From Governor McDonnell’s Office: 

Gov. McDonnell announced Tuesday that more than 2 million low- and moderate-income Virginia taxpayers the opportunity to prepare and electronically file their 2011 federal and state income tax returns for free this tax season.  

VA Free File is modeled after the highly successful Internal Revenue Service Free File program used by millions of taxpayers since 2003 to e-file their federal income tax returns for free.  Free File lets taxpayers who meet certain eligibility criteria, including an income threshold, e-file their state and federal tax returns for free online using commercial tax-preparation software.  Free File supports the Virginia 760 form for residents, the 760PY form for part-year residents, and the 763 form for non-residents. 

McDonnell said that a ”fraction of those who qualified for free tax-return preparation and e-filing of their federal and state returns took advantage of Virginia’s new Free File program.”

McDonnell also said that taxpayers who earned less than $57,000 or less in adjusted gross income go to the tax department’s website to see if they qualify for free file. 

“Most taxpayers who don’t qualify for VA Free File can still file their taxes online for free beginning this year by using the tax department’s new Free Fillable Forms program,” states a release from McDonnell’s office. “In January, Virginia became the first state to offer Fillable Forms that can be filed online.”

Article Sources: McDonnell: Over 2 Million Taxpayers Can Prepare, File Taxes Free

As some of you will have noticed, the Daily Journal has taken a step forward in the digital universe into the “Twitterverse.” We’ve also stepped up our interactions on our Facebook wall – and we encourage you all to go to the wall and “like” us (please don’t “friend” us on the home page, go to the wall and hit “like” instead) and keep up with us – and your friends and neighbors – there as well as on our web site.

All of us in the newsroom are Tweeting more now. Here’s where you can follow us:

@KCMeadows1

@TiffanyRevelle (county reporter)

@JustFrederiksen (city reporter)

@UdjJeff (our news assistant, he’ll provide morning updates when there’s breaking news)

@udjKelly (our community and arts expert)

@thiswasnews (Jody Martinez, our history guru)

@JoeLangstaff (our local sports guy)

@udjbrian (our photographer)

We’re all new at this so we’re finding out how to do this as we go. For instance, we got some advice that we should copy all our Tweets to the Facebook wall. So we tried doing that, but then got more advice that people who interact on Facebook don’t want Tweets coming through on a regular basis, that it gets too annoying, so we stopped. Sometimes we’ll put something up on Facebook that we have Tweeted, but mostly we’ll try to have different stuff on each of those platforms. Because of its shorter and more concise nature we will likely be Tweeting more than posting on Facebook but we will be doing more of both, so check it out.

A reader in Potter Valley called last week to remind us all that the phone scam where a person – usually a senior citizen – gets a frantic call from a grandson or granddaughter requesting money to get out of jail or pay for emergency room treatment is back in circulation. She got one a week or so ago and was able to shut it down right away since she knew exactly where her grandson was at the time. But many seniors are frightened by these calls and even end up sending off money to crooks.

Blood Bank of the Redwoods and Blood Centers of the Pacific have established the Blood Bank of the Redwoods Legacy Funds at Community Foundation Sonoma County and at the Community Foundation of Mendocino. Each fund is structured as an endowment and will provide funding for a variety of community health programs.

 Blood Bank of the Redwoods, a locally founded and managed blood center in Sonoma, Lake, and Mendocino Counties, continues to give back to its community even now after being acquired by neighboring Blood Centers of the Pacific in 2011. With net proceeds of $2.2 million, both boards of directors have structured the endowments so that the money will be returned to the communities BBR served through the support of more than one million blood donations and hundreds of thousands of transfusions in its 63 year history.

 Blood Bank of the Redwoods Board of Directors recognized over the last decade the dramatic changes in regional health care and made developing a strategy for the future delivery of blood services their highest priority. As stewards of the community blood center the directors began the search for blood services that would be sustainable through the next several decades of health care change, such as escalating costs and consolidation of hospitals. The intent was to find an organization that could seamlessly take over services, had familiarity with the region, had long-term viability and would dedicate itself to BBR’s donors, patients and hospitals. The Board of Directors chose Blood Centers of the Pacific to do just that.

The Community Foundations in Sonoma and Mendocino counties will be the stewards of the endowments along with representatives from our communities and Blood Centers of the Pacific who will review and recommend grants to be distributed, in the name of Blood Bank of the Redwoods, to qualified local projects and programs.

