Need to file your past due returns?
You will need the following information:
Income
(Self/spouse: married filing joint return)
To request past due tax return income information for yourself and/or your spouse call the IRS at (866) 681-4271
You may also request income information by contacting your employer, financial institute, or any other source of income.
Common Types of Income:
Wages, Salaries, Tips, etc. - Form W-2
Certain Gambling Winnings - Form W-2G
Proceeds from Broker & Barter Exchange Transactions - Form 1099-B
Dividends & Distributions - Form 1099-DIV
Interest Income - Form 1099-INT
Miscellaneous Income, Self-employment - Form 1099-MISC
Capital Gains & Losses, Unemployment Compensation - Form 1099-G
Distributions from Pensions and Annuities - Form 1099-R
Proceeds from Real Estate Transactions - Form 1099-S
Alimony Received
Your Self-employment Income Records
If you are pushed for time, you can click on the title of this blog posting and receive online help.
Thursday, October 22, 2009
Friday, October 9, 2009
IRS Reports the Nine Top Mistakes Tax Payers Make When Filing Past Due Returns
The IRS reported that the following errors, are the biggest mistakes that tax payers make when preparing their past due returns.
1. Incorrectly Reporting 1099-MISC Income on Your Past Due Returns
A Form 1099-MISC is used to report payments made in the course of a trade or business to another person or business who is not an employee, also referred to as self-employed. The form is required, among other things, when payments of $600 or more in non-employee compensation, medical and health care payments, or rents are paid. This form is filed by the payer with the IRS and a copy is sent to the person or business receiving the payment. Unlike a W-2, there is no federal income tax, Social Security tax or Medicare tax withheld. The person or business receiving the payment is responsible for paying all taxes.
Self-employed individuals report their income on Form 1040, Schedule C (PDF), Profit or Loss from Business (Sole Proprietorship), or you may qualify to use Form 1040, Schedule C-EZ (PDF), Net Profit from Business (Sole Proprietorship). You should also be aware of Form 1040, Schedule SE (PDF), Self-Employment Tax, which must be filed if net earnings from self-employment are $400 or more. This form is used to figure your Social Security and Medicare tax, which is based on your net self-employment income.
2. Not Reporting Capital Gains/Losses on Past Due Tax Returns
In general, if you had a capital gain or loss, including any capital gain distributions from sales of stock or bonds, you must complete Form 1040 and attach a Schedule D to your tax return. Refer to Publication 550, Investment Income and Expenses for more information.
3. Failing to File a Past Due Return for a Deceased Taxpayer
A personal representative (fiduciary) is responsible for filing certain tax returns for a person who has died, and for the decedent's estate. The personal representative may be required to file the final income tax return of the decedent and any returns not filed for preceding years, the income tax return for the estate, and the estate tax return.
The final return should have the word: "Deceased,” the decedent's name, and the date of death written across the top of the return. Generally, the person who is filing a return for a decedent and claiming a refund must file Form 1310 (PDF), Statement of Person Claiming Refund Due a Deceased Taxpayer, with the return. However, if you are a surviving spouse filing a joint return, or a court appointed or certified personal representative filing an original return for the decedent, you do not have to file Form 1310. Personal representatives must attach to the return a copy of the court certificate showing the appointment.
4. Not Providing Correct Social Security Numbers for All Dependents
Be sure that all dependents’ Social Security numbers (SSNs) and names match their Social Security identification cards. If the SSNs do not match, we will disallow the dependents and any related credits, but you will need to call the Social Security Administration at (800) 772-1213 to correct the mistake.
5. Failing to Sign Your Past Due Tax Return
All returns must be signed. If filing jointly, both taxpayers must sign.
6. Mailing Your Past Due Tax Return to Incorrect Address
Be sure to mail your past due tax return to the IRS address on your notice. Sending your return to another address will delay the processing of your return.
7. Omitting Spouse’s Income on a Jointly Filed Past Due Return
Income from both taxpayers must be included on the return. If you need income information, please call the IRS' toll-free number at (866) 681-4271.
8. Omitting the 10 Percent Early Distribution Tax on Qualified Retirement Plans
In general, any distribution from your IRA, other qualified retirement plan, or modified endowment contract before you reach age 59½ is an early distribution. In general, if you receive an early distribution (including an involuntary cash out) from an IRA, other qualified retirement plan, or modified endowment contract, the part of the distribution included in income generally is subject to an additional 10 percent tax.
9. Incorrectly Reporting Rollover Distributions
A rollover is a tax-free distribution of assets from one qualified retirement plan that is reinvested in another plan or the same plan. Generally, you must complete the rollover within 60 days of receiving the distribution. Any taxable amount not rolled over must be included in income and may be subject to the additional tax on early withdrawals.
