Latest findings from the Research, Analysis, and Statistics (RAS) Weekly Tracking Report for individual income tax returns for the week ending June 26, 2009 provided a great many eyeopening statistics, compared to last filing season.
As of June 26, 2009, the IRS received about 135.4 million total individual returns, about 10.7 million returns less than the number of returns received at this time last year. This represents around 96% of the individual income tax returns we expect to receive this year.
The total number of returns received this year is well below the number filed at the comparable time last year—last year’s figures include returns filed to claim the Economic Stimulus payments.
Of the 135.4 million total individual returns, e-filed returns totaled 92.4 million (68%) while paper totaled 43 million (32%). The current e-file rate of 68% is about 8 percentage points higher than at this point in time last year. Filings last year solely to claim the Economic Stimulus payments tended more toward paper.
Total e-file volume of 92.4 million returns is over 5.1 million higher than the comparable weekly number for last year, while total paper returns (43 million) are about 15.8 million lower.
Of the total 92.4 million returns e-filed, online filings (31.7 million or over 34% of total e-filed) are up by about 5.1 million (19%) and practitioner (ERO) e-file returns (60.7 million or just under 66% of total e-file) are down by about 26,000 (about 0.04%) compared to this time last year.
The increase in returns filed on-line may reflect a decrease in the marginal cost of e-filing from a home computer.
The number of Free File (Consortium) returns received so far is around 3 million returns, compared to about 4.7 million returns this time last year—about a 37% decrease, perhaps reflecting increased availability and marketing of free and low cost online tax preparation outside of the IRS Free File program. There will be one more such report—an end of the year wrap-up in December.
Publishers Notes: If you are one of the 10.7 people who have not filed taxes for 2008, there are two things you should know.
1. The IRS knows that you did not file for 2008
2. We can help you with the unfiled tax return, within a matter of days.
Showing posts with label http://taxeswilltravel.com/pdr.htm. Show all posts
Showing posts with label http://taxeswilltravel.com/pdr.htm. Show all posts
Wednesday, September 23, 2009
Thursday, September 10, 2009
Does it cost to set up and IRS Installment Agreement?
Yes.
The IRS charges taxpayers a fee to set up an Installment Agreement. The fee for new Installment Agreements is $105 (this could change) and $52 for agreements where payments are deducted directly from the taxpayers bank account. Taxpayers with extremely low incomes, can apply to pay a lower fee.
Visit www.irs.gov for updated tax codes.
Before you can request an IRS Installment Agreement, you must file all past due tax returns.
It is more cost effective, to have a Tax Preparer or Tax Accountant to complete your past due returns. You can then employ a Tax Attorney or Enrolled Agent to file a bankruptcy or Offer in Compromise.
The IRS charges taxpayers a fee to set up an Installment Agreement. The fee for new Installment Agreements is $105 (this could change) and $52 for agreements where payments are deducted directly from the taxpayers bank account. Taxpayers with extremely low incomes, can apply to pay a lower fee.
Visit www.irs.gov for updated tax codes.
Before you can request an IRS Installment Agreement, you must file all past due tax returns.
It is more cost effective, to have a Tax Preparer or Tax Accountant to complete your past due returns. You can then employ a Tax Attorney or Enrolled Agent to file a bankruptcy or Offer in Compromise.
Wednesday, September 2, 2009
Are My Expenses to Look for a Job Tax Deductible?
Yes, in some cases. According to the IRS's Summertime Tax Tips (2009), the determining factor is, the expenses must be spent on a job search in your "current occupation" Expenses derived from looking for a job in a "new occupation" are not tax deductible.
Expenses for preparing and mailing copies of your resume are tax deductible, if you are seeking a position in your "current occupation"
If you travel to look for a job in your "current occupation" these expenses are usually deductible.
I noticed that your email came from an educational facility.
If you are looking for a job for the first time or after a long period of not being employed, your job search expenses are not deductible under these circumstances.
