by Jim Magary | Mar 29, 2016 | Tax Help
We are an Affordable professional tax firm with over 65 years of direct IRS work experience. Since 1982. A plus Rated! We Can Help Reduce Tax Debt!
We worked in the audit, collections, and appeals division as well as former IRS teaching instructors.
I am a former IRS agent teaching instructor of the offer in compromise which is the tax settlement program for the federal government. That is one of the best opportunities you have to help reduce IRS tax debt.
If you want to file an offer in compromise to help reduce your back or delinquent IRS or state tax debt, I thought you’d like to know what the statistics are.
STAT: Last year over 78,000 offers in compromise were filed by taxpayers and over 38% of those were accepted for average of $6500 per case. Much of the success of this program is due to the pre-qualifier tool.
The pre-qualifier to let you know ahead of time if you are eligible for the program to make sure you don’t spend needless money on tax resolution companies that may rip you off. there is a very specific formula that the IRS uses to reduce your tax debt through the offer in compromise.
You should know ahead of time that IRS is only concerned about your income and your assets. Once you know the formula that have the formula explained to you will know if you are eligible to reduce your IRS tax debt.
We will not file for an offer in compromise unless you are a true candidate for the program. There is an IRS pre-qualifier tool that we review with our clients before we file for the offer in compromise.
Upon your initial tax consultation we’ll let you know if you are eligible to have an accepted offer in compromise by the Internal Revenue Service.
As a former IRS agent, I was a teaching instructor for the offer in compromise, the IRS tax debt settlement program. Due to the new fresh start tax initiative Internal Revenue Service had made it easier to file for the program.
Everyone wants to settle and reduce their tax bill.
Everyone wants to settle with IRS but there is a very specific format and methodology that must be followed.
You could hear the truth about the offer in compromise program when you call us.
There are many myths about the pennies on the dollar program so you need to hear the truth before spending any money.
I know the system inside and out. As a former IRS agent I used to accept and reject offers in compromise.
I have heard countless horror stories from taxpayers who called me about firms that have ripped them off promising settlements.
As a former IRS agent I taught the offer in compromise program at the district training center as a former employee.
The question is pennies on the dollar possible to settle a back or delinquent tax debt?
Yes, it is as a matter of fact, over 38,000 taxpayers got their debt settled with the Internal Revenue Service for average settlement of $6500 last year.
With that being said there is much to say about this pennies on the dollar program called the offer in compromise.
At our firm we will take no clients money until we are no they are a true candidate for the settlement program.
There are many myths about the offer in compromise so IRS and in their great wisdom provides a pre-qualifier tool to find out if taxpayers are eligible for the offer in compromise program so taxpayers do not give their hard-earned money to unsuspecting tax firms promising tax settlements.
I would suggest anyone who wants to go ahead and settle their tax debt through the pennies on the dollar, offer in compromise program contact an experienced an honest tax professional, have them walk them through the pre-qualifier tool before they give their money to anybody.
If you have any questions or issues about the offer in compromise program to settle your debt for pennies on the dollar, call us today and we will review your case to let you know if you are a qualified and suitable candidate..
On cases over $100,000 it is typical they will check your credit report for the accuracy of your financial statement. The higher the dollar case the greater the due diligence.
Many people ask why is this process not that simple. The answer is this, all accepted offers in compromise are a matter of public record for one year in the regional office where the offer was accepted.
The Internal Revenue Service does all that it can to make sure there is a matter of consistency within the offer in compromise program if not still be a tremendous public outcry.
Right now there are over 7500 cases in the offer queue to be worked.
One base rule for the offer in compromise program. IRS is only concerned about your income and assets. this includes your equity in your home, pension plans are IRA’s.
One nice thing about the IRS accepting your offer in compromise is that once you meet the terms of the settlement they will release your federal tax lien.
Below you will find out what you need to know about the offer in compromise program.
TYPES OF OIC PAYMENTS
• The Lump Sum Cash Payment:
Submit an initial payment of 20 percent of the total offer amount with your application. Wait for written acceptance, then pay the remaining balance of the offer in five or fewer payments.
