No, not unless you fail to file in the very near future before the IRS or your state tax agency puts a tax lien on you.
Tax Liens usually end up on your credit report.
Filing your taxes ASAP and informing the IRS using Form 843, ask that penalties be abated because of a major illness. Attached supporting documentation such as copy of hospital bill.
If you need help with preparing your past due returns click on over to: http://taxeswilltravel.com/pdr.htm
Tuesday, June 30, 2009
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
Monday, June 8, 2009
Ops! The IRS Acknowledging That Tax Preparers May Need to be Monitored More Closely
Ops! The IRS is acknowledging that not all tax preparers are ethical, well trained and without misconduct.
The Commissioner will submit recommendations to the Treasury Secretary and the President by the end of the year on ways to increase the proficiency of tax preparers. No group within the tax professional circle will excape review.
It is reported that the first part of leveraging the tax preparer community will be to involve themselves in a fact finding effort about what can be done to increase the proficiency of tax preparers throughout the US. Later this year (2009) a number of open meetings in Washington DC and around the country will be held with constituent groups to receive input and suggestions.
I can’t help but to think that the higher ups already know what they want to do and what changes they want to make. Having town meetings on the subject will help them decide if their ideas will fly or flop.
It is my suggestion that taxpayers as well as tax professionals get involved in this decision making process.
As it stands now, in the state of California, tax preparers have to renew their licenses every year by the end of October. California is way ahead of the curve. They realize more than any other state, that Congress votes on dozens of new tax laws every year. There is no other way for a tax prepared to stay on top of the new tax laws unless they have to complete 20 hours of continuing education each year.
IRS Commissioner Doug Shulman said that tax preparers help Americans with one of their biggest financial transactions each year. He went on to say that, “We must ensure that all preparers are ethical, provide good service and are qualified”
Having been a tax accountant in the state of California for over 10 years, I am use to the strict procedures that we must adhere to in order to keep our tax professional status.
There are a couple of major differences in the state of California tax laws and the federal laws that make a big difference when preparing returns, besides the regular differences in the tax return.
As I use to explain to my tax students. When a taxpayer want to deduct the cost of his non legal tobacco prescription – always remember that it’s OK for the state of California but NOT OK for the Federal.
The other major difference in the State of California’s collection process and the Federal collection process is that the State of California can collect taxes for up to 15 years back. The IRS collects past due taxes up to only 10 years back with some restriction that can prolong the10 year period.
The State of California will stay in your wallet for up to 15 years and then allow you to medically use that strange smelling tobacco to help you get through your illness. (Need a doctor’s prescription for medicinal medicine) However, when the State of California garnishes your wages, they only take 25 percent of your disposable income. Not so with the Feds – the IRS will take, in some cases, what ever amount that is available, leaving you will little or no pay.
Help with Federal back taxes, any state.
http://taxeswilltravel.com/pdr.htm
The Commissioner will submit recommendations to the Treasury Secretary and the President by the end of the year on ways to increase the proficiency of tax preparers. No group within the tax professional circle will excape review.
It is reported that the first part of leveraging the tax preparer community will be to involve themselves in a fact finding effort about what can be done to increase the proficiency of tax preparers throughout the US. Later this year (2009) a number of open meetings in Washington DC and around the country will be held with constituent groups to receive input and suggestions.
I can’t help but to think that the higher ups already know what they want to do and what changes they want to make. Having town meetings on the subject will help them decide if their ideas will fly or flop.
It is my suggestion that taxpayers as well as tax professionals get involved in this decision making process.
As it stands now, in the state of California, tax preparers have to renew their licenses every year by the end of October. California is way ahead of the curve. They realize more than any other state, that Congress votes on dozens of new tax laws every year. There is no other way for a tax prepared to stay on top of the new tax laws unless they have to complete 20 hours of continuing education each year.
IRS Commissioner Doug Shulman said that tax preparers help Americans with one of their biggest financial transactions each year. He went on to say that, “We must ensure that all preparers are ethical, provide good service and are qualified”
Having been a tax accountant in the state of California for over 10 years, I am use to the strict procedures that we must adhere to in order to keep our tax professional status.
There are a couple of major differences in the state of California tax laws and the federal laws that make a big difference when preparing returns, besides the regular differences in the tax return.
As I use to explain to my tax students. When a taxpayer want to deduct the cost of his non legal tobacco prescription – always remember that it’s OK for the state of California but NOT OK for the Federal.
The other major difference in the State of California’s collection process and the Federal collection process is that the State of California can collect taxes for up to 15 years back. The IRS collects past due taxes up to only 10 years back with some restriction that can prolong the10 year period.
The State of California will stay in your wallet for up to 15 years and then allow you to medically use that strange smelling tobacco to help you get through your illness. (Need a doctor’s prescription for medicinal medicine) However, when the State of California garnishes your wages, they only take 25 percent of your disposable income. Not so with the Feds – the IRS will take, in some cases, what ever amount that is available, leaving you will little or no pay.
Help with Federal back taxes, any state.
http://taxeswilltravel.com/pdr.htm
IRS Commissioner Explain Crack down on Tax Cheaters
Commissioner Doug Shulman's Remarks to the OECD, June 2, 2009
Prepared Remarks of IRS Commissioner Doug Shulman Before
the Organization For Economic Co-Operation And Development
Washington, DC, June 2, 2009
Thank you for that gracious introduction and warm welcome. It is an honor to speak with you today about international tax issues, which are of utmost importance at this particular point in time.
First, let me recognize OECD Secretary-General Gurría for his leadership. He has strengthened the bonds of partnership between our member nations as we move forward together in a deeply intertwined global environment.
Indeed, the recent financial crisis has shown us in stark terms how interrelated we are as nations and how we truly operate in a global economy. Some of the trends that we have seen at the IRS further illustrate this point. For example, from 2000 to 2007, the volume of foreign tax credits claimed on tax returns by U.S. businesses increased by 71 percent.
At the same time, the volume of foreign tax credits claimed by individual Americans rose an eye-popping 133 percent. More businesses and individuals are using the global capital markets as a vehicle for investment, illustrating the opportunities presented by the development of capital markets, but also some of the challenges. Regulatory bodies and governments worldwide are wrestling with complex challenges without easy answers.
One broad question being asked is how do we enforce sovereign laws in a global environment? In the IRS’ case, we are focused on international tax issues from two perspectives.
