Steps to Be Effective in Networking Groups Part 2

Alright you came back for some more about word-of-mouth advertising. As you know this is one of the oldest and most powerful forms of marketing for the value you receive back from the time invested into it. In my opinion this is the best way to spend your hard earned dollars to advertise your business products and services.

Make sure you are organized and thoughtful about it as you are about other types of advertising and marketing you can do also. Here are the other 5 ways to be effective in networking groups.

1. When attending a business mixer, act like a host, not a guest. You are wasting your time at networking mixers if you stand around visiting with coworkers or others whom you already know rather than meeting new contacts and introducing them around. These networking meetings offer a great way to increase your visibility! The more visible you are the more your contacts will start to consider you a connector and contacting you about anything they may have a need for in their business and personal life. You can ask to be the ambassador or visitor host in the organizations to which you belong this will ensure you meet as many people as possible.

2. Invest time in developing a 60-second message about your business that explains what you do. Try to think of a Memory Hook — a brief, ear-catching phrase that so vividly describes what you do; this will help people will be able to visualize it in their mind. For example, my business name is Eagle Eye Accounting and my memory hook is “Keeping an Eye on Your Business Needs.” I also have a picture of an eagle that I had taken a picture of when I was stationed in Alaska where you can see the prominent eye on the card. When you meet new contacts, use your Memory Hook. Chances are this will help them remember you and what you do.

3. Connect with people outside of business meetings whenever possible. Drop notes, letters and articles that might be of interest to them in the mail. Call to check in with them or invite them to events you may be attending that might be of interest.

4. Monitor the referrals you give and receive. This tells you how often you are giving referrals and to whom. I use a excel tracking sheet I have set up to see what I have done and in the comments area I add additional information. Having this information helps you focus on helping people who have helped you in the past. The best way to receive a referral is to give twice as many as you want to receive. It sets up the reality of the “two-way street” nature of word-of-mouth marketing.

5. If you have the opportunity to distribute your materials to clients or at networking meetings, do it. Always bring brochures, newsletters and other information about your company and your products and services. Try to have your links listed on them to your company website (no brainer), Facebook, twitter, linked in and any other social media site that you may belong to. The more people can see, touch and hear things about your product and services, they’ll be more likely to use you or refer you to others.

You are potentially linked to an every expanding network that is way beyond your own location. If you could implement only two of the tactics above, you will receive benefits from that network. Next I will discuss how to networking during the holidays.

As always if you have any questions or comments please email me at rondazaragoza@gmail.com. I will try and reply to your question within 24-48 hours of receipt.

How to Be Effective in Networking Groups Part 1

Word-of-mouth advertising is one of the oldest forms of marketing. Some of us will ask our friends and family who they use for a particular item or service needed. While most real estate agents understand how to work the system many business owners do not know how they can use this powerful business tool.

To be successful at developing word-of-mouth referrals through networking groups, you should be organized. After all there are many other ways to advertize your business goods and services. You need to be thoughtful about it as you are because some can cost you thousands of dollars to be effective. Here are 5 ways to be effective in any networking group you are active in as your business grows.

1. Know how to ask for the referral. There are specific techniques you can learn and develop that will help you master your ability to ask for the referrals or business you want. The best technique is to ask “who do you know who...?” You would then list the types of people you can help, such as someone who is new to the area, someone recently divorced or who has just considering starting a business.

2. Diversify your networks. When joining various organizations, make sure you select a well-rounded mix of business groups in which to participate. These groups might be business referral groups, chambers of commerce, community service groups, and or trade associations. Try to avoid being in more than one group per category such as two chambers of commerce because this could divide your loyalties. This may put you in a position where you’ll be making promises to too many people.

3. Develop a creative incentive to encourage people to send referrals your way. A realtor here in New Mexico offers bottled wine as gifts to clients who give referrals. While some others provide gift baskets to recognize the efforts of those who have passed on business.

4. When attending meetings or other networking events, bring your networking tools with you. These include: an informative name badge, business cards and a business card carrying case to hold others’ cards.

5. Spend time developing your networking skills. Read business books and articles on networking, listen to tapes and talk to people who are always networking. Networking is an acquired skill. This is take time to become an expert at it since you are always learning new ways to network. I mean after all, Face book has been around less than 5 years and you can see many businesses are now using it as a social media tool to network and get the word out.

You are potentially linked to an incredible network beyond your own business because of word of mouth marketing. By implementing a few of these tactics above, you will receive benefits from that network. Maximize your opportunities by cultivating your networking relationships with others and you will see just how effective word-of-mouth advertising can be! Stayed tuned for part two of how to maximize you’re networking capabilities.

As always if you have any questions or comments please email me at rondazaragoza@gmail.com. I will try and reply to your question within 24-48 hours of receipt.

Branded Prescription Drug Sales Part 3 of 3

Information Requested from Covered Entities from Notice 2010-71

Annually, each covered entity should submit a Form 8947 and provide the information specified by the form and instructions. The designated entity for a covered entity described in section 9008(d)(2) submits a single form for the covered entity. A covered entity should submit a completed Form 8947 by December 15 of each year unless an alternative date is prescribed by the form or instructions. The Form 8947 information is return information subject to the confidentiality protections of section 6103.

Form 8947 solicits the following information from each covered entity:

1. For a single-person covered entity, the covered entity’s name, address, and employer identification number. For a covered entity described in section 9008(d)(2), the name, address, and employer identification number of the designated entity and each manufacturer or importer with gross receipts from the sale of branded prescription drugs that was included in the covered entity as of the end of the day on December 31 of the sales year.

2. All of the NDCs for branded prescription drugs in which the covered entity is identified in the labeler code as of the end of the day on December 31 of the sales year. For a covered entity described in section 9008(d)(2), this includes all NDCs in which a member of the covered entity is identified in the labeler code as of the end of the day on December 31 of the sales year.

3. The brand name and NDC for each orphan drug for which the covered entity was allowed a section 45C credit. For purposes of section 9008(e)(3), the credit was “allowed” for any particular drug if the covered entity claimed the credit and there has not been a final assessment or a court order disallowing the full credit taken for the drug. In addition, even if the credit has been allowed, a covered entity must not report an NDC for an orphan drug for any sales year following the calendar year in which the FDA approved the drug for marketing for any indication other than the treatment of the rare disease or condition for which the section 45C credit was allowed.

4. The rebates for each NDC paid in the sales year by the covered entity to Medicare Part D with respect to sales occurring in that sales year. For this purpose, a rebate is considered paid in the sales year if it is taken into account on the covered entity’s tax return(s) for the sales year. This information is needed for the 2009 sales year because, at this time, CMS does not have rebate data on branded prescription drug sales by NDC. However, starting in 2011, CMS is planning to collect this rebate information by NDC for the 2010 and subsequent sales years. It is therefore possible that covered entities will not report this rebate information for years following 2009.

5. The state supplemental rebates for each NDC paid in the sales year by the covered entity with respect to sales under Medicaid occurring in that sales year. For this purpose, a rebate is considered paid in the sales year if it is taken into account on the covered entity’s tax return(s) for the sales year. This information is needed because Medicaid data will not include state supplemental rebates.

Information Provided by the Agencies

The IRS will compile a list of branded prescription drugs by NDC using the data submitted on Forms 8947. Appropriate due diligence will be performed to check for potential oversights. For example, the IRS may use information published by the FDA identifying drugs for which applications were submitted under section 505(b) of the Federal Food, Drug, and Cosmetic Act. The IRS will provide the Agencies with the compiled list of branded prescription drugs.

For each year in which the fee is due, the Agencies will provide data to the IRS on the branded prescription drug sales during the sales year by Program and NDC. The calculation methodology for each Program, including any reasonable estimation techniques and assumptions that the Agencies expect to use, are described below.

1. Medicare Part D. Section 9008 requires CMS to report the product of the per-unit ingredient cost reported by Part D sponsors (net of any per-unit rebate or other price concessions) and the number of units for each branded prescription drug. CMS currently collects prescription level encounter data from Part D sponsors on the Prescription Drug Event (PDE) records. On the PDE records, Part D sponsors report the NDC, as well as the ingredient cost, dispensing fee, sales tax, and units. CMS will aggregate the ingredient cost reported in the “Ingredient Cost Paid” field and the units reported in the “Quantity Dispensed” field of the PDE records for Part D covered drugs.

These amounts will be aggregated at the NDC level for each sales year. Only PDE data that Part D sponsors have submitted by the PDE submission deadline (within 6 months after the end of the sales year) and have been approved for inclusion in the Part D payment reconciliation will be included.

2. Medicare Part B. First, for Healthcare Common Procedure Coding System (HCPCS) codes that consist solely and exclusively of branded prescription drugs (as identified by their respective NDCs) manufactured by a single entity, CMS will provide the total Medicare-allowed charges for the HCPCS code for the appropriate sales year.

Second, for HCPCS codes consisting of a mixture of branded prescription drugs made by different manufacturers or a mixture of branded prescription and generic drugs, CMS will determine: (i) the total Medicare-allowed charges for the HCPCS code for the appropriate sales year; (ii) the entities engaged in manufacturing each NDC assigned to the HCPCS code; and (iii) those entities (if any) that are manufacturing branded prescription drugs. CMS will then: (i) estimate the amount of Medicare-allowed charges for each manufacturer by applying the utilization percentage attributed to each manufacturer as determined under the Medicare Part B Program using manufacturer reported Average Sales Price sales data; (ii) multiply that percentage by the Medicare allowed charge for that HCPCS code; and (iii) assign the result to each manufacturer
within that HCPCS code.