Expenses for preparing and mailing copies of your resume are tax deductible, if you are seeking a position in your "current occupation"
If you travel to look for a job in your "current occupation" these expenses are usually deductible.
I noticed that your email came from an educational facility.
If you are looking for a job for the first time or after a long period of not being employed, your job search expenses are not deductible under these circumstances.
Thursday, August 27, 2009
5 Major Steps to Avoid your Chances of Being Audited
1. Make sure there are no mathematical errors in your tax return. Check your W2s and 1099s with the income you have placeed onto the 1040.
If there is an error in the tax return, the IRS (computer) will write you a letter explaining the changes. The chances of an IRS human getting involved is high. So check the math.
2. Report ALL income. If you receive a 1099, or not, report the income. Taxpayers who did not report the income, and the client later turned in a 1099 because of their own tax problems, is a story heard too often by the IRS.
Plus, it gets your file sent to the under reporting unit - and that could be the beginning of a very bad experience, depending on the circumstances and amount of the under reported income.
3. Don’t cheat, especially if you are self-employed. The IRS is aware of how taxpayers cheat and often times place the information onto the IRS web site.
There is a entire section on the IRS web site, about how offshore account holders cheat and how the IRS catches them.
4. Don’t get hobby losses confused with business losses. You only have 3 out of 5 years to claim a lost on a business. Your business actions, receipts and expenses usually will expose a taxpayer as operating a hobby, or, a for profit small business.
5. Do not take the word of an unknown tax professional when it comes to tax loopholes. Once you sign the return, regardless of who told you what, you are 100% responsible for what is on your tax return. Don’t believe me? Ask Wesley Snipes!
Note: Past due returns that reduce a taxpayers tax liability by large amounts, I am sure, are fair game for audits. That is one of the reasons, you may want to employ an experienced tax professional to complete your past due returns.
It is not hard to reduce the tax amount owed when re-doing a “Substitute Return” that the IRS prepared because a taxpayer failed to file. The IRS does NOT make any effort to deduct additional deductions that you might be entitled to.
If there is an error in the tax return, the IRS (computer) will write you a letter explaining the changes. The chances of an IRS human getting involved is high. So check the math.
2. Report ALL income. If you receive a 1099, or not, report the income. Taxpayers who did not report the income, and the client later turned in a 1099 because of their own tax problems, is a story heard too often by the IRS.
Plus, it gets your file sent to the under reporting unit - and that could be the beginning of a very bad experience, depending on the circumstances and amount of the under reported income.
3. Don’t cheat, especially if you are self-employed. The IRS is aware of how taxpayers cheat and often times place the information onto the IRS web site.
There is a entire section on the IRS web site, about how offshore account holders cheat and how the IRS catches them.
4. Don’t get hobby losses confused with business losses. You only have 3 out of 5 years to claim a lost on a business. Your business actions, receipts and expenses usually will expose a taxpayer as operating a hobby, or, a for profit small business.
5. Do not take the word of an unknown tax professional when it comes to tax loopholes. Once you sign the return, regardless of who told you what, you are 100% responsible for what is on your tax return. Don’t believe me? Ask Wesley Snipes!
Note: Past due returns that reduce a taxpayers tax liability by large amounts, I am sure, are fair game for audits. That is one of the reasons, you may want to employ an experienced tax professional to complete your past due returns.
It is not hard to reduce the tax amount owed when re-doing a “Substitute Return” that the IRS prepared because a taxpayer failed to file. The IRS does NOT make any effort to deduct additional deductions that you might be entitled to.
Tuesday, August 25, 2009
Is It a Crime Not to File Back Taxes?
Yes. And can be punishable with a 5 figure fine and Federal prison time.
There is a thin line between tax evasion and unfilled tax returns.
Fortunately, the IRS, usually won’t send a taxpayer to jail for unfilled tax returns, however, it would be a good idea to always remember, that “they” can and in some cases, they have. Can you say Ronald Isley or Wesley Snipes?
