by NFS | Jun 20, 2011 | Archives
A pair of women in Alabama were sentenced to prison time and ordered to pay more than $1.4 million for conspiring to file false claims for tax refunds.
Betty Washington was sentenced Thursday to 21 months in prison and ordered to pay restitution of more than $1,440,632. Wendy Delbridge was sentenced to five days in jail and six months of home confinement for her role and ordered to pay restitution of $45,219. Both women pleaded guilty in January 2011.
According to court documents, between October 2009 and September 2010, Washington conspired with others to fraudulently obtain tax refunds. The conspiracy involved using stolen identities to file false income tax returns claiming refunds. At the behest of co-conspirator Alchico Grant, Washington opened up a bank account at a local bank to receive tax refunds from the scheme. Sixteen different refunds, issued in the name of 16 different individuals, were deposited into the bank account.
When the bank closed the account because of the suspicious nature of the deposits, Washington opened new bank accounts at a credit union in her name and in the name of Central Alabama Financial Services. Over the course of several months, more than 300 false refunds were deposited into these bank accounts, totaling more than $1.4 million in fraudulent refunds. To distribute the fraudulent refunds, Washington wrote checks and obtained official checks payable to various co-conspirators and associates and withdrew refund money in cash as well. She retained a portion of the refunds for herself.
Delbridge played a similar role. At co-conspirator Veronica Dale’s direction, she also set up a bank account at a local bank to receive fraudulent refunds. When the bank closed the account because it was receiving tax refunds that were not in Delbridge’s name, she opened a new bank account at a credit union. Between February 2010 and June 2010, the two bank accounts received more than $50,000 in false tax refunds, which Delbridge withdrew in cash and provided to Dale. In return, Delbridge was paid a portion of the fraudulently obtained refunds.
Along with three other co-defendants, Dale and Grant were indicted in December 2010 for their roles in the conspiracy. Grant was indicted a second time in April 2011 for again being involved in a scheme to fraudulently obtain tax refunds using stolen identities. On April 28, 2011, Grant’s pretrial release was revoked and he was ordered detained. Both Dale and Grant are currently awaiting trial.
by NFS | Jun 9, 2011 | Archives
Northeast Financial Strategies Inc (NFS) will be giving away $15,000 for a Hole In One Winner @ this year’s WYBSA Golf Tournament.
On Friday, June 17th 2011, the 2nd Annual Wrentham Youth Baseball & Softball Association Charity Fundraiser Golf Tournament is taking place at the New England Country Club in Bellingham MA. NFS will award $15,000 to the person who sinks a HOLE IN ONE on the Par 3 Hole #4 during the tournament.
In addition to the $15,000 give away on Hole 4, we will be giving away prizes to the 7 closest to the pin players and also awarding auxiliary prizes for a HOLE IN ONE on one of the other Par 3 holes. These prizes include a Flat Screen Television, Visa Gift Cards or Golf Equipment.
Lastly, every participant will receive a $50 Gift Card to 100ThingsToBuy.com.
Following the tournament, we will be available during the Dinner, Award Ceremony and Raffle where we have donated a gift certificate for FREE INCOME TAX PREPARATION.
Please join us for this great event!!
by NFS | Jun 8, 2011 | Archives
Developing a Family Disaster Plan – Check out NFS Financial Facts
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by NFS | Jun 8, 2011 | Archives
Even if Social Security makes good on benefits promises, and even if low-income workers keep working till they’re 80, about 38% of those low-income workers could go broke when they finally do retire.
Researchers at the Employee Benefit Research Institute (EBRI), Washington, present that warning in a new analysis of data from EBRI’s Retirement Security Projection Model database.
The latest version of the database lets users study what will happen if householders defer retirement age past age 65.
The researchers consider whether individuals have a 50% chance of being able to meet basic retirement living expenses and uninsured health care costs.
Many workers – and some policymakers – are hoping workers can overcome gaps in public retirement programs and shortfalls in private savings by working past age 65.
One problem is that employers are not necessarily clamoring to hire and retain workers ages 65 and older, experts say.
Another challenge is that even workers who are able to work past age 65 may live long past age 65.
Workers in the top quartile of income have about a 76% shot at having adequate retirement income if they retire at age 65, and that percentage rises to 81% for top-quartile workers who keep working to age 69, EBRI researchers say.
Only 30% of workers in the lowest quartile have a 50% overall chance of having enough retirement resources. That percentage rises to 35% for workers who retire at 69, to 62% for workers who retire at age 80, and to 90% for workers who retire at age 84.
“What really makes a positive difference, we found, is if people who continue to work after 65 also continue to contribute to a defined contribution retirement plan,” Jack VanDerhei, a report co-author, says in a statement about the analysis.
Access to retirement plan benefits can dramatically increase the likelihood that an individual will be able to afford retirement, VanDerhei says.
