by Jim Magary | Jul 15, 2015 | Tax Help
Tax Breaks for the Military
If you are in the U. S. Armed Forces, special tax breaks may apply to you. For example, some types of pay are not taxable.
Certain rules apply to deductions or credits that you may be able to claim that can lower your tax. In some cases, you may get more time to file your tax return. You may also get more time to pay your income tax.
Tax tips about these rules:
1. Deadline Extensions.
Some members of the military, such as those who serve in a combat zone, can postpone some tax deadlines. If this applies to you, you can get automatic extensions of time to file your tax return and to pay your taxes.
2. Combat Pay Exclusion.
If you serve in a combat zone, certain combat pay you get is not taxable. You won’t need to show the pay on your tax return because combat pay is not part of the wages reported on your Form W-2, Wage and Tax Statement.
If you serve in support of a combat zone, you may qualify for this exclusion.
3. Earned Income Tax Credit or EITC.
If you get nontaxable combat pay, you can include it to figure your EITC. Doing so may boost your credit.
Even if you do, the combat pay stays nontaxable.
4. Moving Expense Deduction.
You may be able to deduct some of your unreimbursed moving costs. This applies if the move is due to a permanent change of station.
5. Uniform Deduction.
You can deduct the costs of certain uniforms that you can’t wear while off duty. This includes the costs of purchase and upkeep.
You must reduce your deduction by any allowance you get for these costs.
6. Signing Joint Returns.
Both spouses normally must sign a joint income tax return. If your spouse is absent due to certain military duty or conditions, you may be able to sign for your spouse.
In other cases when your spouse is absent, you may need a power of attorney to file a joint return.
7. Reservists’ Travel Deduction.
If you’re a member of the U.S. Armed Forces Reserves, you may deduct certain costs of travel on your tax return.
This applies to the unreimbursed costs of travel to perform your reserve duties that are more than 100 miles away from home.
8. ROTC Allowances.
Some amounts paid to ROTC students in advanced training are not taxable. This applies to allowances for education and subsistence. Active duty ROTC pay is taxable.
9. Civilian Life. I
f you leave the military and look for work, you may be able to deduct some job search expenses.
You may be able to include the costs of travel, preparing a resume and job placement agency fees. Moving expenses may also qualify for a tax deduction.
10. Tax Help.
Most military bases offer free tax preparation and filing assistance during the tax filing season. Some also offer free tax help after April 15.
by Jim Magary | Jul 15, 2015 | Tax Help
National Taxpayer Advocate Nina E. Olson today released her statutorily mandated mid-year report to Congress that identifies the priority issues the Taxpayer Advocate Service (TAS) will address during the upcoming fiscal year, including the IRS’s long-term strategic planning, tax-related identity theft and administration of the Patient Protection and Affordable Care Act (ACA), and presents highlights of the recently concluded filing season.
Overview of the Filing Season
The report says the IRS ran a generally successful filing season under difficult circumstances. “With funding down about 17 percent on an inflation-adjusted basis since FY 2010, and with the IRS having had to implement large portions of the [ACA] and the Foreign Account Tax Compliance Act (FATCA) this year without any supplemental funding, sharp declines in taxpayer service were inevitable,” Olson wrote.
Likening the 2015 filing season to “A Tale of Two Cities,” however, the report says: “For the majority of taxpayers who filed their returns and did not require IRS assistance, the filing season was generally successful. For the segment of taxpayers who required help from the IRS, the filing season was by far the worst in memory.”
The report notes the following:
• During the filing season, the IRS processed 126.1 million individual tax returns (compared with 125.6 million last year) and issued 91.8 million refunds (compared with 94.8 million last year).
The average refund amount was $2,711 (compared with $2,686 last year).
• The IRS answered only 37 percent of taxpayer calls routed to customer service representatives overall, and the hold time for taxpayers who got through averaged 23 minutes.
This level of service represents a sharp drop-off from the 2014 filing season, when the IRS answered 71 percent of its calls and hold times averaged about 14 minutes.
• The IRS answered only 39 percent of calls from taxpayers seeking assistance from TAS on the National Taxpayer Advocate (NTA) Toll-Free hotline, and hold times averaged 19 minutes.
