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FROM OUR HELP DESK TO YOURS
Two of the most powerful tools we use in the fight against tax debt are the 8821 and 2848 forms. Together, they allow us to begin the tax resolution process and empower us to represent your interests before the IRS. For many, signing a power of attorney form is a new experience, and the process can be intimidating. So here they are for your review. And of course if you have any questions, we’re here to help!
The 7 Secrets the IRS Doesn't Want You To Know
If you or someone you know (i.e., relatives, friends, partners, employees, subcontractors) is currently facing IRS difficulties, you can find out how to get back on track with these insider secrets to tax relief. Learn how to get a leg up on back taxes and delinquent tax returns so that you can avoid severe IRS penalties and financially debilitating levies on your wages and bank accounts – as well as ultimately get a fresh start. Download this e-book to read more..
How to solve your Tax problem using 4 critical steps
Owing the Internal Revenue Service (IRS) more than you can pay is stressful; however, there are options available that you may not know exist. Whether you’re a contractor, a business owner or a company employee, we understand the confusion that surrounds tax troubles. In this white paper, we’ve compiled four simple steps you can take to help you reduce stress and improve your chances of paying your taxes swiftly. Download this e-book to read more..
7-Minute Guide: IRS Assessment and Collection
An assessment starts with the audit of your tax return. The IRS selects your return and performs and audit, which ensures all income your income is reported, and you’ve complied with all relevant tax laws. If during the course of the audit tax relevant information is discovered that affects your tax return, an assessment is conducted. Download this e-book to read more..
Form 8821: Tax Information Authorization
This form is the first step in representation, and allows us to order your master tax file from the IRS. This is very important as it gives us the opportunity to review your file for errors and to accurately determine the best tax relief solution to appply.
Form 2848: Power of Attorney
HERE ARE SOME
COMMON TAX QUESTIONS
Tax relief is a generalized term that covers dozens of tax laws and program created by the IRS and State taxing authorities. For example, one may have their debts reduced by up to 99% of what owed. Penalty abatement is another commonly used program that allows for a reduction in penalties and in more rare cases a reduction of interest. Tax relief isn’t only limited to individual debts, but also to any business entity. Contact us today to find out which program you qualify for.
There are many different ways in which a business or individual may qualify to receive help. There are three important factors that the IRS looks at when reducing a tax bill and these are: Income, expenses and assets. Another example could be health issues, emotional distress, bad accounting advice, and natural disasters to name a few. To view a more detailed explanation of the different tax laws please view our services tab or call us at (833) 776-8291
Yes, we are licensed to represent clients in all 50 states. Everything with the IRS and State taxing authorities is done through phone, fax and email. Most people don’t know that hiring someone that’s not local to you is in fact cheaper. This is because you don’t have to pay an hourly rate to have representation. Also, 90% of business these days is done through different methods of technology.
Depending on the complexities involved, case completion can vary from one week to 120 days. This mainly depends on how quickly our clients can return documentation and what type of program they qualify for. We have been recognized for having the quickest turn around time in the industry amongst our competitors.
YOU SHOULD KNOW
10 BASIC TAX TERMS
No, this isn’t about your significant other’s emotions. Withholding is the portion of your paycheck that your employer sends directly to the government each pay period as partial payment of your income tax. The withholding amount is determined by the number of allowances you claim on your W-4.
If you claim too many allowances, you may owe money at tax time, and if you significantly underpay your taxes during the year, you may get hit with a penalty when you file your tax return.
Whether you’re single and ready to mingle or joined in matrimony, your relationship status determines how you file and what, if any, tax breaks you’re entitled to such as the amount of your standard deduction.
The most common filing status options are “Single,” “Married Filing Jointly” and “Head of Household,” and the IRS offers a handy cheat sheet to help you determine the appropriate filing status for you. They also make it easy to choose the correct filing status when you use IRS e-file, which also happens to be one of the fastest ways to get your refund.
From maggot farmers to chimney sweepers, there are plenty of disgusting jobs out there that we’ll never want to do. Fortunately, that has nothing to do with gross income.
Gross Income is your total income before accounting for deductions and taxes. Sources of gross income include salary, wages, tips, capital gains, interests, and dividends.
A capital gain is one type of earning that counts toward your gross income. You earn capital gains when the sale price of an asset is higher than the initial purchase price and as noted above, it’s considered a form of income. Say you purchased a vintage car for $3,000, spent $2,000 restoring it, and sold it for $6,000. You made a grand of profit, i.e. capital gains, on that sale – nice job! Before you go spending all that profit, be aware you’ll have to pay taxes on it. The same principle applies if you buy stock for $5,000 and sell it for $6,000.
Deductions are items or expenses subtracted from your income to reduce the amount of income that is subject to being taxed. Whether or not a tax-deductible expense ultimately reduces the income tax you owe depends on several factors. The biggest differentiator in tax deductions is whether a taxpayer decides to take the standard deduction or to itemize their deductions.
An itemized deduction requires taxpayers to keep track of each possible tax-reducing expense throughout the year and is usually limited to a certain percentage of one’s adjusted gross income.
If you’re someone who frequently spends significant amounts on medical care, donations, or other deductible expenses you may be better off itemizing. However, tax law may set certain thresholds in spending that must be exceeded before deductions can be made.
Taxpayers who choose not to itemize deductions on their tax return can take astandard deduction. The amount of the deduction is based on your filing status, age, and whether or not you’re claimed as a dependent on someone else’s tax return.
A charitable contribution is a type of itemized deduction. When it comes to charitable giving, unfortunately acting as your best friend’s wingman isn’t going to save you any money at tax time.
Charitable contributions can earn you an itemized tax deduction when you donate to a qualifying non-profit organization, charity, or private foundation. These gifts are commonly made in the form of cash, but can also include real estate, clothing, appreciated securities or other assets.
To determine if the organization that you have contributed to qualifies for income tax deduction purposes, refer to the IRS’s Exempt Organizations Select Check tool.
Adjusted Gross Income or AGI, is all the personal income you receive over the course of the year, minus certain types of deductions noted above. These include such things as retirement plan contributions, some unreimbursed business expenses, moving costs, and alimony payments.
Tax exemptions are specific amounts that reduce how much of your taxable income is taxable. For Tax Year 2015, each tax exemption is worth $4,000.
Generally, you can claim one exemption for yourself and one for your spouse assuming you’re married. You can also claim one exemption for each dependent. Be aware, while you may think differently, your spouse is never considered your dependent.
Taxable income is calculated by taking your adjusted gross income and subtracting your total exemptions and itemized deductions. It determines your tax liability before tax credits.
Happiness is a tax credit!
A tax credit is a dollar-for-dollar reduction of the amount you owe. For example, you may be eligible for the Plug-in Drive Vehicle credit, between $2,500 & $7,500, if you purchased a car that draws energy from a battery with at least 4 kilowatt hours, was purchased in or after 2010, and began driving it in the year in which you’re claiming the credit.
These credits are designed to reward behaviors that the government deems important.
Knowing your basic tax terminology is the first step toward saving money on your taxes. When you know the terms and the rules, you’ll be able to avoid overpaying on your taxes while maximizing your refund. Be sure to choose direct deposit when you e-file for one of the fastest ways to get your refund.
LET’S GET STARTED!
Having a team of dedicated tax professionals on your side is a powerful position to be in when managing a tax matter with the IRS, and we look forward to helping to put you in a winning position to succeed.
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