by steve | Sep 9, 2010 | Tax Help, Uncategorized
Claim New Health Care Tax Credit
IRS Also Announces How Tax-Exempt Organizations Will Claim Credit
WASHINGTON –– The Internal Revenue Service today released a draft version of the form that small businesses and tax-exempt organizations will use to calculate the small business health care tax credit when they file income tax returns next year. The IRS also announced how eligible tax-exempt organizations –– which do not generally file income tax returns –– will claim the credit during the 2011 filing season.
The IRS has posted a draft of Form 8941 on IRS.gov. Both small businesses and tax-exempt organizations will use the form to calculate the credit. A small business will then include the amount of the credit as part of the general business credit on its income tax return.
Tax-exempt organizations will instead claim the small business health care tax credit on a revised Form 990-T. The Form 990-T is currently used by tax-exempt organizations to report and pay the tax on unrelated business income. Form 990-T will be revised for the 2011 filing season to enable eligible tax-exempt organizations –– even those that owe no tax on unrelated business income –– also to claim the small business health care tax credit.
The final version of Form 8941 and its instructions will be available later this year.
The small business health care tax credit was included in the Affordable Care Act signed by the President in March and is effective this year. The credit is designed to encourage small employers to offer health insurance coverage for the first time or maintain coverage they already have.
In 2010, the credit is generally available to small employers that contribute an amount equivalent to at least half the cost of single coverage towards buying health insurance for their employees. The credit is specifically targeted to help small businesses and tax-exempt organizations that primarily employ moderate- and lower-income workers.
For tax years 2010 to 2013, the maximum credit is 35 percent of premiums paid by eligible small business employers and 25 percent of premiums paid by eligible employers that are tax-exempt organizations. Beginning in 2014, the maximum tax credit will go up to 50 percent of premiums paid by eligible small business employers and 35 percent of premiums paid by eligible, tax-exempt organizations for two years. The maximum credit goes to smaller employers ¬¬–– those with 10 or fewer full-time equivalent (FTE) employees ––¬¬ paying annual average wages of $25,000 or less.
The credit is completely phased out for employers that have 25 FTEs or more or that pay average wages of $50,000 per year or more. Because the eligibility rules are based in part on the number of FTEs, and not simply the number of employees, businesses that use part-time help may qualify even if they employ more than 25 individuals.
by steve | Sep 9, 2010 | Tax Help, Uncategorized
Sales Tax Problems – Ft. Lauderdale – Affordable Tax Attorneys, CPA’s, Former Agents 954-492-0088, since 1982.
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A word about Sales Tax Amnesty
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Sales Tax Problems – Ft. Lauderdale – Attorneys, CPA’s, Former Agents – Sales Tax Experts
by steve | Sep 9, 2010 | Tax Help, Uncategorized
Sales Tax Problems – Ft. Lauderdale – Affordable Tax Attorneys, CPA’s, Former Agents 954-492-0088, since 1982.
Call our tax firm today and speak directly to tax attorneys, CPAs, or former agents.
We have over 206 years professional tax experience and we have over 60 years working directly for the Internal Revenue Service working as agents, instructors, and tax investigators for the Department of Treasury.
You can contact us today for a no-cost professional tax consultation and find out how to permanently end your sales tax problem.
If you are experiencing a tax audit or owe back sales tax we can end your problem today.
A word about Sales Tax Amnesty
Do you have a pending audit from the Dept. of Revenue, State of Florida or has a tax warrant been issued for outstanding tax liabilities.
Take immediate advantage of FLORIDA’S TAX AMNESTY!
You only have until Sept. 30, 2010 to apply. Call or CONTACT FRESH START TAX or email us on the web www.freshstarttax. 1-866-700-1040
Contact us to see if you qualify.
Our firm is comprised of former Dept. of Revenue Tax Experts and former Dept. employees!
.
Areas of Professional Tax Practice:
- Same Day IRS Tax Representation
- Offers in Compromise or IRS Tax Debt Settlements
- Immediate Release of IRS Bank Levies or IRS Wage Garnishments
- Tax Relief from a IRS Bill, Letter or Notice of “Intent to Levy”
- IRS Tax Audits
- IRS Hardships Cases or Unable to Pay
- Payment Plans, Installment Agreements, Structured agreements
- Abatement of Penalties and Interest
- State Sales Tax Cases
- Payroll / Trust Fund Penalty Cases / 6672
- Filing Late, Back, Unfiled Tax Returns
- Tax Return Reconstruction if Tax Records are lost or destroyed
Our Company Resume: ( Since 1982 )
- Our staff has collectively over 205 years of Professional IRS Tax Representation Experience
- On staff, Board Certified Tax Attorney’s, IRS Tax Lawyers, Certified Public Accountants, Enrolled Agents,
- We taught Tax Law in the IRS Regional Training Center
- Former IRS Agents, Managers and Instructors with over 60 years experience in the local, district and regional IRS offices.
