IRS Has Video Help For Filing 2014 Returns

IRS Offers Videos to Help Taxpayers Preparing to File in 2014

WASHINGTON — The Internal Revenue Service is offering taxpayers a number of instructional YouTube videos to help prepare their taxes for the upcoming filing season, which begins on Jan. 31.

Several options are available to help taxpayers prepare for the 2014 tax season and get their refunds as easily as possible. Many software companies are expected to begin accepting tax returns in January and hold those returns until the IRS systems open on Jan. 31. This includes the Free File partners that offer access to their software for free at irs.gov/Free File. The IRS will not process any tax returns before Jan. 31, so there is no advantage to filing on paper before the opening date. Taxpayers will receive their tax refunds much faster by using e-file or Free File with the direct deposit option.

In addition, the IRS has short and informative YouTube videos on a number of tax-related topics in English, Spanish and American Sign Language (ASL). The channels have received nearly 6.5 million views:

• IRS Videos — http://www.youtube.com/irsvideos
• ASL Videos — http://www.youtube.com/IRSvideosASL
• Multilingual Videos —http://www.youtube.com/IRSvideosMultilingua

Specific videos that taxpayers may view to help them get ready over the coming weeks include:

• Do-It-Yourself Free Tax Preparation ─ Helps taxpayers find free help from certified volunteers to electronically file tax returns. Taxpayers interested in helping their own communities can also watch a video to learn aboutbecoming involved in the Volunteer Income Tax Assistance or Tax Counseling for the Elderly programs.
• Do I Have to File a Tax Return? ─ Learn about the requirements for filing a tax return, including income limits and age, and why taxpayers may want to file even if they don't have to.
• How to Get 1040 Forms ─  Provides tips on the quickest way to get the various 1040 forms on IRS.gov.
• Tax Scams ─  Offers some tips on how to protect personal information and avoid becoming a tax scam victim.
• Record-keeping ─  Learn which financial and tax files to keep and how long to keep them.
• Changed Your Name After Marriage or Divorce? ─  Find out what you need to do if you have changed your name before you file your tax return.
• Choosing a Tax Preparer ─ Hear some useful tips for choosing a reputable tax preparer.

The IRS uses social media tools and platforms to share the latest information on tax changes, initiatives, products and services. These social media platforms include the IRS2Go phone application, YouTube, Tumblr, Twitter and Facebook. To protect taxpayer privacy, the IRS only uses social media tools to share public information, not to answer personal tax or account questions. It advises taxpayers to never post confidential information, like a Social Security number, on social media sites. A listing is available on IRS.gov.

FREE Tools to Determine the Business Structure of Your New Business

A message from the CEO of CorpNet talks about the company helping small business owners to start their business, using the best business structure, with the least amount of taxes.

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CorpNet Rolls Out Complimentary Business Consultations for small business
owners and entrepreneurs interested in starting a business!

Our new service is designed to help guide small business owners through some of
the common questions associated with starting and running a business.

We are offering a no-cost complimentary phone business consultations to help
answer common questions that entrepreneurs and small business owners have
related to starting and running their business.

Web visitors can simply click on “Free Business Consultation” from CorpNet.com’s
home page to request their personal phone consultation with one of CorpNet’s
tenured business start up specialists.

“This year, our goal has been to provide our small business clients with a
wealth of free resources to help them incorporate online and build a successful
business. While we offer how-to videos, free guides, and helpful articles on our
website, we know that sometimes you just want to talk one-on-one with an expert.
And that’s exactly what you can schedule with a free business consultation,”
said Nellie Akalp, CorpNet's co-founder and CEO. 

Common questions that the phone consultations can help with include: How can I
open a corporate bank account? How long before my business in incorporated? Can
I be incorporated as of today? When is my annual report due? How can I operate
under different business names?

The business consultations are part of CorpNet’s overall strategy to develop
free, value-add tools for its clients and the small business community. Other
tools available at CorpNet include a Business Structure Wizard, B.I.Z. (a
free corporate compliance concierge tool), free meeting minute templates, and
numerous free guides on starting and growing a business.