 The Blood Bank of the Redwoods Legacy Funds were designed to offer grants in the area of blood banking, transfusion medicine, health and wellness and to fund research in related fields. The BBR Legacy Fund at Community Foundation Sonoma County will also support programs in Lake County.

Mendocino County residents have been blood donors and have received blood at their hospitals almost from the beginning. “We have always had a strong blood donor base up here in Mendocino County. The foundation is grateful to receive a portion of the proceeds and I know there are worthy local programs that will benefit from the endowment for many years to come,” commented Community Foundation of Mendocino board president, Jim Mayfield.

 Blood Centers of the Pacific, formerly known as Irwin Memorial Blood Centers, helped the local founders establish the Sonoma County Community Blood Bank, later known as Blood Bank of the Redwoods, in 1948.  It seems fitting and natural for the two centers to become one in 2011.

The Community Foundation of Mendocino County exists to retain and build philanthropic resources that will strengthen Mendocino County communities over time. The Community Foundation has a variety of giving vehicles that allow donors to personalize their giving and provides stewardship for funds in a way that creates a lasting legacy.

The California Integrated Waste Management Board has once again named Save Mart Supermarkets as one of the winners of the 2011 Waste Reduction Award in recognition for green business practices.

Every year California businesses and nonprofits are encouraged to showcase their voluntary waste reduction, recycling, and resource conservation efforts by applying for recognition in the California Department of Resources Recycling and Recovery (CalRecycle) Waste Reduction Awards Program (WRAP). The WRAP program was established in 1993 and honors California businesses and nonprofit organizations for demonstrating innovation and leadership in waste prevention, recycling and composting, procurement, and education within their business practices.

Now in its 18th year, WRAP has honored Save Mart Supermarkets and its stores ­ Save Mart, S-Mart Foods, Lucky, and FoodMaxx ­ every year since 2000. According to the CIWMB, 280 California businesses and nonprofit organizations were recognized for their innovative, environmentally-friendly programs and policies. The 2011 honorees collectively diverted more than 2.3 million tons of materials from local landfills through aggressive resource management, recycling, and waste reduction, and reported more than $200 million in cost savings.

“We are pleased that our continuing efforts to reduce, reuse, and recycle have once again been recognized by the State of California,” said Steve Gaines, Senior Director for Retail Efficiencies at Save Mart Supermarkets. “We actually close the loop by composting our organic waste, which we package and sell at our stores and donate for use in state, local, and neighborhood landscape improvement projects.”

Save Mart Supermarkets operates 230 stores throughout Northern California and Northern Nevada under the Save Mart, S-Mart Foods, Lucky, Maxx Value Foods, and FoodMaxx banners. The privately-held company was founded January 17, 1952 and has always been headquartered in Modesto, California.

U.S. wine exports, 90 percent from California, reached a new record of $1.39 billion in winery revenues in 2011, an increase of 21.7 percent compared to 2010. Volume shipments were up 5.8 percent to 455.7 million liters or 50.6 million nine-liter cases. 

“The quality, diversity and value of California wines have propelled us to another record year for wine exports,” said Robert P. (Bobby) Koch, Wine Institute President and CEO.  “Our success in removing trade barriers and opening new markets as well as significant marketing investments by our wineries will allow us to reach our goal of $2 billion in exports by 2020.”

“Our global Discover California Wines campaign with its link to California’s iconic and aspirational lifestyle resonates with consumers, media and trade throughout the world,” said Linsey Gallagher, Wine Institute’s International Marketing Director. ”We have significantly increased our focus on and investment in the China market over the past year in this top priority market.  Our goal is to connect the lifestyle that is associated with our state with the understanding of California as a world class wine producing region.”

“Wine Institute’s work with the U.S. government and key international organizations such as the World Wine Trade Group, the Asia-Pacific Economic Cooperation and FIVS continues to have a valuable impact in facilitating trade.  Export growth in 2011, however, reinforces the need to continue eliminating unreasonable trade barriers, particularly in the Pacific Rim where wineries are burdened by protectionist tariffs and duplicative regulations costing Asia-Pacific economies close to $1 billion per year,” said Wine Institute’s International Trade Policy Director Tom LaFaille.

Thirty-four percent of U.S. wine exports by value were shipped to the 27-member countries of the European Union, accounting for $478 million of the revenues, up 10 percent from 2010.  Volume shipments to the EU reached 28 million cases in 2011, edging up 1.4 percent from the previous year.  Other top markets were: Canada, $379 million, up 23 percent; Hong Kong, $163 million, up 39 percent; Japan, $105 million, up 39 percent; and China, $62 million, up 42 percent.

