Thursday, November 5, 2020
Tuesday, September 22, 2020
Individual Tax Saving Ideas Saving money is always a good thing. But when it comes to your taxes, it can seem like you're stuck paying the amount you are told to pay. However, this is simply not the case.
While the tax code is rigid and there are a lot of rules to follow, the truth is that many people don't take the time to learn how the rules work and how they can work to their advantage. Often, there are rules that can help to lower your annual gross income so that you're not only lessening your taxes, but also getting a larger return for that vacation you've always wanted to take.
First of all, what you need to realize is that there are two different kinds of deductions that are listed in tax law deductions and tax credits Deductions are those costs that are subtracted from your gross income on the front side of a tax form before anything else is taken off.
These help to lower your tax bracket first along with the standardized deductions that everyone has on their forms. Tax credits are those deductions that come directly off of the amount you are to be taxed. Obviously, these are much more significant and will help to dramatically lower your owed taxes. When you look at a basic 1040 form, which the usual form that most individuals use, you will notice that on the front of the form, you can take deductions for the following: Exemptions That is, those people who are dependent on you. You get a tax break for them. This is generally going to be one or two if you don't have any children (single or married correspond with one and two). You might also reduce the taxes you owe at the end of the year by reducing the exemptions you claim on your initial W-2 form.
Instead of claiming '1,' you might want to claim '0.' This maximizes the amount of taxes that are taken from your paycheck. There are also standard deductions that everyone can take. Some of these include (for the 2007 tax year):
Single deduction: $5350
Married, filing separately deduction: $5350
Married, filing jointly: $10700
Head of Household: $7850
Widow(er): $10700 Each year these deductions seem to go up and help ease the burden of taxes on everyone in some way. These deductions will go on Schedule A to help reduce your gross income: Medical deductions If you have a lot of medical expenses, you will want to keep receipts and make sure to enter in the totals here.
What can and can not be included in this total varies per year, so you will want to check with the IRS to see what the current rules are. These costs can not be something that was reimbursed by your health insurance company or by another else. Taxes that you already paid If you already paid estimated taxes, you will want to make sure that you are listing that total. This can be money that you sent the IRS to help with this section or it can be associated with a business. Home mortgage interest and points
Wednesday, September 16, 2020
If you owe the IRS or State more than you can afford to pay, you are allowed to make payments over a given period of time.
Streamlined installment agreement allows you to pay your tax debt balance in full over a 72-month period. Call (855) 913-0249 for free tax consultation.
If you cannot fully pay off your balance you may claim hardship where you make payments based on your ability to pay and not on the amount you owe. If the circumstances apply, you may not need to pay anything.
Tuesday, September 15, 2020
According to the IRS, an Enrolled Agent is a professional who is “recognized to practice before the IRS.” What this means is that an Enrolled Agent is a professional of whom the IRS is satisfied that he or she is trained to handle all tax related issues on behalf of taxpayers.
An Enrolled Agent undergoes comprehensive training and testing in U.S. taxes. What are the qualifications of an enrolled tax agent? To qualify as an Enrolled Agent, one first needs to pass a professional exam on taxes.
The Enrolled Agent test is in three parts. The test examines the candidates’ knowledge of various IRS procedures and rules, tax return forms, and the various deductions, credits, and entries. Former IRS agents and workers are provided various exemptions from this test. Upon passing the test, a candidate applies to the IRS to get an Enrolled Agent’s license. Before approving the application, the IRS performs a background check to confirm that the applicant does not have a felony charge and does not have issues of professional misconduct. The applicant also needs to be updated with their personal taxes.
Once the IRS approves an applicant, the applicant is licensed to operate as an Enrolled Agents for 3 years. Within this time, the agent is also required to undertake a 72 hours continuous training to keep them up to date with all tax issues. Failure to meet these training requirements will have the agent lose his or her license after the 3 year term. The training and examination of Enrolled Tax Agents is much more comprehensive than that of “non professional” tax preparers. Tax preparers who are not attorneys, CPAs, or Enrolled Agents only undertake one exam on 1040 tax returns and are only required to have an annual continuous training of 15 hours to keep their licenses. What Can an Enrolled Tax Agent Handle? The training of Enrolled Agents enables them to provide various services including but not limited to the following:
Starting 2011, the IRS requires tax preparers to undergo testing, annual training and meet other requirements to keep their practicing license. However, for CPAs, attorneys, and Enrolled Agents, the IRS does not have such strict requirements, as it believes that these professionals are well trained to handle any tax issues. Most taxpayers know and understand the CPA (accountant) profession and attorneys. However, there are few taxpayers who understand the profession of Enrolled Agent. This article seeks to shed more light on these professionals.
Friday, September 11, 2020
A Philadelphia tax attorney may be able to see a different interpretation of an existing law based on different statutes and policies and even historical events.
Compromise The best thing about hiring a Philadelphia tax attorney is the fact that through them, you will actually be able to negotiate with the IRS. Gone will be your mental image of the Big Bad IRS standing in the firm foundation of law. You will be able to realize the fact that since the IRS also knows that it could be standing on erroneous assumptions; it is actually willing to sit down with you and agree on a reasonable compromise.