CorpNet has helped more than 10,000 businesses form since 2009, helping
small businesses across the country form an LLC or Corporation, file a DBA, keep
their business compliant, and more. The company has made a name for itself for
its personal touch, fast and reliable services, and flexible packages that meet
the needs and budget of any entrepreneur and business.

Nellie Akalp, Chairman, President & CEO
CorpNet Incorporation Services

Help to Resolve Your Tax Problem, Can't Afford an Attorney? Can't Get Help Through Normal Channels?

The Taxpayer Advocate Service (TAS) is an independent organization within the IRS that helps taxpayers who are experiencing unresolved federal tax problems. Here are 10 things every taxpayer should know about TAS:

1. The Taxpayer Advocate Service is your voice at the IRS.

2. You may be eligible for our help if you’ve tried to resolve your tax problem through normal IRS channels and have gotten nowhere, or you believe an IRS procedure just isn't working as it should.

3. We help taxpayers whose problems are causing financial difficulty. This includes businesses, organizations and individuals.

4. We’ll do everything we can to resolve your problem. And our service is always free.

5. If you qualify for our help, you’ll be assigned to one advocate who will be with you at every turn.

6. We have at least one local taxpayer advocate office in every state, the District of Columbia and Puerto Rico. To find your advocate:

• Visit www.irs.gov/advocate
• Call us toll-free at 1-877-777-4778
• Check your local directory
• Look at Pub. 1546, Taxpayer Advocate Service – Your Voice at the IRS, which lists our offices nationwide

7. Our tax toolkit at www.TaxpayerAdvocate.irs.gov has basic tax information, details about tax credits, and more.

8. TAS also handles broader problems that affect many taxpayers. If you know of one of these systemic issues, please report it to us at www.irs.gov/sams.

9. You can get updates at:

• www.facebook.com/YourVoiceAtIRS
• Twitter.com/YourVoiceatIRS
• www.youtube.com/TASNTA

10. TAS is here to help you because when you’re dealing with a tax problem, the worst thing you can do is to do nothing at all!

Tax Tips for Starting a Business; Free Business Structure Wizard

If you're planning on starting a business, the IRS has releases an announcement, which will help you with your business structure.  To receive even more help, you can use the FREE Business Structure Wizard  to help you decide the best business structure which will yield the best tax advantages for you. 

 

Tax Tips if You’re Starting a Business

 

If you plan to start a new business, or you’ve just opened your doors, it is important for you to know your federal tax responsibilities. Here are five basic tips from the IRS that can help you get started.

1. Type of Business. Early on, you will need to decide the type of business you are going to establish. The most common types are sole proprietorship, partnership, corporation, S corporation and Limited Liability Company. Each type reports its business activity on a different federal tax form.

 

2. Types of Taxes. The type of business you run usually determines the type of taxes you pay. The four general types of business taxes are income tax, self-employment tax, employment tax and excise tax.

 

3. Employer Identification Number. A business often needs to get a federal EIN for tax purposes. Check IRS.gov to find out whether you need this number. If you do, you can apply for an EIN online.

 

4. Recordkeeping. Keeping good records will help you when it’s time to file your business tax forms at the end of the year. They help track deductible expenses and support all the items you report on your tax return. Good records will also help you monitor your business’ progress and prepare your financial statements. You may choose any recordkeeping system that clearly shows your income and expenses.

 

5. Accounting Method. Each taxpayer must also use a consistent accounting method, which is a set of rules that determine when to report income and expenses. The most common are the cash method and accrual method. Under the cash method, you normally report income in the year you receive it and deduct expenses in the year you pay them. Under the accrual method, you generally report income in the year you earn it and deduct expenses in the year you incur them. This is true even if you receive the income or pay the expenses in a future year.

For more information, check out the “Business Taxes” page on IRS.gov. From there, review the special section on Starting a Business. Publication 583, Starting a Business and Keeping Records, may also help new business owners with the tax aspects of running a business. The booklet is also available on IRS.gov or by calling 800-TAX-FORM (800-829-3676).

