diffusion is a rifle shot to the heart of your success.

There is no magic potion to make a company successful. And, there is no universal approach that guarantees success. But there is one guarantee for failure and that is to ignore the importance of creating a solid structure — one that is built and supported by the right individuals. Make sure you tune your organization from the beginning and you’ll find that, while it may not always run like a well oiled machine, it will ultimately cost you less in repairs throughout the years.

By keeping my organizations fine-tuned, I have been able to not only be successful, but to share my success with my company’s stakeholders. Frankly, I can’t think of a better feeling at the end of the day than being able to acknowledge this reality!

References:
1Thomas A. Stewart, Editor of Harvard Business Review, “Good Business Judgment”, June 2007

Readings in Managerial Psychology (4th Edition) by Harold J. Leavitt, Louis R. Pondy, David M. Boje

Wouldn’t it be great if businesses could just create the right plan once and never have to deal with it again? And wouldn’t it be great if the moon really was made of cheese?

Unfortunately, neither one of these fantasies exist. Transformation and evolution of thought and business practices are a reality we all need to accept. The real question is how to successfully transform our businesses to keep up with economic stresses without giving up our competitive advantage.

At a time when the economy is forcing companies to tighten up and mark a clear course through somewhat unfamiliar waters, many an entrepreneur has needlessly pursued “change” with the hope that it will keep them afloat. This is not to say that change should not be a consideration. But far too many people go for this obvious approach instead of taking the time to review what already exists and understand why it might be failing. Many times, the current strategy is salvageable, and for all intents and purposes, solid. It’s simply just not being deployed smoothly. So why do so many business owners feel they have to reinvent the wheel in an effort to compete successfully? Because the grass always seems greener on the other side. After all, we know the current plan isn’t working so why not try something new. One of the main reasons so many of us are tempted to take a ride on the “change wagon” is because sometimes, it just seems easier to dump the old and embrace the new!

In my opinion, this is a pretty drastic approach to coping with hard times. As a matter of fact, smart companies typically work to seamlessly adjust their strategies, on the fly, while maintaining key legacy elements of their business formulas — assuming they’re on the mark and of value.

Re-create versus Procreate

For many of us, the big conundrum is: Should we create a new direction based on new strategies, perhaps emulating competitor direction; or should we use the principles and ideals of what we’ve already created to spawn a new breed of intelligence – sort of like “formula procreation”. Frankly, I’ve always opted for the latter.

Over the years, I’ve found that by using the fundamentals of our proven strategies and processes already in place, I’ve been able to literally give birth to a business formula that has yet to fail. The key is to ensure that, as you nurture and mature the formula, it’s influenced only by inputs that are current, systematic and relevant. This approach has allowed me to focus on evolving our formula so that it continues to support our business goal, regardless of any economic or competitive influences. At the same time, our Franchisees have been able to rely on a proven, relatively fail-safe business process that is based on my 39-plus years of experience in the industry. I realize this claim may sound a bit vain. But the truth of the matter is that both of my companies, Jackson-Hewitt and Liberty Tax Service, have broken industry growth records, with Liberty growing at a rate equal to the sum of both of its competitors! So I humbly submit that I have some foundation on which to bank these claims.

As an observer of business practices and an advocate of systematizing everything I can, I’ve noticed that as some companies attempt to deal with their hypercompetitive environment, they frequently overlook latent opportunities or ignore areas of obvious potential, instead focusing on “change” as their salvation. It seems like the first impulse for many companies threatened by hypercompetition is to needlessly re-engineer just about every business process they have in place. While process re-engineering may be needed in some cases, great care should be taken on how it’s performed. Many times, re-engineering efforts include employee cuts which often promote employee attrition because they feel the culture is inconsistent or just plain chaotic.

What so many businesses forget is that once your shared knowledge-base starts walking out the door, your learning economies of scale are negatively affected. Re-creating this knowledge is not only time consuming, but expensive in that so much goes into forming a shared intelligence team. Moreover, re-creating this intelligence can be risky in that it involves an extensive amount of recruiting time and dollars, not to mention the time it takes for the average new hire to ramp-up to speed.

My advice is to never position yourself to have to re-create your intelligence. Keep it nurtured and in tact so that it can “give birth” to your future knowledge-base by introducing new, similar-minded professionals into the mix who will undoubtedly bring innovative ideas to the table.

With my first company, Jackson Hewitt, I was fortunate to have created an outstanding knowledge-based team, most of whom joined me as I started the new company, Liberty Tax Service. Many of our subsequent new hires, who have helped grow Liberty to its current state of success, were brought in by the original intelligence team. The original stakeholders understood what the company needed to be successful, and therefore helped grow the company by attracting and bringing in the right “breed” of talent. As we’ve grown the company, the new stakeholders have continued with the recruiting process, ensuring that there is a constant feed of fresh intelligence entering our knowledge-base bank.

Without question, I believe that the dynamic exchange of information is vital to a company’s health and competitive edge. Without this fluid process, a company’s intelligence cannot be kept updated nor can it procreate for inventive opportunities. For this reason, ensuring you’ve built, or are building, a knowledge-base team that is capable of sharing, growing and adapting to a company’s evolutionary process, is vital to your success.

The emperor is naked!

Regardless of size, a company’s transformation from ordinary to extraordinary must come from within. The process to accomplish this must be understood by all of the stakeholders, and it should be systematized as much as possible to keep it simple and efficient. As my companies have grown, we have had to work harder to ensure that we do not lose the ability to share intelligence throughout the stakeholder community. For this reason, we have created integrated departmental communications so that perspectives do not become stagnant. After all, who better to declare the “emperor’s naked” than someone with a fresh pair of eyes who isn’t “married” to the idea in question! By mixing different individuals with differing experience and expertise, we can better eliminate the tendency to hold steadfast to a concept that we just might need to divorce.

Integrated communications and shared intelligence have evolved from a marketing concept to fundamental rules for companies that want to transform themselves into thriving entities, capable of sustaining through good and bad economic times. Creating an atmosphere within your company that promotes shared intelligence and applauds idea interaction will help in keeping you north of reactive thinking. Very simply, information is power and it will save you money in the long run.

Good ideas don’t grow on trees!

An “idea tree”, what a concept! While we know this is nonsense, some business owners have a tendency to overlook the value of good ideas as if they really do grow on trees.

While not necessarily a horticultural miracle, I do in fact have an excellent “idea tree” — the stakeholders in my company. I have experienced first-hand the benefits of planting the seeds of thought within my teams and the results of creating a nurturing environment that will allow them to grow.

It’s important to always maintain focus on the simple fact that all business is about people. The relationship between people management, service quality, corporate culture and their impact on the bottom line cannot be ignored. Whether we are providers or consumers, the human element is the most important piece of the puzzle for success. While numerous studies have been done about high performance work practices, the bottom line is that the return on investment to create and maintain this type of environment is quantifiably substantial. As a matter of fact, studies have proven a definite link between investing in employees and stock market performance by those companies savvy enough to embrace this practice. Use your team to stay ahead of the competition. Doesn’t it make sense that a team full of eyes, ears and brains can see more, hear more and create more than just one person, regardless of how exceptional they may be? (Or think they are?) Competitive advantage requires the efforts of the entire team. So next time you hear that “great idea”, appreciate the fact that it’s coming in to you and not to your competitor!

Down for the count.

Finally, don’t kill innovation in your business by not having time to acknowledge it. As business owners, we struggle with “time”; time for meetings, time for operations, time for budgets, time for business plans – you know the drill. But shortchanging time for your stakeholders is a guaranteed way to lose intelligence momentum and cultural growth — all of which equate to dollars. Always remember, your best resource for success is your team of stakeholders and the strengths they bring to the table. This is your true competitive advantage!

References: How Your Business Can Create, Manage and Profit from Intellectual Capital; Professor Colin J. Coulson-Thomas
The Human Equation – Building Profits by Putting People First; Jeffrey Pfeffer

We all know that change is inevitable. And we all know that human nature has a tendency to fight it. Status quo can be so comforting; and understandably since any change intimates having to deal with an “unknown”. While it does indeed take a certain type of personality to feel comfortable with change, the reality is that as a company leader, you do not have to do this alone. Speaking from experience, having led two successful franchise businesses, I can attest to the fact that successful corporate transformation must start first from within, before it can be appreciated by the market at large. That means that in order to be successful at transforming your company, you must first understand that this goal covers a broad spectrum of business activity aimed at improving performance, and of course, productivity. And I can guarantee that none of this will happen through one single person’s efforts. Just as it is said that “it takes a village to raise a child”, no successful company exists based on one individual’s activity. Granted there must be a leader, but a savvy leader also recognizes that corporate culture and stakeholder involvement is paramount to achieving successful organizational transformation. These are the fundamental anchors of my simple survival guide for corporate transformation.

Having been a Franchiser for the majority of my professional life, specifically within the tax industry, one might think that it is pretty much a “cookie cutter” business model. But this is far from fact. Just as technology changes, so does the client expectation and the business environment, as well as their demands on corporations. Realistically, those practices that might have been considered standard operating procedures at one time, now require internal evolution to meet the needs of this world-wide transformation. When I started Jackson Hewitt in 1982, the business climate was quite different than it was when I started Liberty Tax Service in 1997. Technologies had advanced, staffing profiles had changed, and even the tax industry and the IRS were morphing into a “brave new world”, so to speak. Along with these changes, the franchising model also had to transform in order to provide the best work environment for our employees, and the best business practices and opportunities for our franchisees, who in turn, would then be able to provide the best service to their clients.

It’s true that many companies approach transformation through downsizing, layoffs, shifts in assets and resources, or even a combination of these. However, the way in which an organization is transformed, and the way in which that transformation is managed, depends almost exclusively on the style of leadership and the culture of the organization. A leader must equally appreciate the task and the people on whom he/she is relying to achieve this task. That is to say, success in leading a corporate transformation directly relates to a leader’s ability to balance these two intrinsically related dimensions.

With Liberty Tax Service, we have continued to grow and expand our offices and franchisees consistently, even during a time in which many consider our economy to be somewhat challenged. Our competitors, on the other hand, have proven to do the opposite. While they are closing offices, we are opening hundreds more a year. Why? Because, at Liberty, we have created a culture that strives to maintain clear corporate values and direction. Most importantly, we believe it is incumbent on us to share these values with employees and franchisees so they can properly engage in our internal transformation. Leaders must always remember that sustaining a culture of change requires consistency and personal investment. Without these, credibility is challenged resulting in constant organizational chaos. After all, there is a big difference between ‘transformation’ and ‘perpetual reorganization’.

Sometimes it’s tough to keep your entrepreneurial spirit at the forefront. And yes, sometimes it is easier to just make a day out of going through your email. Keeping your creativity levels high while keeping an eye on “what will happen and what will change” in your industry, and the effects these two intangibles might have on your company, is not only challenging, but it can be exhausting. But, buckle-up, because this is what you chose when you decided to become a successful leader!
In our industry, we are always in transformation mode. Tax laws change yearly and restrictions abound in synch. So, a process that might have been successful one year, may easily prove to be inadequate the next. Successful leaders must always have a broad view of the business landscape so they can remain in tune with the needs of an ever changing environment. Diversity has played a major role in the transformation of businesses across the nation, and those companies that understand and embrace this emerging influence are going to rise to the top every time. (We’ll discuss this extremely vital piece of the transformation equation in another article.)

Essentially, successful transformation requires that leaders build-in “unpredictability” into their strategic focus, and accept the reality that adapting at break-neck speed should become the norm within your company’s and your stakeholder’s processes. This does not mean forsaking planning; but it does mean that the spirit of experimentation should be integrated as part of your decision process. While you may occasionally make a mistake, you will also have learned exactly what went wrong. It is important to bear in mind that the most damaging property any leader can embrace is maintaining a steadfast allegiance to conventional thinking. By virtue of its definition, transformation often requires out-of-the-box strategies, and only leaders who ‘get it’ will be able to claim success in their industry.

Bottom line – every successful leader’s “transformation survival guide” should include the basics: know the business you are in; apply your internal collective brainpower; and finally, extraordinary leaders stay imaginative and resourceful. Equally, boldness should be incorporated into a true leader’s DNA. This should not be confused with brashness. Instead, it means that “nothing is unreasonable to be thrown on the table for review and consideration”. Then, you bring in experience, expertise, knowledge, foresight and processes to create well-thought out implementation tactics.

Diversity in the workplace has been discussed by every business leader at some time or another, and certainly, it has long been a topic for authors and politicians. But, as much as it is bantered about, I often wonder if everyone really thinks about how diversity actually affects their leadership skills and the future view of their businesses.

For years, the U.S. has been known as “a melting pot”, typically singling out New York City as the main “melting pot of America” because it has drawn so many people from so many different cultures – all hoping to capture that American dream. We were comfortable with this description of “America” as it spoke to its population in terms of the many ingredients required to flavor a “melting pot”. But I doubt that anyone ever really thought about what a “melting pot” actually intimates. Think about it — one pot, with lots of individual flavors and ingredients, all “melted” together to create one color, one texture, and ultimately, one flavor. Frankly, this does not sound very appetizing to me. On the other hand, the new nomenclature of “salad bowl” when referring to our multicultural population is much more appealing, and in fact, is more realistic and even healthier, if you will, if you view the significance of this expression. In a “salad bowl”, each ingredient retains its flavor, color and texture, each complementing one another and enhancing its overall nutritional value. So should it be for diversity in the workplace. Companies that incorporate multicultural ideals into their business plans are always going to be the leaders in their field because they will be the recipients of ideas and influences that are more far reaching than those that are needed for status quo business environments. After all, the true meaning of diversity is quite conceptual in that it is, in reality, an exploration of differences that ultimately celebrates individuality, while embracing the unique experience it brings to the workplace and business in general.

In the past, our immigrants were expected to assimilate with their new world, which meant that they not only had to learn the language and customs, which I believe is vital for anyone living in any foreign country, but they often were expected to give up their culture as well. That is to say, clothing and holiday celebrations were expected to revert to that which is accepted as the norm in the U.S. They were expected to look, dress and even celebrate in synch with our Anglo-Saxon roots. Customs and values that were so intrinsic to their culture were literally expected to be moved aside and/or just disappear altogether. It wasn’t until the mid-1980s that large companies such as AT&T, Sears & Roebuck and yes, even Coca Cola, started to view the makeup of America in a distinctly different way. They started to view their ethnic consumers in a new light and realized that the importance of understanding the psychographics of these important ethnic communities was going to be necessary if their companies were to remain leaders.

This realization brought to the forefront the commonsensical approach of using demographics to determine the attitudes and tastes of a particular segment of a population. While all of this high-level thinking is important, especially as it relates to consumer behavior and their buying power, companies still did not get the actual importance of what all of this was revealing. Very simply, companies needed to open their doors, and in some cases, their hearts to “other” cultures and realize that the makeup of their staff, as well as management teams, must also reflect that of the ever-changing makeup of our new business environment.

Our society is far more diverse today than it was in the heyday of mass marketing when the previously noted companies were scrambling to stylize their messaging to meet the cultural nuances of each diverse market segment. For this very reason, through my years of leading successful companies and keeping an eye on trends versus realistic opportunities to grow my business, it was of great importance to me that both of my companies, Jackson Hewitt and Liberty Tax Service be among the leaders in understanding and embracing diversity in the workplace, that our employees and Franchisees also be educated in this corporate culture, and most importantly, that we not just react to the need for diversity as an afterthought.

In today’s business environment, there is a great deal of lip service given to diversity efforts as proclaimed by many companies, both large and small. Unfortunately, very few of them do more than hire a few “minorities” and then label themselves as a diversity-sensitive company. Another aberration that I have noticed as of late, is that some companies go to great lengths to create a Diversity Department with the sincere goal of satisfying the importance of diversity in the workplace and community, yet they have a tendency to bring in leadership that in no way resembles the multicultural environment they are attempting to create or reach. In spite of the numerous articles and books written about diversity, many business leaders continue to confuse this extremely vital piece of a successful company’s strategy with the act of simply creating rules to eliminate discrimination and racism in the workplace. While I do not take light of any biases, and without hesitation can attest that neither of these attitudes will ever be tolerated at any time in any company I lead or have led, diversity in the workplace has gone far beyond these fundamental issues. Instead, successful leaders must make diversity an all-encompassing strategy that should be at the core of their internal intelligence practices.

For this reason, when we created the Diversity Programs Department at Liberty Tax Service, we researched the market segment that we believed most needed our direct attention in terms of our core expertise, and how we could utilize this to build new business for our Franchisees while also providing a valuable service to the community. We decided to focus on the Hispanic community since it is the fastest growing immigrant influence in the U.S. today; and these new immigrants are in desperate need of information that will help them successfully enter into our mainstream economy as productive and contributing individuals. Once this was decided, we set about defining leadership and staffing needs that would make the impact our business plan required. I wanted to ensure that Liberty’s program would speak to the Hispanic community properly, as failure in this important effort was simply not an option. That said, we went about building a leadership and team that includes numerous Hispanic ethnicities, all of them fluent in Spanish and all of them community-driven. But, it’s not just a language issue; it is understanding the culture that truly makes the difference. I can guarantee you that the Hispanic Services Team at Liberty can speak a great deal more effectively to the Latino community than I can because, since they are all Hispanics, they understand the culture and realize that things we say in English do not have the same impact if we simply translate them into Spanish. [More on Liberty’s unique Hispanic initiative in another article to come.] The key with any diversity effort is to understand the value and importance of a diverse group’s contribution as employees, and in my case, Franchisees included, as well as consumers.

According to a breakthrough study considered by many business leaders as the benchmark for future business thinkers, Workforce 2020: Work and Workers in the 21st Century, by Richard Judy and Carol Damico, they described diversity in the workplace as much more than just zoning in on male/female selection or the color of one’s skin. Diversity in the workplace has become a broader more inclusive practice that requires integration principles and collaboration of ideas. Successful companies are keen on this perspective and successful leaders have learned to celebrate the priceless dimensions contained within each individual regardless of race, creed, disability, gender or color. In other words, it’s not just about a “kumbaya moment”, it is about an inclusive corporate culture that will thrive if nurtured with the influences and collective intelligence that only a multicultural environment can produce.

Essentially, regardless of race or ethnicity, no culture is homogenous. Successful leaders realize this extremely important reality and have learned to work with these many different influences in order to pull the best of the best from each individual for the betterment of the company and the communities they serve. One thing, however, that all humankind has in common is our mutual need to be understood and respected!

[Fifth in a series of articles on managerial and company building successes by John Hewitt.]

Have you ever heard of a successful company with so/so passion? Have you ever heard of a successful leader with mediocre ambitions? How about an athlete that’s ambivalent about winning? Of course not! It takes a true “zealot” to be a winner and a real “fanatic” to build a successful company. Fanaticism is the contagion that all successful leaders should have in order to nurture “fanatical” employees, and in my case, franchisees as well. Success can only be accomplished by a group force moving in synch with an ideal; and at Liberty Tax Service, our fanatical ideal has always been to be extraordinary!

While we typically hear the word “fanatic” often used in a negative sense, as in utilizing unreasonable efforts to achieve a goal, a fanatic is essentially a person whose enthusiasm or zeal for something is extreme or beyond normal limits. Take Guy Kawasaki, for instance. It was his zeal for the Apple product line that created the concept of “evangelization” as a strategic tool for success. Does anyone really think for a moment that Guy was not fanatical about Apple’s product line when he was their chief evangelist? True visionaries live to be phenomenal and to create incredible products and services – nothing less is acceptable. As I shared in a previous article, transforming your business from mediocre success to extraordinary requires the support of your internal intelligence, i.e. your staff and team. So, the first step for any business with goals to succeed beyond the normal boundaries is to follow some fairly basic rules of thumb to build your team of fanatics.

First and foremost, successful companies listen to their customers, and yes, their employees as well. Often, business leaders and companies think they know what their clients want, think they know how to satisfy their client’s needs, and think they know how to keep their clients happy and committed to their service. Likewise, corporations often think they know what motivates their employees (and franchisees), think they are doing what is required to keep them motivated, and think they are creating a cohesive force committed to the company’s success. Why is it then that so many of their clients and employees are not out evangelizing about the excellence of their experience with the company? Very simply, there is a tremendous difference between hearing someone, and listening to them. Listening requires that we be completely open with disengaged defensive mechanisms, and that we truly absorb the information as realistic and pertinent – not just as an afterthought of being polite. That said, in order to know what your clients and employees need and expect, and how best to satisfy those requirements to achieve evangelical heights, there is no other way than to listen and heed their messages. If one of my staff members or franchisees is going to take the time to share their needs, suggestions and expectations, it is incumbent on me and the entire Liberty Tax team to listen to their constructive inputs and try to understand how they can be incorporated to provide change and improve our service. Naturally, all companies will experience the 80/20 rule where you will likely have 20% of your customers or staff providing 80% of your company’s negativity and complaints. For this reason, I always focus on the terminology “constructive” when I speak to the need for suggestion-driven action. By “constructive” I don’t necessarily mean that the suggestion might always present the best approach. It should, however, be delivered with the sincerity of truly wanting to help make a difference in a positive way. I have learned through the years that staff and franchisees who are truly successful and think in terms of excellence, rarely have time to complain. However, they do take the time to provide advice and constructive ideas that have helped my companies, Jackson-Hewitt in my previous life and now Liberty Tax Service, reach the heights of success we have enjoyed through the years. As a matter of fact, it is because of our internal and external fanaticism to become the most extraordinary tax service in the “universe” that Liberty has enjoyed the singular distinction of being the fastest growing tax company in the industry’s history!

In a recent article [Transforming From Within ~ A Simple Survival Guide], I emphasized that a savvy leader acknowledges that corporate culture and stakeholder involvement is paramount to achieving successful organizational transformation, which in turn, will provide exceptional results. That’s why, it is equally important that your internal intelligence also be zealots in order to continue the tsunami of positivity a company must possess in order to be worthy of being evangelized by its clients. What good does it do a client or staff member to offer constructive inputs, or complete quality service surveys if all of these efforts are only going to ultimately fill your paper shredders? Soliciting inputs is simply not your silver bullet to becoming an extraordinary company – there’s a follow-up piece that must be introduced. That’s why the second most important focus for any successful leader who wants to build a company of success-driven fanatics should be on affecting change for improvement based on the constructive inputs received. This fact cannot be iterated too often. A successful leader must be able to respond to improvement opportunities with expediency, and typically, he/she will receive these opportunities directly from their customers and/or internal stakeholders.

Sometimes, affecting expedient change means you have to throw out the rule book. Do not mistake this statement to mean you should be in constant reactive mode with no control mechanisms in place. What it does mean is that successful leaders are always in “response mode” so they can quickly embrace bold ideas before the competition even realizes they exist. Fanatical leaders lead from the forefront. Fanatical leaders are always aware of the risks and are capable of inspiring their teams to move forward in unison and with confidence. And finally, fanatical leaders only promote things great things! For this reason, communication is the third most important focus for a successful leader. After all, if you are unequivocally committed to being extraordinary, you must communicate this message effectively and continuously so that your team(s) will be able to follow in synch. Best of all, they will draw others who are equally committed to the ideal. As I’ve shared before, building a strong and successful company depends on the strength and enthusiasm of its leadership and internal intelligence. In my case, zealot employees and franchisees have brought other like-minded additions to the mix. And together, Liberty continues to break industry records year after year.

So, once you’ve listened to your clients and staff, and decided on a plan of action, let them all know what you’re doing and, most importantly, why. Then, don’t forget to communicate the results. You can’t build zealots if they don’t have the tools to thrive – and communication is one of the most vital tools in your arsenal for success.

Establishing your objectives and “walking the talk” will always be a requirement if you are serious about building a company that is fanatical about success and service. The reality is that if you expect less than exceptional performance from yourself or your staff, you are assured to receive exactly that. To build your fanatical team, you must have a clear vision of what is expected and you must share it publicly.

Just as Apple wanted to “change the world with breakthrough technologies”, fanatical leaders and their companies must have equally lofty goals. Besides affirming to be the #1 tax company in the universe, we created a very simple Mission Statement that is Liberty’s mantra: SET THE STANDARD! IMPROVE EACH DAY! HAVE SOME FUN! … and we are fanatical about this commitment!

For many business leaders, the great conundrum has always been how much can I effectively delegate and how much empowerment can I provide before I lose control of the quality of the fulfillment. In order address this intelligently, perhaps we should begin by defining the fundamentals of delegation first, and then move into appropriate empowerment as associated with each delegated task or responsibility.

There is an art to delegation. Savvy leaders realize this and work diligently, as any artisan would, to expand their skills in this area. Understanding delegation practices allows the successful leader to associate appropriate responsibilities or tasks to the appropriate individual who is trained and capable of its successful fulfillment. For example, it is highly unlikely that any intelligent or responsible leader would delegate year-end audit reviews to anyone other than someone whose background and expertise would allow them to actually be able to do the job. Using myself as an example, this approach would make as much sense as my being delegated the task of painting or sculpting art suitable for the Louvre. This is simply not within my area of expertise; and no matter how hard I may try, and in spite of how sincere my efforts may be, I will likely never meet the expectations as fulfilled by a Michelangelo! As outrageous as this association may sound, so often are the types of demands and expectations some managers and leaders often make on unqualified staff. That being said, it is not by any means the act of delegation that is at fault; but rather the “art” of the action is where the error exists.

In order to create an atmosphere of successful delegation, savvy leaders must first ensure that they hire internal intelligence capable of implementing-to-expectation. The onus is on the leader to ensure he/she understands the importance of “artful” delegation, and has set the stage accordingly, in order to build a thriving company. Savvy leaders create an atmosphere in which there is a straightforward contract with each person who joins their company, an unambiguous agreement to perform to excellence, and clear messaging that nothing less is acceptable. What does this mean? It means that every function within the company, from Building Maintenance to Receptionist, from Managerial to Departmental staffing, from Executive team to the CEO, and in my particular case as a tax service Franchisor, from our family of Franchisees to their staff — we are all in this together and must work in synch in a cohesive manner in order to accomplish success. A successful company is essentially a “healthy organism”, one that continues to grow and thrive ONLY because its health is nurtured and maintained. If there is a breakdown in any part of the organism that creates this “body” we call a corporation, the disease of failure contagiously takes over. After all, business leaders and internal intelligence (i.e. employees and Franchisees in my case) are the hosts of this great organism, and therefore must ensure that they maintain its health through innovative and supportive practices so that the body that is “the corporation” may flourish.

As I look introspectively, as well as outwardly to many of my fellow corporate leaders, I realize we all have a tendency to think, at one time or another, that we are indeed “Atlas”, and that we can, and often are expected to, hold the weight of our corporate worlds squarely on our own shoulders. While we all do indeed hold the responsibility of successful direction of our “worlds”, success, as I continuously proclaim, is unequivocally dependent on the efforts of the whole. I will not insult your intelligence by boring you with more well-worn adages such as “no man is an island”, and so on; nevertheless, I will repeat the fact that no company has ever truly been successful because of one person. One person may have had the idea and he/she may have had the leadership skills – but these corporate leaders were smart enough to bring in the right people to fulfill that strategic vision. With over 42 years in an industry that has provided me the pleasure of leading two very successful companies, both of which have broken industry records over the years, my current company, Liberty Tax Service, is considered to be quite an anomaly in its ability to grow at an unprecedented pace in the tax industry’s history. However, I am confident in proclaiming that I did not do it all on my own. This is why, in my opinion, delegation sets the stage that is vital to the encouragement and empowerment of a team that will ultimately reach the heights of success that began as only a “vision” within a visionary’s dream!

Delegation allows internal intelligence to work through and solve problems that you, as a leader, may not have had the opportunity to see. After all, no matter if your company is a “David” or a “Goliath”[discussed in a previous article], as a leader, you need to focus on the big picture and build a team that will support and enhance the foundations of the strategy. And, for those of us who, heaven forbid, think we ARE on top of all situations, it is important to remember that proper delegation allows innovative thinking, which in turn, creates new approaches surrounding ideas or solutions pertaining to issues, or potential issues that we, as corporate leaders, may not have had the time to even realize existed. The role of a successful business leader is to focus on the future and the opportunities it provides. By virtue of being corporate leaders, and I say this to anyone leading any company at whatever size, big or small, we have accepted the responsibility to ensure that the company’s internal intelligence is of the highest quality to ensure its success. In my case, this is what our employees and our Franchisees depend on me to do, because both are dependent on one another. Liberty cannot be a successful company without exceptional employees and Franchisees alike. So we continue to work toward achieving the symbiosis that this reality requires in order for Liberty to continue in its path to becoming the “greatest tax company in the universe”, the corporate mantra I explained in a previous article to be the revered chant in our company.

That said, it is important that we understand the essential components of triumphant delegation, so that we can follow this discussion with the all-important “empowerment ingredients” that are so essential to this formula for success. Learning to delegate may seem like more of a chore than a complement to success by some; but it is indisputable that savvy delegation dramatically increases the amount and quality of work, not to mention employee satisfaction. In fact, delegation is simply common sense….but it takes work.

I realize that attaching the words “delegation and work” in one statement may seem like an oxymoron; but to delegate successfully, you must deploy a great deal of effort. Smart leaders ensure that, as delegators, they (and their management staff) fully understand the task(s) at hand and are very clear about the expectation for fulfillment so that they can select the appropriate individual that has the skill sets and/or potential to victoriously complete the tasks and responsibilities that have been assigned. Communication-to-expectation that accompanies successful delegation is not always something that comes naturally for many people. That’s why I refer to the ability to delegate successfully as an “art”, because those who are accomplished at delegation have worked on this craft, viewing it as an essential element of their managerial and corporate growth. In my opinion, this is, in fact, an integral function of a great leader. However, delegation is also a skill that can be honed into an art, and should be part of all leadership growth practices. [More on this in an upcoming article.]

Unsurprisingly, the toughest part for many leaders and managers is being able to shift the decision-making authority that must ultimately accompany delegation. It is important to realize that responsibility assigned to any staff member, at whatever level of the company, without granting authority to those same individuals who will be rated on their successful fulfillment of a delegated assignment is not only incongruous, but can be calamitous to the success of the overall organization. This practice serves to only breed discontent and lack of emotional engagement by your stakeholder team. For many companies, this lack of attention to internal satisfaction mechanisms have been directly tracked to their eventual downfall, as the corporate culture was viewed as restrictive and unsupportive. For this reason, it has always been important to me that I build a company that allows its internal intelligence to be exactly that — intelligent. And by doing so, I have had the pleasure to work with many professionals to whom I can personally attribute as having been instrumental in the success of my companies, including the thousands of Franchisees with whom I have had the pleasure to work over the years.

There are simple rules of thumb that should be followed when delegating a responsibility. None of these are “evangelically inspired”, but are simply commonsensical approaches to a commonsensical practice. As a successful leader, I believe these simple rules should always be in practice in your organization for appropriate delegation practices:

1) As previously stated, delegators must understand the assignment and match it to the appropriate individual for fulfillment. This is their responsibility and it is important that they realize its importance. As a leader, you are responsible for ensuring that you have built a culture within your management team that requires strict adherence to this primary rule.

2) Communication-to-fulfillment is without question. If employees are uncertain of what they are supposed to provide at the end of the day, so to speak, then how can they satisfy the expectation for successful fulfillment? This communication should always include deadlines and specific deliverables.

3) Ensure you have created a culture wherein the individual being assigned a project feels comfortable in asking for more detail and, in some cases, perhaps guidance, i.e. a level-leveling approach between management and employee. Remember, your goal as a leader is to create other leaders, and you can’t do this if you don’t provide an environment conducive to open communication without repercussion.

4) Monitor results. This requires an open feedback loop so that expectations can be reiterated if necessary, and an open interface between delegator and delegate is encouraged. This is not only a very common team building exercise, but it is a very simple and savvy project management technique.

5) Do not focus on the process but always on the results. This statement just happens to be one of our core principles at Liberty Tax. We acknowledge that everyone may have a different route to the finish line. As long as they arrive at the finish line by the designated time with an eye on excellence and integrity, we make it a principle to refrain from forcing the route they may take to get there. At Liberty, our goal is to move as far away from micromanagement as is humanly possible!

Enough about delegation, for now, I think I’ve made my take on this subject fairly clear. Let’s move on to the all-powerful “empowerment”.

Empowerment allows your internal intelligence access to the necessary stepping stones to reach the next level of success for themselves and your company. In today’s technologically-rich environment, company leaders sometimes forget that their staff is not just a new “software release”. They are not mechanical and/or programmed beings that intellectually or emotionally function within a contained environment, programmed to be effective, supportive, constructive and content. A company very simply cannot build internal evangelists, who will proclaim and exhibit the superiority of a company or its services internally and externally, unless it acknowledges this reality. Smart leaders understand that they cannot lose site of the humanity within their corporations that is fundamental to each individual that supports the company’s success. Unfortunately, this acknowledgment often seems to be lost by so many companies as they embark on their road to success. That is why empowerment is so important to building a prosperous organization, because it incorporates the needs and intellect of a thriving support system.

So why are so many business leaders and/or their management staff afraid to empower their staff members? By definition, empowerment is the process by which an employee is enabled or authorized to think, behave, take action, and control work and decision-making, theoretically, in an autonomous environment. I believe that the sense of “autonomy” is the key detriment driving many leaders to shy away from this very powerful strategic business tool.

But what we, as business leaders, must realize is that empowerment allows our team members to take control of their own professional destiny and to do so through the success of their inputs and contributions to the organism to which we have referred herein as “the corporation”. We may fear staff-level empowerment because many of us are afraid that someone might make a mistake; and if we had not empowered individual thinking and action, this would never have happened! But think about the adverse effect of disempowerment. In my mind, stagnation is the true threat of death for any company. A business simply cannot survive, and certainly not prosper, if there is no sense of responsibility shared across its internal intelligence. Empowerment is key to building that much needed internal ownership that all team members must have in order to ensure corporate success. Empowerment encourages creative thinking. It encourages discussion of possibilities. Empowerment opens doors for thought and innovation that would forever remain closed if never given the opportunity to exalt in the light of “unencumbered permission”.

Let’s be very clear about what I am saying. If delegation is done properly, then empowerment is a fairly safe risk, and one that is well worth the taking. Isn’t it better to build a company that consists of “extraordinary professionals” than one filled with “ordinary subordinates”? Every business leader should be aiming for “unimaginable success”. It is only with this goal in mind that successful companies can ever reach the heights of achievement beyond that which they are experiencing today. I believe that a successful company will never reach its full potential unless their leaders realize that, with each new day, with each new hire, with each new opportunity and with each new influence, their companies have the opportunity to transcend beyond what once might have been believed to be the great “home run”. But, companies will only get there if their leaders understand that that they have a world of intelligence available to them. And, if treated and nurtured properly, they may proudly proclaim that they have extraordinary professionals as part of their team, who act as invaluable drivers of their success.

Savvy business leaders never rest on their laurels. They understand that the certainty of a new challenge will always exist and they are keen to embrace the opportunities at hand by developing internal competencies to greet these new opportunities, while creating a culture that will attract like-minded professionals to the family.

I personally will always opt for the “extraordinary”, and I am always on the lookout for talented, enthusiastic individuals. It has been our tradition never to isolate our recruitment efforts only to fill job openings or position descriptions. We are always seeking out talent regardless of whether we have a position available within the firm. As a matter of fact, sometimes we interview individuals who ultimately create their own positions during the interview process.

It has always been important to me that we sculpt a team environment that consists of professionals that joined us because we appreciated their talents and enthusiasm, and they, in kind, appreciated the opportunities and culture of personal growth and empowerment we offer. Does this approach work? Without being too braggadocios, I think my track record has proven this approach to be more than adequately successful!

Without question, diversity continues to be a hot topic for politicians, companies, and certainly for successful business leaders. Unfortunately, the discussion rarely evolves from a good idea to actual fruition. In other words, there seems to be lots of “lip service”, but little real action. Never having been the type to sit on the sidelines, I am pleased to share that at Liberty, we put the “meat” back into diversity initiatives, and we encourage other corporations to do so as well!

So what exactly does this mean? As I have shared in previous articles, the makeup of Liberty Tax Service encompasses nearly every color, race and ethnicity, associated with our operations in the U.S. and Canada. We have won “Best of the Best Awards” for several years running as the best business opportunity for African Americans, Hispanics and Women. Why, you might ask? Because we actually took the diversity discussions out of the conference room and into the field.

When planning our diversity efforts, aside from being blind to color, race and gender, the first order of business for us was answering the question – Do we want to create a marketing campaign or an initiative? The difference is rather important, and the last thing I wanted to do was try to hoodwink our way through a marketing campaign under the auspices that we are providing the community with an “initiative”. An initiative promises our commitment to social responsibility, instead of a “buy one get one free” concept. Please do not misunderstand. I am a strong supporter of marketing campaigns. As a matter of fact, at Liberty, our Marketing Department works diligently to ensure we have the most innovative and creative marketing campaigns in the industry for each tax season. But when an effort is branded as an “initiative”, your company must take the responsibility to ensure that this is not a cover for a sales campaign, or you will lose credibility very quickly.

Initiatives require that companies become somewhat selfless in their service-provider efforts, and focus on providing something that the selected community needs in order to better itself. An initiative should not be about selling more products; although in the long run, your efforts to work diligently for the betterment of the community will, in fact, endear you to that community who, in turn, will make you their vendor or product of choice. But it’s all about giving first. If you take care of the community first, the community will take care of you. For this reason, we chose to go with an “initiative” and we have never looked back!

As a tax firm, we had to be introspective about what we had to offer our underserved communities across the nation that could utilize our expertise in a manner that would make a difference in their lives. Sure, we do taxes; but what else do we have to offer? We started from ground zero, working to understand what we could offer effectively and how it would make a difference in the lives of these often disenfranchised communities. We started with identifying which ethnicity would be our first directive. Given that the Hispanic population in the U.S. consists of approximately 53 million individuals, complimented by the fact that the U.S. is second ONLY to Mexico in the number of Latinos living in the country, it made sense that we focus on this emerging majority first, and then branch into other ethnicities.

While identifying the target group on which we would focus was a good start, a great deal more effort was needed in order to ascertain what we were going to offer our Hispanic communities that would be of value to them. And equally as important, how we were going to engage them in a productive manner. As we continued our analysis, we found that the economic structure in Mexico, Latin American countries and islands, is considerably different than that which exists in the U.S. We also found that, while many government organizations provide our Latino immigrants with access to ESL and even GEDs, these efforts do not typically include instruction on how to manage in a credit-based economy that is quite foreign to many of our immigrants, Hispanic or otherwise. And, while it is vital that all immigrants learn English, and certainly it is admirable that they should avail themselves of every opportunity possible to expand their education, it is also equally important that they understand the fundamentals of our economic system so that they can thrive instead of just survive in their newly adopted country. We realized that the Liberty team is in fact a group of “fiscal and financial” professionals. For this reason, we determined that our valuable contribution to our target group would be to provide financial and fiscal education, at no charge, to Hispanic communities across the nation, and to do so in their own language. The next step was planning how to implement this initiative.

Identifying a target group that would benefit from a company’s domain expertise is paramount to a successful initiative effort. Unfortunately, this is the point at which many well-meaning business leaders’ efforts seem to go south, so to speak. Enthusiasm is a wonderful trait; but it sometimes blinds us to the facts. Quite often, we are tempted to allow our enthusiasm to lead us in a direction that does not necessarily address the needs of the selected group. We soon realized that it was vital that we pinpoint exactly what our Hispanic communities need and want, and understand how they think, how they feel, how their culture affects their decisions, choices and overall personal and financial development in the U.S. Furthermore, we also accepted the fact that getting to know and understand the special needs and important nuances of a diverse market segment can be time-consuming and is an effort that can sometimes require sensitivity training.

That said, time and again, it seems that the common thread in this conundrum is the misguided opinion that once immigrants arrive in the U.S., they lose their culture and meld into a “one size fits all” community. This misnomer is further exacerbated by the fact that often, companies have a “non-diverse” individual leading their diversity efforts, which in my opinion, is a bit of an oxymoron. Using myself as an example, as an “Anglo”, I can certainly empathize with the plight of our new Latino immigrants as they work to acculturate in the U.S.; but I will never be able to really feel and understand their experience on a truly personal level. Unless you have lived in the culture and have walked the path of the new immigrant, comprehending the distress and confusion many of our new Latino neighbors experience upon arrival to the U.S. would be difficult at best. That’s why so many companies ultimately end-up “translating” their mainstream materials into the language of their chosen target community and then consider their diversity efforts a fait accompli. Most interestingly, these same business leaders are at a loss as to why their target community did not readily embrace their company’s efforts. Well, as the old saying goes, “it takes one to know one”….in this instance, I believe the adage holds true.

For this reason, fundamental to our strategic plan to create an initiative that would flourish and reach out to our Hispanic communities nationwide; we believed it was vital that the program be “created by Latinos for Latinos” in order for it to truly reach the heart of the people we are aiming to serve. Liberty’s Diversity Programs Team consists of Hispanic professionals hailing from five different countries in South and Central America, as well as the Caribbean. We hired these professionals to create a Hispanic Fiscal and Financial Education Initiative that could serve as a benchmark for other corporations across the nation. And, I think they have been extremely successful in doing so.

Liberty’s Education Initiative is branded: Una Familia Sin Fronteras® (A Family Without Borders/Boundaries), and it is an initiative that is committed to FREE education for all Latinos across the U.S., to be provided in both English and Spanish. The initiative is anchored by four key directives: Information provides Options, Options provide Empowerment, and Empowerment provides Self-Esteem. By keeping these four directives in constant view, we have been able to create a one-of-a-kind initiative that has touched hundreds of thousands of Hispanics across the nation. But, it was not a quick and easy task. There are no short cuts to creating a successful diversity initiative. It takes time, effort, funding and the right people to make this a success.

In order to fulfill the mission of our Hispanic educational initiative, we had to again look introspectively. The Franchisees would ultimately be the community service providers teaching these seminars, and at this time, the majority of our Franchisees are non-Hispanic. We are working diligently to change this dynamic, but for now, this is the reality. Therefore, we had to begin our education internally first, in order to be able to make the impact on the community to which we aspired. To that end, we created a HISPANIC SERVICES SEAL OF EXCELLENCE CERTIFICATION training program that all Franchisees who wish to participate in our Hispanic initiative must complete prior to being allowed to work with our Latino communities at the education level. A portion of this training program includes sensitivity training, which shares the unique cultural aspects of Hispanic immigrants, and celebrates their spirit and achievements, noting the consummate impact that Latinos have had through the years in forming the America we know today. Upon completion of this 22-hour training program, this elite group of Franchisees receives a “seal” that they can display on their office windows that announces, “Orgullosamente Sirviendo a la Comunidad Hispana”, (Proudly Serving the Hispanic Community). Each of these offices must then hire bilingual staff members from the neighborhoods in which their offices are located so that they have Spanish-speaking personnel that serve our Latino clients in their own language. This is a key requirement, and one that is unequivocal. Additionally, we do not hold to any educational requirements. If the potential staff member only has a grammar school education but is bright and willing to learn, we will teach them how to use the computer and our tax software, and most importantly, we will put them in a professional environment that will allow them to, in turn, help their own community. Many of these staff members actually become the teachers of the numerous FREE seminars we provide.

To reemphasize our commitment to the “initiative”, we invest all marketing dollars that would have ordinarily been spent on Hispanic advertising into 30-minute, uninterrupted, live radio shows on local Spanish-language music stations throughout the country, during which we continue to teach the community about not only their fiscal responsibilities and tax issues in general, but about such other important topics as “First Home Ownership”; “Why do you need a checking and savings account”; “How to start a small business”; “The importance of education”; “What does “credit” mean?” – to name just a few. The listeners are able to call in during these live broadcasts and have a score of questions answered immediately on the air. We also give airtime to nonprofits and institutions that provide services that benefit the Hispanic community on a national or local level. So, during any given program, the guest might be a representative from the U.S. Department of Education speaking on the FAFSA program, or a small local nonprofit that is community specific. By keeping these programs local and live, they can be geared to the needs of each community. Another interesting development of the educational Spanish-language radio shows is that we are able to train the very Latinos we hired from the neighborhood to be the program hosts. Imagine the thrill experienced by someone with a potentially limited education as they become “radio hosts”, speaking on a live radio broadcast with family and friends listening, and being able to serve their own community in a positive and constructive manner.

In summary, the initiative enables Liberty to provide the best possible services, in Spanish and in English, to Hispanic communities. It serves as an employment opportunity for many individuals from Hispanic communities across the U.S. who may never have believed they would be empowered to work as a tax professional. Equally important is that the initiative serves as an educational vehicle for the general Hispanic community on pertinent topics that will help them prosper and heighten their economic awareness.

