US20140250031A1

US20140250031A1 - Method of and information processing machinery for recognizing, computing and capturing subsidizing payment contributions made by paying consumers when paying for services provided by organizations that also provide simimlar services to others in financial need in a subsidized manner

Info

Publication number: US20140250031A1
Application number: US14/172,639
Authority: US
Inventors: Josepth H. Hardison, III
Original assignee: Interest Capturing Systems LLC
Current assignee: Interest Capturing Systems LLC
Priority date: 2006-01-09
Filing date: 2014-02-04
Publication date: 2014-09-04
Also published as: US20140195417A1; US8626626B2; US20120016782A1

Abstract

Method of capturing, by registered, paying consumers, consumer subsidizing payment contribution based tax benefits across a plurality of tax-qualified organizations and institutions participating within an internet-based tax benefit calculation and capture (TBRCC) network, and calculating and capturing tax benefits generated by consumers paying in excess of the cost of economic benefit(s) provided, with the excess of consumers' payments used to subsidize the receipt of identical or similar economic benefit(s) (e.g. services and/or goods) provided to other consumers in financial need. Further, providing registered, paying consumers with the ability to sell or trade their subsidizing payment contribution-generated tax benefit(s), or converted tax benefits, to other consumers and entities also registered and participating in the TBRCC network. Finally, providing full tax reconciliation between all registered, paying consumers, tax-qualified organizations and institutions, other consumers and entities, and all relevant taxing authorities.

Description

BACKGROUND OF INVENTION

1. Field of Invention
The present invention relates to improved ways of and means for providing economic relief to consumers who pay the subsidized services of others in need provided by non-profit and/or for-profit organizations, so that the financial burdens shouldered by these paying consumers will be lessened while helping less fortunate people, thereby improving the general welfare of society.
2. Brief Description of the State of Knowledge in the Art
Traditionally, when individuals pay or give money to charities or other organizations for the benefit of others, some or all of those monies are deductible from personal income for tax purposes. Usually, the charitable, or other, organization provides the payer or giver with an indication, many times written, of the amount paid or given, so that the payer/giver can deduct the appropriate amount on the payer's/giver's tax return.
However, while obvious charitable gifts and payments to charitable and other organizations are recognized by, and commensurate tax deductions allowed by, the Internal Revenue Service (IRS) and state and municipal taxing authorities, many charitable, subsidy payments are contained in payments to various organizations (as shown in FIGS. 1 and 2 (Prior Art)) for which no overt charitable deduction is recognized nor taken.
As an example, the national Young Men's Christian Association (YMCA), Young Women's Christian Association (YWCA), and similar organizations provide, as part of their mission, opportunities for underprivileged people of all ages. These organizations also charge membership fees, to those who can afford to pay them, for the right to use their facilities and participate in their various programs and other offerings.
A donor to one of these organizations can deduct, for tax purposes, the entire amount of a donation to one of these organizations. However, a paying member receiving services and privileges from a membership payment (i.e. access to facilities, programs, etc.) does not have a right to a tax deduction for such payments over and above the finite economic benefit received. This is currently true even if a portion of this membership payment typically is used to help others, less financially fortunate, enjoy the facilities and/or programs offered by the charitable non-profit organizations. Also, most organizations do not compute and publish what portion of a membership program is used to subsidize others who cannot afford to pay for services of the organization.
Similarly, as was recently outlined in a Wall Street Journal article (“More Students Subsidize Classmates' Tuition”, Belkin, Jan. 13, 2014), students paying full or partial tuition are, in many cases, helping to subsidize other students' educations. There are many reasons for this: reductions in state funding, higher tuition payments for out-of-state students, diversity goals, and other reasons. As the article notes, while some schools do calculate figures for the amount of a tuition payment that goes toward subsidizing others' educations, this information is typically not made public, and also, without the administration's assistance, there is no way for a tuition payer to know the amount of his/her tuition that has been used to subsidize other students' education.
Worse, out-of-state students that attend other colleges and universities often pay much higher tuition and student fees for the same educational benefits afforded in-state students paying much lower tuition and student fees. Out-of-state students paying the much higher tuition and student fees are often subsidizing, to a much greater degree, both in-state students that can afford to pay tuition and student fees equal to the cost of the educational benefits offered and received, and to in-state and out-of-state students that cannot afford to pay the full tuition and student fees equal to the cost of the educational benefit offered and received.
Recent letters to the Wall Street Journal editor regarding “More Students Subsidize Classmates' Tuition” have debated whether full-pay students are at all subsidizing other students (Prof Lee Hoke, Tampa, Fla., Jan. 18, 2014). Also, one letter to the editor (by Tony Merrill, Santa Barbara, Calif., Jan. 18, 2014) notes that those paying full tuition are subsidizing other students and thus should be able to take a tax deduction to provide the full tuition payers a tax benefit for their student tuition subsidization efforts.
An additional problem regarding student tuition and fees is that consumers (students and/or parents) incur tremendous amounts of student debt in order to pay for a college or graduate education. Total student debt in the United States is now estimated at over $1 trillion, and many students struggle to ever repay their incurred student debt to their lenders. So while many view a college or graduate education as critical to a successful career, many also are taking on crushing debt that will remain a financial burden long after their college and/or graduate term ends.
To exacerbate matters, many of these consumers are incurring debt to pay full tuition, only to have a portion of their student tuition/fees used to subsidize the education of other students, who do not have to incur debt and the financial burden of repayment. Furthermore, with full-paying tuition students subsidizing the tuitions of others, and with the government not providing them and/or their parents any tax benefits for doing so, the current system only works to punish these consumers by driving them into deeper debt without any tax benefit relief under the current tax code, thereby reducing the likelihood of repayment of their education-oriented debt and thus, their future economic prosperity.
Finally, many consumers pay full hospital and health care bills, either out-of-pocket or with the help of health insurance and, in many cases, a portion of their payment goes toward subsidizing the hospital or health care bills of those who cannot (or do not) pay. This is clearly a case of a paying consumer subsidizing others; however, no tax benefit is afforded to the paying consumer for his/her subsidizing payment. This, like the aforementioned student debt issue, is of huge national interest because of the staggering amounts of money involved, yet the paying consumer has no way of knowing what portion of his/her payment is subsidizing others' healthcare.
In view of the aforementioned shortcomings and drawbacks of contemporary society and prior art technologies, there is a great need in the art for improved ways of and means for providing economic relief to consumers who pay for the subsidized services of others in financial need provided by non-profit and/or for-profit organizations, so that the financial burdens shouldered by these paying consumers will be lessened while helping less fortunate people, thereby improving the general welfare of society, and avoiding the shortcomings and drawbacks of the prior art apparatus and methodologies.

OBJECTS AND SUMMARY OF THE PRESENT INVENTION

Accordingly, it is a primary object of the present invention to provide improved ways of and means for providing economic relief to consumers who pay for the subsidized services of others in financial need provided by non-profit and/or for-profit organizations, so that the financial burdens shouldered by these paying consumers will be lessened while helping less fortunate people, thereby improving the general welfare of society, and avoiding the shortcomings and drawbacks of the prior art apparatus and methodologies.
An object of the invention is to provide such means in the form of novel information processing machinery for recognizing, computing and capturing the subsidized cost components of economic benefits received by others in need from an organization, based on the subsidizing payment contribution made by consumers to the organization for services, so as to create a basis for tax benefits to alleviate the financial burden shouldered by paying consumers while helping those in financial need, and thereby increasing the general welfare of society.
Another object of the present invention is to provide novel financial accounting and communication technology for enabling efficient recognition, computation and capture of the subsidizing payment contribution made by an individual consumer and used to subsidize payment of services provided to others in need by the organization, while the individual consumer pays for his or her services provided by the organization, wherein the subsidizing payment contribution provide a basis for various social and economic benefits that may be provided to the paying consumer through tax benefits, tax-status support, and other benefits that may be identified in the future.
Another object of the present invention is to provide a market-based solution that allows payers of membership fees, tuition, event entry fees and any other payment of which, part of the payment is intended for charitable or purposes or uses, or to subsidize other consumers, recognize the difference between the payment and the cost of services rendered, for future tax benefits associated with their federal, state and/or local tax payments, that portion of the payment that exceeds the economic benefit gained through payment of the membership fee, tuition, event entry fee or other payment and thus, represents a subsidizing payment contribution.
Another object of the present invention is to provide a market-based solution that allows payers of membership fees, tuition, event entry fees and any other payment of which, part of the payment is intended for charitable purposes or uses, to deduct from their federal, state and/or local tax payments, that portion of the payment that constitutes a subsidizing payment contribution or charitable contribution earned through payment of the membership fee, tuition, event entry fee or other payment.
Another object of the present invention is to provide an interconnected network allowing payers of membership fees, tuition, event entry fees and any other payment of which, part of the payment is intended for charitable purposes or uses and represents a subsidizing payment contribution, and the institution accepting payment of the membership fees, tuition, event entry fees and any other payment, to communicate regarding the economic benefit gained through such payment and the associated tax benefit generated through such payment.
Another object of the present invention is to provide an interconnected network allowing payers of membership fees, tuition, event entry fees and any other payment of which, part of the payment is intended for charitable purposes or uses, institutions accepting payment of the membership fees, tuition, event entry fees and any other payment, and various taxing authorities (federal, state and/or local) to communicate regarding the economic benefit gained through such payment and the associated tax benefit gained through such subsidizing payment contribution for the purpose of accepting the payer's claimed tax deduction.
Another object of the present invention is to provide a process for payers of greater payments that receive the same economic benefit(s) as payers of lesser payments for the same economic benefit, receive commensurately larger tax benefits based on the higher payments for receipt of similar economic benefit(s).
Another object of the present invention is to provide a computer network for payers of out-of-state tuition and student fees to receive all associated tax benefits, based on the difference between the amount of economic benefit received and the payment of the out-of-state tuition.
Another object of the present invention is to provide a process for payers of out-of-state tuition and student fees to receive compensation for their tax benefits, which as non-residents of a particular state or municipality, they may not be able to fully, or even partially realize.
Another object of the present invention is to provide a process by which residents or businesses that may benefit from additional tax deductions, tax credits, or other tax benefits can purchase or otherwise remunerate payers of out-of-state tuition so that all available tax benefits can be utilized and not wasted.
Another object of the present invention is to provide a computer network by which residents or businesses that may benefit from additional tax deductions, tax credits, or other tax benefits can purchase or otherwise remunerate payers of in-state tuition so that all available tax benefits can be utilized and not wasted.
Another object of the present invention is to provide a computer network by which residents or businesses that may benefit from additional tax deductions, tax credits, or other tax benefits can purchase or otherwise remunerate payers of out-of-state tuition and student fees, membership fees or other payments so that all available tax benefits can be utilized and not wasted.
Another object of the present invention is to provide a process for calculating the exact tax benefit available to payers of membership fees, tuition and student fees, event entry fees and any other payment for which an economic benefit, worth less the amount of the payment, is received.
Another object of the present invention is to allow a paying consumer to recognize, as basis for a calculated tax benefit, payment(s) made to a tax-qualified organization for economic benefit(s) provided, where the recognized basis for tax benefit is based on the difference between the payment made and the cost of the paying consumer's pro-rated usage of the economic benefit(s) provided, as opposed to assuming full usage of the economic benefit(s) provided for calculating the basis for the tax benefit, with such pro-rated usage being calculated by measuring attendance, usage, or other variables.
Another object of the present invention is to provide a process for allowing users to capture, retroactively, past tax benefits generated by subsidizing payment contributions and, which, were forfeited.
Another object of the present invention is to provide a computer system and network for allowing users to trade tax benefits between state or other jurisdictions enabling all users to realize state-specific, or other, tax benefits when paying membership fee, tuition, or other payment where the payment made exceeds the economic, educational, or health benefit received and, where the excess payment amount is used to subsidize others' memberships, tuition, or other fees.
Another object of the present invention is to provide a computer system and network for compensating donors of anything of economic value to a taxing jurisdiction from which, they cannot presently realize some, or any, of the available tax benefits that other donors, either through residency or other qualifying status, may receive.
Another object of the present invention is to create a financial account linked to a user's tax identification number, through which users can pay membership fees, tuition, or make other payments to tax-qualified organizations and institutions, for the purpose of allowing either the user, or a bank or other lender, to sell tax benefits generated by the user's payment(s), in order to reduce the user's indebtedness to a bank or other lender.
Another object of the present invention is to provide a form to paying consumers, from tax-qualified organizations and institutions, detailing the exact tax benefit(s) generated by the paying consumer's payment(s) of subsidizing payment contribution, for the purpose of filing tax returns.
Another object of the present invention is to provide a computing and accounting module that resides within a tax-qualified organization's or institution's accounting apparatus for the purpose of generating tax benefit information based on subsidizing payment contributions, for paying consumers and taxing authorities, thus allowing paying consumers to file tax returns with the taxing authorities that reconcile with the tax-qualified organization's or institution's tax benefit calculations and accounting.
Another object of the present invention is to allow unclaimed tax benefits, amongst a group of paying consumers, to be divided amongst them on a pro rata basis at a finite date for purposes of not allowing any tax benefit generated to go unused.
Another object of the present invention is to allow financial institutions loaning money to consumers for educational purposes to accept as repayment either cash generated from the sale of tax benefits generated by a tuition or a fee payment, or the generated tax benefits, in order to reduce the consumer's outstanding education-related debt.
Another object of the present invention is to convert generated tax benefits in the form of tax deductions by paying consumers, through an outside payment, to more valuable tax credits, which can then be sold by a paying consumer to reduce student, or other, debt.
Another object of the present invention is to provide a computer system and network for compensating donors of anything of economic value to a tax-qualified organization or institution from which, they cannot presently realize some, or any, of the available tax benefits that other donors, either through residency or other qualifying status, may receive.
Another object of the present invention is to provide a computer-based business and accounting machinery, system and/or network for supporting recognition, calculation and capture of tax benefits generated by paying consumers' subsidizing payment contributions, where a part of the paying consumer's payment is used to subsidize other consumers.
Another object of the present invention is to provide a computer system for recognizing, calculating and capturing other tax benefits via a software module, embedded within an organization or within the organization's accounting software module, generated by payments, donations and gifts.
Another object of the present invention is to provide an Internet-based method of, and system for, enabling paying members of organizations, paying customers of businesses and organizations, and paying students in schools—collectively, paying consumers—to realize tax benefits generated by a subsidizing payment contribution for the portion of their membership payments, goods and services payments, tuition payments, healthcare payments, and other payments that go to subsidize partially or wholly, non-paying members of organizations, customers of businesses and organizations, students—collectively, subsidized consumers.
In view of the aforementioned shortcomings and drawbacks of contemporary society and prior art technologies, there is a great need in the art for an improved system, network and methods for providing consumers who pay the subsidized services of others at non-profit or for-profit organizations to enjoy tax benefits and market solutions designed to alleviate the financial burden that is shouldered by this portion of society while doing good to help a less fortunate sector of society, increasing the general welfare of the greater society, while avoiding the shortcomings and drawbacks of the prior art apparatus and methodologies.
These and other objects of the present invention will become apparent hereinafter.

