An IRS Levy on your wages, salary or other income for personal services, does not have to be served each time you are paid. Once the IRS levies your accounts, or garnishes your wages, the levy is in place, until the debt is paid.
An IRS payment plan, or applying for hardship status, are two ways, to stop wage garnishment and bank levies. Of course there is always BK.
Tuesday, June 29, 2010
Friday, May 28, 2010
Can the IRS Levy My Social Security Benefits, Because of Unfiled Taxes?
Yes. however, I am not sure how often the IRS uses this Notice
There is a CP 91 Notice, which is used to notify someone that the IRS is going to levy their Social Security Benefits.
The notice states that there is a balance due and is still unpaid. (Even if you didn't file, the IRS will prepare a Substitute Return, and file for you)
The notice goes on to say that the IRS intends to take up to 15% of your Social Security Benefits, and explains what steps the taxpayer needs to take, to prevent the collection actions.
For clarification on Tax Codes, visit irs.gov
There is a CP 91 Notice, which is used to notify someone that the IRS is going to levy their Social Security Benefits.
The notice states that there is a balance due and is still unpaid. (Even if you didn't file, the IRS will prepare a Substitute Return, and file for you)
The notice goes on to say that the IRS intends to take up to 15% of your Social Security Benefits, and explains what steps the taxpayer needs to take, to prevent the collection actions.
For clarification on Tax Codes, visit irs.gov
Tuesday, May 25, 2010
My friend said I could be charged with fraud, because I haven't filed my taxes in 3 years, is this true?
I had to look this one up, to be sure I got the wording correct.
Yes, not only can you be charged with fraud, you can go to prison for not filing an income tax return, when required to do so.
The fraud can be either a civil or a criminal charge.
Civil fraud results in a penalty of 75% of the taxes owed.
Tax evasion, on the other hand, is considered a felony with a maximum prison sentence of five years and a maximum fine of $100K.
Filing a false return, can be considered a felony as well.
If you need to file past due returns, or file a 1040X, we can help you.
Yes, not only can you be charged with fraud, you can go to prison for not filing an income tax return, when required to do so.
The fraud can be either a civil or a criminal charge.
Civil fraud results in a penalty of 75% of the taxes owed.
Tax evasion, on the other hand, is considered a felony with a maximum prison sentence of five years and a maximum fine of $100K.
Filing a false return, can be considered a felony as well.
If you need to file past due returns, or file a 1040X, we can help you.
How Does the IRS Know That I Didn't File My Tax Return?
The IRS uses a computerized, cross check system, to match W-2s, 1099s and other financial institution’s reports, to determine if taxpayers have submitted a return, which matches the information turned into them.
First you must understand, that Employers turn this information into the IRS, so that their expenses can be documented. An employer can claim the wages of employees, as a business expense.
True, the “IRS Computer” is very busy, however, sooner or later, it will figure out that there is no return, on file, for a particular W2 or 1099.
That’s when the letters start going out. The IRS calls them “Notices”
You will get a series of these letters over a period of time. The time frame varies, based upon, how much the IRS calculates that you owe.
It is best to respond ASAP, because the penalties and interest accrues daily. You could end up owing more in penalties and interest, than your original tax bill!
First you must understand, that Employers turn this information into the IRS, so that their expenses can be documented. An employer can claim the wages of employees, as a business expense.
True, the “IRS Computer” is very busy, however, sooner or later, it will figure out that there is no return, on file, for a particular W2 or 1099.
That’s when the letters start going out. The IRS calls them “Notices”
You will get a series of these letters over a period of time. The time frame varies, based upon, how much the IRS calculates that you owe.
It is best to respond ASAP, because the penalties and interest accrues daily. You could end up owing more in penalties and interest, than your original tax bill!
Tuesday, May 18, 2010
New Laws for Tax Preparers On the Drawing Table
Registration -
All tax return preparers will be required to register with the IRS and pay a registration fee, before being able to sign a federal tax return as a paid tax professional.
Target date for online registration systems is September 1, 2010.
A PTIN will also be necessary for all registered tax preparers.
Competency Testing -
Tax preparers who are NOT, Attorneys, CPAs or Enrolled Agents, will be required to take and past a competency test.
The target date for the competency test to be available is May 1, 2011. There will be two levels of competency testing.
