by Jim Magary | Jan 22, 2016 | Tax Help
IRS wants to know everything about everybody.
The W9 is the government’s way of making sure big brother knows everything about your business , those you associate with and those who you give your money to. that
A very important information item to understand is that the W9 does not have to be sent to Internal Revenue Service, it stays there with your business records.
So, who has to file a W9?
Anyone, yes anyone who did work for a company but was not an actual employee of that company is required to fill out W-9 federal income tax forms for every company for which they performed non-employee work.
W-9 forms are known as information reporting federal income tax forms. Other information reporting forms are W-2s, 1099s of all sorts.
IRS many times uses these information reports to track non-filers and levy bank accounts and garnish wages. The government wants to know is much financial information as they can about every taxpayer they have in the system.
Who might be asked to fill out a form W-9?
Independent freelancers and such. you should know that if IRS’s auditing and he said business they will ask for W -9 and have the right to disallow the business tax deduction if the W9 is not in the file.
Many times independent contractors and freelancers are brought in to perform work on projects that are short-term.
Another group that uses the W-9 income tax forms to report information to clients is consultants of any type.
Consultants come in and advise a company on a variety of verticals.
Sometimes training, CPE training and other things.
If you’ve consulted with a company, you are required to fill out W-9 income tax forms for each company you consulted with.
Other independent contractors, such as landscapers, repair people, fix er uppers all must also fill out W-9 income tax forms
This is true even if the work was carried out over a significant period of time.
Contractors working with a business for many years still turn in W-9 income tax forms.
These tax forms are also used to help the company avoid backup withholding from the checks they issue to you.
As an independent contractor, you are responsible for paying your own taxes.
Having a form W-9 on file for you allows companies to show the IRS that they do not owe payroll taxes.
Remember at the end of the day, big Brother is watching and will watch forever.
by Fresh Start Tax | Jan 22, 2016 | Tax Help
Most people file a tax return because they have to, but even if you don’t, there are times when you should.
You may be eligible for a tax refund and not know it. Here are six tips to help you find out if you should file a tax return:
1. General Filing Rules.
Whether you need to file a tax return depends on a few factors. In most cases, the amount of your income, your filing status and your age determine if you must file a tax return.
For example, if you’re single and under age 65 you must file if your income was at least $10,300.
Other rules may apply if you’re self-employed or if you’re a dependent of another person. There are also other cases when you must file. Go to IRS.gov/filing to find out if you need to file.
2. Premium Tax Credit.
If you enrolled in health insurance through the Health Insurance Marketplace in 2015, you may be eligible for the premium tax credit.
You will need to file a return to claim the credit. If you chose to have advance payments of the premium tax credit sent directly to your insurer during 2015 you must file a federal tax return.
You will reconcile any advance payments with the allowable premium tax credit. You should receive Form 1095-A, Health Insurance Marketplace Statement, by early February. The form will have information that will help you file your tax return
3. Tax Withheld or Paid.
Did your employer withhold federal income tax from your pay?
Did you make estimated tax payments?
Did you overpay last year and have it applied to this year’s tax?
If you answered “yes” to any of these questions, you could be due a refund. But you have to file a tax return to get it.
4. Earned Income Tax Credit.
Did you work and earn less than $53,267 last year?
You could receive EITC as a tax refund, if you qualify, with or without a qualifying child. You may be eligible for up to $6,242.
Use the 2015 EITC Assistant tool on IRS.gov to find out if you qualify. If you do, file a tax return to claim it.
5. Additional Child Tax Credit.
Do you have at least one child that qualifies for the Child Tax Credit?
If you don’t get the full credit amount, you may qualify for the Additional Child Tax Credit.
6. American Opportunity Tax Credit.
The AOTC is available for four years of post secondary education and can be up to $2,500 per eligible student.
You, your spouse or your dependent must have been a student enrolled at least half time for at least one academic period.
Even if you don’t owe any taxes, you still may qualify.
You must complete Form 8863, Education Credits, and file it with your return to claim the credit.
Confused? Call us today and have former IRS agents and managers will prepare any back tax return and assure that you will pay the lowest amount allowed by law.
by Jim Magary | Jan 22, 2016 | Tax Help
Most people file a tax return because they have to, but even if you don’t, there are times when you should.
You may be eligible for a tax refund and not know it. Here are six tips to help you find out if you should file a tax return:
1. General Filing Rules.
Whether you need to file a tax return depends on a few factors. In most cases, the amount of your income, your filing status and your age determine if you must file a tax return.
For example, if you’re single and under age 65 you must file if your income was at least $10,300.
Other rules may apply if you’re self-employed or if you’re a dependent of another person. There are also other cases when you must file. Go to IRS.gov/filing to find out if you need to file.
2. Premium Tax Credit.
If you enrolled in health insurance through the Health Insurance Marketplace in 2015, you may be eligible for the premium tax credit.
You will need to file a return to claim the credit. If you chose to have advance payments of the premium tax credit sent directly to your insurer during 2015 you must file a federal tax return.
You will reconcile any advance payments with the allowable premium tax credit. You should receive Form 1095-A, Health Insurance Marketplace Statement, by early February. The form will have information that will help you file your tax return
3. Tax Withheld or Paid.
Did your employer withhold federal income tax from your pay?
Did you make estimated tax payments?
Did you overpay last year and have it applied to this year’s tax?
If you answered “yes” to any of these questions, you could be due a refund. But you have to file a tax return to get it.
4. Earned Income Tax Credit.
Did you work and earn less than $53,267 last year?
You could receive EITC as a tax refund, if you qualify, with or without a qualifying child. You may be eligible for up to $6,242.