Third, for the remainder of HCPCS codes that consist of multiple branded prescription drugs (as identified by their respective NDCs) manufactured by multiple entities that cannot be reliably calculated using the two methods above, CMS will determine: (i) the total Medicare-allowed charges for the HCPCS code for the appropriate sales year; (ii) the entities engaged in manufacturing each NDC assigned to the HCPCS code; and (iii) those entities (if any) that are manufacturing branded prescription drugs. CMS will then: (i) estimate the amount of Medicare-allowed charges for each manufacturer by applying the utilization percentage attributed to each
manufacturer as determined under the Medicare Part D Program; (ii) multiply that percentage by the Medicare-allowed charge for that HCPCS code; and (iii) assign the result to each manufacturer within that HCPCS code.

Thus, the amounts attributed to branded prescription drugs within the HCPCS code will be estimated. CMS will calculate the sum of these components to arrive at an estimate of Medicare Part B spending on branded prescription drugs for each manufacturer.

3. Medicaid. The branded prescription drug sales for Medicaid may be determined as the per-unit Average Manufacturer Price less the Unit Rebate Amounts (URA) that CMS calculates based on manufacturer-reported pricing data multiplied by the number of units reported billed by states to manufacturers. This data would be based on the data reported to Medicaid by covered entities and the states. CMS does not currently intend to reduce this calculation for state supplemental rebates.

4. Department of Veterans Affairs. VA will provide, by NDC, the total amount paid for each branded prescription drug procured by the VA for its beneficiaries. The basis of this information will be national procurement data reported by VA’s Pharmaceutical Prime Vendor to the VA Pharmacy Benefits Management Service and National Acquisition Center. This information will not include procurement data that resides exclusively at the individual medical treatment facility level.

5. Department of Defense. The DOD will provide, by Labeler Code, the manufacturer’s name, the NDC, brand name, and the amount paid (net of rebates) for each branded prescription drug procured by DOD. TRICARE Management Activity will provide, by Labeler Code, the manufacturer’s name, the NDC, brand name, and the amount paid (net of refunds or rebates) for each branded prescription drug procured by DOD through the TRICARE Retail Pharmacy Program.

Fee calculation

After receiving data from the Agencies and information from the covered entities, the IRS will calculate each covered entity’s branded prescription drug sales for each Program by NDC. A covered entity’s branded prescription drug sales for each Program will equal (i) the sum of all the covered entity’s branded prescription drug sales reported by the Program, less (ii) the sum of all branded prescription drug sales reported by the Program for each NDC for which the covered entity has appropriately claimed the orphan drug exclusion, less (iii) the sum of rebates reported by the covered entity on Form 8947 for the sales year.

After calculating the branded prescription drug sales for each Program, the IRS will calculate each covered entity’s branded prescription drug sales taken into account for purposes of the ratio set forth in section 9008(b)(1). A covered entity’s branded prescription drug sales taken into account for purposes of section 9008(b)(1)(A) will equal the sum of the covered entity’s branded prescription drug sales for all Programs reduced by the appropriate percentages set forth in section 9008(b)(2). The IRS will then calculate the aggregate branded prescription drug sales of all covered entities taken into account for purposes of section 9008(b)(1)(B), which is the sum of all the covered entities branded prescription drug sales taken into account for purposes of section 9008(b)(1)(A).

To determine each covered entity’s fee, the IRS will divide each covered entity’s branded prescription drug sales taken into account for purposes of section 9008(b)(1)(A) by the aggregate branded prescription drug sales of all covered entities taken into account for purposes of section 9008(b)(1)(B) and multiply that fraction by the applicable amount for the appropriate year as set forth in section 9008(b)(4).

Part II – Preliminary Fee Calculation for 2011

The IRS will use the proposed methodology described in Part I to provide each covered entity with a preliminary 2011 fee calculation. The notification of the preliminary fee calculation will include the following: (1) the covered entity’s fee; (2) the covered entity’s branded prescription drug sales, by NDC, for each Program; (3) the covered entity’s branded prescription drug sales taken into account after application of section 9008(a)(2); and (4) the aggregate branded prescription drug sales taken into account for all covered entities.

To facilitate the preliminary 2011 fee calculation, Form 8947 should be submitted to the IRS by January 20, 2011. From the data on the Forms 8947, the IRS will compile a list of NDCs and provide that list to the Agencies by March 1, 2011. The IRS will use the data submitted on the Forms 8947 and the sales data provided by the Agencies to calculate the preliminary fee and will send to each covered entity notification of its preliminary fee calculation by May 2, 2011.
If the IRS and Treasury Department subsequently promulgate regulations that modify the methodology for calculating each covered entity’s fee, the modified methodology will be adopted in determining the final fee amount for each covered entity for 2011. Thus, if the methodology changes, the amount of the final fee for 2011 may vary from the preliminary fee calculation. The IRS will send the final fee calculation to each covered entity by August 15, 2011.

As always if you have any questions or comments please email me at rondazaragoza@gmail.com. I will try and reply to your question within 24-48 hours of receipt.

Branded Prescription Drug Sales Part 2 of 3

Section 9008(a) imposes the fee on each covered entity engaged in the business of manufacturing or importing branded prescription drugs. Section 9008(d)(1) defines a covered entity as “any manufacturer or importer with gross receipts from branded prescription drug sales.” For purposes of section 9008(a), a manufacturer or importer is the person identified in the Labeler Code of the National Drug Code (NDC) for a branded prescription drug. The NDC is an identifier assigned by the Food and Drug Administration (FDA) to a branded prescription drug, as well as other drugs. The Labeler Code is the first five numeric characters of the NDC or the first six numeric
characters when the available five-character code combinations are exhausted.

Section 9008(d)(2) provides a controlled group rule under which all persons treated as a single employer under section 52(a), 52(b), 414(m), or 414(o) of the Internal Revenue Code (Code) shall be treated as a single covered entity.

For this purpose, a foreign entity subject to tax under section 881 is included within a controlled group under section 52(a) or 52(b). This controlled group rule will be applied as of the end of the day on December 31 of the sales year. All persons treated as a single employer under section 9008(d)(2) are jointly and severally liable for the fee. See section 9008(d)(3). In the case of a controlled group that is treated as a single covered entity under section 9008(d)(2), the controlled group must identify a single person as the “designated entity” that may act for the controlled group with respect to the section 9008 fee. If the controlled group, without regard to foreign corporations included under section 9008(d)(2)(B), is also an affiliated group that filed a consolidated return for federal income tax purposes, the designated entity is the common parent of the affiliated group as identified on the tax return filed for the sales year.

In all other situations, the controlled group must select a person as the designated entity on Form 8947, Report of Branded Prescription Drug Information1 (discussed further below), which is signed by the designated entity under penalties of perjury, stating that all the manufacturers or importers of branded prescription drugs who are members of the covered entity have consented to the selection of the designated entity.

Sales taken into account go to Section 9008(b) provides that the annual fee for each covered entity is calculated by determining the ratio of (i) the covered entity’s branded prescription drug sales taken into account during the preceding calendar year to (ii) the aggregate branded prescription drug sales taken into account for all covered entities during the same year, and applying this ratio to the applicable amount as specified in the statute. “Sales taken into account” means sales exclusive of certain orphan drugs and after application of the percentage adjustment table in section 9008(b)(2). Section 9008(b)(1) provides that the calculation of the fee in any given year is based on branded prescription drug sales in the immediately preceding calendar year.

1 The Office of Management and Budget approved Form 8947 under control number 1545-2192.
Section 9008(b)(3) provides that the Secretary of the Treasury shall determine the amount of each covered entity’s fee. In determining that amount, the Secretary may rely on reports submitted by the Agencies and any other source of information. Section 9008(i) also provides the Secretary with regulatory authority to carry out the purposes of the statute.

The IRS and Treasury Department have determined that, although the DOD and VA are expected to have complete data on branded prescription drug sales for the calendar year immediately preceding the fee year within the time frame necessary to administer the fee, CMS is not expected to have comparable data because it cannot complete its data processing within the necessary time frame. Accordingly, the IRS and Treasury Department will calculate the fee based on the branded prescription drug sales data provided by the Agencies for the second calendar year preceding the fee year. Because the use of the second preceding year, rather than the immediately preceding year, as the sales year may affect the amount of the fee paid by any
particular covered entity, the fee due in every year after 2011 will include an adjustment
amount.

An adjustment amount will be calculated for each NDC and will be added or subtracted, as appropriate, to the fee otherwise payable by the covered entity responsible for the NDC in the fee year in which the adjustment is calculated. The adjustment amount added or subtracted to the amount payable in a fee year will reflect the difference between the fee determined for the NDC in the immediately prior fee year, using data from the second calendar year preceding that fee year, and what the fee for that NDC would have been for the immediately prior fee year using data from the calendar year immediately preceding that prior fee year. For example, the amount due from a covered entity in the 2012 fee year will include an adjustment amount for each
NDC for which the covered entity is responsible in 2012 equal to the difference between
the 2011 fee associated with that NDC using 2009 data, and what the 2011 fee for that
NDC would have been using 2010 data.

