Is The IRS Sending You A Rebate Check? Find Out If You Are Eligible
Congress recently passed the Economic Stimulus Act of 2008. It's designed to inject $152 billion into the U.S economy. What does this mean to you? You could be one of the 130 million taxpayers who will receive a rebate check this year. If you own a business, your business can take advantage of two tax breaks: Increased Section 179 Amounts and Bonus Depreciation. For more information relating this this topic, please see my recent article: "How the New Tax Law Can Help Your Business: Two Tax Breaks for Businesses. If you own or invest in real estate, you may find some relief with your "jumbo" loans. ARE YOU GETTING A REBATE CHECK? There are two groups eligible to receive rebates. You can only be in...
How Long Does the IRS Have to Collect Taxes From You?
The statute of limitations on the collection of a tax liability is 10 years. (Internal Revenue Code 6502.) After ten years the debt is wiped out. (continue to read for provisional conditions) There are a number of ways the ten-year period can be extended. 1. The ten-year period does not start until you file your tax return and IRS assesses the tax against you. So NOT filing a return and hiding for 10 years won't get your tax debt wiped out. 2. IRS can extend the ten-year period by suing you in federal court. This does not happen very often, so I am told. 3. If you file an Offer in Compromise, or traveling or living outside of U.S., or involved in a dispute with IRS, or file bankruptcy or...
IRS Tax Debt - Top 3 Ways to Pay Off Your IRS Tax Debt, Fast and Affordable
Harsh Reality: You want the easy way out. But with the IRS, there is none. You have to carefully weigh the pros and cons of every IRS payment plan. If you make the wrong mistake, you could end up losing money instead of saving money. Offer In Compromise: Settle your debt. The "Offer in Compromise" program allows you to settle your debt for a lower amount. Pros: You can save thousands of dollars. You can pay off your debt faster Cons: Extremely difficult to qualify for this program Applying extends the statute of limitations You have to include 20% of the offer and/or a $150 dollar application fee (with the initial offer). And it's nonrefundable. Installment Agreement: Pay monthly. Prove to the IRS...
Deductible Business Travel Expenses Allowed by the IRS
Figuring out which business travel expenses are tax-deductible according to IRS regulations can be tricky, especially if you are running on your own business and you don't want to visit your accountant with every little question. What gets even trickier is trying to decipher whether travel expenses are deductible if you have combined a business trip with some leisure activities. This article outlines the basic travel expenses that you can deduct as a legitimate business expense. But before diving in, I need to give you a definition, and that is the definition of a business day. What Does the IRS Consider a Business Day? Any of these qualify as a business day: - a day on which you travel getting to...
Filing a Tax Deadline Extension With the IRS
Most people don't realize how simple it actually is to get an extension to file with the IRS. Why not extend the deadline from April 15th 2009 to October 15th 2009? It really is fairly simple. Avoiding the April 15th rush is great. Most of the time CPA's and tax companies are completely slammed and don't have time to take detailed looks at their clients statements. When you file for an extension you will be able to meet with a tax professional in a much more relaxed setting. If you don't need a tax professional, it can allow you more time to get your tax documents in order under your own time. To file for an extension with the IRS you will need to file IRS form 4868, which is the automatic extension...
Sensitive Issue: When you owe the IRS and owe Child Support, it's a scary issue. You can't go without paying for your children's needs. But the IRS is breathing down you neck. So who do you pay first? The answer may surprise you. The IRS issued a Wage Levy on me. But I need the income to pay for my Child Support. Will they still continue to Garnish my wages. Yes. The IRS will continue to Garnish your wages. The IRS will leave you enough money to pay for your child support and your basic needs. So watch out. Don't think you can dodge a Wage Garnishment just because you owe child support. Is child support considered earned income? No. For purposes of calculating the earned income credit, the child...
Receive Your Tax Refund Faster With Direct Deposit
The silver lining to doing taxes for most people is getting a tax refund. If you are feeling a money crunch these days, asking the IRS to directly deposit the refund in your bank account will speed things up. When filing your taxes, it is important to remember that the date you file is only the starting process of getting money back from the IRS. If you file at the last moment, like many do, then you need to take into account that your personal return is only one of a few hundred million returns being received by the Internal Revenue Service. There are a couple of ways to speed up the payment of your tax refund. Going with direct deposit definitely will cut the time by as much as two to three weeks...
Lost Last Year's Tax Return?