You can depend on the IRS to provide you with a much needed vacation (behind bars) to help you return to reality and realize, that there are some agencies within the Federal Government who “do” exactly what they promise.
And if you read the Department of Justice’s logs, you will see that the IRS sends more than famous people on extended vacation!
Not to frighten you, just file the past due returns, there are options if you can’t pay the taxes owed.
Personal Note: The IRS practices equal opportunity, they don’t care what color you are, who your mother was, what you do for a living, or how much education you have. They don’t care if your ancestors came to America on a slave ship of with the Pilgrims, their response to unfilled tax returns is the same.
There is a thin line between tax evasion and unfilled tax returns.
Fortunately, the IRS, usually won’t send a taxpayer to jail for unfilled tax returns, however, it would be a good idea to always remember, that “they” can and in some cases, they have. Can you say Ronald Isley or Wesley Snipes?
You can depend on the IRS to provide you with a much needed vacation (behind bars) to help you return to reality and realize, that there are some agencies within the Federal Government who “do” exactly what they promise.
And if you read the Department of Justice’s logs, you will see that the IRS sends more than famous people on extended vacation!
Not to frighten you, just file the past due returns, there are options if you can’t pay the taxes owed.
Personal Note: The IRS practices equal opportunity, they don’t care what color you are, who your mother was, what you do for a living, or how much education you have. They don’t care if your ancestors came to America on a slave ship of with the Pilgrims, their response to unfilled tax returns is the same.
Monday, August 24, 2009
IRS Will Now Get More Infomation on Taxpayers Who Have Swiss Bank Accounts
The IRS Press Announcement came out on August 19, 2009. The party is over, Swiss Bank Account Holders should be concerned, especially if they have not filed past due tax returns or "forgot" to include income in foreigh bank accounts.
IRS to Receive Unprecedented Amount of Information in UBS Agreement
IR-2009-75, Aug. 19, 2009
WASHINGTON — The Internal Revenue Service and the Department of Justice today announced the successful negotiation of an agreement that will result in the IRS receiving an unprecedented amount of information on United States holders of accounts at the Swiss bank UBS.
As a result of this agreement, the IRS will receive substantially all of the accounts that it was interested in when it initiated the John Doe summons against UBS.
Under the agreement, the IRS will submit a treaty request to the Swiss government describing the accounts for which it is requesting information. The Swiss government will then direct UBS to initiate procedures to turn over information on thousands of accounts to the IRS. The IRS will receive information on accounts of various amounts and types, including bank-only accounts, custody accounts in which securities or other investment assets were held and offshore company nominee accounts through which an individual indirectly held beneficial ownership in the accounts.
Also, the agreement retains the U.S. Government’s right, if the results are significantly lower than expected and other measures fail, to seek appropriate judicial remedies, including resuming actions to enforce the John Doe summons.
The agreement involves a number of simultaneous legal actions:
The judicial enforcement of the John Doe summons will be dismissed. While this enforcement motion will be withdrawn, the underlying summons remains in effect.
Upon receiving the treaty request, the Swiss government will direct UBS to notify account holders that their information is included in the IRS treaty request. It is expected that these notices will be sent on a rolling basis with some being sent over the coming weeks and others over the coming months. Receipt of this notice will not by itself preclude the account holder from coming into the IRS under the Voluntary Disclosure Program.
In addition, the Swiss Government has agreed to review and process additional requests for information for other banks regarding their account holders to the extent that such a request is based on a pattern of facts and circumstances equivalent to those of the UBS case.
Information provided to the IRS through this process will be thoroughly examined for all potential civil and criminal tax violations. The IRS will assess any additional tax, interest and a number of applicable penalties. This includes the penalty for the willful failure to file an FBAR. This penalty can be up to 50 percent of the value of the account for each year an FBAR was not filed.