Additional IRS Resources:

• Business Taxes
• Starting a Business
• Employer ID Numbers (EINs)
• Small Business and Self-Employed Tax Center
• Publication 583, Starting a Business and Keeping Records
• Publication 538, Accounting Periods and Methods

What If I Can't Pay My Taxes?

Below is the IRS's exact words for what to do if you can't pay your taxes.  In most cases asking for an Installment Agreement will resolve the problem.  Be aware of additional options which may apply to your particular circumstances.  To learn more about requesting an Installment Agreement, complete: Form 9465, Installment Agreement Request  - If you owe over $25,000 it may be a good idea to consult with a tax professional in your area
 


If you owe tax with your federal tax return, but can't afford to pay it all when you file, the IRS wants you to know your options and help you keep interest and penalties to a minimum.
Here are five tips:

1. File your return on time and pay as much as you can with the return. These steps will eliminate the late filing penalty, reduce the late payment penalty and cut down on interest charges. For electronic and credit card options for paying see www.irs.gov. You may also mail a check payable to the United States Treasury.
   
2. Consider obtaining a loan or paying by credit card. The interest rate and fees charged by a bank or credit card company may be lower than interest and penalties imposed by the Internal Revenue Code.
   
3. Request an installment payment agreement. You do not need to wait for IRS to send you a bill before requesting a payment agreement. Options for requesting an agreement include:
   
   • Using the Online Payment Agreement application at www.irs.gov, and
   • Completing and submitting IRS Form 9465-FS, Installment Agreement
   Request, with your return.
   
   IRS charges a user fee to set up your payment agreement. See www.irs.gov or the installment agreement request form for fee amounts.
   
4. Request an extension of time to pay. For tax year 2011, qualifying individuals may request an extension of time to pay and have the late payment penalty waived as part of the IRS Fresh Start Initiative. To see if you qualify visit www.irs.gov and get form 1127-A, Application for Extension of Time for Payment. But hurry, your application must be filed by April 17, 2012.
   
5. If you receive a bill from the IRS, please contact us immediately to discuss these and other payment options. Ignoring the bill will only compound your problem and could lead to IRS collection action.
   

If you can’t pay in full and on time, the key to minimizing your penalty and interest charges is to pay as much as possible by the tax deadline and the balance as soon as you can. For more information on the IRS collection process go to www.irs.gov or see IRSVideos.gov/OweTaxes.

No Way You Can File by April 15th? Watch Video

Can’t File By April 15? Use Free File to Get
a Six-Month Extension; E-Pay and Payment Agreement Options
Available to People Who Owe Tax

 

IRS YouTube Videos:Need More Time to File Your Tax Return? English
IRS Tax Payment Options English | Spanish | ASL

Doing Your Own Taxes? Mortgage Debt Forgiveness

If you are doing your own taxes and you had a foreclosure in the past year.  You may or may not know what to do with the 1099-C which you received in the mail, or the 1099-A.  When you add this information into your consumer tax software, if you missed any of the instructions, you could end up with a tax bill of anywhere from $20,000 to $70,000 or more.

 

1.  If you have a 1099-C or a 1099-A is may be in your best interest to employ a tax professional to make it go away. 

 

2.  If you believe you can do it on your own, the information from the IRS on the subject is below.

 

 

Important Facts about Mortgage Debt Forgiveness

 

If your lender cancelled or forgave your mortgage debt, you generally have to pay tax on that amount. But there are exceptions to this rule for some homeowners who had mortgage debt forgiven in 2012.
Here are 10 key facts from the IRS about mortgage debt forgiveness:

1. Cancelled debt normally results in taxable income. However, you may be able to exclude the cancelled debt from your income if the debt was a mortgage on your main home.

 

2. To qualify, you must have used the debt to buy, build or substantially improve your principal residence. The residence must also secure the mortgage.

 

3. The maximum qualified debt that you can exclude under this exception is $2 million. The limit is $1 million for a married person who files a separate tax return.