Level 1. Will deal with wage and non business Form 1040 Series, including, Schedule A, and Schedule D
Level 2. Will include testing for wage and small business forms, including Schedule C, F and Schedule SE.
Continuing Education -
Tax preparers who are NOT Enrolled Agents, CPAs, or Attorneies, will be required to complete 15 hours of continuing education, each year.
* Federal tax law updates (3 hours)
* Tax ethics - 2 hours
* Other federal tax law topics - 10 hours
All tax return preparers will be required to register with the IRS and pay a registration fee, before being able to sign a federal tax return as a paid tax professional.
Target date for online registration systems is September 1, 2010.
A PTIN will also be necessary for all registered tax preparers.
Competency Testing -
Tax preparers who are NOT, Attorneys, CPAs or Enrolled Agents, will be required to take and past a competency test.
The target date for the competency test to be available is May 1, 2011. There will be two levels of competency testing.
Level 1. Will deal with wage and non business Form 1040 Series, including, Schedule A, and Schedule D
Level 2. Will include testing for wage and small business forms, including Schedule C, F and Schedule SE.
Continuing Education -
Tax preparers who are NOT Enrolled Agents, CPAs, or Attorneies, will be required to complete 15 hours of continuing education, each year.
* Federal tax law updates (3 hours)
* Tax ethics - 2 hours
* Other federal tax law topics - 10 hours
Saturday, May 15, 2010
American Taxpayers Get It. Give and You Shall Receive, These Deductions are Available When Filing Your Past Due Returns
The IRS released information about filing statistics for 2007
Over 4.5 million returns were filed in 2007, which included an adjusted gross income of $200,000 or more.
This same report said that individual taxpayers, who itemized, reported $59 billion in deductions for noncash charitable contributions.
This means, American taxpayers are mainstream when it comes to charitable contributions. US taxpayers get it! Give and you shall receive.
It will be interesting to see the statistics for 2008 through 2009. However, we will have to wait for the IRS to release these figures.
Over 4.5 million returns were filed in 2007, which included an adjusted gross income of $200,000 or more.
This same report said that individual taxpayers, who itemized, reported $59 billion in deductions for noncash charitable contributions.
This means, American taxpayers are mainstream when it comes to charitable contributions. US taxpayers get it! Give and you shall receive.
It will be interesting to see the statistics for 2008 through 2009. However, we will have to wait for the IRS to release these figures.
Thursday, May 13, 2010
IRS Nationwide Tax Forum, Dates, Location, 2010
The IRS has released the details on this year's nationwide tax forum.
This is a must attend for new tax professionals and individuals interested in becoming a tax professional. There are 3 days (mid-week) full of seminars and educational workshops.
The most helpful benefit, is the up to date information on new tax issues and laws.
If you sign up early there is a deep discount. Learn more by clicking the link above. You can choose from the different locations below.
2010 Registration Fees, Dates and Locations:
The cost of enrollment for those who pre-register is $206 per person, a savings of $129 off the late or on-site registration price of $335. Pre-registration ends two weeks prior to the start of each forum.
Location
Forum Dates
Pre-Registration Deadline
Atlanta June 22-24
June 8
Chicago July 13-15
June 29
Orlando , Fla July 27-29
July 13
New York August 10-12
July 27
Las Vegas August 24-26
August 10
San Diego August 31 – September 2
August 17
This is a must attend for new tax professionals and individuals interested in becoming a tax professional. There are 3 days (mid-week) full of seminars and educational workshops.
The most helpful benefit, is the up to date information on new tax issues and laws.
If you sign up early there is a deep discount. Learn more by clicking the link above. You can choose from the different locations below.
2010 Registration Fees, Dates and Locations:
The cost of enrollment for those who pre-register is $206 per person, a savings of $129 off the late or on-site registration price of $335. Pre-registration ends two weeks prior to the start of each forum.
Location
Forum Dates
Pre-Registration Deadline
Atlanta June 22-24
June 8
Chicago July 13-15
June 29
Orlando , Fla July 27-29
July 13
New York August 10-12
July 27
Las Vegas August 24-26
August 10
San Diego August 31 – September 2
August 17
Sunday, May 2, 2010
New Tax Law, Provides Tax Free Employer Health Coverage for Children Under Age 27
WASHINGTON — Because of the new, Affordable Care Act, health care provided for an employee's child, under 27, is tax-free (in most cases) to the employee. Effective March 30, 2010.
