Know More About The New Mexico Film Tax Credit
Posted on July 8, 2011
Filed Under Tax Credits | Leave a Comment
Doubt over the possible future of film tax incentives in the state legislature have actually made production executives to re-think filming in New Mexico according to local reports. One TV series has recently taken a pass on filming within the state, as a result of current ambiguity in the near future of film tax breaks. As a number of states are thinking about reducing or even ending their incentive programs, New Mexico seems to be following suit. Gov. Susana Martinez has called for the state film incentive program to be decreased from the 25 percent discount to a 15 % rebate. “Her attack on the film industry has actually caused a few companies to think about their investment decisions here,” said Democratic Senator Eric Griego. A House committee recently passed a legislation that would cap cash used on movie incentives at $45 million.
While New Mexico struggles with unemployment, a lagging economic system and a poor state budget, pressure is mounting for legislation to call for an end to the film tax program.
For a long time, New Mexico has been one of Hollywood’s main competitors in the film industry. Having blockbuster hits such as “No Country For Old Men,” “Transformers,” “True Grit,” and many others, New Mexico truly identified itself as a ‘little Hollywood.’ However, New Mexico’s achievement may seem to be on the verge of ending. As the state’s legislature starts its debate over the state’s film tax credit, movie producers and also executives are going in other places. One particular state that has witnessed a large influx of production is Georgia.
In stark comparison with the recent advancements in New Mexico’s uncertain tax future, Georgia recently secured its near future as a safe place for filmmakers and studios alike. Actually, Georgia provides a 20% production tax credit, and provides an option for an extra 10% credit if the Georgia peach logo is featured at the end of the production. While there are several studios in Georgia, none seem to be much more conveniently located than EUE/ Screen Gems studios, 5 miles from the downtown area of Atlanta and just 6 miles from the country’s busiest airport terminal. This central position tends to make it a perfect location for shooting, as the move between sound stage and on-location filming in Atlanta is extremely easy to accomplish.
EUE/Screen Gems carries a longstanding tradition of excellence, since it has been home to over 350 television, movie, and commercial productions. Although there are other studios in Georgia like Raleigh studios, PC&E Lighting as well as Grip, and Turner Productions, none manage to compare with EUE/ Screen Gems’ services as well as production. With its own Lighting & Grip service, EUE/ Screen Gems caters to any producer’s needs and sets the bar higher for all its competitors. With 33- acres of studios and the place to find the 3rd largest stage outside of California, EUE/ Screen Gems is ready to take care of almost everything from a minor commercial to a major film production, ensuring high quality and reasonable fees.
As the cost of film production continues to rise, tax incentives have been passed to minimize production expenses and also encourage the domestic economy. This film tax credit is the latest backbone of movie financing equations.
How To Decipher Tax Settlements And Solutions
Posted on July 8, 2011
Filed Under Taxes | Leave a Comment
Sometimes, taxpayers find themselves owing more to the Internal Revenue Service than they can afford to pay. By working with the agency, or by hiring a tax attorney, taxpayers may be able to find tax settlements and solutions to resolve their outstanding debt. The key is to try to find solutions early, before interest and penalties accrue, and before the IRS begins to impose liens and levies.
Taxpayers may seek professional help, or work with the IRS on their own. To avoid accruing interest and penalties, taxpayers should begin by paying as much of their bill as they can afford. A home equity loan, or even a credit card cash advance, may be more affordable than penalties and interest.
The agency will typically allow a 120-day grace period. Interest will build up during this time, but penalties may be forgiven, if certain circumstances apply. If taxpayers still cannot pay after the grace period, they may file Form 9465, which initiates a request for an installment agreement.
An Offer in Compromise will allow taxpayers to settle for less than they owe. In order for the settlement to move forward, taxpayers must prove one of three situations. One is doubt as to liability, which entails proving that the IRS is assessing the incorrect amount. Another is doubt as to collectibility, which entails proving that the agency has no chance of collecting the debt. In addition, effective tax administration entails proving that, while the taxpayer does not dispute the amount owed, requiring payment will result in extreme financial hardship.
Penalties and interest may be abated, under certain conditions. Innocent Spouse Relief will erase penalties and interest, if a taxpayer proves that the liability came about as the result of actions by his or her spouse. Other mitigating circumstances may include major family problems, illness, incarceration, lengthy unemployment, bad tax advice, or financial harm caused by an act of God.
If the tax bill simply cannot be paid, taxpayers should consider bankruptcy. A payment plan will be created by the court, or non-exempt assets will be disbursed by the court, until the liability is paid. While bankruptcy negatively affects a credit score, and stays on a credit report for several years, it may provide a fresh start, if nothing else will work.
When taxpayers have unfiled returns, or they cannot pay their tax liability, then they should work to find tax settlements and solutions. Hiring an attorney, or working with the IRS directly, may produce options for payment that the taxpayer did not expect. In extreme cases, taxpayers may always apply for bankruptcy protection.
If you are one of the many citizens who owe outstanding tax bills, there are tax solutions available. You can arrange for tax settlements in most instances, you just have to take action.
What Is The Process For Filing An Offer In Compromise
Posted on July 6, 2011
Filed Under Taxes | Leave a Comment
Offer in compromise is usually abbreviated as OIC. This is a type of settlement between a taxpayer and the Internal Revenue Service. The purpose of this settlement is to allow someone to compromise with the IRS and pay a lower amount of taxes than originally owed. However, if the IRS has proof that all taxes can be paid and there are no extenuating circumstances, an OIC will not be approved. Payment plans for the entire amount of taxes owed will also be an option before the IRS will agree to an OIC.
If the offer on the OIC is below the RCP, the IRS will typically reject the application. RCP is an acronym that stands for “reasonable collection potential”. This is determined by the value of the taxpayer’s personal property and bank accounts. This figure gives the Internal Revenue Service an idea of how much one should be able to pay in taxes.
Businesses that promote this type of settlement will advertise that they can settle your tax debt for very low amounts. Do not buy in to this! It is not likely your settlement will be that cheap!
The IRS may consider an OIC if there is considerable doubt that someone will not be able to pay the entire amount of taxes owed within the collection period. If there is doubt in the liability of the amount someone is told to pay, the IRS may also consider an OIC. There can be doubt in the liability of the person if they can produce new evidence or show that the examiner failed to consider the taxpayer’s evidence. Also, the examiner could have made a mistake in understanding the law.
Additionally, if extreme circumstances surround the taxpayer’s situation, an OIC may be considered. If the amount of tax owed is correct and the tax payer is liable for that amount, an offer in compromise can still be accepted if paying the full amount would place someone in a state of economic hardship. Bills pertaining to the care of a dependent or medical bills may be a cause for this type of settlement.
If the Internal Revenue Service accepts the taxpayer’s offer in settlement, the payee has a few choices as far as payment goes. The taxpayer can choose to pay all of the settlement in one sum or pay with a payment plan. The options for payment plans include short term payment plans and deferred payment plans.
In order to file for an OIC, one must submit the application fee, initial payment, and Form 656. Usually, the application fee for this type of settlement will be around $150.
Now that you know exactly what it means to file an offer in compromise there are some other things about the OIC that we would like to tell you about today.
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