BRIEF DESCRIPTION OF THE DRAWINGS

In order to understand more fully the Objects of the Invention, the following Brief Descriptions of the Illustrative Embodiments should be read in conjunction with the appended figure drawings wherein:

FIG. 1 is a schematic representation illustrating the conventional flow of funds when a paying consumer makes membership, tuition or other payments to organizations and institutions, and the paying consumer receives an economic, educational, or health benefit less than the amount of the paying consumer's payment, and where the difference is used to subsidize a benefit provided to another in need.

FIG. 2 is a high-level systems block diagram representation of the Internet-based Tax Benefit Recognition, Calculation and Capture Network 12 (TBRCCN) of the Present Invention, realized as a carrier-class, globally-extensive packet-switched financial information management and communications network, designed and implemented on a Java-based, object-oriented integrated development environment (IDE) such as, for example, Websphere IDE by IBM, or Weblogic IDE by BEA, or Microsoft® Visual Studio 2005.NET IDE, WebObjects 5.2 IDE by Apple Computer Inc.

FIG. 3A is a schematic representation of a first enterprise-level implementation of the TBRCC Network of the present invention.

FIG. 3B is a schematic representation of a second enterprise-level implementation of the TBRCC Network of the present invention.

FIG. 3C is a schematic representation of Enterprise Level Computer System and Network (ELCSN) of Tax-Qualified Organizations, Institutions, Non-Profits, or For-Profits Participating on the TBRCC Network of the Present Invention and shows the ELCSN or a tax-qualified organization, institution or non-profit containing, as a component, an Integrated Accounting Software Module (IASM), with the IASM containing, as a component, a Tax Benefit Recognition, Calculation and Capture Network Consumer Accounting Software Module 44 (TBRCCCASM), which calculates an organization's aggregate costs and the number of consumers to generate an average cost per consumers, which is then sent to a Tax Benefit Recognition, Calculation and Capture Accounting Software Module 42 (TBRCCASM) of the present invention, which calculates the subsidizing payment contribution's tax benefits generated by a paying consumer; all relevant taxing authorities are also presented as integral components of the tax benefit generation, calculation and accounting (within the TBRCCASM), and tax payment process of the present invention.

FIGS. 3D and 3E set forth a flow chart detailing the various steps contained in the Enterprise Level Computer System and Network (ELCSN) of Tax-Qualified Organizations, Institutions, or Non-Profits Participating on the TBRCC Network of the Present Invention.

FIG. 3F is a schematic representation of the Tax Benefit Recognition, Calculation, and Capture Consumer Accounting Software Module (TBRCCCASM) residing within an Enterprise Level Computer System and Network (ELCSN) of Tax-Qualified Organizations, Institutions, Non-Profits, or For-Profits Participating on the TBRCC Network of the Present Invention.

FIG. 3G is a flow chart detailing the various steps in the Tax Benefit Recognition, Calculation, and Capture Consumer Accounting Software Module (TBRCCCASM) Residing within an Enterprise Level Computer System and Network (ELCSN) of Tax-Qualified Organizations, Institutions, Non-Profits, or For-Profits Participating on the TBRCC Network of the Present Invention.

FIG. 3H is a schematic representation of the Tax Benefit Recognition, Calculation, and Capture Accounting Software Module (TBRCCASM) Residing within an Enterprise Level Computer System and Network (ELCSN) of Tax-Qualified Organizations, Institutions, or Non-Profits Participating on the TBRCC Network of the Present Invention, by which the TBRCCASM is embedded within the TBRCCCASM, which is embedded within an Integrated Accounting Software Module (IASM) located within a tax-qualified organization's, institution's non-profit's, or for-profit's Enterprise Level Computer System and Network for the purpose of calculating the subsidizing payment contribution as basis for tax benefit generated by a paying consumer's payment for economic, educational, or health benefit(s), which exceeds the economic, educational, or health benefit received, where the excess payment amount is used to subsidize other consumers' receipt of similar economic, educational, or health benefit(s).

FIGS. 3I and 3J set forth a flow chart detailing the various steps in the Tax Benefit Recognition, Calculation, and Capture Accounting Software Module (TBRCCASM) Residing within an Enterprise Level Computer System and Network (ELCSN) of Tax-Qualified Organizations, Institutions, or Non-Profits Participating on the TBRCC Network of the Present Invention.

FIG. 4 is a schematic representation of the Tax Benefit Recognition, Calculation and Capture Network (TBRCCN) of the Present Invention, whereby participating organizations and institutions register with the TBRCCN for the purpose of both quantifying and providing a paying consumer with tax benefits generated by payments made in excess of the economic, educational, or health benefits received, with such subsidizing payment contribution payments made in excess of the economic or educational benefit received being made available to a subsidized consumer, allowing the subsidized consumer to enjoy the same economic or educational benefits that the paying consumer enjoys.

FIG. 4A is a flow chart depicting the various steps for quantifying and recognizing tax benefits generated by paying consumers in the Tax Benefit Recognition, Calculation and Capture Network (TBRCCN) of the Present Invention.

FIGS. 5 and 5A are schematic representations of the Tax-Qualified Organizations', Institutions' and Non-Profits' TBRCCASM-Generated Statements of Tax Benefits Available to Paying Consumers and Taxing Authorities via the TBRCC Network of the Present Invention and represent one of the formats that various organizations and institutions can use to quantify the economic costs of the economic, educational, or health benefits offered to paying consumers so that paying consumers can recognize and capture all of the available tax benefits generated by subsidizing payment contribution payments in excess of the organizations' and institutions' economic costs of the economic and educational benefits provided to the paying consumers.

FIG. 6 is a single block flow chart explaining the Tax-Qualified Organizations', Institutions' and Non-Profits' TBRCCASM-Generated Statements of Tax Benefits Available to Paying Consumers and Taxing Authorities via the TBRCC Network of the Present Invention form by which various organizations and institutions quantify the economic costs of the economic or educational benefits offered to paying consumers so that paying consumers can recognize and capture all of the available tax benefits generated by subsidizing payment contribution payments in excess of the organizations' and institutions' economic costs of the economic, educational, or health benefits provided to the paying consumers.

FIG. 7 is a schematic representation of Utilization of the Tax Benefit Recognition, Calculation and Capture Network (TBRCNN) of the Present Invention for the Purpose of Recognizing, Quantifying and Receiving Full Economic Benefit for Out-of-State Tuition Payments by which an out-of-state paying consumer pays much higher tuition and thus, a greater portion of the out-of-state paying consumer's tuition payment exceeds the actual educational benefit received, generating a large tax benefit that the out-of-state paying consumer may not be able to realize so, through the TBRCCN of the present invention, in-state consumers or entities that may be able to utilize the large tax benefit generated compensate the out-of-state paying consumer for the tax benefit with cash and/or goods and services less than, or equal to, the amount of the tax benefit generated by the out-of-state consumer's tuition payment.

FIGS. 8 and 8A set forth a flow chart depicting the various steps involved in the Utilization of the Tax Benefit Recognition, Calculation and Capture Network (TBRCCN) of the Present Invention for the Purpose of Recognizing, Quantifying and Receiving Full Economic Benefit for Out-of-State Tuition Payments process.

FIG. 9 is a schematic representation of Utilization of the Tax Benefit Recognition, Calculation and Capture Network (TBRCCN) of the Present Invention for the Purpose of Recognizing, Calculating and Receiving Full Economic Benefit for Tuition Payments and for Repaying Education-Related Debt, whereby a paying consumer, or the financial institution from which the paying consumer borrows for education purposes, can sell or trade the tax benefits generated from the paying consumer's tuition and student fee payment(s) for the purpose of reducing the paying consumer's education-related debt.

FIGS. 10 and 10A set forth a detailed flow chart describing the various steps in the Utilization of the Tax Benefit Recognition, Calculation and Capture Network (TBRCCN) of the Present Invention for the Purpose of Recognizing, Calculating and Receiving Full Economic Benefit for Tuition Payments and for Repaying Education-Related Debt process of the present invention.

FIG. 11 is a schematic representation of the TBRCCASM of the present invention calculating the paying consumer's subsidizing payment contribution-generated tax benefit (tax deduction), converting it from a tax deduction to a tax credit (as any remuneration received for the tax credit will be directed, either by a participating consumer or entity, to the paying consumer's financial institution for the purpose of paying/reducing the paying consumer's student, or other, loan balance), with the TBRCC Network of the present invention then offering the new tax credit to participating consumers and other entities.

FIGS. 11A and 11B set forth a flow chart detailing the various steps involved in the conversion of a generated tax benefit (tax deduction) into a tax benefit (tax credit) of greater value for the purpose of reducing educational loan debt.

FIGS. 12A through 12D taken together set forth a flow chart describing the utilization of the tax benefit recognition, calculation and capture network (TBRCCN) of the present invention for the purpose of generating a subsidizing payment contribution based tax benefit, and converting such tax deductions into tax credits for sale and reduction of outstanding student, or other forms of financial debt.

DETAILED DESCRIPTION OF THE ILLUSTRATIVE EMBODIMENTS OF THE PRESENT INVENTION

Referring to the figures in the accompanying Drawings, the illustrative best mode embodiments of the present invention will now be described in greater technical detail, where in like parts are indicated by like reference numbers.

Overview of the Method of Tax Benefit Quantification, Recognition, and Capture According to Principles of the Present Invention