- Highest Rating by the Better Business Bureau “A”
- Fast, affordable, and economical
- Licensed and certified to practice in all 50 States
Sales Tax Problems – Ft. Lauderdale – Attorneys, CPA’s, Former Agents – Sales Tax Experts
by steve | Jul 31, 2010 | Tax Help, Uncategorized
There is expert Christian tax help available to you in the areas of any IRS problems, unfiled tax returns, back taxes that are still owed and IRS Audits.
Fresh Start Tax is one of the highest rated tax resolution companies in the United States. The principles of Fresh Start Tax have been in the tax resolution business for the past 28 years and have been given highest rated BBB score possible.
All tax resolution is based on biblical principles and our main goal is not only to resolve the tax problem but to wholly restore the individual or the business going through a difficult season of time. Christian financial counseling is also available.
Biblical Principles we will discuss
* Old and new testament perspective
* Render to Caesar the things that are Caesars
* We are not to be bond servants
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Some of the benefits of immediate professional representation:
* You do not have to talk with Internal Revenue Service
* You know your case will be handled and resolved as fast as possible
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What are the dangers of self representation:
* Be aware of the far reaching power of IRS
* Be aware of the detailed asset search that the IRS can use
* Be aware that the IRS may not really be closing your case
* Be aware that the IRS is securing information about you to collect the tax in full
Why the IRS will work better with a professional company than you the taxpayer:
* Professionals know what IRS is looking for
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Hire the very best professional Christian tax company, Fresh Start Tax. Check us out on the web www.freshstarttax.com Skype us at password: freshstarttax
1-866-700-1040 Video conferencing available Psalms 1
by steve | Jun 3, 2010 | Tax Help, Uncategorized
Attorney-Client Privilege
Attorney-Client Privilege is extended to clients of Fresh Start Tax. The law that deals with this issue is as follows:
Extension of Attorney-Client Privilege
The attorney-client privilege is now applicable to communications between taxpayers and individuals authorized to practice before the Service. The privilege is not extended to criminal tax matters or proceedings nor to communications regarding corporate tax shelters. Act § 3411(a) adding I.R.C. § 7525(a)(2). The amendment is effective with regard to communications made on or after, July 22, 1998, the date of enactment. Act § 3411(c).
Should you have any questions that deal with this issue, please feel free to call us at 1.866.700.1040
by steve | May 3, 2010 | Tax Help, Uncategorized
Return Preparer Review Leads to Recommendations For New Requirements of Paid Tax Return Preparers
FS-2010-1, January 2010
What is the Return Preparer Review?
In June 2009, IRS Commissioner Doug Shulman called for a comprehensive review of the paid tax return preparer industry, drawing on all relevant data and input from interested parties. The goal was to produce a comprehensive set of recommendations to better leverage the tax return preparer community, fostering higher compliance with the law by taxpayers and better service to taxpayers through higher standards of conduct by paid return preparers.
The Return Preparer Review is the result of an open, transparent dialogue with all interested parties, including consumer advocates, tax professional groups, federal and state organizations, IRS advisory groups, software vendors, and all types of return preparers, among others. The review incorporates the input from three public meetings and more than 500 public comments.
Based on the results of the Return Preparer Review, the IRS recommends a number of steps that it plans to implement for future filing seasons. These steps will not be in effect for the current 2010 filing season.
What new regulatory requirements will result from the Return Preparer Review?
Registration: Paid tax return preparers currently have no registration requirement with the IRS, but they are required to sign the returns they prepare and provide either their Social Security Number or a Preparer Tax Identification Number (PTIN). The PTIN has been an optional number a preparer can apply for if they prefer not to disclose their SSN.
The IRS intends to require individuals who are required to sign a federal tax return as paid return preparer to register with the IRS and pay a user fee. Also, the IRS plans to make the use of PTINs mandatory instead of optional.
The IRS intends to develop an online registration system for paid return preparers. The IRS plans to issue PTINs to preparers who do not currently have one as part of the online registration process. The IRS also intends for the registration process to apply to those paid preparers who already have a PTIN. These individuals will be reissued their current PTIN when they register.
Registration renewals and user fee payments would be required every three years. Registration and PTIN requirements would not apply to volunteer or other uncompensated preparers.
Competency Testing: Paid tax return preparers who are not attorneys, certified public accountants or enrolled agents will have to take a competency test. Currently any person may prepare a federal tax return for any other person for a fee. There are no minimum competency standards. The IRS plans to require that paid tax return preparers who are not attorneys, certified public accountants, or enrolled agents pass an IRS competency test. It should be noted that certified public accountants, attorneys and enrolled agents already take competency tests. However, in the future the IRS will study tax return accuracy of attorneys and certified public accountants to ensure that this exemption to testing requirements is warranted.
