by Fresh Start Tax | Mar 26, 2014 | Tax Help
QUESTION
Did you, your spouse or your dependent take higher education classes last year?
If so, you may be able to claim the American Opportunity Credit or the Lifetime Learning Credit to help cover the costs.
Here are some facts about these important tax credits.
The American Opportunity Credit is:
- Worth up to $2,500 per eligible student.
- Only available for the first four years at an eligible college or vocational school.
- Subtracted from your taxes but can also give you a refund of up to $1,000 if it’s more than your taxes.
- For students earning a degree or other recognized credential.
- For students going to school at least half-time for at least one academic period that started during the tax year.
- For the cost of tuition, books and required fees and supplies.
The Lifetime Learning Credit is:
- Limited to $2,000 per tax return, per year, no matter how many students qualify.
- For all years of higher education, including classes for learning or improving job skills.
- Limited to the amount of your taxes.
- For the cost of tuition and required fees, plus books, supplies and equipment you must buy from the school.
Important Note – For both credits:
1. Your school should give you a Form 1098-T, Tuition Statement, showing expenses for the year. Make sure it’s correct.
2. You must file Form 8863, Education Credits, to claim these credits on your tax return.
3. You can’t claim either credit if someone else claims you as a dependent.
4. You can’t claim both credits for the same student or for the same expense, in the same year.
5. The credits are subject to income limits that could reduce the amount you can claim on your return.
Tax Credits – Help Pay Higher Education Costs, Fresh Start Tax LLC, Tax Tips
by Fresh Start Tax | Mar 26, 2014 | Tax Help
We are a tax specialty firm that deals with the resolutions of ALL IRS and state tax problems.
FST is A+ rated by the Better Business Bureau and are comprised of tax attorneys, certified public accountants, enrolled agents, and former IRS agents, managers and tax instructors.
Our former IRS agents have a combined 60 years of direct work experience and knowledge in the local, district, and regional tax offices of Florida’s IRS.
IRS Tax Audits
Internal Revenue Service audits less than 1% of all tax returns.
If you are undergoing an IRS tax audit, using a former IRS agent or manager will be your best tax defense. Having worked for Internal Revenue Service we know all the systems, the formulas, the core protocol, and settlement formulas to achieve the best possible results.
IRS Levy Releases
Internal Revenue Service issues IRS levies as a result of taxpayers not responding the final notice letters. IRS issues 1.8 million IRS tax levies each and every year.
To obtain a release of Levy, a taxpayer will have to fill out a form 433-F and submit it to Internal Revenue Service with all documentation. Once IRS receives the form they will work out a tax settlement and release the levy that very day.
Once we receive your financial statement your bank or your employer should receive that Levy release that very day.
IRS Settlements
IRS accepts 38% of all offers in compromises filed. The average settlement is $.16 on the dollar . No person should file a offer in compromise / IRS tax settlement until they walk through the pre-qualifier tool put out by the Internal Revenue Service. You can find that on our website. You can settle for pennies on a dollar but you must qualify for the program. On staff is a former IRS revenue officer who taught the program while employed at the Internal Revenue Service.
Back Taxes
If you need to file back taxes, we can take care of any issues that you have with Internal Revenue Service. If you need to file back tax returns we can pull transcripts and reconstruct tax returns to file with the Internal Revenue Service.
If will owe back taxes, we can submit a current financial statement to the Internal Revenue Service and they will take your case off the IRS enforcement computer. The Internal Revenue Service will settle your case with either a part pay agreement, let you know you are currently uncollectible or recommend an IRS tax settlement.
Call our office today for free initial tax consultation and speak directly to a certified tax expert in all IRS and state tax matters.
Affordable Former IRS – Audit, Settlement, Levy Releases, Back Taxes – Mt. Dora, Eustis, Tavares, Spring Hill, Wekiva Springs
by Fresh Start Tax | Mar 25, 2014 | Tax Help
What you Need to Know
We will be taxed to death do us part.
IRS Virtual Currency Guidance: Virtual Currency Is Treated as Property for U.S. Federal Tax Purposes; General Rules for Property Transactions Apply
In some environments, virtual currency operates like “real” currency i.e., the coin and paper money of the United States or of any other country that is designated as legal tender, circulates, and is customarily used and accepted as a medium of exchange in the country of issuance but it does not have legal tender status in any jurisdiction.
Virtual currency is treated as property for U.S. federal tax purposes.
General tax principles that apply to property transactions apply to transactions using virtual currency.
Among other things, this means that:
- Wages paid to employees using virtual currency are taxable to the employee, must be reported by an employer on a Form W-2, and are subject to federal income tax withholding and payroll taxes.