As shown in FIG. 2, the TBRCC Network 12 comprises a diverse arrangement of enterprise level computer systems (client and server machines) and networks (ELCSN) interfaced with the infrastructure of the Internet, namely: enterprise level computer systems (client and server machines) and networks supporting paying consumers 11; enterprise level computer systems (client and server machines) and networks supporting taxing authorities 14; enterprise level computer systems (client and server machines) and networks supporting tax-qualified organizations and institutions 13; enterprise level computer systems (client and server machines) and networks supporting other consumers and entities (including financial institutions) 16; and a TBRCC Data Center 12 supporting Internet-based packet communications with the paying consumers, taxing authorities, tax-qualified organizations, institutions, and non-profits, and other consumers and entities on the TBRCC Network.
As will be described in greater detail hereinafter, the TBRCC Data Center 12 supports various information services and electronic commerce transactions between the various computer systems within the network, and among its various users participating in the Network of the present invention. The TBRCC Data Center 12 will typically include arrays of relational database servers (RDBMS), application servers, and web and other communication servers, arranged in a three-tier structure, and secured by network firewalls, routers, switches and the like, well known in the art.
Each computer system and network within network groups 11, 13, 14 and 16, will typically include arrays of relational database servers (RDBMSs), application servers, and web and other communication servers, arranged in a three-tier structure and secured by network firewalls, routers, switches and the like, in addition to an arrangement of client machines supporting GUI interfaces, with which human users interface in a manner well known in the art.
Additionally, relational database servers (RDBMSs), application servers, and web and other communication servers based within the tax-qualified organizations, institutions, non-profits, and for-profits 13 will include the TBRCC accounting software module 42 described in FIGS. 3C, 3D, 3E, 3F, 3G, 3H, 3I, 3J, 5 and 5A, for the purpose of calculating, within each individual tax-qualified organization's, institution's non-profit's, or for-profit's ELCSN/IASM 41, the subsidized payment tax benefit generated by a paying consumer.
In practice, the object-oriented TBRCC Network 12 (system) will be developed using available object-oriented technology. Such object-oriented system development can involve any suitable Java-based, object-oriented integrated development environment (IDE) e.g. Websphere IDE by IBM, or Weblogic IDE by BEA, WebObjects 5.2 by Apple Computer Inc.; or another object-oriented programming language such as C^# supported by the Microsoft® Visual Studio 2005. NET IDE, or Python, Perl, Ruby, et al.
Two different network implementations are illustrated in FIGS. 3A and 3B using Web-based and Java-client technology, respectively. In FIG. 3A, the TBRCC network implementation involves using Web-based clients that can access services on the TBRCC network using http, well known in the art. In FIG. 3B, the TBRCC network implementation involves using clients programs running on the OS of the client machine, so that the user can access services on the TBRCC network using TCP/IP or other communication protocols known in the art. In other embodiments of the TBRCC network of the present invention, including those shown in FIG. 3, combinations of these two approaches can be used in combination, in a manner known in the enterprise level object-oriented system engineering (DOSE) art.
Preferably, the entire system of the present invention can be designed according to object-oriented systems engineering (DOSE) methods using UML-based modeling tools, such as Rational ROSE Visual Modeling and XDE by Rational Software, Inc., or Together® Visual Modeling Software by Borland Software, using the industry-standard Rational Unified Process (RUP) or Enterprise Unified Process (EUP), both well known in the art. Implementation programming languages can include Java, C, Objective C, PHP, Python, Ruby and other computer programming languages known in the art. Preferably, the system is deployed as a three-tier server architecture with a double-firewall, and appropriate network switching and routing technologies well known in the art.
In FIGS. 2, 3A, 3B, 4, 7, 9 and 11, the RDBMS in the TBRCC network data center 12, and systems 11, 13 and 14, can be realized using one or more database servers, each comprising: one or more central processing units (CPUs); a memory architecture with program memory (RAM), cache, and disc storage (e.g. RAID storage) and optionally one or more network attached storage (NAS) devices; a system bus architecture; power supplies; controllers; and an input/output architecture configured in a manner known in the art. The RDBMS will support an operating system (e.g Linux, OSX, Windows, Solaris, etc) and relational database software (e.g. mySQL, postgresSQL, Oracle Database software), designed and developed to support and perform the functions and services of the systems of the present invention described herein.
Each application server within TBRCC network data center 12, and systems 11, 13 and 14, can be realized using one or more application servers, each comprising: one or more central processing units (CPUs); a memory architecture with program memory (RAM), cache, and disc storage (e.g. RAID storage); a system bus architecture; power supplies; controllers; and an input/output architecture configured in a manner known in the art. Each such application server will support an operating system (e.g. Linux, OSX, Windows, Solaris, etc) and application software 41 (e.g. written in Java, PHP, C′ etc) designed and developed to support and to perform the functions and services of the system of the present invention described herein.
Similarly, each Web server within TBRCC network data center 12, and systems 11, 13 and 14, can be realized using one or more web servers, each comprising: one or more central processing units (CPUs); a memory architecture with program memory (RAM), cache, and disc storage (e.g. RAID storage) and optionally one or more network attached storage (NAS) devices; a system bus architecture; power supplies; controllers; and an input/output architecture configured in a manner known in the art. Each web server will support an operating system (e.g. Linux, OSX, Windows, Solaris, etc) and web server (http) software (e.g. Apache http software) configured and deployed so as to serve a large number of clients simultaneously, in a manner well known in the art. Preferably, load-balancing servers will be provided to ensure optimal load balancing of incoming http requests to the web servers 14 of the system.
It is understood, that any one or more of the RDBMS servers, application servers and/or web servers of systems 11, 12, 13, and 14 described above can be realized using virtual operating system software (e.g. VMware software) running on one or more hardware servers, in a manner well know in the server art.
FIG. 3C shows the Enterprise Level Computer System and Network (ELCSN) 13 of Tax-Qualified Organizations, Institutions, Non-Profits, or For-Profits participating on the TBRCC Network 12 of the Present Invention, where tax-qualified organizations, institutions, non-profits, or for-profits maintain an enterprise level computer system and network (ELCSN) for all electronic communications, accounting, and other purposes, which typically include arrays of relational database servers (RDBMSs), application servers, and web and other communication servers, arranged in a three-tier structure and secured by network firewalls, routers, switches and the like, in addition to an arrangement of client machines supporting GUI interfaces, with which human users interface in a manner well known in the art.
As shown in FIG. 3C, each participating tax-qualified organization's, institution's, non-profit's, or for-profit's ELCSN 13 comprises: an Integrated Accounting Software Module (IASM) 41 having software modules for processing all of the accounting functions including: all monetary and non-monetary receipts (cash donations, membership fee payments, tuition payments, student fee payments, and other incoming payments and donations) and all outgoing items (bill payments, grants, scholarships, donations, and all other outgoing money flows and the value of any outgoing good or services). The IASM 41 reconciles all inflows and outflows to present a unified accounting of each of the tax-qualified organization's, institution's, non-profit's, or for-profit's finances.
As shown in FIG. 3C, each IASM 41 comprises: an embedded accounting software module known as the TBRCC Consumer Accounting Software Module (TBRCCCASM) 44, which performs all of the accounting functions associated with an organization's aggregate cost of delivering an economic or educational benefit to a paying consumer 11 and calculates a per consumer cost based on the total number of consumers.
As shown in FIG. 3C, the TBRCCCASM 44 comprises: an embedded accounting software module known as the TBRCC Accounting Software Module (TBRCCASM) 42 which, (i) receives from the TRBCCCASM 44, the average benefit cost per consumer and consumer invoice data, (ii) calculates the difference between the two on a per item basis, and (iii) generates a subsidizing payment contribution (SPC) payment tax benefit statement, based on the amount that the paying consumer's payment(s) exceeds the monetary value of the economic or educational benefit received, thereby subsidizing other consumers and generating a basis for a subsidizing payment contribution tax benefit to be allowed by federal, state and/or local governments.
Each IASM 41, providing a computer-based accounting system within the Network, will be suitably programmed to recognize, compute and capture a “subsidizing payment contribution” made by a consumer when paying for services provided by a tax-qualified organization also providing similar services to others in financial need in a wholly or partially subsidized manner. In general, the computer-based accounting system comprises: an integrated accounting software subsystem for accounting costs incurred by the organization to provide the services to said paying consumers and said others in need, and also revenue generated by the tax-qualified organization, over a predetermined accounting period. The TBRCCCASM 44, a first computer accounting software module, residing within the integrated accounting software subsystem 41, is configured for computing a total average cost per consumer for the services provided to the paying consumer by the tax-qualified organization, over the predetermined accounting period; and the TBRCCASM 42, a second computer accounting software module, is arranged in communication with the first computer accounting software module 44, and utilizes (i) the total average cost per consumer and (ii) an individual consumer invoice providing a statement of payment due for services and/or goods to be paid for the paying consumer, so as to (i) compute a subsidizing payment contribution made the paying consumer for services of those in need provided by the tax-qualified organization in a wholly or partially subsidized manner, and (ii) generate an electronic document containing data representative of the subsidizing payment contribution. The subsidizing payment contribution is based on the difference between (i) the actual payment for services and/or goods reflected in the individual consumer invoice, and (ii) the total average cost per consumer for services and/or goods provided to the consumer by the tax-qualified organization. The computer-based accounting system (IASM) 41 is configured to display and/or transmit the electronic document to said paying the consumer electronically and/or physically. As described in greater detail herein, the subsidizing payment contribution computed by each tax-qualified organization using the computer-based accounting system 41 of the present invention, may be used to create a basis for tax benefits (e.g. tax deductions illustrated in FIGS. 2 through 10A, as well as tax credits as illustrated in FIGS. 11 through 12D) for the paying consumer, and/or tax status support for the tax-qualified organization.
Once the TBRCCASM 42 has computed the paying consumer's subsidizing payment contribution, the TBRCCASM 42 then generates an Electronic Subsidized Payment Contribution Tax Benefit Transmission 7 (electronic accounting form detailing the subsidizing payment contribution generated by the paying consumer's payment(s)) and/or sends the same electronic information to a printer 9 within the tax-qualified organization's, institution's, or non-profit's ELCSN at which, a physical Subsidizing Payment Contribution Tax Benefit Form 8 (physically printed accounting form detailing the subsidized payment tax benefit generated by the paying consumer's payment(s)) is printed. The TBRCCASM-generated accounting form(s) 7, 8 detailing the paying consumer's subsidizing payment contribution (SPC) and containing the paying consumer's tax identification information for reconciliation purposes, is then sent, either in electronic form via the internet 15, or physically via U.S. Mail or some other physical delivery service, to the paying consumer for use in filing federal and state tax returns.
Coincident with sending the subsidizing payment contribution-generated tax benefit(s) form(s) to the paying consumer (i.e. documenting the subsidizing payment contribution SPC amount paid to the organization), the TBRCCASM 42 sends, either in electronic form via the internet, or to a printer within the ELCSN (or both) 13, the generated form detailing the paying consumer's subsidizing payment contribution-generated tax benefit(s) and reconciled with the paying consumer's tax identification number, to the IRS 14, and to state 14 and local taxing authorities 14 where relevant. In the case of a printed form, the form is physically sent to the IRS, and to state and local taxing authorities where relevant, via U.S. Mail or some other physical delivery service.
When the paying consumer receives, either electronically or physically, the subsidizing payment contribution tax benefit(s) form generated by the TBRCCASM 42, the paying consumer then incorporates the subsidizing payment contribution tax benefit(s) form into his/her annual tax return and files her/her tax return, including the TBRCCASM-generated form 7 or 8, either electronically via the internet or by physically mailing the tax return incorporating and including the TBRCCASM-generated form to the IRS, and to state and local taxing authorities where relevant.
FIGS. 3D and 3E set forth a flow chart showing the various steps required to integrate the Enterprise Level Computer System and Network (ELCSN) of Tax-Qualified Organizations, Institutions, Non-Profits, or For-Profits Participating on the TBRCC Network of the Present Invention for the purpose of accounting for, and generating, a subsidizing payment contribution documentation providing a basis for tax benefit for paying consumers, wherein the paying consumer's payment for economic, educational or health benefits exceeds the costs of the economic, educational, or health benefit provided by the organization, and the difference in economic value is used to contributed to subsidize the payment for services provided to those in need by the organization.
At Block in FIG. 3D, a, tax-qualified organizations, institutions, non-profits, and for-profits maintain an Enterprise Level Computer System and Network (ELCSN) for all electronic communications, accounting, and other purposes, which typically include arrays of relational database servers (RDBMSs), application servers, and web and other communication servers, arranged in a three-tier structure and secured by network firewalls, routers, switches and the like, in addition to an arrangement of client machines supporting GUI interfaces, with which human users interface in a manner well known in the art.
