Wronged people can sue companies and share litigation costs {class action suit}|.
Going from one house to another {moving, household} has stages.
do-it-yourself
Get smallest truck or trailer that holds everything in one load. Practice driving. Load it with proper weight balance, front-rear and right-left. Put heavy items on floor and light ones on top.
contract
Moving contracts list estimated packing costs. Contracts include prices for boxes and containers, extra charges for carrying goods over long distances or heights to and from home, extra insurance costs, gasoline surtaxes, extra costs for big city labor use, and total price of taking estimated weight from old to new home.
estimate
If using a moving company, contact at least two, several months in advance. An estimator comes to estimate total weight. Get at least two estimates. Point out what stays and what goes. Most movers are similar but use a recommended one. Company selected sends a contract and a book about moving. Moving contracts allow a three-day period for the move. Movers will probably come on last day.
insurance
Moving contracts have insurance options. The free option pays a fixed amount per pound for pounds lost or damaged. The other option costs little and pays more.
loading
If you have already packed a household, movers can load a moving truck in a day. If movers pack, it can take a week to load. Large moving trucks can hold 4 to 7 houses. Never allow goods on tailgates or tied to truck. Movers can pack truck inside as they like.
move
Truck driver is in charge of the move. Driver has weighed truck before packing. Driver writes condition and number of items. You must sign sheets listing boxes, furniture, and so on. Driver weighs truck again. Call to find out actual weight, to know total cost. You have no control over how long truck takes to get to new house. Ask expected arrival date and be ready to add two days.
move preparation
One month before moving, find a new home. Transfer insurance to that home. Send change-of-address cards, available from post office, to all creditors, debtors, magazines, clubs, newspapers, and friends. Notify telephone companies, utility companies, and other businesses that bill monthly, stating when to stop services at old address and start at new address. Open a checking account in new area. Throw away unwanted things.
moving week
One week before moving, clean everything, get packing materials, and select items needed during transition period.
packing
Put all items into boxes, not wrapped or loose. Get boxes from grocery stores. Break down items to fit them into boxes. Wrap breakables in newspaper, clothes, and towels. Do not use excelsior, plastic puffs, or special wraps. Pack plates on edge. Nest saucers, bowls, and cups. Pack books flat, not on edge. Make small boxes for books and heavy items. Use towels, sheets, and clothes to fill boxes completely, so nothing can shift. Wrap mirrors and easily marred surfaces with cardboard. Protect TV face carefully with cardboard and blankets. Have pianos moved separately. Mark boxes with contents and room names and seal shut with strong plastic tape.
unloading
When truck arrives, pay driver. After unloading everything, sign sheets again. Write down everything you do not like. Decide what to do about it later. Mover puts boxes in marked rooms. Mover unpacks boxes, if it is in contract.
Credit bureaus record {credit report} debts and payments, and late or missed payments, for mortgages, credit cards, auto loans, and other loans. People have the right to receive a credit record copy, except for medical information, from credit bureaus, according to the Fair Credit Reporting Act. Credit reports typically contain items that need clarification or correction.
inventory {list, valuables} {valuables list}.
Statements {pension benefit} can indicate pension deposits and payments.
Statements {social security statement} can indicate retirement and disability deposits and payments.
Cards {social security card} can have identification numbers.
Documents {veterans information} can indicate armed forces service places and dates.
Post offices or money-transfer agencies can receive cash and issue documents {money order} authorizing all post offices or money-transfer agencies to pay bearer.
Boxes {safety deposit box} {safe-deposit box}| in bank vaults can hold valuable documents.
contents
Bonds, stocks, property records, mortgages, securities, titles, deeds, birth certificates, marriage certificates, death certificates, jewelry, mementos, military records, church records, valid passports, citizenship papers, important contracts, titles to boats and cars and trailers, insurance policies, possession inventory, copy of will, and valuable papers and documents are in box.
cost
Safety deposit boxes cost a nominal amount per year, depending on size.
insurance
Contracts for boxes seldom include insurance on contents.
access
Safety deposit boxes have two keys, one for bank and one for customer. Opening box requires both.
access: death
On person's death, bank seals box for inventory for state tax and inheritance laws. Later, estate executor distributes contents. In case of joint ownership, depending on state, survivor can have complete ownership and access, death of any owner can seal box, or survivor has limited access to look for will, burial instructions, or insurance policies.