“California wines continue to grow in popularity with both trade and consumers in the Canadian market,”according to Rick Slomka, Wine Institute Trade Director for Canada. ”Some of the recent growth comes from new brands with eye-catching labels and clever names.  Also contributing to this growth is the ongoing strength of the Canadian dollar which has made California wines more competitive compared to wines from other major wine regions.  Our continued success with premium wines in the Quebec market and in LCBO VINTAGES, indicates that Canadian consumers see good value in California at all price points,” said Slomka.

“In a challenging economy, the UK wine market does not stand still, and new sectors and opportunities have arisen.  California has been responsive to these, and has built on the bedrock of its major branded wines with successes in the independent retail sector and on-trade outlets.  Growth in these areas introduces our wines to new audiences, and enables California to demonstrate its diversity at higher price points.  This growth is by no means exhausted, and augurs well for the future here,” said John McLaren, Wine Institute Trade Director for the United Kingdom. 

“California wines fared well in most European countries.  In Sweden for instance, sales growth of California wines were the highest of all wine supplying countries in Sweden.  The story was similar in Germany, where California again experienced the highest growth rate of all wine exporting countries.  However, a significant portion of California wine imported into Germany is re-exported and actually sold in other European markets.  Additionally, as a word of caution, the 10 percent change in the Euro/Dollar exchange rate of the past few months may have an effect on exports to Europe in early 2012,” said Paul Molleman, Wine Institute’s Trade Director for Continental Europe.

“The outlook in the world’s emerging wine markets remains positive as most markets continued to post strong gains in 2011.  Hong Kong remained California’s third largest export market by value, although growth slowed to 39 percent from 150 percent in 2010 compared to 2009.  China’s growth remained buoyant at 42 percent compared to 2010 and is now the fifth largest export market by value, up two places from last year.  Vietnam posted the strongest year-over-year gains (+266 percent) among the top 25 markets.  Elsewhere, there is significant optimism in South Korea due to the recent ratification of the Korea-U.S. Free Trade Agreement and in Mexico where the 20 percent import tax on California wines was repealed in late October 2011,” commented Eric Pope, Wine Institute’s Regional Director, Emerging Markets. 

“U.S. bulk wine exports to Japan have been growing as major Japanese importers are now importing popular-priced California wine brands in bulk and bottling in Japan.  This reduces the burdensome import duty to a certain extent and makes inventory control easier.  As per bottled U.S. wine, Japan is now importing more expensive California wines than in the past.  Unlike other new world wine exporting countries, California wine is well represented at high-end restaurants because of our successful annual restaurant promotion,” reported Wine Institute Trade Director in Japan, Ken-ichi Hori. 

Since 1985, Wine Institute has served as the administrator of the Market Access Program, an export promotion program managed by the USDA’s Foreign Agricultural Service.  For more information, see: wineinstitute.org.

Now that most Californians have received their tax materials and are getting ready to file their 2011 personal income tax returns, the Board of Equalization wants to remind taxpayers not to forget to include the “use tax” they owe on purchases made from out-of-state online and mail order retailers, or purchased from an out-of-state retailer and brought back into California. 

(Yeah, right.)

 To help make the reporting process more convenient, the BOE, working with the California Franchise Tax Board, has made available an easy-to-read reference guide, the Use Tax Lookup Table. Californians will find the table included in the instructions that accompany tax Forms 540, 540A, and 540 2EZ, and on the BOE website at boe.ca.gov/pdf/2011UseTaxTable.pdf, providing a simple way to estimate use tax, based on California Adjusted Gross Income, on any number of non-business purchases less than $1,000 each.

 What is “use tax”?

In its simplest form, it is tax due on any item bought from an out-of-state retailer that will be “used” in California that if purchased in the state would have been subject to sales tax. Generally, the use tax rate is equal to your local sales tax rate.

 While all Californians have an obligation to pay use tax, the revenue it generates for the state and local communities helps to fund important services all Californians enjoy, such as public safety, education, and transportation.

 Use tax is not an “internet tax”.  It has been on the books since 1935 to protect in-state retailers from the competitive price disadvantage held by out-of-state retailers who do not collect California tax. 