To calculate the adjustment amount for an NDC, the IRS will first determine two
ratios: one based on data from the second preceding calendar year; and the other
based on data from the third preceding calendar year. In both cases, the numerator of
the ratio is the sales taken into account for the particular NDC during the relevant
calendar year, and the denominator of the ratio is aggregate branded prescription drug
sales taken into account for all NDCs during the relevant calendar year. For each NDC,
the IRS will then take the difference between the ratio using second preceding year data
and the ratio using third preceding year data and multiply that amount by the applicable
amount of the fee for the relevant fee year, as set forth in section 9008(b)(4), to determine an adjustment for the NDC. The adjustment amount for any particular NDC will then be added to, or subtracted from, as appropriate, the amount of the fee otherwise payable by the covered entity associated with the NDC for the fee year in which the adjustment amount is calculated.

For example, in 2012 the fee payable by each covered entity will consist of two components. First, the applicable amount for 2012 will be allocated to the covered entities based on sales data for 2010 (i.e., the second preceding calendar year).

Second, an adjustment amount will be calculated in 2012 for each NDC with respect to the 2011 fee year, by multiplying (i) the difference between the sales ratio determined using 2010 data and the sales ratio determined using 2009 data by (ii) the applicable amount of the fee for 2011. The adjustment amount for each NDC will then be added to, or subtracted from, as appropriate, the fee otherwise payable in 2012 by the covered entity associated with the NDC for the 2012 fee year.

The adjustment amount is applied only with respect to the amount of the fee otherwise payable by the relevant covered entity in the year in which the adjustment is calculated, and is not a refund, credit, or recalculation of a fee payable by any covered entity in any preceding fee year. In any given fee year, the amount assessed by the IRS will be based on data provided to it by the Agencies. The IRS does not intend to recalculate either the fee allocations or the adjustment amounts based on data that becomes available after those amounts are assessed.

The final article will be about the information requested from covered entities, information provided by the agencies and fee calculations.

As always if you have any questions or comments please email me at rondazaragoza@gmail.com. I will try and reply to your question within 24-48 hours of receipt.

Branded Prescription Drug Sales Part 1 of 3

Notice 2010-71

This notice provides guidance on the annual fee imposed on covered entities
engaged in the business of manufacturing or importing branded prescription drugs by
section 9008 of the Patient Protection and Affordable Care Act (ACA), Public Law 111-
148 (124 Stat. 119 (2010)), as amended by section 1404 of the Health Care and
Education Reconciliation Act of 2010 (HCERA), Public Law 111-152 (124 Stat. 1029
(2010)). All references in this notice to section 9008 are references to section 9008 of
the ACA, as amended by section 1404 of HCERA.

Part I of this notice describes a proposed methodology for calculating the section
9008 fee. Part II of this notice describes how the Internal Revenue Service (IRS) will
use this proposed methodology to provide each covered entity with a preliminary 2011
fee calculation. The IRS and Treasury Department intend that a covered entity’s
preliminary fee calculation for 2011 will serve as a basis for comments by the covered
entity on the proposed methodology. Part III of this notice solicits public comments on
all aspects of the notice.

Part I – Proposed Methodology for Calculating the Fee

Section 9008(b)(4) sets an applicable fee amount for each year, beginning with
2011, that will be allocated among covered entities with aggregate branded prescription
drug sales of over $5 million to specified government programs or pursuant to coverage
under such programs. Section 9008(e)(2) provides that “branded prescription drug”
means (i) any prescription drug the application for which was submitted under section
505(b) of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 355(b)), or (ii) any
biological product the license for which was submitted under section 351(a) of the
Public Health Service Act (42 U.S.C. 262(a)). The specified government programs are
the Medicare Part B program, the Medicare Part D program, the Medicaid program, any
program under which branded prescription drugs are procured by the Department of
Veterans Affairs, any program under which branded prescription drugs are procured by
the Department of Defense, and the TRICARE retail pharmacy program (collectively,
the Programs). The applicable fee amount is allocated among the covered entities
using a formula specified in section 9008(b) based on sales to the Programs, which
sales data is to be provided by the Centers for Medicare and Medicaid Services of the
Department of Health and Human Services (CMS), the Department of Veterans Affairs
(VA), and the Department of Defense (DOD) (collectively, the Agencies).

There are two years relevant to the calculation of the section 9008 fee – the
calendar year in which the fee must be paid (herein referred to as the fee year) and the
calendar year of the branded prescription drug sales, which will be used to determine
the amount of the fee (herein referred to as the sales year). As discussed more fully
below, the IRS and Treasury Department are proposing to use the second calendar
year preceding the fee year as the sales year for purposes of calculating the section
9008 fee. An adjustment amount will also be calculated as discussed below.
The next article will cover the definition of covered entities, sales taken into account and the adjustment methodology.

As always if you have any questions or comments please email me at rondazaragoza@gmail.com. I will try and reply to your question within 24-48 hours of receipt.

Are you Networking your Clients?

When we are out and about looking for new business we are usually networking with other business people in the community you need to make sure you build a very good relationship with them ahead of time. Some business owners really dread this type of marketing for their business. They would rather spend the money on print advertising or even pay through the nose for media advertising. Some people really think of this as work.

I think of it as net enjoy. You might say wow you are twisted!!. I laugh and say yes I am at different times of the year especially during tax season when sleep is an option. I am the type of person who likes to have everything set and organized but when it comes to networking to build my sales force and customers. I take my time to get to know the business owners to make sure I want to work with them and that we are a good fit for each other. I interview them just as if they were coming to work for me. I make sure they are not the type of a business that will want me to push it to the limit to where my ethics and license may be put on the line. If I ask them questions about some aspect of their business or personal life and they squirm with the answers then they might actually not be the right client for me and my business.

You might ask why do you spend the time interviewing them? Well I do this because during this process of networking I actual enjoy this time to start to build that relationship. I will be sure that once I perform an accounting or tax service for them that they will be on my sales team whether they know it or not. They will be so impressed with the service I give them that they want to give me a referral based on my relationship with them not just because of my ethics and integrity.

This process I start with them is based on Business Network International (BNI) VCP process in order to grow your business clients. I totally agree with this process and have built my business to 95 % of my business clients based on this networking technique. If you are ever in the State of NM and would like to visit with me please email I and we can schedule a time to chat.

As always if you have any questions or comments please email me at rondazaragoza@gmail.com. I will try and reply to your question within 24-48 hours of receipt.

A surprise tax cut for the (almost) rich

Are you worried about your taxes going up next year? They might for some high earners. But some not-quite-rich taxpayers could end up with a surprise tax cut.

If the Bush tax cuts expire for the nation's top earners, people making a pinch less than the wealthiest Americans, who don't quite qualify for the new top two tax brackets, could find themselves in an even lower bracket next year.

The White House says you’re wealthy if you make $250k a year. But what about cost of living?

"We should end up with a sweet spot in the middle of the higher income brackets," said Robert Kerr, senior director of government relations at the National Association of Enrolled Agents. "This is an unintended benefit of the new plan that many people don't realize."

The government is defining the wealthiest Americans as individuals with taxable income of more than $195,550, ($200,000 in adjusted gross income) and joint filers with taxable income over $237,300, ($250,000 in adjusted gross income).

These taxpayers could be hit with higher tax bills next year as the tax rates for the top two brackets return to pre-Bush administration levels of 36% from 33%, and 39.6% from 35%.

But under Obama's tax plan, the 28% income tax bracket would be widened. According to estimates from Congress's Joint Committee on Taxation, if your taxable income is between $171,850 and $195,550, you would fall into this "sweet spot" and be moved from the 33% tax bracket to the 28% bracket and could end up saving more than $1,000 a year.

Does $250,000 make you rich?

Say you're a single filer with a taxable income of $195,550, taking one personal exemption and a basic standard deduction.

In 2010 you fell into the 33% tax bracket and paid $49,648 in income taxes. But if Obama's tax plan is passed, you will drop down to the 28% tax bracket and will owe $48,310, resulting in a $1,338 tax savings.

That goes for joint filers too. Those with income between $209,250 and $237,300 will also move into the 28% bracket. So joint filers making $237,300 will owe $54,399 under Obama's plan, $1,691 less than the $56,090 they owed this year.

As always if you have any questions or comments please email me at rondazaragoza@gmail.com. I will try and reply to your question within 24-48 hours of receipt.

Obama’s Coming Tax Hikes Will Cripple the Economy

Rather than be in the middle of a “recovery summer,” the U.S. economy is still flat on its back. It’s likely to get worse after the first of the year, thanks to the tax hikes the White House is planning.

Americans for Tax Reform, a nonprofit taxpayers’ interest group, reports that the Obama administration, with the support of congressional Democrats, “have said they want to raises taxes in the top two income tax rates in January 2011.” Under their plan, the group says, the current 33 percent rate will automatically rise to 36 percent and the 35 percent rate will increase to 39.6 percent, negatively affecting families and small business owners earning at least $200,000 per year.

The impact of these tax increases will be felt throughout the economy but particularly in the small business sector, where much of the nation’s job creation comes during an economic recovery. The reason for this is:

1. Unlike corporations, small businesses usually don’t pay their own taxes. Rather, business profits flow through to the business owner. The business owner pays taxes on their small business by adding the profits to the personal income tax forms. Therefore, personal income taxes are the same thing as small business taxes.

2. According to the IRS, most small business profits pay taxes in households making more than $200,000 per year. The IRS keeps track of two types of small business income: sole proprietors, and “pass-through” entities like partnerships and S-corporations.

3. Mature small businesses make a majority of the profits and employ a majority of the workers. The Census Bureau reports that the top 3 percent of small businesses employ a majority of everyone who works for a small business. Raising taxes on these most successful of small businesses will cost jobs.