First, in the business context, how do we ensure that taxpayers do not use the complexities of international capital markets to push tax planning beyond acceptable bounds? Second, how can we better ensure that individuals who have assets overseas, but have a U.S. tax obligation pay what they owe?
There is no single silver bullet to solve this set of complex issues. It will take focus and a multi-year strategy to increase our capability to deal with sophisticated corporate and individual taxpayers who operate on a global basis. It will take new laws and regulations, enhanced tools and resources for the IRS, and deeper cooperation among nations.
However, we are at a critical juncture in our journey to step up our game in international tax issues. You can see and sense that real change and real progress have been taking place over the past year.
And it is taking place both at the corporate and individual level as we work to both eliminate the potential for corporations to exploit gray areas in the tax code, and to ensure U.S. individuals with assets overseas are paying their taxes.
In the U.S., international tax issues have moved to center stage. It is a major priority for President Obama, and last month he outlined a bold suite of international legislative proposals.
At the same time, the IRS has been stepping up enforcement measures in this area. We are aggressively tracking down tax evaders hiding their wealth overseas and the promoters who aid and abet these schemes. We are steadily increasing the pressure on offshore financial institutions that facilitate concealment of taxable income by U.S. citizens.
Indeed, I have made international issues a top priority since “Day One” of my tenure as IRS Commissioner and it’s not just because we live in a global world.
In today’s economic environment, it’s more important than ever that the American people feel confident that everyone is playing by the rules and paying the taxes they owe.
On the world stage, the global economic downturn and recent tax evasion scandals have spurred urgent calls for fairness and transparency of the tax system. In April, the G-20 heads of state agreed in a show of unity to act against tax havens that impede legitimate tax enforcement.
The tide is indeed turning and I am proud to lead the IRS’ renewed, refocused and reinvigorated enforcement efforts. All the right pieces are falling into place. And with the continued cooperation and commitment among nations and organizations, such as the OECD and JITSIC, we will create the right climate – an inhospitable climate for tax evasion and offshore secrecy.
And today, I would like to discuss in greater detail what the United States is doing to take us to that next level.
I believe we have a good foundation for the future of international tax administration. But more is required to get us on top of our international game. Let me sketch out some of the key points – what I call the “must haves.”
First, for too many years, the IRS was in the position of not having the resources to go toe-to-toe with taxpayers operating in the international markets. They had deep pockets and could hire a cadre of legal and tax experts. Some observers said, “We were outmanned and outgunned.”
To meet this challenge, we must keep existing personnel current on emerging techniques and hire top examiners, lawyers, economists, special agents and financial specialists who can unravel the sophisticated and complex world of international tax issues.
These enforcement resources can produce real victories, such as the recent Xilinx decision by the 9th Circuit Court of Appeals surrounding a transfer pricing issue. The IRS claimed that Xilinx was liable for taxes and penalties relating to transactions between the company and its Irish subsidiary.
Second, the IRS is an information intensive organization. Data is our lifeblood. It informs all of our activities – from service to enforcement. But it’s not just about getting the data, but rather analyzing and making the best use of it.
For example, we know that those taxpayers who have their taxes withheld and reported to the IRS through third parties are the most compliant. On the other end of the scale, those operating without withholding and reporting are the least compliant.
What’s the lesson here? Simple – better information reporting can boost compliance and we need more of it from foreign countries and foreign financial institutions.
Third, regulatory and legislative changes and enhancements are needed. For example, the Qualified Intermediary program gives the IRS an important line of sight into the activities of U.S. taxpayers at foreign banks and financial institutions. But it’s not problem-free.
We need to shore up the QI program and enhance, improve and strengthen it. Last fall, and in the President’s 2010 fiscal year budget, we issued a set of proposed changes to the QI program which we believe will give us a clearer line of vision and transparency that we need in tax administration.
QI is not the only way to gain transparency. The President’s 2010 budget also calls for additional information reporting on cross-border wire transfers, which will allow the IRS to focus examination resources on the areas of highest risk.
Time is also one of our greatest enemies. Cases involving offshore bank and investment accounts located in bank secrecy jurisdictions take additional time to complete. These cases often present challenges for the IRS in obtaining information from a financial institution that is not subject to U.S. jurisdiction.
Extending the statute of limitations would be an important asset to our efforts, and we hope Congress will pass legislation giving us the time we need to pursue our investigations and other enforcement activities.
These are our challenges. Let me now talk about the solutions, including the proposed set of international measures that President Obama announced.
And before discussing them, I want to again make the distinction between corporations and individuals in the international tax compliance context.
International business transactions can be complex for many reasons, but it’s no secret that multinational corporations engage in sophisticated tax planning. Let me be clear. There are plenty of international tax strategies that are perfectly legal. And many corporations and their legal and tax advisors are genuinely trying to comply with the myriad of international tax laws.
While we won’t always agree about what the law is, or how it applies in particular cases, we recognize that many businesses are trying to get it right. However, we also know that some businesses use the complexity of the tax code and the international capital markets to push the envelope too far.
That is where we have issues, and where we will continue to focus. I have highlighted in the past some of the areas where we have particular interest and these include: transfer pricing, financial instruments, hybrid structures, and withholding taxes.
For individuals with overseas income and assets, it’s much more straightforward. If you are a U.S. taxpayer holding overseas assets, you must pay your taxes or we will be very focused on finding you. It’s as simple as that.
Now, let’s get into the meat of the Administration’s proposals.
As I just noted, some of these proposals deal with techniques used by U.S.-based multinational corporations to reduce their U.S. tax liability. I won’t dwell on these, except to give you a few highlights.
For example, U.S. multinational corporations that invest overseas can take immediate deductions on their U.S. tax returns for certain expenses but defer paying U.S. taxes on the income. The Administration proposes to reform these rules so that companies cannot take the deductions on their U.S. tax returns until they repatriate these offshore profits – with the exception of research and experimentation expenses.
And let me be clear here too. The President is not repealing deferral. The Administration is simply proposing that deductions for expenses should match the deferred income.
Another example of a corporate tax reform proposal is to change the “check-the-box” rules that can make foreign subsidiaries “disappear” for U.S. tax purposes. The Administration’s proposals restrict the use of the check-the-box rules for certain foreign entities. The proposals also would restrict the ability to use foreign tax credits in certain situations. The goal of these proposals is to ensure a level playing field and fairness in the tax code. This Administration is also committed to ensuring U.S. businesses remain competitive globally.