The IRS will also recommend criminal prosecution in those cases where the facts warrant such an action. To date, the IRS and the Department of Justice have successfully prosecuted four United States customers of UBS whose information was provided to the IRS by UBS as part of the Deferred Prosecution Agreement.
Individuals whose information is obtained by the IRS through this process will, by longstanding policy, not be eligible for the voluntary disclosure program.
IRS to Receive Unprecedented Amount of Information in UBS Agreement
IR-2009-75, Aug. 19, 2009
WASHINGTON — The Internal Revenue Service and the Department of Justice today announced the successful negotiation of an agreement that will result in the IRS receiving an unprecedented amount of information on United States holders of accounts at the Swiss bank UBS.
As a result of this agreement, the IRS will receive substantially all of the accounts that it was interested in when it initiated the John Doe summons against UBS.
Under the agreement, the IRS will submit a treaty request to the Swiss government describing the accounts for which it is requesting information. The Swiss government will then direct UBS to initiate procedures to turn over information on thousands of accounts to the IRS. The IRS will receive information on accounts of various amounts and types, including bank-only accounts, custody accounts in which securities or other investment assets were held and offshore company nominee accounts through which an individual indirectly held beneficial ownership in the accounts.
Also, the agreement retains the U.S. Government’s right, if the results are significantly lower than expected and other measures fail, to seek appropriate judicial remedies, including resuming actions to enforce the John Doe summons.
The agreement involves a number of simultaneous legal actions:
The judicial enforcement of the John Doe summons will be dismissed. While this enforcement motion will be withdrawn, the underlying summons remains in effect.
Upon receiving the treaty request, the Swiss government will direct UBS to notify account holders that their information is included in the IRS treaty request. It is expected that these notices will be sent on a rolling basis with some being sent over the coming weeks and others over the coming months. Receipt of this notice will not by itself preclude the account holder from coming into the IRS under the Voluntary Disclosure Program.
In addition, the Swiss Government has agreed to review and process additional requests for information for other banks regarding their account holders to the extent that such a request is based on a pattern of facts and circumstances equivalent to those of the UBS case.
Information provided to the IRS through this process will be thoroughly examined for all potential civil and criminal tax violations. The IRS will assess any additional tax, interest and a number of applicable penalties. This includes the penalty for the willful failure to file an FBAR. This penalty can be up to 50 percent of the value of the account for each year an FBAR was not filed.
The IRS will also recommend criminal prosecution in those cases where the facts warrant such an action. To date, the IRS and the Department of Justice have successfully prosecuted four United States customers of UBS whose information was provided to the IRS by UBS as part of the Deferred Prosecution Agreement.
Individuals whose information is obtained by the IRS through this process will, by longstanding policy, not be eligible for the voluntary disclosure program.
Sunday, August 2, 2009
I just go married and my husband owes back taxes, should I file separetely?
Usually couples pay more taxes when they file separate returns, however, in your case, it may be worth it.
There are restrictions when a couple files separately, such as you can't take the earned income credit, you may have a lower Child Tax Credit, then if you filed jointly and your capital loss limit is cut in half. There are additional restrictions involving higher education expenses and adoption expenses.
Visit www.irs.gov for a complete list of restrictions and clarification of the tax code -
keyword: married filing separate
There are restrictions when a couple files separately, such as you can't take the earned income credit, you may have a lower Child Tax Credit, then if you filed jointly and your capital loss limit is cut in half. There are additional restrictions involving higher education expenses and adoption expenses.
Visit www.irs.gov for a complete list of restrictions and clarification of the tax code -
keyword: married filing separate
Sunday, July 26, 2009
What is a CP-515 and CP-518?
If you received these Letters of Communications from the IRS, it clearly states what each of the Notices represent.
CP-515 and CP-518 are a part of the IRS's CP series of forms sent to taxpayers to inform you of different actions and request.
The CP 515 deals directly with "request for your tax return" and CP-518 is sent when taxpayers don't respond to CP-515 and explains that you have committed a crime by not filing your past due tax return.