According to a number of estimates, a majority of U.S. small business profits will face a tax rate hike under the Obama plan. Instead of putting profits back into the business in the form of equipment updates, new hires, and expansion, the small businessmen and women who make up the backbone of our economy will be called upon to underwrite, in the name of “raising taxes on the rich,” Washington’s addiction to overspending

As always if you have any questions or comments please email me at rondazaragoza@gmail.com. I will try and reply to your question within 24-48 hours of receipt.

Tax preparers regroup after IRS moves to limit refund loans

A decision from the Internal Revenue Service last week is to stop providing taxpayer-debt profiles comes as brick-and-mortar tax preparers already are struggling to hold on to their ground against electronic services, such as TurboTax.

Without the so-called "debt indications" from government data, tax preparers and banks will find it more difficult to front controversial loans known as refund-anticipation loans, or RALs, which are secured by a filer's expected tax refund.
Tax preparers face additional hardship as their banking partners that back the RALs drop out of the business.

Shares of H&R Block Inc. have lost 37% this year, while Jackson Hewitt Tax Services Inc.'s stock is off more than 80%. TurboTax owner Intuit Inc. on the other hand, has seen its shares rise 26% this year.

The long road to recovery

While consumer groups hailed the IRS move earlier this month as a step toward ending a predatory-lending practice, national chains such as H&R Block and Jackson Hewitt won't easily exit the lucrative business and say the effort may even backfire with higher fees, hurting consumers.

In reaction to the decision on the taxpayer-debt profiles, Jackson Hewitt founder John Hewitt said that a portion of the 8 million to 9 million RAL customers will no longer qualify for loans without the government data available.

Those who do qualify will face steeper fees; Hewitt sees tax preparers charging $100 to $110 more, or about a 60% jump, in RAL prices.

What's missing from the IRS announcement is that 40% of RAL recipients don't have bank accounts; only those able to receive direct deposits get refunds back in 10 days.

H&R Block extended 2.1 million RALs in 2010, each with an average amount of $3,000 issued for 10 to 11 days. Each RAL costs about $62, or 2.1% of the loan amount.

Expensive loans

The RAL-related fees siphoned $738 million from 8.4 million American taxpayers in 2008. People who seek such advances are often the working poor who are strapped for cash.

RAL taxpayers receive money on the spot, as opposed to having to wait for a refund check in the mail. But this convenience comes at a hefty price and costs the very taxpayers who need the money in the end. As you notice the companies who offer these types of loans haven’t gone out of business by doing so. Maybe these companies could actually offer these types of loans as a free service to help those very tax payers who have been faithful customers that they have been making several hundred million dollars off of them. Does the president/company actually have to make that much money in one year; couldn’t they not take a pay increase while several hindered thousand taxpayers don’t have that option in today’s economy?

As always if you have any questions or comments please email me at rondazaragoza@gmail.com. I will try and reply to your question within 24-48 hours of receipt.

Six Tax Tips for Recently Married Taxpayers

Are you or have you gotten married this summer? If you recently got married or are planning a wedding, the last thing on your mind is taxes. However, there are some important steps you need to take to avoid stress at tax time. Here are six tips for newlyweds to keep in mind.

1) Notify the Social Security Administration Report any name change to the Social Security Administration, so your name and Social Security Number will match when you file your next tax return. Informing the SSA of a name change is quite simple.

2) File a Form SS-5, Application for a Social Security Card, at your local SSA office. The form is available on SSA’s website at www.socialsecurity.gov, by calling 800-772-1213 or at local offices.

3) Notify the IRS If you have a new address you should notify the IRS by sending Form 8822, Change of Address. You may download Form 8822 from IRS.gov or order it by calling 800–TAX–FORM (800–829–3676). Or you can always ask myself or your tax professional for assistance.

4) Notify the U.S.Postal Service You should also notify the U.S. Postal Service when you move so it can forward any IRS correspondence.

5) Notify Your Employer Report any name and address changes to your employer(s) to make sure you receive your Form W-2, Wage and Tax Statement, after the end of the year.

6) Check Your Withholding If both you and your spouse work, your combined income may place you in a higher tax bracket. You can use the IRS Withholding Calculator available on IRS.gov to assist you in determining the correct amount of withholding needed for your new filing status. The IRS Withholding Calculator will even provide you with a new Form W-4, Employee's Withholding Allowance Certificate, you can print out and give to your employer so they can withhold the correct amount from your pay.

As always if you have any questions or comments please email me at rondazaragoza@gmail.com. I will try and reply to your question within 24-48 hours of receipt.

Is Your Spouse on the Fast Track?

As many of you who know me, I am not one to mix words. The rule in my car is whoever is driving chooses the listening options. So when I am driving I have two staple choices, one is Earth, Wind and Fire and the other is the “Fast Track Networking Secrets” cd’s in the car at all times. Now of course I do have others in the car but those don’t leave the car. Since I don’t fly anywhere, I drive, I have to be at no matter where it is so I have almost memorized that cd’s.

My husband, Tony, also listens to them when we are in the car together and I am driving, as much as he didn’t want to in the beginning. I thought it was ironic since he is a high school football coach and teacher. Its football season now and we have been having two a days for over a week now. Since I am a wife of a football coach I end up volunteering a lot for the team doing different things needed. The other morning at 0430 we were at the field and of course the boys had a melt down and started to complain about having to do the “Wind sprints” again. Before I knew it I heard Ivan Misner’s story come out of Tony’s mouth about how they needed to make a choice about being winners in anything they do in the present and in their future. I thought wow he was listening to the cd’s.

You never know about what you listen to and how it can be used in any different situation you may be in your life or career. Tony told me afterwards that as much as he didn’t want to listen to the cd’s in the beginning; he was glad that we listened to them together because after he repeated Dr. Misner’s story almost exactly that the boys started to practice harder and he hopes they will follow through as the season progresses since the first game is next Friday.

If you have the Fast Track cd’s you may want to have your spouse listen to them also since you never know they may benefit from them also. If you don’t go to www.delfuego.com / and click on the BNI link to order them. Or you can ask me about the success we have seen here in NM with them and growing our businesses.

As always if you have any questions or comments please email me at rondazaragoza@gmail.com. I will try and reply to your question within 24-48 hours of receipt.

As always if you have any questions or comments please email me at rondazaragoza@gmail.com. I will try and reply to your question within 24-48 hours of receipt.

FILING CHARACTERISTICS AND EXAMINATION RESULTS FOR SMALL BUSINESS CORPORATE RETURNS

Highlights Final Report Issued on June 11, 2010

Highlights of Reference Number: 2010-30-067 to the Internal Revenue Service Commissioner for the Small Business/Self-Employed Division.

IMPACT ON TAXPAYERS

The Internal Revenue Service (IRS) examines income tax returns to determine whether corporations and other taxpayers have voluntarily complied with tax laws and reported the proper amount of tax. Despite continuing efforts to improve its examination process, Small Business/Self-Employed Division examiners closed almost 1 out of every 3 (32 percent) corporate return examinations in Fiscal Year 2009 without recommending any adjustments. Examinations that result in no change to the tax reported can result in an inefficient use of limited examination resources and place an unnecessary burden on compliant taxpayers.

WHY TIGTA DID THE AUDIT

The overall objectives of this review were to analyze IRS data for Fiscal Years 2005 through 2009 and to identify trends in the filings and audits of conventional small business corporate returns. This audit was part of our Fiscal Year 2010 Annual Audit Plan to highlight the important role a National Research Program study could have in understanding what the filings and audits of corporate returns mean for tax compliance. If approved and implemented, the National Research Program study would evaluate the extent to which corporations and their shareholders comply with the tax laws.

WHAT TIGTA FOUND

Between January 2005 and December 2009, the number of corporate returns processed annually by the IRS fell 7 percent, from almost 2.2 million to approximately 2 million. Despite the decrease in the number of filings, the amount of income taxes reported by corporate returns is significant. In Processing Year 2009, IRS records show that approximately $11 billion in corporate income taxes was reported from about 542,000 corporate returns.

One factor that may be contributing to the modest decline in corporate return filings is the popularity of organizing a business as a partnership or S corporation, which allows the partners and shareholders of these entities to avoid double taxation on business profits. According to the IRS, the number of partnership and S corporation filings is expected to increase by 49 percent and 39 percent, respectively, between 2006 and 2014.

IRS officials told us they are not permitted to set a target for the examination no-change rate. However, in 2003, the IRS reported to Congress that a high no-change rate means a significant amount of resources are being devoted to unproductive examinations, and compliant corporations are being unnecessarily burdened by examinations.

The results of the National Research Program study are expected to improve the IRS examination process by helping ensure the taxes on hundreds of billions of dollars of income earned by United States corporations are reported and paid properly. The statistical validity and comprehensiveness of the study is designed to provide the IRS with updated compliance data needed for deciding which corporate returns should be examined and how best to focus examination resources on the most significant areas of noncompliance.

WHAT TIGTA RECOMMENDED

Although TIGTA did not make any recommendations in this report, IRS officials were provided an opportunity to review the draft report. IRS management did not provide any comments on the draft report.

As always if you have any questions or comments please email me at rondazaragoza@gmail.com. I will try and reply to your question within 24-48 hours of receipt.

THE CRIMINAL INVESTIGATION DIVISION CAN TAKE STEPS TO ENSURE ITS SEIZURE OPPORTUNITIES ARE MAXIMIZED

Issued on June 18, 2010

Highlights of Report Number: 2010-30-058 to the Internal Revenue Service Chief, Criminal Investigation.

