Top U.S. official pledges to reform ties to Big Oil

Almost one month from the day the U.S. oil rig, Deepwater Horizon, exploded and sank in the Gulf of Mexico, Secretary of the Interior Ken Salazar says he’s ready to address the problem head on, finding who is to blame for the massive oil spill and reform the way the government does business with the oil industry. Salazar seems to feel that the oil company BP should be held accountable, but others argue it is the Department of Interior agency MMS who might have “dramatically underestimated the potential risks” of drilling in the Gulf of Mexico. In fact, in an article on CNNMoney.com, Senator Ron Wyden of Oregon stated that MMS (Minerals Management Service) who is responsible for managing natural resources in the waters of the Gulf of Mexico have been in denial about safety problems for years and are the ones who may be responsible.

The horrible truth is that this massive oil explosion on April 20, 2010 killed 11 workers and continues to leak oil undersea at a rate of 210,000 gallons per day. No matter who is at fault, Secretary of the Interior Ken Salazar is still proposing legislation that would give the Department of Interior an additional $29 million to what he says, “inspect offshore oil and gas platforms, create new safety regulations, and to study the spill’s impact”. The secretary has also stated that his department, along with the Department of Homeland Security, plan to offer “robust” recommendations in a 30-day safety review as mandated by the White House.

Until then, the good news is that the government has ceased issuing any permits for new drilling projects in the Gulf until a full explanation for what caused the spill in the first place can be brought to light.

Read the full article here.

CNN News: Tax Filing Tips

Last week, I appeared on CNN news to provide tax filing tips to help get taxpayers prepared for the upcoming April 15^th deadline. If you missed my interview, then you can watch it in the embedded video below. Also, make sure to watch The Today Show next Friday when I will be making an appearance in the 10 AM EST hour.

CNN Headline News Appearance

I was interviewed last Friday during a segment on CNN’s Headline News. During my appearance I offered general tax season advice and also explained how the IRS is going to be extra aggressive to recoup lost revenue. If you missed my interview then be sure to check it out in the embedded video below.

Economists Predict Credit Crisis Nearing an End

According to this article on CNN Money, economic experts are predicting that the credit and housing crisis will dissipate in the second half of this year. However, they are expecting the economy to continue it’s downward spiral, and the unemployment rate is likely to increase.

“A growing number of economists believe the country is on the brink of a recession or in one already, dragged down by all the problems in housing, credit and financial markets. Now 56% of the economists think the economy has started or will enter a recession this year. That's up from 45% in a survey in February. If there is a recession, it probably will be short and shallow, economists said.”

“Forecasters downgraded their projections for economic growth. They now predict the economy, which grew by 2.2% last year, will slow to 1.4% this year. That is lower than the 1.8% growth projected in February. If the new figure proves correct, it would mark the weakest growth since the last recession in 2001.”

Mutual Fund Taxes To Break Records

According to CNN Money, major mutual fund companies have begun estimating this year’s taxable distributions and the taxes are set to break records yet again. Last year their tax bills totaled $23.8 billion, which was the largest since 2000, but this year’s total is expected to be over $24 billion. One reason for the ever-growing tax bill is the past years "wild market," with plunging stocks and a soft housing market.

Advice On Being Audited

CNN Money has an article from Gerri Willis on what to do if you get an audit notice from the IRS. In October the IRS will begin reviewing over 13,000 tax returns form 2006 and will continue with similar audits throughout the next few years. The article give more details on what do if you are audited, but the main points are to hire a professional, get organized, and stay calm.

Tax Friendly States

CNN has put out a list of the most tax friendly states for 2007. The list was put together by comparing each states total state and local tax burden in 2006. That burden was determined by what residents pay in state and local income taxes, property taxes, sales taxes, luxury taxes and fuel taxes, among others. States that top the list include: Alaska, New Hampshire, Tennessee, Delaware, and Alabama. For the full list go to CNNMoney.com.

Expensive Tax Mistakes To Avoid

CNN.com has added a helpful article with advice on some expensive tax mistakes to avoid when preparing your tax returns this year. Some of their advice includes: avoid paying taxes with a credit card, avoiding refund anticipation loans, setting up an installment agreement, and paying on time. You can read the full article by clicking here.

Top 5 Tax Audit Red Flags

CNN has compiled a list of the top five red flags in tax returns that might cause you to get audited. Included in the list is making too much money, giving too much to charity, taking too many credits, making careless errors, and failing to submit an alternative minimum tax schedule (if your earnings qualify). For more details on each of the five red flags, check out CNN.com.