IRS Help – Tax Levy, IRS Audit, Tax Settlement Back Tax Return Filings – Affordable – Pottstown, Radnor, Scott, Sharon

by Fresh Start Tax | Jun 16, 2014 | Tax Help

Have former AFFORDABLE IRS agents with over 60 years of  working directly for the Internal Revenue Service in the local, district, and regional tax offices of the Internal Revenue Service completely resolve your IRS tax problem.

We have over 206 years professional tax experience  and we are A+ rated by the Better Business Bureau.

We are a team of tax attorneys, certified public accountants, and former IRS agents.

Our team has a tax expert to settle your IRS tax problem.

We can handle any IRS problem from a simple notice or letter to going to tax court.

Why us, we tell you the truth!

Tax Facts:

• IRS sends out close to 2 million tax levies each year.

• Most of those tax levies go to employers and banks accounts belonging to taxpayers.

• IRS audits just under 1% of all taxpayers.

• The more money you make the greater chance of an IRS audit,

• IRS accepts 38% of all offers in compromise filed.

• The average tax settlement is $.14 on a dollar.

• IRS files close to 900,000 federal tax liens each and every year.

• Over 16 million taxpayers do not file annual US tax return.

•  If you need IRS tax help contact us today and speak directly to a tax professional.

Tax Levy, IRS Audit, Tax Settlements

• We can get IRS Tax Levies released within 24 hours,

• Represent you during IRS tax audit,

• and work out a tax settlement if you are qualified and suitable candidate to file for an offer in compromise.

IRS Help – Tax Levy, IRS Audit, Settlement Back Tax Return Filings – Affordable – Pottstown, Radnor, Scott, Sharon

IRS Taxpayer Bill of Rights – IRS Tax Help, Former IRS

by Fresh Start Tax | Jun 16, 2014 | Tax Help

 The Internal Revenue Service today announced the adoption of a “Taxpayer Bill of Rights” that will become a cornerstone document to provide the nation’s taxpayers with a better understanding of their rights.

The Taxpayer Bill of Rights takes the multiple existing rights embedded in the tax code and groups them into 10 broad categories, making them more visible and easier for taxpayers to find on IRS.gov.

Publication 1, “Your Rights as a Taxpayer,” has been updated with the 10 rights and will be sent to millions of taxpayers this year when they receive IRS notices on issues ranging from audits to collection.

The rights will also be publicly visible in all IRS facilities for taxpayers and employees to see.

The IRS released the Taxpayer Bill of Rights following extensive discussions with the Taxpayer Advocate Service, an independent office inside the IRS that represents the interests of U.S. taxpayers. Since 2007, adopting a Taxpayer Bill of Rights has been a goal of National Taxpayer Advocate Nina E. Olson, and it was listed as the Advocate’s top priority in her most recent Annual Report to Congress.

The tax code includes numerous taxpayer rights, but they are scattered throughout the code, making it difficult for people to track and understand. Similar to the U.S. Constitution’s Bill of Rights, the Taxpayer Bill of Rights contains 10 provisions.

They are:

1. The Right to Be Informed

2. The Right to Quality Service

3. The Right to Pay No More than the Correct Amount of Tax

4. The Right to Challenge the IRS’s Position and Be Heard

5. The Right to Appeal an IRS Decision in an Independent Forum

6. The Right to Finality

7. The Right to Privacy

8. The Right to Confidentiality

9. The Right to Retain Representation

10. The Right to a Fair and Just Tax System

The rights have been incorporated into a redesigned version of Publication 1, a document that is routinely included in IRS correspondence with taxpayers.

Millions of these mailings go out each year.

The new version has been added to IRS.gov, and print copies will start being included in IRS correspondence in the near future.

The timing of the updated Publication 1 with the Taxpayer Bill of Rights is critical because the IRS is in the peak of its correspondence mailing season as taxpayers start to receive follow-up correspondence from the 2014 filing season.

The publication initially will be available in English and Spanish, and updated versions will soon be available in Chinese, Korean, Russian and Vietnamese.

The IRS has also created a special section of IRS.gov to highlight the 10 rights. The web site will continue to be updated with information as it becomes available, and taxpayers will be able to easily find the Bill of Rights from the front page.

Child and Dependent Care

by Fresh Start Tax | Jun 16, 2014 | Tax Help

 Credit for Child and Dependent Care

Many parents pay for childcare or day camps in the summer while they work.

If this applies to you, your costs may qualify for a federal tax credit that can lower your taxes.

Facts that you should know about the Child and Dependent Care Credit:

1. Your expenses must be for the care of one or more qualifying persons. Your dependent child or children under age 13 usually qualify.

For more about this rule see Publication 503, Child and Dependent Care Expenses.

2. Your expenses for care must be work-related. This means that you must pay for the care so you can work or look for work.

This rule also applies to your spouse if you file a joint return. Your spouse meets this rule during any month they are a full-time student.

They also meet it if they’re physically or mentally incapable of self-care.

3. You must have earned income, such as from wages, salaries and tips. It also includes net earnings from self-employment.

Your spouse must also have earned income if you file jointly. Your spouse is treated as having earned income for any month that they are a full-time student or incapable of self-care.

This rule also applies to you if you file a joint return.

4. As a rule, if you’re married you must file a joint return to take the credit.

But this rule doesn’t apply if you’re legally separated or if you and your spouse live apart.

5. You may qualify for the credit whether you pay for care at home, at a daycare facility or at a day camp.

6. The credit is a percentage of the qualified expenses you pay.

It can be as much as 35 percent of your expenses, depending on your income.

7. The total expense that you can use for the credit in a year is limited.

The limit is $3,000 for one qualifying person or $6,000 for two or more.