People can deposit money in bank, savings-and-loan, or credit-union accounts {savings account}|, with promise by bank to pay person all money back on demand. Bank is debtor. Depositor is creditor. Bank has legal title to the money.
insurance
Federal Deposit Insurance Corporation insures bank savings accounts, up to $250,000. Federal Savings and Loan Insurance Corporation insures savings-and-loan-company savings accounts, up to $250,000.
interest
Interest is typically 2% to 5%. Interest rate can depend on how long the money must remain with bank before withdrawal and how much is in account. Savings and loans typically pay 0.5% more than regular banks. Credit unions typically pay 0.5% more than savings and loans.
deposit
Savings accounts can require minimum deposits.
income
A reasonable saving rate is 5% of income.
People can deposit money in accounts {checking account}| at banks, savings and loans, or credit unions receive money, which depositor can withdraw by writing personal checks. Checking accounts are demand deposits for writing checks. Bank promises to pay any person holding check drawn on that account. Bank is debtor. Person is creditor. Bank has legal title to money.
types
Checking accounts {joint account} can have more than one person that can write checks. If one person dies, others still can use account. Checking accounts can pay interest.
fee
Checking accounts typically cost money {service charge}, paid by month or per check. Banks can waive service charges, if a minimum amount is in checking account.
check-writer death
Death of check writer does not void a check. Banks can honor any check up to ten days after death notification.
check error
Banks are not liable for alterations to checks or wrongful endorsements, unless banking standards are negligent. Negligence of check owner typically causes alterations and wrongful endorsements: for example, someone uses a company-endorsement stamp or leaves blank or signed checks available to others.
Signed orders {bill-of-exchange}| {draft from bank} to banks or other parties can agree to pay bearer the amount, on demand or at a fixed time.
types
Bills of exchange {personal check} can be signed orders to banks to pay bearers immediately from checking accounts. Checks {certified check} can carry guarantee of validity of check writer's signature, as determined by bank. Bank immediately withdraws the money from his or her account and assumes liability for check. Checks {cashier's check} can be on bank's account, purchased from bank by individual to provide acceptable payment to a creditor who will not accept personal checks.
Check payees can sign name on back left side {blank endorsement} {endorsement}|, making check payable to any bearer. Payees can write "pay to X" and signature on back {special endorsement}, making X the only person that can cash check. Payees can write "for deposit only" and signature on back {restrictive endorsement}, making check non-negotiable. Payee can write "without recourse" and signature on back {qualified endorsement}, thus limiting liability. Third parties should not accept commercial paper with qualified endorsements.
Checks can be for more than depositor has in checking account {overdraft}|.
Banks can reject checks {stale check} dated more than six months before presentation for payment.
Depositors can command banks to refuse to pay a check holder {stop payment order}|, when check comes to bank for collection. Stop-payment orders can cancel lost or stolen checks, cancel checks if payee failed to provide service or goods, or cancel checks if long time elapsed since check date. Written stop-payment orders are binding on banks for six months, and you can renew them. Oral stop-payment orders are binding for two weeks.
If a bank refuses to pay a check, because it believes account does not exist or has insufficient funds, bank is liable for damages {wrongful dishonor}|, even if act was not intentional.
Buying cars {automobile buying} has many steps.
size
Buy smallest car that driver and family can fit into comfortably, which can differ if driving is mostly in city or is mostly long distance.
features
Car should have high and comfortable driving position. It should have good visibility. It should have good rear-view mirrors. It should have easy-to-read instruments. It should have easy-to-use and smooth operating controls. It should have adequate acceleration. It should have good braking distance under repeated braking. It should shift easily. It should have easy and precise steering. It should have fuel economy. It should have air bags. It should have three-point seat belts, not connected to door or seat.
safety
It should prevent brake lock when braking hard {anti-lock brakes}. It should prevent wheel spinning by differential {traction control}. It should prevent skidding and rollover {electronic stability control}. It can have advanced features {emergency brake assist} {blind-spot detection} {lane-departure warning} {lane-departure prevention} {forward-collision warning}.
future
Future cars may have {backover detection} {traffic-sign recognition} {automatic braking} {automatic pedestrian recognition}.
used car
For used cars, get cars with good repair records, as judged by testing agencies. Have mechanics check used cars. Check wheel alignment, driving feel, smoothness, proper fluid-level adjustment, moving-part wear, and finish for accidents. Do not worry about resale value unless planning to resell car in less than five years.
