Archive | January 18, 2017

IRS Auditing Big Corporations Less

An IRS audit is one of those rain day events you hope never comes. For many taxpayers that get audited, a common question is why doesn’t the IRS go after bigger corporation that have all the money?

IRS Auditing Big Corporations Less?

It is a common refrain you hear time and again. Why does the IRS pick on the little guys when multi-national businesses are making tons of money and undoubtedly skimming on their taxes? This refrain sounds logical at first glance, but the devil is in the details as they like to say.

Large corporations do file taxes. In fact, they carry a heavy burden in doing so. A functioning, large corporation [think Microsoft or General Motors] is just as overwhelmed by the tax code as you are. One of the large entities, I believe General Motors, did a study that revealed it had to file one tax form or another every 3 minutes of the business week just to stay in compliance with the various tax regulations.

Does this mean we should through some sympathy towards large corporations and their tax problems? Maybe or maybe not, but it does point out one interesting thing. With so many filings and such a complex tax code, most huge corporations are undoubtedly making errors when complying with the tax regulations. In some cases, it may be intention. In most case, however, it is probably a situation of human error and simply be overwhelmed with the sheer volume of work that has to be done.

So, does the IRS audit large corporations as aggressively as it does you and me? It is hard to say. What is clear is the agency is doing less audits than in past years and is spending less time on them. A recent study by the Transaction Records Access Clearinghouse at Syracuse University found the IRS audit rate of large corporations dropped nearly 10 percent this year and the time spent on the audit also dropped.

Does this mean the IRS is giving the big boys a free ride or at least less bumpy one? Not really. The IRS still audited 35.5 percent of all businesses with over $250 million in assets. Think about that for a second. The big boys stand a 1 in 3 chance of being audited. In comparison, individual taxpayers stand a 2 in 100 chance. Given these ratios, it is fairly difficult to argue big business is getting a break.

Richard A. Chapo is with BusinessTaxRecovery.com – providing information on tax debt relief.

Cell Phone Accessories – Making Life Easier

As soon as one brings a new cell phone home, various ideas of accessorizing it start coming to his mind. People generally accessorize their cell phones for two reasons – either they want to enhance the functionality of their device or for fashion purposes. The demand for both types of mobile phone accessories has greatly increased in the past few years. Here are a few reasons for this. >

Get a long battery backup during travelling with cell phone adapters

Having an extra cell phone charger will always be useful as it will mean more hours of usage. Especially when you are on the way, a car cell phone charger will let you repower the unit just by connecting it to the car battery through the adapter. Another way to ensure extended battery life is to purchase an extra battery. Sometimes you may have to travel overseas and in such a case, you won’t have your own vehicle so you cannot charge the cell phone with a car adapter. For such instances, it is better to carry two fully charged batteries with you so that in case one discharges, the other one can be used. Though, it will mean that you have to charge both of the batteries before you leave.

Accessories for safe driving

After the arrival of mobile phones, the number of car accidents has greatly increased. This is because people tend to talk over the phone or send and read text messages while driving which takes their attention away from the road and results into a road accident. There have been numerous cases of negligence and road accidents which occur as the driver was busy talking to someone over the phone. In some countries, it is illegal to call or message while driving. Driving safely is the responsibility of the driver first off. Cell phone users can use Bluetooth headsets for attending calls while driving. These come in a number of wearing styles and designs so the user can purchase the one that he feels most comfortable with. These let you talk over the phone while driving as your hands are free.

Protecting your phone from damage

No one would intentionally throw his expensive cell phone on the ground but sometimes it is tough to avoid falls and scratching. To keep your cell phone protected from any kind of damage during such instances, you can purchase cell phone covers and screen protectors. Cell phone covers are made of plastic, leather, vinyl and silicon. All of these have their own pros and cons. Leather covers are classy while plastic and silicon covers are more capable of protecting the device from shocks and falls. These also provide a good grip for the user. Designer cell phone covers are good fashion accessories for these devices. Other fashion accessories can be key chains, stickers and charms.