Now, I would like to focus on the President’s proposals aimed at individuals avoiding tax by hiding income in offshore accounts. These proposals will enhance information reporting, increase tax withholding in certain situations, strengthen penalties, and shift the burden of proof to make it harder for offshore account-holders to evade U.S. taxes. They will also provide the enforcement tools we need to crack down on offshore tax abuse.
The core of the Administration’s proposals is to strengthen and expand the Qualified Intermediary system. The overall goal is to make it easy for individuals to comply with U.S. tax law, and make the intermediaries who facilitate the flow of funds across borders our partners in ensuring people pay the right amount of tax. The other part of the proposal is to create disincentives for those U.S. taxpayers who chose to do business with a financial institution that has chosen not to be a QI.
I should note the OECD has also been studying best practices, data templates, outside auditor requirements, and other guidelines for building QI-type networks. We believe the enhanced QI system proposed by the President is a good starting point eventually for a multilateral QI system.
The President’s proposed enhancements to the QI program remind me of what someone once said. “Good laws make it easier to do right and harder to do wrong.”
Although the multi-faceted proposal is complicated, I would summarize it into five key components. First, U.S. financial institutions and QIs will be required to determine the true beneficial owner of a particular account. Similar to the issues the EU has had with enforcing its Savings Directive, we have found that many U.S. taxpayers have formed shell entities to hold offshore accounts.
Second, we want to encourage Non-QIs to become QIs. Thus, the Administration proposes to impose significant withholding tax on transactions involving non-Qualifying Intermediaries. Specifically, it would require U.S. financial institutions and QIs to withhold 20 percent to 30 percent of U.S. payments to individuals or businesses who use non-QIs. To get a refund for the amount withheld, investors must disclose their identities and demonstrate that they’re obeying the law.
In addition, the President’s plan would create a legal presumption against users of non-Qualifying Intermediaries. This is a real game changer. U.S. citizens who send money to foreign banks that don’t cooperate with us will have to provide convincing evidence to prove they’re not breaking U.S. tax laws. Moreover, these presumptions will make it easier for the IRS to demand information and pursue cases against international tax evaders.
Third, the Administration’s plan would increase various reporting requirements. For example, QIs would be required to report worldwide information on their U.S. customers to the same extent that U.S. financial intermediaries do. In addition, U.S. persons, U.S. financial institutions, and QIs will be required to report cross-border transfers to Non-QIs.
On all of the QI issues, let me note that we understand that these changes will require a commitment and resources by financial institutions in the QI program, and we look forward to discussing the proposals with them and ensuring a smooth and orderly implementation.
The fourth component of our plan is to improve the ability of the IRS to successfully prosecute international tax evasion. For example, the proposals would double certain penalties when a taxpayer fails to make a required disclosure of foreign financial accounts.
Fifth, the Administration also asks Congress to extend the current statute of limitations on international tax enforcement from three to six years after the taxpayer submits required information. As discussed earlier, these cases are often highly complex and require additional time to resolve beyond the current three-year statute.
The President is also putting resources behind his plan. The Administration’s proposed FY 2010 budget for the IRS will allow us to make unprecedented investments in the people, tools, and overall coverage in the international arena.
As part of the President’s budget, the IRS would be funded to hire nearly 800 new employees devoted specifically to international enforcement, such as agents, economists, lawyers and specialists.
This would increase the IRS’ ability to crack down on offshore tax avoidance and evasion. It would also give us more resources to devote to complex international corporate tax issues such as transfer pricing and financial products.
Lastly, we have begun a dialogue to take international cooperation to the next level. I believe this should include joint examinations with other nations and working towards joint definitions around information reporting requirements.
Such new cooperation and coordination would, if done right, decrease burden on businesses and individuals trying to comply with the law, and help tax authorities consistently enforce the tax law on a global basis.
In conclusion, let me end where I started. The complexity of global capital markets and global capital flows presents new challenges to regulators worldwide. This is true of financial markets regulators, and also for tax authorities.
There are no simple answers, but there is clearly a desire among policymakers to ensure that businesses and individuals are playing by the rules and paying their fair share of taxes.
At the IRS, we are very committed to adapting and evolving as circumstances evolve. We have a multi-year, highly focused international strategy. The President and Secretary Geithner have given us the tools needed to pursue that strategy, and we have asked Congress for new authorities and laws to make it possible for us to succeed.
And our efforts will depend on a closely coordinated strategy among nations, because this is a challenge that all countries are confronting. We are committed to get it right, and it will remain a top agenda item for us.
Thank you for the opportunity to speak here today. I hope you enjoy the rest of the conference.
Prepared Remarks of IRS Commissioner Doug Shulman Before
the Organization For Economic Co-Operation And Development
Washington, DC, June 2, 2009
Thank you for that gracious introduction and warm welcome. It is an honor to speak with you today about international tax issues, which are of utmost importance at this particular point in time.
First, let me recognize OECD Secretary-General Gurría for his leadership. He has strengthened the bonds of partnership between our member nations as we move forward together in a deeply intertwined global environment.
Indeed, the recent financial crisis has shown us in stark terms how interrelated we are as nations and how we truly operate in a global economy. Some of the trends that we have seen at the IRS further illustrate this point. For example, from 2000 to 2007, the volume of foreign tax credits claimed on tax returns by U.S. businesses increased by 71 percent.
At the same time, the volume of foreign tax credits claimed by individual Americans rose an eye-popping 133 percent. More businesses and individuals are using the global capital markets as a vehicle for investment, illustrating the opportunities presented by the development of capital markets, but also some of the challenges. Regulatory bodies and governments worldwide are wrestling with complex challenges without easy answers.
One broad question being asked is how do we enforce sovereign laws in a global environment? In the IRS’ case, we are focused on international tax issues from two perspectives.
First, in the business context, how do we ensure that taxpayers do not use the complexities of international capital markets to push tax planning beyond acceptable bounds? Second, how can we better ensure that individuals who have assets overseas, but have a U.S. tax obligation pay what they owe?
There is no single silver bullet to solve this set of complex issues. It will take focus and a multi-year strategy to increase our capability to deal with sophisticated corporate and individual taxpayers who operate on a global basis. It will take new laws and regulations, enhanced tools and resources for the IRS, and deeper cooperation among nations.