We launched our Una Familia Sin Fronteras educational initiative only three-and-a-half years ago, and because we have stayed absolutely true to the concept of an “initiative”, without being braggadocios, I can say we have had remarkable success. For instance, we are the only private firm that has been allowed to partner with school districts across the nation, providing our FREE seminar series through their Hispanic adult education outreach programs. We started with the largest, Los Angeles Unified School District, and we now proudly work with numerous school districts across the nation. We were also the only private firm to have been sanctioned by IME in Mexico City, (Institute for Mexicans Abroad) to work within all of the Consulates in the U.S., including their neighborhood learning centers. Additionally, we have partnered with the White House Initiative on Education Excellence for Hispanics, the FAFSA program through the U.S. Department of Education (we have turned our offices into FREE FAFSA forms completion centers for anyone who needs assistance with these forms in Spanish and English), community colleges, libraries, the National University of Mexico (UNAM) which has five campuses in the U.S., and nonprofits large and small, through which we teach over forty different FREE seminars throughout the year (and growing), many of which are college accredited. Again, imagine the impact on the self-esteem of someone who has not had the advantage of even a high school diploma, but receives a Certificate of Completion for having attended one of our college-accredited courses. The pride these immigrants feel in having successfully completed a college-approved course is priceless, and they will pass on this determination for success to their children.

The impact that beneficial information provides is long-lasting. It is the continuation of this thirst for knowledge, and the understanding that everyone deserves at least one, all-important moment of accomplishment in their lives, that drives the efforts of our initiative.

Many of our partner organizations and institutions originally considered working with a for-profit, private firm as “taboo”. However, because of the proven integrity of our initiative to stay on topic, with no sales pitches slyly introduced, we have become a resource for education that they would have had to either hire someone to provide or do without. We continue to add more organizations and school districts each year for which we supplement their current curriculum with our FREE informational seminars and workshops. During these tough economic times, our partners have been able to provide increased services to their constituents, at no cost to them or to the community. As a result, partner referrals have been instrumental in growing our alliances and expanding our outreach into the Hispanic communities across the U.S.

In order to support the direction of our initiative, we have recently formed the Una Familia Sin Fronteras Foundation, chartered with maintaining the focus on FREE education for Hispanics through expanded adult programs, financial assistance for students of all ages and support of various community efforts in this area.

It is Liberty’s honor to work with the Latino community. Our goal is to continue expanding our alliances and educational options as we advance our efforts with the initiative and the Foundation’s charter. I hope that by having shared our story, other business leaders will join in and create distinctive programs that will resonate throughout America in support of our diverse population. It is not only an important responsibility, but I believe it is our obligation to do so.

*The references “Latino” and “Hispanic” have been used interchangeably in this document with poetic license, and with no intention to offend or ignore any ethnic group.

“Choose a job you love and you will never have to work a day in your life.” …Confucius.

When I read this quote, I immediately knew I had found the words to explain exactly how I wanted to live my life. These words have been my personal mantra and I have literally designed my life to follow this advice. Candidly, I can’t imagine that anyone would choose not to do so as well. When one has a passion for what they are doing, the excitement and fanaticism for the mission at hand is contagious. And, as every successful business leader knows, this type of contagion is what success is all about.

I was very fortunate in that I found my passion early – as a college student while I was studying in upstate New York to be a Mathematician. On advice from my father, I attended a tax preparation class and I found myself thoroughly enthralled with the tax system. I found that my interest in mathematics and its focus on the importance of understanding the “right path” to the solution rather than simply arriving at the actual answer, fit in very nicely with the economics and processes of the tax industry. It was this epiphany that allowed me to understand exactly what “passion” was all about. Through this realization, I was able to begin crafting the formula that would become the foundation for both Jackson Hewitt and Liberty Tax Service as companies that would reflect this passion, and instill the opportunity for other like-minded entrepreneurs, i.e. family, employees and franchisees alike, to also benefit from a business and a working environment that they could love.

But, it’s not just about making money. When you have passion for your business, you are creating a world in which you and others can continue to be fulfilled emotionally, as well as monetarily. Doesn’t it make sense to simultaneously increase your quality of life while in tandem positively affecting your standard of living? After all, without passion, your endeavors become nothing more than a mechanical repetition of formula, a robotic approach to each day that will ultimately leave you empty inside even though your bank statement might reflect otherwise.

An unfortunate statistic is that fewer than 50% of new businesses make it to their fourth year. But these numbers shouldn’t disdrive you if your business is also your passion. One of the biggest mistakes business leaders and new business owners make is trying to live someone else’s dream. For instance, simply because you know someone who became successful in the real estate business or the stock market, does not mean that either of these business opportunities will serve you equally as well. There is so much more to success than just the medium. You must have the joy that keeps you involved and interested in being a life-long student as one can never stop learning from their own experiences and those of others in their mutual field. And finally, you must have the joy that keeps you innovative so that your world is always fresh and exiting with new ideas and influences, all of which you most definitely need in order to not only achieve success, but to keep it. Only those entrepreneurs who are doing daily what they truly love will make it through the hurdles that all business leaders must face in order to ensure success.

I was asked an interesting question recently that frankly, took me by surprise. I was asked if it took drive to be passionate. After mulling over the question, my response was that it takes “passion in order to have the drive to succeed.” But it also requires “drive to choose to follow your passion”. That said, in my opinion, one must be able to incorporate both passion and drive in order to ultimately rise above the “ordinary” and reach the realm of the fanatical if one truly wants to be an extraordinary success story.

There seems to be a matter of opinion by many that there is a definite gap between passion and profits. I, personally, am not of this school of thought. There are so many examples of profitable leaders, besides my own, who had passion and started companies that also incorporated social responsibility [an upcoming article I hope to share soon] that are among the top of the top of profitable companies. As an obvious example, let’s reflect on Larry Page and Sergey Brin, founders of Google. With a motto of “Don’t Be Evil”, Google started as a passion to share free information through the Internet and quickly grew to be one of the most innovative players in the high tech environment with an application that is, well, ubiquitous without question. But did you know that they recently defied the Chinese government by refusing to continue censoring its Chinese search engine, ultimately placing conscience ahead of profits? This is a fairly obvious example of the power of passion and drive, working in synch!

As an entrepreneur, passion is simply part of the DNA one must incorporate if one is to be successful. However, this does not mean that decisions, innovations or just plain “what-if ideas” are deployed with reckless abandon…on the contrary. When Tim Berns-Lee invented the World Wide Web in the 1980s and followed this extraordinary achievement in 1990 by developing the facility for the “average person” to utilize this resource, do you really think he accomplished this feat haphazardly or as simply a serendipitous technological snafu? Absolutely not. This was a man with passion for a goal – a passion to provide unlimited world-wide access to communication and information through technology that the average person did not even know existed. He had to find a way to get this past the “idea stage” and into a reality. This took passion and drive, which ultimately directed him to the all-important stages of planning and deployment – obvious “next steps” if any idea is ever to become more than just a dream or a good intention.

Today, Berns-Lee has continued his passion and incorporation of social responsibility with the formation of The World Wide Web Foundation that was created to empower people worldwide and bring about positive socio-economic change utilizing technology to help develop socially responsible web services that will ultimately support valuable global improvements such as innovative farming practices, regreening environments, etc. (World Wide Web Foundation).

So now I ask you, is it drive or is it passion that makes one a great leader? Or is it both?

I try very hard not to proselytize to be the guru of all business success, although as an avid reader, I read many of the books written by lots of professionals who share their strategic success, and yes, sometimes they do indeed claim to have all of the answers. But, while I may not walk away from each reading experience believing that I have read “THE message from THE anointed strategic business Messiah”, I can affirm that there is always at least a kernel of knowledge, or a thought that has driven a direction of thinking that perhaps was actualized because I had some level of new input from having shared in their messages. That is to say, I firmly believe that there is always knowledge to be gained from everyone and every experience, and one would be foolish not to embrace this reality. [But this is a whole new discussion altogether.]

What I do try to accomplish through my seminars and articles is to share only the strategies and experiences that have worked for me, and the advice that I may have to offer to anyone who might need just “that kernel of knowledge” to spark some thought or action that would help to guide them in the direction of their own success.

So as I share my experience with passion and, yes, drive, I want to ensure that I did not fail to impress on you the importance of basic business acumen. Make sure your thinking is not abstract and that you fully realize that ultimately, your success will always be based on your ability to successfully deploy knowledge-thinking processes. Nonetheless, without passion and drive, you are not likely to ever leave the post and enter the race to success. Il sont parti – and may you have a strong finish!

Doesn’t every New Year seem to bring the inevitable article that takes you into that “fuzzy world” of rhetoric and reads more like a ballad of flashbacks that didn’t quite hit the top 100 list? Sure, looking back on previous years’ efforts is always a sane approach to substantiate your movement forward. But let’s not get so mired in the past that we become immobile because we are focusing too much on what didn’t happen and not enough on what did. We can’t change yesterday, but we can surely impact tomorrow’s success. Reflection may be good for the soul, but let’s talk business, not just recycled resolutions!

Following are five important resolutions that are fairly commonsensical, pretty fundamental, and definitely achievable:

1. Think out of the box: This should be on every business leader’s resolution list. Quoting early 20^th-century self-help author James Allen, “All that a man achieves and all that he fails to achieve is the direct result of his own thoughts.” Learning the lessons of forward-thinking is paramount to your continued success. Remember, we do not live in a one-size-fits-all world. Creative thinking will always win over safe and boring. Success is not built on status quo thinking but on innovation. One must always embrace the new and take intelligent risks. Conventional wisdom may say to get back to the basics and cut costs, especially during these economic times. But I can guarantee you that the winners are the innovators who are making bold thinking an everyday part of doing business. Breaking from convention should be part of the culture of a successful company since innovation must be understood and lived by all stakeholders, across the board. But it is a top-down process; so as the business leader, it is incumbent on you to set the tone within your company.

2. Embrace what works and discard what doesn’t: From time to time, we all have experienced the need to hold on to something even though it is no longer a good fit and/or is just not producing. Whether it’s a process or a staff member, or even old equipment, we sometimes want to just “wish it into success”, hoping it will take care of itself. The reality is that the longer you procrastinate, the deeper the damage. This year, let’s resolve to be on top of these problem areas and attack them head-on. Stop wasting energy and time trying to fit a square peg into a round hole. Accept that change is inevitable and the quicker you steer the helm back on course, the more successful your company and team members will be. To clarify, I’m not advocating that you go through your company with a goal to kick out people and processes on an ad hoc basis. I am avowing, however, that you realize the importance of keeping only that which is best suited to your success, and therefore eliminate the difficulty of retrenchment. Protect your corporate culture by vowing to keep the momentum going and to take action swiftly when it is called for. Likewise, keep the parts of the machine that are working well-oiled and primed such that they can continue to support your success. 

3) Delegate for success: Learning how to “let go” seems to be a common challenge for many business leaders. I can admit I’ve struggled with this problem myself from time to time. After all, no one can do it quite as well as “we” can, right? Well, wrong — yes they can! Successful leaders are those who can turn over control and delegate effectively so they can focus on the bigger picture of growing the company’s success. If you are beyond start-up phase and have a business staffed with professionals capable of handling their responsibilities, why get in their way? Delegation doesn’t mean not being aware of project status and deliverable dates. You can set up a reporting process to ensure you are in the loop. While delegation may be considered a challenging business approach by some, it is realistically a way for business leaders to get more done since it increases your productivity time and allows you to focus on growing the business, increasing revenue and innovation. Of course the caveat is that you must ensure that the people in place are capable of handling the responsibility. And if they are not, then you need to replace them with someone who is. Clearly, the solution is not to refrain from delegation but, instead, to build a capable team of professionals that will allow for this extremely important time-management process. Remember, your company is only as strong as your internal intelligence. So choose your stakeholders wisely, and then allow yourself to count on them to do their jobs.

4) You are your best advertisement: I like to think that the Liberty Tax Service team is pretty much a walking billboard, since they represent the company and its culture to the outside world. If you have a positive team, they will project this positivity and it will be obvious to the marketplace by the way they speak about the company and the enthusiasm with which they engage in their responsibilities. Can your stakeholders speak with confidence about your company? Do they understand the corporate goal and how to get there? Do they understand the customer and their needs? Do they project a sense of assurance in the leadership, the future and in your company’s success? Does your management team encourage innovation and solutions-driven engagement? If the answer is no to any of these questions, you just might be stomping on your own brand. People are always your best advertisement. Remember, good people attract other rich talent to your firm, who in turn attract more clients, since the quality of your product or service increases in synch with the level of committed professionalism your company exudes. Stakeholder enthusiasm is key to differentiating the ordinary company from the extraordinary. Our mantra at Liberty is to be extraordinary, and we realize that we need everyone on board with this goal or it will never be a reality. Commitment to positivity and innovation should be an “all the time, everywhere” imperative for your company. It is not something to take lightly, only discussing it at your annual management meeting. To be extraordinary, you must be so at all levels of the company. And the marketplace needs to see it to believe it.  Remember, you have the power to change customer perception, so make sure your team is changing it in the right direction.

5) Do something good for your community: It goes without saying that if you take care of the community, it will take of you. Corporations have a responsibility to give back to their constituents and to do so in a meaningful and lasting way. In a somewhat discontinuous world, it is socially responsible and it does nothing but perpetuate the right impression about your commitment to the whole. At Liberty, we support numerous organizations, from M.A.D.D. to the American Red Cross and Relay for Life, from March of Dimes to Cell Phones for Soldiers, to name just a few. And it’s not just at the corporate level. Our family of Franchisees engages in cause-related programs throughout the tax season and into the summer months. As a matter of fact, our Hispanic initiative, Una Familia Sin Fronteras, which is based on providing FREE bilingual, fiscal and financial education to Latinos across the nation, holds seminars and workshops throughout the year, working with nonprofits and school districts through their Adult Outreach Programs. Making a difference in your community is immeasurable, and volunteerism should be a reflection of your corporate culture.

As we look to the future and ponder our options, it’s important to realize that there must be a balance between all innovation and systemic business models. There is nothing wrong with buoying your direction with standard business practices. Just be sure that you do not lose the enthusiasm to be extraordinary, to be unique, to be innovative, and to take intelligent risks. Breakthrough ideas are a requirement if you are to compete in today’s fast-paced business environment. If the power to set strategy and direction is narrowly held, your business options will be limited and corporate renewal will inevitably falter. After all, new voices are essential for new thinking!

Let’s take gender, color, race, disability and creed out of the Diversity equation and what do you have? Very simply, you have people. And, your success is always going to be about “people”. Whether it’s internal intelligence, clients, or in the case of Liberty Tax Service, our franchisees, the bottom line is people working with people successfully, and not on how many people of each ethnicity is onboard. Diversity should play a major role in the progression of your business. It should be a natural process, not something you are doing because you feel compelled to do so. The color of one professional’s skin does not make them any less valuable or contributory than a professional of another ethnicity. We are all just people and we all deserve the opportunity to excel and, yes, go for the brass ring, if you’ll excuse the cliché.

America’s workplace must reflect today’s diverse world, and it must reflect it at all levels within the company. The impact of diversity on a company’s market penetration and overall success can be significant and profound. Think about it…internal diversity draws external diverse groups to your product or service. Why? Because all people enjoy working with someone who understands their culture, as well as the unique communication that results from this knowledge. Without diversity, how are you going to understand and cogently enter the folkways of the many diverse groups that will impact the financial solvency of your company? The more diverse your market becomes, the more your company will prosper. This is simply Business 101!

No More Buzz Words

Diversity directives have been around for some time, and with many business leaders, it is treated more as a buzz word of the times than the outstanding opportunity it presents. Your commitment to diversity cannot be superficial or it will not be embraced by your stakeholders, and certainly not by your marketplace. An inclusive corporate culture is key to recruitment and retention of both your internal intelligence and your clients. Diversity must be woven into the fabric of your company to keep it healthy for your employees, exciting for your culture and satisfying for your clients. This corporate attitude very simply equates to devoted employees and loyal clients. It’s time for corporations to eliminate the buzz words from their vocabulary and start “walking the talk” of diversity.  In actuality, the labor pool itself is becoming so blended, so ‘colorful,’ that employers will be hiring a more diverse workforce because there will be no way to avoid it – and they certainly would be foolish to ignore the value a multicultural workforce can bring to their company.

At Liberty, our franchisee and stakeholder family is a rainbow of diversity. We have been embracing the positives of diversity since the company’s inception. We even wrote the sentiment into our Mission Statement which is quite simple: Set the Standard. Improve Each Day. Have Some Fun. By interconnecting our corporate culture with diversity, we have been able to serve diverse communities across the nation, while working to set the standard for other companies that might be a little slower to the concept.  Through our FREE financial and fiscal education to underserved communities in English and Spanish, (and in some cities we even provide these courses in Haitian Creole, as well as various Oaxacan dialects), we have provided the means by which many of our disenfranchised neighbors can learn vital information that will make a difference in their lives. The goal is to understand the needs of our diverse communities and to provide them with services that will enhance their lives, promote their success, and ultimately, help move them from just “surviving” into “thriving” mode. And, we do this with the help and input from our diverse stakeholders and franchisees. At Liberty, our philosophy is that if you take care of the community, the community will take care of you. So rather than selling to these underserved communities, we work to provide them with information that will allow them to make more informed economic decisions that will positively impact their lives and their future. We believe that they, in turn, will trust in our commitment and will choose Liberty as their service provider when the time comes for them to make this decision. But first, we invest in the community to help it prosper. Entering diverse markets should be viewed as a long term investment. Building trust within immigrant communities is extremely important to the success of your business. And, it takes time and sincere effort to achieve.

That said, diversity is, in effect, an investment in people. There is nothing more critical or worthwhile than to realize the importance and value of the diverse communities in America. Diversity allows companies to utilize our country’s assets to the fullest. The dimensions of employable individuals have grown in the U.S. That is to say, the broader the workforce, the broader your options. Companies that embrace diversity ultimately reap the benefits of their commitment. Studies show that companies that embrace diversity reported an increase in employee work quality, which, in turn, equated to higher productivity and a greater return on investment. Various researchers studying diversity in the workplace have consistently found that organizations that emphasize collectivism in the workplace typically see greater benefits as a result of diversity. Companies that creating a corporate culture that focuses on “involvement” will more easily facilitate successful diversity fulfillment in their organization.

The reality is that diversity will continue to be evolutionary. As business leaders, we must embrace the opportunities and value the cultural impact this evolution will provide.

After a highly successful sale of Jackson Hewitt (NYSE: JTX), Mr. Hewitt started Liberty Tax Service in 1997. Under his leadership, Liberty Tax Service has reached unmatched success in the industry and has been recognized as the fastest growing retail tax preparation company in the industry’s history, continuing to succeed at the level of the sum of both of its competitors’ businesses.

In January 2011, Entrepreneur magazine ranked Liberty Tax Service as #1 of the tax franchises on the Entrepreneur “Franchise 500.” Additionally, Liberty Tax Service is the only tax franchise on the Forbes “Top 20 Franchises to Start.”

With 3,800 offices in the U.S. and Canada, Liberty Tax Service has embraced diversity in its ranks, and kept its franchise price affordable. For this reason, Liberty Tax Service is the only tax service that was included on the elite list of “25 Top Franchises for Hispanics” in 2006, 2007, 2009 and 2010 published by Poder, formerly Hispanic Enterprise magazine. Liberty was also been recognized in 2009 and 2010 as the “Best of the Best” in Black EOE Journal, the Hispanic Network Magazine, and the Professional Woman’s Magazine in the categories of “top franchise,” “top financial institutions,” and “top supplier of diversity programs.” Black Enterprise magazine also named Liberty Tax Service as one of the most affordable and best franchise opportunities for minorities six times since 2001, and most recently as one of the “40 Best Franchises for African Americans” in its September 2010 issue.

Mr. Hewitt is a highly regarded national speaker, writer and expert in the tax industry, as well as a serial entrepreneur and expert in management growth strategies.

These estimates are based on a model developed by the Institute for Taxation and Economic Policy (ITEP). The ITEP methodology relies on three pieces of data: 1) an estimate of each state’s unauthorized population; 2) the average family income for unauthorized immigrants; and 3) state-specific tax payments. Of course, it is difficult to know precisely how much these families pay in taxes, because the spending and income behavior of these families is not as well documented as is the case for U.S. citizens. But these estimates represent a sensible best approximation of the taxes these families likely pay.

Estimates of each state’s unauthorized population are from the Pew Hispanic Center and based on 2010 Census data. There were an estimated 11.2 million unauthorized immigrants in the U.S. as of 2010. Pew has also estimated the unauthorized population for each state.4 Pew has found that unauthorized immigrants are likely to be less educated than native-born U.S. citizens and legal immigrants, and they tend to work in low-wage jobs. Thus the average family income of the unauthorized population is lower than the average family income for U.S. citizens or legal immigrants. The average income of a household headed by an unauthorized immigrant is estimated to be $36,000; 10 percent of which goes towards remittances to family members in countries of origin.

ITEP maintains detailed tax information for each state, and models how tax structures affect different income groups in each state. ITEP has estimated the amount of sales, income, and property tax the average unauthorized family pays.

• Sales tax is automatic, so it is assumed that unauthorized residents would pay sales tax at similar rates to U.S. citizens and legal immigrants with similar income levels.
• Similar to sales tax, property taxes are hard to avoid, and unauthorized immigrants are assumed to pay the same property taxes as others with the same income level. ITEP assumes that most unauthorized immigrants are renters, and only calculates the taxes paid by renters.
• Income tax contributions by the unauthorized population are less comparable to other populations because many unauthorized immigrants work “off the books” and income taxes are not automatically withheld from their paychecks. ITEP conservatively estimates that 50 percent of unauthorized immigrants are paying income taxes.

Source: Immigration Policy Center, American Immigration Council, 4/18/2011

The Urban League of Hampton Roads, Inc. honored award winners at its 21st Annual Whitney M. Young, Jr. Dinner, which recognizes corporations and individuals in the community that uphold ideals of equal opportunity, diversity and justice.

The dinner was held on Thursday, April 21, 2011 at the Renaissance Portsmouth Hotel. GEICO, Tidewater Community College, Norfolk Southern Corporation, TowneBank, SunTrust Bank, Bank of America and Regent University, Wachovia/Wells Fargo and other local sponsors joined in support of the event, themed “Faces of Change.”

Cox Communications, Hampton Roads, a multi-service broadband communications and entertainment company, received the Whitney M. Young Jr. Award, which is presented to an international/national company that has made significant progress towards diversifying its workforce at the management and non-management levels.

A. Reddix & Associates, a healthcare management consulting firm, received the A. Phillip Randolph Award presented to a local or regional company that has made significant progress toward diversifying its workforce at the management and non-management levels.

Veronica E. Meade Sheppard, Senior Assistant City Attorney for the City of Hampton, received the Vivian C. Mason Award, which is presented to an individual or group who has made significant contributions through long–term service to the Hampton Roads community by demonstrating the highest value of citizenship in promoting inter-racial understanding and cooperation.

Martee Pierson, Director of Diversity Programs for Liberty Tax Service, received the Marian Palmer Capps Award, which recognizes an individual or group who has made significant contributions to the Hampton Roads community through the promotion of educational initiatives which support inter-racial understanding and cooperation.

Karen Mundon, a student at Tidewater Community College, received the Jocelyn P. Goss Award, which is presented to a college or high school student who has demonstrated exceptional leadership through community service, academic achievement and or excellence in the performing or creative arts.

The dinner honors the life and legacy of Whitney M. Young, Jr. the former executive director of the National Urban League who brought the League into the civil rights arena during the 1960s. As the Urban League of Hampton Roads’ signature event, this year’s Dinner featured Emmy award winning broadcaster, Ed Gordon of Black Entertainment Television (BET) as its Master of Ceremonies. Vanessa Coria, a local news anchor and host of WVEC 13 News Daybreak, joined Gordon.

Urban League Community support of this annual event enables the Urban League of Hampton Roads, Inc. to provide services in the area of Summer Youth Employment, Scholarships, Health Seminars, Job Readiness Training, and Housing Assistance.

Celebrating its 101st year, the Urban League is an empowerment organization that connects individuals with the resources they need to change their lives. The Urban League of Hampton Roads is among the more than 100 affiliates that offer housing, health, education and jobs programs to empower individuals and families. The Urban League of Hampton Roads was featured on NBC Nightly News for its successful foreclosure program, which has saved several Virginians from losing their homes.

Whitney M. Young, Jr., executive director of the National Urban League from 1961 to 1971, was a tireless civil rights leader who meshed the tenets of activism with the practices of social work. The awards dinner recognizes individuals in the Greater Hampton Roads community who have made outstanding contributions to enhancing diversity, civic engagement and leadership within the region.

Source: Virginia’s Hampton Roads smartregion.org, 4/22/2011

File electronically. Filing electronically, whether through e-file or IRS Free File, vastly reduces the errors in a tax return, as the tax software does the calculations, flags common errors and prompts the taxpayers for missing information.

Remember Making Work Pay. The Making Work Pay tax credit –– available in 2009 and 2010 –– is worth up to $400 for individuals and $800 for married couples. Most people got it as a reduction to their paycheck withholding. Form 1040 filers must complete Schedule M, attach it to their returns, and claim the credit to benefit from it. (Tax software handles these calculations automatically for e-filers.)

Mail a paper return to the right address. Paper filers should check the appropriate address where to file in IRS.gov or their form instructions to avoid delays in processing. Fill in all requested information clearly, including Social Security numbers.

Check only one filing status. Also, check the appropriate exemption boxes. When you enter Social Security numbers, make sure they are correct.

Double check all figures. While software catches and prevents many errors on e-file returns, math errors remain common on paper returns.

Get the right routing and account numbers. Requesting a federal refund directly deposited into one, two or even three accounts is convenient and allows the taxpayer access to his or her money faster. Make sure the financial institution routing and account numbers entered on the return are accurate. Incorrect numbers can cause a refund to be delayed or deposited into the wrong account.

Sign and date the return. If you are filing a joint return, both you and your spouse must sign and date the return. E-filers can sign using a self-selected personal identification number (PIN).

Attach forms to the front of the return. Paper filers need to attach W-2s and other forms that reflect tax withholding, as well as other necessary forms and schedules, to the front of their returns. Those claiming credits that require special documentation, such as the Homebuyers Credit or the Adoption Credit, are also reminded to include all the suitable records with their returns.

Request a Filing Extension. If you cannot meet the April 18 deadline, requesting a filing extension for your return is easy and will prevent late filing penalties. You can either use Free File or Form 4868. But keep in mind that while an extension will grant you additional time to file, you are still required to pay any taxes owed by April 18.

Do you owe tax? If so, a number of e-payment options are available. Or send a check or money order payable to the “United States Treasury.”

Source: irs.gov, IR-2011-45

1. If you do not file by the deadline, you might face a failure-to-file penalty. If you do not pay by the due date, you could face a failure-to-pay penalty.

2. The failure-to-file penalty is generally more than the failure-to-pay penalty. So if you cannot pay all the taxes you owe, you should still file your tax return on time and explore other payment options in the meantime. The IRS will work with you.

3. The penalty for filing late is usually 5 percent of the unpaid taxes for each month or part of a month that a return is late. This penalty will not exceed 25 percent of your unpaid taxes.

4. If you file your return more than 60 days after the due date or extended due date, the minimum penalty is the smaller of $135 or 100 percent of the unpaid tax.

5. If you do not pay your taxes by the due date, you will generally have to pay a failure-to-pay penalty of ½ of 1 percent of your unpaid taxes for each month or part of a month after the due date that the taxes are not paid. This penalty can be as much as 25 percent of your unpaid taxes.

6. If you timely filed a request for an extension of time to file and you paid at least 90 percent of your actual tax liability by the original due date, you will not be faced with a failure-to-pay penalty if the remaining balance is paid by the extended due date.

7. If both the failure-to-file penalty and the failure-to-pay penalty apply in any month, the 5 percent failure-to-file penalty is reduced by the failure-to-pay penalty.

8. However, if you file your return more than 60 days after the due date or extended due date, the minimum penalty is the smaller of $135 or 100% of the unpaid tax.
You will not have to pay a failure-to-file or failure-to-pay penalty if you can show that you failed to file or pay on time because of reasonable cause and not because of willful neglect.

Source: irs.gov, Tax Tip 2011-74

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

2. 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.

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

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

5. 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.

6. 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.

7. 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.

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

For more information about IRS notices and bills, see Publication 594, The IRS Collection Process. Information about penalties and interest is available in Publication 17, Your Federal Income Tax (For Individuals). Both publications are available at http://www.irs.gov or by calling 800-TAX-FORM (800-829-3676).

Source: irs.gov, Tax Tip 2011-73

An extension gives you an additional six months to file your tax return. But keep in mind that an extension of time to file is not an extension of time to pay. All outstanding balances are due on April 18, 2011.

The IRS expects to receive approximately 10 million extension requests in 2011, which is about the same as last year.

Numerous Ways to Get an Extension

In order to get an extension, you need to file Form 4868 with the IRS.

Taxpayers can electronically file Form 4868 through IRS Free File or Free File Fillable Forms. Using Free File to prepare and electronically submit Form 4868 is free to everyone, regardless of income.

Paid preparers can also electronically file Form 4868 as can tax software that you run on your computer.

Finally, a paper version of Form 4868 is available for download from IRS.gov. However, the IRS will only provide an acknowledgement of your extension request if you e-file or Free File the request.

When you request an extension, you need to estimate your tax liability and pay any balance due by the April 18 deadline. If you are unable to pay the total balance due, you should pay as much as possible and apply for an installment agreement.

Source: irs.gov, IR-2011-43

There are several payment options available to taxpayers who have a balance due.

Payments can be made by:

+ Electronic funds withdrawal
+ Credit or debit card
+ The Electronic Federal Tax Payment System or
+ Check or Money Order

Detailed information on each of the first three payment types can be found on the IRS.gov Electronic Payment Options Home Page.

Some taxpayers who itemize their deductions may be eligible to claim as a miscellaneous itemized deduction the convenience fee charged to pay individual income taxes by credit or debit card.

Taxpayers who pay by check or money order should make the payment out to the “United States Treasury.” The tax year, form number and Social Security number should all be included on the check or money order. Also, include Form 1040-V, Payment Voucher, along with the payment and tax return. If you have already submitted your tax return but still need to pay all or some of the balance, you may mail the check or money order to the IRS with Form 1040-V.

For members of the military and others serving in combat zones, the filing and payment deadline is normally postponed until at least 180 days after the service member leaves the combat zone, so the April 18 deadline to file and pay does not apply. If you are eligible, you get the extra time without having to ask for it.

Avoid Penalties and Interest

If you have a balance due, it’s important to pay your tax bill by April 18 to avoid penalties and interest. But even if you cannot pay your entire bill, pay as much as you can to minimize penalties and interest.

Installment Agreements

For those taxpayers who cannot pay in full by April 18, an installment agreement may be appropriate. Several options are available for setting up a payment agreement with the IRS:

+ Most people can set up a payment agreement on line in a matter of minutes. Those who owe $25,000 or less in combined tax, penalties and interest qualify to use the Online Payment Agreement (OPA). You can choose this option even if you have not yet received a bill or notice from the IRS. For details, refer to What Information Do I Need to Use OPA?

+ File Form 9465 (PDF), Request for Installment Agreement. This form can be filed electronically along with your return or downloaded from IRS.gov and mailed along with your paper return. If you have received a tax bill, mail your completed form to the address on your bill.

+ Call the number on the bill or notice you received from the IRS. Make sure you have the bill or notice handy along with your Social Security number.

Offers in Compromise

The IRS recently expanded the streamlined Offer in Compromise program, which now covers taxpayers with annual incomes of up to $100,000 and tax liabilities up to $50,000.

An Offer in Compromise is an agreement between a taxpayer and the IRS that settles the taxpayer’s tax liabilities for less than the full amount owed. It is subject to acceptance based on legal requirements. Generally, the IRS will not accept an offer if it believes the liability can be paid in full as a lump sum or through a payment agreement. Prior to approval, the IRS examines the taxpayer’s income and assets to determine the taxpayer’s ability to pay.

Source: irs.gov, IR-2011-42

To date, there have been more than 250,000 downloads of the IRS2Go app.

In late January, the IRS unveiled IRS2Go, its first smartphone application that lets taxpayers check on the status of their tax refund and obtain helpful tax information. The IRS2Go phone app gives people a convenient way of checking on their federal refund. It also gives people a quick way of obtaining easy-to-understand tax tips.

Apple users can download the free IRS2Go application by visiting the Apple App Store. Android users can visit the Android Marketplace to download the free IRS2Go app. The mobile app, among a handful in the federal government, offers a number of safe and secure ways to help taxpayers.

Get Your Refund Status

Taxpayers can check the status of their federal refund through the new phone app with a few basic pieces of information. First, taxpayers enter their Social Security number, which is masked and encrypted for security purposes. Next, taxpayers pick the filing status they used on their tax return. Finally, taxpayers enter the amount of the refund they expect from their 2010 tax return.

For people who e-file, the refund function of the phone app will work within about 72 hours after taxpayers receive an e-mail acknowledgement saying the IRS received their tax return.

For people filing paper tax returns, longer processing times mean they will need to wait three to four weeks before they can check their refund status.

About 70 percent of the 142 million individual tax returns filed were filed electronically last year, and that percentage is expected to rise this year.

Get Tax Updates

Phone app users enter their e-mail address to automatically get daily tax tips. Tax Tips are simple, straightforward tips and reminders to help with tax planning and preparation. Tax Tips are issued daily during the tax filing season and periodically during the rest of the year. The plain English updates cover topics such as free tax help, child tax credits, the Earned Income Tax Credit, education credits and other topics.

Follow the IRS

Taxpayers can sign up to follow the IRS Twitter news feed, @IRSnews. IRSnews provides the latest federal tax news and information for taxpayers. The IRSnews tweets provide easy-to-use information, including tax law changes and important IRS programs.

IRS2Go is the latest IRS effort to provide information to taxpayers beyond traditional channels. The IRS also uses tools such as YouTube and Twitter to share the latest information on tax changes, initiatives, products and services through social media channels. For more information on IRS2Go and other new media products, visit www.IRS.gov.

Source: irs.gov, IR-2011-41

Here are nine points the IRS wants you to know about amending your federal income tax return.

1. Use Form 1040X, Amended U.S. Individual Income Tax Return, to file an amended income tax return.

2. Use Form 1040X to correct previously filed Forms 1040, 1040A or 1040EZ. An amended return cannot be filed electronically, thus you must file it by paper.

3. Generally, you do not need to file an amended return due to math errors. The IRS will automatically make that correction. Also, do not file an amended return because you forgot to attach tax forms such as W-2s or schedules. The IRS normally will send a request asking for those.

4. Be sure to enter the year of the return you are amending at the top of Form 1040X. Generally, you must file Form 1040X within three years from the date you filed your original return or within two years from the date you paid the tax, whichever is later.

5. If you are amending more than one tax return, prepare a 1040X for each return and mail them in separate envelopes to the appropriate IRS campus. The 1040X instructions list the addresses for the campuses.

6. If the changes involve another schedule or form, you must attach that schedule or form to the amended return.

7. If you are filing to claim an additional refund, wait until you have received your original refund before filing Form 1040X. You may cash that check while waiting for any additional refund.

8. If you owe additional 2010 tax, file Form 1040X and pay the tax before the due date to limit interest and penalty charges that could accrue on your account. Interest is charged on any tax not paid by the due date of the original return, without regard to extensions.

9. Form 1040X was recently redesigned. Previously the form consisted of three columns; Column A-Original amount, Column B-Net change, and Column C-Correct amount. The redesigned form now has just one column where the Correct Amount is the only figure entered, making it easier to make changes to previously filed returns.

Source: irs.gov, Tax Tip 2011-72

1. Normally, tax records should be kept for three years.

2. Some documents — such as records relating to a home purchase or sale, stock transactions, IRA and business or rental property — should be kept longer.

3. In most cases, the IRS does not require you to keep records in any special manner. Generally speaking, however, you should keep any and all documents that may have an impact on your federal tax return.

4. Records you should keep include bills, credit card and other receipts, invoices, mileage logs, canceled, imaged or substitute checks, proofs of payment, and any other records to support deductions or credits you claim on your return.

5. For more information on what kinds of records to keep, see IRS Publication 552, Recordkeeping for Individuals, which is available on the IRS website at http://www.irs.gov or by calling 800-TAX-FORM (800-829-3676).

Source: irs.gov, Tax Tip 2011-71

The VALHEN Encuentro 2011 was held on March 24 -25 at Northern Virginia Community College in Annandale, VA. This year’s topic was Latinos – Growing and Driving Success in Virginia. Keynote speakers were Dr. Michael Olivas, J.D. and Ph.D, and Mr. Juan Sepulveda, Director of the White House Initiative on Educational Excellence for Hispanic Americans. Liberty Tax Service was a major sponsor of the event, and actively participated as a speaker/presenter in the conference.

Ms. Martee Pierson, Director of Diversity Programs of Liberty Tax Service and Executive Director of the Una Familia Sin Fronteras Foundation, led a session on the Importance of Entrepreneurship, together with Dr. Marcela Chavan-Matviuk, Ph.D. and Dr. Mavel Velasco, Ph.D. Key topics of their session included Drs. Velasco’s and Chavan-Matviuk’s introduction of the natural adeptness at entrepreneurship as a part of typical Latino “DNA”, due to a long tradition of creative and successful entrepreneurship throughout Latin America, as well as the cultural barriers that can create a risk-adverse sentiment among our new immigrants. Ms. Pierson proposed and rationalized the extension of existing GED and ESL classes, which are very popular with Latinos, in order to include financial and fiscal responsibility education, as well as career training. The premise of Ms. Pierson’s presentation was that the Latino students are already physically and psychology ready to learn by virtue of attending these classes; therefore it would make sense to provide them with these educational tools that will help them can grow and prosper economically.

One of the conference highlights was the awarding of the Second Annual VALHEN scholarships for the 2011-2012 school year. Two deserving students received awards of $1000 each, both funded by VALHEN. Three additional students were awarded $500 scholarships, sponsored through a generous donation by Liberty Tax Service and its Una Familia Sin Fronteras (A Family Without Boundaries) initiative and Foundation.

“VALHEN is a highly respected organization whose goals are completely in synch with the values and intentions of Liberty’s Hispanic initiative and Foundation,” explains Ms. Pierson. “It is always a pleasure to work these types of organizations that are bringing education, inspiration and empowerment through education to our Hispanic communities.”

Liberty’s Una Familia Sin Fronteras initiative is an educational outreach program that brings financial and fiscal education seminars and courses to Hispanic communities across the nation, at no cost. Courses and seminars are taught in Spanish, and many qualify for college credits through the University of Phoenix.

The Una Familia Sin Fronteras initiative seeks to partner with educators of Hispanic youth and adults, to further enable immigrants to achieve financial success in the United States. If you represent an educational organization that is interested in partnering with Una Familia Sin Fronteras, please contact Ms. Martee Pierson at Liberty Tax Service.

Taxpayers seeking last minute help can find a wide variety of useful products and information from the comfort of their home through the IRS website.

+ IRS.gov is “open” 24 hours a day 7 days a week.
+ The 2011 Filing Season Tax Tips, available on www.IRS.gov, provide a wealth of information and links to help taxpayers meet the deadline.
+ 1040 Central is the comprehensive source for individual income tax information.
+ Interactive Tax Assistant is a tax law resource that guides taxpayers through a series of questions and provides responses on credits, deductions and general filing questions.

The IRS daily filing season tax tips also available on the website provide easy to read plain language information to help taxpayers. Here are a few of the available tax tips covering some of the most common taxpayer questions.

Want to file your return electronically for free?

Free File on IRS.gov is always open – See IRS Tax Tip 2011-11 – Let Free File Do the Hard Work for You.

Want to know more about filing electronically?

Electronic filing is no longer the exception, it’s the norm – See IRS Tax Tip 2011-10 – Prepare and File Your Taxes Electronically

Need more time to file?

Request an Extension until October 17 – See IRS Tax Tip 2011-69 – Seven Things about Getting More Time to File Your Tax Return.

Can’t pay or need an installment agreement?

File on time and the IRS may be able to grant more time to pay – See IRS Tax Tip 2011-64 -Read This if you need More Time to Pay Your Taxes.

Need a form or publication?

No need to call, download it from IRS.gov – See IRS Tax Tip 2011-04 – Five Ways to Obtain IRS Forms and Publications.

Not sure if you have to file a tax return?

Your age, income, marital status all make a difference – See IRS Tax Tip 2011-02 – Do I Have to File a Tax Return?

Need IRS Individual Tax Law Information?

The IRS has a pub for that – See IRS Tax Tip 2011-30 – Six Facts About IRS Publication 17.

Have a question about your refund?

Check out the “Where’s My Refund” tool – See IRS Tax Tip 2011-66 – Ten Things to Know about Tax Refunds.

What other information is available on the IRS website?

Need to know more? – See IRS Tax Tip 2011-05 – Top Ten Reasons to Visit IRS.gov.

Source: irs.gov, Special Edition Tax Tip 2011-02

1. File Electronically IRS e-file: It’s safe. It’s easy. It’s time. IRS e-file is now the norm; not the exception. The number of e-filed Form 1040 tax returns is approaching 1 billion after 20 years of safe, secure service. In 2010, 99 million people – 70 percent of all individual taxpayers – used IRS e-file to electronically transmit their tax returns to the IRS.

2. Check the Identification Numbers Carefully check identification numbers — usually Social Security numbers — for each person listed. This includes you, your spouse, dependents and persons listed in relation to claims for the Child and Dependent Care Credit or Earned Income Tax Credit. Missing, incorrect or illegible Social Security numbers can delay or reduce a tax refund.

3. Double-Check Your Figures If you are filing a paper return, you should double-check that you have correctly figured the refund or balance due.

4. Check the Tax Tables If you are filing using the Free File Fillable Forms or a paper return, double-check that you have used the right figure from the tax table.

5. Sign Your Form You must sign and date your return. Both spouses must sign a joint return, even if only one had income. Anyone paid to prepare a return must also sign it.

6. Mailing Your Return If you are mailing a return, find the correct mailing address at http://www.irs.gov. Click the Individuals tab and the “Where to File” link under IRS Resources on the left side.

7. Mailing a Payment People sending a payment should make the check payable to “United States Treasury” and should enclose it with, but not attach it to, the tax return or the Form 1040-V, Payment Voucher, if used. The check should include the Social Security number of the person listed first on the return, daytime phone number, the tax year and the type of form filed.

8. Electronic Payments Electronic payment options are convenient, safe and secure methods for paying taxes. You can authorize an electronic funds withdrawal, or use a credit or a debit card. For more information on electronic payment options, visithttp://www.irs.gov.

9. Extension to File By the April 18th due date, you should either file a return or request an extension of time to file. Remember, the extension of time to file is not an extension of time to pay.

10. IRS.gov Forms, publications and helpful information on a variety of tax subjects are available at http://www.irs.gov.

Source: irs.gov, Tax Tip 2011-70

“The Dirty Dozen represents the worst of the worst tax scams,” IRS Commissioner Doug Shulman said. “Don’t fall prey to these tax scams. They may look tempting, but these fraudulent deals end up hurting people who participate in them.”

The IRS works with the Justice Department to pursue and shut down perpetrators of these and other illegal scams. Promoters frequently end up facing heavy fines and imprisonment. Meanwhile, taxpayers who wittingly or unwittingly get involved with these schemes must repay all taxes due plus interest and penalties.

Following is the Dirty Dozen for 2011:

Hiding Income Offshore

The IRS aggressively pursues taxpayers involved in abusive offshore transactions as well as the promoters, professionals and others who facilitate or enable these schemes. Taxpayers have tried to avoid or evade U.S. income tax by hiding income in offshore banks, brokerage accounts or through the use of nominee entities. Taxpayers also evade taxes by using offshore debit cards, credit cards, wire transfers, foreign trusts, employee-leasing schemes, private annuities or insurance plans.

In early February, the IRS announced a special voluntary disclosure initiative designed to bring offshore money back into the U.S. tax system and help people with undisclosed income from hidden offshore accounts get current with their taxes. The new voluntary disclosure initiative will be available through Aug. 31, 2011. The IRS decision to open a second special disclosure initiative follows continuing interest from taxpayers with foreign accounts. In response to numerous requests, information about this initiative is available on IRS.gov in eight different languages, including: Chinese, Farsi, German, Hindi, Korean, Russian, Spanish, and Vietnamese.

Identity Theft and Phishing

Identity theft occurs when someone uses an unsuspecting individual’s name, Social Security number, credit card number or other personal information without permission to commit fraud or other crimes. For example, a criminal can use someone else’s information to run up bills on that person’s credit card, empty that person’s bank account or take out a loan in that person’s name. And when it comes to taxes, a criminal with someone else’s personal information can file a fraudulent tax return and collect a refund.

Phishing is one tactic used by scam artists to trick unsuspecting victims into revealing personal or financial information online. Phishing involves the use of phony e-mail or websites — even social media. A scammer may pose as an institution such as the IRS. IRS impersonation schemes flourish during tax season. Spyware, which can be loaded onto an unsuspecting taxpayer’s computer by opening an e-mail attachment or clicking on a link, is another tool identity thieves use to steal personal information.

