Archive for April, 2009

Income Tax Audits Are no Picnic

Monday, April 13th, 2009

The IRS doesn’t send birthday cards. When they invite you to a party, it’s an invitation to headaches and worry. Nobody meets the news of an IRS tax audit with a smile.

Yet IRS tax audits are a reality, especially for high-income earners, the self-employed or those who claim a large number of deductions. Keep in mind that the IRS only audits 1 percent of all tax returns under $100,000, but 2 percent of all tax returns over $100,000. The IRS considers that the more money you make, the more likely they are to find discrepancies in your return that results in more money for the government.

There are things you can do from the beginning to avoid ever being audited in the first place. An income tax audit, sales tax audit is no picnic, and you’ll save yourself a lot of headache if you can avoid them in the first place.

For obvious reasons, avoid math discrepancies. The IRS will check your figures to see if they add up. The easiest way for them to look more closely at your return is fuzzy math. Making sure the numbers are right will keep your return from attracting attention.

The IRS uses a formula to see find the income tax audit, sales tax audit that may bring in the most discrepancies and get the government the most money for the cost of the audit. The IRS uses a secret equation to determine the DIF score in order to select returns with the highest probability of having discrepancies that will earn the government more money.

Therefore, if you have deductions for unusually large amounts, you’ll need to be prepared to prove it. If you make sizable contributions to a charity, claim those deductions by all means, but have the paperwork in case the government decides to ask.

It’s very important to be able to substantiate every write-off. Keep receipts for every deduction, and be specific about numbers. Avoid reporting round numbers like $500 or $200 that sound more like estimations or guesses than specific amounts. Even if you’ve lost the receipt, some tax attorneys can provide the paperwork to legally document the expense.

Unless your tax return attracts attention, you’ll probably never be audited. The best way to avoid an audit is to avoid giving the IRS any red flags. It can save you considerable stress and worry in the end.

3D Scanning for Reverse Engineering

Monday, April 13th, 2009

All engineers know that hands-on design is much easier than CAD conceptualization. Building a prototype and reverse engineering is often a much smarter way to design as well, since the prototype can be seen to work and then designed retroactively. But reverse engineering requires precision that is uncommon to human faculties, and for contoured, complex, or small objects, creating a 3d representation in a CAD environment can be a challenge – to say the least. By designing prototypes to have scanned in 3 dimensions, manufacturing and design companies can drastically reduce the time from design to functional prototype by working backwards and starting with the prototype. From there, in-house engineers or engineers employed by a 3D scanning company can help to reverse engineer the product and create specs and diagrams that would otherwise require shear foresight and creativity to get right on the first try. By building a prototype that works right away, and designing it retroactively, the costly trial & error of design is practically eliminated.

Assuming a product has already been designed – conventionally or reverse engineered from a prototype – manufacturing will commence and require hawkish eyes to make sure that finished goods meet their specifications. Even for parts manufactured entirely outside of human influence, errors in production are not uncommon, but also not easily detectable to the naked eye. One way to ensure that manmade and machine-made cogs alike are compliant with specifications is to employ contract inspection services that will analyze items coming off the line. With the use of advanced laser and 3d imaging, firms can see that the goods their customers receive conform with prototypes and CAD drawings, and will function properly. This, in turn, reduces the waste of defective products, improves product quality, reduces inspection (and thus time to market), which will translate into a better customer experience and higher profit margins for the businesses that employ technology for QA rather than fallible human eyes and measurements.

For the past twenty years, production has become more automated because automation is more cost-effective, more reliable, and faster. All three of these benefits translate to design and quality assurance processes when laser and three dimensional imaging are employed in the service of reverse engineering and contract inspection of finished goods. While the cost of 3D imaging technology is prohibitive for many firms, there are 3d imaging companies that specialize in translating prototypes to CAD design and manufacturing specifications and diagrams that can drastically improve the efficiency of firms’ engineering processes.