However, we are at a critical juncture in our journey to step up our game in international tax issues. You can see and sense that real change and real progress have been taking place over the past year.
And it is taking place both at the corporate and individual level as we work to both eliminate the potential for corporations to exploit gray areas in the tax code, and to ensure U.S. individuals with assets overseas are paying their taxes.
In the U.S., international tax issues have moved to center stage. It is a major priority for President Obama, and last month he outlined a bold suite of international legislative proposals.
At the same time, the IRS has been stepping up enforcement measures in this area. We are aggressively tracking down tax evaders hiding their wealth overseas and the promoters who aid and abet these schemes. We are steadily increasing the pressure on offshore financial institutions that facilitate concealment of taxable income by U.S. citizens.
Indeed, I have made international issues a top priority since “Day One” of my tenure as IRS Commissioner and it’s not just because we live in a global world.
In today’s economic environment, it’s more important than ever that the American people feel confident that everyone is playing by the rules and paying the taxes they owe.
On the world stage, the global economic downturn and recent tax evasion scandals have spurred urgent calls for fairness and transparency of the tax system. In April, the G-20 heads of state agreed in a show of unity to act against tax havens that impede legitimate tax enforcement.
The tide is indeed turning and I am proud to lead the IRS’ renewed, refocused and reinvigorated enforcement efforts. All the right pieces are falling into place. And with the continued cooperation and commitment among nations and organizations, such as the OECD and JITSIC, we will create the right climate – an inhospitable climate for tax evasion and offshore secrecy.
And today, I would like to discuss in greater detail what the United States is doing to take us to that next level.
I believe we have a good foundation for the future of international tax administration. But more is required to get us on top of our international game. Let me sketch out some of the key points – what I call the “must haves.”
First, for too many years, the IRS was in the position of not having the resources to go toe-to-toe with taxpayers operating in the international markets. They had deep pockets and could hire a cadre of legal and tax experts. Some observers said, “We were outmanned and outgunned.”
To meet this challenge, we must keep existing personnel current on emerging techniques and hire top examiners, lawyers, economists, special agents and financial specialists who can unravel the sophisticated and complex world of international tax issues.
These enforcement resources can produce real victories, such as the recent Xilinx decision by the 9th Circuit Court of Appeals surrounding a transfer pricing issue. The IRS claimed that Xilinx was liable for taxes and penalties relating to transactions between the company and its Irish subsidiary.
Second, the IRS is an information intensive organization. Data is our lifeblood. It informs all of our activities – from service to enforcement. But it’s not just about getting the data, but rather analyzing and making the best use of it.
For example, we know that those taxpayers who have their taxes withheld and reported to the IRS through third parties are the most compliant. On the other end of the scale, those operating without withholding and reporting are the least compliant.
What’s the lesson here? Simple – better information reporting can boost compliance and we need more of it from foreign countries and foreign financial institutions.
Third, regulatory and legislative changes and enhancements are needed. For example, the Qualified Intermediary program gives the IRS an important line of sight into the activities of U.S. taxpayers at foreign banks and financial institutions. But it’s not problem-free.
We need to shore up the QI program and enhance, improve and strengthen it. Last fall, and in the President’s 2010 fiscal year budget, we issued a set of proposed changes to the QI program which we believe will give us a clearer line of vision and transparency that we need in tax administration.
QI is not the only way to gain transparency. The President’s 2010 budget also calls for additional information reporting on cross-border wire transfers, which will allow the IRS to focus examination resources on the areas of highest risk.
Time is also one of our greatest enemies. Cases involving offshore bank and investment accounts located in bank secrecy jurisdictions take additional time to complete. These cases often present challenges for the IRS in obtaining information from a financial institution that is not subject to U.S. jurisdiction.
Extending the statute of limitations would be an important asset to our efforts, and we hope Congress will pass legislation giving us the time we need to pursue our investigations and other enforcement activities.
These are our challenges. Let me now talk about the solutions, including the proposed set of international measures that President Obama announced.
And before discussing them, I want to again make the distinction between corporations and individuals in the international tax compliance context.
International business transactions can be complex for many reasons, but it’s no secret that multinational corporations engage in sophisticated tax planning. Let me be clear. There are plenty of international tax strategies that are perfectly legal. And many corporations and their legal and tax advisors are genuinely trying to comply with the myriad of international tax laws.
While we won’t always agree about what the law is, or how it applies in particular cases, we recognize that many businesses are trying to get it right. However, we also know that some businesses use the complexity of the tax code and the international capital markets to push the envelope too far.
That is where we have issues, and where we will continue to focus. I have highlighted in the past some of the areas where we have particular interest and these include: transfer pricing, financial instruments, hybrid structures, and withholding taxes.
For individuals with overseas income and assets, it’s much more straightforward. If you are a U.S. taxpayer holding overseas assets, you must pay your taxes or we will be very focused on finding you. It’s as simple as that.
Now, let’s get into the meat of the Administration’s proposals.
As I just noted, some of these proposals deal with techniques used by U.S.-based multinational corporations to reduce their U.S. tax liability. I won’t dwell on these, except to give you a few highlights.
For example, U.S. multinational corporations that invest overseas can take immediate deductions on their U.S. tax returns for certain expenses but defer paying U.S. taxes on the income. The Administration proposes to reform these rules so that companies cannot take the deductions on their U.S. tax returns until they repatriate these offshore profits – with the exception of research and experimentation expenses.
And let me be clear here too. The President is not repealing deferral. The Administration is simply proposing that deductions for expenses should match the deferred income.
Another example of a corporate tax reform proposal is to change the “check-the-box” rules that can make foreign subsidiaries “disappear” for U.S. tax purposes. The Administration’s proposals restrict the use of the check-the-box rules for certain foreign entities. The proposals also would restrict the ability to use foreign tax credits in certain situations. The goal of these proposals is to ensure a level playing field and fairness in the tax code. This Administration is also committed to ensuring U.S. businesses remain competitive globally.
Now, I would like to focus on the President’s proposals aimed at individuals avoiding tax by hiding income in offshore accounts. These proposals will enhance information reporting, increase tax withholding in certain situations, strengthen penalties, and shift the burden of proof to make it harder for offshore account-holders to evade U.S. taxes. They will also provide the enforcement tools we need to crack down on offshore tax abuse.