It happens every year. Just when you get motivated to get rolling on your taxes, you realize you can't find the return you filed last year. Aaaarrrrggg! First off, don't panic if you can't find the return. Yes, you need it to know what you claimed last year and how those claims relate to this years return. All is not lost, however. The IRS will provide you with a copy of your past tax returns if you ask nicely. Here is how to go about it. The IRS will not send you the actual tax return. The agency, however, will send you their version of it. This is known as a tax return transcript and is a layout of the information you provided. It is essentially your return, but doesn't look like it. You can rely...
Invincible? The IRS extends special treatment to no one. Famous movie star Wesley Snipes was charged with Failure to File Tax Returns from 1999 through 2004. Did he get away with it? No! Even with his fancy expensive lawyers, Wesley Snipes received the maximum penalty for not filing his tax returns - 3 years. Singing the Blues: So now you know the IRS can legally send you to jail for not filing.Have you neglected to file your taxes? You may be on the fast track to suffering Wesley Snipe's fate. But don't worry, it's not too to find a solution for your Tax Debt. Stay Above Water: The best way to avoid debt with the IRS is to file your taxes every year.But if you didn't do this, you need to contact...
IRS Tax Debt and the Statute of Limitations - 10 is the Magic Number
How long have you been paying? There are some of you out there who have been in debt to the IRS for years. Maybe you're in a payment plan, but you're just not seeing that debt go down. You ask yourself if you're ever going to pay it off. The IRS-Hitman has good news and bad news. The bad news is you will probably never pay it off. The good news is that the IRS only has a limited time to collect. The IRS is limited by a Statute of Limitations which gives them 10 years to collect on a debt. After the 10 years the debt is erased. Sounds simple, right? There's always a catch... It's not as simple as you might think. Don't think that you can just get away with not paying your debt for 10 years. Mainly...
Whenever you become aware of a tax fraud, report it to the IRS. Why is it so important? For about two years IRS scams have been inundating the internet. Now, straight after the new tax rebate legislation was passed by Congress, new IRS tax scams appeared. By means of unsolicited calls and e-mails from the IRS, phishers tried to steal confidential information from consumers. Such identity theft schemes have been taking place since 2006 and most of the tricks are already known to us: - personalized e-mail salutations, - live phone calls. The ways to cheat the regular Joe are both traditional and recent: 1. Rebate phone calls, 2. Tax refund e-mails, 3. Audit e-mails, 4. Check verification phone calls...
The 4506 tax form is used when taxpayers require a copy of previously filed returns. IRS form 4506 can be used by authorized third parties to obtain tax records for their clients. Third parties include certified public accounts, probate executors, lawyers, banks, credit unions and mortgage lenders. Third parties submitting 4506 tax form requests must abide by Internal Revenue Service codes set forth in section 6103(e). This section of established IRS codes relates to laws of confidentiality and provides guidelines for requesting returns of dissolved corporate entities. Taxpayers and their agents can use IRS 4506 to obtain all types of previously filed tax forms including: 1040, 1120, 941 and 706...
Why You Should Not Miss the Tax Deadlines
Many people delay their tax payments and drag it to the deadline date thus increasing the chances of making mistakes. You can get in huge trouble by doing so in several cases. Your one minor mistake can result in higher tax pay than you were supposed to pay actually. If you are making late payments there are more chances of miscalculations and you may result in losing many schemes offered by the income tax department. Deductions are the major features that many people forget to make use of. As it is complicated to interpret the various deductions associated, usually people fail to make use of them. A good planner takes his time to analyze these benefits earlier. Many people end up paying unnecessary...
As soon as we're able to use reason and logic in our thinking, we're taught that it's never a good solution to run from our problems. The best advice teaches us to face our problems headlong through resolution. This policy is especially important when facing your creditors, especially the IRS. In today's economic climate, creditors are busy beating down doors trying to get clients to make good on delinquent balances. The IRS is one of the largest common creditors to millions of people so this article is going to provide some sound advice on dealing with the IRS for past due tax liabilities. For every person telling you to face your debt problems head on, there are 100 lawyers trying to convince you...
Watch Out For Shady IRS Tax Relief Companies and Their Little Tricks
Sitting Ducks: If you're in federal tax debt, unfortunately the IRS is not the only thing you have to worry about. The business world is filled with tax relief companies who are willing to tell you anything just to get your money. There are some basic things everyone knows when dealing with one of these companies. But here are some things that you probably don't know: Retainer Fees: Any company says the words "Retainer" or "Retainer Fee" is probably only interested in your wallet. A retainer fee is a fee that "holds the services until an actual agreement is made." What does that mean for you? It's not the real charge! The retainer fee allows companies to legally hold the right to change prices to...