Identity theft is a major problem that affects many people each year. That’s why it’s important that taxpayers protect their personal information. Anyone who believes his or her personal information has been stolen and used for tax purposes should immediately contact the IRS Identity Protection Specialized Unit at 1-800-908-4490. More information on identity theft and taxes is available on the IRS website.

A suspicious e-mail or an “IRS” Web address that does not begin with http://www.irs.gov should be forwarded to the IRS at phishing@irs.gov.

Return Preparer Fraud

While most return preparers are professionals who provide honest and excellent service to their clients, some make basic errors or engage in fraud and other illegal activities.

Dishonest return preparers can cause big trouble for taxpayers who fall victim to their ploys. These fraudsters derive benefit by skimming a portion of their clients’ refunds, charging inflated fees for return preparation services and attracting new clients by making false promises. Taxpayers should choose carefully when hiring a tax preparer. Federal courts have issued hundreds of injunctions ordering individuals to cease preparing returns, and the Department of Justice has pending complaints against dozens of others.

To increase confidence in the tax system and improve compliance with the tax law, the IRS is implementing a number of requirements for paid tax preparers, including registration with the IRS and a preparer tax identification number (PTIN), as well as competency tests and ongoing continuing professional education.

The new regulations require paid tax preparers (including attorneys, CPAs, and enrolled agents) to apply for a Preparer Tax Identification Number (PTIN) before preparing any federal tax returns in 2011.

Higher standards for the tax preparer community will result in greater compliance with tax laws, increase confidence in the tax system and ultimately lead to a better experience for taxpayers.

Filing False or Misleading Forms

IRS personnel are seeing various instances in which scam artists file false or misleading returns to claim refunds to which they are not entitled. In one variation of this scheme, a taxpayer seeks a refund by fabricating an information return and falsely claiming the corresponding amount as withholding. Phony information returns, such as a Form 1099 Original Issue Discount (OID), which claims false withholding credits, are usually used to legitimize erroneous refund claims. One version of the scheme is based on the bogus theory that the federal government maintains secret accounts for its citizens and that taxpayers can gain access to funds in those accounts by issuing 1099-OID forms to their creditors, including the IRS.

The IRS continues to see instances in which people file false or fraudulent tax returns to try to obtain improper tax refunds. The IRS takes refund fraud seriously, has programs to aggressively combat it and stops the vast majority of incorrect refunds.

Because scammers often use information from family or friends in filing false or fraudulent returns, beware of requests for such data. Don’t fall prey to people who encourage you to claim deductions or credits you are not entitled to or willingly allow others to use your information to file false returns. If you are a party to such schemes, you could be liable for financial penalties or even face criminal prosecution.

Frivolous Arguments

Promoters of frivolous schemes encourage people to make unreasonable and outlandish claims to avoid paying the taxes they owe. The IRS has a list of frivolous legal positions that taxpayers should avoid. These arguments are false and have been thrown out of court. While taxpayers have the right to contest their tax liabilities in court, no one has the right to disobey the law or IRS guidance.

Nontaxable Social Security Benefits with Exaggerated Withholding Credit

The IRS has identified returns where taxpayers report nontaxable Social Security Benefits with excessive withholding. This tactic results in no income reported to the IRS on the tax return. Often both the withholding amount and the reported income are incorrect. Taxpayers should avoid making these mistakes. Filings of this type of return may result in a $5,000 penalty.

Abuse of Charitable Organizations and Deductions

The IRS continues to observe the misuse of tax-exempt organizations. Abuse includes arrangements to improperly shield income or assets from taxation and attempts by donors to maintain control over donated assets or income from donated property. The IRS also continues to investigate various schemes involving the donation of non-cash assets including situations where several organizations claim the full value for both the receipt and distribution of the same non-cash contribution. Often these donations are highly overvalued or the organization receiving the donation promises that the donor can repurchase the items later at a price set by the donor. The Pension Protection Act of 2006 imposed increased penalties for inaccurate appraisals and set new definitions of qualified appraisals and qualified appraisers for taxpayers claiming charitable contributions.

Abusive Retirement Plans

The IRS continues to find abuses in retirement plan arrangements, including Roth Individual Retirement Arrangements (IRAs). The IRS is looking for transactions that taxpayers use to avoid the limits on contributions to IRAs, as well as transactions that are not properly reported as early distributions. Taxpayers should be wary of advisers who encourage them to shift appreciated assets at less than fair market value into IRAs or companies owned by their IRAs to circumvent annual contribution limits. Other variations have included the use of limited liability companies to engage in activity that is considered prohibited.

Disguised Corporate Ownership

Corporations and other entities are formed and operated in certain states for the purpose of disguising the ownership of the business or financial activity by means such as improperly using a third party to request an employer identification number.

Such entities can be used to facilitate underreporting of income, fictitious deductions, non-filing of tax returns, participating in listed transactions, money laundering, financial crimes and even terrorist financing. The IRS is working with state authorities to identify these entities and to bring the owners of these entities into compliance with the law.

Zero Wages

Filing a phony wage-or-income-related informational return to replace a legitimate information return has been used as an illegal method to lower the amount of taxes owed. Typically, a Form 4852 (Substitute Form W-2) or a “corrected” Form 1099 is used as a way to improperly reduce taxable income to zero. The taxpayer may also submit a statement rebutting wages and taxes reported by a payer to the IRS.

Sometimes, fraudsters even include an explanation on their Form 4852 that cites statutory language on the definition of wages or may include some reference to a paying company that refuses to issue a corrected Form W-2 for fear of IRS retaliation. Taxpayers should resist any temptation to participate in any of the variations of this scheme. Filings of this type of return may result in a $5,000 penalty.

Misuse of Trusts

For years, unscrupulous promoters have urged taxpayers to transfer assets into trusts. While there are many legitimate, valid uses of trusts in tax and estate planning, some highly questionable transactions promise reduction of income subject to tax, deductions for personal expenses and reduced estate or gift taxes. Such trusts rarely deliver the tax benefits promised and are used primarily as a means to avoid income tax liability and hide assets from creditors, including the IRS.

IRS personnel have recently seen an increase in the improper use of private annuity trusts and foreign trusts to shift income and deduct personal expenses. As with other arrangements, taxpayers should seek the advice of a trusted professional before entering a trust arrangement.

Fuel Tax Credit Scams

The IRS receives claims for the fuel tax credit that are excessive. Some taxpayers, such as farmers who use fuel for off-highway business purposes, may be eligible for the fuel tax credit. But other individuals are claiming the tax credit for nontaxable uses of fuel when their occupations or income levels make the claim unreasonable. Fraud involving the fuel tax credit is considered a frivolous tax claim and can result in a penalty of $5,000.

How to Report Suspected Tax Fraud Activity

Suspected tax fraud can be reported to the IRS using Form 3949-A, Information Referral. The completed form or a letter detailing the alleged fraudulent activity should be addressed to the Internal Revenue Service, Fresno, CA 93888. The mailing should include specific information about who is being reported, the activity being reported, how the activity became known, when the alleged violation took place, the amount of money involved and any other information that might be helpful in an investigation. The identity of the person filing the report can be kept confidential.

Whistleblowers also may provide allegations of fraud to the IRS and may be eligible for a reward by filing Form 211, Application for Award for Original Information, and following the procedures outlined in Notice 2008-4, Claims Submitted to the IRS Whistleblower Office under Section 7623.

Source: irs.gov, IR-2011-39

Here are seven important things you need to know about filing an extension:

1. File on time even if you can’t pay If your return is completed but you are unable to pay the full amount of tax due, do not request an extension. File your return on time and pay as much as you can. The IRS will send you a bill or notice for the balance due. To apply online for a payment agreement, go to the IRS website at http://www.irs.gov and click “Apply for an Online Payment Agreement (OPA)” at the left side of the home page under Online Services. If you are unable to make payments, call the IRS at 800-829-1040 to discuss your options.

2. Extra time to file An extension will give you extra time to get your paperwork to the IRS, but it does not extend the time you have to pay any tax due. You will owe interest on any amount not paid by the April 18 deadline, plus you may owe penalties.

3. Form to file Request an extension to file by submitting Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, to the IRS by April 18, 2011, or make an extension-related electronic credit card payment. For more information about extension-related credit card payments, see Form 4868.

4. E-file extension You can e-file an extension request using tax preparation software with your own computer or by going to a tax preparer who has the software. The IRS will acknowledge receipt of the extension request if you file by computer.

5. Traditional Free File and Free File Fillable Forms You can use both Free File options to file an extension. Access the Free File page at http://www.irs.gov.

6. Electronic funds withdrawal If you ask for an extension via computer, you can also choose to pay any expected balance due by authorizing an electronic funds withdrawal from a checking or savings account. You will need the appropriate bank routing and account numbers. For information about these and other methods of payment, visit the IRS website at http://www.irs.gov or call 800-TAX-1040 (800-829-1040).

7. How to get forms Form 4868 is available for download from the IRS website or may be ordered by calling 800-TAX-FORM (800-829-3676).You can also obtain the form at your local IRS office. Telephone requests normally take 7 – 15 days to process and ship.

Source: irs.gov, Tax Tip 2011-69

El VALHEN Encuentro 2011 fue realizado del 24 al 25 de marzo en la Universidad Comunitaria del Norte de Virginia en Annandale, VA. El tema de este año fue Latinos – Creciendo y Brindando Éxito en Virginia. Los conferencistas de apertura fueron el Dr. Michael Olivas, J.D. y Ph.D., y el Sr. Juan Sepulveda, Director de la Iniciativa de la Casa Blanca en Excelencia Educativa para Hispanoamericanos. Liberty Tax Service fue uno de los patrocinadores principales del evento, y participó activamente como expositor en la conferencia. La Sra. Martee Pierson, Directora de Programas de Diversidad de Liberty Tax Service y Directora Ejecutiva de la Fundación Una Familia Fronteras, presentó una sesión sobre la Importancia Empresarial, junto con la Dra. Marcela Chavan-Matviuk, Ph.D. y la Dra. Mavel Velasco, Ph.D. Los temas claves de esta sesión incluyeron a las Dras. Velasco y Chavan-Matviuk introduciendo la adaptación natural empresarial como una parte típica del “DNA” Latino, debido a la larga tradición de iniciativa empresarial innovadora y exitosa a través de Latino América, así como las barreras culturales que pueden crear un sentimiento de riesgo-adverso entre nuestros nuevos inmigrantes.

La Sra. Pierson propuso y racionalizó la extensión de clases de GED y ESL existentes, que son muy populares con Latinos, para poder incluir educación sobre responsabilidad fiscal y financiera, así como entrenamiento. La premisa de la presentación de la Sra. Pierson fue que los estudiantes Latinos ya están en virtud físicamente y psicológicamente preparados para aprender a asistir a estas clases; por lo tanto tendría sentido proporcionarles herramientas educativas que les ayudarán a crecer y prosperar económicamente.

Uno de los momentos más destacados fue la presentación de las becas para el año escolar del 2011-2012 de VALHEN, un evento anual llevado a cabo por segunda vez. Dos estudiantes meritorios recibieron una beca de $1000 cada uno, recaudada por VALHEN. Tres estudiantes adicionales recibieron becas de $500, auspiciadas por Liberty Tax Service y su iniciativa y Fundación de Una Familia Sin Fronteras a través de una generosa donación.

“VALHEN es un organización muy respetada cuyas metas son completamente enlazadas con los valores e intenciones de la iniciativa y Fundación Hispana de Liberty,” explica la Sra. Pierson. “Siempre es un placer trabajar con este tipo de organizaciones que traen educación, inspiración y poder a través de la educación a nuestras comunidades Hispanas.”

La iniciativa Una Familia Sin Fronteras de Liberty es un programa educacional para la comunidad que proporciona seminarios y cursos financieros y fiscales para comunidades Hispanas alrededor de la nación sin costo alguno. Los cursos y seminarios son presentados en español y podrían calificar para créditos universitarios a través de la Universidad de Phoenix.

La iniciativa Una Familia Sin Fronteras forma alianzas con educadores de jóvenes y adultos Hispanos para facilitar que los inmigrantes logren obtener éxito financiero en los Estados Unidos. Si usted representa una organización educacional y está interesado en establecer una alianza con Una Familia Sin Fronteras, por favor comuníquese con Sra. Martee Pierson.

1. Additional Time to Pay Based on your circumstances, you may be granted a short additional time to pay your tax in full. A brief additional amount of time to pay can be requested through the Online Payment Agreement application at http:www.IRS.gov or by calling 800-829-1040. Taxpayers who request and are granted an additional 60 to 120 days to pay the tax in full generally will pay less in penalties and interest than if the debt were repaid through an installment agreement over a greater period of time.

2. Installment Agreement You can apply for an IRS installment agreement using the Web-based Online Payment Agreement application on IRS.gov. This Web-based application allows taxpayers who owe $25,000 or less in combined tax, penalties and interest to self-qualify, apply for, and receive immediate notification of approval. You can also request an installment agreement before your current tax liabilities are actually assessed by using OPA. The OPA option provides you with a simple and convenient way to establish an installment agreement and eliminates the need for personal interaction with IRS and reduces paper processing. You may also complete and submit a Form 9465, Installment Agreement Request, make your request in writing, or call 1-800-829-1040 to make your request. For balances over $25,000, you are required to complete a financial statement to determine the monthly payment amount for an installment plan. For more complete information see Tax Topic 202, Tax Payment Options on http.www.IRS.gov.

3. Pay by Credit Card or Debit Card You can charge your taxes on your American Express, MasterCard, Visa or Discover credit cards. Additionally, you can pay by using your debit card. However, the debit card must be a Visa Debit Card, or a NYCE, Pulse or Star Debit Card. To pay by credit card or debit card, contact one of the service providers at its telephone number or Web site listed below and follow the instructions. There is no IRS fee for credit or debit card payments, but the processing companies charge a convenience fee or flat fee. If you are paying by credit card, the service providers charge a convenience fee based on the amount you are paying. If you are paying by debit card, the service providers charge a flat fee of $3.89 to $3.95. Do not add the convenience fee or flat fee to your tax payment.

The processing companies are:

Link2Gov Corporation:

To pay by debit or credit card: 888-PAY-1040 (888-729-1040), www.pay1040.com

RBS WorldPay, Inc.

To pay by debit or credit card: 888-9PAY-TAX (888-972-9829), www.payUSAtax.com

Official Payments Corporation:

To pay by debit or credit card: 888-UPAY-TAX (888-872-9829), www.officialpayments.com/fed

For more information about filing and paying your taxes, visit http:www.IRS.gov and choose 1040 Central or refer to the Form 1040 Instructions or IRS Publication 17, Your Federal Income Tax. You can download forms and publications at http://www.irs.gov or request a free copy by calling 800-TAX-FORM (800-829-3676).

Source: irs.gov, Tax Tip 2011-68

The guidance allows recipients of qualified disaster relief payments to exclude those payments from income on their tax returns. Also, the guidance allows employer-sponsored private foundations to assist employee victims in areas affected by the March 2011 earthquake and tsunami in Japan without affecting their tax-exempt status.

Charities usually fall into one of two categories – public charities or private foundations. Under the tax law, a private foundation that is employer-sponsored may make qualified disaster relief payments to employees affected by a qualified disaster. These payments generally include amounts to cover necessary personal, family, living or funeral expenses that were not covered by insurance. They also include expenses to repair or rehabilitate personal residences or repair or replace the contents to the extent that they were not covered by insurance. Again, these payments would not be included in the individual recipient’s gross income.

Qualified disasters include Presidentially declared disasters, as well as other catastrophic events. Because of its catastrophic nature, the IRS has determined that the earthquake and tsunami in Japan that occurred last month is a qualified disaster for purposes of the federal tax law. The IRS has made similar determinations regarding prior international disasters, such as the Haitian earthquake in 2010 and the Indian Ocean tsunami in 2004.

The IRS will presume that qualified disaster relief payments made by an employer-sponsored private foundation to employees and their family members in areas affected by the earthquake and tsunami in Japan are consistent with the foundation’s charitable purposes.

Today’s guidance does not affect individuals interested in contributing to victims of the Japan earthquake and tsunami. The IRS reminds taxpayers that there are some simple steps they can take to ensure that their contributions go to charities eligible to receive tax-deductible contributions. The IRS has posted more information on IRS.gov.

Source: irs.gov, IR-2011-37

1. Never send cash!

2. If you file electronically, you can file and pay in a single step by authorizing an electronic funds withdrawal via tax preparation software or a tax professional.

3. Whether you file a paper return or electronically, you can pay by phone or online using a credit or debit card.

4. Electronic payment options provide an alternative to paying taxes or user fees by check or money order. You can make payments 24 hours a day, seven days a week. Visit the IRS website at http://www.irs.gov and search e-pay, or refer to Publication 3611, IRS e-File Electronic Payments for more details.

5. If you itemize, you may be able to deduct the convenience fee charged for paying individual income taxes with a credit or debit card as a miscellaneous itemized deduction on Form 1040, Schedule A, Itemized Deductions. The deduction is subject to the 2 percent limit.

6. Enclose your payment with your return but do not staple it to the form.

7. If you pay by check or money order, make sure it is payable to the “United States Treasury.”

8. Always provide your correct name, address, Social Security number listed first on the tax form, daytime telephone number, tax year and form number on the front of your check or money order.

9. Complete and include Form 1040-V, Payment Voucher, when mailing your payment to the IRS. Double-check the IRS mailing address. This will help the IRS process your payment accurately and efficiently.

10. For more information, call 800-829-4477 and select TeleTax Topic 158, Ensuring Proper Credit of Payments. You can also find out more in Publication 17, Your Federal Income Tax and Form 1040-V, both available at http://www.irs.gov.

Source: irs.gov, Tax Tip 2011-67

As of March 25, the IRS has received more than 82 million individual income tax returns, which is 58 percent of the 141 million returns expected this year. The IRS has received about the same number of returns so far this year as it did at this time last year, while processing of returns is up 3 percent from the same time last year.

Numerous economic recovery tax credits are also still available. The IRS reminded taxpayers that for some credits, such as the Making Work Pay Credit, individuals must claim the $400 ($800 for married couples) in order to receive it. (Use Schedule M to calculate your Making Work Pay credit.)

Usually, 20 to 25 percent of all taxpayers file in the final two weeks of the tax season. And, usually, about 7 percent of taxpayers seek a six-month extension to file.

Taxpayers have an extra weekend to file this year because of a District of Columbia holiday. The deadline for 2011 is Monday April 18, instead of April 15.

The IRS offered these filing tips as the final countdown begins:

+ Start now to gather information and prepare your return to avoid hasty and possibly costly errors;

+ Many tax credits from the American Recovery and Reinvestment Act (ARRA) are available. There’s an expanded American Opportunity Credit of up to $2,500 for tuition, books and fees; a larger energy credit of up to $1,500 and an expanded Earned Income Tax Credit for larger families of up to $5,666. The $8,000 first-time homebuyer credit is still available for people who entered into a binding contract by April 30, 2010, and went to settlement by September 30, 2010;

+ Consider using IRS Free File, which is brand-name software or online fillable forms, to prepare and e-file your returns – at no charge. Software is available to the 70 percent of taxpayers – those who earn $58,000 or less. And, fillable forms have no income limitations. Get started at IRS Free File;

+ File electronically to get a faster refund, have secure, encrypted transmission and a more accurate tax return. You can e-file through your tax preparer, through commercial software or through IRS Free File;

+ If you cannot meet the April 18 deadline, file an extension, Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return. All taxpayers can use Free File to submit a Form 4868 for an automatic six-month extension. And, Free File will be available through the October 17 extension deadline for late filers.

+ The six-month extension is to file a return only; it is not an extension to pay taxes due. If you are unable to pay your taxes, file a tax return anyway to lessen the penalties and pay all that you can. Then work with the IRS to set up a payment plan or you can go to IRS.gov and use the Online Payment Agreement Application.

In addition to Free File, the IRS offers other free tax help services through volunteers at 12,000 sites nationwide. The Volunteer Income Tax Assistance (VITA) sites serve taxpayers whose 2010 incomes were $49,000 or less. Tax Counseling for the Elderly sites serve taxpayers who are 60 and older.

Source: irs.gov, IR-2011-35

1. Refund Options You have three options for receiving your individual federal income tax refund: direct deposit, U.S. Savings Bonds or a paper check. You can now use your refund to buy up to $5,000 in U.S. Series I Savings Bonds in multiples of $50.

2. Separate Accounts You may use Form 8888, Allocation of Refund (Including Savings Bond Purchases), to request that your refund be allocated by direct deposit among up to three separate accounts, such as checking or savings or retirement accounts. You may also use this form to buy U.S Savings Bonds.

3. Tax Return Processing Times If you file a complete and accurate paper tax return, your refund will usually be issued within six to eight weeks from the date it is received. If you filed electronically, your refund will normally be issued within three weeks after the acknowledgment date.

4. Check the Status Online The fastest and easiest way to find out about your current year refund is to go to IRS.gov and click the “Where’s My Refund?” link at the IRS.gov home page. To check the status online you will need your Social Security number, filing status and the exact whole dollar amount of your refund shown on your return.

5. Check the Status By Phone You can check the status of your refund by calling the IRS Refund Hotline at 800–829–1954. When you call, you will need to provide your Social Security number, your filing status and the exact whole dollar amount of the refund shown on your return.

6. Check the Status with IRS2Go IRS2Go is a smartphone application that lets you interact with the IRS using your mobile device. Apple users can download the free IRS2Go application by visiting the Apple App Store. Android users can visit the Android Marketplace to download the free IRS2Go app. Simply enter your Social Security number, which will be masked and encrypted for security purposes, then select your filing status and the exact whole dollar amount of your refund shown on your return.

7. Delayed Refund There are several reasons for delayed refunds. For things that may delay the processing of your return, refer to Tax Topic 303 available on the IRS website at http://www.irs.gov, which includes a Checklist of Common Errors When Preparing Your Tax Return.

8. Larger than Expected Refund If you receive a refund to which you are not entitled, or one for an amount that is more than you expected, do not cash the check until you receive a notice explaining the difference. Follow the instructions on the notice.

9. Smaller than Expected Refund If you receive a refund for a smaller amount than you expected, you may cash the check. If it is determined that you should have received more, you will later receive a check for the difference. If you did not receive a notice and you have questions about the amount of your refund, wait two weeks after receiving the refund, then call 800–829–1040.

10. Missing Refund The IRS will assist you in obtaining a replacement check for a refund check that is verified as lost or stolen. If the IRS was unable to deliver your refund because you moved, you can change your address online. Once your address has been changed, the IRS can reissue the undelivered check.

Source: irs.gov, Tax Tip 2011-66

Form 8939, Allocation of Increase in Basis for Property Acquired from a Decedent, is an informational return used to establish basis for income tax purposes of property acquired from a person who died in 2010.

Under the Economic Growth and Tax Relief Reconciliation Act of 2001, the estate tax was repealed for persons who died in 2010. The executors of the estates of certain decedents who died in 2010 were previously required to file an information return (Form 8939) relating to large transfers at death, which was due on the date of the decedent’s final Form 1040 or a later date specified in regulations issued by the Treasury Department.

Enacted in December of last year, the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 reinstated the estate tax for persons who died in 2010. The law allows executors of the estates of decedents who died in 2010 to elect to have the rules of the estate tax not apply to the property of a decedent’s estate. This election is to be made at the time and in the manner prescribed by the Treasury Department.

Treasury and the IRS plan to issue future guidance that will provide a deadline for filing Form 8939 and for electing to have the estate tax rules not apply to the estates of persons who died in 2010. The prior deadline was April 18, which remains the deadline for filing a decedent’s final Form 1040 this filing season. The forthcoming guidance will also explain the manner in which an executor of an estate may elect to have the estate tax not apply.

A reasonable period of time for preparation and filing will be given between issuance of the guidance and the deadline for filing Form 8939 and for electing to have the estate tax rules not apply. The Form 8939 is not currently available, but will be made available soon after the guidance is issued. Both will be made available on IRS.gov.

Source: irs.gov, IR-2011-33

These six tips from the IRS will provide you with a quick look at estimated taxes and how to pay them:

1. If you have income from sources such as self-employment, interest, dividends, alimony, rent, gains from the sales of assets, prizes or awards, then you may have to pay estimated tax.

2. As a general rule, you must pay estimated taxes in 2011 if both of these statements apply: 1) You expect to owe at least $1,000 in tax after subtracting your tax withholding (if you have any) and credits, and 2) You expect your withholding and credits to be less than the smaller of 90% of your 2011 taxes or 100% of the tax on your 2010 return. There are special rules for farmers, fishermen, certain household employers and certain higher income taxpayers.

3. For Sole Proprietors, Partners and S Corporation shareholders, you generally have to make estimated tax payments if you expect to owe $1,000 or more in tax when you file your return.

4. To figure your estimated tax, include your expected gross income, taxable income, taxes, deductions and credits for the year. Use the worksheet in Form 1040ES, Estimated Tax for Individuals for this. You want to be as accurate as possible to avoid penalties. Also, consider changes in your situation and recent tax law changes.

5. The year is divided into four payment periods, or due dates, for estimated tax purposes. Those dates generally are April 15, June 15, Sept. 15 and Jan. 15.

6. Form 1040ES, Estimated Tax for Individuals, provides all you’ll need to pay estimated taxes. This includes instructions, worksheets, schedules and payment vouchers. The easiest way to pay estimated taxes, however, is electronically through the Electronic Federal Tax Payment System or EFTPS. You can also pay estimated taxes by check or money order using the Estimated Tax Payment Voucher or by credit or debit card.

Source: irs.gov, Tax Tip 2011-65

Here are the top 10 things the IRS wants you to know if you need more time to pay your taxes:

1. Taxpayers who are unable to pay all taxes due are encouraged to pay as much as possible. By paying as much as possible now, the amount of interest and penalties owed will be less.

2. Based on the circumstances, a taxpayer could qualify for an extension of time to pay, an installment agreement, temporary delay or an Offer in Compromise.

3. If you cannot pay the full amount, taxpayers should immediately call the number or write to the address on the bill they receive.

4. You may want to consider financing the full payment of your tax liability through a loan. The interest rate and fees charged by a bank or credit card company are usually lower than interest and penalties imposed by the Internal Revenue Code.

5. If you cannot pay in full immediately, you may qualify for a short amount of additional time, up to 120 days, to pay in full. No fee is charged for this type of payment arrangement and this option may minimize the amount of penalties and interest you incur.

6. You may also want to consider an installment agreement. This arrangement allows you to make monthly payments after a one-time fee of $105 is paid. If you choose to pay through a Direct Debit from your bank account, the fee is reduced to $52. Lower-income taxpayers may qualify for a reduced fee of $43.

7. To apply for an installment agreement you can use the Online Payment Agreement application available on the IRS website; file a Form 9465, Installment Agreement Request; or call the IRS at the telephone number shown on your bill.

8. In some cases, a taxpayer may qualify for an offer in compromise, an agreement between the taxpayer and the IRS that settles the taxpayer’s tax liabilities for less than the full amount owed. Generally, an offer will not be accepted if the IRS believes that the liability can be paid in full as a lump sum or through a payment agreement.

9. Even if you set up an installment agreement, the IRS may still file a Notice of Federal Tax Lien to secure the government’s interest until you make the final payment.

10. It is important to respond to an IRS notice. If you do not pay your tax liability in full or make an alternative payment arrangement, the IRS is entitled to take collection action.

Source: irs.gov, Tax Tip 2011-64

1. Incorrect or missing Social Security Numbers When entering SSNs for anyone listed on your tax return, be sure to enter them exactly as they appear on the Social Security cards.

2. Incorrect or misspelling of dependent’s last name When entering a dependent’s last name on your tax return, ensure they are entered exactly as they appear on their Social Security card.

3. Filing status errors Make sure you choose the correct filing status for your situation. There are five filing statuses: Single, Married Filing Jointly, Married Filing Separately, Head of Household, and Qualifying Widow(er) With Dependent Child. See Publication 501, Exemptions, Standard Deduction, and Filing Information to determine the filing status that best fits your needs.

4. Math errors When preparing paper returns, review all math for accuracy. Or file electronically; the software does the math for you!

5. Computation errors Take your time. Many taxpayers make mistakes when figuring their taxable income, withholding and estimated tax payments, Earned Income Tax Credit, Standard Deduction for age 65 or over or blind, the taxable amount of Social Security benefits, and the Child and Dependent Care Credit.

6. Incorrect bank account numbers for Direct Deposit If you are due a refund and requested direct deposit review the routing and account numbers for your financial institution.

7. Forgetting to sign and date the return An unsigned tax return is like an unsigned check – it is invalid. And, remember on joint returns both taxpayers must sign the return.

8. Incorrect Adjusted Gross Income information Taxpayers filing electronically must sign the return electronically using a Personal Identification Number. To verify their identity, taxpayers will be prompted to enter their AGI from their originally filed 2009 federal income tax return or their prior year PIN if they used one to file electronically last year. Taxpayers should not use an AGI amount from an amended return, Form 1040X, or a math error correction made by IRS.

9. Claiming the Making Work Pay Tax Credit Taxpayers who file Form 1040 or 1040A will use Schedule M to figure the Making Work Pay Tax Credit. Completing Schedule M will help taxpayers determine whether they have already received the full credit in their paycheck or are due more money as a result of the credit. Taxpayers who file Form 1040-EZ should use the worksheet for Line 8 on the back of the 1040-EZ to figure their Making Work Pay Credit.

Source: irs.gov, Tax Tip 2011-63

The Affordable Care Act provides that employers are required to report the cost of employer-provided health care coverage on the Form W-2. Notice 2010-69, issued last fall, made this requirement optional for all employers for the 2011 Forms W-2 (generally furnished to employees in January 2012). In today’s guidance, the IRS provided further relief for smaller employers (those filing fewer than 250 W-2 forms) by making this requirement optional for them at least for 2012 (i.e., for 2012 Forms W-2 that generally would be furnished to employees in January 2013) and continuing this optional treatment for smaller employers until further guidance is issued.

Using a question-and-answer format, Notice 2011-28 also provides guidance for employers that are subject to this requirement for the 2012 Forms W-2 and those that choose to voluntarily comply with it for either 2011 or 2012. The notice includes information on how to report, what coverage to include and how to determine the cost of the coverage.

The 2011 Form W-2, prior IRS Notice 2010-69 deferring the reporting requirement for 2011, and Notice 2011-28 containing the new guidance are available on IRS.gov.

Source: irs.gov, IR-2011-31

1. Most gifts are not subject to the gift tax. For example, there is usually no tax if you make a gift to your spouse or to a charity. If you make a gift to someone else, the gift tax usually does not apply until the value of the gifts you give that person exceeds the annual exclusion for the year. For 2010, the annual exclusion is $13,000.

2. Gift tax returns do not need to be filed unless you give someone, other than your spouse, money or property worth more than the annual exclusion for that year.

3. Generally, the person who receives your gift will not have to pay any federal gift tax because of it. Also, that person will not have to pay income tax on the value of the gift received.

4. Making a gift does not ordinarily affect your federal income tax. You cannot deduct the value of gifts you make (other than gifts that are deductible charitable contributions).

5. The general rule is that any gift is a taxable gift. However, there are many exceptions to this rule. The following gifts are not taxable gifts:

- Gifts that are not more than the annual exclusion for the calendar year,
- Tuition or medical expenses you pay directly to a medical or educational institution for someone,
- Gifts to your spouse,
- Gifts to a political organization for its use, and
- Gifts to charities.

6. Gift Splitting – you and your spouse can make a gift up to $26,000 to a third party without making a taxable gift. The gift can be considered as made one-half by you and one-half by your spouse. If you split a gift you made, you must file a gift tax return to show that you and your spouse agree to use gift splitting. You must file a Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, even if half of the split gift is less than the annual exclusion.

7. Gift Tax Returns – you must file a gift tax return on Form 709, if any of the following apply:

- You gave gifts to at least one person (other than your spouse) that are more than the annual exclusion for the year.
- You and your spouse are splitting a gift.
- You gave someone (other than your spouse) a gift of a future interest that he or she cannot actually possess, enjoy, or receive income from until some time in the future.
- You gave your spouse an interest in property that will terminate due to a future event.

8. You do not have to file a gift tax return to report gifts to political organizations and gifts made by paying someone’s tuition or medical expenses.

Source: irs.gov, Tax Tip 2011-62

Here are the top 10 things the Internal Revenue Service wants you to know about setting aside retirement money in an IRA:

1. You may be able to deduct some or all of your contributions to your IRA. You may also be eligible for the Savers Credit formally known as the Retirement Savings Contributions Credit.

2. Contributions can be made to your traditional IRA at any time during the year or by the due date for filing your return for that year, not including extensions. For most people, this means contributions for 2010 must be made by April 18, 2011. Additionally, if you make a contribution between Jan. 1 and April 18, you should designate the year targeted for that contribution.

3. The funds in your IRA are generally not taxed until you receive distributions from that IRA.

4. Use the worksheets in the instructions for either Form 1040A or Form 1040 to figure your deduction for IRA contributions.

5. For 2010, the most that can be contributed to your traditional IRA is generally the smaller of the following amounts: $5,000 or $6,000 for taxpayers who were 50 or older at the end of 2010 or the amount of your taxable compensation for the year.

6. Use Form 8880, Credit for Qualified Retirement Savings Contributions, to determine whether you are also eligible for a tax credit equal to a percentage of your contribution.

7. You must use either Form 1040A or Form 1040 to claim the Credit for Qualified Retirement Savings Contributions or if you deduct an IRA contribution.

8. You must be under age 70 1/2 at the end of the tax year in order to contribute to a traditional IRA.

9. You must have taxable compensation, such as wages, salaries, commissions, tips, bonuses, or net income from self-employment to contribute to an IRA. If you file a joint return, generally only one of you needs to have taxable compensation. However, see Spousal IRA Limits in IRS Publication 590, Individual Retirement Arrangements for additional rules.

10. Refer to IRS Publication 590, for more information on contributing to your IRA account.

SOURCE: irs.gov, Tax TIp 2011-61

Five Free File companies can handle returns filed from foreign addresses. This means both U.S. citizens and resident aliens living abroad with adjusted gross incomes of $58,000 or less can use brand-name software to prepare their returns and then e-file them for free.

This option may be especially attractive to taxpayers living and working abroad who claim the foreign earned income exclusion. That’s because the $58,000 income limit applies after the exclusion of up to $91,500 is subtracted, thus effectively making Free File available to many higher-income taxpayers. Eligible taxpayers claiming this exclusion on Form 2555 or the foreign tax credit on Form 1116 should check their software to ensure it supports these forms.

To get started, go to www.irs.gov/freefile and select “Pick a Free File Company.” Taxpayers also can use Free File to request an extension if they cannot meet the regular tax deadline. Free File will be open until Oct. 17, 2011 to accommodate taxpayers who get the regular six-month tax-filing extension, as well as people taking advantage of the special June 15 tax-filing deadline available to taxpayers who live and work outside the U.S.

The IRS reminds U.S. citizens and resident aliens that federal law requires them to report income from all sources, both foreign and domestic, including income from foreign trusts and foreign bank and securities accounts. In most cases, affected taxpayers also need to fill out Part III of Schedule B, including reporting the country or countries in which the accounts are located.

In addition, taxpayers with foreign accounts whose aggregate value exceeded $10,000 at any time during 2010 must file Treasury Department Form TD F 90-22.1. This form is due June 30, 2011, and is filed with the Treasury Department. Details on this requirement are in Publication 4261, Do You Have a Foreign Financial Account?

The IRS today again urged taxpayers who, in the past, failed to disclose foreign accounts or report foreign income to take advantage of the agency’s new Offshore Voluntary Disclosure Initiative. Announced last month and available for a limited time only, this special initiative is designed to bring offshore money back into the U.S. tax system and help people with undisclosed income from hidden offshore accounts get current with their taxes. Taxpayers participating in the new initiative must file all returns and pay any taxes, interest and accuracy-related penalties due by Aug. 31, 2011. Full details are on IRS.gov.

Source: irs.gov, IR-2011-30

Here are seven facts the IRS wants you to know about claiming injured spouse relief:

1. To be considered an injured spouse, you must have made and reported tax payments, such as federal income tax withheld from wages or estimated tax payments, or claimed a refundable tax credit, such as the earned income credit or additional child tax credit on the joint return, and not be legally obligated to pay the past-due amount.

2. If you live in a community property state, special rules apply. For more information about the factors used to determine whether you are subject to community property laws, see IRS Publication 555, Community Property.

3. If you filed a joint return and you’re not responsible for the debt, but you are entitled to a portion of the refund you may request your portion of the refund by filing Form 8379, Injured Spouse Allocation.

4. You may file form 8379 along with your original tax return or your may file it by itself after you are notified of an offset.

5. You can file the Form 8379 electronically. If you file a paper tax return you can include Form 8379 with your return, write “INJURED SPOUSE” at the top left corner of the Form 1040, 1040A, or 1040EZ. IRS will process your allocation request before an offset occurs.

6. If you are filing Form 8379 by itself, it must show both spouses’ social security numbers in the same order as they appeared on your income tax return. You, the “injured” spouse, must sign the form.

7. Do not use Form 8379 if you are claiming innocent spouse relief. Instead, file Form 8857, Request for Innocent Spouse Relief. This relief from a joint liability applies only in certain limited circumstances. IRS Publication 971, Innocent Spouse Relief, explains who may qualify, and how to request this relief.

Source: irs.gov, Tax Tip 2011-60

Here are seven important facts the IRS wants you to know about tax refund offsets:

1. If you owe federal or state income taxes your refund will be offset to pay those taxes. If you had other debt such as child support or student loan debt that was submitted for offset, FMS will take as much of your refund as is needed to pay off the debt, and send it to the agency authorized to collect the debt. Any portion of your refund remaining after an offset will be refunded to you.

2. You will receive a notice if an offset occurs. The notice will reflect the original refund amount, your offset amount, the agency receiving the payment, and the address and telephone number of the agency.

3. You should contact the agency shown on the notice if you believe you do not owe the debt or you are disputing the amount taken from your refund.

4. If you filed a joint return and you’re not responsible for the debt, but you are entitled to a portion of the refund, you may request your portion of the refund by filing IRS Form 8379, Injured Spouse Allocation. Attach Form 8379 to your original Form 1040, Form 1040A, or Form 1040EZ or file it by itself after you are notified of an offset.

5. If you file a Form 8379 with your return, write “INJURED SPOUSE” at the top left corner of the Form 1040, 1040A, or 1040EZ. IRS will process your allocation request before an offset occurs.

6. If you are filing Form 8379 by itself, it must show both spouses’ social security numbers in the same order as they appeared on your income tax return. You, the “injured” spouse, must sign the form. Do not attach the previously filed Form 1040 to the Form 8379. Send Form 8379 to the Service Center where you filed your original return.

7. The IRS will compute the injured spouse’s share of the joint return for you. Contact the IRS only if your original refund amount shown on the FMS offset notice differs from the refund amount shown on your tax return.

Follow the instructions on Form 8379 carefully and be sure to attach the required forms to avoid delays. If a notice is not received contact the Financial Management Service at 800–304–3107, Monday through Friday from 7:30AM to 5 PM (Central Time).

Source: irs.gov, Tax Tip 2011-59

“TAP members are a voice for the nation’s taxpayers and provide valuable insights that are important to effective tax administration,” said IRS Commissioner Doug Shulman.

The TAP provides a forum for taxpayers from all 50 states, the District of Columbia and Puerto Rico to raise concerns about IRS service and offer suggestions for improvement. The TAP reports annually to the Secretary of the Treasury, the IRS Commissioner and the National Taxpayer Advocate. The Office of the Taxpayer Advocate, an independent organization within the IRS, provides oversight and funding for the TAP.

“In trying to comply with an increasingly complex tax system, taxpayers may find they need different services than the IRS is currently providing,” said Nina E. Olson, National Taxpayer Advocate. “The TAP is vital because it provides the IRS with the taxpayers’ perspective as well as recommendations for improvement that will help the IRS deliver the best possible service to assist taxpayers in meeting their tax obligations.”

To be a member of the TAP you must be a U.S. citizen, current with your federal tax obligations, able to commit 300 to 500 hours during the year and able to pass an FBI criminal background check. New TAP members will serve a three-year term starting in December 2011. Anyone chosen as an alternate member will be considered to fill any vacancies that open in their area during the next three years.

The TAP is seeking members in the following locations: Alaska, Arizona, California, Florida, Georgia, Hawaii, Idaho, Indiana, Kansas, Maryland, Massachusetts, Michigan, Montana, Ohio, Puerto Rico, Texas, Utah, Vermont, Virginia, Wisconsin and Wyoming.

Alternates are needed for Iowa, Oklahoma, Oregon, South Dakota and West Virginia.

Applications for the TAP will be accepted through April 29, 2011. Applications are available online at www.improveirs.org. For additional information about the TAP or the application process, please call toll-free 888-912-1227.

Source: irs.gov, IR-2011-29

Here are three important guidelines to keep in mind:

You are responsible and liable for the content of your tax return.
Anyone who promises you a bigger refund without knowing your tax situation could be misleading you, and
Never sign a tax return without looking it over to make sure it is accurate.
Beware of these common schemes:

Return Preparer Fraud:

Dishonest tax return preparers can cause many headaches for taxpayers who fall victim to their ploys. Such preparers derive financial gain by skimming a portion of their clients’ refunds and charging inflated fees for return preparation services. They attract new clients by promising large refunds. Choose carefully when hiring a tax preparer. As the saying goes, if it sounds too good to be true, it probably is. No matter who prepares your tax return you are ultimately responsible for its accuracy and for any tax bill that may arise due to a questionable claim.

To increase confidence in the tax system and improve compliance with the tax law, the IRS is implementing a requirement that all paid tax return preparers register with the IRS and obtain a preparer tax identification number (PTIN). Later this year, registered preparers will have to pass a competency exam and take continuing education courses.

Identity Theft:

It pays to be choosy when it comes to disclosing personal information. Identity thieves have used stolen personal data to access financial accounts, run up charges on credit cards and apply for new loans. The IRS is aware of several identity theft scams involving taxes or scammers posing as the IRS itself. The IRS does not use e-mail to contact taxpayers about issues related to their accounts. If you have any doubt whether a contact from the IRS is authentic, call 800-829-1040 to confirm it.

Frivolous Arguments:

Promoters have been known to make outlandish claims such as that the Sixteenth Amendment concerning congressional power to establish and collect income taxes was never ratified; that wages are not income; that filing a return and paying taxes are merely voluntary; and that being required to file Form 1040 violates the Fifth Amendment right against self-incrimination or the Fourth Amendment right to privacy. Don’t believe these or other similar claims. Such arguments are false and have been thrown out of court. Taxpayers have the right to contest their tax liabilities in court, but no one has the right to disobey the law.

For more information about these and other tax scams visit the IRS Web site at http://www.irs.gov. Remember that for the genuine IRS Web site be sure to use .gov. Don’t be confused by internet sites that end in .com, .net, .org or other designations instead of .gov. The address of the official IRS governmental Web site is http://www.irs.gov.

Source: irs.gov, Tax Tip 2011-58

The VALHEN Scholarship Committee is pleased to announce the names of the five recipients as follows:

Milena Jaimes – $1000 – The College of William and Mary
Carolina Pérez – $1000 – Virginia Commonwealth University
Ever Villalta – $500 – George Mason University
Raymundo Gomez – $500 – Thomas Nelson Community College
Ada Carolina Espinoza – $500 – George Mason University

The awards will be presented to the winners over the closing luncheon at VALHEN’s 2011 Encuentro hosted by Northern Virginia Community College–Annandale Campus, on Friday, March 25, 2011. Encuentro is VALHEN’s annual conference where members meet to network, discuss issues and share best practices for supporting Latino education in the Commonwealth.

“In this our second year of scholarship awards, we had a total of five scholarships to bestow on deserving students. Selecting from the eighty-one worthy, articulate and talented applicants was a daunting task because the quality of this year’s applicants was extraordinary,” said Sylvia Rosa-Casanova, a member of the VALHEN Board of Directors and this year’s Scholarship Chair.

Applications for the five awards came from students with ties to over a dozen Latino countries including Mexico, Guatemala, Peru, Columbia, Bolivia, Cuba and Puerto Rico. Students hailed from across the state and have dreams of becoming doctors, lawyers, entrepreneurs, artists, scientists, engineers, social workers, government employees, and teachers.

Individuals or businesses interested in sponsoring a VALHEN Scholarship or donating to the scholarship fund can contact: VALHEN Scholarship Chair at info@valhen.org.

Applications and information for the next year’s VALHEN scholarships will be available online at www.valhen.org during late October or early November.