The core of the Administration’s proposals is to strengthen and expand the Qualified Intermediary system. The overall goal is to make it easy for individuals to comply with U.S. tax law, and make the intermediaries who facilitate the flow of funds across borders our partners in ensuring people pay the right amount of tax. The other part of the proposal is to create disincentives for those U.S. taxpayers who chose to do business with a financial institution that has chosen not to be a QI.
I should note the OECD has also been studying best practices, data templates, outside auditor requirements, and other guidelines for building QI-type networks. We believe the enhanced QI system proposed by the President is a good starting point eventually for a multilateral QI system.
The President’s proposed enhancements to the QI program remind me of what someone once said. “Good laws make it easier to do right and harder to do wrong.”
Although the multi-faceted proposal is complicated, I would summarize it into five key components. First, U.S. financial institutions and QIs will be required to determine the true beneficial owner of a particular account. Similar to the issues the EU has had with enforcing its Savings Directive, we have found that many U.S. taxpayers have formed shell entities to hold offshore accounts.
Second, we want to encourage Non-QIs to become QIs. Thus, the Administration proposes to impose significant withholding tax on transactions involving non-Qualifying Intermediaries. Specifically, it would require U.S. financial institutions and QIs to withhold 20 percent to 30 percent of U.S. payments to individuals or businesses who use non-QIs. To get a refund for the amount withheld, investors must disclose their identities and demonstrate that they’re obeying the law.
In addition, the President’s plan would create a legal presumption against users of non-Qualifying Intermediaries. This is a real game changer. U.S. citizens who send money to foreign banks that don’t cooperate with us will have to provide convincing evidence to prove they’re not breaking U.S. tax laws. Moreover, these presumptions will make it easier for the IRS to demand information and pursue cases against international tax evaders.
Third, the Administration’s plan would increase various reporting requirements. For example, QIs would be required to report worldwide information on their U.S. customers to the same extent that U.S. financial intermediaries do. In addition, U.S. persons, U.S. financial institutions, and QIs will be required to report cross-border transfers to Non-QIs.
On all of the QI issues, let me note that we understand that these changes will require a commitment and resources by financial institutions in the QI program, and we look forward to discussing the proposals with them and ensuring a smooth and orderly implementation.
The fourth component of our plan is to improve the ability of the IRS to successfully prosecute international tax evasion. For example, the proposals would double certain penalties when a taxpayer fails to make a required disclosure of foreign financial accounts.
Fifth, the Administration also asks Congress to extend the current statute of limitations on international tax enforcement from three to six years after the taxpayer submits required information. As discussed earlier, these cases are often highly complex and require additional time to resolve beyond the current three-year statute.
The President is also putting resources behind his plan. The Administration’s proposed FY 2010 budget for the IRS will allow us to make unprecedented investments in the people, tools, and overall coverage in the international arena.
As part of the President’s budget, the IRS would be funded to hire nearly 800 new employees devoted specifically to international enforcement, such as agents, economists, lawyers and specialists.
This would increase the IRS’ ability to crack down on offshore tax avoidance and evasion. It would also give us more resources to devote to complex international corporate tax issues such as transfer pricing and financial products.
Lastly, we have begun a dialogue to take international cooperation to the next level. I believe this should include joint examinations with other nations and working towards joint definitions around information reporting requirements.
Such new cooperation and coordination would, if done right, decrease burden on businesses and individuals trying to comply with the law, and help tax authorities consistently enforce the tax law on a global basis.
In conclusion, let me end where I started. The complexity of global capital markets and global capital flows presents new challenges to regulators worldwide. This is true of financial markets regulators, and also for tax authorities.
There are no simple answers, but there is clearly a desire among policymakers to ensure that businesses and individuals are playing by the rules and paying their fair share of taxes.
At the IRS, we are very committed to adapting and evolving as circumstances evolve. We have a multi-year, highly focused international strategy. The President and Secretary Geithner have given us the tools needed to pursue that strategy, and we have asked Congress for new authorities and laws to make it possible for us to succeed.
And our efforts will depend on a closely coordinated strategy among nations, because this is a challenge that all countries are confronting. We are committed to get it right, and it will remain a top agenda item for us.
Thank you for the opportunity to speak here today. I hope you enjoy the rest of the conference.
Tuesday, May 26, 2009
IRS Newswire: Special Tax Breaks for Small Business, Act Now....
Law Offers Special Tax Breaks for Small Business; Act Now and Save, IRS Says
IR-2009-51, May 20, 2009
Small Business Week is May 17 to 23, and the Internal Revenue Service urges small businesses to act now and take advantage of tax-saving opportunities included in the recovery law.
The American Recovery and Reinvestment Act (ARRA), enacted in February, created, extended or expanded a variety of business tax deductions and credits. Because some of these changes—the bonus depreciation and increased section 179 deduction, for example—are only available this year, eligible businesses only have a few months to take action and save on their taxes. Here is a quick rundown of some of the key provisions.
Faster Write-Offs for Certain Capital Expenditures
Many small businesses that invest in new property and equipment will be able to write off most or all of these purchases on their 2009 returns. The new law extends through 2009 the special 50 percent depreciation allowance, also known as bonus depreciation, and increased limits on the section 179 deduction, named for the relevant section of the Internal Revenue Code. Normally, businesses recover these capital investments through annual depreciation deductions spread over several years. Both of these provisions encourage these investments by enabling businesses to write them off more quickly.
The bonus depreciation provision generally enables businesses to deduct half the cost of qualifying property in the year it is placed in service.
The section 179 deduction enables small businesses to deduct up to $250,000 of the cost of machinery, equipment, vehicles, furniture and other qualifying property placed in service during 2009. Without the new law, the limit would have dropped to $133,000. The existing $25,000 limit still applies to sport utility vehicles. A special phase-out provision effectively targets the section 179 deduction to small businesses and generally eliminates it for most larger businesses.
Bonus depreciation and the section 179 deduction are claimed on Form 4562. Further details are in the instructions for this form.
Expanded Net Operating Loss Carryback
Many small businesses that had expenses exceeding their incomes for 2008 can choose to carry those losses back for up to five years, instead of the usual two. For small businesses that were profitable in the past but lost money in 2008, this could mean a special tax refund. The option is available for a small business that has no more than an average of $15 million in gross receipts over a three-year period.
