Feral Jundi

Wednesday, December 18, 2013

Finance: 2013 Taxes For Contractors, By CPA Luke Fairfield

Filed under: Cool Stuff,Finance — Tags: , , , , , , , , — Matt @ 12:02 AM

This is the annual letter that Luke sends out, that is filled with excellent tips for this year’s tax season. What is new this year is that Luke has a website you can go to for your own research. When he gets a Facebook or any other social network stuff up, I will post that as well.

For tax news, Luke is up on the whole tax thing going on in Iraq and how that is playing out for contractors. Also he has some valuable tips for how to deal with audits–meaning use a professional to deal with the IRS! Check it out and please contact Fairfield Hughes at their website if you want services. I am not working at this office and I am not the guy to ask if you have tax questions.

Also, I have posted the 2013 newsletter under the Taxes For Contractors tab up top so you can find it easily. A quick search and you will find my past postings on taxes as well. –Matt

 

 Greetings!

For all you ex-teams, ex-pats, ex Special Forces, security contractors and operators out there I hope this letter finds you well.  In an attempt to keep you current with your tax filings I am sending out this letter as a year-end reminder that 2013 is almost over.  There are some very important changes this year that could impact many of you as it relates to the IRS’s continued, heavy audit interest in the foreign income exclusion.  If you read nothing else, read the section below updating you on this topic.  As always feel free to pass this email on to anyone in your situation who could use the help or anyone that I missed on this email. As always, I will do my best to minimize your tax bill and provide relevant advice for your situation.

Important Updates for 2013:
1) Please check our website at www.fairfieldhughes.com.  It has some valuable info and answers to many frequent questions.
2) It is critically important that you retain copies of your Diplomatic passport and regular passport, overseas orders, LOAs, overseas expense receipts, VISAs and anything else that can prove you were overseas in a combat zone.  Keep these for at least 5 years.  Do not turn in your passports without making a scanned, color copy of them.
3) Should they choose to do so under audit, the IRS now has the ability to obtain an entry report from CBP and Homeland Security to verify your time in the US.
4) Zac Silides has joined our firm and is a licensed attorney.  He is able to assist with many business tax issues such as starting business entities as well as preparing family and living trusts.
5) Iraqi tax withholding.  Employees of Triple Canopy as well as Global have had Iraqi tax withheld on their salary in 2013.  Your company facilitated this by reducing the amount of federal withholding.
a. You are allowed to claim a credit for the Iraqi tax paid which directly offsets federal income tax.
b. Be aware that if you claim the foreign income exclusion, you are not allowed as large of a foreign tax credit.
6) Audits on the foreign income exclusion have greatly increased.  If you worked for Blackwater in 2009 chances are you were audited.  With Triple Canopy taking over the Blackwater contract, IRS audits followed this change and 90% of all audits on our clients were current or ex TC employees. If you have not heard of a teammate or fellow employee who has been through an audit I would be surprised.  These audits continue to spread from ex-Blackwater and TC employees to nearly anyone filing for the foreign income exclusion.  As a result, I would recommend being even more cautious in claiming the foreign income exclusion in 2013.  After a year of dealing with these audits, the below points stand out as noteworthy and important.
a. It is EXTREMELY important that you contact me in the event that you receive an audit notice.  Do not make contact with the auditor for the same reason that you do not file your own tax return.  Leave it to professionals with experience dealing with these situations; the results will almost certainly be better with less risk to you.

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Sunday, December 15, 2013

Industry Talk: Pseudo Operations And The Relentless Pursuit Of Kony

But then she reminds herself of the numbers. In the past two years, L.R.A. violence has dropped by ninety-three per cent, from seven hundred and six killings in 2010 to only fifty-one in 2012. According to Resolve, a U.S.-based analysis and advocacy group, the L.R.A. had approximately four hundred fighters in 2010; by June, 2013, they were down to a hundred and eighty Ugandan fighters and fifty armed zande—abductees from Congo and the Central African Republic.
“It was only ninety-three per cent because of relentless pursuit,” Davis said. “If we pulled out, that would plummet. I know that is something to celebrate. And if Kony dies a natural death under a mango tree someday, I’m O.K. with that—I know he’ll see justice, as long as he is not hurting kids and women.”
“We don’t need accolades,” Davis told me. “We are not bleeding at the end of the spear, getting pursued by crocodiles and killer bees. The Ugandans are.” And they show no signs of letting up.

Thanks to Adam for sending this one, and a big congrats to Eeben Barlow and his team for all the work they did on this contract. Also, I have much respect for Shannon Sedgwick Davis and her crew for actually taking action and having the courage to contact Eeben and funding this contract. You did the right thing. A hat tip as well to the Ugandan forces who embraced this training and made it work for them out in the field.

What makes this story significant is the fact that pseudo operations was taught to the Ugandan military by a private company, and there are actual tangible results that we can point to after they received this training.  Although I wouldn’t mind seeing a more academic study applied to how much of  an impact pseudo operations really had, it would seem to me that these initial findings are encouraging.