• The Periodic Payment:
Submitting your initial payment with your application.
Continue to pay the remaining balance in monthly installments while the IRS considers your offer. If accepted, continue to pay monthly until it is paid in full.
If you meet the Low Income Certification guidelines, you do not have to send the application fee or the initial payment and you will not need to make monthly installments during the evaluation of your offer.
Understand the process of OIC to Reduce Your Tax Debt
While your offer is being evaluated:
• Your non-refundable payments and fees will be applied to the tax liability (you may designate payments to a specific tax year and tax debt);
• A Notice of Federal Tax Lien may be filed;
• Other collection activities are suspended;
• The legal assessment and collection period is extended;
• Make all required payments associated with your offer;
• You are not required to make payments on an existing installment agreement; and
• Your offer is automatically accepted if the IRS does not make a determination within two years of the IRS receipt date.
Call us today for free initial tax consultation to see if you are a certified an eligible candidate for the offer in compromise program to reduce your IRS Tax Debt.
When you call our office you will speak to true IRS tax expert to learn more about the offer in compromise and tax debt settlement program to reduce your IRS tax debt.
Help Reduce IRS Tax Debt Today + Former IRS Knows System
by Jim Magary | Mar 29, 2016 | Tax Help
We can get immediate release of IRS paycheck wage garnishments. Since 1982, former IRS agents who know the system. Affordable!
FAST AFFORDABLE! We have solutions to get your money back NOW!
We are a full service tax firm that specializes in the immediate releases of IRS paycheck levy wage garnishments.
We are composed of former IRS agents, managers and teaching instructors who have over 65 years of direct IRS work experience.
We are the affordable professional tax firm that can get an IRS a paycheck wage levy garnishment released and settle your case all at the same time.
As a general rule, the IRS sends a paycheck wage levy garnishment out because a taxpayer has not responded to the final notice is for seizure.
As a general rule, the Internal Revenue Service sends out five notices to taxpayers before they seize. the paycheck levy is the quickest and fastest way for the Internal Revenue Service to get your attention.
Last year the IRS sent out 1.8 million bank and wage garnishment levies.
IRS collects billions of dollars a year by the use of its bank levy and wage garnishment or paycheck system.
They are set up on five-week billing cycles. Many times taxpayers have never received the IRS final notice.
When you call our firm and retainer our firm you’ll never have to speak to the Internal Revenue Service.
As a general rule, within 24 hours of receiving your current documented financial statement we can provide for you paycheck wage garnishment assistance and provide a tax levy relief for you. We will also settle your case at the same time.
Settlements include having your case put into currently not collectible, making a monthly payment or settling your tax debt for pennies on a dollar.
The tax statistics show that 40% of all people who owe back taxes are placed in currently not collectible or hardship, 6.5 million people are placed into payment agreements, and close to 40,000 people have their cases settle to the offer in compromise program.
Your current financial statement fully documented will determine this course of action. The preparation of your financial statements key to any and all settlements.
Information about Paycheck Wage Levy Garnishments
The IRS generally uses Form 668–W(ICS) or 668-W(C)DO to levy an individual’s wages, salary (including fees, bonuses, commissions, and similar items) or other income.
Form 668-W(ICS) and/or 668-W(C)(DO) also provides notice of levy on a taxpayer’s benefit or retirement income.
The IRS generally uses Form 668–A(C)DO to levy other property that a third-party is holding. For example, this form is used to levy bank accounts and business receivables.
Employers generally have at least one full pay period after receiving a Form 668-W(ICS) or 668-W(C)DO, Notice of Levy on Wages, Salary and Other Income (or other levy form) before they are required to send any funds from their employee’s wages to the IRS.
Employers should encourage your employees that have a levy placed on their wages to contact the IRS as soon as possible to discuss a release of levy and resolution of their tax liability. These IRS levies are not going away until IRS’s contacted in the issue a release.
IRS Wage Levy garnishments levies are continuous
The Internal Revenue Code allows for continuous levies with respect to wages, salaries and certain other types of property.