Look for smooth seams, true pattern matching, and good zippers {clothing, buying}. Clothing has standards, except for sizing and fit. Width from shoulder to shoulder should match person's shoulder width. Sleeve length should match length from shoulder top to wrist bone. Neck size should be one centimeter more than neck circumference. Waist length should be same length as waistline, just above hips. Pant inseam should match length from crotch to ankle.
Appliances and electrical tools should have insulation and have grounded plugs {grounding, appliance} {grounded appliance}, with three prongs or with a ground-sided two-prong plug.
Welt construction is best {shoe, buying}. Never use x-ray machines {fluoroscope}. Leave 3/4 inch at toes while standing on both feet. Have snug fit around heel. Have snug fit at foot and shoe widest part. Shoe flex line and widest part should coincide with foot widest part. No rough edges or heavy stitching should be on shoe insides.
To collect debts {debt collection}, companies and people can send letters purporting to be from credit bureaus or legal collection agencies. They can send legal-looking forms giving appearances of lawsuits. They can demand extra late charges. They can try to intimidate, using threats of legal action or fake letters from courts or government agencies.
Salespersons {door-to-door salesperson} can pretend customers are part of a select group, claim they are doing marketing surveys, claim they are earning their way through college, or claim they work for charity. Door-to-door salespersons can collect subscriptions and then switch terms later. Companies with mainly door-to-door salespersons must allow consumers three days to change their minds after salesperson has left, provide cancellation forms, and not transfer debt instruments until five days after sale date.
Selling higher-priced goods is legal and ethical if cheaper goods are available and seller does not disparage cheaper goods {trade-up}| {selling up}. Businesses can try to obtain agreement to buy something and then try to sell extra items or more-expensive models. This technique is typically for items that have options, such as cars and computers.
Products typically include a written policy {guarantee} {warranty} from company stating that you can return them for free service or replacement if defective. Small-item warranties are good for 90 days or one year. Warranties on durable goods, such as mattresses, appliances, and furnaces are 3 to 15 years.
Car warranties {automobile warranty} cover only normal defects and do not cover abuse defects. Warranties are typically transferable.
Businesses can sell using illegal methods {deceptive selling}|. Deceptive selling practices can violate law, and you can report them to Better Business Bureau, Chamber of Commerce, Federal Trade Commission, other state or federal agencies, news media, district attorney, or attorney general. When sellers violate state or federal rules, only state or federal agencies can prosecute.
Federal Trade Commission (FTC) limits unfair competition methods and tries to stop unfair and deceptive practices, but only if they are ordinary business activities, not individual cases. FTC can issue an order {cease and desist order} to such companies. If companies persist, FTC can sue for each violation.
Deceptive selling practices {bait and switch}| can offer a product at low price and then attempt to sell a higher-priced item when consumer gets to store or salesperson comes to home. Sellers can disparage lower-priced goods, have few cheaper items, or refuse to sell lower-priced goods.
Deceptive selling practices {false advertising} can advertise falsely. Advertisements can say present price is less than normal price {deceptive pricing}. Advertisements can use fictitious former prices, which are either unreasonable or non-existent. Advertisements can claim price is wholesale price, though it is actually higher than normal wholesale. Advertisements can suggest that manufacturer's suggested retail price is normal selling price, though actually it is not.
Deceptive selling practices {misrepresentation} can claim product has features it does not have.
Deceptive selling practices {unsolicited merchandise}| can mail unordered goods to consumers and try to force them to pay for the goods or return the goods at their expense. Federal law allows consumers to dispose of these goods and prohibits senders from sending invoices to consumers. This law does not apply to agreements that regularly mail books, records, and so on, to subscribers. This law allows free samples. This law allows charitable organizations to send giveaways to solicit donations.
Insurance {disability insurance}| can pay monthly when sickness or injury prevents working.
Insurance {fire insurance} against fire is lower for brick houses. Brick needs no paint. Brick is not good in earthquake zones.
Insurance {homeowner's insurance}| {renter's insurance} {home insurance} can insure repayment by insurance company if theft, fire, other natural disasters, or vandalism causes property loss. It pays victims of accidents on one's premises.