At Block B, within an tax-qualified organization's, institution's, non-profit's, or for-profit's ELCSN there is an Integrated Accounting Software Module (IASM), which processes all of the accounting functions including: all monetary and non-monetary receipts (cash donations, membership fee payments, tuition payments, student fee payments, and other incoming payments and donations) and all outgoing items (bill payments, grants, scholarships, donations, and all other outgoing money flows and the value of any outgoing good or services). The IASM then reconciles all inflows and outflows to present a unified accounting of all the tax-qualified organization's, institution's, or non-profit's finances.
At Block C, embedded within a tax-qualified organization's, institution's, non-profit's, or for-profit's IASM 41 is a separate accounting software module known as the TBRCC Consumer Accounting Software Module (TBRCCCASM) 44, which processes all of the accounting functions associated with an organization's aggregate cost of delivering an economic, educational, or health benefit to a paying consumer and calculates a per consumer cost based on the total number of consumers.
At Block D, embedded within a tax-qualified organization's, institution's, non-profit's, or for-profit's TBRCCCASM is a separate accounting software module known as the TBRCC Accounting Software Module (TBRCCASM) 42, which receives from the TRBCCCASM the average benefit cost per consumer and invoice information, calculates the difference between the two on a per item basis, and generates a subsidizing payment contribution tax benefit statement, based on the amount the paying consumer's payment(s) exceeds the monetary value of the economic or educational benefit received, thereby subsidizing other consumers and generating a subsidizing payment contribution tax benefit.
At Block E, when the TBRCCASM has processed the paying consumer's tax benefit i.e. SPC), the TBRCCASM 42 then generates an Electronic Subsidizing Payment Contribution Tax Benefit Transmission (electronic accounting form detailing the tax benefit generated by the paying consumer's payment(s)) and/or sends the same electronic information to a printer within the tax-qualified organization's, institution's, or non-profit's ELCSN at which, a physical Subsidizing Payment Contribution Tax Benefit Form (physically printed accounting form detailing the tax benefit generated by the paying consumer's payment(s)) is printed. The form TBRCCASM-generated accounting form(s) detailing the paying consumer's subsidizing payment contribution-generated tax benefit(s), and containing the paying consumer's tax identification information for reconciliation purposes, is then sent, either in electronic form via the internet, or physically via U.S. Mail or some other physical delivery service, to the paying consumer.
At Block F, coincident with sending the subsidizing payment contribution-generated tax benefit(s) form to the paying consumer, the TBRCCASM sends, either in electronic form via the internet, or to a printer within the tax-qualified organization's, institution's, non-profit's, or for-profit's ELCSN (or both), the generated form detailing the paying consumer's subsidizing payment contribution tax benefit(s) and reconciled with the paying consumer's tax identification number, to the IRS, and to state and local taxing authorities where relevant. In the case of a printed form, the form is physically sent to the IRS, and to state and local taxing authorities where relevant, via U.S. Mail or some other physical delivery service.
Finally, at Block G, When the paying consumer receives, either electronically or physically, the subsidizing payment contribution tax benefit(s) form generated by the TBRCCASM, the paying consumer then incorporates the subsidizing payment contribution tax benefit(s) form into his/her annual tax return and files her/her tax return, including the TBRCCASM-generated form, either electronically via the internet or by physically mailing the tax return incorporating and including the TBRCCASM-generated form to the IRS, and to state and local taxing authorities where relevant.
FIG. 3F describes, in greater detail, the Tax Benefit Recognition, Calculation, and Capture Consumer Accounting Software Module (TBRCCCASM) 44 residing within the ELCSN 13 of Tax-Qualified Organizations, Institutions, Non-Profits, or For-Profits Participating on the TBRCC Network of the Present Invention. The TBRCCCASM 44 resides within the IASM 41 of the tax-qualified organization's ELCSN 13. The TBRCCCASM 44 is an individual, organization-specific, client accounting module, which has been pre-configured for client use. The TBRCCCASM 44 has different interface forms, in the form of aggregate, individual consumer costs and total number of consumers, for the purpose of computing the total average cost per consumer for services provided thereto by the organization. Transaction category codes have been pre-assigned and are stored in TBRCCCASM.
As shown in FIG. 3F, Input (001) Total Salary Expense, Input (002) Total Physical Plant Cost, Input (003) Total Pension Cost, Input (004) Total Insurance Cost, and Input (005) Total Other Costs are entered by the tax-qualified organization for the purpose of calculating a Sum of Costs (006) as derived by the TBRCCCASM. Input (007) Total Number of Consumers is also entered by the tax-qualified organization and then is used to arrive at an Average Cost Per Consumer (008) of the provided benefit. Finally, both (008) and Input (009) Consumer Invoice, are sent from the TBRCCCASM 44 to the TBRCCASM 42 for the purpose of calculating the subsidized payment generated tax benefit.
It is understood that a number of different methods may be used for computing a “Consumer Invoice” as shown within Block 009 in FIG. 3F, which may recognize financial grants, government or private aid, scholarships, the number/amount of economic, educational, or health benefit received and/or other factors that can affect the monetary amount contained in a consumer's invoice.
Similarly, while the example shown in FIG. 3F computes the “Average Cost Per Consumer”—using a simple average (arithmetic mean)—as shown in Block 008, it is understood that there are many different types of averages (mean, median, mode, weighted average(s), trimmed mean, geometric mean, harmonic mean, etc.), any of which may be used within the TBRCCCASM of the present invention to arrive at an “Average Cost Per Consumer” for the purpose of sending both the “Consumer Invoice” total (Block 009) and the “Average Cost Per Consumer” total (Block 008) to the TBRCCASM, which outputs the subsidized cost component of the economic benefits received by others from an organization, based on the actual subsidizing payment contribution payments made by consumers to the organization for services, so as to create a basis for tax benefits intended to alleviate the financial burden shouldered by paying consumers while helping those in need.
The tax-qualified organization then enters various code selectors through utilization of transaction entry forms. An organization chart of accounts allows selection of an account for association with transaction codes. An organization chart of accounts can be customized for an individual tax-qualified organization, or the chart of accounts may be predetermined in accordance with the type of tax-qualified organization employing the TBRCCCASM 44.
Each account category (aggregate cost and consumer total) includes a unique, account-specific code (aggregate cost code or consumer total code) identification, with a description predetermined by either the client/client type, or by the TBRCCCASM 44.
When the tax-qualified organization has entered all of the coded information, the TBRCCCASM calculates an average cost per consumer for a periodic term.
The calculated average cost per consumer figure is then sent from the TBRCCCASM 44 to the TBRCCASM 42 for calculation of (i) the subsidizing payment contribution-generated tax benefit based on the difference between (i) an invoice paid by each consumer and (ii) the average cost per consumer as calculated by the TBRCCCASM 44.
FIG. 3G is a flow chart detailing the various steps in the TBRCCCASM 44 residing within an ELCSN 13 of Tax-Qualified Organizations, Institutions, Non-Profits, or For-Profits Participating on the TBRCC Network, through which a tax-qualified organization calculates an average cost per consumer based on inputs consisting of aggregate costs for all different categories. These aggregate costs are totaled and divided by the total number of consumers per periodic term to calculate an average cost per consumer for services provided to the paying consumer by the organization.
As indicated at Block A, the Tax Benefit Recognition, Calculation and Capture Network Consumer Accounting Software Module (TBRCCCASM) resides within the Integrated Accounting Module (IASM) of the tax-qualified organization's Enterprise Level Computer System and Network (ELCSN). The TBRCCCASM is an individual, organization-specific, client accounting module, which has been pre-configured for client use. The TBRCCCASM has different interface forms, in the form of aggregate, individual consumer costs and total number of consumers, for the purpose of computing the total average on cost per consumer. Transaction category codes have been pre-assigned and are stored in TBRCCCASM.
At Block B, the tax-qualified organization then enters various code selectors through utilization of transaction entry forms. An organization chart of accounts allows selection of an account for association with transaction codes. An organization chart of accounts can be customized for an individual tax-qualified organization, or the chart of accounts may be predetermined in accordance with the type of tax-qualified organization employing the TBRCCCASM.
At Block C, each account category (aggregate cost and consumer total) includes a unique, account-specific code (aggregate cost code or consumer total code) identification, with a description predetermined by either the client/client type, or by the TBRCCCASM.
At Block D, when the tax-qualified organization has entered all of the coded information, the TBRCCCASM calculates an average cost per consumer for a periodic term.
At Block E, the calculated average cost per consumer and the consumer's invoice amount are then sent from the TBRCCCASM to the TBRCCASM for calculation of the subsidizing payment contribution-generated tax benefit based on the difference between total invoice amount paid by each consumer and the average cost per consumer as calculated by the TBRCCASM.
As shown in FIG. 3H, the Tax Benefit Recognition, Calculation and Capture Network Accounting Software Module (TBRCCASM) 42 resides within the TBRCCSASM 44, which is embedded in the Integrated Accounting Module (IASM) 41 of the tax-qualified organization's Enterprise Level Computer System and Network (ELCSN) 13. The TBRCCASM is an individual organization-specific, client accounting module, which has been pre-configured for client use. The TBRCCASM has different interface forms, in the form of credit codes and debit codes, for entering a paying consumer's payment transactions and tax identification information. Transaction category codes have been pre-assigned and are stored in TBRCCASM.
The tax-qualified organization participating on the TBRCC Network 12 of the present invention then enters various code selectors through utilization of transaction entry forms. A client chart of accounts allows selection of an account for association with transaction codes. A chart of accounts can be customized for an individual tax-qualified organization, or the chart of accounts may be predetermined in accordance with the type of tax-qualified organization employing the TBRCCASM.
Each account (debit and credit) includes a unique, account-specific code (credit code or debit code) identification, with a description predetermined by either the client/client type, or by the TBRCCASM.
Because the organization utilizing the TBRCCASM 42 is, by definition, tax-qualified, each credit code is classified as a part of the paying consumer's payment for economic, educational, or health benefit(s), while each debit code is classified as the actual expense of the economic, education, or health benefit(s) provided to the paying consumer per payment.
The difference between the credit code and debit code for each payment category is determined, with a positive sum of the differences equaling the amount of subsidizing payment contribution providing a basis for tax benefit for the paying consumer and/or tax status support for the organization.
The tax-qualified organization's embedded TBRCCASM, having calculated the total subsidizing payment contribution-generated tax benefit available to the paying consumer, either on a per payment basis, or on a cumulative, annual basis, then generates and sends an electronic statement 7 (See FIGS. 5 and 5A) including: the amount of the subsidizing payment contribution-generated tax benefit(s), the paying consumer's tax identification number, and the tax-qualified organization's tax identification number, via the internet, or directs the tax-qualified organization's printer 9 to physically print, with the tax-qualified organization sending a physical statement 8—depending on the paying consumer's preference—to the paying consumer 11 and to all relevant taxing authorities 14 for reconciliation purposes.
FIGS. 3I and 3J set forth a flow chart detailing the various steps in the Tax Benefit Recognition, Calculation, and Capture Accounting Software Module (TBRCCASM) Residing within an Enterprise Level Computer System and Network (ELCSN) of Tax-Qualified Organizations, Institutions, Non-Profits, or For-Profits Participating on the TBRCC Network of the Present Invention.
As indicated at Block A in FIG. 3I, the Tax Benefit Recognition, Calculation and Capture Network Accounting Software Module (TBRCCASM) 44 resides within the TBRCCCASM 42, which resides within the Integrated Accounting Module (IASM) 13 of the tax-qualified organization's Enterprise Level Computer System and Network (ELCSN). The TBRCCASM is an individual, organization-specific, client accounting module, which has been pre-configured for client use. The TBRCCASM has different interface forms, in the form of credits and debits, for entering a paying consumer's transaction payments and tax identification information. Transaction category codes have been pre-assigned and are stored in TBRCCASM.
At Block B, the tax-qualified organization then enters various code selectors through utilization of transaction entry forms. A client chart of accounts allows selection of an account for association with transaction codes. A chart of accounts can be customized for an individual tax-qualified organization, or the chart of accounts may be predetermined in accordance with the type of tax-qualified organization employing the TBRCCASM.
At Block C, each account category (debit and credit) includes a unique, account-specific code (credit code or debit code) identification, with a description predetermined by either the client/client type, or by the TBRCCASM.
At Block D, because the organization utilizing the TBRCCASM is, by definition, tax-qualified, each credit code is classified as a part of the paying consumer's payment for economic, educational, or health benefit(s), while each debit code is classified as the actual expense of the economic, education, or health benefit(s) provided to the paying consumer per payment.
At Block E, the difference between the credit code and debit code for each payment category is determined, with a positive sum of the differences equaling the amount of subsidizing payment contribution-generated tax benefit generated by, and for, the paying consumer.
Finally, at Block F, the tax-qualified organization's embedded TBRCCASM, having calculated the total subsidizing payment contribution-generated tax benefit available to the paying consumer, either on a per payment basis, or on a cumulative, annual basis, then generates and sends an electronic statement including: the amount of the subsidizing payment contribution tax benefit(s), the paying consumer's tax identification number, and the tax-qualified organization's tax identification number, via the internet, or directs the tax-qualified organization's printer to physically print, with the tax-qualified organization sending a physical statement—depending on the paying consumer's preference—to the paying consumer and to all relevant taxing authorities for reconciliation purposes.

