by steve | Apr 29, 2010 | Tax Help, Uncategorized
How do you get your Federal Tax Lien Released after the statue of limitation has expired?
Pull a copy of the Federal Tax Lien in the courthouses where the federal tax lien(s) were filed. There may be multiple courthouse where the federal tax liens where filed in cases where you have moved around and have had multiple addresses over the past ten years. If you do not know where the federal tax liens were filed, pull your credit report and you will find the locations by the credit reporting companies. Secure copies of the Federal Tax Liens and send them to Fresh Start Tax, either fax the to us at 954-938-0069 or email them directly to us. There are a various tricks involved to make sure these lien releases get release. We will forward them to IRS Centralized Lien Release unit at 859-669-3805. We will put a signed 8821 form with the release request. IRS will then forward us the actual release of the Federal Tax Lien. We will then send to you an original copy that you will have to file at the courthouse and pay the nominal filing fee. IRS will not send the original to the courthouse because they do not want to pay the filing fee.
Make sure you use a professional company so they can ensure the statue has really expired and this process takes place. You should check with your credit reporting company 30 days later to make sure the Federal Tax lien releases were actual received by the crediting reporting agencies.
Make sure all 3 credit reporting agencies show these releases.
by steve | Apr 27, 2010 | Tax Help, Uncategorized
COBRA Subsidy Eligibility Period Extended to May 31
WASHINGTON ? Workers who lose their jobs during April and May may qualify for a 65-percent subsidy on their COBRA health insurance premiums, according to the Internal Revenue Service. The American Recovery and Reinvestment Act established this subsidy to help workers who lost their jobs as a result of the recession maintain their employer sponsored health insurance.
The Continuing Extension Act of 2010, enacted April 15, reinstated the COBRA subsidy, which had expired on March 31. As a result, workers who are involuntarily terminated from employment between Sept. 1, 2008 and May 31, 2010, may be eligible for a 65-percent subsidy of their COBRA premiums for a period of up to 15 months. In some cases, workers who had their hours reduced and later lose their jobs may also be eligible for the subsidy.
Employers must provide COBRA coverage to eligible individuals who pay 35 percent of the COBRA premium. Employers are reimbursed for the other 65 percent by claiming a credit for the subsidy on their payroll tax returns: Form 941, Employers QUARTERLY Federal Tax Return, Form 944, Employer’s ANNUAL Federal Tax Return, or Form 943, Employer’s Annual Federal Tax Return for Agricultural Employees. Employers must maintain supporting documentation for the claimed credit.
There is much more information about the COBRA subsidy, including questions and answers for employers, and for employees or former employees, on the COBRA pages of IRS.gov.
Some people who are eligible for the COBRA subsidy also qualify for the health coverage tax credit (HCTC) and may want to choose the more generous HCTC benefit, instead. The HCTC pays 80 percent of health insurance premiums for those who qualify. See more at HCTC: Eligibility Requirements and How to Receive the HCTC.
by steve | Apr 27, 2010 | Tax Help, Uncategorized
Coverage Now Available for Children under Age 27
As a result of changes made by the recently enacted Affordable Care Act, health coverage provided for an employee’s children under 27 years of age is now generally tax-free to the employee, effective March 30, 2010.
The Internal Revenue Service announced today that these changes immediately allow employers with cafeteria plans ?? plans that allow employees to choose from a menu of tax-free benefit options and cash or taxable benefits ?? to permit employees to begin making pre-tax contributions to pay for this expanded benefit.
IRS Notice 2010-38 explains these changes and provides further guidance to employers, employees, health insurers and other interested taxpayers.
?These changes give employers a unique opportunity to offer a worthwhile benefit to their employees,? IRS Commissioner Doug Shulman said. We want to make it as easy as possible for employers to quickly implement this change and extend health coverage on a tax-favored basis to older children of their employees.?
This expanded health care tax benefit applies to various workplace and retiree health plans. It also applies to self-employed individuals who qualify for the self-employed health insurance deduction on their federal income tax return.
Employees who have children who will not have reached age 27 by the end of the year are eligible for the new tax benefit from March 30, 2010, forward, if the children are already covered under the employers plan or are added to the employers plan at any time. For this purpose, a child includes a son, daughter, stepchild, adopted child or eligible foster child. This new age 27 standard replaces the lower age limits that applied under prior tax law, as well as the requirement that a child generally qualify as a dependent for tax purposes.