Insurance {life insurance}| can pay money to a named beneficiary after death of insured person. Payment can be one lump sum or monthly payments.
disability
Life insurance policies can pay for arm, leg, or eye loss {permanent disability}.
types
For most people, decreasing term insurance is the best buy in life insurance, because premiums are lower in early life, when paying is most difficult. Benefits decrease as need for benefits decreases.
amount
Amount needed is difference between total expenses family will have through working life, taking into account inflation and expenses attendant on death, and total income that they have with no insurance.
Life insurance {participating whole life insurance} can be like whole life insurance, but it also pays dividends to insured person, depending on insurance-company investments. Dividends can give cash to insured person, reduce future premiums, buy more insurance, or reinvest.
Life insurance {term life insurance} {term insurance}| can be for 5, 10, 15, 20, or 30 years. In ordinary-term life insurance, insurance premiums increase each year, as chance of death or disability increases. In long-term life insurance, premiums stay constant, at level between ordinary-term lowest and highest premiums, because payments average. In decreasing-term life insurance, premiums stay constant at low level, but payment to beneficiary decreases over the years.
Life insurance {variable whole life insurance} can be like whole life insurance, but it conditions payments to beneficiaries on insurance-company investment performance.
Life insurance {whole life insurance} {straight life insurance} can keep premiums constant at high level and insurance amount constant. Policy cash value builds as payments accrue. Cash value is total extra money paid to insurance company, plus interest. Cash value can be security for loans, income at retirement, or trade-in for another life insurance type. Premium owed is statistically expected cost of insurance coverage over statistically expected lifetime, divided by number of payment years. In first years, payments are more than true cost of protection at that time, while later they are less.
States require car insurance {automobile insurance}. Most people should have {coverage, insurance} liability, uninsured motorist, and medical payments insurance. Liability and comprehensive insurance cost depends on principal driver's driving record, age, sex, and marital status. However, insurance insures car, so insurance covers anyone driving that car with owner's permission.
All states have laws {financial responsibility law}, requiring car owners to show that they can pay for damages if in automobile accidents. If owners cannot pay damages, state revokes license and registration. Drivers should have $100,000 insurance for one injured person, $300,000 for all injured people, and $50,000 for all damaged property, in one accident.
Automobile insurance {liability insurance, car} can pay for damages to people or property in accidents that are driver's fault. Most states require that people have minimum liability insurance for damage to one person, all people, and property.
Insurance {medical payment} can pay up to a limit for minor-injury treatment received in accidents.
Drivers can have insurance company pay for injuries to self or passengers and for damages to car or property, without need to determine responsibility {no-fault insurance}. It allows faster claim settlement and reduced legal costs to insurance companies. Variations on no-fault insurance allow companies to determine fault. One pays for everything. Another allows premium increase after driver is in an accident. People can file lawsuits for additional damages.
Insurance {theft insurance} {damage insurance} can reimburse for theft, vandalism, flood, and windstorm property loss or damage.
Insurance can pay expenses up to a limit in accidents caused by drivers {uninsured motorist} who have no insurance and cannot otherwise pay.
People can invest in real estate, stocks, bonds, and commodities {investment, personal}.
Investment in minerals, animals, and grains {commodity}| is risky. Investment costs are moderate to buy and sell. Invested money can be unavailable in down markets. Commodity trading uses securities brokers.
Investment in money {money market}| has little risk. Investment costs little to buy and sell. Invested money is typically readily available. Money markets use securities brokers.
People can buy investment-company stocks {mutual fund}|. Investment companies buy and sell stocks on stock markets and bonds in bond markets, for profit.
types
Mutual funds can have different investment goals, such as high return rate per share {dividend, share}, high growth rate in stock value {equity, stock}, or moderate rates for both.
risk
Mutual funds invest in a greater variety of stocks and so lessen risk. Emphasis on growth is more risky. Investments in growth should use extra, not essential, money. Investment costs are moderate to buy and sell. Invested money can be unavailable in down markets.
commission
Mutual funds can charge a commission {load, commission} for buying or selling shares. Mutual funds can charge no commission {no-load mutual fund}.
open
Mutual funds {open-ended mutual fund} can keep issuing new shares to public. Mutual funds {closed-end fund} can have a fixed number of traded shares.
People have stocks, bonds, and commodities holdings {portfolio, investment}.
Corporations or investment companies prepare proposed investments {prospectus}|, to market offerings to investors.
Investment in property {real estate investment} has little long-term risk. Investment costs are high to buy and sell. Invested money is very unavailable. Investing uses real estate agents or brokers.