IRS Gets Tough on Collection of Large Tax Debts
The Federal budget deficit is big and getting bigger. As you may be aware, our political leadership in both parties is not fond of cutting spending despite what they may say to voters from time to time. Since raising taxes is not popular, a decision has been made to get tough on the taxes that are owed to Uncle Sam. The IRS is now getting very tough on collecting tax debts. Enforcement Action is up and Offer-in-Compromise settlements are way down over the last few years. If you or a client of yours owes delinquent Federal taxes, be prepared for a financial proctology if you want to set up a payment plan or settle with IRS for less than what is owed. An IRS Form 433A or 433F may be required for...
How to Get an IRS Tax Levy Released
The IRS sends the levy notice to the taxpayer's bank, which orders the bank to hold the money in the taxpayer's account(s) for 21 days. The bank is legally obligated to honor the levy. No one can access the funds during this period. The 21-day period provides an opportunity for the taxpayer or his/her representative to contact the IRS and negotiate for a release of the funds controlled by the levy. Once the 21-day period passes, the funds are remitted to the IRS. Any money deposited after the receipt of the levy is not frozen by the levy. The taxpayer should have full access to the deposited funds. The IRS can only get any subsequent funds deposited by a taxpayer after issuing another bank levy...
IRS Tax Deductions and Their Availability
Not all of us are really well versed in the tax related procedures. This is the reason that a number of people are not able to take advantage of even the basic things like IRS tax deductions. These tax deductions can be really helpful and they can bring down the amount that you are supposed to pay to the Internal Revenue Service by a considerable margin. With the help of information provided here, you would be able to grasp the basics of tax deductions. Tax deductions are given of the money which has been spent for certain predefined purposes. The deductions work on the basis of income. This reduces the net taxable income of the person subject to taxes. What this means is that the money on the basis...
Tax Consequences of Foreclosures
As we all know by watching the news, the real estate market is pulling back hard from the days of glory earlier this decade. In fact, many people are losing their homes to foreclosure. Few realize the tax consequences of losing one's home. The Internal Revenue Service looks at things in a strange manner. What you may see as a loss, it sees as a gain. How could this possibly be? Well, the agency takes the view that any loss that relieves you of a financial obligation is actually a monetary gain. Let's look at an example. Assume I own a house. I am carrying a $200,000 mortgage on the home. I run into problems making the payments and the home goes into foreclosure. I eventually am evicted and the bank...
IRS Has a New Tax Refund, See if You Qualify (2006)
The Telephone Excise Tax Refund (TETR) is a one-time payment available on your 2006 federal income tax return. It is designed to refund previously collected long distance telephone taxes. Individuals, businesses and tax-exempt organizations are eligible to request it. Over 159 million filers are eligible to request the refund. Individuals taxpayers have a choice, they can take the standard refund amount between $30 to $60 (based upon their exemptions on their 2006 return OR they can locate old bills and use the actual amount. Even if you don't have to file a return, you can still request the refund. Details can be found at the IRS web site. If you are filing a Schedule C, E, or F you may be...
IRS Statute of Limitations - Do Taxes Ever Expire?
Many Americans believe that an IRS debt is a debt for life and that the tax collector can hound them to the grave. Thankfully, that is not the case and there are statutory time limits on the ability of the IRS to examine and collect taxes. Taxes do expire at some point and in some cases IRS does not get the money they were legally entitled to collect. Basically, IRS has 10 years from the date they send out their first bill to collect the tax. The 10 year rule does not apply to the states. Some, like California have no statute of limitations and the state tax collector can indeed hound you forever. The federal tax collector must get the cash before the clock runs out. For tax assessments made after...
What Is a Tax Levy? Why the IRS Levies Assets
Hopefully you never have to deal with a tax levy imposed by the IRS. Unfortunately, many people do have to face this reality every year. A tax levy is pretty simple to understand. This is a legal process in which your property is seized to satisfy tax debt. In other words, if you owe money to the IRS they can use the power of a tax levy to get it back by seizing your property. Don't get a tax levy confused with a lien. A lien is used as security for debt, whereas a levy is the actual process in which your property is seized. What types of properties are in the line of fire when it comes to a tax levy? If you do not pay your taxes or owe money, the IRS can come after pretty much anything that will...