The other really cool aspect of this story is that for those of you that follow the blog and read the discussions I had with Eeben Barlow a couple of years ago about the concept of pseudo operations here and here,  you will quickly realize that in fact, something positive did come about from those conversations. That someone reading those conversations and posts over at his blog, whom actually had the money to fund such a contract, came forth and embraced the idea for the relentless pursuit of Joseph Kony and the destruction of his LRA. Here is a quote referencing how this group came to Eeben via his blog.

Poole had been reading a military and security blog written by Eeben Barlow, who had been a commando and a covert agent for the South African apartheid regime’s most notorious squads. He was also a visionary and a dreamer. Back in 1997, he told me that his goal was to create the best and biggest military consultancy in the world. The private army he founded, Executive Outcomes, hired itself out, in the late nineties, to end civil wars in Sierra Leone and Angola in exchange for lots of cash and access to diamond and oil fields.
Davis went to meet Barlow in South Africa, and, after a family dinner with his wife and son, he told her he would take the job—and that he did not want a fee. He did not want to make money on this, he told her; she would just have to pay his trainers and underwrite his expenses. This was the kind of partner she was looking for.

 Pretty cool. Here is a quote about the pseudo operations training the Ugandan’s received.

The effects of the training were evident. Charles, a lieutenant from West Nile, told me that in the old days they would unleash a thousand bullets every time they encountered the L.R.A. Now, he said, they would wait and track in silence. The South Africans had taught them tactics for crossing rivers with logs and ponchos, how to swim and how to avoid crocodiles, which had killed one soldier and attacked another. “The South Africans taught us ‘pseudo,’ ” Charles said. “You behave like your enemy so you can approach him, or even infiltrate inside the camp. We pleated our hair like they do, put on civilian shirts, uniform pants. Sometimes we went barefoot. We used to travel forty or forty-five in a team; now we can go six.”

Here is the quote about the raid that missed Kony. It certainly hit intel pay dirt though!

In September, 2011, the first special-operations group trained by the South Africans crossed into South Sudan and caught Kony by surprise at a meeting with all his commanders. He escaped, but the Ugandans took back a haul of valuable intelligence: satellite phones, a computer, and diaries. Defectors later revealed that the L.R.A. fighters were baffled by the attack: Was this some new Ugandan army? After the raid, Kony lost contact with his entourage. He roamed the bush alone with one of his pregnant Sudanese wives, and helped deliver her baby—one of probably more than a hundred small Konys now in the world. When he reëmerged, he was so furious that he demoted all his commanders. According to defectors, he had moved to a new camp, in southern Darfur.

And this is what DoS thought about the whole thing.

By the end of 2011, Barlow and his trainers were gone. “Even folks at State and the Department of Defense acknowledged the training Bridgeway offered was very helpful in advancing the Ugandan Army’s capacity,” a Washington-based analyst told me. But they are not yet willing to say so publicly. When I asked a State Department official about the significance of Davis’s work, he refused to comment beyond noting that “the Bridgeway Foundation is an independent organization that does not have an official relationship with the U.S. government.”

So with that said, I think Eeben and his crew deserve a great deal of recognition and thanks for a job well done. He has proven once again that private industry can indeed produce amazing results through innovation, dedication and hard work. That pseudo operations or PO can be taught and it can be effective in some types of warfare. As Sun Tzu would say, ‘all warfare is based on deception’, and PO is an excellent deceptive tactic. –Matt

 

shannon-sedgwick-davis-1-465

Shannon Sedgwick Davis.

How a Texas Philanthropist Helped Fund the Hunt for Joseph Kony
October 21, 2013
Posted by Elizabeth Rubin

One night in July, 2010, Shannon Sedgwick Davis, a lawyer and activist from San Antonio, Texas, and the mother of two young boys, found herself seated across from the chief of the Ugandan Army, General Aronda Nyakairima, at his hilltop headquarters, in Kampala. “It was one of those out-of-body experiences,” Davis told me. Davis was on the verge of becoming deeply involved in the campaign to capture Joseph Kony. In the course of a quarter century, Kony abducted tens of thousands of people, mostly children, and conscripted them into the Lord’s Resistance Army (L.R.A.), which was conceived as a Ugandan rebel force but whose primary target has been civilians in several African nations. “I am a full-blown mom, sitting here with this Ugandan general,” Davis said. “And I can’t believe I have an audience with this man, and that he didn’t write me off as crazy.”
Davis had two questions for Aronda: Would military trainers and communications make it easier for the Ugandan Army to chase down Kony—who is wanted by the International Criminal Court—in the jungles of Congo, the Central African Republic, and Sudan, where he and his commanders have scattered, and, more important to her, rescue the women and children still in his clutches?
Yes and yes, said the general. His eyes looked so tired, Davis recalled, that she hadn’t been sure she had his attention. “You almost want to pry them open so you make sure he’s still listening. But he said they would welcome any assistance, and that it was their problem to solve.” It was late, and in that first meeting Aronda seemed unsure what to make of this passionate, small blond woman from Texas. But the meetings persisted. Together, they began to map out what the general wanted and the guarantees that Davis would require from the Ugandans before embarking on an unorthodox venture: the charitable organization she heads, the Bridgeway Foundation, would hire private military contractors to train an African army.

