by Fresh Start Tax | Feb 13, 2014 | Tax Help
Alternative Minimum Tax
You may have to pay this tax if your income is above a certain amount.
The AMT attempts to ensure that some individuals who claim certain tax benefits pay a minimum amount of tax.
Here are some things from the IRS that you should know about AMT:
Its dreadful to have to pay this:
You may have to pay the tax if your taxable income, plus certain adjustments, is more than the AMT exemption amount for your filing status.
If your income is below this amount, you usually will not owe AMT.
The 2013 AMT exemption amounts for each filing status are:
- Single and Head of Household – $51,900
- Married Filing Joint and Qualifying Widow(er) – $80,800
- Married Filing Separate – $40,400
The rules for AMT are more complex than the rules for regular income tax. The best way to make it easy on yourself is to use IRS e-file to prepare and file your tax return.
If you owe AMT, you usually must file Form 6251, Alternative Minimum Tax – Individuals.
Some taxpayers who owe AMT can file Form 1040A and use the AMT Worksheet in the instructions.
Alternative Minimum Tax – What you need to KNOW, Former IRS
by Fresh Start Tax | Feb 13, 2014 | Tax Help
Affordable Experts for IRS, State Audit Defense – Tax Audit Representation
If you have an IRS or state tax problem of any kind contact us today and we can review your case and give you an expert opinion on the best way to resolve the issues at hand.
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Tax Audits
Only 1% of all tax returns get audited as a general rule by the Internal Revenue Service or the state of Florida Department of revenue.
If you are one of these unlucky souls who have won the audit lottery, take some comfort because as former IRS and state tax auditors we can provide you your best tax defense and save you is much money is humanly possible.
If you wind up owing tax, we will work out a tax settlement for you.
There are many reasons that both the Internal Revenue Service and the state of Florida audits taxpayers.
The most common reason is that you are either turned in by a third-party, you fell out of the national averages or something about your tax return caught the attention of the IRS or the state of Florida.
Many times being inconsistent and paying and inconsistent and filing will generate tax audits.
If this is happening to you contact us today and we will refer you to the expert who matches your industry expertise.
We have been in private practice since 1982 and we are A+ rated by the Better Business Bureau.
Question Asked by most taxpayers regarding IRS or State Tax Audits
How far back can the IRS/State go to audit my return?
Generally, the IRS/State can include returns filed within the last three years in an audit. Additional years can be added if a substantial error is identified.
Generally, if a substantial error is identified, the IRS will not go back more than the last six years.
The IRS/State tries to audit tax returns as soon as possible after they are filed. Accordingly most audits will be of returns filed within the last two years.
If an audit is for an older year, you may be requested to extend the statute of limitations for assessment of your tax return.
The statute of limitations limits the time allowed to assess additional tax.
The statute of limitations is generally three years after a return is due or was filed, whichever is later. There is also a statute of limitations for making refunds.
If the audit is not resolved and the statute of limitations date is nearing, you may be asked to extend the statute of limitations date.
This will allow you additional time to provide further documentation to support your position, request an appeal if you do not agree with the audit results, or to claim a tax refund or credit. It also allows the IRS time to complete the audit and provides time to process the audit results.
You do not have to agree to extend the statute of limitations date.
However, if you do not agree, the examiner will be forced to make a determination based upon the information they currently have. Therefore, the examiner may not be able to consider additional adjustments, such as expenses, that could lower the amount of tax due.
IRS, State Tax Audit Defense – IRS Problems – Affordable Experts – Clearwater, Largo, St. Pete, Port Charlotte – FLORIDA
by Fresh Start Tax | Feb 13, 2014 | Tax Help
How to Choose the right Filing Status for your Income Tax Return
You need to use the right status because it affects how much you pay in taxes. It may even affect whether you must file a tax return.
When choosing a filing status, keep in mind that your marital status on Dec. 31 is your status for the whole year.
If more than one filing status applies to you, choose the one that will result in the lowest tax.
Note for same-sex married couples.
New rules apply to you if you were legally married in a state or foreign country that recognizes same-sex marriage.
You and your spouse generally must use a married filing status on your 2013 federal tax return.
This is true even if you and your spouse now live in a state or foreign country that does not recognize same-sex marriage.
Here is a list of the filing statuses to help you choose:
1. Single.
This status normally applies if you aren’t married or are divorced or legally separated under state law.
2. Married Filing Jointly.
A married couple can file one tax return together. If your spouse died in 2013, you usually can still file a joint return for that year.
3. Married Filing Separately.
A married couple can choose to file two separate tax returns instead of one joint return. This status may be to your benefit if it results in less tax. You can also use it if you want to be responsible only for your own tax.
