by steve | Jan 24, 2012 | Tax Help, Uncategorized
If you are a victim of a tax scam you can call us today to get tax relief. We are former IRS agents who know every trick in the book and can find a way to help you.
Here are some tax tips about tax scams.
The Internal Revenue Service receives thousands of reports each year from taxpayers who receive suspicious emails, phone calls, faxes or notices claiming to be from the IRS. Many of these scams fraudulently use the IRS name or logo as a lure to make the communication appear more authentic and enticing. The goal of these scams – known as phishing – is to trick you into revealing your personal and financial information.
The scammers can then use your information – like your Social Security number, bank account or credit card numbers – to commit identity theft or steal your money.
Here are five things the IRS wants you to know about phishing scams from IRS.
1. The IRS never asks for detailed personal and financial information like PIN numbers, passwords or similar secret access information for credit card, bank or other financial accounts.
2. The IRS does not initiate contact with taxpayers by email to request personal or financial information. If you receive an e-mail from someone claiming to be the IRS or directing you to an IRS site:
• Do not reply to the message.
• Do not open any attachments. Attachments may contain malicious code that will infect your computer.
• Do not click on any links. If you clicked on links in a suspicious e-mail or phishing website and entered confidential information, visit the IRS website and enter the search term ‘identity theft’ for more information and resources to help.
3. The address of the official IRS website is www.irs.gov. Do not be confused or misled by sites claiming to be the IRS but ending in .com, .net, .org or other designations instead of .gov. If you discover a website that claims to be the IRS but you suspect it is bogus, do not provide any personal information on the suspicious site and report it to the IRS.
4. If you receive a phone call, fax or letter in the mail from an individual claiming to be from the IRS but you suspect they are not an IRS employee, contact the IRS at 1-800-829-1040 to determine if the IRS has a legitimate need to contact you. Report any bogus correspondence. You can forward a suspicious email to phishing@irs.gov. Help all taxpayers and report them today.
5. You can help the IRS shut down these schemes and prevent others from being victimized. Details on how to report specific types of scams and what to do if you’ve been victimized are available at www.irs.gov. Click on “phishing” on the home page.
Do not be a victim!!!
by steve | Jan 24, 2012 | Tax Help, Uncategorized
Interesting Tax Fact about IRS Tax Returns
The IRS corrected 10.6 million “mathematical errors” in taxpayers’ returns in 2010, more than double the 4 million it corrected in 2005, the report said.
But the IRS itself made mistakes – out of 300,000 returns on which it disallowed exemptions for dependent children, it had to restore the exemption just over half the time.
The odds of a tax audit, 1.1%
by steve | Jan 24, 2012 | Tax Help, Uncategorized
You would be shocked on the amount of taxpayers that file the incorrect filing status.
Thousands of taxpayers get audited because they incorrectly file the wrong filing status.
This is an immediate trigger for the IRS. As a result the rest of their tax return get audited.
This is How Determine Your Correct Filing Status for IRS purposes:
Determining your filing status is one of the first steps to filing your federal income tax return.
There are five filing statuses:
1.Single,
2.Married Filing Jointly,
3.Married Filing Separately,
4.Head of Household and
5.Qualifying Widow(er) with Dependent Child.
Your IRS filing status is used to determine your filing requirements, standard deduction, eligibility for certain credits and deductions, and your correct tax.
You can qualify for more than one filing status.
Here are eight facts about filing status that the IRS wants you to know so you can choose the best option for your situation.
1. Your marital status on the last day of the year determines your marital status for the entire year.
2. If more than one filing status applies to you, choose the one that gives you the lowest tax obligation.
3. Single filing status generally applies to anyone who is unmarried, divorced or legally separated according to state law.
4. A married couple may file a joint return together.
The couple’s filing status would be Married Filing Jointly.
5. If your spouse died ( sorry to hear ) during the year and you did not remarry during 2011, usually you may still file a joint return with that spouse for the year of death.
6. A married couple may elect to file their returns separately.
Each person’s filing status would generally be Married Filing Separately.
7. Head of Household generally applies to taxpayers who are unmarried.
You must also have paid more than half the cost of maintaining a home for you and a qualifying person to qualify for this filing status.
8. You may be able to choose Qualifying Widow(er) with Dependent Child as your filing status if your spouse died during 2009 or 2010, you have a dependent child, have not remarried and you meet certain other conditions.
by steve | Jan 24, 2012 | Tax Help, Uncategorized
Do you have tip income and need tax tips to help you filed your tax return.
Make sure you follow these tax tips when you are preparing your income tax return.
Call us if you need more information and we can help audit proof your tax return.
Tax Tips Regarding Tip Income
If your pay from work involves compensation through tips, then the IRS would like you to be aware of a few facts about tip income.
Here are key points to keep in mind:
1. Tips are taxable Tips are subject to federal income, Social Security and Medicare taxes. The value of non-cash tips, such as tickets, passes or other items of value, is also considered income and subject to tax.
2. Include tips on your tax return You must include in gross income all cash tips you receive directly from customers, tips added to credit cards, and your share of any tips you receive under a tip-splitting arrangement with fellow employees.
3. Report tips to your employer If you receive $20 or more in tips in any one month, you should report all of your tips to your employer. Your employer is required to withhold federal income, Social Security and Medicare taxes.