Investments {bond, investment}| can be company or government promises to pay a fixed interest rate after a date or up to a date, when investors can get principal back. Commercial-paper certificates can state that debtor agrees to pay amount on date. Bonds typically have higher interest rates than savings accounts.
government
USA government bonds are E, H, savings, treasury, and municipal bonds.
process
Bonds are sold for different amounts, and company pays back principal and interest to holder over time, typically quarterly.
tax
Income from bonds from cities {municipal bond} is free from federal and state tax. Income from bonds from states is free from federal tax.
market
People buy and sell bonds in a market {bond market}. Bonds vary in value compared to other investments, depending on interest rates in other investments, money value, and time to maturity. Investment in securities has little risk. Investment costs little to buy and sell. Invested money is typically readily available. People can buy into bond mutual funds.
Corporations can issue unsecured long-term bonds {debenture}|.
Bonds pay off at different times {maturity}|, such as 3, 6, or 9 months, or 1, 2, 5, 10, 20, 30, or 40 years.
regular insurance payment or regular bond payout {premium}|.
United States government sells bonds through banks {savings bond}| {U.S. Savings Bond}. Savings bonds sell at a percentage of face value and have a fixed period during which they can earn interest. For example, savings bond sold for $750 are worth $1000 in 30 years. If bond sells to someone else before 30 years, market determines interest. If you redeem bond after 30 years, value is $1000. Savings bonds typically have higher interest rates than savings accounts.
Banks can agree to pay deposited amount, plus interest at fixed rate, on a fixed date, if depositor leaves money in account until that date {deposit certificate} {certificate of deposit}| (CD).
Money can be in securities {time deposit} that you cannot liquidate until after a period.
People can buy shares {common stock, investment} {stock, investment} in corporations.
markets
Dealers can belong to markets {stock exchange} that list stocks for buying and selling. Brokers can buy and sell stocks that are not on stock exchanges {over-the-counter}.
dividend
Common stocks can pay yearly or quarterly dividends from corporation profits. Dividend amount and rate vary greatly.
price
Common-stock value depends on dividend paid or expected compared to stock price, stock price compared to company assets, expected profits or losses, and overall market state. Growth stocks can pay no dividend but have value, because people expect them to quickly rise in price.
preferred
Preferred stock can be ownership shares that have first claim to corporation assets.
People can order brokers to buy or sell stock when stock reaches a price level {stop order}|.
Securities can have a written value {face value}|, as opposed to market value.
Securities can have no face value {no-par}|, so you cannot redeem it, only sell it on the market.
Tradable legal documents {commercial paper}| include checks, promissory notes, bank drafts, deposit certificates, and most corporate bonds. Commercial paper can be non-transferable {non-negotiable}. In this case, debtor owes money to party. Commercial paper can be transferable {negotiable}. Debtor pays parties to whom paper transfers. Transfer can be by endorsement, the same as checks. Transfer can be by writing "pay to the bearer", as for corporate bonds. Transfer can be by delivery.
Legal negotiable-paper possessors {holder in due course} are not accountable for previous instrument-holder actions and have legal title to paper value. Finance companies that buy negotiable paper from merchants can get the money from consumers, even if merchants used deceit or other wrongful actions in original sales. Protection against negotiable paper is to have a restrictive clause in credit agreements to prevent commercial-paper transfer.
Commercial paper {negotiable instrument}| can be transferable. To be negotiable, maker or drawer must sign commercial paper, which must have an unconditional promise to pay, be payable at a certain time or on bearer demand, and be payable to bearer or to order. Negotiable commercial paper is stocks, bonds, over-the-counter stocks, stock exchange transactions, and bank and finance company transfers. If it has conditions, it is a contract.
People can sell property in return for a promise of future payments {credit}. Loans have an interest rate and a cost above purchase price. Loans can have charges for paper work. Loans can have interest charges, monthly charges, service fees, loan fees, investigation or credit report fees, carrying charges, administrative handling charges, and time-price differentials.
Loans have a true annual interest rate, which includes interest and other charges {annual percentage rate}| (APR). Loans have a total finance charge, which is total amount that people must pay back minus selling price. Lender must state loan annual percentage rate and total finance charge, according to Truth-in-Lending Act.
