To encourage their employees to purchase environmentally friendly hybrid cars, several companies reportedly are offering “rebates” or cash incentives to their employees in select areas to offset the purchase price of these vehicles. Just like other forms of compensation, these cash incentives are taxable compensation.

Employers should include the cash incentive amounts in employees’ compensation reported on year-end Form W-2 earnings statements. The cash incentives also are subject to income tax withholding and employment tax. The tax code provides for an exclusion from income for employee discounts only if the employer produces the product and certain other requirements are met.

The tax code already includes incentives for the purchase of hybrid cars. The Alternative Motor Vehicle Credit for hybrid vehicles applies to vehicles purchased on or after Jan. 1, 2006, and it may be as much as $3,400 for those who purchase the most fuel-efficient vehicles.

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A mining community has struck gold–with tech jobs.

Topping the latest ranking of out Best Cities for Jobs list is Salt Lake City. The Crossroads to the West, an economy that has been predominantly driven by the mining and steel industries, has developed into a service-based city and has become a tech sector hub for digerati migrating from Silicon Valley.

The city also had almost the lowest rate of unemployment in 2006, a tick behind Honolulu, and ranked 19th overall.

To compile the rankings for the Best Cities for Jobs list, we used five data points, weighted equally: unemployment rate, job growth, income growth, median household income and cost of living for full-year 2006 (only partial data is so far available for 2007). We measured the largest 100 metropolitan areas, as defined by the U.S. Census Bureau, and obtained the data from Moody’s Economy.com.

It’s important to note that this list doesn’t weight for specifics like job composition or job stability, two significant characteristics that will appeal to any job seeker.

Mark Zandi, chief economist and co-founder of Moody’s Economy.com, said this ranking shows job market strength but acknowledged these limitations. “There’s nothing directly about quality or stability of a job market [in the ranking],” Zandi said.

“Some years are more volatile. Boom years are followed by years that don’t quite measure up. For most people, a market that is more stable is most desirable, and this analysis doesn’t account for that,” he said.

Raleigh, N.C., led the pack before the full 2006 data were available. (Forbes.com published a Best Cities For Jobs list in February.)

“They’re both strong economies and very solid job markets,” Zandi said of Salt Lake City, versus Raleigh. “It’s Yankees-Red Sox. What’s the difference? There is no real fundamental reason why Salt Lake is now No. 1.”

New to the top 10 are Tulsa, Okla.; Albuquerque, N.M.; Wichita, Kan.; and Oklahoma City for income growth. Las Vegas just missed the top 10 by a spot but showed the second-best job growth. In 2005, it was ranked No. 48.

San Jose, Calif., posted the most significant jump, from No. 91 in 2005 to No. 14 in 2006. The third-largest city in the Golden State has the highest median household income, at $87,869. According to the data, that figure is projected to increase to $92,048 by the end of 2007 and $94,209 in 2008. However, it’s also the priciest city on the list in which to live.

Normally, one might expect the great metropolises of the U.S. to rank higher than they do. New York City, arguably the world’s financial capital, is listed at No. 63, a substantial change from its 99 ranking in 2005. Job growth overall is expected to increase along with job growth in the Big Apple.

San Francisco is at No. 31, up from 86, while Washington, D.C., fell to 32 from No. 5 in 2005.

Raleigh, however, remained among the five best in the job growth category. Phoenix reigned at No. 1, largely because of housing development. Given the recent housing bust, it will most certainly be dethroned in that category. The same goes for Florida–Orlando, Sarasota, Tampa and Fort Lauderdale won’t be so prominent for 2007 considering the impact of the downtrodden housing market. The next list will be “almost upside down,” Zandi said.

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Clearing Past Debt With the IRS

It is possible to eliminate all delinquent taxes in a Chapter 7 bankruptcy. In general, there is a multiple-step test to determine whether tax debt can be eliminated. First, you should order tax transcripts directly from the IRS. Depending on your tax situation, you might want to order transcripts for the past 10 years.

More importantly, Joe, you cannot be afraid of the IRS. I know most people consider the IRS to be like any other debt collector. This could not be further from the truth. In my experience, the IRS is easy to work with. Whether it is because they do not have the same pressures as debt collectors or whether the government simply hires more patient people, I don’t know. But the IRS is the only debt collector that does not get angry when told “I cannot pay right now.”

Unlike a debt collector who will try to corner you into a position and demand payment so that your delinquent account can be resolved, the IRS is not going anywhere. Instead, the agent simply wants to know what is going on. Communication is the key to working with the IRS. Hiding from the IRS is counterproductive and usually will result in more problems.

Here are the significant parts of the step-by-step analysis attorneys use before advising a client about the status of delinquent taxes. Please note that there are exceptions to each of the following points:

Filed tax returns: You must have filed all tax returns. You may have requested an extension for filing; this could affect your ability to eliminate the delinquent taxes.

Taxes are at least three years old: The taxes you include in the petition must be at least three years old. For example, if you filed your tax returns on time and still owe taxes from 2003, then it is possible that these taxes can be eliminated.

