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The Internal Revenue Service released a memorandum on June 19, 2009, clarifying the rules governing non-custodial parent’s ability to claim a dependency exemption for their child.

Previously, the Service allowed a non-custodial parent to claim an exemption for a child if the custodial parent signed a written declaration releasing claim to the exemption and the non-custodial parent attached that declaration to their return. IRS Form 8332 is available to document this release. In Publication 501, Exemptions, Standard Deduction, and Filing Information, the Service has stated that a non-custodial parent may attach certain pages of a divorce decree or separation agreement, instead of Form 8332, if the attached pages include the information required on the form.

A problem arose in the ambiguous language of the actual code. It stated the release of a claim must be on Form 8332 or, if not on such form, must “conform to the substance of such form.” The ambiguity begat creativity and family law attorneys began drafting the declarations into settlement agreements. Taxpayers would then simply need to attach a copy of their divorce decree. This eliminated the need for Form 8332 and therefore, the need to speak to your ex-spouse every year requesting a signature.

The recent memorandum was directed specifically at the question whether it was allowable for a parent who does not have custody to prove their right to the exemption by submitting proof of satisfaction of a condition in a divorce decree. The condition was that the non-custodial parent may only claim the exemption if current in his or her support obligation. This raises the problem of substantiation.

In the June 19 memo, the Service concluded the release must be on Form 8332 or must be a document conforming to the substance of Form 8332 and has as its only purpose the release of a claim to exemption. A divorce decree, separation agreement or parenting plan allowing a non-custodial parent to claim an exemption for a child, only if a condition is met, does not conform to the substance of Form 8332. For tax years beginning after July 2, 2008, a settlement agreement, decree or judgment may not be used by a non-custodial parent to substantiate a dependency exemption for a child, even if accompanied by a statement intending to show the condition in the decree or agreement was met.

These regulations reflect the Service’s concern about substantiating a claim to a dependency exemption for a child and are intended to avoid problems of proof, minimize controversy, and minimize costs to parents. The change does not preclude a non-custodial parent from claiming the exemption; it simply requires more care be made to make sure this is accomplished.

It may be helpful to include language stipulating the custodial parent will execute Form 8332 on a yearly basis. This follow up challenge can be alleviated by insuring the newly single parents consult a financial advisor with specific experience in the field of divorce financial planning. Two parents claiming an exemption for the same child will end in IRS audits for both and possibly bring a settled case back into the courtroom. The Service has clearly stated it is not permissible to include any language that could require substantiation.

By: Justin Reckers

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Are you in need of a personal loan? Do you need this loan to be at least $5,000? How is your credit? Most people now are experiencing credit problems and fall into the bad credit category. You are in luck if this is you because there are still ways to get $5,000 Personal Loans For Bad Credit. Here are your best options.

You should always check with your bank before you do anything else. some banks, especially credit unions and smaller banks, are willing to do loans for their member that have been with them for quite some time. You will especially be able to get a loan if you have gotten one through a bank before. Another helpful thing is if you have retirement or investment accounts with the bank that can be used to help secure your loan.

Regardless of your situation check with your bank to see if there is anything they can do to help you out.

Your next option is to search for bad credit lenders. There are a handful of lenders that will do personal loans of $5,000 or more for you if you have bad credit. These lenders are not always the easiest to find and will often require that you have something on your credit that you have paid on time for at least 6 months. This could be an auto loan, credit card, mortgage, or anything else that shows up on your credit.

Another option is to use Prosper. This is an online lending marketplace that allows you to place an ad, like an auction, and allow private individuals to bid on your loan. This is a great way to get your loan funded without worries of what your credit looks like.

The last resort is to use a combination of payday loans or cash advances. The maximum you can usually get is $1,500 so it might take four or five of these loans to get you the amount you need. The only problem with doing these to get $5,000 Personal Loans For Bad Credit is that you will have to pay them back pretty quickly and that can be difficult.

By: Gressly Stevens

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The actions of Bernie Madoff and Kenneth Lay (Enron Co.) made quite an impact on business America. While thousands lost everything they had, the U.S economy lost something far greater; their ethical backbone and credibility. Since then, many consumers, corporations, and world economies put the U.S. economy under a microscope. GAAP and industry standards have been scrutinized, revised, and reformed. Despite the recent changes and strengthening of U.S. GAPP, the adoption of the International Financial Reporting Standards (IFRS) has become a potential possibility.

The adoption of IFRS has several positive attributes, with its greatest being the improvement of financial reporting to global investors, the facilitation of cross-border investments, and the integration of capital markets. Given that the global “IFRS network” has already reached a significant scale, the United States would benefit greatly by conforming, rather than remaining in the smaller underdeveloped IFRS network. It is difficult to gauge the magnitude of the effects but several studies and beliefs exist regarding the various effects of adopting IFRS.