For detailed information, you can visit: http://www.irs.gov/newsroom/article/0,,id=222193,00.html and read the IRS press release
For detailed information, you can visit: http://www.irs.gov/newsroom/article/0,,id=222193,00.html and read the IRS press release
Saturday, April 10, 2010
The DOJ Has Indicted 56 Tax Preparers, With 25 Convictions , Since January 1, 2010
The IRS has visited more than 5,000 tax preparers this year since January 1, 2010, in an effort to ensure that competent and ethical tax professionals are available for taxpayers.
Of these 5,000 visits, the IRS has worked with the Department of Justice to bring about 56 Indictments and 25 Convictions, since January 1, 2010 (IR-2010-44, April 7, 2010)
In California, tax professionals MUST renew their registration every year, including a Bond. Yes, Tax professionals, even from the State of California, may be at a lost for a standard why of doing things. Example: While some tax schools require tax preparers to include the 1099-MISC with the tax return, others do not.
Another such example is, some tax schools require the tax preparer to include details for large line items, other schools do not.
Because the IRS has not had a particular standard, I can image they have received tax returns prepared in a number of different ways.
The IRS is planning to do more to protect the taxpayer. Tax preparers in all states will be notified of these changes in the coming future.
Of these 5,000 visits, the IRS has worked with the Department of Justice to bring about 56 Indictments and 25 Convictions, since January 1, 2010 (IR-2010-44, April 7, 2010)
In California, tax professionals MUST renew their registration every year, including a Bond. Yes, Tax professionals, even from the State of California, may be at a lost for a standard why of doing things. Example: While some tax schools require tax preparers to include the 1099-MISC with the tax return, others do not.
Another such example is, some tax schools require the tax preparer to include details for large line items, other schools do not.
Because the IRS has not had a particular standard, I can image they have received tax returns prepared in a number of different ways.
The IRS is planning to do more to protect the taxpayer. Tax preparers in all states will be notified of these changes in the coming future.
Saturday, March 20, 2010
The IRS has over $1 billion in unclaimed tax refunds - Must file by April 15, 2010
The IRS has over $1.3 billion in unclaimed tax refunds.
In order to claim your refund from unfiled tax returns, in the last 3 years, you will
need to file your unfiled tax return(s) by April 15, 2010. The IRS provides a 3 year window of opportunity, where a taxpayer may receive a "live" check from the IRS, for any refunds due them, from past due tax returns.
To claim the refund, a taxpayer must file a tax return for 2006 by April 15,
2010.
In order to claim your refund from unfiled tax returns, in the last 3 years, you will
need to file your unfiled tax return(s) by April 15, 2010. The IRS provides a 3 year window of opportunity, where a taxpayer may receive a "live" check from the IRS, for any refunds due them, from past due tax returns.
To claim the refund, a taxpayer must file a tax return for 2006 by April 15,
2010.
Sunday, February 7, 2010
Finding Help for to Prepare and File Past Due Returns
Regardless if you are seeking help to file past due tax returns, or to file current year taxes online, you can find affordable help online.
Saturday, January 16, 2010
The IRS's Three Year Window for Tax Refunds on Unfiled Taxes
Taxpayers have only until April 15 to file past due tax returns and qualify for an actual refund.
Past due tax returns are best filed ASAP. However, when you fail to file within the three year window, from the date the return was actually due, you can loose the actual refund check.
The IRS, usually will contact a taxpayer, in the form of a letter, when report income, suggest that the taxpayer may owe the IRS. If you have not filed your tax returns, and you have not heard from the IRS, that may be an indication that you may have a refund coming.
For help with past due tax returns, click on the title.
Past due tax returns are best filed ASAP. However, when you fail to file within the three year window, from the date the return was actually due, you can loose the actual refund check.
The IRS, usually will contact a taxpayer, in the form of a letter, when report income, suggest that the taxpayer may owe the IRS. If you have not filed your tax returns, and you have not heard from the IRS, that may be an indication that you may have a refund coming.
For help with past due tax returns, click on the title.
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