Multi National Corporations Disected

MNCs

An Enterprise, which allocates company resources without regards to national frontiers, but is nationally based in terms of ownership and top management. It comprise of three words multi, national and corporations. These words together means that corporations which have established their offices to increase the interaction either by their own efforts or by collaborations with other companies. Thus Multinational represents highest level of overseas involvement and is characterized by global strategy of investment, production and distribution. MNCs are enterprise which owns or controls production or service facilities outside their home country.

Classification of MNC by behavior

1.Ethnocentric: These are the type of MNCs which have strong orientation towards home country. This means that home country people are considered as superior and allocated all key posts.
2.Polycentric: Just opposite to Ethnocentric polycentric type of MNCs has strong orientation towards host country where few key people are nationals and remaining are from the host country.
3.Regiocentric and Geocentric: These MNCs have their concentration in whole world and they make selection for best employees whether they are from host country or home country it does not matter.

Characteristics of MNCs

1.Single Managerial Authority control
2.Worldwide Integration, better profitability
3.Global Perspective
4.Close Coordination in parents & affiliates
5.Worldwide Market

Benefits of MNCs

1.Training of domestic manpower
2.Increase pace of economic development
3.Promote better products at lower costs
4.Employment to labour
5.Increase in production, GDP, exports
6.Increase in Governments revenues

Criticism of MNCs

1.Increase gap between rich & poor countries
2.Misallocate & misuse scarce natural resources
3.Home country loses jobs when MNC overseas
4.Employ transfer pricing
5.Aggravate Unemployment in developing countries
6.Competition from MNCs local Industry

Entry Strategies used by MNCs

1.Exporting
2.Licencing
3.Joint Ventures
4.Manufacturing
5.Contract Management / Turnkey Projects

Arguments in support of MNCs in India

1.Change in Perception
2.Economic Arguments
3.Technology Transfers
4.Foreign Investment vs. Borrowing

Benefits of Indian Liberalization to MNCs

1.Positive steps taken by government
2.Effect of these steps

Direct Benefits to India of the increasing presence of MNCs

Increasing scope of professional Education
Increasing competition among states for FDI
Expanding Indias consuming class
India as a source of Inputs
Infrastructural gains

Criticism of MNCs in India

1.Inappropriate products launched by MNCs
2.Overshadowing Domestic Industry
3.MNCs and child labour
4.Workers Exploitation

MNCs and FUTURE

Leading Global Business intelligence and consultancy firms such as Giga, Forester Research and McKinsey & Co. have cited various reasons for the increase of offshore outsourcing by MNCs to India.

Mothers Day Crafts Personalized Potholders

What do you love about your mom? The warm home-cooked meals, the after-school hugs or because she makes you feel better when youre sick? There are so many reasons to thank your mom for all she does and Mothers Day is the perfect opportunity to show your gratitude.

While you may not be able to afford all the things you think your mom or wife deserves, you can show your appreciation in another way. Get your children to make personalized Mothers Day crafts to show how much they love their mom. It is a simple way to make memories that will last a lifetime.

Personalized potholders are the perfect Mothers Day gift, and are a perfect craft project for every age. Head to your local craft store and pick up the following supplies:

Solid colored potholders
Buttons
Paint supplies
Glitter
Stencils

Let your kids walk through the aisles and find sequins, rhinestones or embellishments that inspire them. Once you collect all of your supplies, you can head back home and start making your Mothers Day crafts.

Give each of your children the solid colored potholder of their choice. On the back, have each child write in permanent marker or paint, why they love their mom. Once that dries, flip the potholder over and let each child decorate the front using the stencils, paint, buttons, glitter and embellishments.

If you have multiple children, you can have each child put their name on the front of their potholders with a hand-drawn picture of themselves. Or, you can have each child draw a flower so when they are finished, mom will have an entire garden. Some other ideas include:

Hand-drawn pictures of mom
All of moms favorite things
The four seasons
Hearts surrounding the words “I Love You”

Each child can create a unique piece of artwork that reminds them of their mom. While they work, have them talk about what makes their mother so special and why she deserves to have this special day.

On Mothers Day, you can hang each of the decorated potholders on hooks above the fireplace or in the kitchen. Let each child explain their potholder to their mother and have them turn it over to reveal why their mom is special to them.

This is just one simple idea for Mothers Day crafts. You can come up with different ideas every year, so mom will know how special she is and have a keepsake of her children as they grow.