There are U.S firms that already have a global presence with international operation that would realize significant cost savings from the use of a single set of financial reporting standards. Being a foreign subsidiary of the U.S requires compliance with the domestic reporting standards of their domicile and U.S GAAP. Additional costs arise from the duplication and translation of financial reporting information.

Empirical studies show that the costs and benefits of IFRS adoption vary amongst firms. Evidence shows that voluntary IFRS adoption typically results in benefits exceeding costs. Voluntary adopters tend to have similar characteristics; larger in size, more likely to have international dispersed operations, more diffused ownership, and rely more on outside funding. In some respects, GAAP creates barriers for many U.S. companies limiting both expansion and growth. Consistent with the notion of comparability benefits, the primary beneficiaries of IFRS adoption would be the U.S. multinational firms, as well as their investors.

Several other patterns have emerged from studying foreign nations that primarily use or have already adopted IFRS. All accounting standards use discretion, since several figures stem from evaluations and approximations (such as the useful life of an asset, the value of company goodwill, etc). IFRS is no exception, and whether firms implement IFRS in ways that make the numbers more informative (such as footnotes and recognition) still poses a threat to the reliability of information. A single set of accounting standards does not guarantee the comparability of firms’ reporting practices, since enforcement is not the sole influence in achieving successful results. Ethics and other variables will always play a factor in the exercise of any accounting standards. It is essential to realize that the key elements of an institutional infrastructure fit and reinforce each other.

The best results have been seen in countries with strict enforcement regimes and institutional structures that provide strong reporting incentives. These countries are more likely to have discernable capital-market effects when using IFRS reporting. A “serious” commitment to IFRS has shown larger cost of capital and market liquidity benefits compared to adopting IFRS as a “label”. The comparison of accounting numbers under German GAAP against the use International Accounting Standards (IAS) for the same years reveal greater total assets, and book value of equity under IAS.

Mixed results including the benefit of mandatory IAS, do exist however between various industries. Regardless, a study spanning 26 different countries, with strict enforcement regimes and strong reporting incentives consistently showed an increase in market liquidity of 3-6%, a decrease in firms’ costs of capital, and a corresponding increase in equity valuations. Voluntary adopters of IFRS have better initial reporting incentives and are more responsive to institutional changes (switching to IFRS), resulting in greater benefits over the mandatory adopters. This raises the question whether the benefits received reside in the type of accounting practices and standards used or instead the incentives and changes that lie in other institutional factors. Perhaps creating standard incentives for strict adherence to the current GAAP would have a similar effect as adopting IFRS.

The intensity of public enforcement efforts in the U.S is unparalleled not just in terms of rules and regulations but also the staffing levels and budgets, actual enforcement actions, and sanctions imposed. The primarily enforcement agencies are the Securities Exchange Commission (SEC), U.S Congress, and the courts. In this aspect, the U.S stands as one of the greatest potential beneficiaries of IFRS.

In comparison, U.S. GAAP and IFRS are based on the same underlying philosophy, roots used in common law tradition, and capital-market orientation. In fact, U.S. GAAP constitutes a set of high-quality standards that is fairly similar to IFRS and expected to be even closer by the time the U.S may adopt IFRS. The IFRS adoption would be an easy transition insuring the same quality and benefits already enjoyed with GAAP. The comparability benefits and network effects of IFRS, however, provide a strong rationale to make the switch. Even if these benefits are modest, they are recurring in nature and accrue in the long run.

The U.S. uses GAAP that already mimics IFRS, has a large number of international operations, and monitors business through a strict enforcement regime. When considering the switch we must evaluate the cost-benefit trade off. The cost of IFRS would be the initial transition and the shift of accounting authority to the FASB. In return, America would benefit from the comparability benefits previously discussed, which are modest but accrue over a long term basis, and the recurring cost savings of reporting, which mainly effect multinational U.S. companies. Regardless, U.S. GAAP is slowly evolving through its adoption of various standards and practices of the IFRS. Others, including myself feel that the capitalist nature of a free market society will eventually meld the two standards together pushing the global economy to a new level of success.

By: Matthew Malriat

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Physically and mentally challenged disabled people also can take out a loan for their day-to-day necessities. Loans for disable people are specially carved out loans for such person. But these loans are given to them on a certain condition. These can be said a ideal loans for disabled people. They do not have to depend on their friends and relatives for urgent expenses. Due to their physical barriers, they cannot go to every friend when the monetary need is urgent. So, the loan can be of good and instant help to them.

The only eligibility is that the applicants must be getting benefits under Department of Social Security. The DSS benefit means that these people get a certain amount of monetary help from the government.

Loans for disable people are based on the DSS benefit. The lenders will also see your bank account to check if there is sufficient saving. Usually, the account should have at least

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