 

4. You may be able to exclude from income the amount of mortgage debt reduced through mortgage restructuring. You may also be able to exclude mortgage debt cancelled in a foreclosure.

 

5. You may also qualify for the exclusion on a refinanced mortgage. This applies only if you used proceeds from the refinancing to buy, build or substantially improve your main home. The exclusion is limited to the amount of the old mortgage principal just before the refinancing.

 

6. Proceeds of refinanced mortgage debt used for other purposes do not qualify for the exclusion. For example, debt used to pay off credit card debt does not qualify.

 

7. If you qualify, report the excluded debt on Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness. Submit the completed form with your federal income tax return.

 

8. Other types of cancelled debt do not qualify for this special exclusion. This includes debt cancelled on second homes, rental and business property, credit cards or car loans. In some cases, other tax relief provisions may apply, such as debts discharged in certain bankruptcy proceedings. Form 982 provides more details about these provisions.

 

9. If your lender reduced or cancelled at least $600 of your mortgage debt, they normally send you a statement in January of the next year. Form 1099-C, Cancellation of Debt, shows the amount of cancelled debt and the fair market value of any foreclosed property.

 

10. Check your Form 1099-C for the cancelled debt amount shown in Box 2, and the value of your home shown in Box 7. Notify the lender immediately of any incorrect information so they can correct the form.

When Doing Your Own Taxes, Don't Forget to......

When doing your own taxes, don’t over look an entry because you don’t understand it, or worst, because you think you understand it and you just move passed it.  Each question has an ending result.

One of the real reasons the IRS doesn’t complain about all the incorrect taxes which are filed by taxpayers preparing their own taxes, is because the software companies have made it easy for you to make mistakes in the IRS favor.

Always remember this when doing your taxes.  It may take just one click to increase your refund by hundreds of dollars.  For the most part, the consumer software does an excellent job on non-technical tax returns, meaning, if you only have one W2 and little else to report, the major consumer software does a great job.

If you have a Schedule A, look at the bottom of the Schedule A 1040 Tax Form.  You will find Line 21 – Job Expenses.  If you understand which items you can write off, then go for it.  If this puzzles you in any way, you need a tax professional. 

This one line includes over 18 different expenses for your work which you were not reimbursed for. Everything from Union Dues to your cell phone because you were on call or was expected to use your cell phone to complete your work, to the cost of your uniforms and or the maintenance of your uniforms.  It includes your still toe boots, if you are required to wear on your job, as well as your helmet and some tools which are used for your work.  If you are an entertainer who needs that special makeup, which holds up under the heavy lighting, then you need a tax professional.  This is not a line that you just want to fluff.

Every year Congress votes in 90 to 150 new tax laws, and the consumer software companies usually always get it right, but they don’t always have the time to program the software to ensure that “you” get it right.

If you have a simple, easy to do, tax return, then by all means, save yourself some money and do your own tax return.  Of course you do know about the tax credits you may qualify for if you earn under a certain amount each year?  Read every question, answer each question, take your time. 

Need a Job? Freelancing, No Fee. How to Get Clients When You Are First Starting

Elance.com  is one of the largest freelancing sits on the Internet. A lot of large companies post their projects on Elance.com. The freelancers provide companies with bids, and companies select from a wide range of freelancers.  There are close to 1,000,000 freelancers on Elance.com

Guru.com is another large freelancing site, with more than 1,000,000 freelancers. Guru.com also has both free and premium memberships based on categories of work which you’re willing to do.

oDesk.com is easy to use and very  popular. There are both hourly and fixed rate jobs.  Hourly jobs are guaranteed and use the latest software to gage a freelancer’s time.  oDesk.com charges 10% of your final payment.  There is no fee to set up an account and to start working.

GAF, which stands for Get a Freelancer.com  has both paid and non paid plans for freelancers.   Be sure to become a verified user.  The site is based in Australia and has well over 1,000,000 verified users.  GAF is one of my favorites, view jobs here to see why.