1. Incorrectly Reporting 1099-MISC Income on Your Past Due Returns
A Form 1099-MISC is used to report payments made in the course of a trade or business to another person or business who is not an employee, also referred to as self-employed. The form is required, among other things, when payments of $600 or more in non-employee compensation, medical and health care payments, or rents are paid. This form is filed by the payer with the IRS and a copy is sent to the person or business receiving the payment. Unlike a W-2, there is no federal income tax, Social Security tax or Medicare tax withheld. The person or business receiving the payment is responsible for paying all taxes.
Self-employed individuals report their income on Form 1040, Schedule C (PDF), Profit or Loss from Business (Sole Proprietorship), or you may qualify to use Form 1040, Schedule C-EZ (PDF), Net Profit from Business (Sole Proprietorship). You should also be aware of Form 1040, Schedule SE (PDF), Self-Employment Tax, which must be filed if net earnings from self-employment are $400 or more. This form is used to figure your Social Security and Medicare tax, which is based on your net self-employment income.
2. Not Reporting Capital Gains/Losses on Past Due Tax Returns
In general, if you had a capital gain or loss, including any capital gain distributions from sales of stock or bonds, you must complete Form 1040 and attach a Schedule D to your tax return. Refer to Publication 550, Investment Income and Expenses for more information.
3. Failing to File a Past Due Return for a Deceased Taxpayer
A personal representative (fiduciary) is responsible for filing certain tax returns for a person who has died, and for the decedent's estate. The personal representative may be required to file the final income tax return of the decedent and any returns not filed for preceding years, the income tax return for the estate, and the estate tax return.
The final return should have the word: "Deceased,” the decedent's name, and the date of death written across the top of the return. Generally, the person who is filing a return for a decedent and claiming a refund must file Form 1310 (PDF), Statement of Person Claiming Refund Due a Deceased Taxpayer, with the return. However, if you are a surviving spouse filing a joint return, or a court appointed or certified personal representative filing an original return for the decedent, you do not have to file Form 1310. Personal representatives must attach to the return a copy of the court certificate showing the appointment.
4. Not Providing Correct Social Security Numbers for All Dependents
Be sure that all dependents’ Social Security numbers (SSNs) and names match their Social Security identification cards. If the SSNs do not match, we will disallow the dependents and any related credits, but you will need to call the Social Security Administration at (800) 772-1213 to correct the mistake.
5. Failing to Sign Your Past Due Tax Return
All returns must be signed. If filing jointly, both taxpayers must sign.
6. Mailing Your Past Due Tax Return to Incorrect Address
Be sure to mail your past due tax return to the IRS address on your notice. Sending your return to another address will delay the processing of your return.
7. Omitting Spouse’s Income on a Jointly Filed Past Due Return
Income from both taxpayers must be included on the return. If you need income information, please call the IRS' toll-free number at (866) 681-4271.
8. Omitting the 10 Percent Early Distribution Tax on Qualified Retirement Plans
In general, any distribution from your IRA, other qualified retirement plan, or modified endowment contract before you reach age 59½ is an early distribution. In general, if you receive an early distribution (including an involuntary cash out) from an IRA, other qualified retirement plan, or modified endowment contract, the part of the distribution included in income generally is subject to an additional 10 percent tax.
9. Incorrectly Reporting Rollover Distributions
A rollover is a tax-free distribution of assets from one qualified retirement plan that is reinvested in another plan or the same plan. Generally, you must complete the rollover within 60 days of receiving the distribution. Any taxable amount not rolled over must be included in income and may be subject to the additional tax on early withdrawals.
Wednesday, October 7, 2009
The IRS Reminding Tax Payers of New ARRA Tax Deductions, on State, Local & Excise Taxes for New Cars, Motor Homes or Motorcycles
WASHINGTON — With 2010 models arriving in dealer showrooms, the Internal Revenue Service reminds taxpayers that purchasing a new car, light truck, motor home or motorcycle could qualify them for a special deduction for the state and local sales and excise taxes on their 2009 tax returns.
Purchases made before Jan. 1, 2010, will qualify for this deduction under the American Recovery & Reinvestment Act of 2009 (ARRA).
The deduction is limited to the sales and excise taxes and similar fees paid on up to $49,500 of the purchase price of a new vehicle. The deduction is reduced for joint filers with modified adjusted gross incomes (MAGI) between $250,000 and $260,000 and other taxpayers with MAGI between $125,000 and $135,000. Taxpayers with higher incomes do not qualify.
Taxpayers who make qualifying new vehicle purchases this year can estimate the deduction with the help of Worksheet 10 in IRS Publication 919, How Do I Adjust My Withholding? Lines 10a to 10k of the worksheet show how to take into account purchases above the $49,500 limit, as well as the reduced deductions for taxpayers at higher income levels.