IMPACT ON TAXPAYERS

The use of asset forfeiture has become one of the most important tools that Federal law enforcement can employ against criminals, such as drug dealers and white-collar criminals. Law enforcement officers believe that the effective use of forfeiture laws can result in a decrease in criminal activity. Our review determined that the Criminal Investigation (CI) Division can take steps to ensure its seizure opportunities are maximized. The use of seizure and the ultimate forfeiture of assets deprive individuals, who knowingly violate the nation’s tax laws, of their ill-gotten gains.

WHY TIGTA DID THE AUDIT

The CI Division uses its asset seizure and forfeiture authority as a tool for combating unlawful activities designed to evade taxes. The overall objective of this review was to evaluate whether the CI Division adequately considered the seizure of assets during its illegal source and narcotics investigations.

WHAT TIGTA FOUND

There are opportunities for the CI Division to improve its Asset Forfeiture Program. During Fiscal Year 2009, the CI Division seized just more than 1,600 assets, which is a 13 percent decline from the previous year and a 28 percent decline from the six-year high in Fiscal Year 2007. The decline in the number of assets seized can be partly attributed to the decrease in the number of illegal source and narcotics investigations initiated during that period and the loss of experienced special agents in recent years. In addition, there was a significant disparity in the number of assets seized among the field offices.

TIGTA’s analyses of the CI Division’s management information system data indicated that the CI Division may have missed some seizure opportunities. TIGTA analyzed a sample of investigations with money laundering or bank structuring violations and found that requests to pursue seizure were made in only 34 percent of the investigations with the percentage of requests varying significantly among field offices.

While the CI Division may have missed some seizure opportunities, its Asset Forfeiture Program is respected by outside stakeholders and, when compared to other Federal agencies, its Program appears to be productive.

WHAT TIGTA RECOMMENDED

TIGTA recommended that the Chief, CI Division, require contractor employees to review the CI Division’s management information system reports to identify recently initiated narcotics and illegal source investigations where there is no corresponding seizure investigative activity and proactively engage the special agents in discussions regarding the identification of forfeitable assets. TIGTA also recommended that the Chief, CI Division, require contractor employees to periodically contact special agents to determine the status of the seizure and offer additional assistance. In addition, TIGTA recommended that the Chief, CI Division, conduct an internal study of narcotics and illegal source investigations, where the seizure of assets was not pursued, to determine if seizure opportunities were missed.

Internal Revenue Service (IRS) officials agreed with four of the five recommendations and disagreed with one. The CI Division did not agree with conducting an internal study but plans to ensure the appropriate management reviews are being performed. However, because TIGTA is precluded from reviewing case file information due to grand jury restrictions, TIGTA believes the CI Division would benefit from conducting this review because it would determine the extent of the issue and provide ideas for improvement.

As always if you have any questions or comments please email me at rondazaragoza@gmail.com. I will try and reply to your question within 24-48 hours of receipt.

New Mexico: Some firms must now e-file taxes

New Mexico trucking companies with two or more trucks and businesses that pay more than $20,000 a month in Combined Reporting System (CRS) taxes are now required to file their taxes online, the New Mexico Taxation and Revenue Department said.
The electronic filing can be done through a new Web site the tax department is offering. To find it, go online and click on the Online Services button, which will lead to a tutorial called “How to E-File Your CRS Tax.”

The affected companies are required to start filing their CRS taxes online by August 25 for the July 2010 tax period. The weight and distance taxes must be filed online by October 31 of this year. All other monthly filers will be phased in over the next year.

The requirement was brought about by 1995 legislation that authorized the department to require electronic filing. The department didn’t have the systems in place to do that until recently, it said.

Tax and Revenue Secretary Designate Duffy Rodriguez said that e-filing is “easy, fast, reliable and convenient.”

The department has launched a new campaign called E-file in Style to alert more than 146,000 monthly tax filers to the requirement to file online.

As always if you have any questions or comments please email me at rondazaragoza@gmail.com. I will try and reply to your question within 24-48 hours of receipt.

Snipes Goes to Jail for Tax Evasion

"Wesley Snipes Gets Three-Year Sentence For Tax-Evasion?

Action-hero, Wesley Snipes had better brush up on his 'Blade' martial arts skills, because word is, he's looking at three years in the big house for tax evasion. A federal appeals court in Atlanta upheld the three-year sentence issued by a lower court yesterday. Wesley Snipes was found guilty of not paying over $12 million in taxes between the years of 1999 and 2001. His attorneys argued that the sentence of 36 months was 'unreasonable' but the court responded

'The district court acted well within its considerable discretion in sentencing Snipes to thirty-six months in prison'


Wesley Snipes gets three years over taxes while the likes of T.I. and Lil Wayne get less than a year for stockpiling weaponry that could overtake a small country? So now who is the bigger risk?

As always if you have any questions or comments please email me at rondazaragoza@gmail.com. I will try and reply to your question within 24-48 hours of receipt.

New ways to raise taxes

Politicians aren't ready to admit that taxes are going up on most Americans. Here are some of the areas where governments will try to raise money. If you're hoping that tax hikes on the rich will solve America's debt crisis, you're sorely mistaken the power of the wealthy.

President Barack Obama's budget proposal would raise taxes on upper-income earners by $969 billion over the next 10 years, yet the federal debt would continue to bomb. To boost government revenue further, he'd raise an additional $122 billion from multinational companies, $90 billion from banks, $37 billion from oil companies and $24 billion from hedge funds and private-equity firms. All told, that's about $1.2 trillion. And it would barely make a dent. We'd still have huge deficits, and the national debt just keeps growing.

Taxing the rich will be one of the hot political stories this year. It will also divert attention from a much bigger story: Sooner or later, almost everybody in America is going to pay more in taxes.

One reason is that spending on Social Security, Medicare and Medicaid -- which equals 56% of all federal outflows -- continues to skyrocket, and cutting those programs, just as baby boomers begin to retire, would be political suicide. Few politicians in Washington want to cut defense, which leaves little else on the chopping block.

At least 35 states face their own budget shortfalls this year, with revenue in many states coming in below projections that were weak to start with, according to the National Conference of State Legislatures. When federal stimulus spending winds down in 2011, many states anticipate a "cliff effect," in which their revenues plunge. That means money will have to come from somewhere else, and there aren't enough rich people to provide all the funds.

"It's inevitable that the government will have to find a way to have a truly middle-income tax increase," says Clint Stretch of consulting firm Deloitte Tax. "The trick is, how?"

Politicians, of course, don't want to admit that most of their constituents face stinging tax hikes. And until there's no other choice, they'll try to raise funds without having to mouth the T-word. As federal, state and local governments get desperate, here are four of the mechanisms elected officials will try to use to raise funds without getting run out of office:

Expanding existing taxes

Raising income tax rates is so unpopular that most politicians consider it a last resort. Raising state and local sales taxes is a bit more tolerable, and it's even better if you're simply expanding a tax that already exists.
Some states, for example, could expand sales taxes to things not already covered, such as restaurant meals, salons, business services, Internet connections, and phone or cable TV service. It also makes sense to crack down on people evading existing taxes, by increasing the fines for late payments and underpayments, and conducting more inspections to catch merchants and others who may be skirting their obligations.

Avoidable taxes

A new levy is more palatable when politicians can make the case that you don't have to pay it if you choose not to.
Consumers might be able to offset new gasoline taxes, for instance, by driving less or buying more-fuel-efficient cars. Some states are mulling new energy or carbon taxes, with part of the pitch being that you can make up the difference by using less energy.

Then there are the classic "sin" taxes on cigarettes and booze, which are only for people with unhealthful habits -- and have already gone up in more than a dozen states, according to the National Conference of State Legislatures. One new "sin" that could end up taxed: junk food.

Online taxes

This is controversial, because it could force online merchants to figure out tax rates for thousands of localities. But New York and a few other states are trying to impose regular sales taxes on Internet purchases, to replace revenue lost when those transactions don't take place in a physical store. A legal challenge to the so-called Amazon.com tax is pending in a New York court, and if the government wins, more states are sure to follow up with their own Internet taxes.

Health care taxes

You'd think health care was already expensive enough, but at least nine states have upped taxes on hospitals and other providers over the past year, according to National Conference of State Legislatures. Of course, many of those added costs will be passed on to insurers, businesses and, ultimately, consumers.

As always if you have any questions or comments please email me at rondazaragoza@gmail.com. I will try and reply to your question within 24-48 hours of receipt.

Deadlines Extended for Certain Retirement Plans in Eight States

IR-2010-77, June 21, 2010

WASHINGTON — The Internal Revenue Service is providing administrative relief for sponsors of defined contribution plans, such as section 401(k) plans, that were affected by the storms and other severe weather in those counties in Alabama, Connecticut, Massachusetts, Mississippi, New Jersey, Rhode Island, Tennessee and West Virginia declared Presidential Disaster Areas during the period from March 1 through May 31, 2010.

Notice 2010-48 administratively extends to July 30, 2010, the April 30 deadline for restating affected pre-approved defined contribution plans and, if applicable, for submitting determination letters to the IRS, to July 30, 2010. The section 401(b) remedial amendment period for these retirement plans is also extended to July 30.
The relief provided by this notice is in addition to the statutory relief already provided by the IRS, under section 7508A of the Internal Revenue Code, to taxpayers affected by the federally declared disasters in these eight states during the period from March through May 2010.