This means that a levy on wages and salaries continuously attached until it is released. The quicker you call IRS with the current financial statement the sooner you will get your IRS wage garnishment levy released.
Examples of property continuously attached include:
1. Salary and wages, and
2. Deferred compensation payments, such as retirement or pension income.
Amount owed to IRS
Levy forms include a “Total Amount Due.” This amount is calculated through the date shown below the total amount due. Interest and any applicable penalties will continue to accrue after the date shown.
To get an updated payoff figure, the person who owes the tax liability will need to contact the IRS. This information cannot be released to the employer.
A continuous wage levy may last for some time. 688W.
When all the tax shown on the levy is paid in full, the IRS will issue a Form 668-D, Release of Levy/Release of Property from Levy.
The IRS may also release a levy if the taxpayer makes other arrangements to pay their tax debt.
IRS Paycheck Wage levy garnishments exempt amount:
In the case of a levy on wages, the employer will pay the employee any amounts exempt from levy. The IRS calculates the exempt amount based on the standard deduction and the number of personal exemptions the employee is allowed.
IRS Publication 1494 (PDF), which is mailed with the Form 668-W(ICS) or 668-W(C)DO, explains to the employer how to compute the amount exempt from levy.
A levy includes a Statement of Exemptions and Filing Status.
The employer gives this statement to the employee to complete and return within three days.
If the employer does not receive the statement in three days, the exempt amount is figured as if the person is married filing separately with one exemption.
The IRS will notify the employer when the taxpayer is not entitled to levy exemptions.
If a wage levy continues from one calendar year to the next, the employee may submit a new Statement of Exemptions and Filing Status and ask their employer to re-compute the exempt amount.
IRS bank and other IRS tax levies
When the levy is on a bank, credit union or similar account, the Internal Revenue Code provides for a 21-day waiting period before the bank must comply with the levy. T
he waiting period allows the taxpayer time to contact the IRS and arrange to pay the tax or notify the IRS of errors in the levy.
Generally, IRS levies are delivered via U.S. mail.
The date and time of delivery of the levy is the time when the levy is considered to have been made.
This means funds in the account are frozen as of the date and time the levy is received. Normally, the levy does not affect funds deposited to the account after the date of the levy.
If a release of levy from the IRS is not received within 21 days of receipt of the levy, funds in the account as of the date and time the levy was received must be sent to the IRS.
If you are in need of immediate IRS wage levy garnishment assistance call us today for a free initial tax consultation.
We are A+ rated by the better business and have been in private practice since 1982.
Stop Levy On Wages Right Now + Former IRS Know System
by Jim Magary | Mar 29, 2016 | Tax Help
We are an Affordable professional tax firm with over 65 years of direct IRS work experience. Call us today and learn how you can resolve IRS tax debt. 1-866-700-1040
I am a former IRS agent teaching instructor of the offer in compromise which is the tax settlement program for the federal government. We are true affordable tax experts that can tell you exactly how to resolve IRS tax debt.
I know both the state in the IRS system inside and out.
We are affordable tax experts who can help resolve and reduce your IRS or state tax debt and assure you will settle for the lowest amount possible.
Last year over 78,000 offers in compromise were filed by taxpayers and over 38% of those were accepted for average of $6500 per case.
Much of the success of this program is due to the pre-qualifier tool.
The pre-qualifier to let you know ahead of time if you are eligible for the program to make sure you don’t spend needless money on tax resolution companies that may rip you off.
Keep in mind this is a national average in your case is completely dependent on your individual financial statement.
Knowing the formulas that IRS uses is the best way to settle your debt for the lowest amount possible.
We will not file for an offer in compromise unless you are a true candidate for the program. There is an IRS pre-qualifier tool that we review with our clients before we file for the offer in compromise.
Upon your initial tax consultation we’ll let you know if you are eligible to have an accepted offer in compromise by the Internal Revenue Service.
As a former IRS agent, I was a teaching instructor for the offer in compromise, the IRS tax debt settlement program.