8. Overnight camp or summer school tutoring costs do not qualify.

You can’t include the cost of care provided by your spouse or your child who is under age 19 at the end of the year.

You also cannot count the cost of care given by a person you can claim as your dependent. Special rules apply if you get dependent care benefits from your employer.

9. Keep all your receipts and records. Make sure to note the name, address and Social Security number or employer identification number of the care provider.

You must report this information when you claim the credit on your tax return.

10. Remember that this credit is not just a summer tax benefit.

You may be able to claim it for care you pay for throughout the year.

When to Change Your Business EIN, Former IRS, Tax Help, IRS Tax Consultant

by Fresh Start Tax | Jun 14, 2014 | Tax Help

When to Change Your Business EIN, Former IRS, Tax Help

Generally, businesses need a new EIN when their ownership or structure has changed. Although changing the name of your business does not require you to obtain a new EIN, you may wish to visit the Business Name Change page to find out what actions are required if you change the name of your business.

The information below provides answers to frequently asked questions about changing your EIN.

If, after reading the information below, you find that you need an EIN, please see How to Apply for an EIN

.
Sole Proprietors

You will be required to obtain a new EIN if any of the following statements are true.

• You are subject to a bankruptcy proceeding.

• You incorporate.

• You take in partners and operate as a partnership.

• You purchase or inherit an existing business that you operate as a sole proprietorship.

You will not be required to obtain a new EIN if any of the following statements are true.

• You change the name of your business.

• You change your location and/or add other locations.

• You operate multiple businesses.

Corporations

You will be required to obtain a new EIN if any of the following statements are true.

• A corporation receives a new charter from the secretary of state.

• You are a subsidiary of a corporation using the parent’s EIN or you become a subsidiary of a corporation.

• You change to a partnership or a sole proprietorship.

• A new corporation is created after a statutory merger.

You will not be required to obtain a new EIN if any of the following statements are true.

• You are a division of a corporation.

• The surviving corporation uses the existing EIN after a corporate merger.

• A corporation declares bankruptcy.

• The corporate name or location changes.

• A corporation chooses to be taxed as an S corporation.

• Reorganization of a corporation changes only the identity or place.

• Conversion at the state level with business structure remaining unchanged.

Partnerships

You will be required to obtain a new EIN if any of the following statements are true.

• You incorporate.

• Your partnership is taken over by one of the partners and is operated as a sole proprietorship.

• You end an old partnership and begin a new one.

You will not be required to obtain a new EIN if any of the following statements are true.

• The partnership declares bankruptcy.

• The partnership name changes.

• You change the location of the partnership or add other locations.

• A new partnership is formed as a result of the termination of a partnership under IRC section 708(b)(1)(B).

• 50 percent or more of the ownership of the partnership (measured by interests in capital and profits) changes hands within a twelve-month period (terminated partnerships under Reg. 301.6109-1).

Limited Liability Company (LLC)

An LLC is an entity created by state statute.

The IRS did not create a new tax classification for the LLC when it was created by the states; instead IRS uses the tax entity classifications it has always had for business taxpayers: corporation, partnership, or disregarded as an entity separate from its owner, referred to as a “disregarded entity.”

An LLC is always classified by the IRS as one of these types of taxable entities.

If a “disregarded entity” is owned by an individual, it is treated as a sole proprietor. If the “disregarded entity” is owned any any other entity, it is treated as a branch or division of its owner.

Changes affecting Single Member LLCs with Employees

For wages paid on or after January 1, 2009, single member/single owner LLCs that have not elected to be treated as corporations may be required to change the way they report and pay federal employment taxes and wage payments and certain federal excise taxes.

On Aug. 16, 2007, changes to Treasury Regulation Section 301.7701-2 were issued. The new regulations state that the LLC, not its single owner, will be responsible for filing and paying all employment taxes on wages paid on or after January 1, 2009.

These regulations also state that for certain excise taxes, the LLC, not its single owner, will be responsible for liabilities imposed and actions first required or permitted in periods beginning on or after January 1, 2008.

If a single member LLC has been filing and paying employment taxes under the name and EIN of the owner, and no EIN was previously assigned to the LLC, a new EIN will be required for wages paid on or after January 1, 2009.

If a single member LLC has been filing and paying excise taxes under the name and EIN of the owner and no EIN was previously assigned to the LLC, a new EIN will be required for certain excise tax liabilities imposed and actions first required or permitted in periods beginning on or after January 1, 2008.

The following examples may assist in determining if a new EIN is required:

• If the primary name on the account is John Doe, a new EIN will be required.

• If the primary name on the account is John Doe and the second name line is Doe Plumbing (which was organized as an LLC under state law), a new EIN is required.

• If the primary name on the account is Doe Plumbing LLC, a new EIN will not be required.

You will be required to obtain a new EIN if any of the following statements are true.

• A new LLC with more than one owner (Multi-member LLC) is formed under state law.

• A new LLC with one owner (Single Member LLC) is formed under state law and chooses to be taxed as a corporation or an S corporation.

• A new LLC with one owner (Single Member LLC) is formed under state law, and has an excise tax filing requirement for tax periods beginning on or after January 1, 2008 or an employment tax filing requirement for wages paid on or after January 1, 2009.

You will not be required to obtain a new EIN if any of the following statements are true.

• You report income tax as a branch or division of a corporation or other entity, and the LLC has no employees or excise tax liability.

• An existing partnership converts to an LLC classified as a partnership.

• The LLC name or location changes.

• An LLC that already has an EIN chooses to be taxed as a corporation or as an S corporation.

• A new LLC with one owner (single member LLC) is formed under state law, does not choose to be taxed as a corporation or S corporation, and has no employees or excise tax liability.

When to Change Your Business EIN, Former IRS, Tax Help, IRS Tax Consultant