The notice details the scope of the relief provided by this administrative action and further defines the conditions under which a plan qualifies as an affected plan. A plan is an “affected plan” only if any of the following locations relating to the plan were in the federally declared disaster areas at the time of the disasters:

1. The principal place of business of the employer that maintains the plan;
2. The principal place of business of the employer that employs more than 50 percent of the active participants covered by the plan;
3. The office of the plan or the plan administrator;
4. The office of the primary record keeper serving the plan; or
5. The office of any advisor that had been retained by the plan or the employer at the time of the storms or other severe weather that is directly involved with the adoption of the plan or the submission of a determination letter application to the IRS.

This relief applies to the following disaster situations:
Connecticut victims of March 2010 severe storms and flooding. See, News Release CT-2010-35, June 1, 2010.

Tennessee victims of April-May 2010 severe storms and flooding. See, News Release AL/TN-2010-56T, May 5, 2010.

Alabama victims of April 2010 severe storms and flooding. See, News Release AL/TN-2010-55A, May 4, 2010.

Mississippi victims of April 2010 severe storms, tornadoes and flooding. See, News Release LA/MS-2010-21, April 30, 2010.

New Jersey victims of March 2010 storms and flooding. See, News Release NJ-2010-32, April 5, 2010.

Massachusetts victims of March storms and flooding. See, News Release MA-2010-15, March 31, 2010.

Rhode Island victims of March storms and flooding. See, News Release RI-2010-11, March 31, 2010.

West Virginia victims of March storms and flooding. See, News Release WVA-2010-12, March 31, 2010.

As always if you have any questions or comments please email me at rondazaragoza@gmail.com. I will try and reply to your question within 24-48 hours of receipt.

IRS Provides Tax Help, Guidance to Gulf Oil Spill Victims; Special Assistance Day on July 17

IR-2010-78, June 25, 2010

The Internal Revenue Service (IRS) will be providing guidance to individuals and businesses affected by the oil spill in the Gulf of Mexico; it announced a number of new efforts to help affected taxpayers, including a special Gulf Coast Assistance Day on July 17. The IRS is closely monitoring the situation in the Gulf.

“This is a very difficult time for many people affected by the oil spill in the Gulf of Mexico. As residents of the region cope with the evolving situation, I want to assure them that the IRS will be doing everything it can to provide tax help to those who need it,” IRS Commissioner Doug Shulman said. “We encourage anyone who has an issue with the IRS to contact us and explain their hardship, and we will work with them to find a solution. We’ll do everything we can under current law to help taxpayers.”

The guidance released today is based on current law, and it explains how recipients of payments from BP should treat the payments for tax purposes. According to the current law, BP payments for lost income are taxable in the same way that the wages or business income these payments are replacing would have been. The law treats compensation for lost wages or income differently for tax purposes than compensation for physical injuries or property loss, which generally are nontaxable.

Every person can have unique financial circumstances, so the IRS encourages taxpayers to review their tax situation or talk with their tax preparers about the implications of payments or compensation from the oil spill.

To help people in the Gulf Coast area dealing with tax issues, the IRS also announced a special assistance day on July 17 in seven cities. Taxpayers and tax preparers will be able to work directly with IRS employees to resolve tax issues, including specific topics related to the oil spill. The IRS will hold the Gulf Coast Assistance Day in four states:

• Alabama: Mobile.
• Florida: Panama City and Pensacola.
• Louisiana: New Orleans, Houma and Baton Rouge.
• Mississippi: Gulfport.

Times and specific locations will soon be announced.

Taxpayers with problems related to the Gulf spill will soon be able to reach IRS personnel through an IRS toll-free telephone line. Specially trained IRS personnel will be available to help people with tax questions relating to the oil spill.

The IRS encourages taxpayers in the Gulf struggling with payment or collection issues to call the agency. The IRS continues to have a number of ways to help taxpayers dealing with oil spill issues or other economic hardship issues, including:

• The Taxpayer Advocate Service is available for those taxpayers experiencing issues with navigating the IRS.
• Postponement of collection actions in certain hardship cases.
• Added flexibility for missed payments on installment agreements and offers in compromise for previously compliant individuals having difficulty paying.
• IRS employees will be permitted to consider a taxpayer’s current income and potential for future income when negotiating an offer in compromise.
• Accelerated levy releases for taxpayers facing economic hardship.

As always if you have any questions or comments please email me at rondazaragoza@gmail.com. I will try and reply to your question within 24-48 hours of receipt.

Get the most from your written testimonials

Make it standard practice to ask clients and contacts for testimonials and you'll build your credibility and your business.
By Ivan Misner & Ronda Zaragoza

Written testimonials influence our actions and choices in a variety of ways, sometimes without our even thinking about them. For example: You and a friend decide to catch a movie, but your tastes don't always coincide. So you open the local paper and check out the film reviews. You decide you want to go to dinner first, but there are so many restaurants in your area that you don't know which one to pick. So you open up a local magazine and scan the recommendations of the magazine's food critic.

Even more powerful than these "professional" testimonials, however, are those that come from trusted personal contacts. If you have enough time, you might call or e-mail a couple of other friends to get their movie and restaurant suggestions. You're likely to follow their advice, too, because you know that they know your likes and dislikes pretty well.

So it is in business. Before people come to your firm for a particular product or service, they often want the comfort of knowing what others have said about you.
Let's say you refinish hardwood floors. Many consumers, before they let you haul your refinishing equipment into their house, will ask you for either written testimonials or phone numbers of people who can attest to your work.

You may even have experience with another form of testimonial: providing references when applying for a new job. Those references are expected to respond by written or spoken word about you and your work performance; quite frequently, a testimonial can clinch the job for you. That's a lot of weight riding on someone else's words.

Why Testimonials Increase Business

Testimonials carry a level of credibility because they come from someone who has direct experience with your product or service. Consumers generally place more trust in testimonials than they do in a business's marketing message. They believe that the average person is unbiased and has nothing to gain from providing a testimonial. The business stands to gain--or lose--everything, so its own words are seen as less trustworthy.

Recognizing consumers' skepticism, some businesses make a practice of asking for customer testimonials. Ditto for businesses that serve other businesses. If anything, a business can be an even more demanding customer than an individual consumer because it has its own reputation and ability to function at stake. Thus, a written testimonial on professional letterhead from one business to another is a powerful word in your favor, especially if the business represented on that letterhead is highly credible.

Displaying Testimonials

Written testimonials can be used in many ways to enhance your credibility and set you above your competition--on your business's website, for example. Some websites have them strategically sprinkled throughout so there's at least one testimonial on each page. Others have a dedicated page where a browser can view several testimonials at once. Either way, scan each testimonial to keep it with its letterhead. This will enhance its credibility--and yours.

If your business attracts a lot of walk-in clients, it's helpful to display your written testimonials, each encased in a plastic sheet protector, in a three-ring binder labeled "What our customers say about us" or "Client Testimonials." Keep this binder on a table in your reception area, where your customers can browse through it while they're waiting for services. It's a good way to connect with your prospects and enhance your relationship with clients. We are even now starting to use this same binder approach with our Business Network International (BNI) Champions chapter to show our visitors and guests the type of top quality professionals we have in our networking group.

Another way to stand out from the competition is to include testimonials with your business proposals. This strategy works best if you have a wide variety to choose from; you can include a section of testimonials that are most relevant to a specific proposal.

Asking for Testimonials

Make it standard practice to ask clients (or other contacts) for testimonials. At what point in the sales cycle should you ask? This is a tricky question, but in general, don't ask for any testimonial before it's time--which may be before, during, or after the completion of a sale or project, depending on your client, your product or service, and your own needs.

Let's say that one month before finishing a project, you call your client to ask how things are going. The client tells you she's very happy with the results and that her life or business has changed for the better because of your product or service. At this point, your testimonial detector should be pinging loudly. It's the right time to make your pitch: "That would be a great thing for other people to know about my company. Would you be willing to write me a testimonial on your company letterhead by the end of the week?" If the answer is yes, the next step is to coach your client in writing a testimonial that fits your needs.

Guiding the Content

Ask your client to tell why she chose to work with you, how she benefited from your products or services, how you solved a problem for her, and what other people should know about your business. What things are most people concerned about when using a business like yours? Ask her to address those issues. Don't be afraid to offer suggestions; you'll make it easier for her to write an appropriate testimonial, and the result will be more valuable for you.

Updating Your Testimonials

Finally, review your testimonial file or binder at least every two to three years to identify testimonials that are no longer valid or credible. Specifically, you may want to discard or re-file a testimonial that:
• Is from a company that's no longer in business
• Is/was written by someone who has left the company
• Represents a product or service that you no longer offer
• Has begun to turn yellow with age
• Needs to be updated with new statistics from the customer

Now that you understand what testimonials can do for your business, try asking for three written testimonials on company letterhead this week. Make it easy for your advocates--specify what you would like their testimonials to cover, based on what you know of their satisfaction or successes from using your product or service. Ask for them to be typed on company letterhead, signed and submitted by a certain date.

One more thing: Remember the law of reciprocity. If you want to truly motivate someone to write you a testimonial, write one for him or her first.

As always if you have any questions or comments please email me at rondazaragoza@gmail.com. I will try and reply to your question within 24-48 hours of receipt.

Get the most from your written testimonials

Make it standard practice to ask clients and contacts for testimonials and you'll build your credibility and your business.
By Ivan Misner & Ronda Zaragoza

Written testimonials influence our actions and choices in a variety of ways, sometimes without our even thinking about them. For example: You and a friend decide to catch a movie, but your tastes don't always coincide. So you open the local paper and check out the film reviews. You decide you want to go to dinner first, but there are so many restaurants in your area that you don't know which one to pick. So you open up a local magazine and scan the recommendations of the magazine's food critic.