Due to the new fresh start tax initiative Internal Revenue Service had made it easier to file for the program. even though the program is easier there is a large amount of diligence that IRS conducts before they accept an offer in compromise. all offers in compromise are available at the regional tax sites for the public to inspect for up to one year.
Caution: Resolving IRS tax debt however this program is not for everybody. That’s why it is best to be prequalified in the program.
Everyone wants to settle with IRS but there is a very specific format and methodology that must be followed.
You could hear the truth about the offer in compromise program when you call us.
There are many myths about the pennies on the dollar program so you need to hear the truth before spending any money.
I know the system inside and out. As a former IRS agent I used to accept and reject offers in compromise.
I have heard countless horror stories from taxpayers who called me about firms that have ripped them off promising settlements.
The question is pennies on the dollar possible to settle a back or delinquent tax debt?
At our firm we will take no clients money until we are no they are a true candidate for the settlement program.
There are many myths about the offer in compromise so IRS and in their great wisdom provides a pre-qualifier tool to find out if taxpayers are eligible for the offer in compromise program so taxpayers do not give their hard-earned money to unsuspecting tax firms promising tax settlements.
I would suggest anyone who wants to go ahead and settle their tax debt through the pennies on the dollar, offer in compromise program contact an experienced an honest tax professional, have them walk them through the pre-qualifier tool before they give their money to anybody.
If you have any questions or issues about the offer in compromise program to settle your debt for pennies on the dollar, call us today and we will review your case to let you know if you are a qualified and suitable candidate.
The IRS spends a lot of due diligence before they accept an offer in compromise. It is possible for the IRS to spend over 20 hours working an offer in compromise.
On cases over $100,000 it is typical they will check your credit report for the accuracy of your financial statement. The higher the dollar case the greater the due diligence.
Many people ask why is this process not that simple. The answer is this, all accepted offers in compromise are a matter of public record for one year in the regional office where the offer was accepted.
The Internal Revenue Service does all that it can to make sure there is a matter of consistency within the offer in compromise program if not still be a tremendous public outcry.
Right now there are over 7500 cases in the offer queue to be worked.
We are a full-service firm with an expertise in any IRS tax debt matter including offering compromise.
One base rule for the offer in compromise program. IRS is only concerned about your income and assets. this includes your equity in your home, pension plans are IRA’s.
One nice thing about the IRS accepting your offer in compromise is that once you meet the terms of the settlement they will release your federal tax lien.
Below you will find out what you need to know about the offer in compromise program.
TYPES OF OIC PAYMENTS
• Lump Sum Cash Payment:
Submit an initial payment of 20 percent of the total offer amount with your application. Wait for written acceptance, then pay the remaining balance of the offer in five or fewer payments.
• Periodic Payment:
Submit your initial payment with your application.
Continue to pay the remaining balance in monthly installments while the IRS considers your offer. If accepted, continue to pay monthly until it is paid in full.
If you meet the Low Income Certification guidelines, you do not have to send the application fee or the initial payment and you will not need to make monthly installments during the evaluation of your offer.
Understand the process of OIC
While your offer is being evaluated:
• Your non-refundable payments and fees will be applied to the tax liability (you may designate payments to a specific tax year and tax debt);
• A Notice of Federal Tax Lien may be filed;
• Other collection activities are suspended;
• The legal assessment and collection period is extended;
• Make all required payments associated with your offer;
• You are not required to make payments on an existing installment agreement; and
• Your offer is automatically accepted if the IRS does not make a determination within two years of the IRS receipt date.
Call us today for free initial tax consultation to see if you are a certified an eligible candidate for the offer in compromise program.
We call our office you will speak to a true IRS tax professional. So yes pennies on a dollar is possible, however make sure you’re a qualified candidate.
When you call our office you will speak to true IRS tax expert to learn more about the offer in compromise and tax debt settlement program to reduce your IRS tax debt. If you have the link went or back taxes you have options. Call us today to learn more.
How Can I Resolve IRS Tax Debt + Former IRS Explains
t
by Jim Magary | Mar 29, 2016 | Tax Help
We are an Affordable professional tax firm with over 65 years of direct IRS work experience. Since 1982. A plus Rated!