Use Tax Lookup Table CA Adjusted Gross Income (AGI) Range

Use Tax Liability

 Less Than $20,000 – $7

$20,000 to $39,999 – $21

$40,000 to $59,999 – $35

$60,000 to $79,999 – $49

$80,000 to $99,999 – $63

$100,000 to $149,999 – $88

$150,000 to $199,999 – $123

More Than $199,999 – Multiply AGI by 0.070 percent (0.0007)

 The Use Tax Look-Up Table is estimated to bring in $10.6 million annually, and the BOE says is an important tool to help close California’s $1.1 billion use tax gap.

 For more information on sales and use tax rates, visit boe.ca.gov/sutax/pam71.htm, or call us at 800-400-7115.

Assemblymember Wesley Chesbro, chairman of the Legislature’s Joint Committee on Fisheries and Aquaculture, has released the final agenda for the 39th Annual Fisheries Forum, scheduled for Wednesday, Feb. 22, from 9:30 a.m. to 5 p.m. in Room 4202 of the state Capitol. It includes a panel on the effects of marijuana growing on local watersheds.

The California Channel (calchannel.com) will webcast the entire forum live, and archive the broadcast at its website.

On the agenda are:

Agency Updates ­ Priorities for 2012

Charlton Bonham ­ Director, Department of Fish and Game

Sonke Mastrup ­ Executive Director, Fish and Game Commission

Rod McInnis ­ Regional Administrator, National Marine Fisheries Service

Committee Reports

California Advisory Committee on Salmon and Steelhead Trout ­ Vivian Helliwell

California Salmon Stamp Committee ­ Mike Ricketts

California Dungeness Crab Task Force ­ Mike Cunningham

California Sea Urchin Commission ­ Tom Trumper/Bob Bertelli

Aquaculture Development Committee ­ Tony Schuur

Ocean Science and Monitoring

Dean Wendt Ph.D. ­ SLOSEA, Center for Coastal Marine Sciences, CPSU

Dave Rudie ­ San Diego Oceans Foundation

Tuna/Herring/Abalone

Wayne Heikkila ­ Western Fishboat Owners Association

Ernie Koepf ­ California Herring Association

Jim Martin ­ Sonoma County Abalone Network

California Fisheries ­ Permits, Sustainability and Fishermen Initiatives

Ronnie Pellegrini ­ Humboldt Fisherman’s Marketing Association

Pete Halmay ­ San Diego Fishermen’s Working Group

Stephanie Mutz ­ Commercial Fishermen of Santa Barbara, Inc

Mike McCorkle ­ Southern California Trawlers Association

Kenny Belov ­ FISH Restaurant

Groundfish

Zeke Grader ­ Pacific Coast Federation of Fishermen’s Associations

Roger Thomas ­ Golden Gate Fishermen’s Association

Marijuana Cultivation Impacts on Watersheds and Fish

Nancy Foley/TBD ­ Department of Fish and Game

Greg Giusti ­ UC Forest Advisor, Mendocino County

Scott Greacen ­ Friends of the Eel River

Salmon

Dave Bitts ­ Pacific Coast Federation of Fishermen’s Associations

Linda Sheehan ­ Earth Law Center

Victor Gonella ­ Golden Gate Salmon Association

Caleen Sisk ­ Winnemem Wintu Tribe

Aquaculture Development

Ken Beer ­ The Fishery

Greg Dale ­ Coast Seafood Oyster Co.

Mark Drawbridge ­ Hubbs SeaWorld Research Institute

Don Kent ­ Hubbs SeaWorld Research Institute

Article Sources: The Commerce File

HUNTINGTON, W.Va. — Huntington-area residents can get free help with filing their income-tax forms from volunteers making several stops across the area this month.

The One Economy's MyFreeTaxes.com van is a program of the Financial Stability Partnership of the River Cities. The van staffed with Volunteer Income Tax Assistance helpers will be parked Tuesday, Thursday, Friday and Saturday at the Cabell County Public Library. On Wednesday it will be at the Huntington Housing Authority.

The Herald-Dispatch reports that the tax van also will appear at several other places through March 2.

Last year, volunteers helped file more than 1,000 tax returns through the VITA and MyFreeTaxes.com programs, resulting in more than $1.1 million in refunds, up 125 percent from the previous year.

HUNTINGTON, W.Va. — Huntington-area residents can get free help with filing their income-tax forms from volunteers making several stops across the area this month.