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Technology: The World’s First 3D Printed Metal Gun, By Solid Concepts

Well, it’s nice to be back home and I plan on doing some catching up with the blog. So expect a few older stories to pop up mixed with the new. And my first post is about 3D printed weapons.

The area of 3D printed weapons is of interest to me for several reasons. First, it would be a disruptive technology that would take the construction of weapons to a new level of production and innovation.  To be able to dream it up, write up the program for it, and print it out at your local 3D printing shop or at your home printing shop is taking hobby gun manufacturing to the next level. Gun manufacturers take note…

The second reason why this is interesting to me is the legal aspects.  Today’s laws throughout the world have not caught up with the advent of 3D printed weapons.  This of course will create all sorts of controversy and debate, but until the laws do catch up, lots of folks will be experimenting and taking advantage of the concept. Just check out this quote by Solid Concepts:

“We’re proving this is possible, the technology is at a place now where we can manufacture a gun with 3D Metal Printing,” says Kent Firestone, Vice President of Additive Manufacturing at Solid Concepts. “And we’re doing this legally. In fact, as far as we know, we’re the only 3D Printing Service Provider with a Federal Firearms License (FFL). Now, if a qualifying customer needs a unique gun part in five days, we can deliver.”

The third reason why this interests me is how this would impact the global arms industry?  Will revolutions of the future be fought with printed AK-47’s or whatever weapon systems needed? Just look at Syria and the massive DIY effort there to arm themselves?

Will private military and security companies deploy with 3D printing plants and print weapons for contracts, or offer printed weapons to other companies in war zones as a means of fulfilling contracts? Or print out weapons for countries that are raising an army, and having a difficult time obtaining weapons due to embargoes or blockades.

Worse yet, terrorists and criminals will use this technology to create weapons as needed. Weapons with no history or serial numbers to trace, and made cheaply. In the future, forensics will be about figuring out what machine was used to make the things.

And will the arms industry be challenged by this disruptive technology and lash out, or embrace it and try to find where it fits into the whole thing. Who knows and there are many implications that come with this developing technology…. –Matt

 

3D Printed Metal 1911 Pistol

 

World’s First 3D Printed Metal Gun Manufactured by Solid Concepts
November 8, 2013
Solid Concepts, a world leader in 3D Printing services, manufactures the world’s first 3D Printed Metal Gun.
Austin, TX – Solid Concepts, one of the world leaders in 3D Printing services, has manufactured the world’s first 3D Printed Metal Gun using a laser sintering process and powdered metals. The gun, a 1911 classic design, functions beautifully and has already handled 50 rounds of successful firing. It is composed of 33 17-4 Stainless Steel and Inconel 625 components, and decked with a Selective Laser Sintered (SLS) carbon-fiber filled nylon hand grip. The successful production and functionality of the 1911 3D Printed metal gun proves the viability of 3D Printing for commercial applications.
“We’re proving this is possible, the technology is at a place now where we can manufacture a gun with 3D Metal Printing,” says Kent Firestone, Vice President of Additive Manufacturing at Solid Concepts. “And we’re doing this legally. In fact, as far as we know, we’re the only 3D Printing Service Provider with a Federal Firearms License (FFL). Now, if a qualifying customer needs a unique gun part in five days, we can deliver.”
The metal laser sintering process Solid Concepts used to manufacture the 30+ gun components is one of the most accurate additive manufacturing processes available, and more than accurate enough to build the interchangeable and interfacing parts within the 1911 series gun. The gun proves the tight tolerances laser sintering can meet. Plus, 3D Printed Metal has less porosity issues than an investment cast part and better complexities than a machined part. The 3D Printed gun barrel sees chamber pressures above 20,000 psi every time it is fired. Solid Concepts chose to build the 1911 because the design is public domain.
“The whole concept of using a laser sintering process to 3D Print a metal gun revolves around proving the reliability, accuracy and usability of metal 3D Printing as functional prototypes and end use products,” says Firestone. “It’s a common misconception that 3D Printing isn’t accurate or strong enough, and we’re working to change people’s perspective.”
The 3D Printed metal gun proves that 3D Printing isn’t just making trinkets and Yoda heads. The gun manufactured by Solid Concepts debunks the idea that 3D Printing isn’t a viable solution or isn’t ready for mainstream manufacturing. With the right materials and a company that knows how to best program and maintain their machines, 3D printing is accurate, powerful and here to stay.

About Solid Concepts
Solid Concepts provides rapid prototyping and custom manufacturing services, with capabilities in PolyJet, Stereolithography (SLA), 3D Color Prints, Selective Laser Sintering (SLS), 3D Metal Printing, Fused Deposition Modeling (FDM), CNC models and patterns, Composites, and QuantumCast™ advanced cast urethanes. Capabilities in tooling and injection molding make Solid Concepts a single source for product development and production efforts from conception to market. Visit www.solidconcepts.com to find your solution.
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