We worked in the audit, collections, and appeals division as well as former IRS teaching instructors. If you have back and/or delinquent taxes contact us today and receive a free initial tax consultation and learn more about IRS and state tax settlements.
I am a former IRS agent teaching instructor of the offer in compromise which is the tax settlement program for the federal government.
I know both the state in the IRS system inside and out. We are affordable tax experts who can help resolve and reduce your IRS or state tax debt.
If you want to file an offer in compromise to help reduce your back or delinquent IRS or state tax debt, I thought you’d like to know what the statistics are.
Last year over 78,000 offers in compromise were filed by taxpayers and over 38% of those were accepted for average of $6500 per case. Much of the success of this program is due to the pre-qualifier tool.
The pre-qualifier to let you know ahead of time if you are eligible for the program to make sure you don’t spend needless money on tax resolution companies that may rip you off.
Keep in mind this is a national average in your case is completely dependent on your individual financial statement. Knowing the formulas that IRS uses is the best way to settle your debt for the lowest amount possible.
We will not file for an offer in compromise unless you are a true candidate for the program. There is an IRS pre-qualifier tool that we review with our clients before we file for the offer in compromise.
Upon your initial tax consultation we’ll let you know if you are eligible to have an accepted offer in compromise by the Internal Revenue Service.
As a former IRS agent, I was a teaching instructor for the offer in compromise, the IRS tax debt settlement program. Due to the new fresh start tax initiative Internal Revenue Service had made it easier to file for the program.
However this program is not for everybody. That’s why it is best to be prequalified in the program.
Everyone wants to settle with IRS but there is a very specific format and methodology that must be followed.
You could hear the truth about the offer in compromise program when you call us.
There are many myths about the pennies on the dollar program so you need to hear the truth before spending any money.
I know the system inside and out. As a former IRS agent I used to accept and reject offers in compromise.
I have heard countless horror stories from taxpayers who called me about firms that have ripped them off promising settlements.
As a former IRS agent I taught the offer in compromise program at the district training center as a former employee.
The question is pennies on the dollar possible to settle a back or delinquent tax debt?
Yes, it is as a matter of fact, over 38,000 taxpayers got their debt settled with the Internal Revenue Service for average settlement of $6500 last year.
With that being said there is much to say about this pennies on the dollar program called the offer in compromise.
At our firm we will take no clients money until we are no they are a true candidate for the settlement program.
There are many myths about the offer in compromise so IRS and in their great wisdom provides a pre-qualifier tool to find out if taxpayers are eligible for the offer in compromise program so taxpayers do not give their hard-earned money to unsuspecting tax firms promising tax settlements.
I would suggest anyone who wants to go ahead and settle their tax debt through the pennies on the dollar, offer in compromise program contact an experienced an honest tax professional, have them walk them through the pre-qualifier tool before they give their money to anybody.
If you have any questions or issues about the offer in compromise program to settle your debt for pennies on the dollar, call us today and we will review your case to let you know if you are a qualified and suitable candidate.
The IRS spends a lot of due diligence before they accept an offer in compromise. It is possible for the IRS to spend over 20 hours working an offer in compromise.
On cases over $100,000 it is typical they will check your credit report for the accuracy of your financial statement. The higher the dollar case the greater the due diligence.
Many people ask why is this process not that simple. The answer is this, all accepted offers in compromise are a matter of public record for one year in the regional office where the offer was accepted.
The Internal Revenue Service does all that it can to make sure there is a matter of consistency within the offer in compromise program if not still be a tremendous public outcry.
Right now there are over 7500 cases in the offer queue to be worked.
We are a full-service firm with an expertise in any IRS tax debt matter including offering compromise.
One base rule for the offer in compromise program. IRS is only concerned about your income and assets. this includes your equity in your home, pension plans are IRA’s.
One nice thing about the IRS accepting your offer in compromise is that once you meet the terms of the settlement they will release your federal tax lien.
Below you will find out what you need to know about the offer in compromise program.