Brief Overview of the Internet-Based TBRCC Network of the Present Invention

The Internet-based TBRCC Network 12 of the present invention operates in the national financial marketplace, and comprises an information network infrastructure operably connected to the infrastructure of the Internet, as shown in FIG. 4. The TBRCC Network 12 includes one or more tax-qualified organizations or institutions each having an ELCSN 13, supported by servers with software 41, 44, 42, for calculating the tax benefit (i.e. subsidizing payment contribution) generated when a paying consumer 11 pays for economic or educational benefit(s) in excess of the economic or education benefit(s) provided by the organization, with the excess payment amount subsidizing similar economic or educational benefit(s) for other consumers in need.
The TBRCC Network 12 assists organizations in recognizing, calculating, and accounting for the subsidizing payment component (SPC) providing a basis for a tax benefit to the paying consumer, when the paying consumer makes a subsidizing payment contribution payment for economic, educational or health benefit(s) to a tax-qualified organization, institution, or non-profit, where the payment amount exceeds the cost of the economic, educational, or health benefit(s) received, and with the excess payment amount used to subsidize similar economic, educational, or health benefit(s) for other consumers and (ii) ensures that the subsidizing payment contribution-generated tax benefit from the aforementioned payment is sent, in the form of electronic or printed, physical format, to both the paying consumer and to the relevant taxing authorities so that the paying consumer can take the allowed tax benefit, and the taxing authorities can reconcile the claimed tax benefit with that reported by the tax-qualified organization or institution.
In accordance with the principles of the present invention, the paying consumer (i) may claim the generated tax benefit on his/her tax return or, (ii) may sell or trade the generated tax benefit for cash or for other valuable consideration, including other tax benefits or, (iii) may give the generated tax benefit to a financial institution from which he/she borrowed money for educational, or other, purposes, in exchange for a reduction of the paying consumer's outstanding loan balance based on the amount of money, goods, services or other tax benefits the lending financial institution receives for the given tax benefit.
When the generation of an aforementioned tax benefit occurs, the Internet-based TBRCC software computing module 42 embedded in a tax-qualified organization's or institution's server(s) automatically accounts for the generated tax benefit and assigns it to both the paying consumer's user account maintained within the TBRCC network while, simultaneously assigning the generated tax benefit to the user account of the tax-qualified organization also maintained within the TBRCC network, for purposes of reconciling all TBRCC network user accounts. Also, the module 42 notifies the relevant taxing authorities of the tax benefits generated by paying consumer's subsidizing payment contribution to the tax-qualified organization during the particular accounting period, so that the relevant taxing authorities can reconcile the tax benefit claimed by the paying consumer with its source at the tax-qualified organization.
Referring to FIG. 4, there is presented a schematic representation of the Tax Benefit Recognition, Calculation and Capture Network (TBRCCN) of the Present Invention, whereby participating organizations and institutions register with the TBRCCN for the purpose of both calculating and providing a paying consumer with tax benefits generated by subsidizing payment contribution payments made in excess of the cost of economic or educational benefits provided, with such payments made in excess of the cost of economic or educational benefit provided being made available to a subsidized consumer, allowing the subsidized consumer to enjoy the same economic or educational benefits that the paying consumer enjoys.
Various tax-qualified organizations, institutions, and non-profits that provide economic, educational, or health benefits to a paying consumer, and the paying consumer, register for an account with the TBRCC Network of the present invention for the purpose of providing the paying consumer with all available tax benefits related to all the paying consumer's membership, tuition, or other payments. Both the paying consumer and the participating tax-qualified organization or institution provide tax identification information to the TBRCCN of the present invention so that tax benefits may be reconciled and reported to the proper taxing authorities.
A paying consumer then makes various membership, tuition, and/or other subsidizing payment contribution payment(s) to various organizations that use part of the paying consumer's payment to provide an economic, subsidized benefit to the paying consumer.
As the amount of the paying consumer's payment(s) exceeds the cost of the economic, educational, or health benefit provided, the various organizations and institutions use the excess payment amount to fund economic or educational benefits for those subsidized consumers 18 that cannot afford or, can only partially afford, to pay for those economic or educational benefits.
As the economic or educational benefit provided to subsidized consumers 18 is quantifiable as the difference between the payment made by the paying consumer 11 and the economic or educational benefit received by the paying consumer, the various organizations and institutions providing economic or educational benefits each then report, via the Internet, the tax benefit amount of the paying consumer's subsidizing payment contribution payment, in this example $1,650, to all relevant taxing authorities and to the paying consumer. The process of generating the tax benefit amount is more fully described in FIGS. 3C, 3D, 3E, 3F, 3G, 3H, 3I, 3J, 5 and 5A.
Coincident with the previous step, the TBRCC Network 12 of the present invention also receives, on a periodic basis, from the various organizations and institutions registered with the TBRCC Network of the present invention, via the Internet, the total amount of subsidizing payment contribution tax benefit-generating payments made by the paying consumer, from all registered sources reconciling payments with the paying consumer's tax identification information, and compiles the total amount of tax benefits available to the paying consumer, communicating that annual amount to the paying consumer for tax reporting purposes. Or, conversely, the various organizations and institutions may send a physical form detailing the paying consumer's tax benefits.
The paying consumer 11 then files his tax return(s) with the various federal, state, and local taxing authorities and takes the appropriate tax benefits based on the information provided by the TBRCC Network of the present invention.
FIG. 4A is a detailed flow chart explaining the various steps included in the Tax Benefit Recognition, Calculation and Capture Network of the Present Invention presented in FIG. 4.
At Block A, various organizations and institutions providing economic, educational, or health benefits to a paying consumer, and the paying consumer, each register with the TBRCC Network of the present invention for the purpose of providing the paying consumer with all available tax benefits related to his/her payments.
At Block B, a paying consumer makes various membership, tuition, and/or other payment(s) to various organizations and institutions that use part of the paying consumer's payment to provide a subsidized economic, educational, or health benefit to the paying consumer.
At Block C, as the amount of the paying consumer's payment(s) exceed the economic, educational, or health benefit provided, the various organizations and institutions use the excess payment amount to fund economic, educational, or health benefits for those subsidized consumers that cannot afford or, can only partially afford, to pay for those economic, educational, or health benefits.
At Block D, as the economic, educational, or health benefit provided to subsidized customers is quantifiable as the difference between the subsidizing payment contribution payment made by the paying consumer and the economic, educational, or health benefit received by the paying consumer, the various organizations providing economic, educational, or health benefits then report, via the Internet, the tax benefit amount of the paying consumer's payment, in this example $1,650, to all relevant taxing authorities and to the paying consumer.
At Block E, coincident with the previous step, the TBRCC Network of the present invention also receives, on a periodic basis, from the various organizations and institutions registered with the TBRCC Network of the present invention, via the Internet, the total amount of subsidizing payment contribution tax benefit-generating payments made by the paying consumer and compiles the total amount of tax deductions (and/or tax credits) available to the paying consumer, reconciling payments with the paying consumer's tax identification information, and communicating that annual amount to the paying consumer for tax reporting purposes. Or, conversely, the various organizations and institutions may send a physical form detailing the paying consumer's tax benefits.
At Block F, the paying consumer then files his tax return(s) with the various federal, state, and local taxing authorities and takes the appropriate tax deductions and tax credits based on the information provided by the TBRCC Network of the present invention.
Tax Benefit Recognition, Calculation and Capture within the TRBCC Network Software Computing Module
FIGS. 5 and 5A are examples of statements 7, 8, generated by the TBRCCASM residing within a participating tax-qualified organization, institution, or non-profit, used to calculate the cost of the amount of economic, educational, or health benefit received by a paying consumer. This is the Tax-Qualified Organizations', Institutions' and Non-Profits' TBRCCASM-Generated Statements of Tax Benefits Available to Paying Consumers and Taxing Authorities via the TBRCC Network of the Present Invention.
A TBRCCASM 42 is domiciled within a tax-qualified organization's institution's, or non-profit's computer server(s) for the purpose of calculating a paying consumer's subsidizing payment contribution tax benefit generated by payment of various membership fees, tuition and student fees, or other fees, where part of the payment amount is used to subsidize other consumers' receipt of similar economic, educational, or health benefits (e.g. services and/or goods).
An institution or organization that accepts payments from a paying consumer, where a portion of a payment is directed toward subsidized consumers, provides a form—electronic in the form of an internet transmission, or physical in the form of a printed paper mailed form sent by U.S. Mail or other physical delivery service—detailing the actual costs associated with, and economic benefits provided to, a paying consumer and also detailing, specifically, the amount of the paying consumer's payment that is applied to subsidized consumers so that a paying consumer can receive the full amount of tax benefits associated with each payment to a qualified institution or organization. This form is also provided to taxing authorities for reconciliation purposes.
FIG. 6 is a flow chart explaining the step by which tax-qualified organizations and institutions recognize, calculate, and compile available tax benefits for a paying consumer via the TBRCC Network of the Present Invention.
At Block A, a tax benefit computing module 44 is domiciled within a tax-qualified organization's or institution's computer server(s) for the purpose of calculating a paying consumer's subsidizing payment contribution tax benefit generated by payment of various membership fees, tuition and student fees, or other fees, where part of the payment amount is used to subsidize other consumers' receipt of similar economic, educational, or health benefits.
At Block B, an institution or organization that accepts payments from a paying consumer, where a portion of a payment is directed toward subsidized consumers, provides a form—electronic in the form of an internet transmission, or physical in the form of a printed paper mailed form sent by U.S. Mail or other physical delivery service—detailing the actual costs associated with, and economic benefits provided to, a paying consumer and also detailing, specifically, the amount of the paying consumer's payment that is applied to subsidized consumers so that a paying consumer can receive the full amount of tax benefits associated with each payment to a qualified institution or organization. This form is also provided to taxing authorities for reconciliation purposes.

Tax Benefit Recognition, Calculation and Capture Network (TBRCCN) of the Present Invention for the Purpose of Recognizing, Calculating and Receiving Full Economic Benefit for Out-of-State Tuition Payments

FIG. 7 is a schematic representation of the Utilization of the Tax Benefit Recognition, Calculation and Capture Network (TBRCCN) 12 of the Present Invention for the Purpose of Recognizing, Calculating and Receiving Full Economic Benefit for Out-of-State Tuition Payments. Various tax-qualified educational organizations and institutions that provide educational benefits to out-of-state paying consumers, and out-of-state paying consumers, both register with the TBRCC Network 12 of the present invention for the purpose of providing the out-of-state paying consumers with all available tax benefits, or remuneration for their available tax benefits related to their out-of-state tuition payments.
An out-of-state paying consumer makes a tuition, and/or fee payment to an educational institution that uses part of the consumer's tuition and/or fee payment to provide an economic or education benefit to the out-of-state paying consumer.
As the amount of the out-of-state paying consumer's payment(s) exceed the educational benefit provided, the educational institution uses the excess payment amount to fund, or to pay for, educational benefits for those subsidized consumers that cannot afford or, can only partially afford, to pay for those educational benefits.
As the educational benefit provided to subsidized customers is quantifiable as the difference between the payment(s) made by the out-of-state paying consumer and the educational benefit received by the out-of-state paying consumer, the educational institution providing education benefits then reports, via the Internet, the tax benefit amount of the out-of-state paying consumer's subsidizing payment contribution payment, in this example $30,000, to all relevant taxing authorities and to the TBRCC Network of the present invention.
Because the out-of-state paying consumer may not be able to utilize some, or any, of the tax benefits, the TBRCC Network 12 of the present invention makes available, via the Internet, the total amount of tax benefits generated by the out-of-state paying consumer and makes those tax benefits available to other consumers and entities 16 (primarily consumers and entities filing tax returns in the state in which the educational institution is located and thus, are able to take advantage of that state's tax benefits, but could be other out-of-state consumers or entities) that have registered with, and provided their tax identification information to, the TBRCC Network of the present invention for the purpose of purchasing or trading for those tax benefits generated by the out-of-state paying consumer, and who/which may be willing to pay cash to, or trade goods, services or other tax benefits with, the out-of-state paying consumer, to receive those tax benefits with, in this example, the payment or trade less than or equal to the $30,000 tax benefit generated.
Having paid the out-of-state paying consumer for the paying consumer's tax benefits, the in-state (could be another out-of-state or a municipal) consumer or entity then files its tax return(s) with the various federal, state, and local taxing authorities 14 and takes the appropriate tax benefits based on the information provided by the TBRCC Network of the present invention.
As described hereinabove, the data center 12 of the Network includes web servers, application servers and database servers, including e-commerce servers, to support a web-based marketplace for the hosting, conversion, sale/trade and purchase of tax credits generated from subsidizing payment contributions made by paying consumers to tax-qualifying organizations (i.e. educational institutions), which provide the basis for tax deductions on the Network. For participating entities to purchase and/or trade tax credits on the Network of the present invention shown in FIG. 2 et seq., all that is required is a web-enabled browser and internet connectivity to communicate with the data center 12 of the Network.
As described hereinabove, the TBRCCN (“Network) described in FIG. 2 and other figures, provides each tax-qualified educational organization/institution access to a computer-based accounting system 41 that is programmed to (i) account for membership, tuition and other payments made by the paying consumer to the tax-qualified organization, and (ii) compute the cost of an economic, educational, or health benefit(s) provided thereby, and generating tax benefits for use by the paying consumer, based on the difference between a payment amount made by the paying consumer and the monetary value of economic or educational benefit(s) provided to students in financial need. The TBRCCN functions as an internet-based computer accounting network that includes each computer-based accounting system 41 accessible by tax-qualified educational organizations, and one or more database servers in Data Center 12 for storing, retrieving and accessing user account data relating to all registered participants, including tax identification information for all registered participants, and tax benefits data representative of tax benefits and/or transactions engaged in on the network, over specific accounting periods.
FIGS. 8 and 8A set forth a flow chart detailing the various steps allowing a paying consumer to sell or trade tax benefits, gained through out-of-state tuition/fee payment, via the TBRCC Network of the present invention.
As indicated at Block A, various educational organizations and institutions providing education benefits to out-of-state paying consumers register with the TBRCC Network of the present invention for the purpose of providing the out-of-state paying consumers with all available tax benefits, or remuneration for their available tax benefits related to their out-of-state tuition payments.
All participating tax-qualified organizations register with the Network, which maintains a user account for each registered tax-qualified organization, including tax identification information about the registered tax-qualified organization, information about subsiding payment contributions made to the registered tax-qualified organization by the paying consumers over a specific accounting period, and transactional information about tax benefits purchased, traded or acquired over the specific accounting period.
All participating paying consumers register with the Network, which maintains a user account for each registered paying consumer, including tax identification information about the registered paying consumer, information about subsiding payment contributions made by the paying consumer over specific accounting periods, and transactional information about tax benefits sold, traded or disposed of over these specific accounting period.
All participating network participating entities, including tax benefit purchasers, traders and/or acquirers, register with the Network, which maintains a user account for each registered network participating entity, including tax identification information about the registered network participating entity, and transactional information about tax benefits purchased, traded or acquired over the specific accounting period.
At Block B, an out-of-state paying consumer makes a tuition, and/or fee payment to an educational institution that uses part of the paying consumer's payment to provide an economic or educational benefit to the out-of-state paying consumer. This step is achieved by the tax-qualified educational organization using its computer-based accounting system 41 to calculate the cost(s) of the economic, educational, or health benefit(s) (e.g. services and/or goods) provided to paying consumer. The system 41 calculates the difference between (i) the total cost(s) of the economic, educational, or health benefit(s) provided to the paying consumer and, (ii) the actual payment amount made by the paying consumer for the services/goods. The system 41 calculates the amount of the subsidizing payment contribution provided by the paying consumer to the tax-qualified organization, which is used by the organization to subsidize payment for similar services provided by the organization to students in financial need. As described hereinabove, this calculated subsiding payment contribution (SPC) provides a basis for a tax benefit for the paying consumer.
As indicated at Block C, the educational institution uses as the amount of the out-of-state paying consumer's subsidizing payment contribution payment(s) to fund, or to pay for, educational benefits for those subsidized students who cannot afford or, can only partially afford, to pay for those educational benefits.
At Block D, as the educational benefit provided to subsidized students (i.e. customers) is quantifiable as the difference between the payment(s) made by the out-of-state paying consumer and the educational benefit received by the out-of-state paying consumer, the educational institution providing education benefits then reports, via the Internet, the benefit amount of the out-of-state paying consumer's subsidizing payment contribution payment(s), in this example $30,000, to all relevant taxing authorities and to the TBRCC Network of the present invention.
At Block E, because the out-of-state paying consumer may not be able to utilize some, or any, of the tax benefits generated, the TBRCC Network of the present invention makes available, via the Internet, the total amount of tax benefits generated by the out-of-state paying consumer and makes those tax benefits available to other consumers and entities that have registered with the TBRCC Network of the present invention, and that may be willing to pay cash to, or trade goods, services, or other tax benefits with, the out-of-state paying consumer to receive those tax benefits with, in this example, the payment or trade less than or equal to the $30,000 tax benefit generated.
At Block F, having paid the out-of-state paying consumer for the tax benefits, the in-state (could be another out-of-state or a municipal consumer or entity) consumer or entity then files its tax return(s) with the various federal, state, and local taxing authorities and takes the appropriate tax benefits based on the information provided by the TBRCC Network of the present invention.