About VALHEN
The Virginia Latino Higher Education Network (VALHEN), a nonprofit and nonpartisan statewide organization, serves as a networking structure for individuals in colleges, universities, K-12, and the community-at-large, to communicate, advocate, organize, research and identify resources which support and work towards the success of Latinos in higher education in the Commonwealth of Virginia. The VALHEN Board of Directors is comprised of volunteer higher education professionals and community leaders in the Commonwealth of Virginia. For more information, please visit www.valhen.org.

About Liberty Tax Service
Liberty Tax Service is the fastest-growing retail tax preparation company in the industry’s history. Through its Una Familia Sin Fronteras initiative and foundation, Liberty Tax Service is educating thousands of Hispanic adults on ways to achieve financial and future success in the United States. Liberty Tax Service believes that education provides options – and that options provide empowerment. We are proud to support VALHEN through this scholarship fund donation, enabling deserving students to achieve greater success through education. For more information, please visit http://www.libertytaxespanol.com/.

Milena Jaimes transferred to the College of William and Mary after earning an Associates of Science degree from Richard Bland College with a 4.0 average. She is pursuing a major in Kinesiology & Health Sciences. Her long-term goal is to obtain a Doctorate in Physical Therapy. Her interest in this field comes from a wish to challenge herself intellectually as well as a desire to help others lead lives with little or no physical limitations.

In the past, Ms. Ayala’s extra-curricular activities have included presiding over the Council on Academic Integrity, being a member of the Phi Theta Kappa Honor Society and serving as an Orientation Assistant to incoming freshmen.

Miss Ayala emigrated from Colombia with her family when she was nine years old. Identifying herself as bi-cultural, she believes in embracing new experiences without disregarding older ones, because these are the things that “shape who we are”.

Carolina Perez, a freshman at Virginia Commonwealth University majoring in Biology with a concentration in pre-medicine, entered college in the fall with thirty-six earned credits thanks to her scores on Advanced Placement exams. After graduating from VCU, she has aspirations of attending medical school and is considering becoming a primary care physician or internist “to reach out to as many patients from various backgrounds and walks of life as possible.”

Ms. Perez’s extracurricular activities include volunteering at the emergency room of a hospital, helping to lead a Rosary Prayer group at the Catholic Campus Ministry; and acting as the newsletter chair for the Brandt Hall Council in her residence hall at VCU.

Of Mexican ancestry, Ms. Perez is cognizant of the importance of family. She is thankful for the values her parents instilled in her as well as for the sacrifices they made to ensure that she and her brothers have better opportunities. As a first generation college student, she is motivated not only to strive for her goals, but also to be a positive role model for other young women.

Name: – Ada Carolina Espinoza
Winner: $500 Scholarship – The Liberty Tax Service “Una Familia Sin Fronteras” Scholarship
School: George Mason University
Grade: College Junior
GPA: 3.67

Ada Carolina Espinoza is a junior at George Mason University majoring in Global Affairs with a concentration in Governance and Diplomacy and minoring in Economics. Ultimately her goal is to work for the U.S. Agency for International Development (USAID), the U.S. Department of State or the United Nations.

When Ms. Espinoza came to the United States from Peru six years ago, she spoke little English. Less than a year later, she had learned the language, which she proudly admits is one of her greatest achievements.

In the essay she submitted with her application as well as in her interview, Ms. Espinoza expressed the role that work ethic plays in achieving success. She describes Latinos as hard workers with dreams of success equal to those of the colonists who came to America. In her own words, “We fight for our dreams, goals and desires and we manage to accomplish them, because Latinos are people who never give up.”

Ever Villalta is a sophomore at George Mason University majoring in Government and International Politics and minoring in intelligence analysis. His career goal is to be involved in intelligence analysis that shapes strategies in foreign policy and provides intelligence necessary to maintain the United States’ national security. He believes that a career with the government would allow him to serve a nation that has provided him and his family with so much. He would consider working for the United States Department of State or the Central Intelligence Agency.

Mr. Villalta is actively involved with student government at George Mason University. He is a member of the Elections & Disputes Commission of George Mason University; a member of the George Mason College Democrats; a GMU Student Government Parking Appeals Board member and a GMU Mason Crew.

Mr. Villalta expressed that he derives inspiration from his parents, who sacrificed themselves so their children could succeed. “I’ve witnessed firsthand from my parents that hard work can go a long way and I am grateful for what I have. For that I seek to continuously capitalize on opportunities and set high goals.”

Name: Raymundo Gomez
Winner: $500 Winner – The Liberty Tax Service “Una Familia Sin Fronteras” Scholarship
School: Thomas Nelson Community College
Grade: College Freshman
GPA 3.7

Raymundo Gomez is a college freshman enrolled in the Thomas Nelson Community College 2X2 program, which allows students to transfer to any college within the Tidewater Consortium if they meet the required GPA. Mr. Gomez attained a 3.7 GPA in the first year Honors Program and has been accepted into Old Dominion University for the Summer 2011 semester. He plans to major in English and ultimately wants to become a teacher.

As a believer that community service has been a road to his own redemption, Mr. Gomez has logged over 500 hours of volunteer work with the Special Olympics. He feels he has gained just as much from his commitment to the Special Olympics as they have benefited from his involvement.

Faced with challenges and adversity at home when he was in the ninth grade, Mr. Gomez says he lost hope and resigned himself to being a high school dropout. He credits a high school teacher for rescuing him from certain failure when she recognized his potential. In part his desire to teach in a public school is motivated by his wish to give back to the community that has supported and encouraged him. In his own words, “I want to become the kind of man who is improved by adversity, not one who is limited by it.”

1. Crop Insurance Proceeds —You must include in income any crop insurance proceeds you receive as the result of crop damage. You generally include them in the year you receive them.

2. Sales Caused by Weather — Related Condition If you sell more livestock, including poultry, than you normally would in a year because of weather-related conditions, you may be able to postpone reporting the gain from selling the additional animals due to the weather until the next year.

3. Farm Income Averaging — You may be able to average all or some of your current year’s farm income by allocating it to the three prior years. This may lower your current year tax if your current year income from farming is high, and your taxable income from one or more of the three prior years was low. This method does not change your prior year tax, it only uses the prior year information to determine your current year tax.

4. Deductible Farm Expenses — The ordinary and necessary costs of operating a farm for profit are deductible business expenses. An ordinary expense is an expense that is common and accepted in the farming business. A necessary expense is one that is appropriate for the business.

5. Employees and Hired Help — You can deduct reasonable wages paid for labor hired to perform your farming operations. This includes full-time and part-time workers. You must withhold social security, medicare and income taxes on employees.

6. Items Purchased for Resale — You may be able to deduct, in the year of the sale, the cost of items purchased for resale, including livestock and the freight charges for transporting livestock to the farm.

7. Net Operating Losses — If your deductible expenses from operating your farm are more than your other income for the year, you may have a net operating loss. You can carry that loss over to other years and deduct it. You may get a refund of part or all of the income tax you paid for past years, or you may be able to reduce your tax in future years.

8. Repayment of Loans — You cannot deduct the repayment of a loan if the loan proceeds are used for personal expenses. However, if you use the proceeds of the loan for your farming business, you can deduct the interest that you pay on the loan.

9. Fuel and Road Use —You may be eligible to claim a credit or refund of federal excise taxes on fuel used on a farm for farming purposes.

10. Farmer’s Tax Guide — More information about farm income and deductions is in IRS Publication 225, Farmer’s Tax Guide, which is available at http://www.irs.gov or by calling the IRS at 800-TAX-FORM (800-829-3676).

Source: irs.gov, Tax Tip 2011-56

Census figures also show that Hispanic population growth for the first time outpaced that of blacks and whites in most of the South, adding to the region’s racial and ethnic mix.

“All of this will shake up the politics,” said Lance deHaven-Smith, a political science professor at Florida State University in Tallahassee. Because the South is a critical region for Republicans in presidential elections, “all the Democrats have to do is pick up a couple Southern states, and Republicans are in trouble.”

The share of blacks in large metropolitan areas who opted to live in the suburbs climbed to 58 percent in the South, compared to 41 percent for the rest of the U.S., according to census estimates. That’s up from 52 percent in 2000 and represents the highest share of suburban blacks in the South since the Civil Rights Act passed in the 1960s.

The South also had major gains in neighborhood integration between blacks and whites. Thirty-two of the region’s 38 largest metro areas made such gains since 2000, according to a commonly used demographic index. The measure, known as the segregation index, tracks the degree to which racial groups are evenly spread between neighborhoods. Topping the list were rapidly diversifying metros in central Florida, as well in Georgia, Texas and Tennessee.

Among the new black suburbanites are Ray Taylor, 34, and his wife, Marcia, 33. Four years ago, they moved from Atlanta to the northern suburb of Alpharetta, Ga., about 20 miles away, seeking better schools and a wider range of community activities. They now have two small children, ages 4 and 1.

Taylor, a political independent who voted for Democrat Barack Obama in 2008, said he also liked having more exposure to people of different racial and political backgrounds. Compared with Atlanta, Alpharetta has a broader mix of whites and Hispanics and tends to lean more Republican.

“We wanted to be close enough to access the city and have the best of both worlds,” he said.

Census figures also show that Hispanics contributed more to population gains than blacks in 13 of the 16 Southern states over the last decade, compared with seven states for Hispanics from 1990-2000. It was a clear sign of the shift under way for a region in which African-Americans have been the dominant minority group dating back to slavery.

In all, Hispanics accounted for roughly 45 percent of population gains in the South over the last decade, compared with about 22 percent for whites and 19 percent for blacks. Hispanic growth also has been surprisingly larger than expected in several Southern states, with official counts exceeding earlier estimates by more than 10 percent in Alabama, Louisiana and Maryland, according to the Pew Hispanic Center.

“It’s clear that black growth continues to locate in the suburban South, leading to declines in their historic segregation,” said William Frey, a demographer at Brookings Institution who did a broad analysis of the census data. “This new dispersed growth of blacks, coupled with the new waves of Hispanic growth, are changing the region’s longstanding `black-white’ image and heralding the beginning of a more diverse region.”

The latest race figures offer a hint of some of the coming political wrangling in fast-growing parts of the South, where Hispanic immigration as well as an influx of blacks from the North — two minority groups which tend to lean Democratic — have the potential to shift historic voting trends.

Next year, the South will be the site for the GOP National Convention in Tampa, Fla., and the Democratic National Convention in Charlotte, N.C., both states Obama carried in 2008 due partly to a large minority turnout. Both Charlotte and Tampa last year became cities in which whites now make up less than 50 percent of the population.

Other findings:

- In the South, white children in Maryland and Mississippi became a numerical minority for the first time this past decade, joining Texas and the District of Columbia; Florida and Georgia are expected to follow.

- Metropolitan areas in the South showing some of the biggest advances in black-white residential integration included Tampa, Orlando and Lakeland in central Florida; Atlanta; Louisville, Ky.; and Houston. Their segregation levels all fell in the middle range. Metro areas in the West also had substantial changes with generally lower levels of segregation, while segregation in the Midwest and Northeast declined somewhat but was typically higher than average.

- The South is the second most racially and ethnically diverse U.S. region after the West. Roughly 61 percent of its population is white, 19 percent black and 15 percent Hispanic. That’s compared with a national breakdown of 65 percent white, roughly 12 percent black and 16 percent Hispanic.

- Hispanics in large metro areas in the South were more likely to live in suburbs — about 60 percent, compared with 56 percent for the rest of the nation.

DeHaven-Smith said the higher levels of black residential integration could make it harder for states to maintain majority black districts when they redraw political boundaries in the coming months. He also noted Florida’s demographic changes, with the central part of the state now becoming a presidential battleground due to an influx of non-Cuban Hispanics who are turning the Republican-leaning area more Democratic.

Florida will pick up two new House seats — which means two more electoral college votes beginning in 2012 — based on its population growth over the last decade.

“It’s a narrowly balanced, very polarized state, with the shifts occurring mostly in central Florida,” deHaven-Smith said.

Source: Star-Tribune.com, MInneapolis-St. Paul, Minnesota, 3/17, Associated Press

Expenses that qualify for an itemized deduction include:

– Business travel away from home
– Business use of car
– Business meals and entertainment
– Travel
– Use of your home
– Education
– Supplies
– Tools
– Miscellaneous expenses

You must keep records to prove the business expenses you deduct. For general information on recordkeeping, see IRS Publication 552, Recordkeeping for Individuals available on the IRS website, http://www.irs.gov, or by calling 800-829-3676.

If your employer reimburses you under an accountable plan, you do not include the payments in your gross income, and you may not deduct any of the reimbursed amounts.

An accountable plan must meet three requirements:

1. You must have paid or incurred expenses that are deductible while performing services as an employee.
2. You must adequately account to your employer for these expenses within a reasonable time period, and
3. You must return any excess reimbursement or allowance within a reasonable time period.

If the plan under which you are reimbursed by your employer is non-accountable, the payments you receive should be included in the wages shown on your Form W-2. You must report the income and itemize your deductions to deduct these expenses.

Generally, report expenses on IRS Form 2106 or IRS Form 2106-EZ to figure the deduction for employee business expenses and attach it to Form 1040. Deductible expenses are then reported on Form 1040, Schedule A, as a miscellaneous itemized deduction subject to 2% of your adjusted gross income rules. Only employee business expenses that are in excess of 2% of your adjusted gross income can be deducted.

Source: irs.gov, Tax Tip 2011-54

1. Investment Income Children with investment income may have part or all of this income taxed at their parents’ tax rate rather than at the child’s rate. Investment income includes interest, dividends, capital gains and other unearned income.

2. Age Requirement The child’s tax must be figured using the parents’ rates if the child has investment income of more than $1,900 and meets one of three age requirements for 2010:

– Was under age 18 at the end of the year,
– Was age 18 at the end of the year and did not have earned income that was more than half of his or her support, or
– Was a full-time student over age 18 and under age 24 at the end of the year and did not have earned income that was more than half of his or her support.

3. Form 8615 To figure the child’s tax using the parents’ rate for the child’s return, fill out Form 8615, Tax for Certain Children Who Have Investment Income of More Than $1,900, and attach it to the child’s federal income tax return.

4. Form 8814 When certain conditions are met, a parent may be able to avoid having to file a tax return for the child by including the child’s income on the parent’s tax return. In this situation, the parent would file Form 8814, Parents’ Election To Report Child’s Interest and Dividends.

Source: irs.gov, Tax Tip 2011-52

1. Generally, in order to claim a business deduction for your home, you must use part of your home exclusively and regularly:
– as your principal place of business, or
– as a place to meet or deal with patients, clients or customers in the normal course of your business, or
– in any connection with your trade or business where the business portion of your home is a separate structure not attached to your home.

2. For certain storage use, rental use, or daycare-facility use, you are required to use the property regularly but not exclusively.

3. Generally, the amount you can deduct depends on the percentage of your home used for business. Your deduction for certain expenses will be limited if your gross income from your business is less than your total business expenses.

4. There are special rules for qualified daycare providers and for persons storing business inventory or product samples.

5. If you are self-employed, use Form 8829, Expenses for Business Use of Your Home to figure your home office deduction and report those deductions on line 30 of Form 1040 Schedule C, Profit or Loss From Business.

6. If you are an employee, additional rules apply for claiming the home office deduction. For example, the regular and exclusive business use must be for the convenience of your employer.

Source: irs.gov, Tas Tip 2011-53

(Virginia Beach, VA) To support the American Red Cross relief efforts in Japan after the earthquake and tsunami last week, Liberty Tax Service will waive tax preparation fees for first-time customers who contribute a minimum of $50 to the American Red Cross on Saturday, March 19, 2011. This day of free tax preparation will take place at participating locations throughout the United States from 9 a.m. until 9 p.m. Call 866-871-1040 to be directly connected with the nearest Liberty Tax location.

“Witnessing the devastation in Japan almost instantly through television and the social media can leave you feeling almost powerless to help, but we feel that Liberty Tax and the public can get directly involved by waiving fees in exchange for donations to the American Red Cross,” said John Hewitt, CEO of Liberty Tax Service of Liberty Tax Service.

About the American Red Cross

Liberty Tax Service is a National Sponsor of The American Red Cross. This organization shelters, feeds and provides emotional support to victims of disasters; supplies nearly half of the nation’s blood; teaches lifesaving skills; provides international humanitarian aid; and supports military members and their families.

The Red Cross is a charitable organization — not a government agency — and depends on volunteers and the generosity of the American public to perform its mission. According to the website, http://blog.redcross.org, the American Red Cross reacted immediately to assist the Japanese Red Cross as they reached out to the 5 million households without electricity, and another million persons without water. Online donations are accepted at http://american.redcross.org/site/PageServer?pagename=ntld_main&s_src=F8HWA002

The Census Bureau has released 2010 Census counts of Hispanics in 33 states; they accounted for the majority-58%-of population growth over the decade in those states. Those states’ combined Census 2010 total of 38.7 million Hispanics was higher by 590,000 people (or 1.5%) than the bureau’s own estimates for those states. Census counts for Hispanics in the remaining states will be released by the end of March.

In 23 of the 33 states, census counts were higher than the latest census estimates of Hispanics by at least 2%. In three states, the count was at least 2% lower than the census estimate. In the remaining seven states, the difference was less than 2% in either direction. By comparison, the difference between census estimates and the 2010 Census count for the total population in these 33 states was well under 1% (.2%).

Unlike the decennial Census, designed to be a 100% count of the U.S. population, the Census Bureau’s population estimates are annual updates of counts from the previous census based largely on birth certificates, death certificates, immigration data and other government records. The most recent published state population estimates for Hispanics were as of July 1, 2009. For this analysis, the Hispanic estimates were updated to Census Day, April 1, 2010, by extrapolating the 2009 estimates based on each state’s Hispanic population growth rate from 2008 to 2009.

The Pew Hispanic Center analysis indicates that states with large percentage differences between their Hispanic census counts and census estimates also were likely to have large percentage differences between census counts and census estimates for their total populations. This reflects the large role that Hispanics play in overall population growth. Hispanics have accounted for most of the discrepancy between 2010 Census counts and census estimates of states’ total populations.

In addition, states with small Hispanic populations and states with rapidly growing Hispanic populations were most likely to have a mismatch between their census counts and census estimates of Hispanics, according to the Pew Hispanic Center analysis. As a group, the 27 states that have Hispanic populations under a million people (including many where Hispanic counts grew sharply) had a larger percentage gap between their census counts and census estimates than did the six states with larger, longer-duration Hispanic communties.

To download report CLICK on link below:

Source: HispanicAd.com, 3/15/2011

- A self-employed individual with a net profit reported on Schedule C (Form 1040), Profit or Loss From Business, Schedule C-EZ (Form 1040), Net Profit From Business, or Schedule F (Form 1040), Profit or Loss From Farming.

- A partner with net earnings from self-employment reported on Schedule K-1 (Form 1065), Partner’s Share of Income, Deductions, Credits, etc., box 14, code A.

- A shareholder owning more than 2% of the outstanding stock of an S corporation with wages from the corporation reported on Form W-2, Wage and Tax Statement.

The insurance plan must be established under your business.

- For self-employed individuals filing a Schedule C, C-EZ, or F, the policy can be either in the name of the business or in the name of the individual.

- For partners, the policy can be either in the name of the partnership or in the name of the partner. You can either pay the premiums yourself or your partnership can pay them and report the premium amounts on Schedule K-1 (Form 1065) as guaranteed payments to be included in your gross income. However, if the policy is in your name and you pay the premiums yourself, the partnership must reimburse you and report the premium amounts on Schedule K-1 (Form 1065) as guaranteed payments to be included in your gross income. Otherwise, the insurance plan will not be considered to be established under your business.

- For more-than-2% shareholders, the policy can be either in the name of the S corporation or in the name of the shareholder. You can either pay the premiums yourself or your S corporation can pay them and report the premium amounts on Form W-2 as wages to be included in your gross income. However, if the policy is in your name and you pay the premiums yourself, the S corporation must reimburse you and report the premium amounts on Form W-2 as wages to be included in your gross income. Otherwise, the insurance plan will not be considered to be established under your business.

Source: irs.gov, Tax Tip 2011-51

By March 4, the IRS had issued more than 52 million refunds worth $161 billion for an average refund of $3,070.

For tax year 2010 returns, there are new savings bond options. Last year, if the taxpayer chose to receive a savings bond as part of the refund, it could only be issued in the taxpayers’ name. This year, taxpayers can designate anyone to receive a savings bond and also designate the co-owner or beneficiary. Also a new section was added to Form 8888, Allocation of Refund (Including Savings Bond Purchases), for entering savings bond information so that taxpayers no longer need to enter a pre-specified routing number. Instead, taxpayers will enter the bond owner’s name. The savings bonds will be mailed to the taxpayer or the person designated on the form.

Taxpayers who claim a tax refund on Form 1040 can use Form 8888 to split their refunds. Refunds can be directed into bank accounts and other financial institutions where their mutual funds or retirement accounts are managed and to purchase U.S. Series I Savings Bonds. Taxpayers can choose to use a portion of the refund to buy up to $5,000 in low-risk savings bonds, which earn interest and protect owners against inflation. The bonds must be purchased in $50 increments. Direct deposit of any remaining refund amounts is no longer required. Paper checks can be requested for the balance.

During 2010, more than 99,000 bonds were purchased using Form 8888, totaling more than $11 million dollars. To check the status of a bond purchase request, go to the “Where’s My Refund” section of IRS website. If the IRS has already processed the refund and placed the request for the bond, then the tax filer should contact Treasury Retail Securities at 1-800-245-2804.

Source: irs.gov, IR-2011-26

The report describes activities conducted by the IRS from Oct. 1, 2009, to Sept. 30, 2010, and includes information about returns filed, tax collections, enforcement and taxpayer assistance, as well as the IRS budget and workforce.

During fiscal year 2010, the IRS collected $2.3 trillion in revenue, and processed 230 million returns. More than 116 million returns, including almost 70 percent of individual income tax returns, were filed electronically. More than 119 million individual income tax return filers received a tax refund, totaling $358 billion. In fiscal year 2010, IRS spent an average of 53 cents to collect each $100 of tax revenue.

The IRS examined more than 1.5 million individual income tax returns and nearly 30,000 returns filed by corporations, excluding S corporations. The IRS provided taxpayer assistance through 305 million visits to IRS.gov and assisted more than 78 million taxpayers through its telephone helpline or at walk-in sites.

An electronic version of the 2010 IRS Data Book can be found on the Tax Stats.

Printed copies of the IRS Data Book, Publication 55B, will be available by mid-April from the U.S. Government Printing Office. To obtain a copy, write to the Superintendent of Documents, P.O. Box 371954, Pittsburgh, PA 15250-7954. You may also order by calling (202) 512-1800 or faxing a request to (202) 512-2250.

Source: irs.gov, IR-2011-27

Early results of a new Horowitz Associates study show that almost a third of urban consumers (31%) watch TV content via PCs, mobile, over the top devices or other alternative platforms each week and that Hispanic, Black and Asian urban consumers are particularly heavy uses of these platforms.

The research firm’s annual State of Cable and Digital Media – Multicultural Edition 2011 study found that almost half of Asian urban consumers (41%) watch TV content on alternative platforms each week, as do 37% of Hispanic and 36% of Black urban consumers, versus 25% of White non-Hispanic urban consumers.

On computers or laptops, 35% of Asians report viewing TV content at least once a week, compared to 22% among Hispanics, 17% of Blacks and 15% among white urban audiences.

This usage is also adding up to significant time. The study found that those who use alternative platforms for TV spend, on average, 15% of their viewing time on a platform other than traditional TV. That viewing is in addition to time devoted to digital TV platforms such as DVRs and VOD.

The study also found that penetration of video-enabled mobile devices such as smartphones, iPhones, iPads and gaming gadgets increased from 35% in 2010 to 46% in 2011.

Higher penetration rates combined with growing availability of apps that allow access to TV shows has also produced higher levels of viewing of TV content on mobile devices. According to the new study, self-reported weekly viewership of TV content on mobile devices increased from 4% in 2010 to 10% in 2011.

The highest levels of viewing were found among Black and Hispanic urban consumers, where 14% of each group reported viewing TV content at least once a week on a mobile device, compared to 7% among White and 5% among Asian urban consumers.

A consortium of non-profits and foundations this week highlighted what they say is the necessary role of Hispanics in driving the national goal of regaining the world lead in college completion.

President Obama has proposed retaking that lead by 2020. Many other higher education organizations have joined the initiative, sometimes underscoring the importance of one sector or demographic group in contributing to the goal — community colleges, public universities, blacks and Hispanics, college dropouts and so forth.

This latest initiative was presented by the non-profit Excelencia in Education in collaboration with the Bill and Melinda Gates Foundation, the Lumina Foundation and other heavy hitters.

Called Roadmap for Ensuring America’s Future, the initiative suggests Hispanics will have to earn 5.5 million college degrees by 2020 if the nation is to reach 51 percent degree attainment — a goal that’s actually toward the lower end of the completion-target spectrum. Other groups have suggested 55 or 60 percent completion.

Other leaders have pointed to the importance of focusing on Hispanic college attendance and completion: Hispanics are less likely than other racial and ethnic groups to finish college, partly because of cultural factors: Hispanic families may be relatively reluctant to take on debt, for example.

Research from the consortium shows Hispanic students often enroll part-time, later in life, and at community colleges close to their homes; “state and institutional initiatives that focus on those students can make a big difference,” they said in a release.

Among their recommendations: institutions focus on programs that increase retention for working students, increase college-preparatory and dual-enrollment programs, simplify two- to four-year transfers and guarantee need-based aid to deserving students.

By Daniel de Vise | March 11, 2011; 10:38 AM ET, College Inc., The Washington Post

http://voices.washingtonpost.com/college-inc/2011/03/initiative_seeks_55_million_hi.html

Hispanic voters are nearly three times more prevalent in states that gained congressional seats and Electoral College votes in the 2010 reapportionment than they are in states that lost seats, according to an analysis of Census data by the Pew Hispanic Center, a project of the Pew Research Center. Based on averages reflecting congressional gains and losses, 15.2% of the eligible voter population in states that gained seats is Hispanic, compared with just 5.4% of eligible voters in those states that lost seats.

With these reapportionment changes, Latinos likely will play a larger role in national politics in the coming decade. Two states that gained seats, Florida and Nevada, have been key battlegrounds in recent presidential elections (having voted for the Republican nominee in 2004 and the Democratic candidate in 2008). In both states, Latinos are a growing share of eligible voters.

According to the Census Bureau, there were 308 million people residing in the U.S. in 2010, up 9% from 2000. Overall, based on 2009 population estimates, Hispanics accounted for more than half (51%) of that growth.(1) However, because many Latinos are either too young to vote or are not U.S. citizens, not all of their population growth translates into immediate electoral strength. Among the nation’s 48.4 million Hispanics in 2009, a record 20.1 million are eligible to vote. Yet an even greater number are not eligible to vote. Some 15.5 million Hispanics(2) are U.S. citizens 17 years of age or younger, and 12.8 million of all ages are not U.S. citizens.(3)

Even so, the number of the Latinos eligible to vote continues to grow. Since 2000, nearly six million more Latinos have become eligible to vote. The bulk of this growth was attributable to the five million U.S.-born Latino youths nationwide who turned age 18 during this past decade. That translates into an additional half-million U.S.-born Latinos coming of age each year — a pattern that is certain to persist, and grow, in the coming decades.

No matter what happens with immigration patterns in the future, the aging of the U.S.-born Latino youth bulge ensures that the electoral strength of the nation’s largest minority group will continue to grow in the coming decades. And much of that growth will take place in states that have gained congressional seats and Electoral College votes.

Reapportionment Gains and Hispanic Population Growth

Based on results of the 2010 Census, eight states — Arizona, Florida, Georgia, Nevada, South Carolina, Texas, Utah and Washington — will gain congressional seats and Electoral College votes. Texas will gain four, Florida two, and all others one. Ten states will lose seats — Illinois, Iowa, Louisiana, Massachusetts, Michigan, Missouri, New Jersey, New York, Ohio and Pennsylvania. New York and Ohio will lose two and all others one.

Overall Latinos represent a greater share of eligible voter and resident populations in states that will gain seats than they do in states that will lose seats. Among eligible voters, in states that will gain seats, 15.2% are Latino, while in states that will lose seats just 5.4% are Latino. Among resident populations, 23.6% is Latino in states that will gain seats compared with 8.4% in states that will lose seats.

[The apportionment of congressional seats is based upon total residents in each state including those who are ineligible to vote. See "Census 2010: Apportionment Basics."]

In Texas, Latinos account for one-in-four (25.5%) of the state’s eligible voters and 36.9% of the state’s population. In Florida, Latinos account for one-in-seven (15%) of the state’s eligible voters and 21.5% of the state’s population. And in Arizona and Nevada, Hispanics represent 19.7% and 14.1% of eligible voters, respectively.

Many of the states that gained congressional seats did so partly because of rapid population growth among Hispanics. Texas’ population increased by nearly four million, or by 21%, between 2000 and 2010. Nearly two-thirds (63%) of that growth came from growth in the state’s Hispanic population, which increased by almost 2.5 million.4 In Florida, Hispanic population growth accounted for more than half (51%) of the state’s population growth through this decade. Even in states with smaller Hispanic populations, Hispanics accounted for a large share of population growth. In Georgia, Hispanics accounted for 23.2% of the state’s growth. In South Carolina, Hispanics accounted for 19.8% of the state’s growth.

Even in states that lost congressional seats, Latinos contributed significantly to population gains, possibly limiting reapportionment losses. For instance, in New York, 72% of the population growth this decade came from the Latino population. In New Jersey, the state’s population would likely have declined without Hispanic population growth. And in Michigan, Latino population growth kept the state’s population from declining even more than it did.

Latino Electoral Strength

Latino voting strength is limited by the fact that one-third of all Latinos are under the age of 18 and by the fact that many Latino adults are not U.S. citizens. Because of these factors, the share of the Hispanic population that is eligible to vote is lower than it is among either whites or blacks, even though the Hispanic population has grown rapidly in recent decades.

In Texas, for example, even though Hispanic population growth helped to fuel the expansion of the state’s congressional delegation, fewer than half (43.1%) of all Hispanics are eligible to vote, compared with nearly eight-in-ten (77.3%) whites and seven-in-ten blacks (70%). In Florida, fewer than half (48.3%) of the state’s Hispanics are eligible to vote, while eight-in-ten (79.8%) whites and 63.5% of blacks are eligible to vote.

In Georgia — a state where the vast majority of Hispanic adults are foreign born who arrived within the last decade or two — the gap is even wider. There, only 22.9% of the state’s Latinos are eligible to vote, compared with 76.2% of whites and 69.6% of blacks. Similar patterns are present in other “new settlement” states.

View the full report (PDF) for detailed tables with state-by-state data on population growth and congressiional reapportionment at pewhispanic.org.

Footnotes:
1. Final 2010 Census population counts for the Hispanic population, and all other groups of Americans, will be released by the Census Bureau later this year.
2. Among Hispanics who are U.S. citizens and 17 years of age or younger, some 15.3 million were born in the U.S.
3. Sum may not total due to rounding.
4. The Census Bureau has not issued state population counts by race and ethnicity from the 2010 Census. However, the 2009 American Community Survey (ACS) provides the most recent state population estimates by race and ethnicity. Latino population estimates from the 2009 ACS are used throughout this report.

Source: Pew Hispanic Center, 1/5/2011

1. Residential Energy Property Credit This tax credit is for homeowners who make qualified energy efficient improvements to their existing homes. This credit is 30 percent of the cost of all qualifying improvements. The maximum credit is $1,500 for improvements placed in service in 2009 and 2010 combined. The credit applies to improvements such as adding insulation, energy efficient exterior windows and energy-efficient heating and air conditioning systems.

2. Residential Energy Efficient Property Credit This tax credit will help individual taxpayers pay for qualified residential alternative energy equipment, such as solar hot water heaters, solar electricity equipment and wind turbines installed on or in connection with their home located in the United States and geothermal heat pumps installed on or in connection with their main home located in the United States. The credit, which runs through 2016, is 30 percent of the cost of qualified property. ARRA removes some of the previously imposed annual maximum dollar limits.

3. Plug-in Electric Drive Vehicle Credit ARRA modifies this credit for qualified plug-in electric drive vehicles purchased after Dec. 31, 2009. The minimum amount of the credit for qualified plug-in electric drive vehicles, which runs through 2014, is $2,500 and the credit tops out at $7,500, depending on the battery capacity. ARRA phases out the credit for each manufacturer after they sell 200,000 vehicles.

4. Plug-In Electric Vehicle Credit This is a special tax credit for two types of plug-in vehicles — certain low-speed electric vehicles and two- or three-wheeled vehicles. The amount of the credit is 10 percent of the cost of the vehicle, up to a maximum credit of $2,500 for purchases made after Feb. 17, 2009, and before Jan. 1, 2012.

5. Credit for Conversion Kits This credit is equal to 10 percent of the cost of converting a vehicle to a qualified plug-in electric drive motor vehicle that is placed in service after Feb. 17, 2009. The maximum credit, which runs through 2011, is $4,000.

6. Treatment of Alternative Motor Vehicle Credit as a Personal Credit Allowed Against AMT Starting in 2009, ARRA allows the Alternative Motor Vehicle Credit, including the tax credit for purchasing hybrid vehicles, to be applied against the Alternative Minimum Tax. Prior to the new law, the Alternative Motor Vehicle Credit could not be used to offset the AMT. This means the credit could not be taken if a taxpayer owed AMT or was reduced for some taxpayers who did not owe AMT.

Source: irs.gov, IRS Tax Tip 2011-49

According to the statistics:

* Minorities contributed all of the growth in California with Hispanics accounting for 71 percent of the minority growth in the state.
* More than 14 million Hispanics reside in California.
* 38 percent of California state residents are of Hispanic origin.
* The Hispanic population in California grew 28 percent in the last decade.
* 77 percent of the Hispanic growth in the state was among Adults 18+, while 23 percent was among those under 18.

“The new Census figures just released for California show double-digit growth in the Hispanic population in the state and mirrors the growth pattern we are seeing across the U.S.,” said Elizabeth Ellers, executive vice president, Corporate Research, Univision Communications Inc.

Based on an aggregation of the 27 states releases thus far by the Census bureau:

* Hispanic population growth is exceeding the most recent Census estimates by more than four percent.
* Approximately 34.7 million Hispanics in the 27 states released as of 3-8-11.
* Hispanics contributed 59 percent of the overall population growth in those states.
* In the last decade, the Hispanic population in these states grew by 41 percent.
* According to the 2010 Census results, the Hispanic population is less concentrated than 10 years ago. In 2000, 72 percent of the Hispanic population residing in the 27 states released by Census resided in California or Texas. In the 2010 Census, 68% of Hispanics reside either in Texas or California.

The U.S. Census is expected to release state by state information through March 2011.

Source: Univision Media Alert, 3/9/2011

The number of Hispanics rose 28% to 14 million, reaching near parity with non-Hispanic whites, while Asians grew 31%.

California remains the biggest state, growing to 37.3 million, but not enough for additional seats in Congress.

The detailed figures from the 2010 US Census shows that Hispanics now account for 38% of California’s population, almost equal with the 40% of non-Hispanic whites. These number 15 million, a drop of 5% on the previous census.

The Asian population now stands at 4.8 million, while the non-Hispanic black population is down 1% at 2.2 million.

Redrawing districts

The state’s Hispanic population under 18 years of age increased 17%, while the number of non-Hispanic white children fell 21% over the past decade. “Hispanics are the future of California,” William Frey from the Brookings Institution told the Washington Post. “Any local or state initiatives that have to do with education need to reach out to this population.”

California grew by some 10% over the past decade, on par with the national average. But it was not enough for the state to pick up more seats in the House of Representatives. This contrasts with the next biggest state, Texas, whose population grew nearly 19% to 25 million and has gained an extra four congressional seats.

The figures released on Tuesday also show a shift in population within California. Inland areas registered more growth rather than the traditional centres such as Los Angeles and San Francisco.

The census figures are also used to redraw legislative and congressional districts within states. The 2010 Census figures will have more impact than before because for the first time an independent body, the Citizens Redistricting Commission, will be responsible for setting the boundaries for districts represented in California’s Senate and Assembly.

Previously, districts were redrawn by politicians.

Source: HispanicTips.com, BBC Mobile, 3/9/2011

Whether to itemize deductions on your tax return depends on how much you spent on certain expenses last year. Money paid for medical care, mortgage interest, taxes, charitable contributions, casualty losses and miscellaneous deductions can reduce your taxes. If the total amount spent on those categories is more than your standard deduction, you can usually benefit by itemizing.

1. Standard deduction amounts are based on your filing status and are subject to inflation adjustments each year. For 2010, they are:

+ Single $5,700
+ Married Filing Jointly $11,400
+ Head of Household $8,400
+ Married Filing Separately $5,700
+ Qualifying Widow(er) $11,400

2. Some taxpayers have different standard deductions The standard deduction amount depends on your filing status, whether you are 65 or older or blind and whether an exemption can be claimed for you by another taxpayer. If any of these apply, you must use the Standard Deduction Worksheet on the back of Form 1040EZ, or in the 1040A or 1040 instructions. The standard deduction amount also depends on whether you plan to claim the additional standard deduction for a loss from a disaster declared a federal disaster or state or local sales or excise tax you paid in 2010 on a new vehicle you bought before 2010. You must file Schedule L, Standard Deduction for Certain Filers to claim these additional amounts.

3. Limited itemized deductions Your itemized deductions are no longer limited because of your adjusted gross income.

4. Married Filing Separately When a married couple files separate returns and one spouse itemizes deductions, the other spouse cannot claim the standard deduction and therefore must itemize to claim their allowable deductions.

5. Some taxpayers are not eligible for the standard deduction They include nonresident aliens, dual-status aliens and individuals who file returns for periods of less than 12 months due to a change in accounting periods.

6. Forms to use The standard deduction can be taken on Forms 1040, 1040A or 1040EZ. If you qualify for the higher standard deduction for new motor vehicle taxes or a net disaster loss, you must attach Schedule L. To itemize your deductions, use Form 1040, U.S. Individual Income Tax Return, and Schedule A, Itemized Deductions.

Source: irs.gov, IRS Tax Tip 2011-48

The IRS is offering people with undisclosed income from offshore accounts an opportunity to participate in a new, voluntary disclosure initiative to get current on their tax returns. The 2011 OVDI will be available only through Aug. 31, 2011.

The news release, announcing the agency’s terms for its offshore voluntary disclosure initiative was translated into Chinese ( Traditional and Simplified), Farsi, German, Hindi, Korean, Russian, Spanish and Vietnamese.

The agency has taken this step to get information about the initiative to people that need it in response to requests made by taxpayers and tax professionals. A similar effort took place in 2009, when the IRS translated material on its special provisions for undisclosed offshore accounts into several languages.

The 2011 initiative has a higher penalty rate than the previous voluntary disclosure program, which ended on Oct. 15, 2009, but offers clear benefits to encourage taxpayers to disclose foreign accounts now rather than risk IRS detection and possible criminal prosecution.

Taxpayers participating in the new initiative must file all original and amended tax returns and include payment for taxes, interest and accuracy-related penalties by the Aug. 31 deadline.

The IRS recently launched a new section on www.IRS.gov that includes the full terms and conditions on the 2011 Offshore Voluntary Disclosure Initiative, including an extensive set of questions and answers to help taxpayers and tax professionals. The web site also includes details on how people can make a voluntary disclosure.

Complete information about this initiative including all of the translations can be found by typing the term ‘voluntary disclosure’ on IRS.gov.

Source: irs.gov, IR-2011-25

1. The care must have been provided for one or more qualifying persons. A qualifying person is your dependent child age 12 or younger when the care was provided. Additionally, your spouse and certain other individuals who are physically or mentally incapable of self-care may also be qualifying persons. You must identify each qualifying person on your tax return.

2. The care must have been provided so you – and your spouse if you are married filing jointly – could work or look for work.

3. You – and your spouse if you file jointly – must have earned income from wages, salaries, tips, other taxable employee compensation or net earnings from self-employment. One spouse may be considered as having earned income if they were a full-time student or were physically or mentally unable to care for themselves.

4. The payments for care cannot be paid to your spouse, to the parent of your qualifying person, to someone you can claim as your dependent on your return, or to your child who will not be age 19 or older by the end of the year even if he or she is not your dependent. You must identify the care provider(s) on your tax return.

5. Your filing status must be single, married filing jointly, head of household or qualifying widow(er) with a dependent child.

6. The qualifying person must have lived with you for more than half of 2010. There are exceptions for the birth or death of a qualifying person, or a child of divorced or separated parents. See Publication 503, Child and Dependent Care Expenses.

7. The credit can be up to 35 percent of your qualifying expenses, depending upon your adjusted gross income.

8. For 2010, you may use up to $3,000 of expenses paid in a year for one qualifying individual or $6,000 for two or more qualifying individuals to figure the credit.

9. The qualifying expenses must be reduced by the amount of any dependent care benefits provided by your employer that you deduct or exclude from your income.

10. If you pay someone to come to your home and care for your dependent or spouse, you may be a household employer and may have to withhold and pay social security and Medicare tax and pay federal unemployment tax. See Publication 926, Household Employer’s Tax Guide.

For more information on the Child and Dependent Care Credit, see Publication 503, Child and Dependent Care Expenses. You may download these free publications from http://www.irs.gov or order them by calling 800-TAX-FORM (800-829-3676).

Source: irs.gov, IRS Tax Tip 2011-46

Here are six facts the Internal Revenue Service wants you to know about the AMT and changes for 2010.

1. Tax laws provide tax benefits for certain kinds of income and allow special deductions and credits for certain expenses. These benefits can drastically reduce some taxpayers’ tax obligations. Congress created the AMT in 1969, targeting higher-income taxpayers who could claim so many deductions they owed little or no income tax.

2. Because the AMT is not indexed for inflation, a growing number of middle-income taxpayers are discovering they are subject to the AMT.

3. You may have to pay the AMT if your taxable income for regular tax purposes plus any adjustments and preference items that apply to you are more than the AMT exemption amount.

4. The AMT exemption amounts are set by law for each filing status.

5. For tax year 2010, Congress raised the AMT exemption amounts to the following levels:

+ $72,450 for a married couple filing a joint return and qualifying widows and widowers;
+ $47,450 for singles and heads of household;
+ $36,225 for a married person filing separately.

6. The minimum AMT exemption amount for a child whose unearned income is taxed at the parents’ tax rate has increased to $6,700 for 2010.

Use the IRS AMT Assistant to determine whether you may be subject to the AMT. Taxpayers can find more information about the Alternative Minimum Tax and how it impacts them by accessing IRS Form 6251, Alternative Minimum Tax —Individuals, and its instructions at http://www.irs.gov or by calling 800-TAX-FORM (800-829-3676).

Source: IRS.gov, IRS Tax Tip 2011-47

Liberty Tax Service received the following honors:

Black EOE Journal “2010 Best of the Best”
(Fall 2010 Issue)
2010 Top Diversity Employers for African Americans
2010 Top 100 Supplier Diversity Programs for African Americans
2010 Top 25 Franchises for African Americans

Hispanic Network Magazine “2010 Best of the Best”
(Fall 2010 Issue)
2010 Top Diversity Employers for Hispanics
2010 Top 100 Supplier Diversity Programs for Hispanics
2010 Top 25 Franchises for Hispanics

Professional Woman’s Magazine “2010 Best of the Best”
(Circulation: Winter 2010-2011)
2010 Top Employers for Women
2010 Supplier Diversity Programs for Women
2010 Top Franchises

This year, more than 900 of the most prominent corporations in the United States were included in the extensive search. Olive Tree Publishing staff gathered data and performed extensive non-biased studies in the areas of diversity employment, supplier diversity, and corporations by industry (financial institutions, auto makers, retailers, etc.), and education. The studies include the evaluation of data from independent research organizations, market research reports, public information, 10-K annual reports, survey responses, interviews, and the OTP Research Division.

”We are honored to be recognized by these prestigious publications once again,” explains Liberty Tax Founder and CEO John Hewitt. “Diversity in the workplace has always been a prime directive for us at Liberty Tax Service and we take great pride in our efforts to provide business and career opportunities to talented individuals regardless of race, color or gender. As a matter of fact, we believe our success is driven by our multicultural business approach.”

Virginia Beach, VA – Marzo 3, 2011 – Olive Tree Publishing, Inc., la editorial que publica las revistas Black EOE Journal, Hispanic Network Magazine, y Professional Woman’s Magazine, anunció que Liberty Tax Service ha sido reconocido por segundo año consecutivo como parte de la serie de revisiones anuales de estas publicaciones denominada “Best of the Best” (Lo mejor de lo mejor) de 2010. La evaluación anual, en su 19º año, establece el estándar para identificar a las empresas que ofrecen las mejores oportunidades profesionales para las minorías y es la evaluación de las oportunidades de crecimiento profesional para minorías en las empresas estadounidenses más respetada.