The Heavy Highway Use Tax - Electronically Filing IRS Form 2290
Have you gotten around to paying the Heavy Vehicle Use Tax yet this year? We all know how much of a pain it can be to meet the bureaucratic demands of doing business in today's world. You've got trucks to run. You've got offices to manage. You've got employees to monitor. Who has the time to go by the office of the Internal Revenue Service and file paperwork for IRS Form 2290? Well, you better find the time, because if there is one branch of government that doesn't take "I'll do it later" as an answer, it is the IRS. But thanks to the e-filing option for IRS Form 2290, which was introduced in 2008, it is a lot easier to fulfill your obligation, keep the powers that be happy, and do your part to keep...
Ya, that's right. The IRS is known for completing what they call a "Substitute Return" for tax payers and sending a notice to let you know how much you owe the Department of the Treasury. The tax client kept saying, "How could they levy my bank account, I never filed the return" It took a lot of explaining before she calmed down. I helped her to understand that when she worked as an Independent Contractor, the company that she provided services for, filed a 1099. On this 1099 they reported that they had paid her $26,000 for non-employee services. I also explained, that more then likely, she had a savings account at the bank where she cashed her checks in amounts over $2,500 (which is reported to the...
IRS Extends Tax Deadlines for Katrina Victims
Following Katrina, the IRS acted quickly to relieve victims of any tax burdens. One step was to extend any tax filing dates to late October and now those dates have been extended again. Emergency Tax Relief Act On September 23, 2005, President Bush signed the Katrina Emergency Tax Relief Act of 2005 into law with massive bipartisan support. The Act contains numerous provisions with one of the most important being the extension of tax filing deadlines. Specifically, victims of Hurricane Katrina have been granted an automatic extension until February 28, 2006. The extension covers the filing of taxes, paying of taxes and other related tax items To benefit from the Tax Relief Act, hurricane victims...
Tax Deduction Checklist For 2009, 2010
Tax Deduction Checklist The best tax deductions checklists are found in three places: Your past years' tax returns; With your tax professional; and Through an online tax website Past Years' Returns Just by looking at the deductions you have been able to take in the past, you will get a good idea of what deductions you can take this year. If you had mortgage interest, real estate taxes, IRA contributions, and charitable contributions last year - you probably have them this year as well. The same is true of medical expenses, various taxes, that safe deposit box you keep, and if you are required to pay certain expenses, like alimony. Finally, any business deductions you have taken in the past, for a...
The New IRS Whistleblower Reward Program Pays Millions For Reporting Tax Fraud
Not many of us know that every year a person pays $1,000 more because someone else is cheating and not paying proper taxes. There is nothing much anyone can do about it including the IRS. The IRS is taking a whole new approach towards the situation and now they have come up with a one million dollars reward for whistleblowers. The IRS gets cheated to the tune of $350 billion every year through non-payment of taxes. If you report tax evaders, then the IRS rewards you well. There is no limit on the amount you can receive for reporting tax frauds. It can be even $100 million. However, there should be truth in what you are reporting and if the person really owes taxes, then the IRS rewards you. For...
IRS Tax Extension Online - It is Easy to E-file For a Tax Extension
Basically, the deadline for filing income tax return is April 15 and everyone is expected to file his or her return before the due date. But not all are capable of filing their returns on time and therefore, there is a fear of getting penalized for late filing. But fortunately, the IRS offers you an opportunity to file for IRS tax extension. You can Efile Tax Extension which is the easiest, fastest and convenient way to get extra time for filing your return. With filing an IRS extension form properly, you will get six more months, until October 15, from the IRS to complete your return without getting a penalty. There are certain things that you should keep in your mind while requesting the IRS for...
Introduction to 1099-MISC Tax Forms
Self-employed people or businesses with sole-proprietorship usually make use of 1099-MISC. The businesses can be either product based or service based. It is a type of IRS tax form, which deals with incomes from miscellaneous sources such as royalties, fees, commissions, legal services, or rents. Money received from prizes and awards also fall under this category. Keep full and complete record of all sorts of income in a financial year. As a non-employee, you need to fill out the form if earning amounts to $600 or more. If you are earning royalties, then $10 is the limit. Amount earned more than $10 needs to be reported. Even if income is lesser than $600, one still needs to report the income in...
