by steve | Mar 26, 2010 | Tax Help, Uncategorized
(1)
Your name or your company’s name
Your address or your company’s address
Your phone number (optional)
Date
(2)
Internal Revenue Service
[Your local Disclosure Office address; See IRS Disclosure Offices for address list]
Dear Disclosure Officer:
This is a sample letter and outline
This is a request under the Freedom of Information Act.
(4)
I request that a copy of the following documents (identify the documents or information as specifically as possible) be provided to me. I do not wish to inspect the documents first.
(5)
In order to determine my status for the applicability of fees, you should know that I am (insert a suitable description of the requester and the purpose of the request).
[Sample requester descriptions (please choose only one if applicable):
A Media Requester: a representative of the news media affiliated with the XXXX newspaper (magazine, television station, etc.), and this request is made as part of news gathering and not for a commercial use.
An Educational Institution Requester or a Non-Commercial Scientific Institution Requester affiliated with an educational or noncommercial scientific institution, and this request is made for a scholarly or scientific purpose and not for a commercial use.
A Commercial-Use Requester affiliated with a private corporation, seeking information for use in the company’s business.
An ?Other? Requester seeking information for non-commercial or personal use.]
(6)
As proof of identity I am including a photocopy of my driver?s license, notarized declaration, sworn statement, etc. (See ?To Establish Identity and Right to Access?)
(7)
I am willing to pay fees for this request up to a maximum of $XX. If you estimate that the fees will exceed this limit, please inform me first.
(8)
Thank you for your consideration of this request.
Sincerely,
[your signature]
by steve | Mar 26, 2010 | Tax Help, Uncategorized
SO, WHAT DOES IRS SAY THE IMPORTANT ISSUES ARE REGARDING CHARITABLE CONTRIBUTIONS:
When preparing to file your federal tax return, don’t forget your contributions to charitable organizations. If you made qualified donations last year, you may be able to take a tax deduction if you itemize on IRS Form 1040, Schedule A.
The IRS has put together the following 10 tips to help ensure your contributions pay off on your tax return.
Contributions must be made to qualified organizations to be deductible. You cannot deduct contributions made to specific individuals, political organizations and candidates.
You cannot deduct the value of your time or services. Nor can you deduct the cost of raffles, bingo or other games of chance.
If your contributions entitle you to merchandise, goods or services, including admission to a charity ball, banquet, theatrical performance or sporting event, you can deduct only the amount that exceeds the fair market value of the benefit received.
Donations of stock or other property are usually valued at the fair market value of the property. Special rules apply to donation of vehicles.
Clothing and household items donated must generally be in good used condition or better to be deductible.
Regardless of the amount, to deduct a contribution of cash, check, or other monetary gift, you must maintain a bank record, payroll deduction records or a written communication from the organization containing the name of the organization, the date of the contribution and amount of the contribution. For donations by text message, a telephone bill will meet the record-keeping requirement if it shows the name of the organization receiving your donation, the date of the contribution, and the amount given.
To claim a deduction for contributions of cash or property equaling $250 or more you must have a bank record, payroll deduction records or a written acknowledgment from the qualified organization showing the amount of the cash and a description of any property contributed, and whether the organization provided any goods or services in exchange for the gift. One document may satisfy both the written communication requirement for monetary gifts and the written acknowledgment requirement for all contributions of $250 or more.
If your total deduction for all non cash contributions for the year is over $500, you must complete and attach IRS Form 8283, Non Cash Charitable Contributions, to your return.
Taxpayers donating an item or a group of similar items valued at more than $5,000 must also complete Section B of Form 8283, which requires an appraisal by a qualified appraiser.
To deduct a charitable contribution, you must file Form 1040 and itemize deductions on Schedule A.
For more information on charitable contributions, refer to Form 8283 and its instructions, as well as Publication 526, Charitable Contributions. For information on determining value, refer to Publication 561, Determining the Value of Donated Property. These forms and publications are available at IRS.gov or by calling 800-TAX-FORM (800-829-3676).
SHOULD YOU HAVE any other questions, call Fresh Start today.
by steve | Mar 25, 2010 | Tax Help, Uncategorized
IRS Provides Guidance on Identifying Numbers for Tax Return Preparers
WASHINGTON ? The Internal Revenue Service today issued proposed regulations allowing the IRS to require that tax return preparers use Preparer Tax Identification Numbers (PTINs) as the preparer?s identifying number on all tax returns and tax refund claims that they prepare. These regulations when final will implement some of the recommendations in Publication 4832, Return Preparer Review.
?These regulations allow the IRS to better identify and match tax return preparers with the tax forms and claims they prepare. This proposed PTIN system will help us ensure taxpayers receive competent, ethical service from qualified professionals and strengthen the integrity of our tax system,? said IRS Commissioner Doug Shulman.
Under the proposed regulations, the IRS will issue forms, instructions, or other guidance that will require paid tax return preparers to begin using PTINs for all tax returns and refund claims filed after Dec. 31, 2010. Currently, tax return preparers must use either a PTIN or their social security number on tax returns or refund claims that they prepare.
The proposed regulations also provide that tax return preparers must apply for a PTIN, regularly renew the PTIN, and pay associated user fees, which will be described in upcoming guidance. As part of the process, some tax return preparers would also be subject to a tax compliance check, which could include a review of the preparer?s history of compliance with personal and business tax filing and payment obligations.
Tax professionals and other interested parties have until April 26, 2010 to submit comments regarding the attached proposed regulations.
The IRS plans to launch a new system later this year through which all tax return preparers will be required to register, including those who already have a PTIN. Tax return preparers who already have a PTIN will have the number revalidated and reassigned to them through the new system, while tax return preparers who do not have a PTIN will be issued one through the new system.
It is estimated that there are as many as 1.2 million paid tax return preparers.
by steve | Mar 25, 2010 | Tax Help, Uncategorized
Letter 4223 is the Letter IRS sends to let you know your case has been currently closed. HARDSHIP
by steve | Mar 24, 2010 | Tax Help, Uncategorized
Code 1201 is an administrative code that means there is a delay in processing your return.
While your return was selected, something triggered a desk audit, and is an IRS agent will review it. In most situations it causes one-two weeks of an additional processing time.
According to the IRS, 1201 is a “catch all” code when no other code applies. It is generated by the computer so if you call IRS – the agent might not know what exactly triggered the review. It may be random selection as well.
This is not an error and not an audit – this is a very normal IRS process – the assigned IRS agent will review your return and in most situation it will be processed without any problem.
I do not think that you need to worry at this moment – just wait couple weeks and see if the problem resolved.Everything in life that is delayed is a 1201, a life lesson
by steve | Mar 24, 2010 | Tax Help, Uncategorized
Top Frequently Asked Questions
1. What are the tax changes for this year?
2. Is there an age limit on claiming my children as dependents?
3. How much does an unmarried dependent student have to make before he or she has to file an income tax return?
4. If I claim my daughter as a dependent because she is a full-time college student, can she claim herself as a dependent when she files her return?
5. Can I receive a tax refund if I am currently in a payment plan for prior year’s federal taxes?
6. For head of household filing status, do you have to claim a child as a dependent to qualify?
7. What is the American Recovery and Reinvestment Act (ARRA) of 2009?
8. What should I do if I made a mistake on my federal return that I have already filed?
9. What is a split refund?
10. How do I know if I have to file quarterly individual estimated tax payments?