Liberty Tax Service recibió los siguientes honores:

Hispanic Network Magazine “2010 Best of the Best”
(Circulación: Otoño 2010)
2010 Empleadores de diversidad para hispanos más exitosos
2010 Los 100 programas de diversidad de proveedores para hispanos más exitosos
2010 Las 25 franquicias más exitosas

Black EOE Journal “2010 Best of the Best”
(Circulación: Otoño 2010)
2010 Empleadores de diversidad para afroamericanos más exitosos
2010 Los 100 programas de diversidad de proveedores para afroamericanos más exitosos
2010 Las 25 franquicias más exitosas

Professional Woman’s Magazine “2010 Best of the Best”
(Circulación: Invierno 2010-2011)
2010 Empleadores de diversidad para mujeres más exitosos
2010 Programas de diversidad de proveedores para mujeres más exitosos
2010 Franquicias más exitosas

Este año, más de 900 de las empresas norteamericanas más importantes fueron incluidas en esta exhaustiva búsqueda. El personal de Olive Tree Publishing reunió información y realizó extensos estudios imparciales en las áreas de empleo de fuerza laboral diversa, diversidad de proveedores, y empresas por industrias (instituciones financieras, industria automotriz, minoristas, etc.), e instituciones educativas. Los estudios incluyen la evaluación de información de organizaciones de investigación independientes, estudios de mercado, información pública, reportes anuales 10-K, respuestas a encuestas, entrevistas y la División de investigación OTP.

”Una vez más, nos sentimos honrados de recibir el reconocimiento por parte de estas prestigiosas publicaciones”, afirmó John Hewitt, fundador y director ejecutivo de Liberty Tax. “La diversidad en el lugar de trabajo ha sido siempre una de las principales directrices para nosotros en Liberty Tax Service y nos enorgullecemos de los esfuerzos que realizamos para proporcionar oportunidades profesionales y de negocios a individuos talentosos independientemente de su raza, color o sexo. De hecho, creemos que nuestro éxito es impulsado por el enfoque multicultural con el que manejamos nuestro negocio.”

You generally must include in your gross income all amounts you receive as rent. Rental income is any payment you receive for the use of or occupation of property. Expenses of renting property can be deducted from your gross rental income. You generally deduct your rental expenses in the year you pay them. Publication 527, Residential Rental Property, includes information on the expenses you can deduct if you rent property.

1. When to report income. You generally must report rental income on your tax return in the year that you actually receive it.

2. Advance rent. Advance rent is any amount you receive before the period that it covers. Include advance rent in your rental income in the year you receive it, regardless of the period covered.

3. Security deposits. Do not include a security deposit in your income when you receive it if you plan to return it to your tenant at the end of the lease. But if you keep part or all of the security deposit during any year because your tenant does not live up to the terms of the lease, include the amount you keep in your income in that year.

4. Property or services in lieu of rent. If you receive property or services, instead of money, as rent, include the fair market value of the property or services in your rental income. If the services are provided at an agreed upon or specified price, that price is the fair market value unless there is evidence to the contrary.

5. Expenses paid by tenant. If your tenant pays any of your expenses, the payments are rental income. You must include them in your income. You can deduct the expenses if they are deductible rental expenses. See Rental Expenses in Publication 527, for more information.

6. Rental expenses. Generally, the expenses of renting your property, such as maintenance, insurance, taxes, and interest, can be deducted from your rental income.

7. Personal use of vacation home. If you have any personal use of a vacation home or other dwelling unit that you rent out, you must divide your expenses between rental use and personal use. If your expenses for rental use are more than your rental income, you may not be able to deduct all of the rental expenses.

Source: irs.gov, Tax Tip 2011-45

Anyone who contemplates arguing on legal grounds against paying their fair share of taxes should first read the 84-page document, The Truth About Frivolous Tax Arguments.

The document explains many of the common frivolous arguments made in recent years and it describes the legal responses that refute these claims. It will help taxpayers avoid wasting their time and money with frivolous arguments and incurring penalties.

Congress in 2006 increased the amount of the penalty for frivolous tax returns from $500 to $5,000. The increased penalty amount applies when a person submits a tax return or other specified submission, and any portion of the submission is based on a position the IRS identifies as frivolous.

The 2011 version of the IRS document includes numerous recently decided cases that continue to demonstrate that frivolous positions have no legitimacy.

Frivolous arguments include contentions that taxpayers can refuse to pay income taxes on religious or moral grounds by invoking the First Amendment; that the only “employees” subject to federal income tax are employees of the federal government; and that only foreign-source income is taxable.

In addition, the document highlights cases involving injunctions against preparers and promoters of Form 1099-Original Issue Discount schemes, and the imposition of criminal and civil penalties on taxpayers who claimed they were not citizens of the United States for federal income tax purposes.

Source: irs.gov, IR-2011-23

1. Normally, debt forgiveness results in taxable income. However, under the Mortgage Forgiveness Debt Relief Act of 2007, you may be able to exclude up to $2 million of debt forgiven on your principal residence.

2. The limit is $1 million for a married person filing a separate return.

3. You may exclude debt reduced through mortgage restructuring, as well as mortgage debt forgiven in a foreclosure.

4. To qualify, the debt must have been used to buy, build or substantially improve your principal residence and be secured by that residence.

5. Refinanced debt proceeds used for the purpose of substantially improving your principal residence also qualify for the exclusion.

6. Proceeds of refinanced debt used for other purposes – for example, to pay off credit card debt – do not qualify for the exclusion.

7. If you qualify, claim the special exclusion by filling out Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness, and attach it to your federal income tax return for the tax year in which the qualified debt was forgiven.

8. Debt forgiven on second homes, rental property, business property, credit cards or car loans does not qualify for the tax relief provision. In some cases, however, other tax relief provisions – such as insolvency – may be applicable. IRS Form 982 provides more details about these provisions.

9. If your debt is reduced or eliminated you normally will receive a year-end statement, Form 1099-C, Cancellation of Debt, from your lender. By law, this form must show the amount of debt forgiven and the fair market value of any property foreclosed.

10. Examine the Form 1099-C carefully. Notify the lender immediately if any of the information shown is incorrect. You should pay particular attention to the amount of debt forgiven in Box 2 as well as the value listed for your home in Box 7.

Source: irs.gov, Tax Tip 2011-44

1. Payments you receive from your Individual Retirement Arrangement before you reach age 59 ½ are generally considered early or premature distributions.

2. Early distributions are usually subject to an additional 10 percent tax.

3. Early distributions must also be reported to the IRS.

4. Distributions you rollover to another IRA or qualified retirement plan are not subject to the additional 10 percent tax. You must complete the rollover within 60 days after the day you received the distribution.

5. The amount you roll over is generally taxed when the new plan makes a distribution to you or your beneficiary.

6. If you made nondeductible contributions to an IRA and later take early distributions from your IRA, the portion of the distribution attributable to those nondeductible contributions is not taxed.

7. If you received an early distribution from a Roth IRA, the distribution attributable to your prior contributions is not taxed.

8. If you received a distribution from any other qualified retirement plan, generally the entire distribution is taxable unless you made after-tax employee contributions to the plan.

9. There are several exceptions to the additional 10 percent early distribution tax, such as when the distributions are used for the purchase of a first home, for certain medical or educational expenses, or if you are disabled.

10. For more information about early distributions from retirement plans, the additional 10 percent tax and all the exceptions see IRS Publication 575, Pension and Annuity Income and Publication 590, Individual Retirement Arrangements (IRAs). Both publications are available at IRS.gov or by calling 800-TAX-FORM (800-829-3676).

Source: irs.gov, IRS Tax Tip 2011-42

The IRS estimates that half of these potential 2007 refunds are $640 or more.

Some people may not have filed because they had too little income to require filing a tax return even though they had taxes withheld from their wages or made quarterly estimated payments. In cases where a return was not filed, the law provides most taxpayers with a three-year window of opportunity for claiming a refund. If no return is filed to claim a refund within three years, the money becomes property of the U.S. Treasury.

For 2007 returns, the window closes on April 18, 2011. The law requires that the return be properly addressed, mailed and postmarked by that date. There is no penalty for filing a late return qualifying for a refund.

The IRS reminds taxpayers seeking a 2007 refund that their checks will be held if they have not filed tax returns for 2008 and 2009. In addition, the refund will be applied to any amounts still owed to the IRS, and may be used to offset unpaid child support or past due federal debts such as student loans.

By failing to file a return, people stand to lose more than a refund of taxes withheld or paid during 2007. In addition, many low-and-moderate income workers may not have claimed the Earned Income Tax Credit (EITC). The EITC helps individuals and families whose incomes are below certain thresholds, which in 2007 were $39,783 for those with two or more children, $35,241 for people with one child, and $14,590 for those with no children.

Source: Irs.gov, IR-2011-21

1. Income Limits The Savers Credit, formally known as the Retirement Savings Contributions Credit, applies to individuals with a filing status and income of:

- Single, married filing separately, or qualifying widow(er), with income up to $27,750
- Head of Household with income up to $41,625
- Married Filing Jointly, with incomes up to $55,500

2. Eligibility requirements To be eligible for the credit you must have been born before January 2, 1992, you cannot have been a full-time student during the calendar year and cannot be claimed as a dependent on another person’s return.

3. Credit amount If you make eligible contributions to a qualified IRA, 401(k) and certain other retirement plans, you may be able to take a credit of up to $1,000 or up to $2,000 if filing jointly. The credit is a percentage of the qualifying contribution amount, with the highest rate for taxpayers with the least income.

4. Distributions When figuring this credit, you generally must subtract the amount of distributions you have received from your retirement plans from the contributions you have made. This rule applies to distributions received in the two years before the year the credit is claimed, the year the credit is claimed, and the period after the end of the credit year but before the due date – including extensions – for filing the return for the credit year.

5. Other tax benefits The Retirement Savings Contributions Credit is in addition to other tax benefits which may result from the retirement contributions. For example, most workers at these income levels may deduct all or part of their contributions to a traditional IRA. Contributions to a regular 401(k) plan are not subject to income tax until withdrawn from the plan.

6. Forms to use To claim the credit use Form 8880, Credit for Qualified Retirement Savings Contributions.

For more information, review IRS Publication 590, Individual Retirement Arrangements (IRAs), Publication 4703, Retirement Savings Contributions Credit, and Form 8880. Publications and forms can be downloaded at http://www.irs.gov or ordered by calling 800-TAX-FORM (800-829-3676).

Source: irs.gov, Tax Tip 2011-36

1. Online Access to Refund Information Where’s My Refund? or ¿Dónde está mi reembolso? are interactive tools on http://www.irs.gov and are the fastest, easiest way to get information about your federal income tax refund. Whether you split your refund among several accounts, opted for direct deposit into one account, used part of your refund to buy U.S. Savings Bonds or asked the IRS to mail you a check, Where’s My Refund? and ¿Dónde está mi reembolso? give you online access to your refund information, 24 hours a day, 7 days a week. It’s quick, easy and secure.

2. When to Check Refund Status If you e-file, you can get refund information 72 hours after the IRS acknowledges receipt of your return. If you file a paper return, refund information will generally be available three to four weeks after mailing your return.

3. What You Need to Check Refund Status When checking the status of your refund, have your federal tax return handy. To get your personalized refund information you must enter:

- Your Social Security Number or Individual Taxpayer Identification Number
- Your filing status which will be Single, Married Filing Joint Return, Married.
- Filing Separate Return, Head of Household, or Qualifying Widow(er).
- Exact whole dollar refund amount shown on your tax return.

4. What the Online Tool Will Tell You Once you enter your personal information, you could get several responses, including:

- Acknowledgement that your return was received and is in processing.
- The mailing date or direct deposit date of your refund.
- Notice that the IRS could not deliver your refund due to an incorrect address. In this instance, you may be able to change or correct your address online using Where’s My Refund?

5. Customized Information Where’s My Refund? also includes links to customized information based on your specific situation. The links guide you through the steps to resolve any issues affecting your refund. For example, if you do not get the refund within 28 days from the original IRS mailing date shown on Where’s My Refund?, you may be able to start a refund trace.

6. Visually Impaired Taxpayers Where’s My Refund? is also accessible to visually impaired taxpayers who use the Job Access with Speech screen reader used with a Braille display and is compatible with different JAWS modes.

7. Toll-free Number If you do not have internet access, you can check the status of your refund in English or Spanish by calling the IRS Refund Hotline at 800-829-1954 or the IRS TeleTax System at 800-829-4477. When calling, you must provide your or your spouse’s Social Security number, filing status and the exact whole dollar refund amount shown on your return.

8. IRS2Go This is the IRS’ first smartphone application that lets taxpayers check on the status of their tax refund. Apple users can download the free IRS2Go application by visiting the Apple App Store. Android users can visit the Android Marketplace to download the free IRS2Go app.

Source: irs.gov, Tax Tip 2011-39

Here are five things the IRS wants you to know about phishing scams:

1. The IRS doesn’t ask for detailed personal and financial information like PIN numbers, passwords or similar secret access information for credit card, bank or other financial accounts.

2. The IRS does not initiate taxpayer communications through e-mail and won’t send a message about your tax account. If you receive an e-mail from someone claiming to be the IRS or directing you to an IRS site:

Do not reply to the message.
Do not open any attachments. Attachments may contain malicious code that will infect your computer.
Do not click on any links. If you clicked on links in a suspicious e-mail or phishing website and entered confidential information, visit the IRS website and enter the search term ‘identity theft’ for more information and resources to help.

3. The address of the official IRS website is http://www.irs.gov. Do not be confused or misled by sites claiming to be the IRS but ending in .com, .net, .org or other designations instead of .gov. If you discover a website that claims to be the IRS but you suspect it is bogus, do not provide any personal information on the suspicious site and report it to the IRS.

4. If you receive a phone call, fax or letter in the mail from an individual claiming to be from the IRS but you suspect they are not an IRS employee, contact the IRS at 1-800-829-1040 to determine if the IRS has a legitimate need to contact you. Report any bogus correspondence.

5. You can help shut down these schemes and prevent others from being victimized. Details on how to report specific types of scams and what to do if you’ve been victimized are available at http://www.irs.gov, keyword “phishing.”

Source: irs.gov, Tax Tip 2011-38

1. Change Your IRS Address Records You can change your address on file with the IRS in several ways:

- Write the new address in the appropriate boxes on your tax return;
- Use Form 8822, Change of Address, to submit an address or name change any time during the year;
- Give the IRS written notification of your new address by writing to the IRS center where you file your return. Include your full name, old and new addresses, Social Security Number or Employer Identification Number and signature. If you filed a joint return, be sure to include the information for both taxpayers. If you filed a joint return and have since established separate residences, each spouse should notify the IRS of their new address; and
- Should an IRS employee contact you about your account, you may be able to verbally provide a change of address.

2. Notify Your Employer Be sure to also notify your employer of your new address so you get your W-2 forms on time.

3. Notify the Post Office If you change your address after you’ve filed your return, don’t forget to notify the post office at your old address so your mail can be forwarded.

4. Estimated Tax Payments If you make estimated tax payments throughout the year, you should mail a completed Form 8822, Change of Address, or write the IRS campus where you file your return. You may continue to use your old pre-printed payment vouchers until the IRS sends you new ones with your new address. However, do not correct the address on the old voucher.

5. Postal Service The IRS does use the Postal Service’s change of address files to update taxpayer addresses, but it’s still a good idea to notify the IRS directly.

Visit http://www.irs.gov for more information about changing your address. At http://www.irs.gov, you can also find the address of the IRS center where you file your tax return or download Form 8822. The form is also available by calling 800-TAX-FORM (800-829-3676).

Source: irs.gov, Tax Tip 2011-37

Here are ten facts from the IRS about gains and losses and how they can affect your Federal income tax return.

1. Almost everything you own and use for personal purposes, pleasure or investment is a capital asset.

2. When you sell a capital asset, the difference between the amount you sell it for and your basis – which is usually what you paid for it – is a capital gain or a capital loss.

3. You must report all capital gains.

4. You may deduct capital losses only on investment property, not on property held for personal use.

5. Capital gains and losses are classified as long-term or short-term, depending on how long you hold the property before you sell it. If you hold it more than one year, your capital gain or loss is long-term. If you hold it one year or less, your capital gain or loss is short-term.

6. If you have long-term gains in excess of your long-term losses, you have a net capital gain to the extent your net long-term capital gain is more than your net short-term capital loss, if any.

7. The tax rates that apply to net capital gain are generally lower than the tax rates that apply to other income. For 2010, the maximum capital gains rate for most people is 15%. For lower-income individuals, the rate may be 0% on some or all of the net capital gain. Special types of net capital gain can be taxed at 25% or 28%.

8. If your capital losses exceed your capital gains, the excess can be deducted on your tax return and used to reduce other income, such as wages, up to an annual limit of $3,000, or $1,500 if you are married filing separately.

9. If your total net capital loss is more than the yearly limit on capital loss deductions, you can carry over the unused part to the next year and treat it as if you incurred it in that next year.

10. Capital gains and losses are reported on Schedule D, Capital Gains and Losses, and then transferred to line 13 of Form 1040.

Source: irs.gov, Tax Tip 2011-35

The “GenYLA” study is a new research study conducted by the Telemundo Communications Group, a proven leader in Hispanic research, on the current state of Young Latino Americans (YLAS), ages 18-34, one of the fastest growing and increasingly important segments of the population, especially for marketers. The Telemundo Communications Group provides clients with insight into their target consumers through custom proprietary research solutions that are instrumental in analyzing and shaping their marketing and advertising initiatives. Past studies have included, What Latinas Want, Beyond Demographics: Latino Identity Study, Connexion Cultural and The me 2 Study.

“It is said that in every decade a new generation brings forth a big change. In the next 40 years the U.S. population will expand by one hundred million people fueled primarily by US Hispanics,” said Jacqueline Hernandez, Chief Operating Officer, Telemundo, Communications Group, Inc. “As a proven leader in Hispanic research, Telemundo and mun2 are at the forefront of consumer insights with marketplace studies like Gen YLA.”

The dynamic set of key findings from the “GenYLA” study include:

+ YLAS are highly maintaining their culture and heritage while still embracing their American Lifestyle.

+ YLAS love being bi-cultural. More than one third (37%) of YLAS self-identified themselves as both Hispanic and American, identifying with both cultures equally the same. At the other end of the spectrum, only 2% felt more American than Hispanic. YLAS are in the midst of a retro-acculturation explosion. Because of the YLAS strong pride in their homeland and country of origin, this generation is re-discovering their heritage and is experiencing a Latino re-awakening. YLAS are going from George…to Jorge.

+ For YLAS it is easy to toggle in and out of both the Hispanic and American cultures.

+ YLAS live in a cultural fluid environment. YLAS best describe their closest group of friends an EQUAL mix of Latino and American, in fact, 48% ‘hung out’ with this group of people. In this continuum, YLAS were least likely to have only non-Latino friends, representing only 2% of those surveyed.

+ YLAS have no language boundaries or barriers.

+ YLAS language mobility greatly depends on the place or situation they are in – they are chameleons in their space – they control it and they like it! At home, where the TVs are on, and with family – a larger percent choose to speak Spanish (39% at home, 55% with family); while at work (74%) and school (79%) the preference was English. Last but not least, among their friends, YLAs practice a mix of Spanglish.

+ YLAS are the always-connected generation.

+ YLAS are multi-taskers. YLAS are always consuming high levels of anything technological: 94% have access to the Internet at home; 84% Have high-speed internet; and 87% stream video content, with another 73% that listen to music on the internet. Laptop ownership has taken precedence over desktop, with 73% that own a PC or a Mac.

+ With a huge strength in mobile usage, a high percent (87%) of YLAS cannot live without it. YLAS are great multi-taskers as many of the activities they focus on are also centered among an online environment. While a majority they told us they eat while watching television (80%), they also text (61%), talk on the phone (60%) and surf the web (50%).

Methodology
mun2 started to explore these concepts back in 2009 and recently re-visited them in December 2010, solidifying and further confirming these findings. The studies were conducted via an online nationally representative sample of over 400 Young Hispanics, between the ages of 18-34. With language as base, it focused across culture, identity, retro-acculturation, social interaction, and media. This was coupled with in-home ethnography groups, or ‘friends sessions’, in LA, NY and MIA, which verbally captured the survey findings and thoughts of the YLA.

Source: hispanicad.com, 2/17/2011

Here are seven things the IRS wants you to know about the expanded adoption credit.

1. Beginning in tax year 2010 the credit is refundable, meaning that you can get it even if you owe no tax.

2. For tax year 2010, you must file a paper tax return and Form 8839, Qualified Adoption Expenses, to get the credit and you must attach documents supporting the adoption.

3. Documents may include a final adoption decree, placement agreement from an authorized agency, court documents and the state’s determination for special needs children.

4. Qualified adoption expenses are reasonable and necessary expenses directly related to the legal adoption of the child. These expenses may include adoption fees, court costs, attorney fees and travel expenses.

5. An eligible child must be under 18 years old, or physically or mentally incapable of caring for himself or herself.

6. If your modified adjusted gross income is more than $182,520, your credit is reduced. If your modified AGI is $222,520 or more, you cannot take the credit.

7. Taxpayers claiming the credit will still be able to use IRS Free File to prepare their returns, but the returns must be printed and mailed to the IRS, along with all required documentation.

Source: irs.gov, TAx Tip 2011-34

(Virginia Beach, VA) Despite an unusual start to tax season 2011, Liberty Tax Service reports a 14.2% increase in the total number of returns filed as of February 15, 2011 and a 15.1% increase in revenues generated. Same store sales show a 7.4% increase and net fees are up .8%. Since it was founded in 1997, The Company has demonstrated explosive growth in an industry formerly dominated by tax giant H&R Block (NYSE:HRB), and Jackson Hewitt (NYSE:JTX). Liberty Tax now operates 3,800 offices in the United States and Canada.

“Despite bitter snowstorms, and the fact that some forms, such as the Schedule A to report itemized deductions, were not eligible to be filed prior to February 14, the tax season is progressing at a great pace for Liberty,” stated John Hewitt, CEO and founder of Liberty Tax.

“This has been a challenging beginning to the tax season, probably one of the most challenging in the 42 years I’ve been in the tax business. It’s been hard to predict what would happen,” said Hewitt. “We have a much clearer picture now.”

“Although many companies continue to make investments in building their brands and their business strategically in the Hispanic market, our survey shows a significant gap in companies’ ability to engage and build equity with the fastest growing demographic in America,” said Charles Garcia, chief executive officer of Garcia Trujillo and member of the board of directors of Winn-Dixie Stores, one of the largest supermarket chains in the Southeast.

The objective of the study was to explore Hispanic perception about how U.S. companies -broadly defined as large corporations and brands- treat U.S. Hispanic consumers. Given the growth of the Hispanic population in the United States, which is currently estimated at 50 million people, and the concomitant growth in a Hispanic consumer market, this study explores whether perceptions about the way in which large U.S. companies and brands treat Hispanics affects their ability to attract them as consumers.

Findings include:

* Although 59.3% of the consumers surveyed believe that the Hispanic market is important to companies and brands in the U.S., nearly 42% believe U.S. companies have little respect for them as consumers

* 94% of those surveyed want companies, products or brands in this country to have Spanish speaking spokespeople in their advertising and information campaigns

* 15.5 would like to see products and services specifically created for the Latino consumer

* More than 60% believe that Hispanic workers face serious obstacles to advancement, with only 42% claiming U.S. companies provide very few opportunities for growth– Nearly 60% believe language and 21.7% a college degree are the biggest obstacles to moving up.

* 60% believe companies are committed to their Hispanic employees; however, when asked how many Hispanics (in your best estimate) are currently in management or in leadership roles in companies in the United States, most Hispanics thought that less than 10%.

“This data demonstrates the strategic opportunities for companies and brands to connect with Latinos in meaningful ways, said Sol Trujillo, chairman of Garcia Trujillo and a member of the board of Target and WPP Group, the global marketing conglomerate.

This study reveals that a majority of Hispanics have a very negative perception about their own personal chances of growing professionally, with 42% claiming that U.S. companies provide very few opportunities for growth. According to the analysis done by Newlink Research, the absence of English language skills and low educational attainment are the most serious obstacles to Hispanic advancement.

“Considering that Hispanics make up about 16% of the population of the United States and that over the next four decades they will represent the largest growing market segment, U.S. companies should begin to take into account this enormous gap and begin to structure responses that prepare them for the future,” said Eduardo Gamarra, PhD, Newlink Research managing partner and professor at Florida International University. “Hispanic human capital already represents an enormous underutilized resource.”

To download report CLICK HERE

Source: Hispanicad.com, 2/16/2011

Bartering is the trading of one product or service for another. Usually there is no exchange of cash. However, the fair market value of the goods and services exchanged must be reported as income by both parties.

Here are four facts about bartering that the IRS wants small business owners to be aware of:

1. Barter Exchange A barter exchange functions primarily as the organizer of a marketplace where members buy and sell products and services among themselves. Whether this activity operates out of a physical office or is internet based, a barter exchange is generally required to issue Form 1099-B, Proceeds from Broker and Barter Exchange Transactions, annually to their clients or members and to the IRS.

2. Barter Income Barter dollars or trade dollars are identical to real dollars for tax reporting. If you conduct any direct barter – barter for another’s products or services – you will have to report the fair market value of the products or services you received on your tax return.

3. Taxes Income from bartering is taxable in the year it is performed. Bartering may result in liabilities for income tax, self-employment tax, employment tax, or excise tax. Your barter activities may result in ordinary business income, capital gains or capital losses, or you may have a nondeductible personal loss.

4. Reporting The rules for reporting barter transactions may vary depending on which form of bartering takes place. Generally, you report this type of business income on Form 1040, Schedule C Profit or Loss from Business, or other business returns such as Form 1065 for Partnerships, Form 1120 for Corporations, or Form 1120-S for Small Business Corporations.

For more information see the Bartering Tax Center in the Business section at http://www.irs.gov.

Source: irs.gov, Tax Tip 2011-33

Liberty Tax Service, the fastest-growing tax preparation company in history, announced that its Hispanic community initiative, “Una Familia Sin Fronteras” (A Family Without Boundaries), is expanding to cover 29 major Hispanic markets (DMAs) with impactful radio schedules in 2011. Additionally, as yet another extension of its multi-faceted Hispanic initiative, Liberty Tax Service has introduced Doña Libertad (Lady Liberty), an easily-accessible, trustworthy financial information advisor and resource for the Hispanic community.

From January through April, Liberty Tax Service is sponsoring and hosting live weekly 30-minute Spanish-language radio programs nationwide that provide listeners with wide-ranging education and advice about the US tax system, including the importance of paying US income tax, as well as the benefits and application process for ITIN’s (tax ID’s) for non-resident taxpayers and all members of their families. The radio show is interactive and provides a convenient way for Spanish-speaking listeners to call in, ask questions on the air and get reliable advice about the tax process and their obligations in their own language. The shows are already proving to be of great interest to listeners. In only three weeks, over 950 calls had been received from consumers with all sorts of financial questions, allowing Liberty Tax to help clarify doubts and resolve issues for listeners throughout the country. All programs are hosted by bilingual tax professionals from local Liberty Tax Service offices, certified with Liberty’s Hispanic Services Seal of Excellence, indicating they have acquired the appropriate Hispanic-specific tax and culture training for competency in communication and performance in Hispanic communities. Only certified offices are allowed to participate in the Una Familia Sin Fronteras corporate Hispanic initiative.

Additionally, through a series of PSAs and guest appearances on these radio shows, Liberty Tax Service is providing local and national nonprofit organizations with free airtime to provide valuable health and service information to the Hispanic community. The partnerships with these various community organizations seek to improve the lives of Hispanic community members via FREE education on key issues and topics, family and individual support programs, and community-building programs.

Doña Libertad (Lady Liberty) is a corporate icon who was created to help Spanish-language preferring consumers feel more comfortable with a consultant that represents their culture. The goal of Liberty’s Doña Libertadis to increase the knowledge about financial and fiscal responsibility, enhance financial literacy, provide education about first-time homeownership, as well as to teach tax management for Hispanics across the US through FREE educational programs. Doña Libertad’s friendly, graphically-represented persona brings this important information to Hispanic consumers through a non-threatening character.“ Through Doña Libertad and our interactive Spanish radio formats, we are acting as educators and advocates for the empowerment of our Hispanic communities across the nation that only education can provide,” explains Martee Pierson, Director of Diversity Programs for Liberty Tax Service. “Our work with Hispanic adult outreach programs through over 21 school districts (and growing), nonprofit organizations and Mexican Consulates across the US allows Doña Libertad to reach thousands of new immigrants with free information that will help them meet their fiscal obligations, as well as benefit from the many free services our partner organizations provide.” Doña Libertad helps the Hispanic community through Liberty’s radio shows and her webpage http://www.libertytaxespanol.com/blogs/cliente/ where anyone can email a question for a personal response from this “trusted community advisor”.

Liberty’s Una Familia Sin Fronteras is an educational outreach program that brings financial and fiscal education seminars and courses to Hispanic communities across the nation, at no cost. Courses and seminars are taught in Spanish and many qualify for college credits through the University of Phoenix. “Liberty Tax Service has long been involved in community service and educational projects on a national level. To better serve the Hispanic community, we created the Una Familia Sin Fronteras initiative to bring value, education and ultimately, financial and fiscal success to Hispanics throughout the United States,” says John Hewitt, Founder and CEO of Liberty Tax Service.

Liberty Tax Service, la compañía de preparación de impuestos con mayor crecimiento en la historia de esta industria, anunció que su iniciativa Hispana, “Una Familia Sin Fronteras” se está expandiendo a 29 importantes mercados Hispanos (DMAs) con impactantes pautas en radio durante 2011. Además, como una extensión más de su multifacética iniciativa Hispana, Liberty Tax Service presentó a Doña Libertad, una consejera financiera confiable y accesible, como un recurso más para la Comunidad Hispana.

Desde enero y hasta abril, Liberty Tax Service estará patrocinando y llevando a cabo programas de radio de 30 minutos, en vivo y en español, a nivel nacional para proporcionar a los radioescuchas una amplia y profunda educación y consejería acerca del sistema fiscal de los Estados Unidos, incluyendo la importancia de pagar impuestos, así como los beneficios y procesos de aplicación para obtener un ITIN (Número de identificación fiscal) para individuos no residentes y miembros de sus familias. El programa de radio es interactivo y les ofrece una forma sencilla a los radioescuchas de habla hispana para que llamen, hagan preguntas al aire y obtengan respuestas confiables acerca del proceso fiscal y sus obligaciones, en su propio idioma. Las diversas comunidades alrededor de la nación han demostrado su interés en la materia impositiva. En tan solo tres semanas de programación en las ciudades participantes más de 950 llamadas con inquietudes fueron recibidas y clarificadas beneficiando enormemente a los contribuyentes hispanos. Los anfitriones de los programas de radio son profesionales de impuestos bilingües de las oficinas locales de Liberty Tax Service, y están certificados con el Sello de Excelencia de Servicios Hispanos (Hispanic Services Seal of Excellence) de Liberty, lo cual indica que ellos han adquirido el entrenamiento sobre impuestos para Hispanos adecuado para efectos de comunicación y desarrollo con las Comunidades Hispanas. Sólo se les permite participar a las oficinas certificadas en la iniciativa corporativa “Una Familia Sin Fronteras“.

Adicionalmente, a través de una serie de anuncios del servicio público (PSAs) y apariciones como invitados en estos programas de radio, Liberty Tax Service está proporcionando a organizaciones sin fines de lucro locales y nacionales, tiempo al aire de forma gratuita para dar información valiosa acerca la salud y otros servicios a la Comunidad Hispana. Las asociaciones con las diferentes organizaciones comunitarias buscan mejorar la vida de los miembros de la Comunidad Hispana por medio de educación GRATUITA sobre los problemas clave, temas sobre la familia, programas de apoyo individual y programas que ayudan a fortalecer a la comunidad.

Doña Libertad es un ícono corporativo que fue creado para ayudar a los clientes que hablan español preferentemente a sentirse más cómodos con una consejera que representa su cultura. La meta de Doña Libertad es aumentar y mejorar el conocimiento financiero y de responsabilidad fiscal, proporcionar educación a las personas que compran casa por primera vez, así como enseñar administración fiscal a los Hispanos a través de los Estados Unidos, por medio de programas educativos GRATUITOS. Doña Libertad es una persona amigable, representada en forma de caricatura que brinda esta importante información a los clientes Hispanos por medio de un personaje muy sano.“ A través de Doña Libertad y de nuestros otros formatos interactivos en radio en español, estamos actuando como educadores y defensores para darles el poder necesario a nuestras Comunidades Hispanas por todo el país que sólo la educación les puede dar,” explica Martee Pierson, Directora de Programas de Diversidad para Liberty Tax Service. “Nuestro trabajo con los programas de alcance de adultos Hispanos a través de 21 distritos escolares (número que continúa en ascenso), organizaciones sin fines de lucro y Consulados mexicanos en los Estados Unidos permiten a Doña Libertad alcanzar a miles de nuevos inmigrantes con información gratuita que les ayudará a cumplir sus obligaciones fiscales, así como beneficiarlos con los muchos servicios gratuitos que nuestras organizaciones asociadas proporcionan.”

Doña Libertad ayuda a la comunidad Hispana a través de programas de radio patrocinados por Liberty Tax y también a través de su página de Internet donde cualquier persona puede enviar por correo electrónico sus preguntas para obtener una respuesta personal por parte de esta “CONFIABLE CONSEJERA DE LA COMUNIDAD”.

La Iniciativa Hispana de Liberty Tax “Una Familia Sin Fronteras” es un programa de alcance educacional que brinda seminarios y cursos de educación financiera y fiscal a las Comunidades Hispanas por todo el país, sin ningún costo. Los cursos y seminarios son impartidos en español y muchos de ellos califican como créditos universitarios en la Universidad de Phoenix. “Liberty Tax Service ha estado envuelto por mucho tiempo en proyectos educacionales y servicios comunitarios a nivel nacional. Para servir mejor a la Comunidad Hispana, creamos la iniciativa “Una Familia Sin Fronteras” para brindar valores, educación y finalmente, éxito financiero y fiscal a los Hispanos en todo el país”, comentó John Hewitt, Fundador y CEO de Liberty Tax Service.

On Monday, IRS systems began to accept and process both e-file and paper tax returns claiming itemized deductions on Form 1040, Schedule A, as well as deductions for state and local sales tax, higher education tuition and fees and educator expenses.

“The IRS is now accepting all the 1040 forms,” IRS Commissioner Doug Shulman said. “We worked hard to update our systems and get the changes in place as quickly as possible. We appreciate the patience of those impacted by the delay. We urge taxpayers to use e-file with direct deposit, and they can get their refunds within days.”

In late December 2010, the IRS announced it would delay processing of some tax returns in order to update processing systems to accommodate the late tax law changes. These tax law provisions were extended by the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010, which became law on Dec. 17.

For the vast majority of taxpayers, the filing season this year began on time in January. Most taxpayers claiming itemized deductions and the other delayed forms file later in the year.

The IRS urged taxpayers who haven’t filed yet to use e-file instead of paper tax forms to ensure accuracy and to get refunds fast. Taxpayers can do their taxes for free through Free File, which is brand-name software or online fillable forms. Free File is available exclusively at www.irs.gov/freefile. Anyone who makes $58,000 or less can use Free File software. There are no income limits to online fillable forms. Both Free File software and Free File Fillable Forms allow taxpayers to prepare and e-file their federal returns for free.

The IRS worked closely with the tax software industry and the tax professional community during the reprogramming process to minimize disruptions for taxpayers and ensure a smooth tax season.

As a result of these efforts, many major software providers and paid tax preparers started accepting impacted returns before the Feb. 14 start date, which they held and started submitting after the IRS systems opened.

Due to the expected increase in tax return volumes being transmitted this week, the IRS cautioned a small number of taxpayers may experience a brief delay in receiving their e-file acknowledgement, which is normally provided within 24-48 hours. The IRS continues working with the software industry to minimize any impact to taxpayers.

Business taxpayers who use the 1040 series can file now as well. However, the Feb. 14 start date does not apply to non-1040 business tax forms (add link) affected by the recent tax law changes. The IRS will announce a specific date in the near future when it can begin processing those impacted business tax forms.

Updated information has been posted on IRS.gov, including Schedule A and updated state and local sales tax tables. For a complete list of affected individual tax forms and business tax forms visit www.IRS.gov.

Source: irs.gov, IR-2011-16

(Virginia Beach, VA) Tax time is getting sweeter for tax payers who itemize. Starting on Monday, Valentines Day, the IRS can process returns for taxpayers who faced filing delays due to the round of tax extenders and Tax Relief Act of 2010. The delays affected those who filed Schedule A, Form 8917 Tuition and Fees Deduction and Form 4684 Casualties and Thefts.

“Liberty Tax has been preparing returns for our customers with these forms all tax season, and making every effect to streamline filing for our customers facing delays,” noted (Name) of Liberty Tax Service. “We are ready to file these returns with the IRS ready date of Monday.”

Schedule A itemizers who love the ways they can write off deductions such as home mortgage interest, charitable contributions, and medical expenses may find more to love. Liberty Tax examines a few changes that may apply for Schedule A filers on a 2010 return:

• No Adjusted Gross Income limit for itemized deductions.

• An extension of the provision that includes up to $100,000 of qualified charitable distributions from income. Taxpayers who made a charitable distribution in January 2011 may elect to claim it on their 2010 return.

• Tax relief for homeowners who have suffered from corrosive drywall installed from 2001 until 2008. Damage expenses and repair costs for appliances can be claimed on Line 20 of the Schedule A.

• Taxpayers may be able to deduct taxes paid in 2010 for new motor vehicles purchased in 2009.

Many Liberty Tax offices are observing the Valentine’s Day fun with special treats and festivities for all filers.

Taxpayers will have the luxury of time, with a few extra days to file this year. The filing deadline will be Monday, April 18, 2011 because the holiday, Emancipation Day is Friday, April 15. This holiday is observed in the District of Columbia, so federal workers will be off that day.

Here are several important changes that the IRS wants you to keep in mind when you file your 2010 federal income tax return in 2011.

Health Insurance Deduction Reduces Self Employment Tax In 2010, eligible self-employed individuals can use the self-employed health insurance deduction to reduce their social security self-employment tax liability in addition to their income tax liability. As in the past, eligible taxpayers claim this deduction on Form 1040 Line 29. But in 2010, eligible taxpayers can also enter this amount on Schedule SE Line 3, thus reducing net earnings from self-employment subject to the 15.3 percent social security self-employment tax.

Premiums paid for health insurance covering the taxpayer, spouse and dependents generally qualify for this deduction. Premiums paid for coverage of an adult child under age 27 at the end of the year, for the time period beginning on or after March 30, 2010, also qualify for this deduction, even if the child is not the taxpayer’s dependent.

As before, the insurance plan must be set up under the taxpayer’s business, and the taxpayer cannot be eligible to participate in an employer-sponsored health plan. Details, including a worksheet, are in the instructions to Form 1040.

First-time Homebuyer Credit You must meet the required deadlines to be eligible to claim the credit. You must have bought — or entered into a binding contract to buy — a principal residence on or before April 30, 2010. If you entered into a binding contract by April 30, 2010, you must have closed or gone to settlement on the home on or before Sept. 30, 2010. Because of the documentation requirements for claiming the credit, taxpayers who claim the credit on their 2010 tax return must file a paper — not electronic — return and attach Form 5405, First-Time Homebuyer Credit and Repayment of the Credit, and a properly executed copy of a settlement statement used to complete the purchase.

Taxpayers who claimed the first-time homebuyer credit for a home bought in 2008 must generally begin repaying it on the 2010 return. In most cases, the credit must be repaid over a 15-year period. Many of those affected by this requirement received reminder letters from the IRS.

A repayment requirement also applies to a taxpayer who claimed the credit on either their 2008 or 2009 return and then sold it or stopped using the home as their main home in 2010. Use Form 5405 to report the repayment.

In addition, certain members of the armed forces and some other taxpayers still have time to buy a home and take the credit. See Form 5405 and its instructions for details.

Standard Mileage Rates for 2010 The standard mileage rate for business use of a car, van, pick-up or panel truck is 50 cents for each mile driven. The rate for the cost of operating a vehicle for medical reasons or as part of a deductible move is 16.5 cents per mile. The rate for using a car to provide services to charitable organizations is set by law and remains at 14 cents a mile.

Tax Breaks Extended Several tax breaks that expired at the end of 2009 were renewed and can be claimed on 2010 returns. They include:

+ State and local general sales tax deduction, primarily benefiting people living in areas without state and local income taxes. Claim on Schedule A, Line 5.
+ Higher education tuition and fees deduction benefiting parents and students. Claim on Form 8917.
+ Educator expense deduction for kindergarten through grade 12 educators with out-of-pocket classroom expenses of up to $250, Claim on Form 1040, Line 23 or Form 1040A Line 16.
+ District of Columbia first-time homebuyer credit. Claim on Form 8859

Source: irs.gov, Tax Tip 2011-31

However, the new law did not extend the Making Work Pay (MWP) credit that had been available for tax years 2009 and 2010. While most workers qualified for the maximum MWP credit, pension recipients did not qualify for any MWP credit unless they also had wages or other earned income.

In December 2010, the IRS published new federal income tax withholding information to reflect the impact of the Tax Relief Act. The fact that that the MWP credit expired, by itself, would have resulted in increased withholding for most taxpayers. However, under the Tax Relief Act, withholding for social security tax for all wage earners was reduced from 6.2% to 4.2% (withholding for Medicare, at 1.45%, did not change). For most employees, the net effect of these two changes will result in less total tax being withheld from their checks. The social security tax reduction does not affect pension payments.

Due to the late enactment of these tax law changes, the IRS asked employers and plan administrators to adjust their systems as soon as possible but not later than January 31, 2011. This means employees and pension recipients may not have seen the full impact of these changes until their first paycheck in February, 2011.

Once employers implement the changes, there will be a net increase in take-home pay for most employees (excluding the impact of any other withholding amounts, such as withholding for health insurance, state income taxes, etc.).

Once pension plan administrators implement the 2011 changes, the retirement check payments for some pensioners may be lower depending upon the method that their plan administrators used to calculate withholding in 2010. Because the MWP credit did not apply to pensioners, the IRS published a table for 2009 and 2010 giving plan administrators the option of increasing withholding for their pension recipients. Not all plan administrators made the optional adjustment and instead allowed pensioners to make the adjustment when they filed their tax returns. Since the 2011 withholding tables do not reflect the expired credit, pension recipients in this situation are likely to see the withholding for their 2011 pension payments increase by approximately $7 to $50 per payment, depending on filing status, the amount of the payment, and how often the payment is made.

IRS encourages both employees and pensioners to review their withholding every year using the withholding calculator on IRS.gov and, if necessary, fill out a new W-4 or W-4P form and give it to their employer or pension plan administrator.

Source: Irs.gov, Special Edition Tax Tip 2011-01

1. Amount – With the Child Tax Credit, you may be able to reduce your federal income tax by up to $1,000 for each qualifying child under the age of 17.

2. Qualification – A qualifying child for this credit is someone who meets the qualifying criteria of six tests: age, relationship, support, dependent, citizenship, and residence.

3. Age Test - To qualify, a child must have been under age 17 – age 16 or younger – at the end of 2010.

4. Relationship Test – To claim a child for purposes of the Child Tax Credit, they must either be your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister or a descendant of any of these individuals, which includes your grandchild, niece or nephew. An adopted child is always treated as your own child. An adopted child includes a child lawfully placed with you for legal adoption.

5. Support Test – In order to claim a child for this credit, the child must not have provided more than half of their own support.

6. Dependent Test – You must claim the child as a dependent on your federal tax return.

7. Citizenship Test – To meet the citizenship test, the child must be a U.S. citizen, U.S. national, or U.S. resident alien.

8. Residence Test – The child must have lived with you for more than half of 2010. There are some exceptions to the residence test, which can be found in IRS Publication 972, Child Tax Credit.

9. Limitations – The credit is limited if your modified adjusted gross income is above a certain amount. The amount at which this phase-out begins varies depending on your filing status. For married taxpayers filing a joint return, the phase-out begins at $110,000. For married taxpayers filing a separate return, it begins at $55,000. For all other taxpayers, the phase-out begins at $75,000. In addition, the Child Tax Credit is generally limited by the amount of the income tax you owe as well as any alternative minimum tax you owe.

10. Additional Child Tax Credit – If the amount of your Child Tax Credit is greater than the amount of income tax you owe, you may be able to claim the Additional Child Tax Credit.

Source: irs.gov, Tax Tip 2011-29

On a national basis, the average Mexican consumer belongs to a medium sized family (between 4-5 members) with low to modest purchasing power largely wielded by a head of household who has no formal job outside of the home. However, there are stark and important regional differences in both household composition and consumption behavior throughout the country.