Ways to Get IRS Income Tax Refund
IRS income tax refunds can be of significant value to the taxpayers and the private investors as well, provided that the value of the refund will be disclosed to them. This may be also true for broad-based income tax refunds. Taxpayers are pushing for increased disclosure of the IRS income tax refund in general and the associated value they create. Meanwhile, the taxpayers or the beneficiaries of remain in the light regarding the value and be able to discuss the value of the refund respectively. It is true that the value of the IRS income tax refund can vary greatly based on the assumptions made but most IRS income tax refunds already include information about the taxpayer's accrued benefit and his...
IRS Tax Extension Online - Get More Time to File Your Tax Return
Do you wary about your tax preparation time limit or finding another option to get extra more time limits for filing your tax return for 2009? Don't wary about that; just file an IRS tax extension form and get more time limits for your 2009 tax return. The IRS tax extension provides you to more time for file your 2009 tax return and no extra hidden charge or any type of penalty for that. The IRS provides the facility which gives you the relief in the tax return deadline if for any reason you have not paid your tax return in your deadline limit of 15 April, this form provides you an increase to your time limit. Sometimes people file their taxes a little late. How do they do it you ask; they fill out...
Avoid IRS Audit - Top 5 Ways of Avoiding Tax Audits
Everyone has heard horrible stories about people getting audited by the IRS and the IRS wasting a lot of their time for tiny mistakes or the IRS forcing the taxpayer to pay much more in taxes than they already paid. Statistics show that only about 1% of tax returns get audited in a given year, so if you think about it, it is more likely than not that you will get audited in your lifetime. Below are the top ways to keep your risk even lower for audits. 1. Don't prepare your return by hand: Preparing your tax return by hand can easily lead to math errors or a return being too sloppy for the IRS computers to read. If the IRS computer doesn't understand what is on the return then an IRS employee will...
IRS Levy
Under all circumstances when the IRS threatens a levy, you have the right to representation. If you communicate openly with the IRS, levies can be avoided. With cooperation prior to an issued levy, negotiating positions are in good principles. Bank Levy A bank levy is a one-time levy. You are free to use your account in a normal fashion after the bank freezes the amount required by the levy. The bank is not allowed to hand over your money to the IRS right away. The money is on a holding period for 21 days. Once that holding period is concluded the money is sent to the IRS and is irretrievable; any future deposits can be reached only with additional levy action by the IRS. However, if you do not...
Good points and bad points of Selling Short Sale Foreclosure property .
Short sale foreclosure involves property that has been returned to the bank because the mortgagor wasn't able to maintain their loan payments. The bank takes possession of the property and is responsible for its care till it is sold. Short sale foreclosure also pertains to a variety of exchange where banks allow borrowers to sell their home for under is owed on the mortgage note. This option is generally only offered when all other attempts to forestall foreclosure have been exercised. The quantity of money received from the Federal Treasury is predicated on lenders' performance. If bank shoppers are not paying, the Feds can reduce credit limits or cease lending altogether. By law, banks are only...
Getting Rid of Tax Debts in Bankruptcy
Ask ten people if you can discharge tax debts in bankruptcy and you will get ten different answers. The correct answer is that you can, but only if certain tests are met. Getting Rid of Tax Debts in Bankruptcy Bankruptcy is the great financial white board for Americans. It essentially serves as a get out of financial jail card, a chance to start over after we have made a complete and utter mess out of our financial life. Even better, you can refile every seven years. Only in America! While bankruptcy is a tool that can be used to get people out of a tight financial spot, it is not a cure for all of your debts. Student loans are one type of debt that is notoriously difficult to wipe off your books...
Good News - You Can File Late Taxes Online
Two things are guaranteed in life: death, and taxes. If you have been in the working world at all, you know this is true. At least the taxes part. The government faithfully finds you and withholds their projected portion from your check every payday. But what happens if you filelate? Or forget to file at all? There are two things that can happen. A taxpayer that will be receiving a refund only has three years. After this date, you lose any rights to that money. This is also true for the Earned Income Credit. If you are self-employed, you won't receive credit toward Social Security and Disability. I work too hard for my money to let it get lost! If you are on the other side of that coin and owe the...