Tax Benefit Recognition, Calculation and Capture Network (TBRCCN) of the Present Invention Used for the Purpose of Recognizing, Calculating and Receiving Full Economic Benefit for Tuition Payments and Repaying Education-Related Debt

FIG. 9 illustrates the utilization of the Tax Benefit Recognition, Calculation and Capture Network (TBRCCN) 12 of the Present Invention for the Purpose of Recognizing, Calculating and Receiving Full Economic Benefit for Tuition Payments and Repaying Education-Related Debt, whereby a paying consumer, or the paying consumer's financial institution that loaned the paying consumer education-related money, can sell or trade tax benefits for the purpose of reducing the paying consumer's overall education-related debt.
A paying consumer borrows money, for tuition and/or student fees, from a financial institution registered with the TBRCC Network of the present invention, from an account using the paying consumer's tax identification information as an identifier, providing the paying consumer with all available tax benefits, or remuneration for the available tax benefits related to their tuition and fee payments.
Next, various tax-qualified educational organizations and institutions 13 providing educational benefits to the paying consumer register with the TBRCC Network of the present invention for the purpose of providing the paying consumer with all available tax benefits, or remuneration for their available tax benefits related to their tuition and fee payments.
The paying consumer then makes a tuition, and/or fee payment to a tax-qualified educational institution 13 that uses part of the paying consumer's 11 payment to provide an economic or educational benefit to the paying consumer.
However, as the amount of the paying consumer's subsidizing payment contribution payment(s) exceed the educational benefit provided, the educational institution uses the excess payment amount to fund, or to pay for, educational benefits for those subsidized consumers 18 that cannot afford or, can only partially afford, to pay for those educational benefits.
As the educational benefit provided to subsidized customers is quantifiable as the difference between the payment(s) made by the out-of-state paying consumer and the educational benefit received by the paying consumer 11, the educational institution providing education benefits then reports, via the Internet, the tax deductible (or creditable) amount of the paying consumer's subsidizing payment contribution payment(s), in this example $30,000, to all relevant taxing authorities and to the TBRCC Network of the present invention.
Then, one of two possible events occurs. In the first, because the paying consumer may not be able to utilize some, or any, of the tax benefits generated, the TBRCC Network 12 of the present invention makes available, via the Internet, the total amount of tax deductible or tax creditable benefits generated by the paying consumer and makes those tax benefits available to other consumers and entities that have registered with the TBRCC Network of the present invention, and that may be willing to pay cash to, or trade goods, services, or other tax benefits with, the paying consumer to receive those tax benefits with, in this example, the payment or trade less than or equal to the $30,000 tax benefit generated.
Or, in the second option, because the paying consumer may not be able to utilize some, or any, of the tax benefits generated, the TBRCC Network of the present invention makes available, via the Internet, the total amount of tax benefits generated by the paying consumer, and makes those tax benefits available to other consumers and entities 16 that have registered with the TBRCC Network of the present invention, and that may be willing to pay cash to, or trade goods, services, or other tax benefits with either the paying consumer or the financial institution 16, which lent money to the paying consumer, to receive those tax benefits with, in this example, the payment or trade less than or equal to the $30,000 tax benefit generated, with such payment helping to reduce paying consumer's loan balance.
Finally, after paying either the paying consumer 11 or the financial institution 16 for the tax benefits generated by the paying consumer's tuition and student fee payment(s), the purchasing consumer or entity then files its tax return(s) with the various federal, state, and local taxing authorities 14 and takes the appropriate tax deductions and tax credits based on the information provided by the TBRCC Network of the present invention.
FIGS. 10 and 10A set forth a flow chart detailing the various steps in the Utilization of the Tax Benefit Recognition, Calculation and Capture Network (TBRCCN) of the Present Invention for the Purpose of Recognizing, Calculating and Receiving Full Economic Benefit for Tuition Payments and Repaying Education-Related Debt process of the present invention.
At Block A, a paying consumer borrows money, for tuition and/or student fees, from a financial institution registered with the TBRCC Network of the present invention, from an account using the paying consumer's tax identification information as an identifier, providing the paying consumer with all available tax benefits, or remuneration for the available tax benefits related to their tuition and fee payments.
At Block B, various educational organizations and institutions providing education benefits to the paying consumer register with the TBRCC Network of the present invention for the purpose of providing the paying consumer with all available tax benefits, or remuneration for their available tax benefits related to their tuition and fee payments.
During this registration step, all participating tax-qualified organizations register with the Network, which maintains a user account for each registered tax-qualified organization, including tax identification information about the registered tax-qualified organization, information about subsiding payment contributions made to the registered tax-qualified organization by the paying consumers over a specific accounting period, and transactional information about tax benefits purchased, traded or acquired over the specific accounting period.
All participating paying consumers also register with the Network, which maintains a user account for each registered paying consumer, including tax identification information about the registered paying consumer, information about subsiding payment contributions made by the paying consumer over specific accounting periods, and transactional information about tax benefits sold, traded or disposed of over these specific accounting period.
All participating network participating entities, including tax benefit purchasers, traders and/or acquirers, register with the Network, which maintains a user account for each registered network participating entity, including tax identification information about the registered network participating entity, and transactional information about tax benefits purchased, traded or acquired over the specific accounting period.
At Block C, the paying consumer makes a tuition, and/or fee payment to an educational institution that uses part of the paying consumer's payment to provide an economic or educational benefit to the paying consumer.
At Block D, as the amount of the paying consumer's payment(s) exceed the educational benefit provided, the educational institution uses the excess payment amount to fund, or to pay for, educational benefits for those subsidized students who cannot afford or, can only partially afford, to pay for those educational benefits.
At Block E, as the educational benefit provided to subsidized customers is computed as the difference between the payment(s) made by the out-of-state paying consumer and the educational benefit received by the paying consumer, the educational institution providing education benefits then reports, via the Internet, the tax deductible (or creditable) amount of the paying consumer's subsidizing payment contribution payment(s), in this example $30,000, to all relevant taxing authorities and to the TBRCC Network of the present invention. In particular, during this step, tax-qualified educational organization uses its computer-based accounting system 41 to calculate the cost(s) of the economic, educational, or health benefit(s) (e.g. services and/or goods) provided to paying consumer. The system 41 calculates the difference between (i) the total cost(s) of the economic, educational, or health benefit(s) provided to the paying consumer and, (ii) the actual payment amount made by the paying consumer for the services/goods. The system 41 calculates the amount of the subsidizing payment contribution provided by the paying consumer to the tax-qualified educational organization, which is used by the organization to subsidize payment for similar services provided by the organization to those in financial need. As described hereinabove, this calculated subsiding payment contribution (SPC) provides a basis for a tax benefit for the paying consumer.
Blocks F and G offer two different options available in the Utilization of the Tax Benefit Recognition, Calculation and Capture Network (TBRCCN) of the Present Invention for the Purpose of Recognizing, Calculating and Receiving Full Economic Benefit for Tuition Payments and Repaying Education-Related Debt process of the present invention.
At Block F, because the paying consumer may not be able to utilize some, or any, of the tax benefits generated, the TBRCC Network of the present invention makes available, via the Internet, the total amount of tax deductible or tax creditable benefits generated by the paying consumer and makes those tax benefits available to other consumers and entities that have registered with the TBRCC Network of the present invention, and that may be willing to pay cash to, or trade goods, services, or other tax benefits with, the paying consumer to receive those tax benefits with, in this example, the payment or trade less than or equal to the $30,000 tax benefit generated. As the Network of the present invention is e-commerce enabled, these participating entities can purchase such tax benefits over the network using any web-enabled browser pointing to the web servers of the internet-enabled data center 12.
Or, at Block G, because the paying consumer may not be able to utilize some, or any, of the tax benefits generated, the TBRCC Network of the present invention makes available, via the Internet, the total amount of tax benefits generated by the paying consumer and makes those tax benefits available to other consumers and entities that have registered with the TBRCC Network of the present invention, and that may be willing to pay cash to, or trade goods, services, or other tax benefits with either the paying consumer or the financial institution, which lent money to the paying consumer, to receive those tax benefits with, in this example, the payment or trade less than or equal to the $30,000 tax benefit generated, with such payment helping to reduce paying consumer's loan balance.
Finally, at Block H, having paid the paying consumer or financial institution for the generated tax benefits, the purchasing consumer or entity then files its tax return(s) with the various federal, state, and local taxing authorities and takes the appropriate tax deductions and tax credits based on the information provided by the TBRCC Network of the present invention.

Tax Benefit Calculation, Conversion, and Sale for the Purpose of Reducing a Paying Consumer's Education Loan Balance