TAS serves as the IRS’s “safety net” for taxpayers who are experiencing a financial or systemic hardship as a result of IRS action or inaction.
• The IRS answered only 17 percent of calls from taxpayers who called after being notified that their tax returns had been blocked by the Taxpayer Protection Program (TPP) on suspicion of identity theft, and the hold times averaged about 28 minutes.
In three consecutive weeks during the filing season, the IRS answered fewer than 10 percent of these calls.
• The IRS answered only 45 percent of calls from practitioners who called the IRS on the Practitioner Priority Service line, and hold times averaged 45 minutes.
• The number of “courtesy disconnects” received by taxpayers calling the IRS skyrocketed from about 544,000 in 2014 to about 8.8 million this filing season, an increase of more than 1,500 percent.
The term “courtesy disconnect” is used when the IRS essentially hangs up on a taxpayer because its switchboard is overloaded and cannot handle additional calls.
• The decline in telephone performance can be attributed largely to three factors:
The number of taxpayer calls routed to telephone assistors increased by 41 percent, the number of calls answered by telephone assistors decreased by 26 percent, and the average call duration increased by 10 percent.
by Jim Magary | Jul 15, 2015 | Tax Help
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If you have received an IRS tax Levy, bank levy or wage garnishment notice, as a general rule within 24 hours of receiving your current financial statement we can close and settle your case with the Internal Revenue Service.
There are different types of settlements and we will review with you your different tax settlement options.
If you owe IRS taxes, you’ll have to fill out for IRS form 433F, it must be completely documented along with last three months of bank statements, paystubs and monthly expenses. IRS will ask for other documents as well. Make sure you are honest and accurate on all financial information.
There are various closing methods that IRS will use to take your case off the system.
The Internal Revenue Service usually settles by having your account put in the currently not collectible status, asking to make a IRS payment plan or the submission of an offer in compromise to settle your back tax debt.
Right now, 40% of all IRS collection cases end up being put in the currently uncollectible file and 6.5 million taxpayers are entering payment agreement programs.
Just for the record, IRS levies close to 2 million taxpayers each and every year and files over 700,000 federal tax liens. Upon receiving the last and final notice from Internal Revenue Service you have collection due process rights.
It is very important that taxpayers answer all IRS correspondence because it is time sensitive information.
As former IRS agents we used to issue tax levies so it only makes sense we know the quickest process to get an IRS tax levy released.
As a general rule, once we file the power of attorney and communicate with IRS they will stop all IRS collection action. You will never speak to the Internal Revenue Service as we handle all communication.
One of the benefits of hiring a professional tax firm is knowing the system and how to work within it.
If you are undergoing an IRS tax audit you can have a former IRS audit manager represent your best interest in front of the Internal Revenue Service.
Approximately 1% of all taxpayers get audited by the Internal Revenue Service. Being a former agent I caution those not to play the IRS audit lottery game. Most taxpayers are audited because there’s tax returns have a high DIF number.
If you will back tax debt to the Internal Revenue Service you will required to give IRS a back financial statement along with copies of bank statements, pay stubs and your monthly bills.
When you call our office you will not speak to a salesperson but a true IRS tax professional.
Call us for a free tax consultation.
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by Jim Magary | Jul 15, 2015 | Tax Help
We are “AFFORDABLE” former IRS agents and managers who know the system, permanently can resolve any IRS tax problem, since 1982.
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We can speak to you about settling your tax debt and making payments to Internal Revenue Service.Please be advised that your current financial statement determines the outcome of most cases.
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When you call for a start tax you are speaking to a true professional tax firm. It is important for you to know the difference. Make sure when you’re calling a tax firm you are speaking not to a salesman but a true tax professional.
Tax Levy Garnishments
The Internal Revenue Service levies approximately 1.8 million taxpayers each and every year and this figure includes wage garnishments.
So you know you are not alone.
This happens as a general rule because taxpayers fail to respond to final notices.
It is very important for taxpayers to know that they must follow-up on all IRS mail correspondence because there is no other way to stopping the IRS collection beast called the CADE 2 computer system. The IRS collection system is the most powerful in the free world.
The IRS files close to 700,000 federal tax liens each and every year that will both ruin and destroy your credit.
There are different ways to get your federal tax lien released and once we know more about your case we could speak to you on how to best get this federal tax lien released.