TYPES OF OIC PAYMENTS
• Lump Sum Cash Payment:
Submit an initial payment of 20 percent of the total offer amount with your application. Wait for written acceptance, then pay the remaining balance of the offer in five or fewer payments.
• Periodic Payment:
Submit your initial payment with your application.
Continue to pay the remaining balance in monthly installments while the IRS considers your offer. If accepted, continue to pay monthly until it is paid in full.
If you meet the Low Income Certification guidelines, you do not have to send the application fee or the initial payment and you will not need to make monthly installments during the evaluation of your offer.
Understand the process of OIC
While your offer is being evaluated:
• Your non-refundable payments and fees will be applied to the tax liability (you may designate payments to a specific tax year and tax debt);
• A Notice of Federal Tax Lien may be filed;
• Other collection activities are suspended;
• The legal assessment and collection period is extended;
• Make all required payments associated with your offer;
• You are not required to make payments on an existing installment agreement; and
• Your offer is automatically accepted if the IRS does not make a determination within two years of the IRS receipt date.
Call us today for free initial tax consultation to see if you are a certified an eligible candidate for the offer in compromise program.
We call our office you will speak to a true IRS tax professional. So yes pennies on a dollar is possible, however make sure you’re a qualified candidate.
When you call our office you will speak to true IRS tax expert to learn more about the offer in compromise and tax debt settlement program to reduce your IRS tax debt. If you have the link went or back taxes you have options. Call us today to learn more.
Back & Delinquent IRS & State Tax Settlements + Former IRS + Reduce Tax Debt
by Jim Magary | Mar 29, 2016 | Tax Help
If you need to file back tax returns without tax records call us today and learn the process. We are affordable former IRS agents who know the system. Since 1982.
We can file all your tax returns with or without records. There is a process and we know the process.
If you need experience and affordable tax help to file your back tax returns without records call us today for a free initial tax consultation. We can file your back tax returns and settle your case all at the same time.
We have over 65 years of direct work experience in the local, district, and regional tax offices of the IR . As Former IRS agents we taught new IRS Agents
Being a former IRS agent I cannot tell you how many times I’ve been approached by taxpayers with lost records and have not been able to file back tax returns.
There is an easy and simple fix.
The first place to start is with Internal Revenue Service.
Internal Revenue Service keeps an income record of all your W-2s and 1099 s on records for the past six years.
You can write or order on-line the Internal Revenue Service and ask them for an income tax transcript. They will provide for you a list of all income, 1099s, mortgage interest, stock and dividend interest and a whole variety of information you may not know that IRS keeps.
You should know that third parties are required to report to Internal Revenue Service so IRS has in-depth information from third parties on your prior income.
The next place to look is to bank statements.
As a former IRS agent and teaching instructor it is easy to find out how much a taxpayer has made by adding up their bank statements for each and every year.
IRS will come up with the sum total of your deposits and classify that as income unless you can show the money deposited came from other sources. Many times they do, sometimes they come from loans, or monies from other persons. If you are ever audited by the IRS the bank statements are one of the first things IRS will ask for.
An IRS agent can summons those or subpoena those to get an idea of how much income you had available.
Some people may think, ” while I have dealt in cash, how can IRS determine income?
IRS is a simple solution. The Internal Revenue Service a cost-of-living analysis. IRS has a and internal chart that they use.
As a general rule , if you know someone’s rent you can pretty much back into their income. As a general rule taxpayers spend between 28 to 35% of their available income or funds on rent or mortgage. Using that factor you can generally back into income. Once you come up with an average month of income and expenses you simply multiplied by 12.
As a general rule and IRS agent will explore three avenues to make sure everything adds up. IRS will ask for bank statements, cost-of-living analysis, tax returns, and a financial statement. All four of those have to have a common thread of income to those.
You should also be aware that IRS uses the department of labor records to find out how much it cost to live in a particular area they are also available on our website under IRS standards.These standards are national, regional and local for every county, city or borough in the United States.
You must also be aware that IRS uses what is called an Accuriant search engine that has information on you going back for 20 years. That information has a plethora of information about all your financial activity more so than the average person realizes.