If what you really want to know, is how serious these notices are? They are VERY serious and you can contact the IRS at 1 800 829-4477 or contact a tax professional as soon as possible.
CP-515 and CP-518 are a part of the IRS's CP series of forms sent to taxpayers to inform you of different actions and request.
The CP 515 deals directly with "request for your tax return" and CP-518 is sent when taxpayers don't respond to CP-515 and explains that you have committed a crime by not filing your past due tax return.
If what you really want to know, is how serious these notices are? They are VERY serious and you can contact the IRS at 1 800 829-4477 or contact a tax professional as soon as possible.
Thursday, July 23, 2009
What is a SFR? Should I accept it?
A SFR is the IRS's nickname for "Substitute for Return"
When a taxpayer fails to respond to the IRS's communications, or file his/her past due returns, the IRS uses information they have received from your employers and lending institutions, to estimate your tax liability, then files the SFR (Substitute for Return) as your legal tax return; so they can start the collection process.
Before the IRS prepares a Substitute Return for a taxpayer, they send out a letter called "Notice of Proposed Assessment"
The only way to undo a SFR is for a taxpayer to file his/her own tax return.
It should be noted, that when the IRS prepares an SFR (Substitute for Return) for you, they do NOT include tax deductions or credits that you may qualify for.
Not sure how you hear about the SFR, however, if you need to file your own past due returns, which is strongly suggested, then we can help you with past due returns. http://taxeswilltravel.com/pdr.htm
When a taxpayer fails to respond to the IRS's communications, or file his/her past due returns, the IRS uses information they have received from your employers and lending institutions, to estimate your tax liability, then files the SFR (Substitute for Return) as your legal tax return; so they can start the collection process.
Before the IRS prepares a Substitute Return for a taxpayer, they send out a letter called "Notice of Proposed Assessment"
The only way to undo a SFR is for a taxpayer to file his/her own tax return.
It should be noted, that when the IRS prepares an SFR (Substitute for Return) for you, they do NOT include tax deductions or credits that you may qualify for.
Not sure how you hear about the SFR, however, if you need to file your own past due returns, which is strongly suggested, then we can help you with past due returns. http://taxeswilltravel.com/pdr.htm
Wednesday, July 22, 2009
I haven't filed my tax returns in 6 years, the IRS has said nothing, should I call them?
Yes.
Or you can hire a tax professional to call for you. There is a thin line between tax evasion and none-filed tax returns.
Are you employed or self-employed? Were federal taxes withheld from your paycheck? How many dependents do you have? Have you moved 2 or 3 times since you filed your last tax return?
These are all questions that might explain why the IRS has NOT contacted you.
There is a good chance that the IRS owes you. If they didn't, you would have heard from them by now.
File the past due tax returns ASAP.
If you need help contact us through http://taxeswilltravel.com/pdr.htm
Or you can hire a tax professional to call for you. There is a thin line between tax evasion and none-filed tax returns.
Are you employed or self-employed? Were federal taxes withheld from your paycheck? How many dependents do you have? Have you moved 2 or 3 times since you filed your last tax return?
These are all questions that might explain why the IRS has NOT contacted you.
There is a good chance that the IRS owes you. If they didn't, you would have heard from them by now.
File the past due tax returns ASAP.
If you need help contact us through http://taxeswilltravel.com/pdr.htm
Monday, July 20, 2009
I lost my W2, can you help me get a copy?
Taxpayers can call the IRS directly and ask that W2 or 1099 information and any other information reported - be mailed to them.
However, you will need to contact your state tax agency to secure the state withholding amount, if any.
Taxpayers who would rather not speak to the IRS directly, can seek the help of an online tax resolution service for past due returns, such as http://taxeswilltravel.com/pdr.htm
For clarification of tax codes, visit irs.gov
However, you will need to contact your state tax agency to secure the state withholding amount, if any.