FIG. 11 is a schematic representation of the TBRCCASM 42 of the present invention calculating a paying consumer's generated tax benefit (tax deduction), and sending it to the TBRCC network 12 of the present invention for conversion from a tax deduction to a tax credit, which has a higher economic value and which, is allowed solely for the purpose of reducing said paying consumer's educational loan debt.
The conversion is accomplished by taking the amount of the tax deduction ($7,500) which, by definition, shelters a portion of a paying consumer's income from taxes and is based on the paying consumer's tax bracket, verifying that the paying consumer's amount of outstanding educational loan debt is higher than the amount of the generated tax deduction, and then converting an amount of the tax deduction into a tax credit up to the entire amount of the paying consumer's educational loan balance. The new tax credit is fully deductible from a taxpayer's income taxes due and is, thus, much more valuable than the previous tax deduction.
The TBRCC Network 12 then offers the converted tax benefit to participating other consumers and entities for purchase, with the proceeds of the tax benefit sale directed to the paying consumer's financial institution (or other lender) for the purpose of reducing the paying consumer's education loan balance.
When the TBRCCASM 42 of the present invention calculates the paying consumer's subsidizing payment contribution-generated tax benefit, instead of sending the information to the paying consumer directly, and with the paying consumer's consent, the TBRCCASM sends the generated tax benefit information directly to the TBRCC Network of the present invention.
Other consumers and other entities 16 participating on the TBRCC Network then see the available tax benefits available for purchase; however, because the deductions are generated by a paying consumer 11 paying tuition or other potentially tax-deductible fees and, because the money paid for the tax benefits is going solely to repay outstanding student (or other) debt, these tax deductions will be allowed, by the IRS and other taxing authorities 14, to be converted to tax credits, which have greater economic value than tax deductions.
Once the tax deduction-to-tax credit conversion is completed and quantified by the TBRCC Network 12, the new tax credits are made available for purchase (or trade) to participating consumers or other entities 16 via the internet or other means.
A participating consumer or other entity 16 agrees to pay an amount less than, or equal to, the amount of the available tax credit, with the participating consumer's or other entity's payment either, being sent directly to a financial institution 16 for the purpose of reducing the paying consumer's outstanding debt balance, or the payment can be sent directly to the paying consumer with the understanding that the paying consumer will use the payment amount to reduce the paying consumer's outstanding debt balance with the financial institution.
Once the payment for the newly-created tax credit is sent from another consumer or entity, the TBRCC Network, the consumer or other entity, the paying consumer, and the financial institution, all file tax returns with the relevant taxing authorities reconciling the tax deduction-to-tax credit conversion, the amounts involved, and all tax ID numbers.
FIGS. 11A and 11B set forth a flow chart detailing the various steps in the Utilization of the Tax Benefit Recognition, Calculation and Capture Network (TBRCCN) of the Present Invention for the Purpose of Converting Paying Consumer Tax Deductions into Tax Credits for Sale and Reduction of Outstanding Student (or other) Debt process. As described hereinabove, the data center 12 of the Network includes web servers, application servers and database servers, including e-commerce servers, to support a web-based marketplace for the hosting, conversion, sale/trade and purchase of tax credits generated from subsidizing payment contributions made by paying consumers to tax-qualifying organization, which provide the basis for tax deductions on the Network. For participating entities to purchase and/or trade tax credits on the Network of the present invention shown in FIG. 2 et seq., all that is required is a web-enabled browser and internet connectivity to communicate with the data center 12 of the Network.
As described hereinabove, the TBRCCN (“Network) described in FIG. 2 and other figures, provides each tax-qualified organization access to a computer-based accounting system 41 that is programmed to (i) account for membership, tuition and other payments made by the paying consumer to the tax-qualified organization, and (ii) compute the cost of an economic, educational, or health benefit(s) provided thereby, and generating tax benefits for use by the paying consumer, based on the difference between a payment amount made by the paying consumer and the monetary value of economic or educational benefit(s) provided to others in financial need. The TBRCCN functions as an internet-based computer accounting network that includes each computer-based accounting system 41 accessible by tax-qualified organizations, and one or more database servers in data center 12 for storing, retrieving and accessing user account data relating to all registered participants, including tax identification information for all registered participants, and tax benefits data representative of tax benefits and/or transactions engaged in on the network, over specific accounting periods.
All participating tax-qualified organizations register with the Network, which maintains a user account for each registered tax-qualified organization, including tax identification information about the registered tax-qualified organization, information about subsiding payment contributions made to the registered tax-qualified organization by the paying consumers over a specific accounting period, and transactional information about tax benefits purchased, traded or acquired over the specific accounting period.
All participating paying consumers register with the Network, which maintains a user account for each registered paying consumer, including tax identification information about the registered paying consumer, information about subsiding payment contributions made by the paying consumer over specific accounting periods, and transactional information about tax benefits sold, traded or disposed of over these specific accounting period.
All participating network participating entities, including tax benefit purchasers, traders and/or acquirers, register with the Network, which maintains a user account for each registered network participating entity, including tax identification information about the registered network participating entity, and transactional information about tax benefits purchased, traded or acquired over the specific accounting period.
At an appropriate time during the specific accounting period, the tax-qualified organization uses its computer-based accounting system 41 to calculate the cost(s) of the economic, educational, or health benefit(s) (e.g. services and/or goods) provided to paying consumer. The system 41 calculates the difference between (i) the total cost(s) of the economic, educational, or health benefit(s) provided to the paying consumer and, (ii) the actual payment amount made by the paying consumer for the services/goods. The system 41 calculates the amount of the subsidizing payment contribution provided by the paying consumer to the tax-qualified organization, which is used by the organization to subsidize payment for similar services provided by the organization to those in financial need. As described hereinabove, this calculated subsiding payment contribution (SPC) provides a basis for a tax benefit for the paying consumer.
As indicated at Block A in FIG. 11A, after the TBRCCASM of the present invention calculates the paying consumer's subsidizing payment contribution, the TBRCCASM sends, with the paying consumer's consent, the generated tax benefit information directly to the TBRCC Network of the present invention.
As indicated at Block B, consumers and other entities participating on the TBRCC Network then see the available tax benefits (deductions) available for purchase (via web-based GUIs served up by the data center servers 12); however, because the deductions are generated by a paying consumer paying tuition or other potentially tax-deductible fees and, because the money paid for the tax benefits is going solely to repay outstanding student debt, these tax deductions will be allowed, by the IRS and other taxing authorities, to be converted to tax credits, which have greater economic value than tax deductions.
At Block C, the conversion is accomplished by the TBRCC Network taking the amount of the tax deduction ($7,500), supplied by the TBRCCASM and which, by definition, shelters a portion of a paying consumer's income from taxes and is based on the paying consumer's tax bracket, verifying that the paying consumer's amount of outstanding educational loan debt (supplied by paying consumer or paying consumer's financial institution) is greater than or equal to the amount of the generated tax deduction, and then converting an amount of the tax deduction into a tax credit up to the entire amount of the paying consumer's educational loan balance (≧$7,500 in FIG. 11). The new tax credit is fully deductible from a taxpayer's income taxes due and is, thus, much more valuable than the previous tax deduction.
At Block D, once the tax deduction-to-tax credit conversion is completed and quantified by the TBRCC Network, the new tax credits are made available for purchase (or trade) to participating consumers or other entities.
As indicated at Block E in FIG. 11B, a participating consumer or other entity agrees to pay an amount less than, or equal to, the amount of the available tax credit, with the payment either being sent directly to a financial institution for the purpose of reducing the paying consumer's outstanding debt balance, or the payment can be sent directly to the paying consumer with the understanding that the paying consumer will use the payment amount to reduce the paying consumer's outstanding debt balance with the financial institution.
At Block F, the TBRCC Network, the consumer or other entity, the paying consumer, and the financial institution, all file tax returns with the relevant taxing authorities reconciling the tax deduction-to-tax credit conversion, the amounts involved, and all tax ID numbers.
Utilization of the Tax Benefit Recognition, Calculation and Capture Network (TBRCCN) of the Present Invention for the Purpose of Converting Paying Consumer Tax Deductions into Tax Credits for Sale and Reduction of Outstanding Student (or Other) Debt
In FIGS. 11, 11A and 11B, the TBRCC Network of the present invention has been used to generate a subsidizing payment contribution based tax deduction benefit, and thereafter convert such tax deductions into tax credits for sale/trade and reduction of outstanding student, or other forms of financial debt. It is appropriate this juncture to describe this process and network in greater detail with reference to the process described in FIGS. 12A through 12D, with reference to FIGS. 2, 3A, 3B, 3C, 3F, 3H, 4, and 11.
This e-commerce enabled process, supported by the web-enabled network of FIG. 2, described in great detail hereinabove, is designed to help paying consumers of all kinds recognize, calculate, and capture subsidizing payment contributions, which provide a basis for tax benefits generated when making payments to tax-qualified organizations for economic, educational, or health benefits.
As indicated at Block A in FIG. 12A, each tax-qualified organization is provided access to a computer-based accounting system programmed to account for membership, tuition and other payments made by the paying consumer to the tax-qualified organization, and compute the cost of an economic, educational, or health benefit(s) provided thereby, and generating tax benefits for use by the paying consumer, based on the difference between a payment amount made by the paying consumer and the monetary value of the economic or educational benefit(s) provided to others in financial need.
As indicated at Block B in FIG. 12A, an internet-based computer accounting network is provided by the TBRCCN, and includes each computer-based accounting system 41 accessible by the tax-qualified organizations (e.g. educational institution), and one or more database servers in the data center 12 for storing, retrieving and accessing user account data relating to all registered participants, including tax identification information for all registered participants, and tax benefits data representative of tax benefits and/or transactions engaged in on the internet-based computer accounting network, over specific accounting periods.
As indicated at Block C in FIG. 12A, one or more tax-qualified organizations register with the internet-based computer accounting network, and a user account is maintained for each registered tax-qualified organization, including tax identification information about the registered tax-qualified organization, information about subsiding payment contributions made to the registered tax-qualified organization by the paying consumers over a specific accounting period, and transactional information about tax benefits purchased, traded or acquired over the specific accounting period.
As indicated at Block D in FIG. 12B, one or more paying consumers register with the internet-based computer accounting network, and a user account is maintained for each registered paying consumer, including tax identification information about the registered paying consumer, information about subsiding payment contributions made by the paying consumer over the specific accounting periods, and transactional information about tax benefits sold, traded or disposed of over the specific accounting period.
As indicated at Block E in FIG. 12B, one or more network participating entities, including tax benefit purchasers, traders and/or acquirers, register with the internet-based computer accounting network, and a user account is maintained for each registered network participating entity, including tax identification information about the registered network participating entity, and transactional information about tax benefits purchased, traded or acquired over the specific accounting period.
As indicated at Block F in FIG. 12B, the paying consumer pays an amount of money to the tax-qualified organization for economic, educational, or health benefits including services and/or goods, wherein the payment made exceeds the cost of the economic, education, or health benefit(s) provided by the tax-qualified organization to the paying consumer, and wherein the difference between the amount of money paid by the paying consumer and the actual total cost of the economic, educational, or health benefit(s) provided is used to subsidize the provision of similar economic, educational, or health benefits to consumers in financial need by the tax-qualified organization.
As indicated at Block G, (g) the tax-qualified organization calculates the actual cost(s) of the economic, educational, or health benefit(s) provided to the paying consumer.
As indicated at Block H, the tax-qualified organization calculates the difference between (i) the payment amount made by the paying consumer and (ii) the actual total cost(s) of the economic, educational, or health benefit(s) provided to the paying consumer, and this amount is recognized as a subsidizing payment contribution made by the paying consumer, above and beyond the actual cost of services/goods provided to the paying consumer by the tax-qualified organization.
As indicated at Block I in FIG. 12C, the paying consumer is provided, for tax calculation and filing purposes, the amount of the calculated, subsidizing payment contribution provided by said paying consumer to said tax-qualified organization, (computed in Step H), providing a basis for a tax benefit during the accounting period in question. This subsidizing payment contribution is based on the said difference between (i) (ii) the payment amount made by said paying consumer, and (ii) the actual total cost(s) of the economic, educational, or health benefit(s) provided to the paying consumer, and this difference in payment amount (i.e. monetary value) is used by the tax-qualified organization to subsidize providing similar economic, educational, or health benefit(s) (i.e. services and/or goods) to the other consumers in financial need.
As indicated at Block J in FIG. 12C, the paying consumer and the servers associated with the internet-based computer accounting network are provided with electronic documents representing the subsidizing payment contribution calculated by the tax-qualified organization(s). This computed figure provides a basis for a generated tax benefit in the form of a tax deduction, which may be converted into a more valuable tax benefit in the form of tax credit, of greater value solely for the purpose of reducing said paying consumer's educational-related or healthcare-related loan balance.
As indicated at Block K in FIG. 12C, the tax benefit (i.e. credit) of greater value is sold to the network participating entities. This purchase may involve an e-commerce transaction supported over the Network using debt and/or credit financing.
As indicated at Block L in FIG. 12C, the proceeds from the sale of the tax benefit of greater value (i.e. tax credits) are directed to a financial lending institution for the purpose of reducing the paying consumer's (or family member's) educational-related or healthcare-related loan balance, or to a paying consumer for the purpose of reducing the paying consumer's educational-related or healthcare-related loan balance, as the case may be.
As indicated at Block M in FIG. 12C, the network participating entities are provided, for tax calculation and filing purposes, the amount of the purchased tax benefit of greater value (i.e. the purchased tax credit).
As indicated at Block N in FIG. 12D, the internet-based computer accounting network provides the paying consumer, for tax calculation and filing purposes, with the amount of the subsidizing payment contribution providing the basis for a generated, calculated, and sold tax benefit (i.e. credit) of greater value.
As indicated at Block O in FIG. 12D, the internet-based computer accounting network also provides relevant taxing authorities with all the subsidizing payment contribution information that is used to generate, calculate, and sell a tax benefit, along with tax identification information of the paying consumer, other network participating entities, and the tax-qualified organization, reconciliation of the calculated tax benefit.
It is intended that the process of the present invention described above will be supported on the Internet, and will be accessible by many different kinds of users, including (i) paying consumers (e.g. students, parents, patients et al), (ii) tax-qualified organizations, (iii) network participating entities (e.g. financial institutions seeking to purchase or acquire tax credits on the network), and (iv) government agencies, etc. The primary requirement to access and use the network is to have a computing system with a web-based browser, a display screen, keyboard, mouse, and Internet connectivity. The display screen will support the graphical user interfaces (GUIs) generated and served by the servers of the Network Data Center 12 during tax credit search, find and acquisition process described above, and also during the process where the paying consumer sells such tax credits and uses the financial proceeds (i.e. funds) generated by the transaction to pay a portion of the loans procured to finance the student's education, and/or tuition and living expenses invoice provided to the student by the educational organization. By doing so, the network and process of the present invention shown in FIGS. 2 through 11B is able to help effectively alleviate the financial burden shouldered by paying consumers while helping those in financial need, thereby increasing the general welfare of society.
It has been assumed throughout the present Specification that the necessary changes in tax law will be implemented to practice various aspects of the present invention.
Also, it is understood that the illustrative embodiments may be modified in a variety of ways which will become readily apparent to those skilled in the art of having the benefit of the novel teachings disclosed herein. All such modifications and variations of the illustrative embodiments thereof shall be deemed to be within the scope and spirit of the present invention as defined by the Claims to Invention appended hereto.

Claims

1. A computer-based accounting system for recognizing, computing and capturing a subsidizing payment contribution made by a consumer when paying for services provided by a tax-qualified organization also providing services to others in need in a wholly or partially subsidized manner, said computer-based accounting system comprising:

an accounting software subsystem for accounting costs incurred by said organization to provide said services to said paying consumers and said others in need, and also revenue generated by said tax-qualified organization, over a predetermined accounting period;

a first computer accounting software module, residing within said integrated accounting software subsystem, and configured for computing a total average cost per consumer for said services provided to said consumer by said tax-qualified organization, over said predetermined accounting period; and

a second computer accounting software module, in communication with said first computer accounting software module, utilizing (i) said total average cost per consumer and (ii) an individual consumer invoice providing a statement of payment due for services and/or goods to be paid for said paying consumer, so as to (i) compute a subsidizing payment contribution made said paying consumer for services of those in need provided by said tax-qualified organization in a wholly or partially subsidized manner, and (ii) generate an electronic document containing data representative of said subsidizing payment contribution;

wherein said subsidizing payment contribution is based on the difference between (i) said actual payment for services and/or goods reflected in said individual consumer invoice, and (ii) said total average cost per consumer for said services provided to said consumer by said tax-qualified organization; and,

a device for displaying and/or transmitting said electronic document to said consumer;

whereby said subsidizing payment contribution may be used to create a basis for tax benefits for said paying consumer, and/or tax status support for said tax-qualified organization.

2. The computer-based accounting system of claim 1, wherein said subsiding payment contribution is used to claim a tax benefit, in the form of a deduction or credit, in a tax return filing.

3. The computer-based accounting system of claim 1, comprising a database server and application server supporting said accounting software subsystem.