No IRS assessment in the past 180 days: This is a very important part in determining whether the delinquent taxes are dischargeable. As you can imagine, the IRS does not just sit back hoping you’ll pay. Unfortunately, there are too many issues to discuss in this column regarding tax assessment and the categorization of the taxes. But at a minimum, you can review the tax transcripts to determine whether the IRS has assessed your tax returns in the last 180 days.

You did not try to evade the IRS: This issue must be considered on a case-by-case basis. Even though you can pass the other three tests, the IRS could challenge your bankruptcy. The above tests do not apply if the IRS believes that you have tried to avoid paying taxes and can prove that you had money available to pay.

For example, I heard a story from the IRS in which a debtor owed delinquent taxes and earned a good income. However, the debtor decided to deposit all his paychecks into his girlfriend’s checking account in order to show that he personally had no income. The IRS discovered this fact and challenged his bankruptcy on the grounds that he was intentionally evading his obligations. The IRS won. As a result, the debtor now has a bankruptcy on his record and thousands in tax debt that must be paid back, with interest and penalties.

Additionally, I once was hired by a debtor who filed a bankruptcy five days too early and could not eliminate a significant amount of IRS debt. As a result, the debtor was forced into a Chapter 13 bankruptcy rather than eliminating all his delinquent taxes. Had an attorney reviewed the transcripts prior to filing, these taxes may have been eliminated.

You do not need a bankruptcy attorney to determine whether your IRS taxes are dischargeable. However, an attorney would let you know whether it is likely that the taxes can be eliminated. Even if you do not hire one to file your bankruptcy, it may be worth the cost to have an attorney review your tax transcripts.

Bankrate

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From CNBC:

The wealthiest Americans have been in the spotlight for reasons ranging from public outrage over lavish lifestyles during the recession to executive bonuses in the midst of the financial crisis. The Occupy Wall Street movement was perhaps the most visible culmination of these concerns, broadly protesting against the divide between the majority of the U.S. population and the ultra-rich, referred to by the protesters as the “one percent.”

The question arose: Who are the one percent, and where are they from? In fact, the composition of the group varies from business people, doctors, lawyers and financial professionals to celebrities, farmers and even government workers. But where do these high-earners live?

A UHNW individual is defined by Wealth-X as anyone with at least $30 million when accounting for a range of assets, including shares in companies, real estate, cash, art collections, private planes and other investable assets.

As it turns out, some cities are magnets for UHNW individuals, and the cities with the most of this wealthy class average approximately one in 3,075 people, according to Wealth-X, while the 27,540 UHNW individuals in the top 10 cities have a combined net worth of $3.6 trillion, or 6.2 percent of the total U.S. net worth. “Certain geographic clusters generate and attract wealth,” said Wealth-X co-founder David Friedman. “A concentration of UHNW individuals is certainly indicative of an area’s overall economic health.”

So, which U.S. cities have the most ultra-high net worth individuals?

1. New York

As individuals we can’t do much about price hikes but Gregg Laskoski of GasBuddy.com says there are some things we can do to minimize the damage done to our personal finances every time to fill the tank. In the attached clip Laskoski discusses 5 ways to find cheap gas prices.

1. Track Prices Via Websites and Mobile Apps

Is your local station gauging you? The only way to know is to be aware of what you should be paying. Thanks to the Internet, drivers can drill down and find the average price by zip code. Laskoski’s Gasbuddy.com, Gaspricewatch.com or scores of other web sites or mobile applications make it easy to find gas stations taking the least amount of profit from consumers.

2. Inconvenience Yourself

It shouldn’t come as much of a shock but the easier it is to find a gas station, the more you’re going to pay. Laskoski says gas stations just off the highway cost more than others just down the way. If you’re willing to spend an extra ten minutes in your car you can find stations that make it time well spent. And, avoid affluent areas; that gas station conveniently existing right in the middle of town is likely charging a premium.

3. Fill Up at the Right Time

Urban legend says gas prices are lowest during hours when most folks are sleeping, from midnight to 5am. Laskoski debunks that myth, but says there is a best time to fill-up that most people wouldn’t think of: Wednesday. Gas prices are highest on weekends when the most people are out on the road. Filling up in the middle of the week saves you both sleep and money.

4. Mind the Fine Print on Your Credit Card & Reward Programs

Many companies offer “club” membership at their stations but the real savings come somewhere else. Liskoski says to look for partnerships between your local gas retailer and other merchants. Often times pairing the right card with the right grocery store is where you’ll find the benefits.

5. Get Out of the Car (Opt for Self-Service)

Despite the near-death of full-service, many gas stations will give you the option of having an attendant fill it up. The next time you’re tempted, take note of the premium being charged per gallon and start doing some math. At a reasonable-sounding quarter per gallon premium, you’re going to pay $5 more to fill a 20 gallon tank. One stop per week for a year works out to $260 a year for the right to sit in your car.

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