Taxpayers who would rather not speak to the IRS directly, can seek the help of an online tax resolution service for past due returns, such as http://taxeswilltravel.com/pdr.htm
For clarification of tax codes, visit irs.gov
Thursday, July 16, 2009
Will filing bankruptcy stop the IRS from levying my bank account?
Filing a Bankruptcy petition puts an immediate STOP to ALL IRS collection actions. This does not mean that your tax liability will be wiped out, however, it does mean that the IRS won't have access to your assets without going through the US Bankruptcy court.
You will need to filed all past due tax returns before filing bankruptcy.
Please contact a bankruptcy attorney for more information.
You will need to filed all past due tax returns before filing bankruptcy.
Please contact a bankruptcy attorney for more information.
I am on disability and I rent rooms in my home - one of the tenants told the IRS that she paid me $500 a month for 2 years, what should I do?
I am thinking that you did not include the rental income on your tax returns for the 2 year period or that you didn't even file returns, because this is a "file your past due tax return" email question?
If you didn't include or file a return for the years in questions, now would be the time to do so. If you did file a return and forgot to include the rental income - file a 1040-X (Amended Return) ASAP.
If you provided more services other then rental of the room, such as laundry, meals, etc, then you would put the income on a Schedule C. Profit and Loss from Business
If you only rented the room with no services included - then you would include the income on a Schedule E - Supplemental Income and Loss OMB No. 1545-0074
(Form 1040) (From rental real estate, royalties, partnerships,
S corporations, estates, trusts, REMICs, etc.)
If you have never filed either of these forms, you may want to think about an experienced tax professional. Especially if you rented more than one room at a time. You will need to divide out the utility cost, insurance and a number of other expenses to arrive at a more correct tax return.
for exact clarification of tax codes, visit irs.gov
We are available to prepare past due tax returns that include Schedule C or Schedule E.
If you didn't include or file a return for the years in questions, now would be the time to do so. If you did file a return and forgot to include the rental income - file a 1040-X (Amended Return) ASAP.
If you provided more services other then rental of the room, such as laundry, meals, etc, then you would put the income on a Schedule C. Profit and Loss from Business
If you only rented the room with no services included - then you would include the income on a Schedule E - Supplemental Income and Loss OMB No. 1545-0074
(Form 1040) (From rental real estate, royalties, partnerships,
S corporations, estates, trusts, REMICs, etc.)
If you have never filed either of these forms, you may want to think about an experienced tax professional. Especially if you rented more than one room at a time. You will need to divide out the utility cost, insurance and a number of other expenses to arrive at a more correct tax return.
for exact clarification of tax codes, visit irs.gov
We are available to prepare past due tax returns that include Schedule C or Schedule E.
Tuesday, July 14, 2009
IRS Summertime Tax Tip
Many parents who work or are looking for work must arrange for care of their children under 13 years of age during the school vacation.
Here are five facts the IRS wants you to know about a tax credit available for child care expenses. The Child and Dependent Care Credit is available for expenses incurred during the lazy hazy days of summer and throughout the rest of the year.
1) The cost of day camp can count as an expense towards the child and dependent care credit.
2) Expenses for overnight camps do not qualify.
3) If your childcare provider is a sitter at your home or a daycare facility outside the home, you'll get some tax benefit if you qualify for the credit.
4) The actual credit can be up to 35 percent of your qualifying expenses, depending upon your income.
5) You may use up to $3,000 of the unreimbursed expenses paid in a year for one qualifying individual or $6,000 for two or more qualifying individuals to figure the credit.
For more information, including rules for claiming this credit for your spouse or a dependent age 13 or over who is not able to care for himself or herself, check out IRS Publication 503, Child and Dependent Care Expenses. This publication is available on the IRS Web site, IRS.gov or by calling 800-TAX-FORM (800-829-3676).
Here are five facts the IRS wants you to know about a tax credit available for child care expenses. The Child and Dependent Care Credit is available for expenses incurred during the lazy hazy days of summer and throughout the rest of the year.
