by admin | Mar 19, 2012 | IRS Tax Advice, IRS Tax Problem, Tax Help, Tax News, Tax Settlements, Uncategorized
Tax Masters Bankruptcy – Help for Former Clients – 1-866-700-1040
Get real professional tax help or tax resolution from a “A” Rated Tax Firm with over 205 years of professional tax experience and over 60 years with the IRS in the local, district and regional offices of the IRS.
So what is the real story about Tax Masters – Deception, False Advertising, preying of the needs of false hope.
We see it so many times. I am the co-owner and founder of Fresh Start Tax L.L.C. About one half of all our incoming calls are from from taxpayers who have been ripped off by other tax firms claiming impossible of unachievable results.
I see it so many times it is sickening. Taxpayers have been ripped off for thousands of dollars from salespeople claiming to be IRS specialists. In reality these people are no more than hucksters or ripped off artists. Many of these taxpayers have lost everything including their savings and still owe the IRS a boat load of money.
Many of these taxpayers will have a bank levy, wage levy or wage garnishment placed on their wages or bank accounts because of the false and deceptive business practices of the likes of Tax Masters, J.K. Harris and the Tax Lady Roni Deutsche.
The claims Tax Masters were making were just to good to be true but desperate people bought into to this fraudulent advertising practice on settling for pennies on a dollar. While pennies on a dollars can happen you must have your case evaluated to even thinking about a tax debt settlement. There are specific rules for tax settlement. I should know, I was a former IRS Agents and Offer in Compromise specialist.
The Tax Masters television commercials featured CEO Patrick Cox, who claims his company’s staff of former IRS agents and tax professionals have helped countless thousands of taxpayers just like you.
The Tax Masters ad blitz has been a driving force in the company’s soaring corporate revenues. The company, which went public brought in $45.7 million in 2010, a three-fold increase in two years, according to filings with the Securities and Exchange Commission. This was all due to the voluminous advertising budget filled with false hope
Part of the Problem – On the Tax Masters website they were looking for salespeople and not true tax practitioners. There website posts included this verbiage, “Are you a talented closer ready to move into the next income bracket?” call us.
“Previous tax knowledge is not required,” stated the employment ad, which Tax Masters says has since been modified.
At the heart of the problem, says Attorney General Swanson, is a requirement that customers pay an upfront fee ranging between $2000 and $8000. for false promises of salespeople.
If you are looking for a professional tax firm to help with your IRS problem look for the following:
1. The BBB rating of the company
2. Talk directly to the person that will be working your case.
3. Ask for the credentials of the person working your case.
4. Find out how long the company has been in business
5. Find out how many IRS agents they have on staff.
If you are looking for a free tax consultation call us today and hear the truth. 1-866-700-1040
by steve | Mar 3, 2012 | Tax News, Uncategorized
IRS offers different tax credits for all kinds of programs. This tax blog will center around the tax credit and retirement savings.
Tax Credits for Retirement Savings
Eligible Contributions
If you make eligible contributions to an employer-sponsored retirement plan or to an individual retirement arrangement, you can be eligible for a tax credit, depending on your age and income.
The Savers Credit:
1. Income limits.
The Savers Credit, formally known as the Retirement Savings Contributions Credit, applies to individuals with a filing status and 2011 income of:
a. Single, married filing separately, or qualifying widow(er), with income up to $28,250
b. Head of Household with income up to $42,375
c. Married Filing Jointly, with incomes up to $56,500
2. Eligibility requirements for Savers Credit.
To be eligible for the credit you must be at least 18 years of age and you cannot have been a full-time student during the calendar year and cannot be claimed as a dependent on another person’s return. IRS will cross check tax returns for possible audits, so be careful.
3. Credit amount for the Savers Credit.
If you make eligible contributions to a qualified IRA, 401(k) and certain other retirement plans, you may be able to take a credit of up to $1,000 ($2,000 if filing jointly). The credit is a percentage of the qualifying contribution amount, with the highest rate for taxpayers with the least income.
4. Distributions.
When figuring this credit, you must subtract distributions you received from your retirement plans from the contributions you made.
This rule applies to distributions received in the two years before the year the credit is claimed, the year the credit is claimed, and the period after the end of the credit year but before the due date including extensions for filing the return for the credit year.
5. Other tax benefits.
The Retirement Savings Contributions Credit is in addition to other tax benefits you may receive for retirement contributions. For example, most workers at these income levels may deduct all or part of their contributions to a traditional IRA. Contributions to a regular 401(k) plan are not subject to income tax until withdrawn from the plan.
6. Forms.
To claim the credit use Form 8880, Credit for Qualified Retirement Savings Contributions.