Consumer Credit Protection Act or Truth in Lending Law {truth-in-lending}| applies to all consumer credit arrangements, but not business or commercial accounts. This law allows individuals to sue creditors, within one year, for twice the finance charge, plus court costs and attorney's fees, if creditors intentionally do not disclose finance charges or annual percentage rates. This law prohibits companies from issuing credit cards unless people request one. This law limits credit-card holder liability for lost or stolen cards. This law gives people right to cancel credit deals that give creditors liens on homes, to prevent home foreclosure or seizure to pay debt.
For loans, people can have to assign liens on homes or other assets {collateral}|. If people do not pay off loans according to agreements, lienholders can sell homes or assets to recover loans.
Individuals or companies can pay bonds {surety}| to customers if they do not perform contracts.
People can pay back loans {installment loan}| in fixed or changing monthly amounts {conditional sale} {installment sale}.
revolving
Installment loans can require people to repay loan monthly in amount above a minimum amount. Lender charges interest on unpaid total {revolving charge account}. Annual percentage rate for revolving charge accounts varies from 12% to 20%.
types
Store accounts, bank credit cards, gasoline company credit cards, and nationwide credit-agency accounts, like Diner's Club, Carte Blanche, and American Express, are revolving charge accounts.
finance charge
Getting loans can require fees. Customers {debtor} can agree to pay companies or banks {creditor} a percentage of finance charges each month.
auto loan
Buyer possesses and uses vehicle, but creditor retains ownership until buyer makes all required payments. Buyer cannot resell car without creditor's consent. If no payment causes loan default, creditor can take back car {repossession}.
interest charge
Truth in Lending Law requires exact credit cost and interest charge to be in bills, advertising, and sales. Credit cost is finance charge and annual percentage rate. Loan documents list cash price, subtract trade-in allowance and/or down payment, and state finance charge, annual percentage rate, and total cost, including deferred payment charges.
Home or car loan agreements are loans {promissory note}|, with house or car as security.
Stores can allow monthly payments for a number of years {installment plan}. Interest rate is high.
Stores can set aside items that customer has agreed to buy later {layaway plan}|. Interest rate is high.
Total interest {simple interest} can be a fixed percentage of loan. Monthly payments are a percentage of principal plus same percentage of total interest.
Loans {compound interest} can have period, rate, and factor. Multiply principal by factor to find total payments due. Subtract principle from that to find total finance charge. Divide total payments by months in period to find monthly payment.
examples
1 year, 12 months, at 1% = 1.0100. 1 year at 5% = 1.0500. 1 year at 8% = 1.0800. 2 years, 24 months, at 1% = 1.0201. 2 years at 5% = 1.1025. 2 years at 8% = 1.1664. 3 years, 36 months, at 1% = 1.0303. 3 years at 5% = 1.1249. 3 years at 8% = 1.2597. 5 years, 60 months, at 1% = 1.0510. 5 years at 5% = 1.2763. 5 years at 8% = 1.4693. 10 years, 120 months, at 1% = 1.1046. 10 years at 5% = 1.6289. 10 years at 8% = 2.1589. 15 years, 180 months, at 1% = 1.1610. 15 years at 5% = 2.0789. 15 years at 8% = 3.1722. 20 years, 240 months, at 1% = 1.2202. 20 years at 5% = 2.6533. 20 years at 8% = 4.6610. 30 years, 360 months, at 1% = 1.3478. 30 years at 5% = 4.3219. 30 years at 8% = 10.0627.
People can claim real property {lien}| to insure debt payment.
Real-property liens {attachment lien} can prevent property from transfer during lawsuits. Plaintiff files an attachment writ with county official, and it becomes a judgment lien if property owner loses suit.
People who have won court judgments in lawsuits against property owners can obtain real-property liens {judgment lien} by filing judgment in county where property is, to insure payment of judgment, which is debt. Property is not transferable until satisfying judgment.
States can place liens {mechanic's lien} on real property to insure pay for contractors and construction workers. Most states require mechanic's liens for construction.
Tax returns can be subject to review {audit, tax}. Audits question statements on tax returns.
process
An Internal Revenue Service (IRS) letter asks for records supporting tax-return statements. You must send requested records and a statement defending tax return or request an appointment with an IRS agent to deliver them.