If you have received a final notice of intent to levy from the Internal Revenue Service make sure you follow-up on the 30 day date, if you don’t IRS will take enforcement action.
Before IRS will remove a tax levy or wage garnishment they will need a current and verifiable financial statement. Form 433F. You will not get an IRS tax levy or wage garnishment released unless all tax returns are filed and IRS has a current documented financial statement.
Once we have your current verified financial statement in hand, we can usually get your tax levy or garnishment released and your case close off the IRS enforcement computer within 24 hours.
It is important that your financial statement is completely documented. IRS will require your last pay stubs, your bank statements for the last 3 to 6 months and a copy of all monthly expenses. They will compare that to the national, regional, and localized standard expenses.
IRS will do a thorough review of your current financial statement along with documentation.
IRS usually closes a case by putting a case and tax hardship, having a taxpayer into a monthly installment agreement or telling them they may qualify for an offer in compromise your tax debt settlement.
If you have back tax returns to file, you can have former IRS agents ensure that you are paying the lowest amount of tax allowed by law.
If you going to owe tax, we can file your back tax returns and settle your debt all at the same time.
If you wish to settle your tax that we can have former IRS revenue officers who worked the offer in compromise program settle your tax debt if and only if you were a true candidate for a tax debt settlement called an offer in compromise.
Approximately 40% of all taxpayers who file an offer in compromise get accepted by the Internal Revenue Service however you must be a qualified candidate.
The average settlement on offers in compromise or $6500 per case, please keep in mind this is just the national average.
There is an IRS pre-qualifier tool for the offer in compromise and we urge every taxpayer to walk through that before they file an offer in compromise or for a tax debt settlement.
Call us today for a free initial tax consultation.
Omaha + IRS Help = Tax Problem Services + Affordable + Remove IRS Tax Levies + Unfiled Back Tax Returns Back Tax Debt + Make IRS Payments
by Jim Magary | Jul 14, 2015 | Tax Help
We are an AFFORDABLE professional tax firm that specializes in IRS Back Taxes, A + Rated BBB, in private since 1982. IRS Experts.
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Because of our years of experience at the Internal Revenue Service we know and understand the IRS and State tax systems.
Since 1982 we have been resolving tax debt issues for businesses and individuals and for all types of IRS and state tax matters.
We have over 60 years of direct work experience at the Internal Revenue Service in the local, district, and regional tax offices of the IRS.
We have worked as managers, supervisors and also teaching instructors.
We know every possible solution if you owe back taxes.
As a general source of reference your current financial statement will determined how the government agency will close your case.
Your Current Financial Condition Determines How Your Case Closes
If you owe any IRS or State back taxes of any kind we can work out different tax solutions depending on your current financial condition. Each agency will use their own financial form.
I cannot tell you the importance of your current financial statement. (Form 433F )
Your current financial statement as a general rule will determine the outcome of your case. and other factory keep in mind is that most governments have a national standard expense table that they used to determine the end result of your case.
You can find those national standards directly on our website and we will review them with you when reviewing your financial statement.
IRS Cases = Keep in mind your financial statement will have to be verified by the Internal Revenue Service before they will render any determination on your case.
Included in that financial statement, the 433F, will be the last three months of canceled checks, copy of monthly expenses and a copy of pay stubs.
IRS does a full analysis of your financial statement before rendering a determination.
IRS generally closes case by putting them in hardship or asking for a payment agreement or you have the possibility of settling your debt for pennies on the dollar if you are qualified candidate.
40% of all collection cases are put into a current tax hardship and 6.5 million cases are put into monthly installment agreements.41% of all cases are accepted by IRS for tax debt settlements called offers in compromise.
Keep in mind not everybody is a settlement candidate we carefully review each and every case we get.
We will carefully review your case and give you an expert opinion on whether your case is eligible for the fresh start initiative called the offer in compromise.
Over 41% of all taxpayers and apply for the offer in compromise program get accepted settlements but you must be a true qualified taxpayer for the program. The average settlement for the current year is $6500 per offer in compromise. Keep in mind this is just the national average and varies from case to case.
To find out whether you qualify for the offer in compromise program you can simply call us today or fill out the IRS pre-qualifier tool for the tax debt settlement call the offer in compromise.