Use the 2015 EITC Assistant tool on IRS.gov to find out if you qualify. If you do, file a tax return to claim it.
5. Additional Child Tax Credit.
Do you have at least one child that qualifies for the Child Tax Credit?
If you don’t get the full credit amount, you may qualify for the Additional Child Tax Credit.
6. American Opportunity Tax Credit.
The AOTC is available for four years of post secondary education and can be up to $2,500 per eligible student.
You, your spouse or your dependent must have been a student enrolled at least half time for at least one academic period.
Even if you don’t owe any taxes, you still may qualify.
You must complete Form 8863, Education Credits, and file it with your return to claim the credit.
Confused? Call us today and have former IRS agents and managers will prepare any back tax return and assure that you will pay the lowest amount allowed by law.
by Jim Magary | Jan 22, 2016 | Tax Help
That time again which millions of taxpayers have to answer the question which 1040 tax return should I use?
Below you will find a good summary to help you make a decision.
You can also make a better decision by using fresh start tax and having former IRS agents and managers prepare your tax return to help audit proof your return and make sure you are paying the lowest amount allowed by law.
Which 1040 Tax Form is Best for You?
Filing electronically is the easiest way to file a complete and accurate return.
Here are some tips to help you choose the right forms:
You can generally use Form 1040EZ if:
• Your taxable income is below $100,000;
• Your filing status is single or married filing jointly;
• You don’t claim dependents; and
• Your interest income is $1,500 or less.
Note: You can’t use Form 1040EZ to claim the Premium Tax Credit. Nor can you use this form if you received advance payments of the premium tax credit in 2015.
Form 1040A may be best for you if:
• Your taxable income is below $100,000;
• You have capital gain distributions;
• You claim certain tax credits; and
• You claim adjustments to income for IRA contributions and student loan interest.
You must use the Form 1040 if:
• Your taxable income is $100,000 or more;
• You claim itemized deductions;
• You report self-employment income; or
• You report income from sale of a property.
Remember, if you e-file you don’t need any paper forms to mail to the IRS.
by Jim Magary | Jan 21, 2016 | Tax Help
We are an affordable professional tax firm with over 65 years of direct IRS work experience. Since 1982.
Let’s be honest, who can be more qualified to settle your IRS tax debt than a former IRS agent teaching instructor who taught the offer in compromise program to IRS agents.As former IRS agents we accepted offers in compromise and know every facet available to this program along with some of the hidden gems.
It is important to know before you begin the process of the tax offer in compromise is to make sure you’re a true offer in compromise tax debt settlement candidate.
We know the system inside and out and are some of the most affordable, trustworthy and notable experts in South Florida.
If you want to file an offer in compromise 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.
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.
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.
The question is pennies on the dollar possible to settle 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. There were a total of 78,000 applications for the pennies on the dollar, offer in compromise program 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 IRS OIC
While your IRS 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 will review with you the different criteria, the pre-qualifier tool and how to settle your tax debt for pennies on a dollar if you are qualified.
Call our office, you will speak to a true IRS tax professional.
Offer a Tax Compromise to IRS + Former IRS Offer in Compromise Specialist
by Jim Magary | Jan 21, 2016 | Tax Help
Affordable former IRS agents and managers and know the system, since 1982.
Their various solutions in dealing with IRS back tax debt and two of the most common ways are having IRS accept you as a:
1. hardship or uncollectible candidate,
2.or IRS entertaining a payment agreement.
Before you do predetermine which is the best method for you to resolve your IRS tax situation it is probably best to call our office for a free initial tax consultation and let us help you make the correct determination that will help you and your IRS problem.
It is important for you to know that certain conditions may exist to place you in a currently not collectible status or place you in the lowest possible payment agreement status with IRS.
There a lot of factors that come in the play before making a decision, some of those are your current financial statement, your future income potential, the length of your statute of limitations, and a possible exit strategy why
Over 40% of people who owe back taxes currently have their cases placed in uncollectible files or current tax hardships.
But what does that mean?
That means that the Internal Revenue Service will take your individual documented financial statement and will make a determination to find out if you can even make payments at this time.
If this is the case, IRS will put a freeze on it so no enforcement action may be taken.
About three years later, the case will come back out to the field for re-review. At that time the will make a new financial determination based on a current financial statement, pay stubs, and bank statements.
What is the downside the downside ? IRS will continue to take any refund you have available and penalties and interest run.
The other option is to enter into a monthly payment plan.
Monthly payment plans are based on the IRS review of the 433F , which is the IRS documented financial statement and documentation to support that financial statement.
Payment plans are figured out based on what the national, regional or localized averages and standards are for your current monthly expenses.
IRS simply looks at your current verified income to pay stubs and subtracts from it the national, regional localized average expenses that a taxpayer should have in the area in which you live. If there is a surplus that’s what IRS will expect for a payment agreement.
So the minimum IRS payment agreement will be determined on the financial statement and that’s why it is important that a true IRS tax expert both prepare and negotiate any payment agreement you are making with Internal Revenue Service.
It is well worth your money because many times IRS will force you into an agreement that you are never again to be able to live into.
It also should be noted that many taxpayers with installment payments are eligible for the offer in compromise program to settle their debt for pennies on the dollar.
When you call our office we will walk through the forms with you and find out is what the best available solution is for you.
Since 1982 we have been practicing tax representation for taxpayers, and businesses and individuals and corporations who owe back taxes.
Call us today learn more and speak to a true IRS tax expert.
IRS Payment Plans + What is the Minimum Amount + Former IRS + Learn the Truth