If IRS rejects answers, you can appeal for review with IRS agent at IRS District Director office. However, burden of proof is on you. If review goes against you, you can appeal to Audit Division, then District Director, then Appellate Division of Office of Regional Commissioner, and then tax court.
field audit
Auditors can come to home or business in cases of complicated returns.
probability
Tax returns are more likely to have an audit if you have income greater than $60,000, large deductions, many deductions, cash income, casualty claims, conflict between reported and W-2 income, or conflict between 1099 and reported interest or dividends. Auditing is by random selection or in response to an informer who thinks people broke tax law.
time
If people did not file a tax return, IRS has unlimited time. IRS must question tax returns within three years of due date, unless it suspects fraud or gross income misstatement. If IRS claims fraud or gross misstatement, limit is six years for criminal charges. In case of fraud, IRS has unlimited time to attempt to recover due tax, plus penalties and interest.
IRS Special Agents investigate crime. Penalties {tax penalty} exist for willfully failing to file returns, evading taxes, and filing intentionally false returns. Civil penalties can be up to 50% of tax.
Private businesses must pay tax {business tax} on profits. Private businesses can be corporations {corporate tax}. Businesses take tax deductions for depreciation, inventory changes, and investment credits.
People must pay tax {customs tax}| on property value brought into country directly from another country, unless bought in duty-free zones and so marked.
People must pay income tax {gift tax}| on gifts received, because gifts represent income. Gifts up to $10,000 from relatives are exempt.
People can pay tax {income tax}| on wages, salaries, interest, capital gains, gifts, bequests, tips, and other income.
withholding
Employers typically send part of paychecks to government {withholding, income}.
date
USA income tax is due on April 15, for preceding fiscal year.
form
USA national income tax form {Form 1040} {1040 Form} has various lettered supplements, used for calculating deductions and taxes on businesses, rentals, royalties, interest, dividends, capital gains, child care, and moving.
statements
In January, USA W2 form shows wages or salaries paid and deductions taken by employer. This form must accompany the 1040 tax form. Statements of income from banks, mutual funds, and companies {form 1099} {1099 form} do not need to accompany tax form.
rate
Income tax rate varies from 0% to 36% for federal government and from 0% to 12% for state government.
Taxes {surtax} can be percentages of original tax.
City and/or county tax offices collect tax {property tax} on properties owned, based on current market value, not purchase price. Property has assessment each year.
types
Property types subject to taxation include houses, land, trailers, boats, and cars.
tax
Taxes are typically due in the fall. Taxes are a percentage of market value, typically 100%. Property taxes range from 1% to 3% of market value.
lien
Counties or states can place liens {tax lien} to pay taxes on real property. Counties or states usually wait for tax, sometimes paid by new purchaser, rather than foreclosing.
City or county officials {assessor} can determine property values {assessment}.
best accommodations and dining {first class travel}.
second-best accommodations {cabin class travel}.
second-best accommodations {second class travel}.
third-best accommodations {third class travel}.
worst accommodations {steerage}.
Trusts {trust fund}| are less expensive, more flexible, and less hard to manage than guardianship that state most likely creates for estate after death, until children reach majority. Legal title to property can transfer to another person {trustee, fund} or institution {trust company}, which holds, invests, and administers property for beneficiary named by original owner. States limit time that estates can be in trust. At designated times, trusts distribute property.
People can create trusts {inter vivos trust} {living trust} while they live. Trusts can be revocable or irrevocable. Only agreement of all parties can amend or revoke it. Irrevocable living trusts are not parts of estates. Neither living trust type goes through probate.
Irrevocable trusts {reversionary trust} can be in effect more than ten years or until beneficiary's death, after which property returns to original owner. If trust creator dies, it is like an irrevocable trust. This trust type can save income tax, if beneficiary is in a lower tax bracket.
People can create trusts {testamentary trust} in wills, to begin at testator's death. This trust is part of estate and is subject to estate tax.
trust beneficiary {cestui qui trust}.
Tax advantages and will simplification can cause giving away belongings {estate} before death, rather than using wills. Estates allow giving individual gifts more easily and lessen burden on survivors after death.
People can plan how to dispose of estates {estate planning}.