The special deduction is available regardless of whether taxpayers itemize deductions on their returns. Taxpayers who do not itemize will add this additional amount to the standard deduction on their 2009 tax return.
For more information, you can visit http://irs.gov and put in your keywords in the top right search box.
Purchases made before Jan. 1, 2010, will qualify for this deduction under the American Recovery & Reinvestment Act of 2009 (ARRA).
The deduction is limited to the sales and excise taxes and similar fees paid on up to $49,500 of the purchase price of a new vehicle. The deduction is reduced for joint filers with modified adjusted gross incomes (MAGI) between $250,000 and $260,000 and other taxpayers with MAGI between $125,000 and $135,000. Taxpayers with higher incomes do not qualify.
Taxpayers who make qualifying new vehicle purchases this year can estimate the deduction with the help of Worksheet 10 in IRS Publication 919, How Do I Adjust My Withholding? Lines 10a to 10k of the worksheet show how to take into account purchases above the $49,500 limit, as well as the reduced deductions for taxpayers at higher income levels.
The special deduction is available regardless of whether taxpayers itemize deductions on their returns. Taxpayers who do not itemize will add this additional amount to the standard deduction on their 2009 tax return.
For more information, you can visit http://irs.gov and put in your keywords in the top right search box.
Monday, October 5, 2009
What if I Don't Have the Money to Pay My Taxes?
You should still file your past due returns, regardless if you have the money to pay the taxes or not.
The reason to file as soon as possible, is to avoid additional penalities, for failure to file -- the IRS or your tax professional can help you with payment options.
The reason to file as soon as possible, is to avoid additional penalities, for failure to file -- the IRS or your tax professional can help you with payment options.
Thursday, October 1, 2009
There is help for tax payers who have been ill, and missed filing past due returns
If you have not filed past due tax returns, and have been ill, (taking prescribed drugs) there is help for you. It is a known fact, that some prescribed drugs can put an individual into a "fog" -- at which time, he/she may not always, remember financial details.
The first step to getting back on track and filing your past due returns, is to contact an online service that specializes in past due tax returns.
The next step is to get in writing from your doctor's office, proof of your illness. What type of illness and when did it start and how long did it last? This short statement could help to save you hundreds of dollars.
The online tax service (that's us) can help you to file your past due tax returns and request that certain penalties be lowered, without you, ever having to leave your home or your office.
As the song goes, "Your Are Not Alone" -- there are millions of Americans who miss the April 15th filing date each year, due to personal illness, serious illness in the immediate family, death in the family, lost of employment or divorce.
Taxpayers, sometimes, believe that because they don't hear from the IRS during the first year of non filed returns, that the problem, may go away on it's own. These same taxpayer, may not file for 2 or 3 more years.
Please know, that if you have reported income from a W2 or 1099-MISC, or interest reported from a savings account or even mortgage interest, sold real estate, stocks or even cashed a high dollar amount check, the IRS is aware of the transactions.
As soon as the "IRS computer" tells the "IRS human" that it couldn't find a tax return for you, the collection process begins and includes penalties and interest from the date that the return was due.
Realize, that eventually, you will hear from the IRS.
It is better if the IRS hears from you first. Even if your own family has given up on you, the IRS still considers you to be a part of the IRS tax paying family.
The first step to getting back on track and filing your past due returns, is to contact an online service that specializes in past due tax returns.
The next step is to get in writing from your doctor's office, proof of your illness. What type of illness and when did it start and how long did it last? This short statement could help to save you hundreds of dollars.
The online tax service (that's us) can help you to file your past due tax returns and request that certain penalties be lowered, without you, ever having to leave your home or your office.
As the song goes, "Your Are Not Alone" -- there are millions of Americans who miss the April 15th filing date each year, due to personal illness, serious illness in the immediate family, death in the family, lost of employment or divorce.
Taxpayers, sometimes, believe that because they don't hear from the IRS during the first year of non filed returns, that the problem, may go away on it's own. These same taxpayer, may not file for 2 or 3 more years.
Please know, that if you have reported income from a W2 or 1099-MISC, or interest reported from a savings account or even mortgage interest, sold real estate, stocks or even cashed a high dollar amount check, the IRS is aware of the transactions.
As soon as the "IRS computer" tells the "IRS human" that it couldn't find a tax return for you, the collection process begins and includes penalties and interest from the date that the return was due.
Realize, that eventually, you will hear from the IRS.
It is better if the IRS hears from you first. Even if your own family has given up on you, the IRS still considers you to be a part of the IRS tax paying family.
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