For questions, call us today.
by steve | Feb 24, 2012 | IRS Tax Advice, Tax News
Early Distributions from Retirement Plans can have a tax impact so you should plan carefully because it can significantly impact your available income.
Many taxpayers may sometimes find themselves in situations when they need to withdraw money from their retirement plan early. What they may not realize is that that transaction may mean a tax impact when they file their return. This will hurt.
Therefore Tax Planning is important.
Here are some facts from the IRS about the tax implications of an early distribution from your retirement plan or pension plan.
1. Payments you receive from your Individual Retirement Arrangement before you reach age 59 ½ are generally considered early or premature distributions.
2. Early distributions are usually subject to an additional 10 percent tax. This is a killer!
3. Early distributions must also be reported to the IRS. The benefit provider will report this to the IRS.
4. Income distributions that roll over to another IRA or qualified retirement plan are not subject to the additional 10 percent tax. You have to complete the rollover within 60 days after the day you received the distribution.
5. The amount you roll over is generally taxed when your new plan makes a distribution to you or your beneficiary.
6. If you made nondeductible contributions to an IRA and later take early distributions from your IRA, the portion of the distribution attributable to those nondeductible contributions is not taxed.
7. If you received an early distribution from a Roth IRA, the distribution attributable to your prior contributions is not taxed.
8. If you received a distribution from any other qualified retirement plan, generally the entire distribution is taxable unless you made after-tax employee contributions to the plan.
9. There are many exceptions to the additional 10 percent early distribution tax, such as when the distributions are used for the purchase of a first home (up to $10,000), for certain medical or educational expenses, or if you are totally and permanently disabled.
Call us should you have any questions.
by steve | Feb 16, 2012 | Income Tax Preparation, Tax News
Medical and Dental Expenses allowed by the Internal Revenue Service that qualify for tax deductions. Make sure you keep your receipts!
This list includes both Medical and Dental.
If you or your spouse or dependents had significant medical or dental costs in 2011, you may be able to deduct those expenses when you file your tax return
What you should know about the TAX LAW:
1. You must itemize to qualify for medical and dental expenses. This is done on a Form 1040, Schedule A.
2. The deduction is limited.
You can deduct total medical care expenses that exceed 7.5 percent of your adjusted gross income for the year. You figure this on Form 1040, Schedule A. on your tax return.
3. Expenses must have been paid in 2011.
You can include the medical and dental expenses you paid during the year, regardless of when the services were provided. You will need to have good receipts or records to substantiate your expenses if your tax return is audited by the IRS.
4. You cannot deduct reimbursed expenses.
Your total medical expenses for the year must be reduced by any reimbursement. Normally, it makes no difference if you receive the reimbursement or if it is paid directly to the doctor or hospital. You receive the money back no deduction, it is that simple.
5. Whose expenses may qualify.
You may include qualified medical expenses you pay for yourself, your spouse and your dependents. Some exceptions and special rules apply to divorced or separated parents, taxpayers with a multiple support agreement or those with a qualifying relative who is not your child.
6. Types of expenses that qualify for the medical or dental deductions.
You can deduct expenses primarily paid for the diagnosis, cure, mitigation, treatment or prevention of disease, or treatment affecting any structure or function of the body. For drugs, you can only deduct prescription medication and insulin.
You can also include premiums for medical, dental and some long-term care insurance in your expenses. Starting in 2011, you can also include lactation supplies.
7. Transportation costs may qualify for a tax deduction.
You may deduct transportation costs primarily for and essential to medical care that qualify as medical expenses. You can also deduct the actual fare for a taxi, bus, train, plane or ambulance as well as tolls and parking fees.
If you use your car or other vehicle for medical transportation, you can deduct actuall out-of-pocket expenses such as gas and oil, or you can deduct the standard mileage rate for medical expenses, which is 19 cents per mile for 2011.
8. Tax-favored saving for medical expenses Distributions from Health Savings Accounts and withdrawals from Flexible Spending Arrangements may be tax free if used to pay qualified medical expenses including prescription medication and insulin.
9. Should you have any questions call us today and get the answers from Former IRS Agents.
by steve | Feb 15, 2012 | IRS Tax Advice, Tax News
One of the great tax deductions are for those with taxpayers having children. The Federal Government allows credits for those who met certain test requirements. Below find the key points and take advantage and the credits offered.
The Internal Revenue Service – Child Tax Credit
The Child Tax Credit is available to eligible to those taxpayers with qualifying children under age 17.
The IRS would like you to know these facts about the child tax credit. Take full use of these tax credits.
1. Amount With the Child Tax Credit, you may be able to reduce your federal income tax by up to $1,000 for each qualifying child under age 17.
2. Qualifications.
A qualifying child for this credit is someone who meets the qualifying criteria of seven tests:
Age, Relationship, Support, Dependent, Joint Return, Citizenship and lastly Residence.
