SMALL BUSINESSES CAN GET IRS PENALTY RELIEF FOR UNFILED RETIREMENT PLAN RETURNS.
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Received a notification from the IRS regarding a Notice of Federal Tax Lien? Don’t panic, but don’t ignore it!
As Fuel Prices Lower, There Could be a New Gas Tax
Will there be a new Gas Tax?
When filling up your gas tank you may have noticed that gas prices are lower than they have been in years! While you may be enjoying the extra money in your pocket, former Pennsylvania Gov. Ed Rendell says you shouldn’t get used to it.
On average, gas prices are about 50 cents less a gallon than a year ago. Various politicians, including Rendell, have suggested that due to the low gas prices it is the optimal time to increase gas taxes.
He supports raising the federal gas tax in order to bring in funds for roads, bridges and construction across the U.S. In an interview with CNBC the Pennsylvania Democrat argued, “Our infrastructure’s crumbling. Our roads and our bridges are in dangerous condition.” Rendell believes that if the roads were in better condition, it would allow for more efficient traffic, and that raising the tax would save actually save people money.
Raising taxes is never popular, but if the gas taxes were raised now, it wouldn’t seem like much of a tax hike. The average American wouldn’t be paying more out of pocket than they were in the recent past.
Gas taxes, by historic levels, are incredibly low right now. The Washington Post pointed out that the federal gas tax has been at a flat 18.4¢ since 1993. At that time the price of a gallon was on average around $1.
At least the move won’t be quite as unpopular as it would have been if it had been introduced when Americans were paying on average $3.50 or $3.75 per gallon.
Have tax questions? Call the tax experts at 888-737-0200 for help!
Or sign up for a free consultation at www.advocatetaxsolutions.com
What Does the IRS Call Willful Neglect & What Does That Mean for You?
If you are filing your taxes this year, be careful! Remember that if the IRS even thinks there is an inkling of intentional fraud on your statements you could be facing jail time. Taxes are complex and can be confusing. You may assume that anything could be considered a simple mistake, but if the IRS deems it willful you would have the burden of proving that your mistake was unplanned.
How is a stupid mistake differentiated from an intentional mistake or willful neglect?
The IRS defines willful neglect is defined as “a conscious, intentional failure or reckless indifference to the filing requirement.” United States v. Boyle, 469 U.S. 241, n.3 (1985). Willful neglect is shown by your knowledge of your legal duty and report requirements. It means you made an intentional or voluntary choice to not comply.
But what does that mean for you?
“I didn’t know” won’t work for most mistakes. Willful blindness, avoiding learning about report requirements, can get you into IRS trouble. By law, you are responsible to learn filing requirements and to report exact truths when filing your taxes. A few mistakes may be inadvertent neglect but repeated mistakes can show deliberate disregard.
As the end of the year approaches, there is time to begin planning you tax preparations. After January 1099 and W-2 forms arrive and tax return preparations are right after. All Americans have to send tax returns and millions of Americans end up in IRS trouble because of not making estimated tax payments or improperly filing returns. We think it’s better to be safe than sorry! If you don’t want the stress of tax returns and determining what could or could not be willful neglect call our trusted advisers at Advocate Tax Solutions. It is quick, easy, and affordable for you!
Call 888-737-0200 or visit www.advocatetaxsolutions.com for a free consultation today!
Happy Cyber Monday! It Could Be the Last Tax Free Season for Online Sales
Happy Cyber Monday!
As the online holiday shopping frenzy begins today, we thought we’d share some advice for our e-commerce friends: ENJOY THE TAX FREE ONLINE MARKETPLACE WHILE YOU STILL CAN! While the National Sales Tax probably won’t happen this season, we bet you can expect to give away a good chunk of tax money to the government in the future.
The National Retail Federation expects that Cyber Week will see over $9 billion in total sales this year. While that’s a lot of online sales, e-commerce merchants are not celebrating. That’s because the government took notice of this industry’s huge success and Washington wants in. Currently the Marketplace Fairness Act has been passed by the Senate and residing in the House. This bill would allow states to collect taxes from residents who buy online purchases from out-of-state merchants. The buyers would be taxed at the point of purchase, and the retailers would remit the taxes to the eligible states and local municipalities.
As sales skyrocket this week, we expect the National Internet Sales Tax debate to heat up. Key lawmakers and major online retailers, such as the National Governors Association, Footlocker, and Amazon are eager to use the next few weeks of this Congress to push the long stalled bill.
Amazon, the country’s largest online retailer, is already collecting online sales tax and has made a deal with Massachusetts to collect sales taxes. This agreement only applies in the state and solely for purchase made on Amazon.
Because of companies like Amazon, we, at Advocate Tax Solutions, believe that The Marketplace Fairness Act will pass this next season, even if not in the exact form it is currently. The bill will be advertised as a way to even out the playing field for all online merchants.
Whether you are an online retailer or an avid online shopper, the impact of this bill could be huge. So get your Cyber Monday on and take advantage of this holiday’s tax free online market! We know we will.
Along with cyber week, tax season is coming up. Don’t forget to get your taxes in order. Call Advocate Tax Solutions at 888-737-0200 for any tax concerns and for tax preparation. Enjoy the holidays and get the tax relief you need!