The One Economy's MyFreeTaxes.com van is a program of the Financial Stability Partnership of the River Cities. The van staffed with Volunteer Income Tax Assistance helpers will be parked Tuesday, Thursday, Friday and Saturday at the Cabell County Public Library. On Wednesday it will be at the Huntington Housing Authority.

The Herald-Dispatch reports that the tax van also will appear at several other places through March 2.

Last year, volunteers helped file more than 1,000 tax returns through the VITA and MyFreeTaxes.com programs, resulting in more than $1.1 million in refunds, up 125 percent from the previous year.

Article Sources: Huntington-area residents to get volunteer help with taxes   – News – The Charleston Gazette – West Virginia News and Sports -

While your estate is exempt from estate taxes if it is worth less than $5.12 million this year, change is not far off. Come 2013, if Congress doesn’t make additional changes, this amount drops to $1 million. That means, for every dollar you own above the $1 million exemption, it will be subject to federal estate taxes upon your death.

Here are some other major federal tax laws affecting estate planning in 2012:• The top federal estate tax rate is 35 percent.• The exemption level for generation-skipping transfer taxes is $5.12 million. The federal generation-skipping transfer tax rate is 35 percent. This means that if you leave more than $5.12 million in property to a grandchild or anyone two or more generations younger than you, your gift will incur a 35 percent tax.• The top gift tax rate is 35 percent. The annual gift tax exclusion—the amount you can give to anyone gift tax–free each year—remains at $13,000 this year ($26,000 for married couples). So if you plan to give above the exclusion threshold, it will be subject to gift tax if your $5.12 million lifetime exemption has already been used.

Estate Planning: There’s No Better Time Than Now Most of us know that we need an estate plan to determine who gets what from our assets when we are gone. Plus, we know that without a valid will, we are leaving it up to the state to determine who gets the majority of our assets and belongings after we die. But did you know that with proper planning you may be able to eliminate estate taxes? This will be especially important in 2013, when the estate tax threshold drops to $1 million, unless Congress makes additional changes.

An Opportunity for Helping Others Never become so engrossed in legal and tax complexities that you lose sight of the people and charitable organizations you want to help. If you believe in what we do and you’d like to save on future federal estate taxes by leaving a gift to Gonzaga University in your estate plans, you can leave a lasting legacy in the most flexible way possible. Consider revocable options such as including us in your will or designating us as the beneficiary of a percentage of your retirement plan assets.

Your Next StepsIf you have questions about tax laws, please contact your estate planning attorney. You can contact us at 800-388-0881 or to learn about ways to leave a legacy while saving estate taxes at the same time.

Article Sources: Gonzaga Giving · Will 2012 Taxes Affect You?

Robert W. Wood is a prominent tax lawyer with a national practice. A partner with Wood LLP (WoodLLP.com), he is admitted to practice law in California, New York, the District of Columbia, Texas, Montana, Arizona, Washington and Wyoming. He is Certified as a Specialist in Taxation and Qualified as a Solicitor in England. Named among the best tax lawyers in America, Wood is a Fellow of the American College of Tax Counsel and consults with clients in tax matters nationwide. He serves as an expert witness, speaks nationally to professional groups, and hosts The Legal Broadcast Network’s Tax Channel. The author of over 30 books and hundreds of articles, Wood is most well-known for advising litigants on the tax treatment of settlement and judgments. His book, Taxation of Damage Awards and Settlement Payments (4th Ed. Tax Institute © 2009), is in wide use by lawyers, judges, mediators and courts nationwide. He has advised plaintiffs and defendants in airline disaster, toxic spill and catastrophic injury cases, landmark whistleblower, fraud, trade secrets and patent litigation, celebrity divorce and palimony cases. He has advised on the tax consequences of marquis antitrust, civil rights and wrongful conviction cases, SEC restitution, and environmental contamination litigation. He has also had significant victories litigating tax cases, including invalidating a long-standing provision in the Treasury Regulations. He can be reached at .

Article Sources: Government Extends FBAR Filing Time

The last major gambling company with an onshore sportsbook is set to quit Britain if the Government fails to equalise the tax paid by offshore operations with what UK firms pay. Gala Coral’s group chief executive Carl Leaver says this would be “sad”, but warns that onshore betting taxes are crippling his business against rivals.

The location of the group’s online sportsbook is now under "constant review". Industry figures suggest that the Government is losing £300m a year as a result of the gambling industry’s internet and telephone operations moving offshore. Coral and Bet365 are the only two major firms left in the UK.

