by Jim Magary | Oct 30, 2015 | Tax Help
Unemployment Compensation
The tax treatment of unemployment benefits you receive depends on the type of program paying the benefits.
Unemployment compensation includes amounts received under the laws of the United States or of a state such as:
• State unemployment insurance benefits
• Benefits paid to you by a state or the District of Columbia from the Federal Unemployment Trust Fund.
• Railroad unemployment compensation benefits
• Disability benefits paid as a substitute for unemployment compensation
• Trade readjustment allowances under the Trade Act of 1974 and
• Unemployment assistance under the Disaster Relief and Emergency Assistance Act of 1974
Unemployment compensation does not include:
• Workers’ compensation payments; see Publication 525, Taxable and Nontaxable Income, for information on these payments.
• Supplemental unemployment benefits received from a company-financed fund. These benefits are wages subject to income tax withholding and may also be subject to Social Security and Medicare taxes.
They should be reported to you on Form W-2 (PDF), Wage and Tax Statement. See Publication 15-A (PDF), Employer’s Supplemental Tax Guide, section 5, for more information about supplemental unemployment benefits,
• Unemployment benefits from a private fund to which you voluntarily contribute.
These benefits are taxable only if the amounts you receive are more than your total payments into the fund; however, this taxable amount is not unemployment compensation. Report it is as “Other income” on line 21 of Form 1040 (PDF).
If you received unemployment compensation during the year, you must include it in gross income.
You may be required to make quarterly estimated tax payments.
However, you can choose to have federal income tax withheld.
For more information, refer to Form W-4V (PDF), Voluntary Withholding Request.
You should receive a Form 1099-G (PDF), Certain Government Payments, showing the amount of unemployment compensation paid to you this year in Box 1, and any federal income tax withheld in Box 4.
Report the amount shown in Box 1 on line 19 of Form 1040 (PDF), line 13 of Form 1040A (PDF), or line 3 of Form 1040EZ (PDF), and include the withholding shown in Box 4 on line 64 of Form 1040, line 40 of Form 1040A, or line 7 of Form 1040EZ.
For more information on unemployment, see Unemployment Benefits in Publication 525.
by Fresh Start Tax | Oct 30, 2015 | Tax Help
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If you are in receipt of an IRS tax levy, wage levy or bank levy garnishment contact us today and we can get your tax levy released in your case closed.
Within 24 hours of receiving your fully documented financial statement we guarantee that you will have a release of your IRS bank levy or wage garnishment levy.
We will speak with you about settling your tax debt to the offer in compromise program. this program is called the pennies on the dollar program.
Our firm will not submit an offer in compromise until we walked through the offer in compromise pre-qualifier tool to make sure that you can settle your tax debt for pennies on dollar.
Offer Stats = The Internal Revenue Service accepted 38,000 offers in compromise last year for average of $6500 per settlement. Last year there were 78,000 offers in compromise filed. Please keep in mind this is a national average.
IRS Tax Levy, IRS Wage Garnishment Releases and case closing.
The IRS filed 1.8 million the bank and wage garnishment levies last year. So if you received a bank or wage garnishment levy you are not alone.
Before IRS will release a tax levy, a wage garnishment or bank seizure, Internal Revenue Service will need a current documented financial statement.
If your case is in the automatic collection system you will be filling out and documenting form 433F which you can find directly on our website. It is the only form the Internal Revenue Service will use.
When calling our office we will complete the form, speak to the Internal Revenue Service and within 24 hours of having your fully documented financial statement we can get your IRS tax levy released.
If the cases are in the local IRS office form 433 a will be required and a much more detailed investigation will be made on your current financial statement.
If this is the case a revenue officer out of the local office will be looking at your case.
Being a former IRS agent teaching instructors gives us a huge advantage and the benefit of our experience is invaluable to our clients. We know the system inside and out.
The filling out of your financial statement is critical into the settlement of your case. using former IRS agents and managers will give you a tremendous advantage.
With that current financial statement you will need to provide IRS the last three months of your bank statements, copies of your pay stubs and your monthly expenses. IRS does a thorough review of your financial statement therefore you want to make sure you are both honest and accurate.
As a general rule, IRS will not release your levy until all your tax returns are filed.
We can prepare all your back tax returns with little or no records. We are tax experts for reconstruction.
Internal Revenue Service usually closes your case off the enforcement two general ways: Based on your current financial statement, IRS will put you in a currently uncollectible file or put you in a payment agreement.
Over 40% of collection cases wind up in a current tax hardship and 6.5 million other taxpayers are put into monthly installment payment plans.
It is important you file all back tax returns if not the IRS can file for you under 6020 B of the Internal Revenue Code and they will make sure you get no deductions.
IRS will not give any non-filer any deductions or exemptions that they prepare under 6020B.
IRS may fail to release an IRS tax levy wage garnishment or bank levy because taxpayers have failed to file back tax returns.