By Allison Bell
by NFS | Jun 7, 2011 | Archives
A coalition of Republican and Democratic lawmakers has introduced a trio of bills aimed at protecting access to medical marijuana under tax and banking laws, and changing the existing laws to reflect the medical efficacy of marijuana.
The bills were authored by Rep. Pete Stark, D-Calif., Barney Frank, D-Mass., and Jared Polis, D-Colo.
Stark’s bill, HR 1978, the Small Business Tax Equity Act, would allow medical marijuana dispensaries to take the full range of business expense deductions on their federal tax returns, just like every other legal business is permitted to do under the law. His bill is co-sponsored by Rep. Dana Rohrabacher, R-Calif., and Ron Paul, R-Texas, as well as Frank and Polis.
“Our Tax Code undercuts legal medical marijuana dispensaries by preventing them from taking all the deductions allowed for other small businesses,” Stark said in a statement Wednesday. “While unfair to these small business owners, the Tax Code also punishes the patients who rely on them for safe and reliable access to medical marijuana prescribed by a doctor. The Small Business Tax Equity Act would correct these shortcomings.”
The States’ Medical Marijuana Patient Protection Act, authored by Frank and co-sponsored by Stark, Polis and Rohrabacher, would make individuals and entities immune to federal prosecution when acting in compliance with state medical marijuana laws. It would also direct the administration to initiate the process of rescheduling marijuana under the Controlled Substances Act so that it is placed in a schedule other than Schedules I or II.
“The time has come for the federal government to stop preempting states’ medical marijuana laws,” Frank said. “For the federal government to come in and supersede state law is a real mistake for those in pain for whom nothing else seems to work. This bill would block the federal prosecution of those patients who reside in those states that allow medical marijuana.”
Polis’ Small Business Banking Improvement Act, which is cosponsored by Stark, Frank and Paul, would ensure that medical marijuana businesses that are state-certified have full access to banking services by amending the Bank Secrecy Act.
“When a small business, such as a medical marijuana dispensary, can’t access basic banking services they either have to become cash-only—and become targets of crime—or they’ll end up out-of-business,” said Polis. “In states that have legalized medical marijuana, and for businesses that have been state-approved, it is simply wrong for the federal government to intrude and threaten banks that are involved in legal transactions.”
Stark and Polis welcomed Congressman Paul’s support for their bills.
“It is time to get the federal government out of state criminal matters, so states can determine sensible drug policy for themselves,” said Paul. “It is quite obvious the federal war on drugs is a disaster. Respect for states’ rights means that different policies can be tried in different states and we can see which are the most successful. This legislation is a step in the right direction as it removes a major federal road block impeding businesses that states have determined should be allowed within their borders.”
by NFS | Jun 6, 2011 | Archives
Five Common Mistakes Made When Preparing for Retirement
Retirement is rapidly approaching for many baby boomers. Some of them will make mistakes in preparing financially for that stage of life. Don’t let yourself fall into these common traps when setting up your nest egg.
1. Retiring With Too Much Debt: Financial planners generally recommend that individuals don’t retire until credit card, mortgage and other forms of debt are paid off. These monthly payments can quickly cut into savings. Increasingly, Americans are entering traditional retirement years with heavy debt.
2. Lack of Insurance: Although most individuals over the age of 65 are eligible for Medicare, they will still have healthcare costs that are left uncovered by Medicare. Many items, including premiums, deductibles, coinsurance, eye glass coverage, hearing aids or long-term nursing home care for longer than 100 days, are typically not covered by Medicare. Guidance from a professional is recommended if the family has significant assets to protect.
3. Ignoring Inflation: Inflation will slowly erode an investor’s savings, no matter how carefully they saved. That said, there are steps that can be taken to avoid this. Social security, some annuities and pensions are adjusted for inflation annually. Treasury Inflation-Protected Securities are a government bond that promises a rate of return that exceeds inflation.
4. Relying Too Heavily on One Income Source: A certified financial planner may recommend having four to six sources of retirement income without counting on just one. By diversifying, retirees can avoid losing all their income if one source loses value. Guaranteed sources can include Social Security, pensions and annuity payments. Other common sources can be 401(k), IRA, CDs, personal investments, cash investments, rental properties and royalty income.
5. Not Protecting Savings: About five to ten years before retirement, individuals should start to focus on protecting their savings. People can reduce risk by shifting assets to more conservative investments, avoiding borrowing or taking early withdrawals and minimizing fees and taxes deducted from savings. More funds should be placed in low-cost investments and traditional and Roth retirement accounts. : Inflation will slowly erode an investor’s savings, no matter how carefully they saved. That said, there are steps that can be taken to avoid this. Social security, some annuities and pensions are adjusted for inflation annually. Treasury Inflation-Protected Securities are a government bond that promises a rate of return that exceeds inflation.