Just For Fun

Well some people may say Fiverr.com is just for fun, however, there is some serious money exchanging hands over at Fiverr.com.  People I work with earn anywhere from $500 to $800 USD, and most of them live offshore.  What happens is: “the tips” when freelancers do an excellent job, small business owners tip them well.

Almost Free

ifreelance.com Another great freelancing website to visit. This is a very good site for beginners. Jobs are regular but this is fully membership based site, membership starts at $4.69/month.  It may be worth it to pay a small membership fee.  Site is easy to use.

10    Reasons Why You May Want to Consider Freelancing

 1.   Your unemployment is about to run out.  You have been looking for work, but no one is responding to your resume.  Setting a time aside to look for work, until you are too busy with your freelancing jobs, is a doable plan.

 2.   You need money, as of yesterday.

3.   If you get more rejection interview, you will lose it

4.   You have gifted talents which you can market and provide, online. Also creating an affordable service for small business owners in your area, is a profitable idea, which requires very little start up cost.

5.   You have the patients, of Job (If you don’t know who Job is, that’s OK.)

6.   It’s doesn’t bother you to always “allow the client to be right”

7.   You are on your computer all the time anyway, might as well earn some money.

8.   You don’t mind waking up and finding out that, lots of things, online, has changed over night!

9.   You have sold everything you could find, on eBay, and you want to continue earning money

10.   You are self-directed and self-motivated.

Important Tip: 

When just starting out in freelancing, and you want to impress potential clients, even when you have no feedback on the freelance site, you can upload examples of your work so potential clients can see your work.  Let them know in the bid that you are new to the site, and you have experience.  If the freelance site allows, direct potential clients to view “a sample” of your work, on your site, if not learn how to place an image in your profile.

For example, I am a SEO person (search engine optimization) so I built a site where I could show off my SEO skills:  www.t360travelclassifieds.com  Well it backfired, but in a good way.  So, after you find that high paying job, or start to freelance, you will need a break.  You can find discounted travel, coupons, promos and travel deals at www.t360travelclassifieds.com

Sandy

T360Travel Classifieds

What To Do If You Can't Pay All of Your Taxes

The IRS understands that times are hard for many people. And they have release a list of tips on what to do if you can't pay all of your taxes on time. The most important suggestion is to still file your tax return on time. If you don't file on time, regardless if you have the money or not, you will receive a penalty for late filing. This is penalty you don't have to incurr. File on time, there is help, if you can't pay on time.

Tips for Taxpayers Who Can't Pay Their Taxes on Time

If you owe tax with your federal tax return, but can't afford to pay it all when you file, the IRS wants you to know your options and help you keep interest and penalties to a minimum.

Here are five tips:

1. File your return on time and pay as much as you can with the return. These steps will eliminate the late filing penalty, reduce the late payment penalty and cut down on interest charges. For electronic and credit card options for paying see IRS.gov. You may also mail a check payable to the United States Treasury

2. Consider obtaining a loan or paying by credit card. The interest rate and fees charged by a bank or credit card company may be lower than interest and penalties imposed by the Internal Revenue Code.

3. Request an installment payment agreement. You do not need to wait for IRS to send you a bill before requesting a payment agreement. Options for requesting an agreement include:
• Using the Online Payment Agreement application and
• Completing and submitting IRS Form 9465-FS, Installment Agreement Request, with your return
IRS charges a user fee to set up your payment agreement. See www.irs.gov or the installment agreement request form for fee amounts.

4. Request an extension of time to pay. For tax year 2011, qualifying individuals may request an extension of time to pay and have the late payment penalty waived as part of the IRS Fresh Start Initiative. To see if you qualify visit www.irs.gov and get form 1127-A, Application for Extension of Time for Payment. But hurry, your application must be filed by April 17, 2012.

5. If you receive a bill from the IRS, please contact us immediately to discuss these and other payment options. Ignoring the bill will only compound your problem and could lead to IRS collection action.

If you can’t pay in full and on time, the key to minimizing your penalty and interest charges is to pay as much as possible by the tax deadline and the balance as soon as you can. For more information on the IRS collection process go to or see IRSVideos.gov/OweTaxes.