Tory MP Matt Hancock, whose Suffolk constituency includes Newmarket, horseracing’s HQ, thinks he has the solution. He has tabled a Bill which would change the way the tax works by charging it on the punter’s location rather than the bookie’s.

This would be achieved by making it illegal for a company to accept bets from UK citizens without paying the tax and holding a licence from the Gambling Commission. For the sake of some of his important constituents, Mr Hancock also wants the levy on bookmakers racing profits – which funds the sport – to be treated similarly.

Just as Government revenues from the tax have been tumbling, so has the levy, and horseracing is in the midst of a funding crisis as a result.

Mr Hancock’s Bill has its second reading on 30 March, although as a "10-minute rule bill" it faces an uphill struggle for Parliamentary time.

"The Bill (would) bring the main offshore gambling platforms onshore by making it illegal for them to accept bets without paying tax and levy. It will be classified as a bet in the UK if that is where the punter is," he says.

Some betting companies might chose not to comply. But, says Mr Hancock: "They would be illegal. Of course you have to make enforcement effective, ban their ads, and their executives wouldn’t be able to come to the UK without facing sanction."

A spokesman for the Department for Culture Media & Sport says the Government supports the intention to regulate remote gambling on a "point of consumption basis" and is "committed to bringing forward a Government Bill as soon as Parliamentary time allows".

But that won’t be this year – or next year. However, if Mr Hancock’s Bill passes its second reading and reaches committee stage the ministry says it will be supported "albeit with a few technical amendments".

Mr Leaver would be relieved at that prospect, because for his company, time is running out: "Right now there is no competitive advantage to being onshore other than, perhaps, securing a better relationship with racing and even that is debatable."

He is also annoyed that betting shops "which create jobs in the UK and pay rent on the high street" are crippled by taxes which "remote" rivals don’t face.

"That seems a topsy turvy situation because offshore creates no employment. We want to see all offshore gaming taxed in the same way and at the same level as onshore. If not, then there is no way we could continue to see ourselves disadvantaged in this way."

Those bookmakers that have moved offshore are wary. Ciaran O’Brien, corporate affairs director at Ladbrokes, says: "We pay more tax than we retain in profit. The Association of British Bookmakers’ figure for the industry shows that it paid £1bn in tax and yet retained just £600m in profit. We are working harder for the Government than we are for ourselves.

"Let’s say you set a very high tax rate. How would you enforce it? There will be a lot of people outside the net. The experience of the Government here when they extended the gross profits tax at 15 per cent (in 2005) was the death knell for any operators onshore."

On the issue of enforcement, Mr O’Brien argues that even when advertising gambling was banned under the old Gaming Board, ads still appeared for offshore online casinos on the tube.

He adds: "We would welcome a full, proper review. The sensible option would be a low rate (for remote gaming) to bring everyone in, at point of consumption. The other option would be a rate of say 10 per cent for all betting."

Mr Leaver would agree with the latter: "We would like to see some of the money that the Government recovers (from offshore gambling) invested in easing the burden on outlets like betting shops and bingo halls which create jobs."

Interestingly, at least one offshore operation is now looking to move onshore. Bodog, based in sunny Antigua, is about to relocate here.

Its UK chief executive, Patrick Selin, says: "All over Europe you are seeing a trend to make taxes on gambling higher. Different countries are doing different things to enforce this. Some are trying to get ISPs (internet service providers) to block gaming, others to get the banks to stop dealing with betting sites.

"The UK has the best tax. The lowest of all in Europe. There are benefits from being onshore too. You are more credible and there are more marketing tools, deals with newspapers, football clubs. It is also easier to employ talent."

As for horseracing, it should be cheering from the sidelines. But maybe not.

Will Lambe spokesman for the British Horseracing Authority (BHA) says there is a problem: making the levy part of a "point of sale" gambling tax could violate EU rules on state aid for industry.

"Certainly it is clear that the regulatory system for remote betting platforms isn’t working… but there are state aid concerns if you bring in secondary licencing (along with a new tax)."

William Hill, the largest levy payer in the UK, agrees: "There are state aid issues in extending the current levy scheme to offshore operators through any mechanism. Levy would not necessarily follow regulation or tax."

And as for that tax? "There is now a significant body of evidence… which shows that a controlled closing of the UK market at a double-figure tax rate with weak enforcement will be bad for customers, bad for competition and would produce limited tax yield."

Both the BHA and the bookies say they support replacing the levy with a commercial deal. Ministers have been pushing for this too, although they inevitably end up with refereeing a new levy (which is statutory) each year.