4. Keep a running daily log of your tip income. You can use IRS Publication 1244, Employee’s Daily Record of Tips and Report to Employer, to record your tip income.
For more information see IRS Publication 531, Reporting Tip Income, and Publication 1244 which are available at www.irs.gov. Both can be ordered by calling 800-TAX-FORM (800-829-3676).
If you need help with income tax preparation call us today, we are former IRS Agents.
by steve | Jan 24, 2012 | Tax Help
IRS Hardship IRS Levy. we can help with your back taxes. 1-866-700-1040
Has the IRS placed on levy on your bank account or your wages? You can get your your levy released and be placed in a IRS hardship without the filing of your returns to get the levy released.
Contrary to popular belief what the IRS tells you about having all your tax returns filed before they will put you into a IRS Hardship is just not true.
Every time we call the IRS with a client that has a true IRS hardship and meets the income test and expense tests for a IRS Hardship we are ALWAYS told all tax returns must be filed.
You do not have to file all your tax returns to get the levy released, at least immediately.
We should also say that with this ruling you will find below, it does not preclude you from the filing of your tax returns.
The requirement is still there and IRS will probably give you a new date to have your tax returns filed.
There has been a recent ruling by the Taxpayer Advocates Office now setting the record straight.
Do not be bullied by the IRS.
March 29, 2011
Control No: TAS-13.1.10-0311-008
Expires: March 29, 2012
MEMORANDUM FOR TAXPAYER ADVOCATE SERVICE EMPLOYEES
s/ Nina E. Olson
FROM: Nina E. Olson
National Taxpayer Advocate
SUBJECT: Interim Guidance on Handling Collection Cases where
Economic Hardship is Present but the Taxpayer has not
Filed all Required Returns
The purpose of this memorandum is to update the guidance issued on March 23,
2010, entitled Interim Guidance on Handling Collection Cases where Economic
Hardship is Present but the Taxpayer has not Filed all Required Returns
concerning how Taxpayer Advocate Service (TAS) employees should handle
collection cases involving taxpayers with economic hardships and unfiled returns.
The Tax Court opinion, Vinatieri v. Commissioner, 133 T .C. 392 (2009)
illustrates some of the issues that can arise in this type of case. In that case, the
Tax Court held that if, during a Collection Due Process (CDP) levy hearing, the
taxpayer establishes that the proposed levy will create an economic hardship, the
IRS cannot proceed with the proposed levy action, even if the taxpayer has not
filed all returns that are due. During the CDP hearing, Ms. Vinatieri submitted
financial information to support her claim that she could not pay an outstanding
income tax liability.
The Appeals officer found that although she established
economic hardship (within the meaning of IRC § 6343(a)(1)(D)), he could not
place her account in a Currently Not Collectible (CNC) status because she had
not filed two income tax returns. Instead, the Appeals officer issued a notice of
determination sustaining the proposed levy action.
The Tax Court held that as a matter of law, the Appeals determination to proceed with a levy was wrong.
IRC
§ 6343 requires the release of a levy if the taxpayer is experiencing an economic
hardship, even if the taxpayer has not filed all returns. The court also held that
rather than proceeding with the levy, the Appeals officer should have considered
alternatives to the proposed levy action.
Note: IRC § 6343(a)(1)(D) states that a levy shall be released if “the Secretary
has determined that such levy is creating an economic hardship due to the
financial condition of the taxpayer.” Treasury Regulation § 301.6343-1(b)(4),
2
defines economic hardship:
“The levy is creating an economic hardship due to
the financial condition of an individual taxpayer. This condition applies if
satisfaction of the levy in whole or in part will cause an individual taxpayer to be
unable to pay his or her reasonable basic living expenses. The determination of a
reasonable amount for basic living expenses will be made by the director and will
vary according to the unique circumstances of the individual taxpayer. Unique
circumstances, however, do not include the maintenance of an affluent or
luxurious standard of living.”
TAS employees should advocate for the taxpayer experiencing economic
hardship when the IRS has issued a notice of levy or a Final Notice of Intent to
Levy, but the IRS will not place the account in CNC status or release a levy
because of unfiled returns.
Most TAS cases will be in the Automated Collection
System (ACS), but could also involve a Revenue Officer or Appeals (either in the
form of a Collection Appeal Program (CAP) conference or CDP hearing).
A more detailed discussion of relevant IRC sections, regulations, and IRM
references for assistance in case building and advocating for taxpayers are
included in the attachment to this memorandum.
When advocating for a taxpayer in this type of situation, attach a copy of the
Vinatieri opinion to the Operations Assistance Request (OAR) and use Special
Case code LE when making these arguments to the IRS.
If the IRS disagrees
and does not provide a compelling reason to support its disagreement,
immediately elevate the case to a manager for consideration of a taxpayer
assistance order (TAO).
Also, consider whether referral to a Revenue Officer
Technical Advisor (ROTA) may also be appropriate. However, remember that
often “time is of the essence” in these cases, and a TAO may be necessary so
the taxpayer is not further harmed.
This IGM will be incorporated into IRM 13.1.10. If you have any questions,
please contact James Book, Management and Program Analyst, TAS Technical
Analysis and Guidance at 816-291-9944
IRS Hardship – IRS Levy – All tax returns do not have to be filed – Former IRS Agent – Owe Back Taxes