When it comes to income, there seems to be a great divide: The northern half of the country has higher income and in turn, purchasing power, since women tend to work outside of the home in addition to raising families; in the southern half, income levels are generally lower. Consumers in the North, Pacific, and Lowlands regions of Mexico tend to have above-average purchasing power and live in households where the homemaker generally has a formal job. In the Valley of Mexico and in the Central and Southeast regions, consumers have much lower levels of income and purchasing power.

Nielsen research and analysis identified certain similarities in consumption behaviors between certain regions with geographical proximity to one another: between the Pacific and North regions, which border the United States, and the Lowlands and Central Mexico. Consumption patterns in both the Valley of Mexico and the Southeast, meanwhile, tend to show significant differences compared to the rest of the country.

While the majority of the country’s population is concentrated in the Valley of Mexico region – which is dominated by Mexico City – consumers in the Pacific, North and Southeast regions tend to spend more money per household than the average consumer in the Valley.

Retail Channels and Shopping Frequency

With respect to retail channels, traditional stores remain resoundingly prominent throughout the country. This is especially true in the Lowlands and Central Mexico, where alternative channels have not yet grown as much as in other regions. Convenience stores and small-format supermarkets are most popular in the Pacific-North areas. Large-format supermarkets, on the other hand, play a bigger role in the Valley of Mexico and in the Southeast than in the rest of the country, although the other regions are catching up.

In all regions, traditional stores are visited on a daily basis—and sometimes twice a day. The typical consumer visits the supermarket twice weekly, with Sunday the most popular shopping day. Shopping during the week is most prevalent in the Pacific-North and Southeast areas.

For more information at

Source: hispanicad.com, 2/9/2011

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 to issue the W-2.

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

+ Employer’s name, address, city and state, including zip code 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 2010. 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 April 18, 2011, even if you do not receive your Form W-2. If you have not received your Form W-2 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 filed 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 at http://www.irs.gov or by calling 800-TAX-FORM (800-829-3676).

Source: irs.gov, Tax Tip 2011-28, 2/9/2011

While about two-thirds of Latino (65%) and black (66%) adults went online in 2010, more than three-fourths (77%) of white adults did so. In terms of broadband use at home, there is a large gap between Latinos (45%) and whites (65%), and the rate among blacks (52%) is somewhat higher than that of Latinos. Fully 85% of whites owned a cell phone in 2010, compared with 76% of Latinos and 79% of blacks.

Hispanics, on average, have lower levels of education and earn less than whites. Controlling for these factors, the differences in internet use, home broadband access and cell phone use between Hispanics and whites disappear. In other words, Hispanics and whites who have similar socioeconomic characteristics have similar usage patterns for these technologies.

Survey questions also probed for the use of non-voice applications on cell phones. Respondents were asked specifically about whether they access the internet and whether they use email, texting or instant messaging from a cell phone. The findings reveal a mixed pattern of non-voice cell phone application use across ethnic and racial groups. Hispanics are less likely than whites to use any non-voice applications on a cell phone (58% vs. 64%), and they are also less likely than whites to send or receive text messages (55% vs. 61%). However, Hispanics and whites are equally likely to access the internet and send or receive email from a cell phone. And Hispanics are more likely than whites to engage in instant messaging (34% vs. 20%). Compared with blacks, Hispanics are less likely to access the internet (31% vs. 41%) or send or receive email (27% vs. 33%) from a cell phone, but rates of texting and instant messaging are similar for the two groups.

Though they are no more likely than whites to access the internet from a cell phone, Hispanics are more likely to do so in lieu of a home internet connection. Some 6% of Latinos report that they access the internet from a cell phone but have no internet access at home. This rate is the same for blacks, but notably higher than the rate for whites (1%). This ethnic difference in dependency upon a cell phone for internet use is partially, but not entirely, related to ethnic differences in educational attainment and income.

These results are based on two national surveys. The first, the Pew Hispanic Center’s 2010 National Survey of Latinos is a nationally representative bilingual telephone survey of 1,375 adults ages 18 and older. Interviews were conducted from August 17 through September 19, 2010. The margin of error for the full sample is plus or minus 3.3 percentage points at the 95% confidence level. The second, Pew Internet and American Life Project’s August 2010 Health Tracking Survey is a national representative telephone survey of 3,001 adults, conducted from August 9 through September 13, 2010. The margin of error for the full sample is plus or minus 2.5 percentage points at the 95% confidence level.

To download report CLICK on link below;

Source: Hispanicad.com, 2/9/11

Sixty-four percent of Hispanics surveyed who have an income of $25,000-$49,999 say they still buy name brand body soaps or shower gels. Meanwhile, 64% of Spanish-dominant Hispanics, compared to 58% of English-dominant Hispanics say they continue to buy name brand body soaps or shower gels despite the economic downturn.

“Spanish-dominant Hispanics are most likely to stick to their favorite brand of hand soap, body soap and shower gel, signifying that less acculturated Hispanics remain loyal to the same brand despite the economy,” says Leylha Ahuile, senior multicultural analyst at Mintel. “English-dominant Hispanics tend to have higher household incomes and apparently are less concerned with brand name soaps and more focused on saving money.”

Spanish-dominant consumers are also more likely to stick to their favorite name brand lotions (51% vs. 35% of English-dominant consumers), facial cleansers (27% vs. 20% of English-dominant consumers) and toothpaste or mouthwash (69% vs. 65% of English-dominant consumers), refusing to trade down to more affordable private label personal care products.

“In spite of Hispanics’ lower-than-average household income level, they indexed higher than non-Hispanics in the consumption of personal care products in 2009,” notes Leylha Ahuile. “Over the last six years, Hispanics have consistently increased their spending on personal care products. And within personal care, Hispanics index higher than non-Hispanics in the subcategories of haircare products and bath products.”

However, lower-income Hispanics are still interested in saving a few dollars with multifunctional products—65% of those who earn $25,000-$49,999 are interested in two-in-one shampoo/conditioner and 83% would be more inclined to purchase toothpaste that can also serve as a mouthwash and whitener.

For more information at

Source: hispanicad.com, 2/8/2011

Here are eight things the IRS wants you to know about claiming the credit:

1. You must have bought – or entered into a binding contract to buy – a principal residence located in the United States on or before April 30, 2010. If you entered into a binding contract by April 30, 2010, you must have closed on the home on or before September 30, 2010.

2. To be considered a first-time homebuyer, you and your spouse – if you are married – must not have jointly or separately owned another principal residence during the three years prior to the date of purchase.

3. To be considered a long-time resident homebuyer you and your spouse – if you are married – must have lived in the same principal residence for any consecutive five-year period during the eight-year period that ended on the date the new home is purchased.

4. The maximum credit for a first-time homebuyer is $8,000, half that amount for married individuals filing separately. The maximum credit for a long-time resident homebuyer is $6,500. Married individuals filing separately are limited to $3,250.

5. You must file a paper return and attach Form 5405, First-Time Homebuyer Credit and Repayment of the Credit with additional documents to verify the purchase. Therefore, if you claim the credit you will not be able to file electronically.

6. New homebuyers must attach a copy of a properly executed settlement statement used to complete such purchase. Buyers of a newly constructed home, where a settlement statement is not available, must attach a copy of the dated certificate of occupancy. Mobile home purchasers who are unable to get a settlement statement must attach a copy of the retail sales contract.

7. If you are a long-time resident claiming the credit, the IRS recommends that you also attach any documentation covering the five-consecutive-year period, including Form 1098, Mortgage Interest Statement or substitute mortgage interest statements, property tax records or homeowner’s insurance records.

8. Members of the military and certain other federal employees serving outside the U.S. have an extra year to buy a principal residence in the U.S. and qualify for the credit.

For more information about these rules including details about documentation and other eligibility requirements for the First-Time Homebuyer Tax Credit, visit http://www.irs.gov/recovery.

Source: irs.gov, Tax Tip 2011-27, 2/8/2011

That’s why Experian Simmons and the Association of Hispanic Advertising Agencies (AHAA), both recognized experts in measuring the Hispanic consumer marketplace, developed the Simmons Latino Cultural Identity Study, a powerful tool that delivers the mindset of the Hispanic consumer.

The 2010 Latino Cultural Identity Consumer Report leverages the latest Simmons Latino Cultural Identity Study to identify attitudes and beliefs that are commonly shared across the Hispanic population regardless of language preference, heritage or country of birth.

These widely shared beliefs provide marketers with vivid insights into the question: What makes a Latino Latino?

To download report, go to Hispanicad.com.

Source: hispanicad.com, 2/7/2011

1. How much – if any – of your Social Security benefits are taxable depends on your total income and marital status.

2. Generally, if Social Security benefits were your only income for 2010, your benefits are not taxable and you probably do not need to file a federal income tax return.

3. If you received income from other sources, your benefits will not be taxed unless your modified adjusted gross income is more than the base amount for your filing status.

4. Your taxable benefits and modified adjusted gross income are figured on a worksheet in the Form 1040A or Form 1040 Instruction booklet.

5. You can do the following quick computation to determine whether some of your benefits may be taxable:
• First, add one-half of the total Social Security benefits you received to all your other income, including any tax exempt interest and other exclusions from income.
• Then, compare this total to the base amount for your filing status. If the total is more than your base amount, some of your benefits may be taxable.

6. The 2010 base amounts are:
• $32,000 for married couples filing jointly.
• $25,000 for single, head of household, qualifying widow/widower with a dependent child, or married individuals filing separately who did not live with their spouses at any time during the year.
• $0 for married persons filing separately who lived together during the year.

7. For additional information on the taxability of Social Security benefits, see IRS Publication 915, Social Security and Equivalent Railroad Retirement Benefits. Publication 915 is available on this website or by calling 800-TAX-FORM (800-829-3676).

Source: irs.gov, Tax Tip 2011-26, 2/7/2011

The report, “Six Disruptive Demographic Trends: What Census 2010 Will Reveal,” identifies major shifts in U.S. demographics and their implications for business, consumer markets and the nation’s competitiveness in the global marketplace.

“The U.S. population is far different today in terms of geographical distribution, racial and ethnic composition, age mix, family types and economic circumstance from what it was a decade ago,” said James H. Johnson Jr., co-author of the report with John D. Kasarda. Johnson is director of the Urban Investment Strategies Center at the Frank Hawkins Kenan Institute of Private Enterprise, part of UNC’s Kenan-Flagler Business School. Kasarda is director of the Kenan Institute.

The six trends are:

* South-shifting population. More than half of the nation’s population growth during the past decade (51.4 percent) occurred in Southern states, driven in part by an in-migration of an estimated 2.3 million newcomers from nearly all demographic groups – blacks, Hispanics, the elderly and the foreign born – and high fertility rates among some, particularly Hispanics.

* “Browning” of America. Nonwhites accounted for an estimated 85 percent of U.S. net population growth during the past decade. Non-Hispanic whites represented 65 percent of the U.S. population in 2009 compared to 76 percent in 1995.

* Intermarriage increase. Marriage across racial and ethnic lines has doubled since 1980, further contributing to the browning trend, with 41 percent of all intermarriages in 2008 between Hispanics and whites; 15 percent between Asians and whites; 11 percent between blacks and white; and both parties nonwhite in 16 percent of intermarriages.

* “Graying” of America. The first baby boomer born in America turned 65 on Jan. 1, sparking a “silver tsunami” of 79 million baby boomers who will exit the U.S. workforce over the next 20 years. About 8,000 Americans will turn 65 every day over the next five years, and they will live longer than previous generations because of advances in health care and lifestyles that are more active.

* Gender shift. Women now hold nearly half of all paid U.S. jobs (49.8 percent), own 40 percent of all businesses and hold 43 percent of executive, administrative and managerial positions in the U.S. economy, narrowing the male-female wage gap to its lowest point in history.

* More grandparent-headed households. The number of children living in grandparent-headed households increased by 26.1 percent between 2001 and 2010, compared to 3.8 percent for all U.S. household types. One or both parents also live in about two-thirds of the grandparent-headed households.

Researchers identified these trends by analyzing demographic and economic statistics compiled by the U.S. Census Bureau, Bureau of Labor Statistics, Internal Revenue Service and other government agencies from the past decade as well as other demographic research. They expect the 2010 census data to confirm these trends and provide greater detail on them.

The trends bring both opportunities and challenges for businesses, the researchers said. For instance, the South now offers the largest and most diverse consumer markets for goods and services. Aging boomers, increasingly well-educated, youth-oriented, tech-savvy and possessing more discretionary income, will drive demand for new consumer electronics and other high-technology goods and services as well as a range of products and services related to “elder care.” Meanwhile, more diverse, multicultural consumers and workers will require companies to develop new strategies for attracting customers and managing their workforces.

For the nation, an increasingly diverse workforce can provide significant competitive advantage if lawmakers and policymakers respond effectively to the challenges these shifting demographics present, the researchers said. They advise the following actions:

* Approaching the process of redrawing lines for state legislatures and Congressional districts to promote economic competitiveness rather than political and electoral advantage;
* Countering the devastating impact of recent cyclical and structural changes in the U.S. economy on male employment; and
* Educating a diverse generation of primary- and secondary-age school children to build a competitive future workforce.

This last – education – presents the greatest challenge and opportunity, Johnson said. “The youth at risk of falling through the cracks of our public education system are predominantly nonwhite, mainly black and Hispanic, who attend severely under-resourced and the lowest-performing schools,” Johnson said.

“Allowing these students to languish in failure factories is not only an ethical and moral issue but a major factor in our future competitiveness,” he said. “Given the huge wave of baby boomers who are about to retire, we will need the skills and talents of these younger generations to prosper in the years ahead.”

The complete report is available at www.kenaninstitute.unc.edu/Census2010Trends.

Source: Carolina Women’s Leadership Council Newsletter, Winter 2011

1. How much – if any – of your Social Security benefits are taxable depends on your total income and marital status.

2. Generally, if Social Security benefits were your only income for 2010, your benefits are not taxable and you probably do not need to file a federal income tax return.

3. If you received income from other sources, your benefits will not be taxed unless your modified adjusted gross income is more than the base amount for your filing status.

4. Your taxable benefits and modified adjusted gross income are figured on a worksheet in the Form 1040A or Form 1040 Instruction booklet.

5. You can do the following quick computation to determine whether some of your benefits may be taxable:
• First, add one-half of the total Social Security benefits you received to all your other income, including any tax exempt interest and other exclusions from income.
• Then, compare this total to the base amount for your filing status. If the total is more than your base amount, some of your benefits may be taxable.

6. The 2010 base amounts are:
• $32,000 for married couples filing jointly.
• $25,000 for single, head of household, qualifying widow/widower with a dependent child, or married individuals filing separately who did not live with their spouses at any time during the year.
• $0 for married persons filing separately who lived together during the year.

For additional information on the taxability of Social Security benefits, see IRS Publication 915, Social Security and Equivalent Railroad Retirement Benefits. Publication 915 is available on this website or by calling 800-TAX-FORM (800-829-3676).

Source: irs.gov, Tax Tip 2011-26

o In Louisiana, Mississippi, New Jersey and Virginia, the increase in Hispanics was higher than the Census’ latest projections.

o Hispanics accounted for most of the growth in the states of Louisiana and New Jersey where the non-Hispanic white populations shrank, and about a third of all growth in Mississippi (34%) and Virginia (33%)

o The Hispanic share of the state populations has increased to 17.7% in New Jersey; 7.9% in Virginia; 4.2% in Louisiana, and 2.7% in Mississippi.

“The U.S. Census data released for Louisiana, Mississippi, New Jersey and Virginia speaks to the anticipated growth of Hispanics across the U.S.,” said Elizabeth Ellers, executive vice president, Corporate Research, Univision Communications Inc. “This data speaks to the changing face of America and to the opportunities for private and public entities to understand and connect with this booming segment of the U.S. population.”

The U.S. Census is expected to release state by state information through March 2011.

Source: HispanicAd.com, 2/4/2011

To help taxpayers understand the differences between taxable and non-taxable income, the Internal Revenue Service offers these common examples of items not included as taxable income:

+ Adoption Expense Reimbursements for qualifying expenses
+ Child support payments
+ Gifts, bequests and inheritances
+ Workers’ compensation benefits
+ Meals and Lodging for the convenience of your employer
+ Compensatory Damages awarded for physical injury or physical sickness
+ Welfare Benefits
+ Cash Rebates from a dealer or manufacturer

Some income may be taxable under certain circumstances, but not taxable in other situations. Examples of items that may or may not be included in your taxable income are:

Life Insurance If you surrender a life insurance policy for cash, you must include in income any proceeds that are more than the cost of the life insurance policy. Life insurance proceeds, which were paid to you because of the insured person’s death, are not taxable unless the policy was turned over to you for a price.

Scholarship or Fellowship Grant If you are a candidate for a degree, you can exclude amounts you receive as a qualified scholarship or fellowship. Amounts used for room and board do not qualify.

Non-cash Income Taxable income may be in a form other than cash. One example of this is bartering, which is an exchange of property or services. The fair market value of goods and services exchanged is fully taxable and must be included as income on Form 1040 of both parties.
All other items—including income such as wages, salaries, tips and unemployment compensation — are fully taxable and must be included in your income unless it is specifically excluded by law.

These examples are not all-inclusive. For more information, see Publication 525, Taxable and Nontaxable Income, which can be obtained at http://www.irs.gov or by calling the IRS at 800-TAX-FORM (800-829-3676).

Source: irs.gov, Tax Tip 2011-25

1. Standard Deduction Taxpayers who are legally blind may be entitled to a higher standard deduction on their tax return.

2. Gross Income Certain disability-related payments, Veterans Administration disability benefits, and Supplemental Security Income are excluded from gross income.

3. Impairment-Related Work Expenses Employees who have a physical or mental disability limiting their employment may be able to claim business expenses in connection with their workplace. The expenses must be necessary for the taxpayer to work.

4. Credit for the Elderly or Disabled This credit is generally available to certain taxpayers who are 65 and older as well as to certain disabled taxpayers who are younger than 65 and are retired on permanent and total disability.

5. Medical Expenses If you itemize your deductions using Form 1040, Schedule A, you may be able to deduct medical expenses.See IRS Publication 502, Medical and Dental Expenses.

6. Earned Income Tax Credit EITC is available to disabled taxpayers as well as to the parents of a child with a disability.If you retired on disability, taxable benefits you receive under your employer’s disability retirement plan are considered earned income until you reach minimum retirement age. The EITC is a tax credit that not only reduces a taxpayer’s tax liability but may also result in a refund. Many working individuals with a disability who have no qualifying children, but are older than 25 and younger than 65 do — in fact — qualify for EITC. Additionally, if the taxpayer’s child is disabled, the age limitation for the EITC is waived. The EITC has no effect on certain public benefits. Any refund you receive because of the EITC will not be considered income when determining whether you are eligible for benefit programs such as Supplemental Security Income and Medicaid.

7. Child or Dependent Care Credit Taxpayers who pay someone to care for their dependent or spouse so they can work or look for work may be entitled to claim this credit.There is no age limit if the taxpayer’s spouse or dependent is unable to care for themselves.

For more information on tax credits and benefits available to disabled taxpayers, see Publication 3966, Living and Working with Disabilities or Publication 907, Tax Highlights for Persons with Disabilities, available on the IRS website at http://www.irs.gov or by calling 800-TAX-FORM (800-829-3676).

Source: irs.gov, Tax Tip 2011-24

Here are five tips from the IRS for recently married or divorced taxpayers who have a name change.

1. If you took your spouse’s last name or if both spouses hyphenate their last names, you may run into complications if you don’t notify the SSA. When newlyweds file a tax return using their new last names, IRS computers can’t match the new name with their Social Security Number.

2. If you were recently divorced and changed back to your previous last name, you’ll also need to notify the SSA of this name change.

3. Informing the SSA of a name change is easy; you’ll just need to file a Form SS-5, Application for a Social Security Card at your local SSA office and provide a recently issued document as proof of your legal name change.

4. Form SS-5 is available on SSA’s website at http://www.socialsecurity.gov, by calling 800-772-1213 or at local offices. Your new card will have the same number as your previous card, but will show your new name.

5. If you adopted your spouse’s children after getting married, you’ll want to make sure the children have an SSN. Taxpayers must provide an SSN for each dependent claimed on a tax return. For adopted children without SSNs, the parents can apply for an Adoption Taxpayer Identification Number – or ATIN – by filing Form W-7A, Application for Taxpayer Identification Number for Pending U.S. Adoptions with the IRS. The ATIN is a temporary number used in place of an SSN on the tax return. Form W-7A is available on the IRS website at http://www.irs.gov, or by calling 800-TAX-FORM (800-829-3676).

Source: IRS.gov, IRS Tax Tip 2011-23

Here are six things the IRS wants you to know about using your federal refund to purchase savings bonds.

1. You may use a portion of your refund to purchase up to $5,000 in U.S. Series I Savings Bonds for yourself or anyone.

2. The total amount of saving bonds purchased must be in multiples of $50. Any portion of your refund not used to buy savings bonds will be deposited into another financial account – such as a checking or savings account or can be mailed to you as a paper check.

3. Paper bonds will be issued in your name or the name you designate as primary owner, co-owner or beneficiary. If you are married and filed a joint return, the bonds will be issued in yours and your spouse’s name. You can also designate a beneficiary or co-owner under this name registration option.

4. You will receive the U.S. savings bonds in the mail.

5. Buying bonds with your refund is easy. Just select this option by filing Form 8888, Allocation of Refund (Including Savings Bond Purchases).

6. Form 8888 has step-by-step instructions on how to select this option and how to specify the amount of your refund you want to use to purchase savings bonds.

For more information about the U.S. Savings Bonds refund option visit the IRS website at http://www.irs.gov.

Source: irs.gov, Tax Tip 2011-22, 2/1/11

1. You may deduct only the amount by which your total medical care expenses for the year exceed 7.5 percent of your adjusted gross income. You do this calculation on Form 1040, Schedule A in computing the amount deductible.

2. You can only include the medical expenses you paid during the year. Your total medical expenses for the year must be reduced by any reimbursement. It makes no difference if you receive the reimbursement or if it is paid directly to the doctor or hospital.

3. You may include qualified medical expenses you pay for yourself, your spouse, and your dependents, including a person you claim as a dependent under a multiple support agreement. If either parent claims a child as a dependent under the rules for divorced or separated parents, each parent may deduct the medical expenses he or she actually pays for the child. You can also deduct medical expenses you paid for someone who would have qualified as your dependent except that the person didn’t meet the gross income or joint return test.

4. A deduction is allowed only for expenses primarily paid for the prevention or alleviation of a physical or mental defect or illness. Medical care expenses include payments for the diagnosis, cure, mitigation, treatment, or prevention of disease, or treatment affecting any structure or function of the body. The cost of drugs is deductible only for drugs that require a prescription except for insulin.

5. You may deduct transportation costs primarily for and essential to medical care that qualify as medical expenses. The actual fare for a taxi, bus, train, or ambulance may be deducted. If you use your car for medical transportation, you can deduct actual out-of-pocket expenses such as gas and oil, or you can deduct the standard mileage rate for medical expenses. With either method you may include tolls and parking fees.

6. Distributions from Health Savings Accounts and withdrawals from Flexible Spending Arrangements may be tax free if you pay qualified medical expenses.

For additional information on medical deductions and benefits, see Publication 502, Medical and Dental Expenses or Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans, available at http://www.irs.gov or by calling 800-TAX-FORM (800-829-3676).

Source: irs.gov, Tax Tip 2011-21, 1/31/2011

The American Recovery and Reinvestment Act of 2009 created a new category of families with three or more children and increased the maximum benefit of EITC for tax years 2009 and 2010. The Tax Relief and Job Creation Act of 2010 extended these changes through 2012.

The maximum credit for 2010 tax returns is $5,666 for workers with three or more qualifying children. However, workers without qualifying children may also be eligible for a smaller credit amount.

“Millions of workers who did not earn high incomes claimed the EITC last year,” said Doug Shulman, IRS commissioner. “The IRS encourages all eligible taxpayers to claim this valuable credit. Together with our partners, we can help taxpayers file their returns and get the EITC.”

Workers who earned $48,362 or less from wages, self-employment or farm income last year could receive larger refunds if they qualify for the EITC. Four out of five eligible taxpayers claimed the EITC last year obtaining an extra $2,200 from the credit on average. This represents a critical financial boost to over 26 million workers who earn low to moderate incomes.

Eligibility for the EITC is determined based on a number of factors including earnings, filing status and eligible children. Many people who experienced a change in these factors will qualify for the first time this year and may not be aware of the credit.

Taxpayers must file a tax return, even if they do not have a filing requirement, and specifically claim the credit. Those who typically fail to claim the EITC include rural workers and their families; non-traditional families, such as grandparents or foster parents raising children; taxpayers without qualifying children; individuals with limited English proficiency; Native Americans; and taxpayers with disabilities.

Source: irs.gov, IR-2011-12, 1/28/2011

Here are the top 10 things the IRS wants you to know about this valuable credit, which has been making the lives of working people a little easier for 36 years.

1. As your financial, marital or parental situations change from year to year, you should review the EITC eligibility rules to determine whether you qualify. Just because you didn’t qualify last year, doesn’t mean you won’t this year.

2. If you qualify, the credit could be worth up to $5,666. EITC not only reduces the federal tax you owe, but could result in a refund. The amount of your EITC is based on your earned income and whether or not there are qualifying children in your household. The average credit was around $2,100 last year.

3. If you are eligible for EITC, you must file a federal income tax return and specifically claim the credit – even if you are not otherwise required to file.Remember to include Schedule EIC, Earned Income Credit when you file your Form 1040 or, if you file Form 1040A, use and retain the EIC worksheet.

4. You do not qualify for EITC if your filing status is Married Filing Separately.

5. You must have a valid Social Security Number. You, your spouse – if filing a joint return – and any qualifying child listed on Schedule EIC must have a valid SSN issued by the Social Security Administration.

6. You must have earned income. You have earned income if you work for someone who pays you wages, you are self-employed, you have income from farming, or – in some cases – you receive disability income.

7. Married couples and single people without children may qualify. If you do not have qualifying children, you must also meet the age and residency requirements as well as dependency rules.

8. Special rules apply to members of the U.S. Armed Forces in combat zones. Members of the military can elect to include their nontaxable combat pay in earned income for the EITC. If you make this election, the combat pay remains nontaxable.

9. It’s easy to determine whether you qualify. The EITC Assistant, an interactive tool available on the IRS website, removes the guesswork from eligibility rules. Just answer a few simple questions to find out if you qualify and estimate the amount of your EITC.

10. Free help is available at Volunteer Income Tax Assistance sites and IRS Taxpayer Assistance Centers to help you prepare and claim your EITC. If you are preparing your taxes electronically, the software program you use will figure the credit for you. To find a VITA site or TAC near you, visit http://www.irs.gov.

Source: irs.gov, IRS Tax Tip 2011-20, 1/28/2011

The program “Los Impuestos y Usted” (“Taxes and You”) will air at:

+ noon Eastern time
+ 1:00 p.m. Central time
+ 1:30 p.m. Mountain time
+ 1:00 p.m. Pacific time

Check your local listings for exact times.

“Los Impuestos y Usted” will help viewers determine whether they qualify for many tax benefits, including the Earned Income Tax Credit or EITC. Workers who earned $48,362 or less from wages, self-employment or farming last year could receive larger refunds if they qualify to receive EITC.

IRS estimates four of five eligible taxpayers claimed their EITC last year, obtaining an average $2,200 from the credit. To qualify, taxpayers must meet certain criteria and file a tax return, even if they do not have a filing requirement.

Among other topics, the program features Free File, a program that allows individuals to file their taxes online at no cost, how to get free tax help at local community centers and other services available at www.irs.gov/espanol.

Mónica Noguera, host for many of Telemundo’s specials, will present the IRS program, which features in-studio interviews with IRS tax experts. IRS tax experts will also be available during the airing of the program to answer questions submitted online via Telemundo’s website.

Information about the EITC, Free File and other IRS programs and services is available in Spanish at www.irs.gov/espanol or toll-free at 800-829-1040, extension 8.

Source: irs.gov, IR-2011-6, 1/14/2011

1. Dependents In most cases, a child can be claimed as a dependent in the year they were born. For more information see IRS Publication 501, Exemptions, Standard Deduction, and Filing Information.

2. Child Tax Credit You may be able to take this credit on your tax return for each of your children under age 17. If you do not benefit from the full amount of the Child Tax Credit, you may be eligible for the Additional Child Tax Credit. For more information see IRS Publication 972, Child Tax Credit.

3. Child and Dependent Care Credit You may be able to claim the credit if you pay someone to care for your child under age 13 so that you can work or look for work. For more information see IRS Publication 503, Child and Dependent Care Expenses.

4. Earned Income Tax Credit The EITC is a benefit for certain people who work and have earned income from wages, self-employment or farming. EITC reduces the amount of tax you owe and may also give you a refund. For more information see IRS Publication 596, Earned Income Credit.

5. Adoption Credit You may be able to take a tax credit for qualifying expenses paid to adopt an eligible child. Taxpayers claiming the adoption credit must file a paper tax return because adoption-related documentation must be included. For more information see the instructions for IRS Form 8839, Qualified Adoption Expenses.

6. Children with Earned Income If your child has income earned from working they may be required to file a tax return. For more information see IRS Publication 501.

7. Children with Investment Income Under certain circumstances a child’s investment income may be taxed at the parent’s tax rate. For more information see IRS Publication 929, Tax Rules for Children and Dependents.

8. Higher Education Credits Education tax credits can help offset the costs of education. The American Opportunity and the Lifetime Learning Credit are education credits that reduce your federal income tax dollar-for-dollar, unlike a deduction, which reduces your taxable income. For more information see IRS Publication 970, Tax Benefits for Education.

9. Student loan Interest You may be able to deduct interest you pay on a qualified student loan. The deduction is claimed as an adjustment to income so you do not need to itemize your deductions. For more information see IRS Publication 970.

10. Self-employed health insurance deduction If you were self-employed and paid for health insurance, you may be able to deduct any premiums you paid for coverage after March 29, 2010, for any child of yours who was under age 27 at the end of 2010, even if the child was not your dependent. For more information see the IRS website.

Source: irs.gov, IRS Tax Tip 2011-18, 1/26/2011

Here are six things the IRS wants you to know about self-employment:

1. Self-employment can include work in addition to your regular full-time business activities, such as part-time work you do at home or in addition to your regular job.

2. If you are self-employed you generally have to pay Self-employment Tax. Self-employment tax is a social security and Medicare tax primarily for individuals who work for themselves. It is similar to the social security and Medicare taxes withheld from the pay of most wage earners. You figure SE tax yourself using a Form 1040 Schedule SE. Also, you can deduct half of your self-employment tax in figuring your adjusted gross income.

3. If you are self-employed you generally have to make estimated tax payments. This applies even if you also have a full-time or part-time job and your employer withholds taxes from your wages. Estimated tax is the method used to pay tax on income that is not subject to withholding. If you don’t make quarterly payments you may be penalized for underpayment at the end of the tax year.

4. You can deduct the costs of running your business. These costs are known as business expenses. These are costs you do not have to capitalize or include in the cost of goods sold but can deduct in the current year.

5. To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your field of business. A necessary expense is one that is helpful and appropriate for your business. An expense does not have to be indispensable to be considered necessary.

6. For more information see IRS Publication 334, Tax Guide for Small Business, IRS Publication 535, Business Expenses and Publication 505, Tax Withholding and Estimated Tax, available at http://www.irs.gov or by calling the IRS forms and publications order line at 800-TAX-FORM (800-829-3676).

Source: IRS.gov, IRS Tax Tip 2011-16, 1/24/2011

Here are five things the IRS wants you to know about this tax credit to ensure you receive the entire amount for which you are eligible.

1. The Making Work Pay Credit provides a refundable tax credit of up to $400 for individuals and up to $800 for married taxpayers filing joint returns.
2. Most workers received the benefit of the Making Work Pay Credit through larger paychecks, reflecting reduced federal income tax withholding during 2010.
3. Taxpayers who file Form 1040 or 1040A will use Schedule M to figure the Making Work Pay Tax Credit. Completing Schedule M will help taxpayers determine whether they have already received the full credit in their paycheck or are due more money as a result of the credit.
4. Taxpayers who file Form 1040-EZ should use the worksheet for Line 8 on the back of the 1040-EZ to figure their Making Work Pay Credit.
5. You cannot take the credit if your modified adjusted gross income is $95,000 for individuals or $190,000 if married filing jointly or more, you can be claimed as a dependent on someone else return, you do not have a valid social security number or you are a nonresident alien.

Visit http://www.irs.gov/recovery for more information about the Making Work Pay Credit.

Source: irs.gov, Tax Tip 2011-15, 1/21/2011

Beginning Feb. 14, the IRS will start processing both paper and e-filed returns claiming itemized deductions on Schedule A, the higher education tuition and fees deduction on Form 8917 and the educator expenses deduction. Based on filings last year, about nine million tax returns claimed any of these deductions on returns received by the IRS before Feb. 14.

People using e-file for these delayed forms can get a head start because many major software providers have announced they will accept these impacted returns immediately. The software providers will hold onto the returns and then electronically submit them after the IRS systems open on Feb. 14 for the delayed forms.

Taxpayers using commercial software can check with their providers for specific instructions. Those who use a paid tax preparer should check with their preparer, who also may be holding returns until the updates are complete.

Most other returns, including those claiming the Earned Income Tax Credit (EITC), education tax credits, child tax credit and other popular tax breaks, can be filed as normal, immediately.

The IRS needed the extra time to update its systems to accommodate the tax law changes without disrupting other operations tied to the filing season. The delay followed the Dec. 17 enactment of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, which extended a number of expiring provisions including the state and local sales tax deduction, higher education tuition and fees deduction and educator expenses deduction.

Source: irs.gov, IR-2011-7, 1/20/2011

1. Tips are taxable. Tips are subject to federal income, Social Security and Medicare taxes. The value of non–cash tips, such as tickets, passes or other items of value, is also income and subject to tax.
2. Include tips on your tax return. You must include in gross income all cash tips you receive directly from customers, tips added to credit cards, and your share of any tips you receive under a tip–splitting arrangement with fellow employees.
3. Report tips to your employer. If you receive $20 or more in tips in any one month, you should report all of your tips to your employer. Your employer is required to withhold federal income, Social Security and Medicare taxes.
4. Keep a running daily log of your tip income. You can use IRS Publication 1244, Employee’s Daily Record of Tips and Report to Employer, to record your tip income.

For more information see IRS Publication 531, Reporting Tip Income and Publication 1244 which are available at http://www.irs.gov or can be ordered by calling 800-TAX-FORM (800-829-3676)

Source: irs.gov, Tax Tip 2011-14, 1/20/2011

1. There are three options for obtaining free copies of your federal tax return information – on the web, by phone or by mail.
2. The IRS does not charge a fee for transcripts, which are presently available for the current tax year as well as the past three tax years.
3. A tax return transcript shows most line items from your tax return as it was originally filed, including any accompanying forms and schedules. It does not reflect any changes made after the return was filed.
4. A tax account transcript shows any later adjustments either you or the IRS made after the tax return was filed. This transcript shows basic data – including marital status, type of return filed, adjusted gross income and taxable income.
5. To request either transcript online, go to http://www.irs.gov and look for our new online tool called Order A Transcript. To order by phone, call 800-908-9946 and follow the prompts in the recorded message.
6. To request a 1040, 1040A or 1040EZ tax return transcript through the mail, complete IRS Form 4506T-EZ, Short Form Request for Individual Tax Return Transcript. Businesses, partnerships and individuals who need transcript information from other forms or need a tax account transcript must use the Form 4506T, Request for Transcript of Tax Return.
7. If you order online or by phone, you should receive your tax return transcript within 5 to 10 days from the time the IRS receives your request. Allow 30 calendar days for delivery of a tax account transcript if you order by mail using Form 4506T or Form 4506T-EZ.
8. If you still need an actual copy of a previously processed tax return, it will cost $57 for each tax year that you order. Complete Form 4506, Request for Copy of Tax Return, and mail it to the IRS address listed on the form for your area. Copies are generally available for the current year as well as the past six years. Please allow 60 days for actual copies of your return.
9. Visit http://www.irs.gov to determine which form will meet your needs. Forms 4506, 4506T and 4506T-EZ can be found at http://www.irs.gov or by calling the IRS forms and publications order line at 800-TAX-FORM (800-829-3676).

Source: irs.gov, IRS Tax Tip 2011-13, 1/19/2011

To qualify for either credit, you must pay postsecondary tuition and fees for yourself, your spouse or your dependent. The credit may be claimed by the parent or the student, but not by both. If the student was claimed as a dependent, the student cannot file for the credit.

For each student, you can choose to claim only one of the credits in a single tax year. You cannot claim the American Opportunity Credit to pay for part of your daughter’s tuition charges and then claim the Lifetime Learning Credit for $2,000 more of her school costs.

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.

Here are some key facts the IRS wants you to know about these valuable education credits:

1. The American Opportunity Credit

+ The credit can be up to $2,500 per eligible student.
+ It is available for the first four years of post-secondary education.
+ Forty percent of the credit is refundable, which means that you may be able to receive up to $1,000, even if you owe no taxes.
+ The student must be pursuing an undergraduate degree or other recognized educational credential.
+ The student must be enrolled at least half time for at least one academic period.
+ Qualified expenses include tuition and fees, coursed related books supplies and equipment.
+ The full credit is generally available to eligible taxpayers who make less than $80,000 or $160,000 for married couples filing a joint return.

2. Lifetime Learning Credit

+ The credit can be up to $2,000 per eligible student.
+ It is available for all years of postsecondary education and for courses to acquire or improve job skills.
+ The maximum credited is limited to the amount of tax you must pay on your return.
+ The student does not need to be pursuing a degree or other recognized education credential.
+ Qualified expenses include tuition and fees, course related books, supplies and equipment.
+ The full credit is generally available to eligible taxpayers who make less than $60,000 or $120,000 for married couples filing a joint return.

You cannot claim the tuition and fees tax deduction in the same year that you claim the American Opportunity Tax 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.

For more information about these credits see IRS Publication 970, Tax Benefits for Education available at http://www.irs.gov or by calling the IRS forms and publications order line at 800-TAX-FORM (800-829-3676).

Source: irs.gov, Tax Tip 2010-12, 1/18/2011

IRS e-file is approaching the milestone of 1 billion returns processed. The electronic transmission system, which has revolutionized the way the IRS processes tax returns and made speedy refunds possible, has safely and securely processed 892 million tax returns since its national debut in 1990. In 2010, nearly 100 million people – 70 percent of the taxpayers – used IRS e-file.

“IRS e-file is the best option for everyone, especially for people impacted by recent tax law changes,” said Doug Shulman, IRS commissioner. “E-file ensures people can file accurately and get refunds quickly. With a new legislative e-file mandate for tax preparers, we anticipate that more tax return preparers will be using e-file this year, and we urge people who prepare their own taxes to give it a try. IRS e-file is now the norm, not the exception.”

The IRS also announced today it anticipates starting to process tax returns impacted by December’s tax law changes by mid-February. The IRS continues working to reprogram its computers to reflect new tax law changes enacted by Congress and signed by the President in December.

The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act extended a number of tax deductions and credits for 2011 and 2012 such as the American Opportunity Tax Credit and the modified Child Tax Credit, which help families pay for college and other child-related expenses. The Act also provides various job creation and investment incentives including 100 percent expensing and a two-percent payroll tax reduction for 2011. Those changes have no effect on the 2011 filing season.

Generally, taxpayers who itemize their deductions by using Schedule A, who claim the higher education tuition and fees deduction or who claim the educator expense deduction must wait a few more weeks to file their returns. Based on historical filing patterns, the IRS anticipates the delay impacts about 9 million taxpayers; in 2010, the IRS received more than 141 million tax returns. While the delay impacts both paper and electronic tax returns, most taxpayers can file immediately. More details are available on IRS.gov.

Although the IRS has not announced a specific mid-February start date for accepting the delayed tax returns, many people using e-file can get a head start. Many major software providers have announced they will accept these impacted returns immediately. The software providers will hold onto the returns and then electronically submit them after the IRS systems open in mid-February for the delayed forms.

Taxpayers using commercial software can check with their providers for specific instructions. Taxpayers should check with their tax return preparers, who also may be holding prepared returns until the updates are complete.

Even with the delay, IRS e-file remains the fastest option for taxpayers, and e-file returns will be processed and refunds issued much faster than paper returns. It will take less than two weeks to process an e-filed return, but as many as four to six weeks to process a paper return.

In general, for people concerned about security, e-file has proven itself year in and year out as a safe and secure method of filing a tax return. E-file has a proven track record. Software vendors and preparers use the latest encryption technology. Plus, within 48 hours, taxpayers receive an electronic acknowledgement that their return has been received by the IRS and either accepted or rejected.

With most people receiving a refund, the fastest way to get a refund is by e-filing and using direct deposit. Taxpayers can get their money automatically in as few as 10 days. For people who owe taxes, e-file offers payment alternatives such as filing now and paying prior to the April tax deadline. Taxpayers who still want to pay by check can do so by e-filing and then mailing a payment voucher.

Taxpayers can e-file their tax returns one of three ways: through a tax return preparer, through commercial software or through IRS Free File. The IRS does not charge for e-file. Many tax return preparers and software products also offer free e-filing with their services. Free File offers free tax preparation and free electronic filing.

As people become more comfortable using computers and the Internet for financial transactions, the IRS has seen a huge growth in the number of people who are preparing their own tax returns with the help of software.

Last year, more than one-third of all e-filed returns were done by people preparing and e-filing their own tax returns with software.

For people seeking free electronic options to do their own taxes, IRS Free File offers something for almost everyone through two formats: brand-name software or online fillable forms.

People must access Free File through the IRS Web site at www.IRS.gov and click on Free File or Free File Home – Your Link to Free Federal Online Filing. People can read more about Free File at www.freefile.irs.gov or IR-2011-5.

People looking for a tax return preparer who files electronically and for more information on e-file can review IRS e-file for Individuals. Taxpayers also can locate an e-file authorized tax professional nearest to them by doing a zip code search.

When using e-file, you also must use an e-signature. The IRS no longer accepts the paper signature document. If you prepare your own return using software you must use the self-select PIN method. If you have a third-party prepare your return, you can use either the self-select PIN method or the practitioner PIN method. See Fact Sheet 2011-07 for more details.

A recently passed law requires certain paid tax return preparers to electronically file federal income tax returns that they prepare and file for individuals, trusts and estates. Those are Forms 1040, 1040A, 1040EZ and 1041.

Source: irs.gov, IR-2011-4, 1/14/2011

The IRS today issued guidance (Revenue Procedure 2011-15) that will allow more tax-exempt organizations to file the e-Postcard rather than the Form 990-EZ or the standard Form 990.

For tax years beginning on or after Jan. 1, 2010, most tax-exempt organizations whose gross annual receipts are normally $50,000 or less can file the e-Postcard. The threshold was previously set at $25,000 or less. (However, supporting organizations of any size must file the standard Form 990 or, if eligible, Form 990-EZ).

A tax-exempt organization’s annual gross receipts or total assets are used to determine which of the three versions of Form 990 it is required to file. IRS.gov contains information about which form to file.

The Pension Protection Act of 2006 made important changes to rules regarding tax-exempt organizations’ annual filing requirements, which took effect as of the beginning of 2007.

First, it mandated that small tax-exempt organizations, other than churches and church-related organizations, file an annual notice with the IRS if they were too small to file Form 990 or Form 990-EZ. (The Form 990-N was created for small tax-exempt organizations that had not previously had a filing requirement.) Second, it required all supporting organizations, regardless of their size, to file the standard Form 990 or Form 990-EZ. Finally, the law specifies that any tax-exempt organization that fails to file for three consecutive years automatically loses its federal tax-exempt status.

Any tax-exempt organization that has not yet complied with these new requirements should do so immediately. If an organization loses its exemption, it will have to reapply with the IRS to regain its tax-exempt status. Any income received between the revocation date and renewed exemption may be taxable.

Source: irs.gov, IR-2011-3, 1/13/2011

Here are eight facts about the five filing status options the IRS wants you to know so that you can choose the best option for your situation.

1. Your marital status on the last day of the year determines your marital status for the entire year.
2. If more than one filing status applies to you, choose the one that gives you the lowest tax obligation.
3. Single filing status generally applies to anyone who is unmarried, divorced or legally separated according to state law.
4. A married couple may file a joint return together. The couple’s filing status would be Married Filing Jointly.
5. If your spouse died during the year and you did not remarry during 2010, usually you may still file a joint return with that spouse for the year of death.
6. A married couple may elect to file their returns separately. Each person’s filing status would generally be Married Filing Separately.
7. Head of Household generally applies to taxpayers who are unmarried. You must also have paid more than half the cost of maintaining a home for you and a qualifying person to qualify for this filing status.
8. You may be able to choose Qualifying Widow(er) with Dependent Child as your filing status if your spouse died during 2008 or 2009, you have a dependent child and you meet certain other conditions.