4. Head of Household.
This status normally applies if you are not married. You also must have paid more than half the cost of keeping up a home for yourself and a qualifying person. Some people choose this status by mistake. Be sure to check all the rules before you file.
5. Qualifying Widow(er) with Dependent Child.
If your spouse died during 2011 or 2012 and you have a dependent child, this status may apply. Certain other conditions also apply.
If you would like to have your tax return prepared by former IRS agents contact us today, happy filing!
by Fresh Start Tax | Feb 13, 2014 | Tax Help
IRS, State Tax Audits, Back Taxes Problems
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If you have any outstanding issues with the Internal Revenue Service or the state of Florida, whether you have on unfiled tax returns or your experiencing a IRS federal or state tax audit contact us today for free initial tax consultation and you can speak directly to a professional tax expert.
On staff are tax attorneys, certified public accountants, former IRS agents and state of Florida tax auditors.
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Due to our years of experience in both the federal and state level we understand all the methods, all the techniques, of the settlement formulas, and the fastest and most affordable way to end your back tax problem.
Tax Tips on Tax Audits
Taxpayers are audited by the Internal Revenue Service and the state of Florida for many reasons.
You are a bit unlucky if you are experiencing an IRS or state tax audit because both agencies only audit 1% of all taxpayers.
There are a myriad of reasons why taxpayers are audited by the Internal Revenue Service and the state of Florida.
Many times taxpayers are turned in to the IRS or State of Florida because of former employees, spouses or people who just are plain than vindictive.
Other times, taxpayers fall out of the normal ranges in the computers automatically generate IRS and state tax on its.
Other reasons are listed below;
1. Front Loaded Programs
These programs are those activities Headquarters has determined are of such importance time must be allocated to them before resources are committed to other activities. The PSP Territory Manager will discuss this time with the Area Director and Territory Managers responsible for these programs to ensure the examination plan response shows the correct time allocations.
Examples of these programs are as follows:
2. National Research Program
3. Abusive Transaction (AT) Promoters
4. Offshore Compliance Initiative
5. Abusive Transactions (Offshore AT and Domestic AT)
6. High Income/High Wealth (HIHW) Taxpayers
7. High Income Non Filers (HINF)
8. Special Enforcement Program (SEP)
Note: if you have a very clean tax returns there is nothing wrong with the taxpayer going in unrepresented to the Internal Revenue Service or the state of Florida however if you have any skeletons in the closet it only makes sense to hire an affordable tax firm.
Contact us today we are A+ rated by the Better Business Bureau
IRS, State Tax Audits, Back Tax Problem – Affordable Experts – Fernandina Beach, St. Augustine, Green Cove Springs – Florida Sales Tax
by Fresh Start Tax | Feb 12, 2014 | Tax Help
If you are struggling with IRS or sales tax problems contact us today for free initial tax consultation speak directly to a tax professionals.
We can handle all IRS and state tax problems.
We are comprised of tax attorneys, certified public accountants, former IRS agents, former State of Florida sales tax agents and IRS appellate agents to help with any tax issues that you may have any federal or state tax matter.
We are the affordable tax experts.
We have been practicing in Florida since 1982 and we are A+ rated by the Better Business Bureau.
We have represented countless number of Floridians over the last 35 years.
Being federal and state tax agents we know all the issues, systems, settlement there is, and settlement solutions to make this a smooth as possible for your client.
Why does the Internal Revenue Service and the state of Florida audit tax returns.
There are many reasons why the IRS in the state of Florida on its tax returns. approximately 1% of all tax returns are audited by both the federal and state governments. please find below a list of a few reasons why your tax return may be pulled for the tax audit.
Front Loaded Programs
These programs are those activities Headquarters has determined are of such importance time must be allocated to them before resources are committed to other activities.
The PSP Territory Manager will discuss this time with the Area Director and Territory Managers responsible for these programs to ensure the examination plan response shows the correct time allocations.
Examples of these programs are as follows:
- National Research Program
- Abusive Transaction (AT) Promoters
- Offshore Compliance Initiative
- Abusive Transactions (Offshore AT and Domestic AT)
- High Income/High Wealth (HIHW) Taxpayers
- High Income Non Filers (HINF)
- Special Enforcement Program (SEP)
Remember this is only a few reasons why you may be audited by the Internal Revenue Service or Florida sales tax.
It is also possible that you have been turned in by a third-party, former employee or spouse regarding the condition of your tax records.
Remember, both the federal and state governments understand what the averages are on all personal and business tax returns as far as expenses go.
If you have a clean tax return you should represent yourself, if you have any skeletons in your closet whatsoever you should hire a professional tax firm.
What your chances of a tax audit? , approximately 1%.