This option is still available for most eligible taxpayers, but only for a limited time. A corporation that operates on a calendar-year basis, for example, must file a claim by Sept. 15, 2009. For eligible individuals, the deadline is Oct. 15, 2009.
Eligible individuals should file a claim using Form 1045, and corporations should use Form 1139. Details can be found in the instructions for each of these forms, and answers to frequently-asked questions are posted on IRS.gov.
Exclusion of Gain on the Sale of Certain Small Business Stock
The new law provides an extra incentive for individuals who invest in small businesses. Investors in qualified small business stock can exclude 75 percent of the gain upon sale of the stock. This increased exclusion applies only if the qualified small business stock is acquired after Feb. 17, 2009 and before Jan. 1, 2011, and held for more than five years. For previously-acquired stock, the exclusion rate remains at 50 percent in most cases.
Estimated Tax Requirement Modified
Many individual small business taxpayers may be able to defer, until the end of the year, paying a larger part of their 2009 tax obligations. For 2009, eligible individuals can make quarterly estimated tax payments equal to 90 percent of their 2009 tax or 90 percent of their 2008 tax, whichever is less. Individuals qualify if they received more than half of their gross income from their small businesses in 2008 and meet other requirements. For details, see Publication 505.
COBRA Credit
Employers that provide the 65 percent COBRA premium subsidy under ARRA to eligible former employees claim credit for this subsidy on their quarterly or annual employment tax returns. To help avoid imposing an unnecessary cash-flow burden, affected employers can reduce their employment tax deposits by the amount of the credit. For details, see Form 941. Answers to frequently-asked questions are posted on IRS.gov.
Other ARRA business provisions relate to discharges of certain business indebtedness, the holding period for S corporation built-in gains and acceleration of certain business credits for corporations. Also see Fact Sheet FS-2009-11.
IR-2009-51, May 20, 2009
Small Business Week is May 17 to 23, and the Internal Revenue Service urges small businesses to act now and take advantage of tax-saving opportunities included in the recovery law.
The American Recovery and Reinvestment Act (ARRA), enacted in February, created, extended or expanded a variety of business tax deductions and credits. Because some of these changes—the bonus depreciation and increased section 179 deduction, for example—are only available this year, eligible businesses only have a few months to take action and save on their taxes. Here is a quick rundown of some of the key provisions.
Faster Write-Offs for Certain Capital Expenditures
Many small businesses that invest in new property and equipment will be able to write off most or all of these purchases on their 2009 returns. The new law extends through 2009 the special 50 percent depreciation allowance, also known as bonus depreciation, and increased limits on the section 179 deduction, named for the relevant section of the Internal Revenue Code. Normally, businesses recover these capital investments through annual depreciation deductions spread over several years. Both of these provisions encourage these investments by enabling businesses to write them off more quickly.
The bonus depreciation provision generally enables businesses to deduct half the cost of qualifying property in the year it is placed in service.
The section 179 deduction enables small businesses to deduct up to $250,000 of the cost of machinery, equipment, vehicles, furniture and other qualifying property placed in service during 2009. Without the new law, the limit would have dropped to $133,000. The existing $25,000 limit still applies to sport utility vehicles. A special phase-out provision effectively targets the section 179 deduction to small businesses and generally eliminates it for most larger businesses.
Bonus depreciation and the section 179 deduction are claimed on Form 4562. Further details are in the instructions for this form.
Expanded Net Operating Loss Carryback
Many small businesses that had expenses exceeding their incomes for 2008 can choose to carry those losses back for up to five years, instead of the usual two. For small businesses that were profitable in the past but lost money in 2008, this could mean a special tax refund. The option is available for a small business that has no more than an average of $15 million in gross receipts over a three-year period.
This option is still available for most eligible taxpayers, but only for a limited time. A corporation that operates on a calendar-year basis, for example, must file a claim by Sept. 15, 2009. For eligible individuals, the deadline is Oct. 15, 2009.
Eligible individuals should file a claim using Form 1045, and corporations should use Form 1139. Details can be found in the instructions for each of these forms, and answers to frequently-asked questions are posted on IRS.gov.
Exclusion of Gain on the Sale of Certain Small Business Stock
The new law provides an extra incentive for individuals who invest in small businesses. Investors in qualified small business stock can exclude 75 percent of the gain upon sale of the stock. This increased exclusion applies only if the qualified small business stock is acquired after Feb. 17, 2009 and before Jan. 1, 2011, and held for more than five years. For previously-acquired stock, the exclusion rate remains at 50 percent in most cases.
Estimated Tax Requirement Modified
Many individual small business taxpayers may be able to defer, until the end of the year, paying a larger part of their 2009 tax obligations. For 2009, eligible individuals can make quarterly estimated tax payments equal to 90 percent of their 2009 tax or 90 percent of their 2008 tax, whichever is less. Individuals qualify if they received more than half of their gross income from their small businesses in 2008 and meet other requirements. For details, see Publication 505.
COBRA Credit
Employers that provide the 65 percent COBRA premium subsidy under ARRA to eligible former employees claim credit for this subsidy on their quarterly or annual employment tax returns. To help avoid imposing an unnecessary cash-flow burden, affected employers can reduce their employment tax deposits by the amount of the credit. For details, see Form 941. Answers to frequently-asked questions are posted on IRS.gov.
Other ARRA business provisions relate to discharges of certain business indebtedness, the holding period for S corporation built-in gains and acceleration of certain business credits for corporations. Also see Fact Sheet FS-2009-11.
Monday, May 18, 2009
The IRS NOW Hiring Hundreds of Agents
The IRS is hiring hundreds of Internal Revenue Agents – It’s a great time to join the agency!
The IRS has begun a major hiring effort to fill hundreds of critical jobs nationwide. Most of these jobs are for internal revenue agent positions (look for series number 0512). At least 30 hours of college-level accounting coursework is required for revenue agent jobs.
When you join the IRS family, you can enjoy federal health benefits, job-skills training and flexible work schedules. You also get the satisfaction of serving your country. Because the IRS is a large agency – with more than 100,000 across the nation -- there are many opportunities for career growth.