Preparing Income Taxes - When the IRS Disallows My Schedule C Filing
What happens when your claims regarding small or home-based business expenses on IRS Form 1040 Schedule C, Profit or Loss from Business (Sole Proprietorship) are disallowed? The Internal Revenue Service (IRS) has guidelines that determine whether or not a business activity is carried on for profit. Rulings fundamentally rest on a determination whether or not business activity has been profitable in three of the last five (or the special case; two out of the last seven) tax years (including the current year) reported. If your business fails the "three-years-of-profit" test, the IRS applies Internal Revenue Code (IRC) Section 183 (Activities Not Engaged in for Profit), also known as the "hobby loss...
tax resolution, tax help, tax issues, bank levy, IRS levy
There is always a way out and a better one than that of hiding from the IRS that only adds to upto ones troubles. Here are a few steps you need to follow when you need to file a past return: 1. Find out the last time you filed your tax returns- This will help you determine what documents to accumulate. Ensure you find everything from your W-2 to other tax documents. In case, you are unable to find your past W-2, you need to go to the Social Security Administration. 2. Consult a tax professional- A professional tax consultant would be the best person to help you deal with unfiled taxes, as it involves many complexities. 3. Read the preparation process thoroughly- Until you file your returns you...
Are You One Of The 1.4 Million People The Irs Owes Money Too?
Hurry time is running out. Unclaimed refunds totaling more than $1.3 billion are awaiting nearly 1.4 million people who did not file a federal income tax return for 2006, the Internal Revenue Service announced today. However, to collect the money, a return for 2006 must be filed with the IRS no later than Thursday, April 15, 2010 For 2006 returns, the window closes on April 15, 2010. The law requires that the return be properly addressed, mailed and postmarked by that date. There is no penalty for filing a late return qualifying for a refund. Though back-year tax returns cannot be filed electronically, taxpayers can still speed up their refunds by choosing to have them deposited directly into a...
Using IRS Form 656-L to Make an Offer in Compromise
IF you and the Internal Revenue Service disagree on the amount of your taxes or you do not have enough money to pay back taxes that you owe, you and the Internal Revenue Service might enter into an Offer in Compromise. If accepted, an Offer in Compromise will allow you to settle your tax obligation for less than the Internal Revenue Service says you owe. IRS Form 656-L is used in the situation where you wish to make an Offer in Compromise on your tax obligations because your taxes were incorrectly assessed. You will use Internal Revenue Service Form 656, if your Offer in Compromise is due to the fact that you cannot afford to pay. You can go to the Internal Revenue Service website and download IRS...
It's in the IRS's best interest that you only really think about taxes once a year. That right after April 15th you start forgetting to save those receipts, or noting your mileage, or learning about new deductions to take advantage of. It's even in their best interest that you have back taxes, but forget to file a past income tax return. Why? Because it's easy. And simple. Something you can do only today. And because you can earn money doing so. How? Well, the fact is, most people who neglect to file their past income tax returns fall into a few categories: people who had pressing financial considerations, people who forgot to file an extension, and people who don't earn much money. Now, if you're...
Can't Pay All of Your IRS Taxes Owed? Find Out How to File an IRS Installment Agreement
An IRS installment agreement (IA) allows you to pay your full debt in smaller monthly payments. If you owe the IRS money this is something that you may want to consider if none of the other options are suited to your financial situations. Of course, before you can take advantage of an IA you need to go through the setup process with the IRS. Before you do anything, it is important to note that an monthly payment agreement with the IRS will result in paying more money over the long term. This is due to the fact that the IRS charges interest and penalties on the unpaid portion of your debt. That being said, if you cannot afford any other option this is something that you will simply have to deal with...
IRS Tax Settlement: You have Options
Is an IRS tax settlement something that interests you? This is when you pay the IRS less than what you actually owe in tax debt. Some people think that this is not possible, but it really is. The IRS is more than willing to take less from some people because they figure that it is better than nothing. The question is: are you one of those people who they will work with? Or will you get stuck in a position where an IRS tax settlement is not going to be your best option? The IRS is pretty much in charge of deciding whether or not they will settle your debt. If the feel that you have a case and that you do not have the money needed to pay, you may have a chance at a settlement. But if the IRS finds...
Can I Settle My Back Taxes For Pennies on the Dollar?
It is a good practice to avoid any tax resolution companies who tell you that they can definitely settle your back taxes for "pennies on the dollar." Ideally, you will be making an Offer In Compromise to the Internal Revenue Service. An Offer In Compromise is a deal between you and the Internal Revenue Service that you will settle with them for an amount less than what they are currently asking. An Offer In Compromise is more likely to get an Internal Revenue Service approval when it is a reasonable compromise on behalf of the taxpayer. The Internal Revenue Service must be convinced that this is the fastest, best way for them to get some of the money you owe or they will not approve your Offer In...