4. The computer-based accounting system of claim 3, wherein said application and database servers are operably connected to the infrastructure of the Internet.

5. The computer-based accounting system of claim 1, wherein said device further comprises at least one of a graphical display device, a document printer, and a document transmitter.

6. A computer-based accounting system for recognizing, computing and capturing a subsidizing payment contribution made by a consumer when paying for services provided by a tax-qualified organization also providing services to others in need in a wholly or partially subsidized manner, said computer-based accounting system comprising:

wherein said subsidizing payment contribution is based on the difference between (i) said actual payment for services and/or goods reflected in said individual consumer invoice, and (ii) said total average cost per consumer for said services provided to said consumer by said tax-qualified organization; and

a device for displaying or transmitting said electronic document to said consumer;

whereby said subsidizing payment contribution may be used to create a basis for tax benefits for said paying consumer;

wherein said basis for tax benefits represents a tax deductible amount; and

wherein said tax deductible amount is converted to a greater, tax creditable amount for resale to said other consumers and entities for the purpose of reducing said paying consumer's educational-related or healthcare-related debt.

7. The computer-based accounting system of claim 6, wherein said subsiding payment contribution is used to claim a tax benefit, in the form of a deduction or credit, in a tax return filing.

8. The computer-based accounting system of claim 6, comprising a database server and application server supporting said accounting software subsystem.

9. The computer-based accounting system of claim 7, wherein said application and database servers are operably connected to the infrastructure of the Internet.

10. The computer-based accounting system of claim 6, wherein said device further comprises at least one of a graphical display device, a document printer and a document transmitter.

11. A method of recognizing, calculating, and capturing a subsidizing payment contribution constituting a basis for tax benefits generated by paying consumers when making payments to tax-qualified organizations for economic, educational, or health benefits, wherein the amount of said payments exceeds the costs of the economic, educational, or health benefits provided and, wherein the amount of excess payment is used to subsidize other consumers in financial need, said method comprising the steps of:

(a) providing each tax-qualified organization access to a computer-based accounting system programmed to account for membership, tuition and other payments made by said paying consumer to said tax-qualified organization, and compute the cost of an economic, educational, or health benefit(s) provided thereby, and generating tax benefits for use by said paying consumer, based on the difference between a payment amount made by the paying consumer and the monetary value of said economic or educational benefit(s) provided to others in financial need;

(b) providing an internet-based computer accounting network including each said computer-based accounting system accessible by said tax-qualified organizations, and one or more database servers for storing, retrieving and accessing user account data relating to all registered participants, including tax identification information for all registered participants, and tax benefits data representative of tax benefits and/or transactions engaged in on said internet-based computer accounting network, over specific accounting periods;

(c) registering one or more said tax-qualified organizations with said internet-based computer accounting network, and maintaining a user account for each registered tax-qualified organization, including tax identification information about said registered tax-qualified organization, information about subsiding payment contributions made to said registered tax-qualified organization by said paying consumers over a specific accounting period, and transactional information about tax benefits purchased, traded or acquired over said specific accounting period;

(d) registering one or more paying consumers with said internet-based computer accounting network, and maintaining a user account for each registered paying consumer, including tax identification information about the registered paying consumer, information about subsiding payment contributions made by said paying consumer over said specific accounting periods, and transactional information about tax benefits sold, traded or disposed of over said specific accounting period;

(e) registering one or more network participating entities, including tax benefit purchasers, traders and/or acquirers, with said internet-based computer accounting network, and maintaining a user account for each registered network participating entity, including tax identification information about said registered network participating entity, and transactional information about tax benefits purchased, traded or acquired over said specific accounting period;

(f) paying, by said paying consumer, an amount of money to said tax-qualified organization for economic, educational, or health benefits including services and/or goods, wherein the payment made exceeds the cost of said economic, education, or health benefit(s) provided by said tax-qualified organization to said paying consumer, and wherein, the difference between the amount of money paid by said paying consumer and the cost of said economic, educational, or health benefit(s) provided is used to subsidize the provision of similar said economic, educational, or health benefits to consumers in need by said tax-qualified organization;

(g) calculating, by said tax-qualified organization, the cost(s) of said economic, educational, or health benefit(s) provided to said paying consumer;

(h) calculating, by said tax-qualified organization, the difference between (i) the cost(s) of said economic, educational, or health benefit(s) provided to said paying consumer and, (ii) the payment amount made by said paying consumer;

(i) providing, to said paying consumer, for tax calculation and filing purposes, the amount of the calculated, subsidizing payment contribution provided by said paying consumer to said tax-qualified organization, providing a basis for a tax benefit, wherein said subsidizing payment contribution is based on the said difference between (i) the cost(s) of said economic, educational, or health benefit(s) provided to said paying consumer and, (ii) the payment amount made by said paying consumer, wherein said difference being used by said tax-qualified organization to subsidize providing similar economic, educational, or health benefit(s) to said other consumers in need; and

(j) providing, to relevant taxing authorities, all said calculated tax benefit information, including said subsidizing payment contribution, along with said paying consumer's and said tax-qualified organization's tax identification information, for reconciliation of said calculated tax benefit.

12. The method of claim 11, wherein step (k) further comprises providing said paying consumer with access to said other participating entities for the purpose of selling or trading said paying consumer's generated tax benefits for cash, goods, services, or other tax benefits.

13. The method of claim 12, wherein at the completion of a sale or trade pursuant to step (l), providing, to relevant taxing authorities, all said calculated tax benefit information along with both said paying consumer's, said other participating entities', and said tax-qualified organization's or institution's tax identification information for reconciliation of said calculated, subsidizing payment contribution generated tax benefit and possible taxes incurred in said sale or trade of said generated tax benefit.

14. The method of claim 11, wherein step (f) comprises said plurality of participating tax-qualified organizations agreeing to an universal subsidizing payment contribution tax benefit generation calculation format and presentation, and supplying all participating said internet-based computer accounting network paying consumers with access to said format and presentation accessible by reconciled tax identification numbers and other paying consumer identification criteria.

15. The method of claim 11, wherein step (j) further comprises compiling all of said paying consumer's subsidizing payment contribution-generated tax benefits into one composite, aggregated statement for the purpose of filing it with various said relevant taxing authorities.

16. The method of claim 12, wherein said network participating entities trading various other states' and/or municipalities' tax benefits for said paying consumer's subsidizing payment contribution-generated tax benefit(s) allowing all parties to maximize the economic value of said paying consumer's generated tax benefit(s), which may be state or municipality specific.

17. The method of claim 11, wherein said internet-based computer accounting network is configured to analyze said paying consumer's subsidizing payment contribution, as basis for a tax benefit, data in said one or more databases, and said network participating entities' supplied financial data in said one or more databases, for the purpose of recommending to both parties the minimum or maximum amount of cash, goods, services, or other tax benefits that might be paid or traded for said paying consumer's subsidizing payment contribution-generated tax benefit(s), while still providing economic value to both parties.

18. The method of claim 11, wherein said network participating entities trading various other states' and/or municipalities' tax benefits for said paying consumer's subsidizing payment contribution-generated tax benefit(s) created by donation of property or other goods or services to said tax-qualified organizations and institutions, allowing all parties to maximize the economic value of said paying consumer's subsidizing payment contribution-generated tax benefit(s), which may be state or municipality specific.

19. The method of claim 11, wherein said network participating entities paying cash or trading good and/or services for said paying consumer's subsidizing payment contribution-generated tax benefit(s) created by donation of property or other goods or services to said tax-qualified organizations and institutions, allowing all parties to maximize the economic value of said paying consumer's subsidizing payment contribution-generated tax benefit(s), which may be state or municipality specific.

20. The method of claim 17, wherein said registered paying consumer establishes criteria allowing said other participating consumers and entities to match, beat, or counter, offers received by said internet-based computer accounting network paying consumer from other said participating consumers and entities, with respect to said paying consumer's subsidizing payment contribution as basis for generated tax benefit(s) available for sale or trade.

21. The method of claim 11, wherein said registered paying consumer receiving all past, unclaimed, subsidizing payment contributions as basis for generated tax benefits by having said plurality of participating tax-qualified organizations and institutions calculate said past, unclaimed, subsidizing payment contribution-generated tax benefits for paying consumer's past payments where, said past, unclaimed, subsidizing payment contributions as basis for generated tax benefits are calculated based on the said difference between (i) the cost(s) of said economic or educational benefits provided to said paying consumer and, (ii) the payment amount made by said paying consumer, and where, all payments made to any one of said plurality of participating tax-qualified organizations and institutions in past years, or up to various statutes of limitations, are eligible.

22. The method of claim 11, wherein step (e) comprises registering a plurality of financial institutions for the purpose of allowing said paying consumer, or one or more of said plurality of financial institutions, to sell or trade said subsidizing payment contribution-generated tax benefits for the purpose of reducing or eliminating outstanding debt incurred for educational purposes.

23. The method of claim 11, wherein said computer-based accounting system used by said registered tax-qualified organizations comprise an embedded software computing module, wherein the costs of provided said economic, educational, or health benefit(s) is calculated and subtracted from the payment for said economic, educational, or health benefit(s), to generate a subsidizing payment contribution amount as basis for a tax benefit, and then said embedded software computing module communicating said tax benefit amount to the payer, electronically or physically, potentially to the payer's lender, and to all relevant taxing authorities.

24. A method of recognizing, calculating, and capturing a subsidizing payment contribution constituting a basis for tax benefits generated by paying consumers when making payments to tax-qualified organizations for economic, educational, or health benefits, wherein the amount of said payments exceeds the costs of the economic, educational, or health benefits provided and, wherein the amount of excess payment is used to subsidize other consumers in financial need, said method comprising the steps of:

(f) paying, by said paying consumer, an amount of money to said tax-qualified organization for economic, educational, or health benefits including services and/or goods, wherein the payment made exceeds the cost of said economic, education, or health benefit(s) provided by said tax-qualified organization to said paying consumer, and wherein the difference between the amount of money paid by said paying consumer and the cost of said economic, educational, or health benefit(s) provided is used to subsidize the provision of similar said economic, educational, or health benefits to consumers in need by said tax-qualified organization;

(i) providing, to said paying consumer, for tax calculation and filing purposes, the amount of the calculated, subsidizing payment contribution provided by said paying consumer to said tax-qualified organization, providing a basis for a tax benefit, wherein said subsidizing payment contribution is based on the said difference between (i) the payment amount made by said paying consumer and (ii) the actual total cost(s) of said economic, educational, or health benefit(s) provided to said paying consumer, wherein said difference being used by said tax-qualified organization to subsidize providing similar economic, educational, or health benefit(s) to said other consumers in need;

(j) converting, by said internet-based computer accounting network, said subsidizing payment contribution as basis for a generated tax benefit in the form of a tax deduction, into a more valuable tax benefit in the form of tax credit, of greater value solely for the purpose of reducing said paying consumer's educational-related or healthcare-related loan balance;

(k) selling said tax benefit of greater value to said network participating entities;

(l) directing said proceeds from the sale of said tax benefit of greater value to a lending institution for the purpose of reducing said paying consumer's educational-related or healthcare-related loan balance, or to said paying consumer for the purpose of reducing said paying consumer's educational-related or healthcare-related loan balance;

(m) providing, to said network participating entities, for tax calculation and filing purposes, the amount of purchased said tax benefit of greater value;

(n) providing, to said paying consumer, for tax calculation and filing purposes, the amount of the subsidizing payment contribution as basis for a generated, calculated, and sold said tax benefit of greater value provided by said internet-based computer accounting network; and

(o) providing, to relevant taxing authorities, all said subsidizing payment contribution information used to generate, calculate, and sell a tax benefit, along with tax identification information of said paying consumer, said other consumers and entities and said tax-qualified organization, for reconciliation of said calculated tax benefit.

25. A method of recognizing, computing and capturing a subsidizing payment contribution made by a consumer when paying for services provided by a tax-qualified organization which is also providing services to others in need in a wholly or partially subsidized manner, said method comprising the steps of:

(a) using an accounting system to account for costs incurred by said tax-qualified organization to provide said services to said paying consumers and said others in need, and also for revenue generated by said tax-qualified organization, over a predetermined accounting period;

(b) using a first computer accounting software module, residing within said integrated accounting software subsystem, to compute a total average cost per consumer for said services provided to said consumer by said tax-qualified organization, over said predetermined accounting period; and

(c) using a second computer accounting software module, in communication with said first computer accounting software module, to (i) process said total average cost per consumer and an individual consumer invoice providing a statement of the payment due for services and/or goods to be paid for said paying consumer, (ii) compute a subsidizing payment contribution made said paying consumer for services of those in need provided by said tax-qualified organization in a wholly or partially subsidized manner, and (iii) generate an electronic document containing data representative of said subsidizing payment contribution;

(d) displaying and/or transmitting said electronic document to said consumer;

whereby said subsidizing payment contribution may be used to create a basis for tax benefits for said paying consumer, and/or tax status support for said organization.

26. The method of claim 25, wherein said subsiding payment contribution is used to claim a tax benefit, in the form of a deduction or credit, in a tax return filing.

27. The method of claim 25, wherein said basis for tax benefits representing a tax deductible amount; and said tax deductible amount being converted to a greater, tax creditable amount; and

said tax creditable amount being sold to other consumers and entities for the purpose of reducing the educational-related or healthcare-related debt of said paying consumer.