The BHA now wants bookies to pay for a "right to bet" on horseracing: "We need to capture all betting on racing, no matter what the platform is. We need a level playing field," says Mr Lambe.

Article Sources: UK is the loser in betting exodus

As Americans sit down to file their federal tax returns, a simple question comes to mind — what’s a “fair share” to give the federal government in taxes?

For half the working population, fair means paying almost no income taxes at all.

“The top 10 percent income earners pay about 70 percent of federal income taxes,” says Will McBride of the Tax Foundation. “The bottom 50 percent of tax filers have, they pay almost no federal income tax. They pay about 3 percent of federal income taxes.”

President Obama’s phrase that everyone should “pay our fair share of taxes” has become something of a political mantra. He has used the expression in dozens of speeches, beginning back in his State of Union address in January. More recently, he told University students in Virginia, “we do expect everyone to do their fair share.”

But for many of the people who pay no taxes, the government also allows tax credits, which end up providing refunds.

“Close to a hundred billion in checks sent out by the IRS (go) to folks who have no tax liability,” McBride said. “So the IRS is becoming a spending agency.”

Arthur Brooks, head of the American Enterprise Institute, put it this way: “Half of the people who don’t pay anything in federal income taxes — about half of them pay less than zero.”

But Brooks says the system is tilted even more toward those in the middle class and below because they also get services from the federal government. As a result the per capita value of government spending exceeds what those individuals pay in federal taxes.

“Right now about 70 percent of Americans take more out of the tax system than they put into it, according to the Tax Foundation,” Brooks said.”That’s something that should really alarm a lot of Americans.”

The policies that left so many people paying no income taxes have been supported by presidents of both parties, and despite what Americans tell pollsters they believe is fair, that’s not how it shakes out.

“The interesting thing is that about two-thirds of Americans think that everybody should pay something,” Brooks said, “so they remember that our government isn’t free.”

Article Sources: Analysis: ‘Fair share’ in taxes? Not by the numbers

Many often wonder just how much would it cost to have their taxes professionally prepared. Luckily, there are a number of free income tax preparation options out there, both for federal and state taxes. According to the IRS, approximately 70 percent of taxpayers are eligible to file for free.

If you haven’t done your own taxes before, it can be an intimidating process with all the complicated tax laws to know, like which deductions or tax credits you’re allowed to take. For most people, however, filing taxes is relatively simple, and can be done using a 1040EZ. A good number of people can even file using popular tax preparation software programs, without even having to pay.

Free Federal Tax Filing

The federal government has a program called Free File, which allows eligible taxpayers to file their federal taxes for free using companies the government has partnered with. Here’s how it works:

1. Get together your tax information like W-2s, 1099s, etc.
2. Determine your adjusted gross income for the tax year.
3. Figure out if you qualify for free file–for 2011, you must have an AGI of $57,000 or less, among other criteria.
4. If you qualify, go to the IRS’s free file partners page and pick a company to file your federal taxes for free. Different companies may have different AGI requirements to file for free, so choose carefully.

So that takes care of filing your federal taxes for free, but the real question is state taxes: Will you be able to file those for free as well? It’s possible.

Free State Tax Filing

While you can almost always file your federal taxes for free, many companies will charge you a fee to file your state taxes. There is a caveat, however.

If you go to your state’s department of revenue website, you can often find that your state will have free filing options as well. Not sure where to find your state’s taxation website? Check out the list of state revenue websites, click on your state and once on the website do a search for free file. Depending on your state, there may or may not be free filing options listed.

I did a search on my state’s website (Minnesota) and found that there are currently 6 websites partnering with the state to offer free state filing to selected filers. As with free federal filing, the companies have specific eligibility requirements, usually income below a set AGI.

When trying to get free federal and state filing, make sure to follow the link on your state’s website or it may not actually be free, and always verify the costs before submitting.

Filing your taxes can be a pain, but it doesn’t have to be expensive. If you meet certain eligibility requirements for both federal and state taxes, you can file your taxes at no cost using one of the major tax software providers.

Just be sure to follow the instructions on the federal and state tax websites, and you should be filing and receiving a refund in no time!