To avoid business interruption for existing preparers and clients, a transition rule would give existing preparers approximately three years to meet the competency testing requirement. There would be two levels of competency examinations for: (1) Wage and non-business Form 1040 series and (2) Wage and Small Business Form 1040 series. The IRS plans to monitor the testing process during the implementation period to study whether additional tests are necessary and feasible. The IRS plans to add a third test on business tax preparation after the initial implementation phase is completed.
The IRS plans to allow preparers who test during the initial three-year implementation period be permitted to sit for the examination as often as the examination is offered until they pass the examination provided the applicable fee is paid for each attempt.
The IRS does not intend to ?grandfather? any tax return preparer from the testing requirement based on return preparation experience. Once testing is available, the IRS plans to require unregistered individuals who want to become preparers to pass the competency test prior to registration and issuance of a PTIN. The IRS recommends that enrolled actuaries and enrolled retirement plan agents be required to pass one of the IRS competency tests if they intend to prepare Form 1040 series returns.
Continuing Education: Paid preparers who are not attorneys, certified public accountants, enrolled agents, enrolled actuaries, or enrolled retirement plan agents would be required to complete 15 hours of continuing education annually. The 15 hours must include three hours of federal tax law updates, two hours of tax ethics, and 10 hours of other federal tax law topics.
The IRS intends to have paid preparers self-certify completion of continuing education requirements during registration renewal. The IRS plans to conduct periodic checks to ensure compliance with the requirements.
While attorneys, certified public accountants, enrolled agents, enrolled actuaries, and enrolled retirement plan agents are not subject to IRS continuing education requirements or self-certification during the registration renewal process, they generally must complete continuing education to retain their professional credentials. If data is collected in the future that identifies a need for educational requirements for these individuals, the IRS will consider expanding the continuing education requirements to them.
Public Database: The IRS will develop a searchable database of tax return preparers that have registered and passed the competency examination. This will allow the public to see whether a preparer has taken appropriate tests and has registered with the IRS.
Compliance Checks: The IRS plans to require all signing paid tax return preparers be subject to verification of personal and business tax compliance every three years.
During the initial three-year implementation period, the IRS plans to conduct the tax compliance checks after registration and prior to the required renewal date. After the three-year phase-in period, the IRS intends to require tax compliance as a condition of registration and PTIN issuance.
For those individuals who are registered and have a PTIN, the IRS intends to refer potential tax compliance violations discovered at renewal to the IRS Office of Professional Responsibility for investigation and possible disciplinary sanctions.
Ethical Standards: The IRS recommends making all signing and non-signing tax return preparers subject to the provisions of Treasury Department Circular 230, which will make them subject to discipline for unethical and unprofessional conduct. The authority granted to those individuals who either do not have professional licenses or and who are not enrolled agents, enrolled actuaries or enrolled retirement plan agents will be limited to preparing tax returns and representing their clients as currently permitted during the examination of any return prepared by that tax return preparer.
How will the IRS monitor and regulate preparers in the near future stemming from new regulatory requirements being phased in?
Enforcement: The IRS will implement a comprehensive enforcement strategy that includes applying significant examination and collection resources to tax return preparer compliance. The IRS will also take steps during the 2010 filing season to increase education and enforcement of return preparers.
Evaluation: The IRS will study how to enhance the effectiveness of traditional enforcement tools and incorporate new non-traditional enforcement tools, such as directed notices and targeted site visits, into the enforcement activities directed at tax return preparers. The IRS will study the impact an enhanced return preparer enforcement strategy has on taxpayer compliance and consider further changes to the IRS enforcement strategy dependent on the outcomes realized. The IRS will increase the coordination among its operating divisions and increase the staffing of the Office of Professional Responsibility to allow for increased investigations of practitioners, including tax return preparer misconduct.
Why is the Return Preparer Review and resulting new regulatory requirements important? Use of paid preparers has grown steadily in recent decades. Today, a majority of U.S.taxpayers rely on a paid preparer to assist them in meeting their federal tax filing obligation. A federal tax return is one of the most important financial documents that many individuals or families deal with in a given year. It is unclear exactly how many paid return preparers there are in the U.S. The IRS estimates the number to be between 900,000 and 1.2 million.
All preparers are subject to some oversight but it varies greatly depending on their professional affiliations and which state they practice in. Many preparers do not have to pass any government or professionally mandated competency requirement before charging to prepare tax returns. Taxpayers need and deserve return preparers who are ethical, fully qualified and able to provide the best possible service. In addition, unethical or incompetent preparers are the most likely to make mistakes or file incorrect returns, adding to non-compliance. Public comments received by the Return Preparer Review overwhelmingly expressed support for increased oversight of paid preparers, particularly those who are not attorneys, certified public accountants or others authorized to practice before the IRS.
When will these recommendations be effective? None of the recommendations are effective for the immediate filing season. Proposed and final regulations are necessary for implementation of many of these recommendations, and further information will be available as these are developed. However, the IRS will immediately increase its education and enforcement presence in the return preparer community this filing season.