After the review of your IRS financial statement we can let you know whether you are a possible debt settlement candidate for the offer in compromise program.
One last note of interest, it is very critical all taxpayers respond to all IRS notices because IRS intends to follow-up on all the dates given on each and every notice sent.
Call for free initial tax consultation and speak to true IRS tax experts.
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by Fresh Start Tax | Oct 30, 2015 | Tax Help
“Affordable” former IRS Agents can quickly remove a tax levy or garnishment and settle your case ASAP, since 1982.
We can get your IRS tax levy, IRS wage garnishment levy released within a 24-hour period of time and close your case at the same time.
We have a combined 60 years of direct work experience in the local, district, and regional tax offices of the Internal Revenue Service and know exactly how to settle your case with the Internal Revenue Service. We are true Tax Experts.
Check out our Better Business Bureau rating.
Within 24 hours of receiving your fully documented financial statement we guarantee that you will have a release of your IRS bank levy or wage garnishment levy.
Settling IRS Tax Debt through the Offer in Compromise
We will speak with you about settling your tax debt to the offer in compromise program.
The only way you can settle your tax debt with the Internal Revenue Service is through the offer in compromise program.
As a former IRS agent I not only work the program was but was a teaching instructor. I know the system inside and out.
Our firm will not submit an offer in compromise until we walked through the offer in compromise pre-qualifier tool to make sure that you can settle your tax debt for pennies on dollar.
The Internal Revenue Service accepted 38,000 offers in compromise last year for average of $6500 per settlement. Last year there were 78,000 offers in compromise filed.
Please keep in mind this is a national average.
Your current financial statement will determine the outcome for this program. The importance of this form cannot be over stated.
Taxpayers should be aware that there is a pre-qualifier tool for the offer in compromise program.Each taxpayers should walk through this easy form.
I suggest everyone the walk through this particular tool given by Internal Revenue Service to find out for a qualified candidate
Stop IRS Bank Tax Levy or IRS Wage Garnishment
The IRS filed 1.8 million the bank and wage garnishment levies last year.
IRS filed over 700,000 federal tax liens.
Before IRS will release a tax levy, a wage garnishment or bank seizure, Internal Revenue Service will need a current documented financial statement. Your financial statement is the key to closing your case and settling your case.
If your case is in the automatic collection system, you will be filling out and documenting form 433F which you can find directly on our website. It is the only form the Internal Revenue Service will use.
When calling our office we will complete the form, speak to the Internal Revenue Service and within 24 hours of having your fully documented financial statement we can get your IRS tax levy released.
If the cases are in the local IRS office form 433 a will be required and a much more detailed investigation will be made on your current financial statement.
If this is the case a revenue officer out of the local office will be looking at your case.
The filling out of your financial statement is critical into the settlement of your case. With that current financial statement you will need to provide IRS the last three months of your bank statements, copies of your pay stubs and your monthly expenses.
IRS does a thorough review of your financial statement therefore you want to make sure you are both honest and accurate.
IRS has the ability to go back as far as they want for their financial review. 3 to 6 months is a general indicator of IRS’s review process.
As a general rule, IRS will not release your levy until all your tax returns are filed. We can get your tax returns filed within a matter of days.
We can prepare all your back tax returns with little or no records.
Internal Revenue Service usually closes your case off the enforcement two general ways:
Based on your current financial statement,
IRS will put you:
1 . Current not collectable
2. a payment agreement.
Over 40% of collection cases wind up in a current tax hardship and 6.5 million other taxpayers are put into monthly installment payment plans.
IRS may fail to release an IRS tax levy wage garnishment or bank levy because taxpayers have failed to file back tax returns.
We can help with the preparation of your back income tax returns.
We can prepare your back tax returns with fewer little tax records. If IRS has prepared your back tax returns we can refile and reduce the liability if the tax liability appears incorrect. These cases are called IRS audit reconsideration.
After the review of your IRS financial statement we can let you know whether you are a possible debt settlement candidate for the offer in compromise program.
Call us today for free initial tax consultation and speak to a true IRS tax expert.
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by Fresh Start Tax | Oct 30, 2015 | Tax Help
Retirees Need to Take Required Retirement Plan Distributions by Dec. 31
Just reminding taxpayers born before July 1, 1945, that they generally must receive payments from their individual retirement arrangements (IRAs) and workplace retirement plans by Dec. 31.
Known as required minimum distributions (RMDs), these payments normally must be made by the end of 2015. But a special rule allows first-year recipients of these payments, those who reached age 70½ during 2015, to wait until as late as April 1, 2016 to receive their first RMDs.
This means that those born after June 30, 1944 and before July 1, 1945 are eligible for this special rule. Though payments made to these taxpayers in early 2016 can be counted toward their 2015 RMD, they are still taxable in 2016.
This is the second in a series of weekly tax preparedness releases designed to help taxpayers begin planning to file their 2015 return.