Who Do You Have To Issue 1099-MISC Tax Forms To?
January starts off with a blissful anticipation of a glorious new year. It quickly turns into a panic as you try to get your finances in order so you can issue 1099-MISC tax forms. Ah, but who do you have issue them to? The 1099-MISC tax form is an informational tax return of sorts. It tells the IRS who you paid certain monies to during the year. Ostensibly, this information is used to see if the people you report on are reporting the correct amounts of money paid to them. In reality, this process results in tens of millions of 1099-MISC being filed and they are really only looked at if a party is audited. Still, you have to issue them. Since we are talking about a tax issue, you know it isn't going...
4 Steps to Prevent Singing the 1099 Blues
An important deadline is looming for small business owners who use subcontractors to work in their businesses. January 31st is the deadline for the filing of IRS form 1099-Misc for all unincorporated subcontractors who were paid $600 or more and all fees paid to lawyers during the past year. This is often a time of scrambling for small business owners as they try to figure out a) who they need to do 1099's for and b) what the Social Security Number or Employer ID number is for each contractor. Often, a small business owner will hire a subcontractor to get the job done without thinking ahead to that day of reckoning in January where they need to provide the subcontractor and the IRS with pertinent...
When Are 1099-MISC Forms Due?
The dawning of a new year is also the dawning of the beginning of the tax season. One of the first things you need to deal with are 1099 forms. 1099 forms are IRS documents. They are known as information tax returns. You do not have to pay any money with them. Instead, they simply tell the IRS what you paid to who during the year. The “who” is generally an independent contractor of some form or another for the purposes of this article, to wit, the 1099-MISC form. Filling out the form is a fairly simple process. You just total up your payments over the tax year to the various people that you paid, enter their business information and the amount. You need to put together one form for each...
Didn't Get An Expected 1099-MISC Form?
If you are an independent contractor, you should receive a 1099-MISC form from businesses that paid you more than $600 for your services. Ah, but what if you don’t receive one? The 1099-MISC form is misunderstood by most people. It is not a tax return per se. Instead, it is what is known as an information return. The IRS essentially uses it to track how much revenue an independent contractor pulls in from clients. A party that pays $600 or more to an independent contractor must file one of the forms with the IRS. There are exceptions to this $600 figure, but this is the general rule. A person issuing the form must send it out to the contractor by the end of the day on January 31st. They then must...
How To Avoid Taxes
It's often said that there are two things we can depend on in life: death and taxes. The former will certainly remove all worry about the latter, but until it happens, you have to pay taxes. The Chicago crime king of the 1930s, Al Capone, got away with murder -- literally, but it was not paying his taxes that put him in prison. You can learn how to avoid taxes, you should keep it legal! 1. Having your own home based business can be an excellent tax shelter, if managed properly. The things is, when you work from home, many of the expenses that previously were your responsibility, can suddenly become tax-deductible business expenses. Things like heating, lighting, insurance, water, etc, can all be...
How to Reduce the Estate Tax Using the A-B Revocable Living Trust
In a past article I relayed the plight of the widow who stated: "I didn't realize what an A-B Revocable Living Trust meant and that it had to be divided between the survivor and the deceased spouse and that I am limited as to what I can use from his share." She told me that she only learned of this after her husband passed away. This is too late for many (there is a way to collapse an A-B Revocable Living Trust, which we'll talk about in another article). First, what is an A-B Revocable Living Trust? I spend a great deal of time going over this in my free Multi-Media Course, available at Basically it is the splitting of a husband and wife's estate into two shares, his share and her share. The...
Travel Nurse Employment: Tax Advantages of Per Diem Deductions
When you are a travel nurse, then you need to have a pretty good understanding of per diem rates and how they might lower your taxes. Many travel nurses believe that per diem is only a tax benefit that staffing agencies offer and yet, surprisingly, others do not. This misunderstanding about what per diem is and how it may affect your taxes is an important financial issue that you need to understand. How you report your per diem earnings could mean the difference in thousands of dollars in tax savings. Whether you are looking to maximize deductions, reduce taxes, or increase your returns, travel nurses should take the time to learn as much as possible about the IRS per diem tax rules. Certainly, one...