Even more powerful than these "professional" testimonials, however, are those that come from trusted personal contacts. If you have enough time, you might call or e-mail a couple of other friends to get their movie and restaurant suggestions. You're likely to follow their advice, too, because you know that they know your likes and dislikes pretty well.

So it is in business. Before people come to your firm for a particular product or service, they often want the comfort of knowing what others have said about you.
Let's say you refinish hardwood floors. Many consumers, before they let you haul your refinishing equipment into their house, will ask you for either written testimonials or phone numbers of people who can attest to your work.

You may even have experience with another form of testimonial: providing references when applying for a new job. Those references are expected to respond by written or spoken word about you and your work performance; quite frequently, a testimonial can clinch the job for you. That's a lot of weight riding on someone else's words.

Why Testimonials Increase Business

Testimonials carry a level of credibility because they come from someone who has direct experience with your product or service. Consumers generally place more trust in testimonials than they do in a business's marketing message. They believe that the average person is unbiased and has nothing to gain from providing a testimonial. The business stands to gain--or lose--everything, so its own words are seen as less trustworthy.

Recognizing consumers' skepticism, some businesses make a practice of asking for customer testimonials. Ditto for businesses that serve other businesses. If anything, a business can be an even more demanding customer than an individual consumer because it has its own reputation and ability to function at stake. Thus, a written testimonial on professional letterhead from one business to another is a powerful word in your favor, especially if the business represented on that letterhead is highly credible.

Displaying Testimonials

Written testimonials can be used in many ways to enhance your credibility and set you above your competition--on your business's website, for example. Some websites have them strategically sprinkled throughout so there's at least one testimonial on each page. Others have a dedicated page where a browser can view several testimonials at once. Either way, scan each testimonial to keep it with its letterhead. This will enhance its credibility--and yours.

If your business attracts a lot of walk-in clients, it's helpful to display your written testimonials, each encased in a plastic sheet protector, in a three-ring binder labeled "What our customers say about us" or "Client Testimonials." Keep this binder on a table in your reception area, where your customers can browse through it while they're waiting for services. It's a good way to connect with your prospects and enhance your relationship with clients. We are even now starting to use this same binder approach with our Business Network International (BNI) Champions chapter to show our visitors and guests the type of top quality professionals we have in our networking group.

Another way to stand out from the competition is to include testimonials with your business proposals. This strategy works best if you have a wide variety to choose from; you can include a section of testimonials that are most relevant to a specific proposal.

Asking for Testimonials

Make it standard practice to ask clients (or other contacts) for testimonials. At what point in the sales cycle should you ask? This is a tricky question, but in general, don't ask for any testimonial before it's time--which may be before, during, or after the completion of a sale or project, depending on your client, your product or service, and your own needs.

Let's say that one month before finishing a project, you call your client to ask how things are going. The client tells you she's very happy with the results and that her life or business has changed for the better because of your product or service. At this point, your testimonial detector should be pinging loudly. It's the right time to make your pitch: "That would be a great thing for other people to know about my company. Would you be willing to write me a testimonial on your company letterhead by the end of the week?" If the answer is yes, the next step is to coach your client in writing a testimonial that fits your needs.

Guiding the Content

Ask your client to tell why she chose to work with you, how she benefited from your products or services, how you solved a problem for her, and what other people should know about your business. What things are most people concerned about when using a business like yours? Ask her to address those issues. Don't be afraid to offer suggestions; you'll make it easier for her to write an appropriate testimonial, and the result will be more valuable for you.

Updating Your Testimonials

Finally, review your testimonial file or binder at least every two to three years to identify testimonials that are no longer valid or credible. Specifically, you may want to discard or re-file a testimonial that:
• Is from a company that's no longer in business
• Is/was written by someone who has left the company
• Represents a product or service that you no longer offer
• Has begun to turn yellow with age
• Needs to be updated with new statistics from the customer

Now that you understand what testimonials can do for your business, try asking for three written testimonials on company letterhead this week. Make it easy for your advocates--specify what you would like their testimonials to cover, based on what you know of their satisfaction or successes from using your product or service. Ask for them to be typed on company letterhead, signed and submitted by a certain date.

One more thing: Remember the law of reciprocity. If you want to truly motivate someone to write you a testimonial, write one for him or her first.

As always if you have any questions or comments please email me at rondazaragoza@gmail.com.

12 Taxes in Health Care Law

As many as a dozen taxes in the new health care law violate President Barack Obama’s campaign pledge not to raise taxes on families earning less than $250,000 and on individuals earning less than $250,000. This we all knew would be a really hard thing to keep as a promise and now we see the president wasn’t able to keep this promise.

At least seven of these taxes directly affect health consumers regardless of income, such as the individual mandate to buy insurance, the employer mandate, the tanning tax, and limits and penalties on health savings accounts. In addition, Republicans argue that the tax impact of the law should include indirect taxes, such as the annual taxes on the health care sector that will be passed on to consumers.

On many occasions during the 2008 presidential campaign, candidate Barack Obama pledged that, if elected, he would ensure that Americans earning less than $250,000 a year would not see a federal tax increase of any kind. ,

“I can make a firm pledge. Under my plan, no family making less than $250,000 a year will see any form of tax increases,” the Illinois senator told a crowd in Dover, N.H. on Sept. 12, 2008. “Not your income tax, not your payroll tax, not your capital gains taxes, not any of your taxes.” This is going to be probably not the case for many of our citizens.

“If your family earns less than $250,000 a year, you will not see your taxes increased a single dime. I repeat: not a single dime,” the president said.

The bulk of the $500 billion in tax increases in the new health care law targets households earning $250,000 and individuals earning $200,000 -- for example, the increase in the Medicare payroll tax. But many of the taxes hit the general public at large.

The individual mandate, for example, will require all legal U.S. residents to purchase a government-approved health insurance plan beginning in 2014. Once the reconciliation bill is voted on in the Senate to amend the law signed by Obama this week, the individual mandate will require a single person to pay 2.5 percent of their income or $695 if they do not purchase health insurance.

Generally, a single person making $30,000 or more will have to pay a 2.5 percent penalty if they do not carry health insurance. A person making less than $30,000 will have to pay $695. This penalty/tax is found in Section 1501 of the bill for “requirement to maintain minimum essential coverage.

The government will also mandate that employers provide health insurance for their employees. This mandate would include small businesses with revenues below $250,000 per year. If the employer does not provide health insurance, the business will have to pay a tax of $750 for each full-time employee. For the employer who requires a waiting period of 30-to-60 days, there is a $400 tax per employee and $600 per employee if the business takes longer than 60 days to comply. This is found in Section 1513 of the bill for “shared responsibility for employers.”

Under the new law, Americans would not be able to use pre-tax dollars from health savings accounts (HSA), flexible spending accounts (FSA), or health reimbursements accounts (HRA) to buy over-the-counter non-prescription medicines. This measure takes effect in 2011 and is supposed to bring in $5 billion dollars. This is found in Section 9003 of the law, under “Distributions for medicine qualified only if for prescribed drug or insulin.”

“Many of us expected the president would violate his pledge,” Boustany told CNSNews.com. “HSAs and FSAs are a prime example. There are other adjustments we will find as we dig into this law. The more the American people see, the more they will find how the amount of tax increases affects them personally.”

Further, the law increases the tax from 10 percent to 20 percent for non-medical early withdrawals from a health savings account for those under the age of 65. This measure takes effect in 2011 and is estimated to increase revenues by $1.3 billion. This is under Section 9004, “Increase in additional tax on distributions from HSAs and Archer MSAs not used for qualified medical expenses.”

Beginning in 2011, the government will impose a cap of $2,500 on FSAs, which are now unlimited, as a means of raising $14 billion in revenue. This is under Section 9005, “Limitation on health flexible spending arrangements under cafeteria plans.”

Those seeking a tan without catching natural rays will find a new 10-percent excise tax on using indoor tanning salons. The tax, estimated to raise $2.7 billion, will take effect in July. This is under Section 10907, “Excise tax on indoor tanning services in lieu of elective cosmetic medical procedures.”

Now, medical expenses that exceed 7.5 percent of a person’s adjusted gross income can be deducted for tax purposes. But the new law raises that deduction threshold to 10 percent of adjusted gross income, meaning fewer tax deductions for someone with high medical costs. This provision starts in 2013 and is supposed to raise $15.2 billion in revenue. This is under Section 9013, “Modification of itemized deduction for medical expenses.”

The law also imposes a 40-percent tax on high-cost insurance plans reaching $10,200, but exempts union members unless the cost of their plan reaches $27,500. This is called the “Cadillac tax.” This tax is actually on the insurer. This goes into effect in 2018 and is estimated to raise $32 billion in revenue.

There is also a tax on insured and self-insured health plans for a patient-centered outcomes research trust fund. Boustany called this a slush fund for the Department of Health and Human Services to dole out grants.

The government estimates it will bring in $107 billion in revenue from new taxes on insurance companies, drug manufacturers and medical device manufacturers. These are three separate indirect taxes that will be passed on to consumers, Republicans contend.

“The annual tax on drug manufacturers and device makers will all be passed along to the consumer,” Rep. Cynthia Lummis (R-Wyo.) told CNSNews.com. “The high-cost plan will encourage some employees to join a union to get a 40-percent discount.”