The notice says that employers with cafeteria plans may permit employees to immediately make pre-tax salary reduction contributions to provide coverage for children under age 27, even if the cafeteria plan has not yet been amended to cover these individuals. Plan sponsors then have until the end of 2010 to amend their cafeteria plan language to incorporate this change.
In addition to changing the tax rules as described above, the Affordable Care Act also requires plans that provide dependent coverage of children to continue to make the coverage available for an adult child until the child turns age 26. The extended coverage must be provided not later than plan years beginning on or after Sept. 23, 2010. The favorable tax treatment described in the notice applies to that extended coverage.
by steve | Apr 19, 2010 | Tax News
The Internal Revenue Service this week began mailing postcards to more than four million small businesses and tax-exempt organizations to make them aware of the benefits of the recently enacted small business health care tax credit.
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Included in the Patient Protection and Affordable Care Act approved by Congress last month and signed into law by President Obama, the credit is one of the first health care reform provisions to go into effect. The credit, which takes effect this year, is designed to encourage small employers to offer health insurance coverage for the first time or maintain coverage they already have.
We want to make sure small employers across the nation realize that ?? effective this tax year ?? they may be eligible for a valuable new tax credit. Our postcard mailing ?? which is targeted at small employers ?? is intended to get the attention of small employers and encourage them to find out more,” IRS Commissioner Doug Shulman said. We urge every small employer to take advantage of this credit if they qualify.?
In general, the credit is available to small employers that pay at least half the cost of single coverage for their employees in 2010. The credit is specifically targeted to help small businesses and tax-exempt organizations that primarily employ low- and moderate-income workers.
For tax years 2010 to 2013, the maximum credit is 35 percent of premiums paid by eligible small business employers and 25 percent of premiums paid by eligible employers that are tax-exempt organizations. The maximum credit goes to smaller employers ?? those with 10 or fewer full-time equivalent (FTE) employees ?? paying annual average wages of $25,000 or less. Because the eligibility rules are based in part on the number of FTEs, not the number of employees, businesses that use part-time help may qualify even if they employ more than 25 individuals. The credit is completely phased out for employers that have 25 FTEs or more or that pay average wages of $50,000 per year or more.
Eligible small businesses can claim the credit as part of the general business credit starting with the 2010 income tax return they file in 2011. For tax-exempt organizations, the IRS will provide further information on how to claim the credit.
Fresh Start Tax always wants to keep you inform of everything Fresh from the IRS News site.
by steve | Apr 19, 2010 | IRS Tax Advice
Here’s What Happens After You File
Most taxpayers have already filed their federal tax returns, but many may still have questions. Here’s what the IRS wants you to know about refund status, recordkeeping, mistakes and what to do if you move.
Refund Information
You can go online to check the status of your 2009 refund 72 hours after IRS acknowledges receipt of your e-filed return, or 3 to 4 weeks after you mail a paper return. Be sure to have a copy of your 2009 tax return available because you will need to know your filing status, the first Social Security number shown on the return, and the exact whole-dollar amount of the refund. You have three options for checking on your refund:
- Go to IRS.gov, and click on “Where?s My Refund“
- Call 1-800-829-4477 24 hours a day, seven days a week for automated refund information
- Call 1-800-829-1954 during the hours shown in your tax form instructions
What Records Should I Keep?
Normally, tax records should be kept for three years, but some documents ? such as records relating to a home purchase or sale, stock transactions, IRAs and business or rental property ? should be kept longer.
You should keep copies of tax returns you have filed and the tax forms package as part of your records. They may be helpful in amending already filed returns or preparing future returns.
Change of Address
If you move after you filed your return, you should send Form 8822, Change of Address to the Internal Revenue Service. If you are expecting a refund through the mail, you should also file a change of address with the U.S. Postal Service.
What If I Made a Mistake?
Errors may delay your refund or result in notices being sent to you. If you discover an error on your return, you can correct your return by filing an amended return using Form 1040X, Amended U.S. Individual Income Tax Return.
Visit IRS.gov for more information on refunds, record keeping, address changes and amended returns.<