1) The cost of day camp can count as an expense towards the child and dependent care credit.
2) Expenses for overnight camps do not qualify.
3) If your childcare provider is a sitter at your home or a daycare facility outside the home, you'll get some tax benefit if you qualify for the credit.
4) The actual credit can be up to 35 percent of your qualifying expenses, depending upon your income.
5) You may use up to $3,000 of the unreimbursed expenses paid in a year for one qualifying individual or $6,000 for two or more qualifying individuals to figure the credit.
For more information, including rules for claiming this credit for your spouse or a dependent age 13 or over who is not able to care for himself or herself, check out IRS Publication 503, Child and Dependent Care Expenses. This publication is available on the IRS Web site, IRS.gov or by calling 800-TAX-FORM (800-829-3676).
Monday, July 13, 2009
I had a dispute with my tax preparer over the fees for the tax return, she won't return my tax documents, what shall I do?
Practioners must promptly return ALL records of the clent, even if a fee dispute exists. Even if the state law permits retention, the Federal law does not. Especially if the documents must be attached to the tax return.
Also the IRS states that the client must be allowed to access his/her tax documents to review and copy necessary records to comply with the Federal tax obligation.
Practitioner may retain copies of clients records. (Visit irs.gov for exact tax code/law)
It would be in your best interest to resolve the dispute. Try to understand why the Practitioner is charging you the amount that is in dispute. Usually the fee for service goes up when the tax professional has to complete an additional form, (and there are new and additional forms that we must complete by law) or they had to spend time completing bookkeeping services because you gave the information in a folder with no totals.
You response may be, but why didn't she tell me when I meet with her?. And her response may be, she didn't know how much time sorting out the folder or shoebox full of receipts would take.
If you don't have the money. Be honest and tell the tax professional. Being reported to the IRS for holding up a client's tax return is NOT something a tax professional wants to happen.
Also the IRS states that the client must be allowed to access his/her tax documents to review and copy necessary records to comply with the Federal tax obligation.
Practitioner may retain copies of clients records. (Visit irs.gov for exact tax code/law)
It would be in your best interest to resolve the dispute. Try to understand why the Practitioner is charging you the amount that is in dispute. Usually the fee for service goes up when the tax professional has to complete an additional form, (and there are new and additional forms that we must complete by law) or they had to spend time completing bookkeeping services because you gave the information in a folder with no totals.
You response may be, but why didn't she tell me when I meet with her?. And her response may be, she didn't know how much time sorting out the folder or shoebox full of receipts would take.
If you don't have the money. Be honest and tell the tax professional. Being reported to the IRS for holding up a client's tax return is NOT something a tax professional wants to happen.
Monday, July 6, 2009
DOJ and the IRS's answer to unfiled taxes over a period of time
WASHINGTON – Sheri Redekker Barry and Warren Thomas Barry, a wife and husband who are both real estate agents in Fort Myers, Fla., have been sentenced to prison for conspiracy and failure to file tax returns, the Justice Department and Internal Revenue Service (IRS) announced today. U.S. District Court Judge John E. Steele on Monday sentenced Sheri Barry to 36 months in prison and Warren Barry to 24 months in prison. The court also ordered the Barrys to pay restitution in the amount of $555,728.
In March 2009, a federal jury convicted the Barrys of conspiring to impede and impair the IRS. The jury also convicted Sheri Barry of four counts of failure to file for the tax years 2002 through 2005 and convicted her husband of three counts of failure to file for the tax years 2003 through 2005.
According to the indictment and evidence presented at trial, Sheri Barry had not filed a tax return since 1988, and Warren Barry had not filed a tax return since 2000. The Barrys sent multiple letters to the IRS advancing false and frivolous tax defer claims purporting to set forth reasons why the defendants were not required to file returns or pay taxes.