People can be unable to pay their debts {bankruptcy, person}|.
possessions
Bankrupt people can keep only personal effects and tools of trade. Court sells other possessions, or creditors repossess them.
loans
Loan cosigners assume loans.
involuntary bankruptcy
Creditors can force a debtor into bankruptcy {involuntary bankruptcy}, to prevent him or her from hiding or using assets. This action cannot be against farmers or wage earners.
voluntary bankruptcy
People can declare that they are unable to pay debts {voluntary bankruptcy} and ask court to find a solution. Sane people that have debts can declare voluntary bankruptcy. People must file a petition, creditor names, property list, asset list, income statement, financial history, and monetary-affairs state in USA District Court. If court grants bankruptcy, court official {referee, bankruptcy} leads a creditor meeting. Creditors elect a person {trustee, bankruptcy}, who gathers assets, questions bankrupt and witnesses, and checks for irregularities or fraud. Assets then go to creditors under legal formulas. For no law violations, bankrupt receives a document {discharge, bankruptcy}, which releases person from all debts except taxes, alimony, support payments for dependents, and deceit-caused liabilities. People cannot use Federal Bankruptcy Act again for six years.
types
Bankruptcy can be Chapter 7 or Chapter 11 bankruptcy.
Federal Bankruptcy Act allows debtors to have a majority of creditors approve a petition to repay debts from future wages, by paying regular fixed payments to a trustee, who then pays creditors {Chapter 13 bankruptcy}.
stamp collecting {philately}.
National postal agencies connect {postal union}.
Licenses or customs approval can require a tax {stamp tax} and stamp.
Mail routes {star route} can have service by contractors.
ground package delivery {parcel post}.
Mail {registered mail} can have registration numbers, for tracking.
no extra charge for out-of-town addresses {rural free delivery} (RFD).
regular airmail {first class mail}.
low priority mail {second class mail}.
lowest priority mail {third class mail}, for circulars.
Thailand {baht}.
gold coin {bezant}.
Gold, silver, platinum, or palladium bars or ingots {bullion} are not coins or jewelry.
Canada {Canadian dollar}.
Greece {drachma}.
Italy {lira}.
Sumerian, Babylonian, Greek, and Hebrew talents equaled 60 mina units {mina}. One mina equaled 60 shekels.
Mexico and other Latin American countries {peso}.
Egypt, Lebanon, Sudan, and Syria fractional unit {piastre}. Spain and Rome used piastres.
Brazil {real, money}. Eight Spain reales equaled one piece of eight, until 1859.
China {renminbi}.
Russia {ruble}.
India {rupee}.
Indonesia {rupiah}.
Israel {shekel}.
Middle East silver weight {talent} was approximately 30 kilograms. An Attic talent equaled 6000 drachmas. Sumerian, Babylonian, Greek, and Hebrew talents equaled 60 mina.
Japan {yen}.
Germany/Switzerland {mark, money}. One German mark equaled 100 pfennig, until 2002.
Germany {pfennig}. One mark equaled 100 pfennig, until 2002.
Spain and Spanish America gold coin {doubloon}. One doubloon equaled two escudos or 32 reales, until 1859.
Spanish coins {piece of eight} {peso de a ocho} {Spanish dollar} were worth eight reales, until 1859.
Spain {peseta}. Spain used peseta from 1869 until 2002.
England {farthing}. One farthing equaled one-quarter pence, until 1960.
England {ha'penny} {halfpenny}. One halfpenny equaled one-half pence, until 1969.
England {pence}. Twelve pence equaled one shilling, until 1971.
England {shilling, money}. Twenty shillings equaled one pound, until 1971. One shilling equaled twelve pence.
England {crown, money}. One crown equaled five shillings, until 1965.
England {pound, money} {pound sterling} {quid}. One pound note [1816] equaled twenty shillings, until 1971, and now equals 100 pence.
England {sovereign, coin}. One sovereign is a 22-carat gold coin with nominal value of one pound, first minted in 1489 for Henry VII but put into circulation in 1817.
England {guinea, money}. One guinea equaled one pound and one shilling, from 1813 until 1971. From 1683 to 1813, English gold guinea coins were equal one pound sterling.
France {franc}. One franc equals 100 centimes.
France small coin {sou} {sol, coin} {solidus, coin} equaled five centimes.
one quarter USA {two bits}.
one dollar USA {simolean}.
10 dollars USA {sawbuck}.
private paper money {shinplaster}.
metal bar or brick {ingot}.
money {jack, money}.
readily available money {kitty}.
accepted money {legal tender}.
USA bills {long green}.
money {lucre}.
small money amount {mite, money}.
money for related expenses {pin money}.
small money amount {pittance}.
money in pocket or purse {pocket money}.
USA bills {scrip}.
specific coin {token, coin} for specific machine.
money beads {wampum}.
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Description of Outline of Knowledge Database
Date Modified: 2022.0225