Revenue agent positions range from entry level (GS-5) to more senior positions (GS-13). GS-5 salaries cover a range from about $30,000 to $45,000 per year; GS-13 salaries range from about $85,000 to $115,000. Your salary depends on your location and how long you’ve served at that level.
Revenue agents are proactive decision makers, working with individual taxpayers, businesses, and the legal and financial communities. They conduct examinations in the field environment, requiring them to travel. They work regularly with taxpayers, their representatives, certified public accountants and tax attorneys.
To apply for vacancies, visit USAJOBS, the government-wide job posting site. Find the IRS page by clicking http://jobsearch.usajobs.opm.gov/a9trirs.asp . All applicants must undergo a background investigation
The IRS has begun a major hiring effort to fill hundreds of critical jobs nationwide. Most of these jobs are for internal revenue agent positions (look for series number 0512). At least 30 hours of college-level accounting coursework is required for revenue agent jobs.
When you join the IRS family, you can enjoy federal health benefits, job-skills training and flexible work schedules. You also get the satisfaction of serving your country. Because the IRS is a large agency – with more than 100,000 across the nation -- there are many opportunities for career growth.
Revenue agent positions range from entry level (GS-5) to more senior positions (GS-13). GS-5 salaries cover a range from about $30,000 to $45,000 per year; GS-13 salaries range from about $85,000 to $115,000. Your salary depends on your location and how long you’ve served at that level.
Revenue agents are proactive decision makers, working with individual taxpayers, businesses, and the legal and financial communities. They conduct examinations in the field environment, requiring them to travel. They work regularly with taxpayers, their representatives, certified public accountants and tax attorneys.
To apply for vacancies, visit USAJOBS, the government-wide job posting site. Find the IRS page by clicking http://jobsearch.usajobs.opm.gov/a9trirs.asp . All applicants must undergo a background investigation
Monday, April 27, 2009
IRS Now Hiring Tax Agents
Interested applicants can search for internal revenue agent jobs online. Find out what’s available or tell someone you know who may be looking for a job at the IRS
http://jobsearch.usajobs.gov/a9trirs.asp
http://jobsearch.usajobs.gov/a9trirs.asp
Tuesday, March 24, 2009
First Time Home Buyers Credit - Put on 2008 or 2009 Tax Return USE Form 5405 Credit up to $8000
First-time home buyers represent a significant portion of existing single-family home sales. The expansion in the first-time home buyer credit will make it easier for first-time home buyers to enter the housing market this year.
Under the American Recovery and Reinvestment Act of 2009, qualifying taxpayers who purchase a home before Dec. 1 receive up to $8,000, or $4,000 for married individuals filing separately. People can claim the credit either on their 2008 tax returns due April 15 or on their 2009 tax returns next year.
The filing options to consider are:
File an extension. Taxpayers who haven’t yet filed their 2008 returns but are buying a home soon can request a six-month extension to October 15. This step would be faster than waiting until next year to claim it on the 2009 tax return. Even with an extension, taxpayers could still file electronically, receiving their refund in as few as 10 days with direct deposit.
File now, amend later. Taxpayers due a sizable refund for their 2008 tax return but who also are considering buying a house in the next few months can file their return now and claim the credit later. Taxpayers would file their 2008 tax forms as usual, then follow up with an amended return later this year to claim the home buyer credit.
Amend the 2008 tax return. Taxpayers buying a home in the near future who have already filed their 2008 tax return can consider filing an amended tax return. The amended tax return will allow them to claim the home buyer credit on the 2008 return without waiting until next year to claim it on the 2009 return.
Claim the credit in 2009 rather than 2008. For some taxpayers, it may make more financial sense to wait and claim the home buyer credit next year when they file the 2009 tax return rather than claiming it now on the 2008 tax return. This could benefit taxpayers who might qualify for a higher credit on the 2009 tax return. This could include people who have less income in 2009 than 2008 because of factors such as a job loss or drop in investment income.
The IRS reminds taxpayers the amount of the credit begins to phase out for taxpayers whose modified adjusted gross income is more than $75,000, or $150,000 for joint filers. Taxpayers can claim 10 percent of the purchase price up to $8,000, or $4,000 for married individuals filing separately.
IRS.gov provides more information, including guidance for people who bought their first homes in 2008. To learn more about the overall implementation of the Recovery Act, visit http://www.recovery.gov/
This post was provided by http://www.taxeswilltravel.com/past_due_returns.htm - an Online tax service where tax payers can get help with stopping a Tax Levy for under $100 USD and get help with past due tax returns.
Under the American Recovery and Reinvestment Act of 2009, qualifying taxpayers who purchase a home before Dec. 1 receive up to $8,000, or $4,000 for married individuals filing separately. People can claim the credit either on their 2008 tax returns due April 15 or on their 2009 tax returns next year.
The filing options to consider are:
File an extension. Taxpayers who haven’t yet filed their 2008 returns but are buying a home soon can request a six-month extension to October 15. This step would be faster than waiting until next year to claim it on the 2009 tax return. Even with an extension, taxpayers could still file electronically, receiving their refund in as few as 10 days with direct deposit.
File now, amend later. Taxpayers due a sizable refund for their 2008 tax return but who also are considering buying a house in the next few months can file their return now and claim the credit later. Taxpayers would file their 2008 tax forms as usual, then follow up with an amended return later this year to claim the home buyer credit.
Amend the 2008 tax return. Taxpayers buying a home in the near future who have already filed their 2008 tax return can consider filing an amended tax return. The amended tax return will allow them to claim the home buyer credit on the 2008 return without waiting until next year to claim it on the 2009 return.
Claim the credit in 2009 rather than 2008. For some taxpayers, it may make more financial sense to wait and claim the home buyer credit next year when they file the 2009 tax return rather than claiming it now on the 2008 tax return. This could benefit taxpayers who might qualify for a higher credit on the 2009 tax return. This could include people who have less income in 2009 than 2008 because of factors such as a job loss or drop in investment income.
The IRS reminds taxpayers the amount of the credit begins to phase out for taxpayers whose modified adjusted gross income is more than $75,000, or $150,000 for joint filers. Taxpayers can claim 10 percent of the purchase price up to $8,000, or $4,000 for married individuals filing separately.
IRS.gov provides more information, including guidance for people who bought their first homes in 2008. To learn more about the overall implementation of the Recovery Act, visit http://www.recovery.gov/
This post was provided by http://www.taxeswilltravel.com/past_due_returns.htm - an Online tax service where tax payers can get help with stopping a Tax Levy for under $100 USD and get help with past due tax returns.