There’s much more information about determining your filing status in IRS Publication 501, Exemptions, Standard Deduction, and Filing Information. Publication 501 is available at http://www.irs.gov or by calling 800-TAX-FORM (800-829-3676). You can also use the Interactive Tax Assistant on the IRS website to determine your filing status. The ITA tool is a tax law resource on the IRS website that takes you through a series of questions and provides you with responses to tax law questions.

Source: irs.gov, Tax Tip 2011-09, 1/13/11

1. Exemptions reduce your taxable income. There are two types of exemptions: personal exemptions and exemptions for dependents. For each exemption you can deduct $3,650 on your 2010 tax return.

2. Your spouse is never considered your dependent. On a joint return, you may claim one exemption for yourself and one for your spouse. If you’re filing a separate return, you may claim the exemption for your spouse only if they had no gross income, are not filing a joint return, and were not the dependent of another taxpayer.

3. Exemptions for dependents. You generally can take an exemption for each of your dependents. A dependent is your qualifying child or qualifying relative. You must list the social security number of any dependent for whom you claim an exemption.

4. If someone else claims you as a dependent, you may still be required to file your own tax return. Whether you must file a return depends on several factors including the amount of your unearned, earned or gross income, your marital status, any special taxes you owe and any advance Earned Income Tax Credit payments you received.

5. If you are a dependent, you may not claim an exemption. If someone else – such as your parent – claims you as a dependent, you may not claim your personal exemption on your own tax return.

6. Some people cannot be claimed as your dependent. Generally, you may not claim a married person as a dependent if they file a joint return with their spouse. Also, to claim someone as a dependent, that person must be a U.S. citizen, U.S. resident alien, U.S. national or resident of Canada or Mexico for some part of the year. There is an exception to this rule for certain adopted children. See IRS Publication 501, Exemptions, Standard Deduction, and Filing Information for additional tests to determine who can be claimed as a dependent.

For more information on exemptions, dependents and whether you or your dependent needs to file a tax return, see IRS Publication 501. The publication is available at http://www.irs.gov or can be ordered by calling 800-TAX-FORM (800-829-3676). You can also use the Interactive Tax Assistant at http://www.irs.gov to determine who you can claim as a dependent and how much you can deduct for each exemption you claim. The ITA tool is a tax law resource on the IRS website that takes you through a series of questions and provides you with responses to tax law questions.

Source: irs.gov, Tax Tip 2011-07, 1/11/11

If you’re fluent in Spanish and English, Liberty Tax Service is ready to offer you a terrific opportunity. You simply need to be bilingual with the heart and sincere desire to help the Hispanic community. Liberty Tax Service is committed to assisting the Latino community and needs people like you, with bilingual skills, to achieve this. You don’t need previous tax preparation experience because they will provide you the training absolutely free of charge. Learn to prepare taxes in your native language, since Liberty offers books in Spanish and English. Also, once you join the Liberty Tax family, you’ll be able to take advantage of many more benefits, such as the Interpreter’s Couse, additional tax classes, and other competency trainings.

If you are ready for a new career in a professional environment with flexible schedules, pay with incentives, and the opportunity to obtain college credits, register for Liberty Tax Service’s tax course.

For more information, visit www.liberytaxespanol.com or call 1-800-768-9036.

Source: Liberty Tax Service, 12/29/2010

Check the Individuals section of the IRS website at http://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 to determine if you need to file a tax return. 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.

There are some instances when you may want to file a tax return even though you are not required to do so. Even if you don’t have to file, here are seven reasons why you may want to:

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

- Making Work Pay Credit You may be able to take this credit if you had earned income from work. The maximum credit for a married couple filing a joint return is $800 and $400 for other taxpayers.

- 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.

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

- American Opportunity Credit The maximum credit per student is $2,500 and the first four years of postsecondary education qualify.

- First-Time Homebuyer Credit The credit is a maximum of $8,000 or $4,000 if your filing status is married filing separately. To qualify for the credit, taxpayers must have bought – or entered into a binding contract to buy – a principal residence located in the United States on or before April 30, 2010. If you entered into a binding contract by April 30, 2010, you must have closed on the home on or before September 30, 2010. If you bought a home as your principle residence in 2010, you may be able to qualify and claim the credit even if you already owned a home. In this case, the maximum credit for long-time residents is $6,500, or $3,250 if your filing status is married filing separately.

- Health Coverage Tax Credit Certain individuals, who are receiving Trade Adjustment Assistance, Reemployment Trade Adjustment Assistance, or pension benefit payments from the Pension Benefit Guaranty Corporation, may be eligible for a Health Coverage Tax Credit worth 80 percent of monthly health insurance premiums when you file your 2010 tax return.

Source: irs.gov, IRS Tax Tip 2011-02

TAX REFORM

“There has been near universal agreement for years that the tax code is broken and needs to be fixed,” Olson said in releasing the report. “Yet no broad-based attempt to reform the tax code has been made. This report documents the burdens the tax code imposes on taxpayers and explores why many taxpayers may nevertheless feel wedded to key aspects of the current system, undermining efforts at reform.”

Compliance Burdens. A TAS analysis of IRS data shows that taxpayers and businesses spend 6.1 billion hours a year complying with tax-filing requirements. “If tax compliance were an industry, it would be one of the largest in the United States,” the report says. “To consume 6.1 billion hours, the ‘tax industry’ requires the equivalent of more than three million full-time workers.”

Individual taxpayers find return preparation so overwhelming that about 60 percent now pay preparers to do it for them. An additional 29 percent use tax software, with leading software packages costing $50 or more. IRS researchers recently estimated that the annual monetary tax compliance burden of the median individual taxpayer (as measured by income) is $258.

Tax Reform Challenges and Public Awareness. The report discusses why efforts at tax reform – which usually focus on eliminating tax breaks in exchange for lower rates – have not succeeded. “It is sometimes suggested that taxpayers are looking for a free lunch – that they want to see lower tax rates but keep their tax breaks and retain their government benefits, all while balancing the budget,” Olson said. “But this perspective overlooks the fact that federal tax and spending policies are complex, and most people don’t have the time to study these policies in detail. Our aim is to improve public knowledge of the trade-offs involved and to help policymakers and the taxpaying public conduct a more informed conversation about tax reform alternatives.”

The report attempts to improve awareness of the extent to which taxpayers benefit from tax breaks by discussing the subject in detail. The report attempts to improve awareness of the connection between taxation and spending by recommending that the government provide all taxpayers with a “taxpayer receipt” each year that presents a breakdown showing how their federal dollars are spent.

“The Special Interests Are Us.” The report notes there is a widespread belief that the influence of entrenched “special interests” is the biggest roadblock to comprehensive tax reform. “There is no doubt that many provisions in the tax code benefit narrow groups of taxpayers,” the report says. “But the dirty little secret is that the largest special interests are us – the vast majority of U.S. taxpayers. Virtually all of us benefit from certain exclusions from income, deductions from income, or tax credits.”

These tax breaks (known as “tax expenditures”) now total $1.1 trillion a year. Among the largest are the exclusion of employer contributions for health care, the exclusion for retirement plan contributions and earnings, the mortgage interest deduction, reduced tax rates for dividends and capital gains, exclusions for Medicare benefits, the earned income tax credit, and the deduction for state and local taxes. Other popular benefits include the child and dependent care credits; the deductions for charitable donations and contributions to traditional IRAs; and exclusions for distributions from Roth IRAs, for distributions from Section 529 education savings plans, for contributions to Flexible Spending Accounts (both medical and dependent care), and for public transportation subsidies.

Tax Breaks Reduce Average Tax Liability by About $8,000 Per Return. A TAS analysis found that, on average, the tax liability of each individual who files a federal tax return is reduced by about $8,000 a year due to these tax breaks. Moreover, since tax is computed as a percentage of income, a taxpayer who pays a 25 percent tax rate could be benefiting from deductions or exclusions from income worth $32,000. The report presents an example of a fairly typical taxpayer who faces a 25 percent marginal tax rate on his “taxable income,” yet ends up paying an average tax rate of 9 percent on his “gross income” because of tax breaks.

“If tax rates are to be substantially lowered, many existing tax breaks will have to be eliminated immediately and others will be phased out,” Olson said. “But I believe most taxpayers will conclude this is a worthwhile trade-off. If tax reform proceeds on a revenue-neutral basis, the average taxpayer’s liability will not change, and we will end up with a tax system that is simpler, more transparent, and easier and cheaper for taxpayers to navigate.”

The report acknowledges that Congress may at some point raise tax revenues to address the nation’s long-term fiscal challenges. However, the report suggests that Congress first enact structural tax reform on a revenue-neutral basis and keep separate the decision whether to adjust tax rates.

“Zero-Based Budgeting” Approach Recommended. The report recommends that Congress approach tax reform in a manner similar to zero-based budgeting. The starting assumption should be that all tax breaks would be eliminated; a tax break would then be retained only if a compelling case can be made that the benefits of providing the tax break outweigh the complexity burdens it creates. The report suggests additional core principles for tax reform and summarizes key simplification proposals the Advocate’s office has made in past reports, including repealing the Alternative Minimum Tax for individuals and consolidating the number of incentives that encourage taxpayers to save for education and retirement.

Tax Reform Suggestion Box. The National Taxpayer Advocate is today launching a web page to solicit taxpayer suggestions regarding tax reform. “What would taxpayers be willing to give up if they knew that others are giving up their breaks and the end result would be a much simpler system?” Olson asked. “What particular provisions of the existing tax system are especially burdensome or seem particularly unfair?” Suggestions may be submitted at http://www.TaxpayerAdvocate.irs.gov. TAS will track suggestions and post results periodically.

IRS USE OF HARD-CORE ENFORCEMENT TOOLS, ESPECIALLY TAX LIENS

The report describes the Advocate’s continuing concern that IRS collection practices inflict unnecessary harm on financially struggling taxpayers and fail to achieve the IRS’s overriding objective of increasing long-term voluntary compliance with the tax laws.

“Tax collection requires a delicate balancing of the government’s interest in collecting revenue and ensuring that all taxpayers pay their fair share of tax, on the one hand, and protecting financially struggling taxpayers from unnecessary harm, on the other,” Olson said. “Current IRS policies do very little balancing. For example, IRS lien filing policies are all about ‘protecting the government’s interest’ and don’t consider the impact on the taxpayer.”

Financial Impact of Tax Liens. In FY 2010, the IRS filed liens against 1.1 million taxpayers. When the IRS files a notice of federal tax lien, the taxpayer’s creditworthiness can be badly damaged for the long term. Lien filings are picked up by the three credit rating agencies and remain on the taxpayer’s credit report for seven years from the date a tax liability is resolved, or longer if it is not resolved. ”Increasingly, employers, mortgage lenders, landlords, car dealerships, auto insurance companies, and credit card issuers utilize credit reports, so a tax lien has the potential to render someone unemployable, unable to obtain housing (owned or rented), and unable to obtain car insurance or a credit card, at least at reasonable rates, for many years into the future,” Olson said. A tax lien can be particularly devastating to small businesses, as it often cuts off their access to credit.

Several Million Taxpayers Affected. Over the past seven years, the IRS has filed more than five million tax liens. The report says that despite the high unemployment rate and the unusually large number of Americans who are experiencing financial difficulties, the IRS is continuing to ramp up the number of tax liens it files each year. The 1.1 million liens filed in FY 2010 compare with 168,000 in FY 1999, an increase of 550 percent.

Revenue Benefits of Tax Liens Unknown. The IRS does not have data that show whether, or to what extent, liens further revenue collection. A TAS study conducted in 2009 suggests there is a possibility that lien filings may reduce long-term tax collection. Notably, over the same period that lien filings have increased by 550 percent, annual revenue collected by the IRS’s Collection function on an inflation-adjusted basis has remained flat.

“By filing a lien against a taxpayer with no money and no assets, the IRS often collects nothing, yet it inflicts long-term harm on the taxpayer by making it harder for him to get back on his feet when he does get a job,” Olson said. “Absent data that show liens make a meaningful contribution to revenue collection and especially in this economy, I find it unacceptable that the IRS continues to torment financially struggling taxpayers in this way.”

Broader Use of Collection Alternatives Recommended. The report states that the IRS has taken steps in the last year to reassess its collection policies but concludes that more steps should be taken quickly. The report reiterates the Advocate’s longstanding suggestion that the IRS make greater use of collection alternatives, such as offers in compromise, when dealing with taxpayers who cannot afford to pay their liabilities in full. A comprehensive assessment of the IRS’s collection policy and a suggested roadmap toward a more effective approach are presented in Volume 2 of the report.

IRS CHALLENGES IN ADMINISTERING BENEFITS PROGRAMS, INCLUDING HEALTH CARE REFORM

IRS as Tax Collector. Historically, the IRS’s mission has been to collect taxes, but in recent years, Congress has directed the IRS to administer an increasing number of social benefits programs, including Economic Stimulus Payments, the First-Time Homebuyer Credit, and the Making Work Pay Credit. The recent directive to administer major aspects of the new health care law will add significantly to the IRS’s workload. “I am confident the IRS can succeed in its implementation of health care reform,” Olson said. “But a comprehensive assessment of the issues and challenges that lie ahead is a prerequisite for success.”

IRS as Benefits Administrator. The IRS will administer four key provisions of the new law: the Small Business Tax Credit, the Premium Assistance Credit, the Individual Responsibility Requirement, and the Employer Requirement. Among the challenges the IRS faces is determining the types of new information it needs to gather, determining the new entities it needs to work with, resolving privacy issues, and implementing a new definition of income, the report says.

“From an organizational standpoint, there are substantial differences between benefits agencies and enforcement agencies in terms of culture, mindset, and the skill sets and training of their employees,” Olson said. “As the IRS prepares to administer large portions of the health care legislation, it will have to shift from being an enforcement agency that primarily says, in effect, ‘you owe us’ to an agency that places much greater emphasis on hiring and training caseworkers to help eligible taxpayers receive benefits and work one-on-one with taxpayers to resolve legitimate disagreements.”

Revision to IRS Mission Statement Recommended. The report points out that the IRS has a “mission statement” that should serve as its foundation and around which its strategic plan, operational priorities, budget, and performance measures should be built. In light of the IRS’s expanded responsibilities, the report recommends that the IRS revise its mission statement to recognize explicitly its dual roles as tax collector and benefits administrator. Greater recognition of this dual role will enable the IRS to plan more effectively to handle health care and will make explicit to Congress that the agency will require sufficient funding to perform both of its functions effectively, the report says.

* * * * *

Federal law requires the National Taxpayer Advocate to submit an Annual Report to Congress that identifies at least 20 of the most serious problems encountered by taxpayers and makes administrative and legislative recommendations to mitigate those problems. Overall, this year’s report identifies 21 problems, provides updates on four previously identified issues, makes dozens of recommendations for administrative change, proposes 11 recommendations for legislative change, and analyzes the 10 tax issues most frequently litigated in the federal courts.

About the Taxpayer Advocate Service

The Taxpayer Advocate Service is an independent organization within the IRS. TAS employees help taxpayers who are experiencing economic difficulties, such as not being able to provide necessities like housing, transportation, or food; taxpayers who are seeking help in resolving problems with the IRS; and those who believe an IRS system or procedure is not working as it should. If you believe you are eligible for TAS assistance, you can reach TAS by calling the TAS toll-free number at 877–777–4778 or TTY/TDD 800-829-4059. For more information, go to http://www.TaxpayerAdvocate.irs.gov.

Source: irs.gov, IR-2011-02, 1/5/11

Si usted domina el español e ingles, Liberty Tax Service está listo para ofrecerle una gran oportunidad. Simplemente necesita ser bilingüe con el corazón y el deseo sincero de ayudar a la comunidad Hispana. Liberty Tax Service está comprometido a ayudar a la comunidad Latina y necesita personas como usted, con habilidades bilingües, para lograrlo. No necesita tener experiencia previa en preparación de impuestos porque ellos le proporcionan el entrenamiento completamente gratis. Aprenda a preparar impuestos en su idioma con los cursos y libros en español que Liberty ofrece. Además, al unirse a la familia de Liberty Tax, usted podrá tomar ventaja de muchos más beneficios, como el Curso de Interprete, clases adicionales acerca de impuestos y otros entrenamientos de capacitación. Si desea empezar una carrera nueva en un ambiente profesional con horarios flexibles, pago honorario con incentivos y hasta la oportunidad de recibir créditos universitarios, regístrese para tomar los cursos de impuestos de Liberty Tax Service.

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Fuente: Liberty Tax Service, 12/28/2010

Taxpayers will have until Monday, April 18 to file their 2010 tax returns and pay any tax due because Emancipation Day, a holiday observed in the District of Columbia, falls this year on Friday, April 15. By law, District of Columbia holidays impact tax deadlines in the same way that federal holidays do; therefore, all taxpayers will have three extra days to file this year. Taxpayers requesting an extension will have until Oct. 17 to file their 2010 tax returns.

The IRS expects to receive more than 140 million individual tax returns this year, with most of those being filed by the April 18 deadline.

The IRS also cautioned taxpayers with foreign accounts to properly report income from these accounts and file the appropriate forms on time to avoid stiff penalties.
“The IRS has made important strides at stopping tax avoidance using offshore accounts,” said IRS Commissioner Doug Shulman. “We continue to focus on offshore tax compliance and people with offshore accounts need to pay taxes on income from those accounts.”

The IRS also reminded tax professionals preparing returns for a fee that this is the first year that they must have a Preparer Tax Identification Number (PTIN). Tax return preparers should register immediately using the new PTIN sign-up system available through www.IRS.gov/taxpros.

Who Must Wait to File

For most taxpayers, the 2011 tax filing season starts on schedule. However, tax law changes enacted by Congress and signed by President Obama in December mean some people need to wait until mid- to late February to file their tax returns in order to give the IRS time to reprogram its processing systems.

Some taxpayers – including those who itemize deductions on Form 1040 Schedule A – will need to wait to file. This includes taxpayers impacted by any of three tax provisions that expired at the end of 2009 and were renewed by the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act Of 2010 enacted Dec. 17. Those who need to wait to file include:

+ Taxpayers Claiming Itemized Deductions on Schedule A. Itemized deductions include mortgage interest, charitable deductions, medical and dental expenses as well as state and local taxes (add link to Schedule A). In addition, itemized deductions include the state and local general sales tax deduction that was also extended and which primarily benefits people living in areas without state and local income taxes. Because of late Congressional action to enact tax law changes, anyone who itemizes and files a Schedule A will need to wait to file until mid- to late February.

+ Taxpayers Claiming the Higher Education Tuition and Fees Deduction. This deduction for parents and students – covering up to $4,000 of tuition and fees paid to a post-secondary institution – is claimed on Form 8917. However, the IRS emphasized that there will be no delays for millions of parents and students who claim other education credits, including the American Opportunity Tax Credit extended last month and the Lifetime Learning Credit.

+ Taxpayers Claiming the Educator Expense Deduction. This deduction is for kindergarten through grade 12 educators with out-of-pocket classroom expenses of up to $250. The educator expense deduction is claimed on Form 1040, Line 23 and Form 1040A, Line 16.

In addition to extending those tax deductions for 2010, the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act also extended those deductions for 2011 and a number of other tax deductions and credits for 2011 and 2012 such as the American Opportunity Tax Credit and the modified Child Tax Credit, which help families pay for college and other child-related expenses. The Act also provides various job creation and investment incentives including 100 percent expensing and a two-percent payroll tax reduction for 2011. Those changes have no effect on the 2011 filing season.

The IRS will announce a specific date in the near future when it can start processing tax returns impacted by the recent tax law changes. In the interim, taxpayers affected by thesetax law changes can start working on their tax returns, but they should not submit their returns until IRS systems are ready to process the new tax law changes. Additional information will be available at www.IRS.gov.

For taxpayers who must wait before filing, the delay affects both paper filers and electronic filers. The IRS urges taxpayers to use e-file instead of paper tax forms to minimize confusion over the recent tax law changes and ensure accurate tax returns.

Except for those facing a delay, the IRS will begin accepting e-file and Free File returns on Jan. 14. Additional details about e-file and Free File will be announced later this month.

Many Ways to Get Assistance

The IRS is also continuing to focus on taxpayer service. Taxpayers with questions should check the IRS website at www.IRS.gov, call our toll-free number or visit a taxpayer assistance center.

This is also the first filing season that tax packages will not be mailed to individuals or businesses. There are still many options for taxpayers to get paper forms and instructions if they need them. In recent years, fewer and fewer taxpayers received these mailings. Last year, only 8 percent of individuals who filed tax returns received tax packages in the mail. Taxpayers can still get any forms and instructions they need online at www.IRS.gov, or they can visit local IRS offices or participating libraries and post offices.

In addition, individuals making $49,000 or less can use the Volunteer Income Tax Assistance program for free tax preparation and, in many cases, free electronic filing. Individuals age 60 and older can take advantage of free tax counseling and basic income tax preparation through Tax Counseling for the Elderly.

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 $58,000 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.

Check for a Refund

Once taxpayers file their federal return, they can track the status of their refunds by using the “Where’s My Refund?” tool, located on the front page of www.IRS.gov. Taxpayers can generally get information about their refunds 72 hours after the IRS acknowledges receipt of their e-filed returns, or three to four weeks after mailing a paper return.

Taxpayers need to provide the following information from their tax returns: (1) Social Security Number or Individual Taxpayer Identification Number, (2) filing status, and (3) the exact whole dollar amount of your anticipated refund. If the U.S. Postal Service returns the taxpayer’s refund to the IRS, the individual may be able to use “Where’s My Refund?” to change the address the IRS has on file, online.

Also, taxpayers may complete a Form 8822, Change of Address, and send it to the address shown on the form. They may download Form 8822 from www.IRS.gov or order it by calling 800-TAX-FORM. Generally, taxpayers can file an online claim for a replacement check if more than 28 days have passed since the IRS mailed their refund.

Source: irs.gov, IR-2011-1, 1/4/2011

Check the Individuals section of the IRS website at http://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 to determine if you need to file a tax return. 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.

There are some instances when you may want to file a tax return even though you are not required to do so. Even if you don’t have to file, here are seven reasons why you may want to:

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

2. Making Work Pay Credit You may be able to take this credit if you had earned income from work. The maximum credit for a married couple filing a joint return is $800 and $400 for other taxpayers.

3. 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.

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

5. American Opportunity Credit The maximum credit per student is $2,500 and the first four years of postsecondary education qualify.

6. First-Time Homebuyer Credit The credit is a maximum of $8,000 or $4,000 if your filing status is married filing separately. To qualify for the credit, taxpayers must have bought – or entered into a binding contract to buy – a principal residence located in the United States on or before April 30, 2010. If you entered into a binding contract by April 30, 2010, you must have closed on the home on or before September 30, 2010. If you bought a home as your principle residence in 2010, you may be able to qualify and claim the credit even if you already owned a home. In this case, the maximum credit for long-time residents is $6,500, or $3,250 if your filing status is married filing separately.

7. Health Coverage Tax Credit Certain individuals, who are receiving Trade Adjustment Assistance, Reemployment Trade Adjustment Assistance, or pension benefit payments from the Pension Benefit Guaranty Corporation, may be eligible for a Health Coverage Tax Credit worth 80 percent of monthly health insurance premiums when you file your 2010 tax return.

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

Source: irs.gov, Tax Tip 2011-02, 1/4/11

In 2010, Liberty Tax Service, the fastest-growing retail tax preparation company in the industry’s history, created the Una Familia Sin Fronteras Foundation, the first Foundation in the industry which specifically aims to contribute to Hispanic immigrants’ success through fiscal and financial education.

The Foundation was developed to concentrate on and expand the financial and fiscal educational outreach programs currently provided free of charge through Liberty Tax Service’s rapidly- growing and highly successful Hispanic community initiative, Una Familia Sin Fronteras (A Family without Boundaries). Through this multi-faceted initiative, Liberty Tax Service has been educating thousands of Hispanic adults on ways to achieve financial and future success in the United States. The initiative has earned the respect and support of institutions and educational organizations including public school districts throughout the U.S., the Mexican government’s Foreign Ministry’s Institute for Mexicans Abroad (IME, or Instituto de los Mexicanos en el Exterior), and national non-profit organizations nationwide.
While Liberty Tax Service is the primary initiator and underwriter of the Una Familia Sin Fronteras Foundation, it plans to open sponsorship and participation to strategically aligned corporations, in order to increase the resources and capabilities of the Foundation and thereby increase its efforts and impact on the Hispanic community.

“Creating this Foundation is just the logical next step in expanding our commitment to Hispanic communities across the U.S.” explains John Hewitt, Founder and CEO of Liberty Tax Service. “Our Hispanic initiative has been providing free education to Latinos through numerous organizations and educational institutions nationwide for over two years. By creating the Una Familia Sin Fronteras Foundation, we will be able to not only continue our work as a broader effort, but to also allow other corporations and professionals the opportunity to join us and add their educational experience and expertise to the mix. Together, we will be able to provide our new immigrant communities with information that will help them grow financially so they can more quickly become integrated into the U.S. economic system and ultimately achieve their American dream.”

The Una Familia Sin Fronteras Foundation is currently in the process of selecting a Board of Directors, as well as an Advisory Council. Interested individuals, organizations and corporations are urged to contact Martee Pierson, Director of Diversity Programs for Liberty Tax Service at martee.pierson@libtax.com for more information on the Foundation and to discuss potential alliances.

En el 2010, Liberty Tax Service, el proveedor de preparación de impuestos de mayor crecimiento en la historia de la industria, creó la Fundación Una Familia Sin Fronteras, la primera Fundación en la industria que se enfoca, a través de la educación, en mejorar la calidad de vida de hispanos que viven en los Estados Unidos.
La Fundación se desarrolló para concentrar y expandir los programas educativos de alcance que actualmente se ofrecen, libre de costo, a través de la iniciativa comunitaria de rápido crecimiento de Liberty Tax Service, Una Familia Sin Fronteras. A través de esta multifacética iniciativa, Liberty Tax Service ha estado educando a miles de adultos hispanos en los Estados Unidos para que puedan lograr el éxito en sus finanzas y en su futuro. Esta iniciativa se ha ganado el respeto y el apoyo de instituciones y organizaciones educativas, incluyendo distritos de escuelas públicas a través de la nación, como también del Instituto de los Mexicanos en el Exterior y otras organizaciones sin fines de lucro a nivel nacional.

Mientras Liberty Tax Service es el iniciador primario y el asegurador de la Fundación Una Familia Sin Fronteras, se planea abrir el patrocinio y la participación a corporaciones estratégicamente aliadas, para aumentar los recursos y capacidades de la Fundación y, por ende, aumentar los esfuerzos y el impacto en la comunidad hispana.

“Crear esta Fundación es, justamente, el próximo paso lógico en la expansión de nuestro compromiso con las comunidades hispanas a través de los Estados Unidos,” explicó John Hewitt, fundador y CEO de Liberty Tax Service. “Nuestra iniciativa hispana ha estado otorgando, por casi dos años, educación gratis a latinos a través de muchas organizaciones e instituciones educativas alrededor de la nación. Al crear la Fundación Una Familia Sin Fronteras, lograremos, no solo continuar nuestro trabajo como un esfuerzo más amplio, sino que ofreceremos a otras corporaciones y profesionales la oportunidad de unirse a nosotros para compartir su conocimiento y experiencia educativa. Juntos, lograremos proveerles a las nuevas comunidades de inmigrantes la información que les ayudará a que su nivel financiero crezca, para que puedan integrarse más rápidamente al sistema económico de los Estados Unidos y, en última instancia, lograr la esperanza de éxito en los EE.UU.

La Fundación Una Familia Sin Fronteras está actualmente en el proceso de seleccionar a la Junta de Directores, como también un Consejo Asesor. Se exhorta a los individuos, organizaciones y corporaciones interesadas a contactar a Martee Pierson, Directora de Programas de Diversidad de Liberty Tax Service a martee.pierson@libtax.com, para recibir mayor información sobre la Fundación y para discutir alianzas potenciales.

Fuente: Liberty Tax Service

The ethnic makeup of the world’s largest economy will be increasingly diverse, with more mixed-race Americans, according to the head of the U.S. Census Bureau.

“This is the decade of Tiger Woods and Barack Obama, where we talked about race combinations,” Robert Groves, director of the federal agency, said about forthcoming 2010 Census data in an interview on Bloomberg Television’s “Political Capital with Al Hunt,” airing this weekend. “I can’t wait to see the pattern of responses on multiple races. That’ll be a neat indicator to watch.”

The 2010 Census was the second consecutive decennial count to allow residents to identify as more than one race, and Groves said it’s likely that more respondents checked off multiple races.

The nation’s population grew 9.7 percent to 308,745,538 in 2010, from the previous decade, with the fastest gains coming in the South and West, the agency said this week. The release included only U.S. and state population figures, with more data on race, ethnicity, housing and other variables provided in February and March for all levels of geography.

“We’ll be taught something about our society, and that is new ethnic groups are going all over the country,” Groves said. “It’s not just the coasts and it’s not just urban areas.”

The overall growth, driven by an increase in Hispanic residents, was the weakest in seven decades as the worst recession since the Great Depression stunted immigration. The latest U.S. population count shows the nation’s demographic center of gravity continued to shift, advancing a decades-old movement of people and political clout away from the Northeast and Midwest.

“This is the first decade, I point out, that the Western region is larger than the Midwest region,” Groves said. “The West region, these states that came last into the union, sparsely settled, that’s filling up in a way that we’ve never seen before.”

When Obama was born in 1961, more than half the nation — 54 percent — lived in the Midwest and Northeast. Now, midway through his first term, 39 percent live there, the census data show.

States including Texas, Florida and Arizona are witnessing a fresh inflow of people from within the U.S. and beyond the nation’s borders and will benefit from more representation in Washington. Ohio, New York and New Jersey are among the states that will lose seats in Congress.

Congressional seats are reapportioned every decade after completion of the census, with each district to have roughly the same number of people, about 710,000 in the next decade.

The Census Bureau will roll out in February and March detailed block-level data needed to redraw congressional districts. That information will be loaded into mapping software, and states will begin building their new districts over the following months.

In 2008, Hispanics voted for Obama by a ratio of more than 2-to-1, according to the nonpartisan Pew Hispanic Center in Washington.

Source: News Telegram, 12/25/2010
Read more: http://www.telegram.com/article/20101225/NEWS/12250412#ixzz1ABhK4yBi

A study fielded by Horowitz earlier this year suggested that although Black and Hispanic homes under-index for broadband, they are driving new broadband growth. In Horowitz’s new study, multicultural consumers with broadband also lead the way in ownership of video-enabled handheld devices: 84% of Asian and 83% of Hispanic and Black broadband users can access video on a handheld, compared to 74% of Whites.

With growing access to alternative platforms and more robust content on them, the study finds multicultural consumers are generally more involved in multiplatform TV than Whites. Almost half (48%) of Asian, 46% of Hispanic, and 35% of both Black and White broadband users watch TV content online; 16% of Asian, 22% of Hispanic, 19% of Black, and 15% of White broadband users watch TV content on a handheld (weekly data).

Despite heavy usage of multiplatform TV, the traditional set still dominates. Seventy-four percent of Black broadband users who watch TV on alternative platforms report that most of their viewing still occurs primarily on the TV set. Among other groups, 70% of Asians, 75% of Hispanics and 75% of Whites reported doing so.

On the other hand, for 24% of Black broadband users, alternative platforms are now used equally or more than traditional TV. Twenty-nine percent of Asians and 22% of Hispanics said the same.

One-quarter of Asian (24%) and White (25%) multichannel subscribers say they are considering/might consider cancelling their TV subscriptions if more of their favorite content were available online. The potential for cord-cutting is lower among Hispanics and Blacks; still 18% of Hispanic, and 13% of Black multichannel subscribers are considering/would consider cutting the cord.

“Our data consistently show that multicultural audiences tend to be on the leading edge for advanced technologies and services,” asserts Adriana Waterston, VP of Business Development for Horowitz Associates. “When it comes to alternative TV platforms, multicultural consumers want more choice, not less. Any players in the multicultural space need to deliver what viewers are coming to expect: cross-platform content.”

Source: Target Market News, 12/27/2010

The new guidance modifies previous guidance to permit taxpayers to continue using FSA and HRA debit cards to purchase over-the-counter medications for which the taxpayer has a prescription. Effective after Jan. 15, 2011, in accordance with the new guidance, this use of debit cards must comply with procedures reflecting those that pharmacies currently follow when selling prescribed medicines or drugs.

The procedures include requirements that a prescription for the medication be presented to the pharmacy or the mail-order or web-based vendor that dispenses the medication and that proper records be retained.

In accordance with the Affordable Care Act, the cost of over-the-counter medicines or drugs can be reimbursed from a health FSA or HRA if a prescription has been obtained. The requirement to obtain a prescription does not apply to insulin.

The prescription requirement applies to purchases made on or after Jan. 1, 2011, and not to purchases made in 2010 even if reimbursed after Dec. 31, 2010. Because the requirement applies only to over-the-counter medications, it does not apply to other health care expenses such as medical devices, eye glasses or contact lenses.

The new guidance, IRS Notice 2011-5, as well as answers to frequently asked questions on IRS.gov, also contain further details on health FSA and HRA debit card purchases, including purchases from health care providers other than pharmacies and mail order and web-based vendors.

For guidance on health FSA and HRA debit card purchases at “90 percent pharmacies,” see IRS Notice 2010-59. More information on health care reform provisions can be found on the Affordable Care Act page on IRS.gov.

Source: irs.gov. IR-2010-128

These inflation adjustments relate to eight tax provisions that were either modified or extended by the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 that became law on Dec. 17. New dollar amounts affecting 2011 returns, filed by most taxpayers in early 2012, include the following:

- The value of each personal and dependent exemption, available to most taxpayers, is $3,700, up $50 from 2010.

- The new standard deduction is $11,600 for married couples filing a joint return, up $200, $5,800 for singles and married individuals filing separately, up $100, and $8,500 for heads of household, also up $100. The additional standard deduction for blind people and senior citizens is $1,150 for married individuals, up $50, and $1,450 for singles and heads of household, also up $50. Nearly two out of three taxpayers take the standard deduction, rather than itemizing deductions, such as mortgage interest, charitable contributions and state and local taxes.

- Tax-bracket thresholds increase for each filing status. For a married couple filing a joint return, for example, the taxable-income threshold separating the 15-percent bracket from the 25-percent bracket is $69,000, up from $68,000 in 2010.

- The maximum earned income tax credit (EITC) for low- and moderate- income workers and working families rises to $5,751, up from $5,666 in 2010. The maximum income limit for the EITC rises to $49,078, up from $48,362 in 2010.The credit varies by family size, filing status and other factors, with the maximum credit going to joint filers with three or more qualifying children.

- The modified adjusted gross income threshold at which the lifetime learning credit begins to phase out is $102,000 for joint filers, up from $100,000, and $51,000 for singles and heads of household, up from $50,000.

Several tax benefits are unchanged in 2011. For example, the monthly limit on the value of qualified transportation benefits (parking, transit passes, etc.) provided by an employer to its employees, remains at $230. Details on these inflation adjustments can be found in Revenue Procedure 2011-12.

By law, the dollar amounts for a variety of tax provisions, affecting virtually every taxpayer, must be revised each year to keep pace with inflation. Most of the new dollar amounts, including retirement-plan-related adjustments, were announced in October. To avoid confusion, the eight provisions released today were not included in the October announcements, due to the anticipated impact of extender legislation.

Source: irs.gov, IR-2010-127

The start of the 2011 filing season will begin in January for the majority of taxpayers. However, last week’s changes in the law mean that the IRS will need to reprogram its processing systems for three provisions that were extended in the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 that became law on Dec. 17.

People claiming any of these three items — involving the state and local sales tax deduction, higher education tuition and fees deduction and educator expenses deduction as well as those taxpayers who itemize deductions on Form 1040 Schedule A — will need to wait to file their tax returns until tax processing systems are ready, which the IRS estimates will be in mid- to late February.

“The majority of taxpayers will be able to fill out their tax returns and file them as they normally do,” said IRS Commissioner Doug Shulman. “We will do everything we can to minimize the impact of recent tax law changes on other taxpayers. The IRS will work through the holidays and into the New Year to get our systems reprogrammed and ensure taxpayers have a smooth tax season.”

The IRS will announce a specific date in the near future when it can start processing tax returns impacted by the late tax law changes. In the interim, people in the affected categories can start working on their tax returns, but they should not submit their returns until IRS systems are ready to process the new tax law changes.

The IRS urged taxpayers to use e-file instead of paper tax forms to minimize confusion over the recent tax changes and ensure accurate tax returns.

Taxpayers will need to wait to file if they are within any of the following three categories:

- Taxpayers claiming itemized deductions on Schedule A. Itemized deductions include mortgage interest, charitable deductions, medical and dental expenses as well as state and local taxes. In addition, itemized deductions include the state and local general sales tax deduction extended in the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 enacted Dec. 17, which primarily benefits people living in areas without state and local income taxes and is claimed on Schedule A, Line 5. Because of late Congressional action to enact tax law changes, anyone who itemizes and files a Schedule A will need to wait to file until mid- to late February.

- Taxpayers claiming the Higher Education Tuition and Fees Deduction. This deduction for parents and students — covering up to $4,000 of tuition and fees paid to a post-secondary institution — is claimed on Form 8917. However, the IRS emphasized that there will be no delays for millions of parents and students who claim other education credits, including the American Opportunity Tax Credit and Lifetime Learning Credit.

Taxpayers claiming the Educator Expense Deduction. This deduction is for kindergarten through grade 12 educators with out-of-pocket classroom expenses of up to $250. The educator expense deduction is claimed on Form 1040, Line 23, and Form 1040A, Line 16.

For those falling into any of these three categories, the delay affects both paper filers and electronic filers.

The IRS emphasized that e-file is the fastest, best way for those affected by the delay to get their refunds. Those who use tax-preparation software can easily download updates from their software provider. The IRS Free File program also will be updated.

As part of this effort, the IRS will be working closely with the tax software industry and tax professional community to minimize delays and ensure a smooth tax season.

Updated information will be posted on IRS.gov. This will include an updated copy of Schedule A as well as updated state and local sales tax tables. Several other forms used by relatively few taxpayers are also affected by the recent changes, and more details are available on IRS.gov.

In addition, the IRS reminds employers about the new withholding tables released Friday for 2011. Employers should implement the 2011 withholding tables as soon as possible, but not later than Jan. 31, 2011. The IRS also reminds employers that Publication 15, (Circular E), Employer’s Tax Guide, containing the extensive wage bracket tables that some employers use, will be available on IRS.gov before year’s end.

Source: irs.gov, IR-2010-126

Millions of workers will see their take-home pay rise during 2011 because the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 provides a two percentage point payroll tax cut for employees, reducing their Social Security tax withholding rate from 6.2 percent to 4.2 percent of wages paid. This reduced Social Security withholding will have no effect on the employee’s future Social Security benefits.

The new law also maintains the income-tax rates that have been in effect in recent years.

Employers should start using the new withholding tables and reducing the amount of Social Security tax withheld as soon as possible in 2011 but not later than Jan. 31, 2011. Notice 1036, released today, contains the percentage method income tax withholding tables, the lower Social Security withholding rate, and related information that most employers need to implement these changes. Publication 15, (Circular E), Employer’s Tax Guide, containing the extensive wage bracket tables that some employers use, will be available on IRS.gov in a few days.

The IRS recognizes that the late enactment of these changes makes it difficult for many employers to quickly update their withholding systems. For that reason, the agency asks employers to adjust their payroll systems as soon as possible, but not later than Jan. 31, 2011.

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, 2011.

Employers and payroll companies will handle the withholding changes, so workers typically won’t need to take any additional action, such as filling out a new W-4 withholding form.

As always, however, the IRS urges workers to review their withholding every year and, if necessary, fill out a new W-4 and give it to their employer. For example, individuals and couples with multiple jobs, people who are having children, getting married, getting divorced or buying a home, and those who typically wind up with a balance due or large refund at the end of the year may want to consider submitting revised W-4 forms. Publication 919, How Do I Adjust My Tax Withholding?, provides more information to workers on making changes to their tax withholding.

Source: irs.gov, IR-2010-124

The purpose of the meeting was to provide the “top gun” franchisees orientations to several key national Hispanic community initiatives for 2011, as well as to solicit inputs regarding opportunities to expand or enhance the Hispanic initiative. Liberty Tax Service has long been involved in community service and educational projects on a nationwide basis. To better serve the Hispanic community, Liberty Tax Service established fiscal and financial literacy as a true “ideal”, and created the Una Familia Sin Fronteras initiative to bring value, education and success to Hispanics throughout the United States by helping them understand the specifics of our economic structure.

John Hewitt, Founder and CEO of Liberty Tax Service, attended the meeting, demonstrating Liberty Tax Service’s top management commitment to providing excellent service, as well as strong support to Hispanic communities throughout the United States. “We have always viewed the importance of education as a key success driver for our new immigrants and we have created this initiative to do just that,” explains Hewitt. “We are very fortunate to have franchise owners across the nation who embrace the importance of community service and are fully engaged in bringing this much needed education to a very deserving population.”

An emotional moment was shared as the meeting attendees were privy to a congratulatory conference call with recent graduates of one of the free 15-hour financial/fiscal courses offered by Liberty Tax Service in San Antonio through the Northside Independent School District Hispanic Adult Outreach program and the Mexican Consulate. A moment of silence was held to commemorate one of the students who had died just prior to completing the seminar. Graduating from the course was so important to him that his widow came to the ceremony to accept his Certificate of Completion. Needless to say, there was not a dry eye in the room. This is what Una Familia Sin Fronteras is really about!

Source: Liberty Tax Service

El propósito de la reunión fue brindar a los propietarios de franquicias “élite” orientaciones a varias iniciativas para comunidades hispanas claves a nivel nacional para el 2011, al igual que solicitar sus aportes con respecto a oportunidades para expandir o mejorar la iniciativa hispana. Liberty Tax Service ha estado involucrado por mucho tiempo en el servicio comunitario y en proyectos educativos a escala nacional. Para servir mejor a la comunidad hispana, Liberty Tax Service estableció la alfabetización fiscal y financiera como un verdadero “ideal” y creó la iniciativa Una Familia Sin Fronteras para brindar valor, educación y éxito a los hispanos alrededor de los Estados Unidos ayudándoles a entender los detalles específicos de nuestra estructura económica.

John Hewitt, fundador y Director Ejecutivo de Liberty Tax Service, asistió a la reunión, demostrando el compromiso de las altas directivas de Liberty Tax Service con proporcionar excelente servicio y un fuerte apoyo a las comunidades hispanas en todo el país. “Siempre hemos visto la importancia de la educación como impulsor de éxito clave para nuestros nuevos inmigrantes y hemos creado esta iniciativa para hacer precisamente eso,” explica Hewitt. “Somos muy afortunados de contar con propietarios de franquicia en todo el país que adoptan la importancia del servicio comunitario y que están completamente comprometidos en brindar esta educación tan necesaria a una población que bien se lo merece”.

Un momento muy emotivo se compartió cuando los asistentes de la reunión participaron en una conferencia telefónica de felicitaciones con egresados recientemente graduados de uno de los cursos fiscales/financieros gratuitos de 15 horas ofrecidos por Liberty Tax Service en San Antonio a través del Programa de Alcance Comunitario Adulto Hispano del Distrito Escolar Northside y del Consulado Mexicano. Se mantuvo un momento de silencio para conmemorar a uno de los estudiantes que falleció justo antes de completar el seminario. Graduarse de este curso era tan importante para el, que su viuda participó en la ceremonia para aceptar su Certificado de Cumplimiento. No es necesario decir que no había una sola persona a la que no se le aguaran los ojos en esta ceremonia. ¡Esto es realmente de lo que se trata Una Familia Sin Fronteras!

Fuente: Liberty Tax Service

- 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 October 2010 to take effect November 1, 2010, based on daily compounding.

Revenue Ruling 2010-31, announcing the rates of interest, is attached and will appear in Internal Revenue Bulletin No. 2010-52, dated December 27, 2010.

Source: irs.gov, IR-2010-120

The IRS Twitter news feed, @IRSnews, provides the latest federal tax news and information for taxpayers. The focus of the IRS Twitter messages will be on easy-to-use information, including tax tips, tax law changes and important IRS programs such as e-file, the earned income tax credit and “Where’s My Refund.” Anyone with a Twitter account can follow @IRSnews by going to http://twitter.com/IRSnews.

Another important IRS Twitter feed, @IRStaxpros, is designed for the tax professional community. Follow @IRStaxpros by going to http://twitter.com/IRStaxpros. The IRS also tweets tax news and information in Spanish at @IRSenEspanol. Follow this Twitter feed by going to http://twitter.com/IRSenEspanol.