“Frankly, you can say any tax is going to affect consumers. We didn’t need to really stretch to include too many other things,” ATR tax policy analyst Ryan Ellis told CNSNews.com. “We have seven that were pretty clear violations of President Obama’s pledge not to raise taxes on these people. The one you always hear people bring up is the Cadillac excise tax. That’s not a tax on people, that's a tax on the insurance company. We’ve never asserted that that is a tax [on consumers] because frankly it isn’t. We don’t need to make that argument because there are seven that clearly are.”

Just before signing the bill into law, President Obama said, “And this represents the largest middle-class tax cut for health care in our history.”

Obama signed the bill on Tuesday, Ways and Means Committee Chairman Sander Levin (D-Mich.) said in a statement that the law provides tax credits for four million small businesses.

“Today, in the greatest of American traditions – opportunity and community – we enacted a law that will improve the overall health of our citizens and the overall well-being of our nation,” Levin said in the March 23 statement. “This legislation was the product of generations of hard work, driven by the personal stories of so many who have suffered from a lack of health insurance and the devastation of rising health care costs.”

I have taken some of the quotes from the CNSnews.com article published on March 25th.

As always if you have any questions or comments please email me at rondazaragoza@gmail.com. I will try and reply to your question within 24-48 hours of receipt.

Washington House Democrats detail $760 million tax plan

State House Democrats want to raise about $760 million in taxes by shrinking a long list of tax exemptions and collecting more money from smokers, lawyers, accountants and out-of-state businesses.

State House Democrats want to raise about $760 million in taxes by shrinking a long list of tax exemptions and collecting more money from smokers, lawyers, accountants and out-of-state businesses.

The plan, announced Monday, is the latest of three proposals from state leaders as they seek to bridge a $2.8 billion budget deficit.

Debate over the tax plans now heads into high-pressure negotiations with Democratic Gov. Chris Gregoire and the Senate's majority Democrats, with just 10 full days left in the 2010 legislative session.

The House proposal is nearer to the laundry-list approach favored by Gregoire. It does not include a general sales tax increase, which was a central part of the Senate's tax blueprint.

"Our focus was on removing exemptions and closing loopholes," said House Finance Committee Chairman Ross Hunter, D-Medina. "This approach makes sure everyone is doing their fair share in helping our state get back on its feet."

The package also was tailored with an eye toward surviving a challenge in the fall elections. If they're unable to scuttle it during the legislative session, tax hike opponents could file a ballot initiative to give voters the final say.

Gregoire gave the House approach a positive review Monday, repeating her criticism that a general sales tax increase could hurt Washington.

"While I know we have to raise revenue, I want to do it in a way that doesn't jeopardize our recovery," she told a news conference.

The House plan does, however, significantly broaden the sales tax base by eliminating about $205 million in exemptions on cstom software, candy and gum, bottled water, janitorial services and plastic surgery - with an exception for medically needed reconstructive procedures.

Residents of other states also would lose the ability to waive Washington sales tax on purchases made here. The tax currently is 6.5 percent, although local governments add their own levies, pushing the rate above 9 percent in the most expensive areas.

The House plan also raises about $247 million by overhauling parts of the tax code. Another $73 million comes from altering how out-of-state businesses are taxed - aimed mostly at credit-card issuers, banks and other financial firms.

A laundry list of other exemptions and preferences would be closed or downsized, accounting for roughly $174 million, including breaks on the interest which banks collect for first mortgages, and investments by nonfinancial firms, with exemptions intended to help smaller companies.

Only two pieces of the House plan appear to be straight-ahead hikes: An extra $1 per-pack tax on cigarettes, and a temporary 0.5 percent increase in the business taxes paid by certain service professionals, including lawyers, consultants and accountants.

Since House leaders earlier said they wanted enough revenue to pay for nearly $860 million in programs, their revenue plan also counts on an additional $100 million to be transferred into the general fund from the state construction budget and lottery proceeds.

The Legislature's overall budget plans also rely on hundreds of millions of dollars in spending cuts, federal aid and one-time accounting fixes. Those figures will be worked out in negotiations - the House's budget proposal called for about $650 million in cuts, the Senate's roughly $830 million.

Republicans have staunchly opposed the Democratic drive for higher taxes, saying the majority hasn't done enough to downsize government and cut state worker compensation.

"These tax increases will lead to more layoffs and further delay employers from hiring back workers," said Rep. Ed Orcutt, R-Kalama. "Also, it will further erode the ever-decreasing buying power of low- and middle-income families."

Democrats respond that they closed a $9 billion deficit last year without general tax increases, and they must raise some taxes while cutting spending.

As always if you have any questions or comments please email me at rondazaragoza@gmail.com. I will try and reply to your question within 24-48 hours of receipt.

IRS Issues Winter 2010 Statistics Of Income Bulletin

The Internal Revenue Service today announced the release of the winter 2010 issue of the Statistics of Income Bulletin, featuring data on: preliminary 2008 individual income taxes, 2007 marginal income tax rates and 2007 sales of capital assets.

Taxpayers filed 142.4 million individual income tax returns for 2008, which was 0.5 percent fewer than the 143.0 million returns filed for 2007. Adjusted gross income (AGI) also declined between 2007 and 2008, falling by 3.7 percent to $8.2 trillion. This was the first time since 2002 that AGI decreased from the previous year. Also between 2007 and 2008, taxable income decreased 5.1 percent to $5.6 trillion, total income tax decreased by 6.2 percent to $1.0 trillion, and total tax liability fell by 6.0 percent to just under $1.1 trillion.

Individual income tax returns reporting a tax liability in 2007 faced an average tax rate of 13.8 percent, the same as in 2006. Taxpayers with AGI of at least $410,096, the top 1 percent of taxpayers, accounted for 22.8 percent of AGI in 2007, an increase of 0.8 percentage points. These taxpayers accounted for 40.4 percent of total income tax reported in 2007, an increase from 39.9 percent in the previous year.

For 2007, taxpayers realized $914.0 billion in net capital gains less losses, reported on 283.1 million asset transactions with overall sales of $5.3 trillion. Passthrough income represented the largest share of net gains less losses, followed by corporate stock.

This issue of the SOI Bulletin also contains articles on the following subjects:

Projections: A grand total of 238 million tax returns are expected during calendar year 2010.This is 1 percent fewer than estimated 2009 filings of 240.4 million returns.The primary cause is the residual effect of the Economic Stimulus Act of 2008, which in 2009 produced an estimated 14.4 million returns above baseline projections.Grand total return filings are projected to reach 253.6 million by 2016.

Foreign recipients of U.S. income: U.S.-source income payments to foreign persons rose to $646.5 billion in 2007.Foreign corporations received $472.0 billion (73.0 percent) of the total, while foreign governments and international organizations collected the next largest share, $41.9 billion (6.5 percent).Foreign partnerships and foreign trusts (3.0 percent) and foreign individuals (2.7 percent) received a combined $37.0 billion in gross income.

Split-Interest trusts: The Pension Protection Act of 2006 brought major revisions to the Split-Interest Trust Information Return for 2007.All split-interest trusts must now disclose the names of charities that receive distributions and the amount and type of distribution.Income from charitable lead trusts and pooled income funds is reported on this return, rather than on Form 1041.Information not pertaining to individuals is now open to the public.In 2008, 123,498 returns were filed; 94 percent were filed for charitable remainder trusts.

Unrelated business income tax: Charitable and other tax-exempt-organizations reported $11.3 billion in gross unrelated business income for 2006, offset by $10.0 billion in deductions.The resulting net unrelated business taxable income totaled $1.3 billion, which is 6 percent higher than for 2005.These organizations reported unrelated business income tax for 2006 of $556.2 million.

Interest-Charge Domestic International Sales Corporations: IC-DISC export gross receipts increased by 266 percent from 2004 ($5.3 billion) to 2006 ($19.3 billion). Net income (less deficit) rose from $448 million to $1.7 billion, and actual distributions to shareholders increased 317 percent, from $433 million to $1.8 billion.

As always if you have any questions or comments please email me at rondazaragoza@gmail.com. I will try and reply to your question within 24-48 hours of receipt.

Five Tips About the First-Time Homebuyer Credit Documentation Requirements

Claiming the First-Time Homebuyer Tax Credit on your 2009 tax return might mean a larger refund but it can seem complex. Are you confused about the documentation requirements? The IRS recognizes that the settlement documents can vary from location to location, so here are five tips to clarify the documentation requirements.

Settlement Statement: Purchasers of conventional homes must attach a copy of Form HUD-1 or other properly executed Settlement Statement.

Properly Executed Settle Statement: Generally, a properly executed settlement statement shows all parties' names and signatures, property address, sales price and date of purchase. However, settlement documents, including the Form HUD-1, can vary from one location to another and may not include the signatures of both the buyer and seller. In areas where signatures are not required on the settlement document, the IRS encourages buyers to sign the settlement statement when they file their tax return -- even in cases where the settlement form does not include a signature line.

Retail Sales Contract: Purchasers of mobile homes who are unable to get a settlement statement must attach a copy of the executed retail sales contract showing all parties' names and signatures, property address, purchase price and date of purchase.

Certificate of Occupancy: For a newly constructed home, where a settlement statement is not available, attach a copy of the certificate of occupancy showing the owner’s name, property address and date of the certificate.
Long-Time Residents: If you are a long-time resident claiming the credit, the IRS recommends that you also attach documentation covering the five-consecutive-year period such as Form 1098, Mortgage Interest Statement or substitute mortgage interest statements, property tax records or homeowner’s insurance records.

As always if you have any questions or comments please email me at rondazaragoza@gmail.com. I will try and reply to your question within 24-48 hours of receipt.