3. Age.
Test- To qualify, a child must have been under age 17 – age 16 or younger – at the end of 2011.
4. Relationship.
Test- To claim a child for purposes of the Child Tax Credit, the child must be your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister or a descendant of any of these individuals, which includes your grandchild, niece or nephew. An adopted child is always treated as your own child. An adopted child includes a child lawfully placed with you for legal adoption.
5. Support.
Test- In order to claim a child for this credit, the child must not have provided more than half of his/her own support.
6. Dependent.
Test – You must claim the child as a dependent on your federal tax return.
7. Joint return.
Test – The qualifying child can not file a joint return for the year (or files it only as a claim for refund).
8. Citizenship test To meet the citizenship test, the child must be a U.S. citizen, U.S. national or U.S. resident alien.
9. Residence.
Test – The child must have lived with you for more than half of 2011. There are some exceptions to the residence test, found in IRS Publication 972, Child Tax Credit.
10. Limitations.
The credit is limited if your modified adjusted gross income is above a certain amount. The amount at which this phase-out begins varies by filing status. For married taxpayers filing a joint return, the phase-out begins at $110,000. For married taxpayers filing a separate return, it begins at $55,000. For all other taxpayers, the phase-out begins at $75,000. In addition, the Child Tax Credit is generally limited by the amount of the income tax and any alternative minimum tax you owe.
11. Additional Child Tax Credit If the amount of your Child Tax Credit is greater than the amount of income tax you owe, you may be able to claim the Additional Child Tax Credit.
Should you have any questions regarding these credits and are need of former IRS Agents to prepare and audit proof your return call us today.
by steve | Feb 9, 2012 | IRS Tax Advice, Tax News, Uncategorized
Each year Tax Law changes are made and in many cases help the taxpayers. Before filing your tax return check on any and all changes that may effect your tax return.
Stay out of a IRS tax audit and by all means take advantage of all tax credits.
Should you have any questions, call us today. As former IRS Agents we can help navigate you through this process
Tax Law Changes for 2011 Federal Tax Returns
Due date of return.
You can file your federal tax return by April 17, 2012. The due date is April 17, instead of April 15, because April 15 is a Sunday and April 16 is the Emancipation Day holiday in the District of Columbia. Thanks DC!
New forms.
In most cases, you must report your capital gains and losses on the new Form 8949, Sales and Other Dispositions of Capital Assets. Then, you report certain totals from that form on Schedule D (Form 1040). If you had foreign financial assets in 2011, you may have to file the new Form 8938, Statement of Foreign Financial Assets, with your return.
Standard mileage rates.
The 2011 rates for mileage are different for January 1 through June 30 than for July 1 through December 31. For business use of your car, you can deduct 51 cents a mile for miles driven the first half of the year and 55 ½ cents for the second half. Medical and moving mileage are both 19 cents per mile for the early half of the year and 23 ½ cents in the latter half.
Standard deduction and exemptions increased, finally!!!
The standard deduction increased for some taxpayers who do not itemize deductions on IRS Schedule A (Form 1040). The amount depends on your filing status.
The amount you can deduct for each exemption has increased $50 to $3,700 for 2011.
Self-employed health insurance deduction. This deduction is no longer allowed on Schedule SE (Form 1040), but you can still take it on Form 1040, line 29.
Alternative minimum tax (AMT)
This years exemption amount increased. The AMT exemption amount has increased to $48,450 ($74,450 if married filing jointly or a qualifying widow(er); $37,225 if married filing separately).
Health savings accounts (HSAs) and Archer MSAs.
The additional tax on distributions from HSAs and Archer MSAs not used for qualified medical expenses increased to 20 percent. Beginning in 2011, only prescribed drugs or insulin are qualified medical expenses.
Roth IRAs.
If you converted or rolled over an amount from a traditional IRA to a Roth IRA or designated Roth in 2010 and did not elect to report the taxable amount on your 2010 return, you generally must report half of it on your 2011 return and the rest on your 2012 return.
Alternative motor vehicle credit.
This year you can claim the alternative motor vehicle credit for a 2011 purchase only if the vehicle is a new fuel cell motor vehicle.
First-time homebuyer credit.
The credit expired for most taxpayers for 2011. Sadly!
Some military personnel and members of the intelligence community can still claim the credit in 2011 for qualified purchases.
Health coverage tax credit.
Recent legislation changed the amount of this credit, which pays qualified health insurance premiums for eligible individuals and their families. Participants who received the 65 percent tax credit in any month from March to December 2011 may claim an additional 7.5 percent retroactive credit when they file their 2011 tax return.
Should you need tax help or tax preparation by Former IRS agents call us today.