Article Sources: Yes, It’s Possible to File State Taxes for Free

The IRS has a tool to help people who have to repay their First-Time Homebuyer Credit. Reminder letters will no longer be mailed to taxpayers who have to repay the credit but you can now use an online lookup tool on the IRS website to check your repayment obligation. The following four tips will help you look up information on your First-Time Homebuyer Credit:

1. Who needs to repay the credit? If you bought a home in 2008 and claimed the First-Time Homebuyer Credit, the credit is similar to a no-interest loan and must be repaid in 15 equal annual installments that began with your 2010 return. Also, anyone who sold their home, or stopped using it as their main home, may have to repay the entire credit whether their home was purchased in 2008, 2009 or 2010.

2. Information needed to access the tool The First-Time Homebuyer Credit Tool will provide critical account information to help you report your repayment obligation on your tax return. To access the tool you will need: your Social Security number, date of birth and complete address. If you file a joint return, you’ll only be able to access your portion of the First-Time Homebuyer Credit account information.

3. What the tool provides The tool will show the original amount of the credit, annual repayment amounts, total amount paid and the total balance left to be paid. You will be able to print your account page to share with your tax preparer and keep for your records.

4. How to repay the credit To repay the First-Time Homebuyer Credit, add the amount you have to repay to any other tax you owe on your federal tax return. This could result in an additional tax owed or a reduced refund. To repay the credit, you report the repayment on line 59b on Form 1040, U.S. Individual Income Tax Return. If you make an installment payment, you do not need to attach Form 5405, First-Time Homebuyer Credit and Repayment of the Credit, to your tax return. However, if you are repaying the credit because the home stopped being your main home, you must attach Form 5405.

You can access the First-Time Homebuyer Credit Lookup Tool, 24 hours a day, seven days a week, visit the IRS.gov website.

Links:First Time Homebuyer Credit Account Look-upForm 5405, First-Time Homebuyer Credit and Repayment of the Credit and instructions

Article Sources: Total Income Tax » New Tool Available on IRS Website to Help Taxpayers Who Have to Repay Their First-Time Homebuyer Credit

Q: Will local senior centers provide tax preparation services this year?

A: Yes. Services started Feb. 1, will continue through April 15 and are for those 60 and older and those younger than 60 with an income of $50,000 or less.

Taxpayers whose returns include Schedule E (rental income) or Schedule C (profit and loss from business) are ineligible.

Taxpayers should have a Social Security card, picture ID, Social Security benefits statement (SSA-1099), wage and earning statements (W2s and 1099s), property tax bill, interest and dividend statements (1099 INT, 1099 DIV, and 1099B), and the cost of stocks and bonds with dates bought and sold.

They should also provide a copy of last year’s federal and state returns and bank routing number, plus account numbers for direct deposit of refunds.

Some senior centers require appointments, while others operate on a first-come, first-served basis. Call your local senior center to check days and hours.

To get federal forms to do your own taxes, go to the Internal Revenue Service office at 751 Daily Drive in Camarillo. It is open from 8 a.m. to noon and 1 to 4:30 p.m. weekdays. The telephone number is 445-4771.

To order current- and prior-year forms, instructions and publications, visit irs.gov or call 800-829-3676. Orders should arrive within 10 days.

Contact the state’s Franchise Tax Board for state forms. The office is at 300 S. Spring Street in Los Angeles. It is open from 8 a.m. to 5 p.m. weekdays.

Tax information and forms also are available by calling 800-338-0505 or 800-852-5711 or visiting ftb.ca.gov.

Q: My mother has been in and out of hospitals for the past two years. She used her 100 days in a skilled nursing facility, and now my father is paying the full bill. My mother went back into the hospital for four days, and I thought that if you were hospitalized and returned to a skilled nursing facility, the 100 days started over. The financial person at the facility told me there were more stipulations than that. Is this true?

A: The financial person was correct. The noncoverage at the facility has to do with “benefit periods,” not the return to the hospital.

A benefit period begins the day you enter the hospital and ends 60 days after you have not received any inpatient care at the hospital or a skilled nursing facility.

Your mother has never ended her initial benefit period, as she has not had 60 days without inpatient care. She has used up her 100 days for the benefit period she is in and is not entitled to another 100 days in this same benefit period.

If she were to go into a hospital or skilled nursing facility after one period has ended, then coverage for that benefit period starts anew.

Betty Berry is a senior advocate for Senior Concerns. The advocates are at the Goebel Senior Adult Center, 1385 E. Janss Road, Thousand Oaks, CA 91362; phone 495-6250 or email . Please include your telephone number.

Article Sources: Betty Berry: Senior centers again offering income tax help