In March 2009, a federal jury convicted the Barrys of conspiring to impede and impair the IRS. The jury also convicted Sheri Barry of four counts of failure to file for the tax years 2002 through 2005 and convicted her husband of three counts of failure to file for the tax years 2003 through 2005.
According to the indictment and evidence presented at trial, Sheri Barry had not filed a tax return since 1988, and Warren Barry had not filed a tax return since 2000. The Barrys sent multiple letters to the IRS advancing false and frivolous tax defer claims purporting to set forth reasons why the defendants were not required to file returns or pay taxes.
My tax preparer made a mistake on my tax return, what should I do?
It depends. Did you sign and mail the tax return?
If so, the error is yours and you will be held responsible should the IRS ask questions.
You can file a 1040 X to correct the error. (Amended U.S. Individual Income Tax Return) Allow the IRS 8 to 12 weeks to process the Form 1040 X
At the bottom of the 1040 X http://www.irs.gov/pub/irs-pdf/f1040x.pdf in Part II, there is a place to explain why you are making the changes on your tax return.
Should you need help with this issue, visit, http://taxeswilltravel.com/pdr.htm
If so, the error is yours and you will be held responsible should the IRS ask questions.
You can file a 1040 X to correct the error. (Amended U.S. Individual Income Tax Return) Allow the IRS 8 to 12 weeks to process the Form 1040 X
At the bottom of the 1040 X http://www.irs.gov/pub/irs-pdf/f1040x.pdf in Part II, there is a place to explain why you are making the changes on your tax return.
Should you need help with this issue, visit, http://taxeswilltravel.com/pdr.htm
Sunday, June 28, 2009
What Can I Do About a Tax Levy, Because of Unfiled Tax Returns?
This one is easy. File your past due tax returns ASAP. As your tax professional to include the Installment Agreement Request if you owe the IRS. Tell your tax professional how much you can pay each month (remember penalties and interest should be added in) and on what day of the month you want to make your payment to the IRS.
This won't get rid of the Levy, however, if/when the IRS accepts your Installment Agreement, (which will cost you around $100) you won't have any bank or wage garnishment surprises, unless you fail to honor your agreement with the IRS (Please visit http://www.irs.gov/ for exact tax codes - there are stipulations)
However, you may not owe the IRS, they may owe you. You never really know, until you complete the past due tax return.
We prepare past due tax returns for years as far back as 2000 for Federal tax returns.
This won't get rid of the Levy, however, if/when the IRS accepts your Installment Agreement, (which will cost you around $100) you won't have any bank or wage garnishment surprises, unless you fail to honor your agreement with the IRS (Please visit http://www.irs.gov/ for exact tax codes - there are stipulations)
However, you may not owe the IRS, they may owe you. You never really know, until you complete the past due tax return.
We prepare past due tax returns for years as far back as 2000 for Federal tax returns.
How long do you have to worry about unfiled tax returns
At least 6 years. Usually it is 6 years from the date that you were suppose to file and didn't.
Not until you have actually filed a return can the 3/10 year limits come into play. 3 year limit on audit and 10 year limit on collection (serious stipulations on 10 year collection limit - visit irs.gov for exact tax code)
With all thing being considered, it would be better to file a past due return as soon as possible.
If you had a death in the immediate family, or you or your spouse were under the care of a doctor - you may qualify for an abatement of penalties (meaning you might not have to pay all of the penalties) You can contact us or your tax professional for more information.
For tax code and tax law, visit irs.gov
Not until you have actually filed a return can the 3/10 year limits come into play. 3 year limit on audit and 10 year limit on collection (serious stipulations on 10 year collection limit - visit irs.gov for exact tax code)
With all thing being considered, it would be better to file a past due return as soon as possible.
If you had a death in the immediate family, or you or your spouse were under the care of a doctor - you may qualify for an abatement of penalties (meaning you might not have to pay all of the penalties) You can contact us or your tax professional for more information.
For tax code and tax law, visit irs.gov
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