The IRS Twitter feeds will work in conjunction with IRS.gov and the IRS YouTube channels to bring IRS information direct to taxpayers. Since August of 2009, there have been more than 1 million views of videos on the IRSvideos (http://www.youtube.com/irsvideos), IRS multilingual (http://www.youtube.com/user/IRSvideosmultilingua) and IRS American Sign Language (ASL) (http://www.youtube.com/IRSvideosASL) channels.

In addition to Twitter and YouTube, the IRS provides additional social media tools to inform and assist taxpayers.

In addition, the IRS has an extensive set of e-news subscriptions for specific groups. A full list is available.

Soruce: irs.gov, Media Advisory, 12/6/2010

Beginning on Jan. 1, 2011, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

+ 51 cents per mile for business miles driven
+ 19 cents per mile driven for medical or moving purposes
+ 14 cents per mile driven in service of charitable organizations

The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs as determined by the same study. Independent contractor Runzheimer International conducted the study.

A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for any vehicle used for hire or for more than four vehicles used simultaneously.

Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

Revenue Procedure 2010-51 contains additional details regarding the standard mileage rates.

Source: irs.gov, IR-2010-119

New Form 8941, Credit for Small Employer Health Insurance Premiums, and newly revised Form 990-T are now available on IRS.gov. The IRS also posted on its website the instructions to Form 8941 and Notice 2010-82 , both of which are designed to help small employers correctly figure and claim the credit.

Included in the Affordable Care Act enacted in March, the small business health care tax credit is designed to encourage both small businesses and small tax-exempt organizations to offer health insurance coverage to their employees for the first time or maintain coverage they already have.

The new guidance addresses small business questions about which firms qualify for the credit by clarifying that a broad range of employers meet the eligibility requirements, including religious institutions that provide coverage through denominational organizations, small employers that cover their workers through insured multiemployer health and welfare plans, and employers that subsidize their employees’ health care costs through a broad range of contribution arrangements.

In general, the credit is available to small employers that pay at least half of the premiums for single health insurance coverage for their employees. It is specifically targeted to help small businesses and tax-exempt organizations that primarily employ moderate- and lower-income workers.

Small businesses can claim the credit for 2010 through 2013 and for any two years after that. For tax years 2010 to 2013, the maximum credit is 35 percent of premiums paid by eligible small businesses and 25 percent of premiums paid by eligible tax-exempt organizations. Beginning in 2014, the maximum tax credit will increase to 50 percent of premiums paid by eligible small business employers and 35 percent of premiums paid by eligible tax-exempt organizations.

The maximum credit goes to smaller employers –– those with 10 or fewer full-time equivalent (FTE) employees –– paying annual average wages of $25,000 or less. The credit is completely phased out for employers that have 25 or more FTEs or that pay average wages of $50,000 or more per year. Because the eligibility rules are based in part on the number of FTEs, not the number of employees, employers that use part-time workers may qualify even if they employ more than 25 individuals.

Eligible small businesses will first use Form 8941 to figure the credit and then include the amount of the credit as part of the general business credit on its income tax return.

Tax-exempt organizations will first use Form 8941 to figure their refundable credit, and then claim the credit on Line 44f of Form 990-T. Though primarily filed by those organizations liable for the tax on unrelated business income, Form 990-T will also be used by any eligible tax-exempt organization to claim the credit, regardless of whether they are subject to this tax.

More information about the credit, including a step-by-step guide to claiming the credit and answers to frequently asked questions, is available on the Affordable Care Act page on IRS.gov.

Source: irs.gov, IR-2010-117

Virginia Beach, VA – November 29, 2010 –Liberty Tax Service was honored by IME (Institute of Mexicans Abroad), the Mexican government ministry that governs all Mexican Consulates in the United States, at a press conference held in Mexico City on November 19th. This annual event celebrates the release of IME’s “Historias de Migrantes” (Migrant Stories) yearly book publication and acknowledges the efforts of selected representatives from Consulates across the U.S. Each year, these Consulates submit remarkable stories about immigrants in their communities. These stories are reviewed by IME, and a select few are deemed worthy to be featured in the “Historias de Migrantes” book. The 2010 edition was just published by IME and will now be distributed to the public through the Consulates.

The event opened with a speech in Spanish by Martee Pierson, Director of Diversity Programs for Liberty Tax Service. “This annual contest is an extremely important event for the Consulates as they not only receive gratitude and national acknowledgment from IME, but their heart-touching stories will also be shared with thousands of people through this important publication”, explained Pierson. “The stories featured in this book are extraordinary and detail events experienced by our immigrant community as they work to conform and contribute to our mainstream economy. Liberty Tax Service is honored to have been acknowledged at this press event and celebration, and we are equally honored that IME has included a printed acknowledgment in the book for our efforts to help educate Mexican nationals in the U.S. through our Una Familia Sin Fronteras corporate initiative and Foundation. Working closely with IME and the Mexican Consulate in the U.S. has been an extremely gratifying experience for Liberty Tax Service,” she continued.

The Press event was held at the Ministry’s offices in Mexico City and was followed by a luncheon reception attended by all of the authors, IME dignitaries and special guests, including Liberty Tax Service – Una Familia Sin Fronteras.

Virginia Beach, VA – 29 de noviembre de 2010 –Liberty Tax Service recibió una distinción del IME (Instituto de los Mexicanos en el Exterior), que es el ministerio mexicano que gobierna a los consulados mexicanos en los Estados Unidos, en la conferencia de prensa realizada en la Ciudad de México el pasado 19 de noviembre. Mediante de este evento el IME celebra cada año el lanzamiento de la publicación anual “Historias de Migrantes” y reconoce los esfuerzos de los representantes consulares más destacados en los Estados Unidos. Cada año, estos consulados presentan historias excepcionales de los inmigrantes en sus comunidades. Estas historias son cuidadosamente revisadas por el IME, de las cuales se escogen a las ganadoras para ser publicadas en el libro “Historias de Migrantes”. La edición del 2009 fue publicada recientemente por el IME y será distribuida al público a través de los consulados.

El evento comenzó con un discurso en español presentado por la Directora de Programas de Diversidad de Liberty Tax Services, Martee Pierson. “Este concurso anual es un evento de gran importancia para los consulados, ya que ellos no solamente reciben la gratitud y el reconocimiento nacional por parte del IME, sino que sus historias conmovedoras serán también compartidas con miles de personas a través de esta importante publicación”, dijo Pierson. “Las historias que aparecen en este libro son extraordinarias y detallan acontecimientos vividos por nuestra comunidad de inmigrantes al tiempo que trabajan por cumplir y contribuir con nuestra economía. Es un honor para Liberty Tax Service el haber sido reconocido en este evento y esta celebración, e igualmente nos sentimos honrados de que IME haya incluido en el libro un reconocimiento por los esfuerzos realizados para ayudar a educar a los mexicanos en Estados Unidos a través de nuestra iniciativa corporativa y Fundación Una Familia Sin Fronteras. Trabajar de cerca con el IME y el Consulado Mexicano en los Estados Unidos ha sido una experiencia altamente grata para Liberty Tax Service,” continuó.

El evento de prensa se llevó a cabo en las oficinas de la Secretaria de Relaciones Exteriores localizadas en la Ciudad de México y fue seguido por una recepción y almuerzo al que asistieron todos los autores, dignatarios del IME e invitados especiales, entre ellos Liberty Tax Service – Una Familia Sin Fronteras.

GANADORES.- Se otorgaron reconocimientos a 17 trabajos, de los cuales 7 historias fueron ganadoras y 10 recibieron menciones honoríficas.

Categoría “A” México: 3 ganadores procedentes de Aguascalientes, Jalisco y Querétaro, y 4 menciones honoríficas. Trabajos ganadores:
- Viaje redondo:
- ¡Púchica! ¡Qué difícil….
- Cuando los barrios de Los Ángeles dejaron de ser guettos:

Categoría “B” Estados Unidos: 3 ganadores procedentes de Arizona, Pensilvania y Carolina del Norte, además de 3 menciones honoríficas. Trabajos ganadores:
- El Sueño Americano
- De pe a pa
- Cada quien desde su trinchera,

Categoría “C” Resto del Mundo: 1 ganadora de Suecia, con el trabajo titulado El Triple Exilio. Además de 3 menciones honoríficas.

Las instituciones convocantes consideraron de gran relevancia la impresión de los trabajos ganadores y las menciones honoríficas debido a que, de esa forma quedarán en un sólo volumen los testimonios y experiencias.

La publicación fue patrocinada por la organización estadounidense sin fines de lucro “Liberty Tax Service-Una Familia sin Fronteras”.

En el marco de la presentación se lanzó la 4ª Convocatoria el día de hoy, cuyo fin será estimular a las personas para que escriban sobre los logros que ocurren durante la experiencia de la migración internacional, tanto en sus comunidades de origen como de destino, así como las aportaciones de los migrantes a las comunidades de recepción.

Las bases de la Convocatoria podrán ser revisadas en la página web de los Instituciones convocantes: www.conapo.gob.mx; www.ime.gob.mx; www.conaculta.gob.mx.

Fuente: Lazos, Boletín Especial, Instituto de los Mexicanos en el Exterior,

“We want to make sure taxpayers get the money owed to them,” said IRS Commissioner Doug Shulman. “If you think you are missing a refund, the sooner you update your address information, the quicker you can get your money.”

A taxpayer only needs to update his or her address once for the IRS to send out all checks due. Undelivered refund checks average $1,471 this year, compared to $1,148 last year. Some taxpayers are due more than one check.

The average dollar amount for returned refunds rose by just over 28 percent this year, possibly due to recent changes in tax law which introduced new credits or expanded existing credits, such as the Earned Income Tax Credit.

If a refund check is returned to the IRS as undelivered, taxpayers can generally update their addresses with the “ Where’s My Refund?” tool on IRS.gov. The tool also enables taxpayers to check the status of their refunds. A taxpayer must submit his or her Social Security number, filing status and amount of refund shown on their 2009 return. The tool will provide the status of their refund and, in some cases, instructions on how to resolve delivery problems.

Taxpayers checking on a refund over the phone will receive instructions on how to update their addresses. Taxpayers can access a telephone version of “Where’s My Refund?” by calling 1-800-829-1954.

While only a small percentage of checks mailed out by the IRS are returned as undelivered, taxpayers can put an end to lost, stolen or undelivered checks by choosing direct deposit when they file either paper or electronic returns. Taxpayers can receive refunds directly into their bank, split a tax refund into two or three financial accounts or even buy a savings bond.

The IRS also recommends that taxpayers file their tax returns electronically, because e-file eliminates the risk of lost paper returns. E-file also reduces errors on tax returns and speeds up refunds. E-file combined with direct deposit is the best option for taxpayers; it’s easy, fast and safe.

The public should be aware that the IRS does not contact taxpayers by e-mail to alert them of pending refunds and that such messages are common identity theft scams. The agency urges taxpayers not to release any personal information, reply, open any attachments or click on any links to avoid malicious code that will infect their computers.

Source: IRS. gov, IR-2010-113

The elective deferral (contribution) limit for employees who participate in section 401(k), 403(b), or 457(b) plans, and the federal government’s Thrift Savings Plan remains unchanged at $16,500.

The catch-up contribution limit under those plans for those aged 50 and over remains unchanged at $5,500.

The deduction for taxpayers making contributions to a traditional IRA is phased out for singles and heads of household who are active participants in an employer-sponsored retirement plan and have modified adjusted gross incomes (AGI) between $56,000 and $66,000, unchanged from 2010. For married couples filing jointly, in which the spouse who makes the IRA contribution is an active participant in an employer-sponsored retirement plan, the income phase-out range is $90,000 to $110,000, up from $89,000 to $109,000. For an IRA contributor who is not an active participant in an employer-sponsored retirement plan and is married to someone who is an active participant, the deduction is phased out if the couple’s income is between $169,000 and $179,000, up from $167,000 and $177,000.

The AGI phase-out range for taxpayers making contributions to a Roth IRA is $169,000 to 179,000 for married couples filing jointly, up from $167,000 to $177,000 in 2010. For singles and heads of household, the income phase-out range is $107,000 to $122,000, up from $105,000 to $120,000. For a married individual filing a separate return who is an active participant in an employer-sponsored retirement plan, the phase-out range remains $0 to $10,000.

The AGI limit for the saver’s credit (also known as the retirement savings contributions credit) for low-and moderate-income workers is $56,500 for married couples filing jointly, up from $55,500 in 2010; $42,375 for heads of household, up from $41,625; and $28,250 for married individuals filing separately and for singles, up from $27,750.

Below are details on both the unchanged and adjusted limitations.

Section 415 of the Internal Revenue Code provides for dollar limitations on benefits and contributions under qualified retirement plans. Section 415(d) requires that the Commissioner annually adjust these limits for cost of living increases. Other limitations applicable to deferred compensation plans are also affected by these adjustments under Section 415. Under Section 415(d), the adjustments are to be made pursuant to adjustment procedures which are similar to those used to adjust benefit amounts under Section 215(i)(2)(A) of the Social Security Act.

The limitations that are adjusted by reference to Section 415(d) generally will remain unchanged for 2011. This is because the cost-of-living index for the quarter ended Sept. 30, 2010, while greater than the cost-of-living index for the quarter ended Sept. 30, 2009, is less than the cost-of-living index for the quarter ended Sept. 30, 2008, and, following the procedures under the Social Security Act for adjusting benefit amounts, any decline in the applicable index cannot result in a reduced limitation. For example, the limitation under Section 402(g)(1) on the exclusion for elective deferrals described in Section 402(g)(3) will be $16,500 for 2011, which is the same amount as for 2009 and 2010. This limitation affects elective deferrals to Section 401(k) plans, Section 403(b) plans, and the federal government’s Thrift Savings Plan.

Effective Jan. 1, 2011, the limitation on the annual benefit under a defined benefit plan under section 415(b)(1)(A) remains unchanged at $195,000. Pursuant to section 1.415(d)-1(a)(2)(ii) of the Income Tax Regulations, the adjustment to the limitation under a defined benefit plan under section 415(b)(1)(B) is determined using a special rule that takes into account that the cost-of-living indexes for the quarter ended Sept. 30, 2009, and for the quarter ended Sept. 30, 2010, were both less than the cost-of-living index for the quarter ended Sept. 30, 2008, and that the cost-of-living index for the quarter ended Sept. 30, 2010, is greater than the cost-of-living index for the quarter ended Sept. 30, 2009. For a participant who separated from service before Jan. 1, 2010, the participant’s limitation under a defined benefit plan under section 415(b)(1)(B) is unchanged (i.e., the adjustment factor is 1.0000). For a participant who separated from service during 2010, the limitation under a defined benefit plan under Section 415(b)(1)(B) for 2011 is computed by multiplying the participant’s 2010 compensation limitation by 1.0118 in order to reflect changes in the cost-of-living index from the quarter ended Sept. 30, 2009, to the quarter ended Sept. 30, 2010.

The limitation for defined contribution plans under Section 415(c)(1)(A) remains unchanged for 2011 at $49,000.

The Code provides that various other dollar amounts are to be adjusted at the same time and in the same manner as the dollar limitation of Section 415(b)(1)(A). After taking into account the applicable rounding rules, the amounts for 2011 are as follows:
The limitation under Section 402(g)(1) on the exclusion for elective deferrals described in Section 402(g)(3) remains unchanged at $16,500.

The annual compensation limit under Sections 401(a)(17), 404(l), 408(k)(3)(C), and 408(k)(6)(D)(ii) remains unchanged at $245,000.

The dollar limitation under Section 416(i)(1)(A)(i) concerning the definition of key employee in a top-heavy plan remains unchanged at $160,000.

The dollar amount under Section 409(o)(1)(C)(ii) for determining the maximum account balance in an employee stock ownership plan subject to a 5 year distribution period remains unchanged at $985,000, while the dollar amount used to determine the lengthening of the 5 year distribution period remains unchanged at $195,000.

The limitation used in the definition of highly compensated employee under Section 414(q)(1)(B) remains unchanged at $110,000.

The dollar limitation under Section 414(v)(2)(B)(i) for catch-up contributions to an applicable employer plan other than a plan described in Section 401(k)(11) or Section 408(p) for individuals aged 50 or over remains unchanged at $5,500. The dollar limitation under Section 414(v)(2)(B)(ii) for catch-up contributions to an applicable employer plan described in Section 401(k)(11) or Section 408(p) for individuals aged 50 or over remains unchanged at $2,500.

The annual compensation limitation under Section 401(a)(17) for eligible participants in certain governmental plans that, under the plan as in effect on July 1, 1993, allowed cost of living adjustments to the compensation limitation under the plan under Section 401(a)(17) to be taken into account, remains unchanged at $360,000.

The compensation amount under Section 408(k)(2)(C) regarding simplified employee pensions (SEPs) remains unchanged at $550.

The limitation under Section 408(p)(2)(E) regarding SIMPLE retirement accounts remains unchanged at $11,500.

The limitation on deferrals under Section 457(e)(15) concerning deferred compensation plans of state and local governments and tax-exempt organizations remains unchanged at $16,500.

The compensation amounts under Section 1.61 21(f)(5)(i) of the Income Tax Regulations concerning the definition of “control employee” for fringe benefit valuation purposes remains unchanged at $95,000. The compensation amount under Section 1.61 21(f)(5)(iii) remains unchanged at $195,000.

The Code also provides that several pension-related amounts are to be adjusted using the cost-of-living adjustment under Section 1(f)(3). After taking the applicable rounding rules into account, the amounts for 2011 are as follows:

The adjusted gross income limitation under Section 25B(b)(1)(A) for determining the retirement savings contribution credit for married taxpayers filing a joint return is increased from $33,500 to $34,000; the limitation under Section 25B(b)(1)(B) is increased from $36,000 to $36,500; and the limitation under Sections 25B(b)(1)(C) and 25B(b)(1)(D), is increased from $55,500 to $56,500.

The adjusted gross income limitation under Section 25B(b)(1)(A) for determining the retirement savings contribution credit for taxpayers filing as head of household is increased from $25,125 to $25,500; the limitation under Section 25B(b)(1)(B) is increased from $27,000 to $27,375; and the limitation under Sections 25B(b)(1)(C) and 25B(b)(1)(D), is increased from $41,625 to $42,375.

The adjusted gross income limitation under Section 25B(b)(1)(A) for determining the retirement savings contribution credit for all other taxpayers is increased from $16,750 to $17,000; the limitation under Section 25B(b)(1)(B) is increased from $18,000 to $18,250; and the limitation under Sections 25B(b)(1)(C) and 25B(b)(1)(D), is increased from $27,750 to $28,250.

The deductible amount under § 219(b)(5)(A) for an individual making qualified retirement contributions remains unchanged at $5,000.

The applicable dollar amount under Section 219(g)(3)(B)(i) for determining the deductible amount of an IRA contribution for taxpayers who are active participants filing a joint return or as a qualifying widow(er) is increased from $89,000 to $90,000. The applicable dollar amount under Section 219(g)(3)(B)(ii) for all other taxpayers (other than married taxpayers filing separate returns) remains unchanged at $56,000. The applicable dollar amount under Section 219(g)(7)(A) for a taxpayer who is not an active participant but whose spouse is an active participant is increased from $167,000 to $169,000.

The adjusted gross income limitation under Section 408A(c)(3)(C)(ii)(I) for determining the maximum Roth IRA contribution for married taxpayers filing a joint return or for taxpayers filing as a qualifying widow(er) is increased from $167,000 to $169,000. The adjusted gross income limitation under Section 408A(c)(3)(C)(ii)(II) for all other taxpayers (other than married taxpayers filing separate returns) is increased from $105,000 to $107,000.

The dollar amount under Section 430(c)(7)(D)(i)(II) used to determine excess employee compensation with respect to a single-employer defined benefit pension plan for which the special election under section 430(c)(2)(D) has been made is increased from $1,000,000 to $1,014,000.

Source: IRS.gov, IR-2010-108, 10/28/2010

A los 22 años, Nayhely Curiel se convirtió en madre soltera por elección y decidió que, a pesar de los obstáculos y desafíos, saldría adelante por ella y por su hijo. Hoy está a punto de graduarse en administración de hotelería y restaurantes, y ve el futuro con optimismo. Sin embargo, confiesa que “fue muy difícil”.

Curiel es madre soltera desde hace tres años y medio, cuando nació Jayden, quien actualmente asiste a un centro de cuidado infantil y por las noches es atendido por una niñera.

Esta joven madre de familia, quien se desempeña además como bartender y anfitriona en un hotel, dijo haber sentido el impacto de la recesión, por lo cual tuvo que mudarse de vuelta a la casa de su madre para ahorrar en el pago de la renta.

Curiel se encuentra entre las miles de mujeres latinas trabajadoras, jefas de su hogar, que conforman un segmento que experimentó un explosivo crecimiento desde 2000, según afirma el estudio “La situación de las mujeres trabajadoras, jefas de familia en la región de Chicago: Problemas, reflexiones, implicaciones”, elaborado por Malcolm Bush, del Chapin Hall de la Universidad de Chicago y encomendado por The Eleanor Foundation.

Más en los suburbios

Durante la presentación del estudio este martes en el centro de Chicago, se dio a conocer que en la región el crecimiento de hogares liderados por mujeres solas ha crecido más del doble desde 2000.

“Este crecimiento, particularmente explosivo entre los hogares liderados por latinas, no ha traído una gran prosperidad a estas familias. Muchas de estas mujeres padecen para mantenerse a pesar de que trabajan más y están mejor educadas que en el pasado”, dice el estudio.

“Lo más significantivo es que el número de hogares conducidos por madres solas trabajadoras que ganan entre $10,000 y $ 50,000 anuales, es decir de bajos ingresos, creció 18.5 por ciento entre 2000 y 2008, con un aumento notorio en las áreas metropolitanas”, dijo Bush, autor del estudio.

El resultado es que un tercio de los hogares, esto es 332,628 hogares conducidos por mujeres solas, vive hoy en la región de Chicago.

“Estos hallazgos reflejan la tendencia a nivel nacional y derriban la idea de que la independencia económica de las madres trabajadoras, solas y de bajos recursos, es un problema de las zonas marginadas”, dijo Rosanna Márquez, presidenta de la Eleanor Foundation.

Según María Pesqueira, directora de Mujeres Latinas en Acción, estos hallazgos le son familiares por que su organización está en permanente contacto con este segmento de latinas.

“Queremos abrir más oficinas más hacia el oeste de Cícero porque estamos viendo de dónde viene la mayor necesidad de servicios”, dijo.

Factor determinante

Según el reporte, el aumento en el costo de la vivienda, ya sea de renta o hipoteca, ubicó a muchas madres solteras trabajadoras en una situación de sufrimiento económico, a pesar de que muchas de ellas trabajan tiempo completo y mejoraron sus niveles educativos.

Una clara medida del sufrimiento económico que enfrenta una mujer, es que debe emplear un alto porcentaje de sus ingresos en el costo de la vivienda.

“En 2008, el problema se hizo más agudo en el área suburbana del Condado de Cook”, añade el reporte.

Las familias que gastan la mayor parte de sus ingresos en vivienda son forzadas a cortar el gasto en comida, ropa y cuidados de la salud, con pésimas consencuencias para la familia, en particular para los niños, según Bush.

Más latinas jefas del hogar

Entre 2000 y 2008 aumentó 75 por ciento el número de madres solteras latinas jefas de hogar en toda la región de Chicago.

“El crecimiento en Chicago fue del 34 por ciento, mientras que en el área suburbana del Condado de Cook el aumento fue del 113 por ciento”, dijo Márquez.

El 50 por ciento de madres solteras trabajadoras son nacidas en otro país, “lo que añade otras barreras como el lenguaje”, puntualizó.

Por Mercedes Fernández, DIARIO HOY, Chicago, 10/26/2010

On Oct. 19, 2010, President Obama signed a new executive order renewing the White House Initiative on Educational Excellence for Hispanics. This historic event demonstrates the president’s strong support for the critical role Hispanics play in the overall prosperity of the nation and highlights the Administration’s commitment to expanding education opportunities and improving education outcomes for all students.

Ms. Martee Pierson, Director of Diversity Programs for Liberty Tax Service, with Juan Sepulveda, Director of White House Initiative on Educational Excellence for Hispanics, at signing ceremony

New elements of the executive order place a high priority on action, such as:

- Working directly with communities nationwide in public-private partnerships, linking together key individuals and organizations from within and outside the education system to increase capacity and announce communitywide education initiatives.

- Establishing a Presidential Advisory Commission and national network of community leaders that will provide real-time input and advice on the development, implementation and coordination of education policy and programs that impact the Hispanic community.

- Forming a Federal Interagency Working Group to exchange resources and address issues impacting the lives of Hispanics nationwide, including housing, health, finance, employment and education, among others.

Participants in the invitation-only event included key Department and administration officials; Hispanic national and community leaders; elementary, middle, high school and college students; and parents. Ms. Martee Pierson, Director of Diversity Programs for Liberty Tax Service, attended the event and participated in the White House Initiative Educational Summit prior to the signing ceremony.

Thousands more individuals and groups nationwide watched the signing ceremony via www.whitehouse.gov. More than 25 community Watch Parties with wraparound activities were held in 20 states.

The U.S. Census Bureau reports that 36.7 million of the nation’s population (12 percent) were foreign-born, and another 33 million (11 percent) were native-born with at least one foreign-born parent in 2009, making one in five people either first or second generation U.S. residents.

The second generation were more likely than the foreign born to be better educated and have higher earnings and less likely to be in poverty. In 2009, 59 percent of the native-born 25 and older with at least one foreign-born parent had some college education and 33 percent had a bachelor’s degree. That compares with 45 percent of the foreign-born who had some college and 29 percent who had a bachelor’s degree.

“What these data show is that, generally speaking, income and other measures of achievement, such as education, increase between first and second generation,” said Elizabeth M. Grieco, chief of the Census Bureau’s Foreign-Born Population Branch. “This suggests that the children of immigrants are continuing to assimilate over
time as they have in past generations.”

Additionally, second generation Americans were less likely than the foreign born to have less than a high school degree; 12 percent of the second generation had less than a high school degree compared with 31 percent of the foreign-born population.

These findings are from the Current Population Survey Annual Social and Economic Supplement’s Foreign-Born Population of the United States: 2009, which provides a range of social and economic characteristics for the foreign-born population. This is the only Census Bureau data source that provides profiles of the foreign-born by generation.

Of those 15 years and older who worked full time and year-round, the second generation had higher median earnings ($42,297) in 2008 than the foreign-born population ($32,631). Likewise, the second generation tended to have overall higher earnings; 42 percent of the second generation earned $50,000 or more, compared with 31 percent of the first generation.

The second generation was also slightly less likely to be in poverty (16 percent) than the first generation (18 percent).

The foreign-born population represented 11 percent of the total population in 2000 and 12 percent in 2009, according to the Current Population Survey.

Among the foreign-born:

— More than half were born in Latin America, and almost one-third were born in Mexico.

— Nearly one in three entered the country in 2000 or later.

— More than half were noncitizens (58 percent).

— More were likely to be employed full time (75 percent) than the second-generation (69 percent).

The data from these tables are broken down by nativity, citizenship, year of entry, world region of birth and generation. The data represent the civilian noninstitutionalized population.

-X-

These data are from the Current Population Survey (CPS) from 2009. Statistics from surveys are subject to sampling and nonsampling error. For more information on the source of the data and accuracy of the estimates, including standard errors and confidence intervals, see Appendix G at .

“Much of the state of Oaxaca has managed to remain ethnolinguistically diverse, in part due to the force of over 300,000 residents who are monolingual in indigenous languages. The Zapotec word ‘Guelaguetza’ means ‘reciprocal exchanges of gifts and services,’ and implies an exchange of products and services, an age-old tradition of ‘paying it forward.’ Following each traditional pre-Columbian folk dance, the performers throw items to the crowd, products that come from the region they represent,” explains Martee Pierson, Director of Diversity Programs for Liberty Tax Service. Liberty Tax Service is a proud sponsor of Guelaguetza 2010.

This colorful festival will take place on Sunday, October 24th, from 11:00 a.m. to 5 p.m., in the University of Bakersfield Auditorium at 1901 Stockdale Highway, Bakersfield, California.

For more information, please call 661-778-9159.

¡Un evento educacional y cultural al cual no quiere faltar! La Unión Popular Benito Juárez cordialmente los invita a la celebración anual de la Guelaguetza 2010. ¡Participe en una de las celebraciones más coloridas de las Américas, desde Oaxaca, México! ¡Diviértase con las danzas y los vestuarios tradicionales; disfrute la comida deliciosa de diferentes regiones; vea artes y manualidades preciosas; escuche la maravillosa música folklórica; y conozca un poco más acerca de la vida y cultura indígena Oaxaqueña con representantes de las diferentes ocho comunidades!

“Mucho del estado de Oaxaca ha logrado mantenerse etnolingüísticamente diverso, en parte debido al gran movimiento de 300,000 residentes que son monolingües en idiomas indígenos. La palabra Zapoteca ‘Guelaguetza’ significa ‘un intercambio reciproco de regalos y servicios,’ e implica un intercambio de productos y servicios, una tradición de ‘dar hacia adelante’. Siguiendo cada danza tradicional pre-Colombiana, los bailarines ofrecen artículos a la audiencia, y éstos artículos provienen de la región que ellos representan,” explica Martee Pierson, la Directora de Programas de Diversidad para Liberty Tax Service. Liberty Tax Service es un auspiciador orgulloso de la Guelaguetza 2010.

Este festival colorido se llevará a cabo el domingo, 24 de octubre de 11:00 a.m. a 5:00 p.m., en el Auditorio de la Universidad de Bakersfield, ubicado en 1901 Stockdale Highway, en Bakersfield, California.

Para más información, por favor llame al 661-778-9159.

Members of Hermanas Latina each will donate $150 a year to the Tomorrow Fund for Hispanic Students, a fund at the Triangle Community Foundation that in its first grant cycle this year awarded $39,000 to help young Latinos attend college.

“Our mission is a lofty one,” says Diane Evia-Lanevi, founder of the Tomorrow Fund and a founding member of Hermanas Latina. “We’re working to change the playing field in North Carolina for Latino students from low-income families. Every child is our child and deserves an opportunity in life.”

The launch of the new effort was praised by keynote-speaker Teresa Rivero, who overseas education investments in the southeast for the Bill & Melinda Gates Foundation.

With half of Latinos dropping out of high school and only 12 percent graduating from college, Latino youth are at serious risk, says Rivero, particularly now that the economy has evolved to require higher-skills among workers.

“As Latinos, we are underprepared for the future,” she says. “Unless we prepare, we’ll fall farther and farther behind. We shouldn’t leave graduating from high school and going to college up to luck.”

As the child of Cuban immigrants, Rivero’s family struggled to put her through college and she considers herself lucky to have received grants and scholarships to make graduation possible.

The Tomorrow Fund and Hermanas Latina are innovative steps in making college a reality for the young Hispanics of today, she says.

“We must ensure that the next generation is secure and that that generation of young leaders have access to a quality education,” says Rivero. “We need to continue to be a strong voice in demanding a strong education for all. We need to remember the financial barriers that prevent Latinos from going to college. We need to remove those barriers.”

Helping ensure the success of future Hispanic students honors the sacrifice many families made in coming to the U.S., she says.

“So many of our families came to this country for the opportunity it affords us and we have the obligation to preserve that opportunity for future generations,” says Rivero.

Grants from the Tomorrow fund are awarded to North Carolina colleges and universities, which use the money to help students with college expenses, whether through scholarships or through help purchasing textbooks, computers or other necessities.

The first round of grants benefited students like Carla Mena, who came to the U.S. at age 11 and now is a junior at Meredith College majoring in biology.

Through the Tomorrow Fund grant, Meredith was able to provide the financial assistance Mena needed to stay in school, a boost she hopes can be extended to other young Latinos with college aspirations.

“A lot of these students know what they want to do and are very well educated, but because of a simple nine-digit number, they can’t do it,” she says. “Because of the Tomorrow Fund, I’m here and I can help others. I want to make sure that everyone has the opportunities I got.”

In addition to donating to the Tomorrow Fund, members of the Hermanas Latina giving circle members will have the opportunity to serve as a mentor, either to one of the student members of the circle, or to one of the students benefiting from a Tomorrow Fund grant.

Initially, the mentoring program will be conducted in partnership with Meredith, and mentors can choose a form of communication that best suits their style and schedule, says Angie Intriago, chair of Hermanas Latina.

By providing both financial and social support, the new giving circle aims to increase the chances that the next generation will have the means not only to attend, but to complete their college careers.

“College isn’t an easy thing,” says Intriago, “But it’s completely worth it.”

Source: Philanthropy Journal, Ret Boney | October 5, 2010

In the $49.7 million Developing Hispanic-Serving Institutions Program, 78 institutions will expand educational opportunities and improve the educational attainment of Hispanic students. Nearly $10.4 million awarded from the Promoting Postbaccalaureate Opportunities for Hispanic Americans Program will support 21 institutions that offer a postbaccalaureate certificate or degree to help Hispanic Americans enroll and succeed in graduate study, a level of education in which they are underrepresented.

“We can meet President Obama’s goal of having the highest college graduation rate in the world by 2020 only if we dramatically boost college completion rates among students of all races, ethnicities and income levels,” Duncan said. “These two programs make an important contribution toward that goal by ensuring that the institutions serving Hispanic students offer high quality programs and provide support services to help their students stay in school and succeed.”

Grants awarded under the Developing Hispanic-Serving Institutions Program fund activities such as faculty development, curriculum development, academic tutoring and mentoring, and construction and renovation of instructional facilities.

Under the Promoting Postbaccalaureate Opportunities for Hispanic Americans Program, Hispanic-serving institutions use their grant awards to provide outreach to students, including mentoring, scholarships or fellowships, and academic support services, purchase library materials and update educational technology, renovate classrooms, support faculty exchanges, and collaborate with other institutions of higher education to expand their degree offerings.

Both programs fund grants for a total of five years.

A Hispanic-Serving Institution is defined as an eligible institution of higher education that has at least 25 percent Hispanic full-time equivalent (FTE) undergraduate enrollment.

For more information go to < http ://www2.ed.gov/programs/idueshsi/index.html>

According to the poll:

- Seventy-seven percent of foreign-born Hispanic parents believe it will be easier for their children to find a good job vs. 31 percent of U.S.-born Hispanic parents.

- A greater number of foreign-born Hispanics believe it will be easier for their children to buy a house and raise a family compared to U.S.-born Hispanics.

The poll also found that many Hispanics are living in two worlds as it relates to retaining their ethnic identity and adapting to life in the U.S. While pursuing the American dream, Hispanics hold tight to their culture regardless of where they were born or the age they came to the U.S. Only 5 percent of Hispanics are unable to understand Spanish and only 6.2 percent cannot understand English. According to the survey:

- Foreign-born Hispanics are more likely to believe it’s important to blend into American society than U.S.-born Hispanics.

- U.S.-born Hispanics believe it is most important to maintain their distinct culture.

Source: hispanicad.com, 8/17/2010

Here are a few things the IRS wants you to know about recordkeeping.

Keeping well-organized records also ensures you can answer questions if your return is selected for examination or prepare a response if you receive an IRS notice. In most cases, the IRS does not require you to keep records in any special manner. Generally speaking, you should keep any and all documents that may have an impact on your federal tax return.

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

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

For more information about recordkeeping, check out IRS Publications 552, Recordkeeping for Individuals, 583, Starting a Business and Keeping Records, and Publication 463, Travel, Entertainment, Gift, and Car Expenses. These publications are available at IRS.gov or by calling 800-TAX-FORM (800-829-3676).

Source: IRS Summertime Tax Tip 2010-18, 8/16/2010, irs.gov

According to the poll:

- Ninety-percent of Spanish-dominant Hispanics watch some Spanish-language TV and 75 percent listen to Spanish-language radio each day.

- Among English-dominant Hispanics, nearly 4 in 10 said they consume either Spanish-language television or radio.

“The Univision-AP Poll on Media Consumption confirms that Hispanics who speak English and Spanish continue to choose Spanish-language TV and radio for culturally relevant content they can’t get anywhere else,” said Ceril Shagrin, Executive Vice President, Audience Measurement Innovation and Analytics for Univision Communications Inc. “Today’s findings reaffirm that Spanish-language media reaches 80 percent of all Hispanics in the U.S.”

On the interactive front, 57 percent of Spanish-dominant Hispanics have Internet access at home, of which 90 percent access Spanish-language sites.

The survey also found that English-speaking Hispanics are somewhat skeptical of English-language news and programs. Nearly 35 percent said English media portrayed Hispanics mostly in a negative way, nearly three times more than those who said it was mostly positive, and 50 percent said English media was neutral.

Source: Hispanicad.com, 8/12/10

Unauthorized immigrants comprise slightly more than 4% of the adult population of the U.S., but because they are relatively young and have high birthrates, their children make up a much larger share of both the newborn population (8%) and the child population (7% of those younger than age 18) in this country.

These figures are based on data from the U.S. Census Bureau’s March 2009 Current Population Survey, augmented with the Pew Hispanic Center’s analysis of the demographic characteristics of the unauthorized immigrant population using a “residual estimation methodology” it has employed for the past five years. (For a description, see Appendix B in the full report.)

The new Pew Hispanic analysis finds that nearly four-in-five (79%) of the 5.1 million children (younger than age 18) of unauthorized immigrants were born in this country and therefore are U.S. citizens.

In total, 4 million U.S.-born children of unauthorized immigrant parents resided in this country in 2009, alongside 1.1 million foreign-born children of unauthorized immigrant parents.

The 14th Amendment to the U.S. Constitution, adopted in 1868, grants an automatic right to citizenship to anyone born in the U.S. In recent weeks, a number of prominent elected officials have called for the repeal of birthright citizenship, which they argue serves as one of the magnets that attract undocumented immigrants to the United States. A nationwide survey by the Pew Research Center for the People & the Press in June found that, by 56% to 41%, the public opposes changing this provision of the Constitution.

This report does not address the merits of the birthright citizenship debate. Rather, it analyzes the family structure and parenting status of unauthorized immigrants. A follow-up Pew Hispanic Center report, expected to be released in several weeks, will examine trends in the size of the unauthorized population and key demographic characteristics, including its geographic settlement patterns; its countries and regions of origin; and its economic circumstances.

Read the full report at pewhispanic.org.

Source: Pew Hispanic Center, By Jeffrey S. Passel, Senior Demographer, and Paul Taylor, Director, 8/11/2010

Here are seven things the IRS wants you to know about the Nonbusiness Energy Property Credit:

1. The new law increases the credit rate to 30 percent of the cost of all qualifying improvements and raises the maximum credit limit to $1,500 claimed for 2009 and 2010 combined.

2. The credit applies to improvements such as adding insulation, energy-efficient exterior windows and energy-efficient heating and air conditioning systems.

3. To qualify as “energy efficient” for purposes of this tax credit, products generally must meet higher standards than the standards for the credit that was available in 2007.

4. Manufacturers must certify that their products meet new standards and they must provide a written statement to the taxpayer such as with the packaging of the product or in a printable format on the manufacturers’ Website.

5. Qualifying improvements must be placed into service after December 31, 2008, and before January 1, 2011.

6. The improvements must be made to the taxpayer’s principal residence located in the United States.

7. To claim the credit, attach Form 5695, Residential Energy Credits to either the 2009 or 2010 tax return. Taxpayers must claim the credit on the tax return for the year that the improvements are made.

Homeowners who have been considering some energy efficient home improvements may find these tax credits will get them bigger tax savings next year.

For more information on this and other key tax provisions of the Recovery Act, visit IRS.gov/recovery.

Source: IRS Summertime Tax Tip 2010-16, 8/11/2010, irs.gov

According to the poll:

- Sixty-two percent of Hispanics identify as Catholic. Among them, regardless of language preference, only 55 percent of young adults 18-29 identify as Catholic, compared to 80 percent of those 65 and older.

On the controversial same-sex marriage issue, the poll found:

- Thirty-one percent of Hispanics believe same-sex marriage should be allowed; 35 percent think it should not be allowed; and 28 percent believe it should not be allowed, but think same-sex individuals should be allowed to legally form a civil union.

On the issue of abortion, the poll found:

- Thirty-nine percent of Hispanics say abortion should be mostly legal. Among English-dominant Hispanics, 49 percent believe it should be legal in most cases. Among Spanish-dominants, only 31 percent say it should be mostly legal.

Source: Hispanicad.com, 8/10/10

1. The IRS does not initiate contact with a taxpayer by e-mail.

2. If you receive a scam e-mail claiming to be from the IRS, forward it to the IRS at phishing@irs.gov

3. Identity thieves get your personal information by many different means, including:
+ Stealing your wallet or purse
+ Posing as someone who needs information about you through a phone call or e-mail
+ Looking through your trash for personal information
+ Accessing information you provide to an unsecured Internet site.

4. If you discover a website that claims to be the IRS but does not begin with ‘www.irs.gov’, forward that link to the IRS at phishing@irs.gov

5. To learn how to identify a secure website, visit the Federal Trade Commission at www.onguardonline.gov/tools/recognize-secure-site-using-ssl.aspx

6. If your Social Security number is stolen, another individual may use it to get a job. That person’s employer may report income earned by them to the IRS using your Social Security number, thus making it appear that you did not report all of your income on your tax return.

7. Your identity may have been stolen if a letter from the IRS indicates more than one tax return was filed for you or the letter states you received wages from an employer you don’t know. If you receive such a letter from the IRS, leading you to believe your identity has been stolen, respond immediately to the name, address or phone number on the IRS notice.

8. If your tax records are not currently affected by identity theft, but you believe you may be at risk due to a lost wallet, questionable credit card activity, or credit report, you need to provide the IRS with proof of your identity. You should submit a copy of your valid government-issued identification – such as a Social Security card, driver’s license, or passport – along with a copy of a police report and/or a completed Form 14039, Identity Theft Affidavit. As an option, you can also contact the IRS Identity Protection Specialized Unit, toll-free at 800-908-4490. You should also follow FTC guidance for reporting identity theft at www.ftc.gov/idtheft.

9. Show your Social Security card to your employer when you start a job or to your financial institution for tax reporting purposes. Do not routinely carry your card or other documents that display your Social Security number.

10. For more information about identity theft – including information about how to report identity theft, phishing and related fraudulent activity – visit the IRS Identity Theft and Your Tax Records Page, which you can find by searching “Identity Theft” on the IRS.gov home page.

Source: irs.gov, Summertime Tax Tips 2010-11

1. If you get a bill this summer for late taxes, you are expected to promptly pay the tax owed including any penalties and interest. If you are unable to pay the amount due, it is often in your best interest to get a loan to pay the bill in full rather than to make installment payments to the IRS.

2. You can also pay the bill with your credit card. The interest rate on a credit card or bank loan may be lower than the combination of interest and penalties imposed by the Internal Revenue Code. To pay by credit card contact one of the following processing companies: Official Payments Corporation at 888-UPAY-TAX (also www.officialpayments.com/fed) or Link2Gov at 888-PAY-1040 (also www.pay1040.com) or RBS WorldPay, Inc at 888-9PAY-TAX (also www.payUSAtax.com).

3. You can pay the balance owed by electronic funds transfer, check, money order, cashier’s check or cash. To pay using electronic funds transfer you can take advantage of the Electronic Federal Tax Payment System by calling 800-555-4477 or online at www.eftps.gov.

4. An installment agreement may be requested if you cannot pay the liability in full. This is an agreement between you and the IRS to pay the amount due in monthly installment payments. You must first file all returns that are required and be current with estimated tax payments.

5. If you owe $25,000 or less in combined tax, penalties and interest, you can request an installment agreement using the Online Payment Agreement application at IRS.gov.

6. You can also complete and mail an IRS Form 9465, Installment Agreement Request, along with your bill in the envelope that you have received from the IRS. The IRS will inform you usually within 30 days whether your request is approved, denied, or if additional information is needed. If the amount you owe is $25,000 or less, provide the highest monthly amount you can pay with your request.

7. You may still qualify for an installment agreement if you owe more than $25,000, but a Form 433F, Collection Information Statement, is required to be completed before an installment agreement can be considered. If your balance is over $25,000, consider your financial situation and propose the highest amount possible, as that is how the IRS will arrive at your payment amount based upon your financial information.

8. If an agreement is approved, a one-time user fee will be charged. The user fee for a new agreement is $105 or $52 for agreements where payments are deducted directly from your bank account. For eligible individuals with incomes at or below certain levels, a reduced fee of $43 will be charged.

9. Taxpayers who have a balance due, may want to consider changing their W-4, Employee’s Withholding Allowance Certificate, with their employer. There is a withholding calculator available on IRS.gov to help taxpayers determine the amount that should be withheld.

Source: IRS Summertime Tax Tip 2010-15, 8/9/2010, irs.gov

In an unprecedented move to address the legal issues of Hispanics in the United States, the 400,000-member American Bar Association — under the new leadership of Stephen N. Zack, a Cuban-American lawyer from Miami — will announce Monday the creation of the Commission on Hispanic Legal Rights.