Tax is a very complicated matter, especially if you are facing the IRS. At first, it would seem like the IRS cannot be reasoned with. There are people who are so intimidated by the thought of the IRS that they are unable to even question the demands that the agency makes of them. Well, if you have experienced the various intimidation tactics used by the IRS, then what you need is a good tax attorney. If you so happen to live in Philadelphia, then here are some good reasons to hire a Philadelphia tax attorney. Taxes are based on laws Many people think that accountants have something more to do with taxes than lawyers. Not many people realize the fact that since taxes are based on laws, then lawyers can help them more than accountants can. Hiring an accountant can help you with the computation of your taxes and in the rectifying of any error that you have made.
Thursday, September 10, 2020
Tax debt relief is opted for by people who have somehow failed to file their returns, which in result have made them liable to pay a repayment of back taxes. This is no doubt a severe and frightening state of affairs.
This may occur due to various reasons. It might be an emergency such as individual or family illness, death in a family, change in economic condition, and lack of budgeting or lavish lifestyle.
In these situations failure to pay the money or underpayment are the two most common things to happen. And if this thing really occurs one should fix it as early as possible that is because some forms of non-payment are liable to be punished by imprisonment for every year of taxes that has not been paid.
Tax debt relief is the best solution that one can go for if he or she has failed to pay the taxes in time. There are several tax debt relief agencies that offers tax settlement plans so that their clients may come out of their debt quickly. They have specialized professionals who work round the clock to help out their clients. Government also on the other hand has many provisions for the people who have their taxes due. Call 855-336-0719 for free tax consultation. An underpayment is easier to pay back than the person who has just refused to pay the money. With the help of a professional mediator one can reduce his or her payable amount to a smaller fee, which will enable the government to get back a portion of the money that is owed.
Tax debt relief may often call for legal proceeding that is why a proficient lawyer who is qualified in this field is indispensable. The professional attorney can help to get the relief without imprisonment. Call 855-336-0719 for free tax consultation. Whatever the reasons be, taxes due are always offensive in the eyes of law. The tax collectors in the first hand send legal notifications which if not answered leads to the prosecution and the professionals best handle these situations.
Conditions that lead to inescapable delinquency are always unacceptable but not beyond negotiation which can be done with the help of a professional tax debt relief help. A proper Tax debt relief program provides quite a few pertinent assistance such as embellished salary, bank charges, bankruptcy among other circumstances. A responsible citizen should never ignore to pay tax. Even if he or she failed in first position, a solution should be tried to find out and the amount should be paid back. Call 855-336-0719 for free tax consultation. The person who has failed to pay his or her tax for the first time shall also have to plan certain things for future so that it might not happen again. A tax debt relief might work first time but it should be kept in mind that government is always willing to help people but those who commit the same mistakes again and again shall be considered irresponsible and be put on trial. That is why it is always advised to have a certified help plan for the future payments.
Monday, August 24, 2020
a credit card statement and bank statement is not enough to prove an IRS tax deduction. If you buy fuel at a gas station the IRS does not know if you purchase food, beer or fuel without the receipt.
The will prove that you purchased fuel. Therefore your . The IRS requires the credit card statement or bank statement and the
Wednesday, July 22, 2020
In some cases, you can reach a tax resolution and settle for far less than the amount you owe. This is known as an Offer in Compromise. Call 855-913-0249 to speak with a tax resolution expert.
An offer in compromise is a tax resolution settlement of a delinquent tax account for less than the original amount owed. However, you will not get such an Offer approved without specialized assistance. As per the data available, in the year 2004 only sixteen percent of Offers were accepted. Call 855-913-0249 to speak with a tax resolution expert.
If you are the having tax disputes with the IRS, tax professionals like experienced Enrolled Agents (EAs), Certified Public Accountant (CPAs), and tax attorneys can help you reach a tax resolution. Tax resolution encompasses a wide variety of settlements which includes IRS audits, Federal Tax Liens (IRS Liens), bank levies or wage garnishments, IRS penalty abatement, innocent spouse defense, bankruptcy discharge analysis, Offer in Compromise, un-filed or delinquent tax returns, and IRS collection statute of limitation analysis.
Thus, it is advisable to seek services of professionals (like EAs, CPAs or tax attorneys) specializing in solving tax problems or negotiating a tax resolution. You should get in touch with these professionals if you are involved in tax disputes like un-filed tax returns, missing records, threat of tax levy, or, if you need a tax resolution like Installment Agreement or an Offer in Compromise or want to be declared Currently Not Collectible.
For taxpayers, who are not able to reach a tax resolution immediately, an installment agreement can be a reasonable payment alternative. Installment agreements permit the full payment of the tax debt in smaller, more manageable amounts for the taxpayer. Currently Not Collectible is another tax resolution strategy, which implies that an individual has no ability to repay his or her tax debts. The IRS can affirm a person as "currently not collectible" after the IRS receives concrete substantiation that the individual has no capacity to pay. Once the IRS proclaims an individual as "currently not collectible", the IRS discontinues its recovery or collection activities, including levies and garnishments. However, the IRS sends an annual statement to that taxpayer stating the amount of tax still owed.
While currently in not collectible status, the ten-year statute of limitations on tax debt collection remains in force. If the IRS cannot collect its tax dues within the ten-year statutory period, the tax debt expires. The IRS is perennially, under tremendous pressure to recover the billions of dollars, currently outstanding. Therefore, it will seriously consider all the reasonable offers to recover its debts and try to reach a tax resolution or close cases in all these areas. Call 855-913-0249 to speak with a tax resolution expert.