FST can file all back tax returns and get this problem behind you so you can move on with your life.
Many times the Internal Revenue Service will not close your case off the system until all back tax returns are current up to date and they feel you are in full compliance. IRS uses leverage of noncompliance to get you compliant with federal tax law.
You want to make sure you file all your back tax returns if not the Internal Revenue Service will file all unfiled, old,past due back tax returns and that will wind up being a nightmare.
IRS has the right to prepare your tax return under 6020 B of the code and they will give you no allowances for exemptions or expenses. As a former IRS agent I have prepared hundreds of tax returns under 6020 b.
If IRS prepares your return you will pay the highest amount of tax allowed by law, you do have the right however the file for an IRS audit reconsideration.
Call us today for a free initial tax consultation speak directly to a true tax expert.
Omaha + Owe Back IRS Taxes + Individual + Business + Settle Payroll Taxes, 941+ Trust Fund + Unfiled Tax Returns + Settle IRS Tax Debt
by Jim Magary | Jul 14, 2015 | Tax Help
We are “AFFORDABLE” Former IRS Agents & Managers that specialize in the removal of IRS tax levies, bank levies, wage garnishment levies & IRS tax settlements.
We know the system, since 1982, A + Rated BBB. IRS Tax Experts! We have over 206 years of professional tax experience.
IRS files 1.9 million tax levies each year and files over 700,000 federal tax liens each year. These numbers vary from year to year.
If the IRS has filed a IRS tax lien or IRS levy, you are not alone.
There is a fast and easy system to go ahead and get your money back from the Internal Revenue Service.
We have a streamlined process to get your money back from IRS.
You will never have to speak to IRS.
There is a different between a bank levy and wage levy.
The IRS bank levy has a 21 day hold or freeze on the account and an IRS wage garnishment levy is an immediate tax levy on your next paycheck.
With the IRS wage garnishment levy certain exemptions may be taken. But it’s a continuous levy and garnishment until you get your levy released by calling the IRS. IRS has the option of not releasing your levy until all tax returns are filed.
The IRS has the largest collection enforcement machine in the world and is called the CADE2.
It is important you always answer IRS mail because it is always sensitive.
As a general rule, 24 hours after receiving your current and verifiable financial statement we can get your IRS tax, bank levy garnishment released and your case closed with the IRS.
It only makes sense as former IRS agents and managers, we know the system inside and out. Just how well do we know the system, we were former IRS teaching instructors.
There’s a very streamlined process too quickly, efficiently and for affordable fees get your IRS tax levy immediately released.
Our former IRS agents have worked in the local, district, and regional tax offices of the Internal Revenue Service and we know the system inside and out.
We cannot only get your bank or wage levy released, we can settle your case all at the same time. When you call our office we will go over the different ways you can settle your tax debt completely with the IRS.
Required for IRS Tax Levy, IRS Bank, IRS Wage Tax Garnishment Releases.
IRS will require a current financial statement before they will release a bank levy, wage garnishment levy.
The IRS financial statement is required documentation before they can close any case.
The IRS financial statement will need to be a form 433F.
The local office does a much more thorough review than that of the ACS unit. There is also a higher pay grade agent working the case. The persons working these cases will be called IRS revenue officers.
IRS will require the last payments based statements, copy them all mostly expenses and a copy of your pay stub to verify your current financial statement.
IRS will compare your financial statement with that of the national averages and regional norms and come up with a plan to close your case off the IRS enforcement computer.
You can find the national standards on our website. It is very important to know the system.As a general rule IRS settles case by putting them into a tax hardship, payment agreements or the recommendation of settling your tax debt to the offer in compromise.
The offer in compromise is a more complicated process and it really takes a skilled tax professional to get an offer accepted. The current wait time for offers in compromise or nine months.
Last year 40% of all IRS collection cases ended up and were currently not collectible file and 6.5 million cases ended up with payment plans. Once again, everything depends on your current financial statement.
Some of our clients are eligible for the new fresh start tax initiative called the offer in compromise to settle their tax debt for pennies on a dollar.
You may want to check out the IRS pre-qualifier tool to make sure that you are an eligible candidate for a tax settlement.
We will review with you the IRS offer in compromise to see if you can settle your debt for pennies on a dollar.
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