Friday, March 20, 2009
Stop Tax Levies, Wage Garnishments for Set Low Fee
If you have NOT filed past due returns and the IRS has levied you bank accounts or enforced a wage garnishment, http://taxeswilltravel.com/pdr.htm
This newer online tax service, provides 3 business day solutions for IRS tax levies due to non filing of previous year taxes. A flat fee of $85.00 is the fee for low income to moderate income taxpayers who need immediate assistance. The actual filing of the past due tax returns ranges from $49 to $120 depending on how complex the return is.
The tax accountant for the http://taxeswilltravel.com/pdr.com site has over 10 years experience in tax returns for individuals and small business owners in the San Francisco Bay Area. The mobile service is still available - however, now the service has been added for the online community to benefit as well.
This newer online tax service, provides 3 business day solutions for IRS tax levies due to non filing of previous year taxes. A flat fee of $85.00 is the fee for low income to moderate income taxpayers who need immediate assistance. The actual filing of the past due tax returns ranges from $49 to $120 depending on how complex the return is.
The tax accountant for the http://taxeswilltravel.com/pdr.com site has over 10 years experience in tax returns for individuals and small business owners in the San Francisco Bay Area. The mobile service is still available - however, now the service has been added for the online community to benefit as well.
Tuesday, March 10, 2009
You Received a Certified Letter from the IRS? Now What
You Received a CP-90/CP0-297 Form in the Mail from the IRS - Now What?
The CP-90 or CPO-297 notice is telling you that the IRS intends to issue a levy against any federal payments due you, such as contractor/vendor payments, OPM retirement benefits, SSA benefits, salary, or employee travel advances or reimbursements because you still have a balance due on your tax account. Property, or rights to property, such as real estate, automobiles, business assets, bank accounts, wages, commissions, and other income are also subject to levy.
What Should You Do?
Call the number on the notice. Before you call you might want to review the does and do nots at http://pastduetaxreturn.info/ for detail information.
The CP-90 or CPO-297 notice is telling you that the IRS intends to issue a levy against any federal payments due you, such as contractor/vendor payments, OPM retirement benefits, SSA benefits, salary, or employee travel advances or reimbursements because you still have a balance due on your tax account. Property, or rights to property, such as real estate, automobiles, business assets, bank accounts, wages, commissions, and other income are also subject to levy.
What Should You Do?
Call the number on the notice. Before you call you might want to review the does and do nots at http://pastduetaxreturn.info/ for detail information.
Tuesday, February 24, 2009
Bail Out and Past Due Tax Returns - Spells Trouble for Many
With the bail out money ...... who do you think is going to have to pay the cost? You/we the taxpayer will be required to provide the cash flow to make the bail outs work.
Your next thought might be, "Won't money be tight?" The answer is yes. AND guess where they will start looking for large sums of extra cash?
You got it ..... from past due tax returns.
It is only a matter of time before the squeeze will be on. (More so then at the present time) The IRS will be looking for money and if you have not filed your past due tax returns, they will be looking for you.
Sure, there will be a step up in snail mail communications. Then there may even be a massive telephone campaign, if they can put it into the budget. But sooner or later, they will develop an aggressive campaign to contact taxpayers who have not filed past due tax returns, based on W2 information and mortgage interest information.
Now is the time to put "past due tax returns" on your list of things to do.
Not to worry there are online services that are bonded, and licensed and registered with the IRS to complete past due tax returns and http://taxeswilltravel.com/ is one of these services.
Taxpayers can get a simple Federal and State tax return completed for less then $50. and within a very short period of time. More complex returns cost a little more. Many times the IRS can be satisfied just by "us" calling them and asking for wage information to file your past due tax returns
Tax Professionals in the state of California are required to attend tax school EVERY year to keep up with all the new tax laws. There are confidential requirements that we must adhere to.
http://Taxeswilltravel.com/pdr.com uses a secure fax line and all information obtained from the IRS is completed in confidence and destroyed accordingly once the tax return has been completed (except what has to be maintained by law)
Because I am not a tax attorney, our fees are extremely affordable and can benefit moderate income taxpayers greatly. Of course if you earned over $250,000 with a gift tax issue and major AMT concerns, your best bet would be to contact a tax attorney. However, if you have a low six figure income or below, with investment property, investment income, a house or two, a kid or two, a dog or cat, child in college, a small business or you sold some stock during those years - we can more then help.
C. Ingraham
Tax Accountant
Federal & State Taxes
Your next thought might be, "Won't money be tight?" The answer is yes. AND guess where they will start looking for large sums of extra cash?
You got it ..... from past due tax returns.
It is only a matter of time before the squeeze will be on. (More so then at the present time) The IRS will be looking for money and if you have not filed your past due tax returns, they will be looking for you.
Sure, there will be a step up in snail mail communications. Then there may even be a massive telephone campaign, if they can put it into the budget. But sooner or later, they will develop an aggressive campaign to contact taxpayers who have not filed past due tax returns, based on W2 information and mortgage interest information.
Now is the time to put "past due tax returns" on your list of things to do.
Not to worry there are online services that are bonded, and licensed and registered with the IRS to complete past due tax returns and http://taxeswilltravel.com/ is one of these services.
Taxpayers can get a simple Federal and State tax return completed for less then $50. and within a very short period of time. More complex returns cost a little more. Many times the IRS can be satisfied just by "us" calling them and asking for wage information to file your past due tax returns
Tax Professionals in the state of California are required to attend tax school EVERY year to keep up with all the new tax laws. There are confidential requirements that we must adhere to.
http://Taxeswilltravel.com/pdr.com uses a secure fax line and all information obtained from the IRS is completed in confidence and destroyed accordingly once the tax return has been completed (except what has to be maintained by law)
Because I am not a tax attorney, our fees are extremely affordable and can benefit moderate income taxpayers greatly. Of course if you earned over $250,000 with a gift tax issue and major AMT concerns, your best bet would be to contact a tax attorney. However, if you have a low six figure income or below, with investment property, investment income, a house or two, a kid or two, a dog or cat, child in college, a small business or you sold some stock during those years - we can more then help.
C. Ingraham
Tax Accountant
Federal & State Taxes
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