by steve | Sep 14, 2009 | Tax Help, Uncategorized
Let’s hear this straight from the horse’s mouth, the IRS.
How long should I keep my records?
You must keep records so that you can prepare a complete and accurate income tax return. The law does not require any special form of records. However, you should keep all receipts, cancelled checks or other proof of payment, and any other records to support any deductions or credits you claim. Keep them in a safe place. If you have to, scan them and keep the disc in a safe place.
You must keep your records for as long as they may be needed for the administration of any provision of the Internal Revenue Code. Generally, you should keep records that support an item of income or a deduction appearing on your return for at least 3 years from the date you filed the return. If you omitted income or need to establish basis for property, you will need to keep records even longer. In addition, you generally have 3 years from the date you filed your return, or 2 years from the date you paid the tax, whichever is later, to file a claim for credit or refund and will need to have records to support the claim.
This is directly from the gov site with personal comments.
by steve | Sep 14, 2009 | Tax Help, Uncategorized
If you get an agreement by the IRS approved, a one-time user fee will be charged. The user fee for a new agreement is $105 or $52 for agreements where payments are deducted directly from your bank account. For eligible individuals with incomes at or below certain levels, a reduced fee of $43 will be charged and is automatically figured based on your income. This is a normal processing fee.
by steve | Sep 14, 2009 | Tax Help, Uncategorized
Take a guess…………………………
1. 1 million
2. 2 million
3. 3 million
4. 4 million
The correct answer is closest to number 4. Yes, 4 million returns that the IRS must issue a formal report to the taxpayer.
by steve | Sep 14, 2009 | Tax Help, Uncategorized
One of the questions that comes up is the one of “how many” of this or that. So here is a fact in case you are on the millionaire show. How many Federal Tax Liens are filed a year?
Answer in 2008, around 700,000. The number seems to grow around 20% a year.
Liens are usually not released until the tax is paid in full.
by steve | Sep 11, 2009 | Tax Help, Uncategorized
This may surprise you. Their bark is worse than their bite. In 2007, the IRS seized nationwide, 676 hard assets.
Why is this number so low?
The government makes it very difficult for its revenue officers in the field to actually make seizures. The stuff they have to go through and the paperwork is overwhelming.
The agent must have a real solid case and you must be terribly delinquent for the government to take action. They go to great lengths to work out deals so that seizures do not have to be made.
by steve | Sep 11, 2009 | Tax Help, Uncategorized
Tax Credit for the First Four Years of College.
The American Opportunity Credit can help parents and students pay part of the cost of the first four years of college. The new credit modifies the existing Hope Credit for tax years 2009 and 2010, making it available to a broader range of taxpayers. Eligible taxpayers may qualify for the maximum annual credit of $2,500 per student.
Taken from the IRS.GOV site