- Payments using virtual currency made to independent contractors and other service providers are taxable and self-employment tax rules generally apply. Normally, payers must issue Form 1099.
- The character of gain or loss from the sale or exchange of virtual currency depends on whether the virtual currency is a capital asset in the hands of the taxpayer.
- A payment made using virtual currency is subject to information reporting to the same extent as any other payment made in property.
by Fresh Start Tax | Mar 25, 2014 | Tax Help
Representation by Tax Attorneys, Tax Lawyers, CPA’s and Former IRS agents. Tax Defense, International Representation. 1-866-700-1040
Big brother is extending his arms all over the world.
Soon there will be no place to hide.
The governments of the world are making sure that everyone comes clean. They have done that by initiating an international data exchange.
What are the bottom line? It is all about the money, nothing more, tax revenue.
Country after country are lining up to sign treaties, some because of political pressure and others, well they just want share or portion of the pie.
The International Data Exchange – Through SCHEMA
Intergovernmental FATCA XML Schema:
The IRS has finalized the format for automatically exchanging FATCA data with IGA jurisdictions.
The Intergovernmental FATCA XML Schema (version 1.1):
- Is a standard format developed in close cooperation with the OECD
- Captures required information for reporting of FATCA data from both Financial Institutions (FIs) and Host Country Tax Administrations (HCTAs)
- Will be used for automatic exchange with all FATCA jurisdictions
- Uses elements from existing reporting schemas used by the OECD and the European Union to reduce burden on reporting entities
- Uses XML to allow for easier modifications down the road in the event of legislative or regulatory changes in reporting rules
- Will facilitate safe and secure electronic data transmission using the International Data Exchange Service
International Data Exchange Service:
The IRS is finalizing requirements for a Data Exchange service to allow for Financial Institutions (FIs) and Host Country Tax Administrations (HCTAs) to automatically exchange FATCA data with the United States.
The Service will also allow the United States to make reciprocal exchanges where called for by an IGA that is in force.
The International Data Exchange Service:
- Is based on business requirements collected by a multilateral working group
- Serves as a single point of FATCA information delivery for both FIs and HCTAs
- May be used for automatic exchange with all FATCA jurisdictions
- Is based on readily-available mature technology
- Requires both the file being sent (in the Intergovernmental FATCA XML Schema) and the transmission pathway to be encrypted, ensuring the security of tax data
- Can be accessed either through a Browser-Based or a Scheduled Bulk Data Transfer environment.
We would urge all individuals or financial institutions to make sure they comply with the worldwide standards that will now be practiced by almost all countries.
If you have any questions and would like to speak directly to a tax attorney or tax lawyer under attorney-client privilege. please feel free to call us today.
When calling , ask to speak directly to one of our attorneys who have expertise in the matters mentioned above.
Skype is available to all.
SCHEMA *FATCA/FBAR – International Date Exchange * Attorneys, Lawyers – International Representation
by Fresh Start Tax | Mar 25, 2014 | Tax Help
Tax Preparation Tips – Fresh Start Tax LLC
1. Gather your records.
Collect all tax records you need to file your taxes. This includes receipts, canceled checks and records that support income, deductions or tax credits that you claim on your tax return. Review all your credit card receipts just in case you forgot something.
2. Report all your income.
You will need to report your income from all of your Forms W-2, Wage and Tax Statements, and Form 1099 income statements when you file your tax return.
Remember, IRS gets all 1099 and W-2 information from 3 parties.
3. Get answers.
Use the Interactive Tax Assistant tool on the IRS website to get answers to many of your questions about tax credits, deductions and many more topics.
4. Use direct deposit.
Combining e-file with direct deposit is the fastest and safest way to get your tax refund.
5. Visit the IRS website 24/7.Great source of info.
IRS.gov is a great place to get everything you need to file your tax return. Visit ‘1040 Central’ for online tools, filing tips, answers to frequently asked questions and IRS forms and publications. Get them all anytime, day or night.
6. Check out number 17.
IRS Publication 17, Your Federal Income Tax, is a complete tax resource. It contains helpful information such as whether you need to file a tax return and how to choose your filing status.
7. Review your tax return.
Mistakes slow down the receipt of your tax refund. Be sure to check all Social Security numbers and math calculations on your return, as these are the most common errors.
8.Store them in a safe place.
We recommend you keep all your tax records photocopied along with receipts and bank statements and any deductions you’ve had in store them in a safe cloud environment.
In case of any act of God you always have your tax records stored in the clouds.
Tax Preparation Tips – Fresh Start Tax LLC, Former IRS Agents