The required distribution rules apply to owners of traditional, Simplified Employee Pension (SEP) and Savings Incentive
Match Plans for Employees (SIMPLE) IRAs but not Roth IRAs while the original owner is alive. They also apply to participants in various workplace retirement plans, including 401(k), 403(b) and 457(b) plans.
An IRA trustee must either report the amount of the RMD to the IRA owner or offer to calculate it for the owner. Often, the trustee shows the RMD amount on Form 5498 in Box 12b. For a 2015 RMD, this amount is on the 2014 Form 5498 normally issued to the owner during January 2015.
The special April 1 deadline only applies to the RMD for the first year. For all subsequent years, the RMD must be made by Dec. 31.
So, for example, a taxpayer who turned 70½ in 2014 (born after June 30, 1943 and before July 1, 1944) and received the first RMD (for 2014) on April 1, 2015 must still receive a second RMD (for 2015) by Dec. 31, 2015.
The RMD for 2015 is based on the taxpayer’s life expectancy on Dec. 31, 2015, and their account balance on Dec. 31, 2014.
The trustee reports the year-end account value to the IRA owner on Form 5498 in Box 5. Use the online worksheets on IRS.gov or find worksheets and life expectancy tables to make this computation in the Appendices to Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs).
For most taxpayers, the RMD is based on Table III (Uniform Lifetime Table) in IRS Publication 590-B. So for a taxpayer who turned 72 in 2015, the required distribution would be based on a life expectancy of 25.6 years.
A separate table, Table II, applies to a taxpayer whose spouse is more than 10 years younger and is the taxpayer’s only beneficiary.
Though the RMD rules are mandatory for all owners of traditional, SEP and SIMPLE IRAs and participants in workplace retirement plans, some people in workplace plans can wait longer to receive their RMDs.
Usually, employees who are still working can, if their plan allows, wait until April 1 of the year after they retire to start receiving these distributions.
See Tax on Excess Accumulations in Publication 575. Employees of public schools and certain tax-exempt organizations with 403(b) plan accruals before 1987 should check with their employer, plan administrator or provider to see how to treat these accruals.
by Jim Magary | Oct 30, 2015 | Tax Help
We are the “AFFORDABLE” professional tax firm with over 206 years of professional tax experience, since 1982.
We have over 60 years of direct work experience in the local, district and regional tax offices of the Internal Revenue Service.
We have worked as IRS supervisors, as managers, and teachings instructors. We know the system inside and out.
If you have any sort of IRS problem contact us today and we can review with you various solutions to go ahead and help with an IRS final notice, certified mail, intent to levy, the filing of a federal tax lien, payment plans and the settling of your case through an offer a compromise.
We will thoroughly review your case and go over various options and remedies to completely end your IRS problem or situation.
If you have received an IRS final notice, we can stop IRS today with the simple filing of a power of attorney and with a direct IRS conversation.
We handle all correspondence and you will never communicate with the Internal Revenue Service. You will never have to speak to the IRS.
We can talk to you about the removal or the filing a federal tax liens, work out a payment plan, release a tax levy or talk to you about settling your debt to the offer in compromise program.
Through the new IRS fresh start initiative many more taxpayers are settling their debt for pennies on a dollar, however you must be a qualified candidate. There is a pre-qualifier tool we will review with you.
If you are going to owe back taxes and wish a payment plan or which to reach a settlement with them, call us today for a free initial tax consultation.
The systems are very simple within 10 minutes you will be completely educated on how to make the best decision for your current financial condition and situation.
Your current financial system will indicate the type of way IRS will close case.
IRS Tax Billing Notices, its systematic
If IRS sends you a document it is time sensitive and taxpayers must follow-up on all time sensitive letters. Never ignore an IRS tax notice, they will follow-up and do exactly what they say.
Once a tax return is filed or IRS initiates a tax assessment, IRS sends out a series of five notices and those notices are sent five cycles or five weeks apart.
IRS has the option, depending on the dollar amount and the history of the taxpayer to speed up those assessments.
These IRS tax notices are all sent out in five-week billing cycles.
1. CP 14 – This is the notice of balance due,
2.CP 501 – This is a Bill that you still owe tax,
3. CP503 – Important, Immediate Action Required
4. CP 504 – Urgent Notice – We Intend to Levy on Certain Assets, Please Respond Now
5. CP90/CP297/ – IRS Letter 1058 – Final Notice of Intent to Levy of Your Right to a Hearing
6.CP 91- CP298 -Final IRS Notice, You must answer his Notice!
It is important for taxpayers to keep up with their tax bills because lets you know where you are in the system.
You can find the CP notices in the top right corner of the bills.
It is extremely important you follow up on all final notices if not the Internal Revenue Service will plan to follow up with enforcement action.
We can prepare all back tax returns with or without records.
Call us today for free initial tax consultation.
IRS Final Notice, Certified Mail + STOP IRS NOW + Intent to Tax Levy & Lien + IRS Payment Plans + Settle, Offer in Compromise + Unfiled Tax Returns