Also IRS can pull up your credit report. your credit report obviously contains all your charges and IRS has the ability to pull up financial statements that you given the third parties to apply for credit.
The bottom line here, IRS has a lot of cross-reference material to find out what your income is.
Remember IRS’ is trained to go ahead and determine what your income is so it is to your best advantage to go ahead and file correct and accurate return.
File Back Tax Returns + Have No Tax Records, No Problem + Former IRS
by Jim Magary | Mar 29, 2016 | Tax Help
Good Records Key to Claiming Gifts to Charity
The Internal Revenue Service today reminded taxpayers planning to claim charitable donations to make sure they have the records they need before filing their 2015 tax returns.
For any taxpayer, keeping good records is key to qualifying for the full charitable contribution deduction allowed by law. In particular, this includes insuring that they have received required statements for two contribution categories—each gift of at least $250 and donations of vehicles.
First, to claim a charitable contribution deduction, donors must get a written acknowledgement from the charity for all contributions of $250 or more.
This includes gifts of both cash and property. For donations of property, the acknowledgement must include, among other things, a description of the items contributed.
In addition, the law requires that taxpayers have all acknowledgements in hand before filing their tax return. These acknowledgements are not filed with the return but must be retained by the taxpayer along with other tax records.
Second, special reporting requirements generally apply to vehicle donations, and taxpayers wishing to claim these donations must attach any required documents to their tax return.
The deduction for a car, boat or airplane donated to charity is usually limited to the gross proceeds from its sale.
This rule applies if the claimed value is more than $500. Form 1098-C or a similar statement, must be provided to the donor by the organization and attached to the donor’s tax return.
The IRS also reminded taxpayers to be sure any charity they are giving to is a qualified organization. Only donations to eligible organizations are tax-deductible.
Select Check, a searchable online tool available on IRS.gov, lists most organizations that are eligible to receive deductible contributions.
In addition, churches, synagogues, temples, mosques and government agencies are eligible even if they are not listed in the tool’s database.
Only taxpayers who itemize their deductions on Form 1040 Schedule A can claim gifts to charity. Thus, taxpayers who choose the standard deduction cannot deduct their charitable contributions. This includes anyone who files a short form (Form 1040A or 1040EZ).
A taxpayer will have a tax savings only if the total itemized deductions (mortgage interest, charitable contributions, state and local taxes, etc.) exceed the standard deduction. Use the 2015 Form 1040, Schedule A to determine whether itemizing is better than claiming the standard deduction.
Besides Schedule A, taxpayers who give property to charity usually must attach a special form for reporting these Non-cash contributions. If the amount of the deduction for all Non-cash contributions is over $500, a properly-completed Form 8283 is required.
The IRS provided these additional reminders about the special rules that apply to charitable contributions of used clothing and household items, monetary donations and year-end gifts.
Rules for Charitable Contributions of Clothing and Household Items
• This includes furniture, furnishings, electronics, appliances and linens. Clothing and household items donated to charity generally must be in good used condition or better to be tax-deductible. A clothing or household item for which a taxpayer claims a deduction of over $500 does not have to meet this standard if the taxpayer includes a qualified appraisal of the item with the return.
Guidelines for Monetary Donations
• A taxpayer must have a bank record or a written statement from the charity in order to deduct any donation of money, regardless of amount. The record must show the name of the charity and the date and amount of the contribution. Bank records include canceled checks, and bank, credit union and credit card statements. Bank or credit union statements should show the name of the charity, the date, and the amount paid. Credit card statements should show the name of the charity, the date and the transaction posting date.
• Donations of money include those made in cash or by check, electronic funds transfer, credit card and payroll deduction. For payroll deductions, the taxpayer should retain a pay stub, a Form W-2 wage statement or other document furnished by the employer showing the total amount withheld for charity, along with the pledge card showing the name of the charity.
Year-End Gifts
• Contributions are deductible in the year made. Thus, donations charged to a credit card before the end of 2015 count for 2015, even if the credit card bill isn’t paid until 2016. Also, checks count for 2015 as long as they were mailed in 2015.