Visit http://www.advocatetaxsolutions.com to learn more.
Bad News Saleen Fans: Automotive Company Out of Money and Owes Millions
Saleen Automotive recently unveiled a modified Tesla Model S and announced plans to tune the 2015 For Mustang, but information contained in the company’s latest quarterly report has some wondering if Saleen will soon fall to the same fate as Hummer and Saab.
Jalopnik reported that as of September 30, “Saleen owed $583,900 in unpaid payroll taxes; $1,148,574 of accounts payable was greater than 90 days past due; $352,795 of outstanding notes payable were in default; and $398,176 is owed to a bank as of November 2014, which the Company has not paid and expects to be in default unless the bank agrees to another extension.”
Saleen’s cash assets were listed at $7,261 at the end of the quarter; definitely not enough to run a car company. The situation is so bad that Saleen is counting on another bank extension so the company can continue operating and hopefully turn things around.
This news casts doubt for Saleen enthusiasts and buyers. Saleen’s recently modified Tesla Model S, the Saleen FourSixteen, and the new Saleen 302 Black Label, that just started coming to the market, could be quickly put on hold.
It’s a sad day when ingenious companies come to a struggle due to financial issues and tax debts. We hope Saleen has the turnaround it hopes for and gets the representation it needs. Saleen if you need new accountants, we’re here for you!
Do you owe over $10, 000 in back taxes? Call us today@: (888)737-0200
or visit www.AdvocateTaxSolutions.com to learn more about back tax resolutions and IRS debt help.
Tax Solutions for the Family Caregiver
This year you could claim your loved one as a dependent. Advocate Tax Solutions gets you the help you deserve with tax preparation services and back tax relief.
Being a family caregiver isn’t just time-consuming, it can be expensive. Most caregivers donate to provide quality care for the ones they love.
This tax season, you may be able to claim your adult family member or friend as a dependent on your income taxes. This would allow you to get a tax exemption on his or her medical costs including prescription drugs, doctor and hospital visits, dental and eye care, transportation to get to medical appointments, health insurance programs, and nursing care.
To claim your loved one as a dependent:
• You, the caregiver, cannot be claimed as a dependent by another taxpayer.
• Residency: They must be a resident of the U.S., Canada or Mexico.
• Relationship: They must be a spouse, dependent child or step-child, a parent or stepparent, father-in-law, mother-in-law, OR they must have lived with you all year.
• Elder’s income: Your loved one’s gross income for the year must be less than $3,900 and they cannot file a joint tax return with their spouse. (Social Security is usually excludable)
• Amount of support you provide: You must provide more than 50% of you loved ones financial support. This can include food, housing, medical transportation. If they live with you, you can include a reasonable percentage of your mortgage and utilities. Those who are in assisted living or remain in their own homes can qualify if the correct support levels are still met.
• Records: In order to claim a loved one as a dependent you must keep proof of payments and receipts.
Don’t worry about figuring out what deductions you are eligible for, Advocate Tax Solutions can give you the expert tax preparation services you need to receive the tax deductions and credits you’re eligible for.
Do you care for a loved one and have tax preparation questions? Call us today@: (888)737-0200
or visit www.AdvocateTaxSolutions.com to learn more about back tax resolutions and tax preparations.
SIMPLE BACK TAX LESSONS FROM AL SHARPTON
Advocate Tax Solutions gives their views on the recent back tax problems of the rich and famous
“If we owed $4.5 million in ’08 then how could we owe this now, unless you’re saying that everybody just went to sleep on this and just gave us a pass, which is ridiculous,” Sharpton said in the CNN article.
This week Civil Rights Leader Al Sharpton blasted the extensive New York Times Report saying he owed $4.5 million in back taxes. Sharpton argued that it wasn’t possible for him to owe that much. “The MSNBC host said in a press conference Wednesday that the $4.5 million was the original figure he was ordered to pay back in 2008, but that he has been making regular payments since then and the amount is now less,” reports CNN.
“If we owed $4.5 million in ’08 then how could we owe this now, unless you’re saying that everybody just went to sleep on this and just gave us a pass, which is ridiculous,” Sharpton said in the CNN article.
The Times articles describes poor planning, with Mr. Sharpton’s entities paying for and owning everything. This could include his personal items. If Sharpton is trying to merge personal and business expenses he is not adhering to the fundamental tax law that separates them. While you can write off many things with a dual motive, your tax life will be easier if you avoid them and keep records.
The IRS keeps good records and so should you. Keeping records will help you in a tax dispute and can help you keep out of tax trouble. The IRS audits may reject your tax deductions unless you have records to validate them.
Despite the great amount Mr. Sharpton owes in tax liens, he is not alone in his problems and went through the same process as everyone with back tax problems. The process starts with notices. The IRS can only file a Notice of Federal Tax Lien after the IRS assesses the liability and sends a Notice and Demand for Payment, which states how much you owe. The IRS automatically has a tax lien if you don’t send the full payment within 10 days.
An IRS tax lien covers all of your property before and after the lien filing. IRS tax liens last 10 years, but it is better to remove them immediately. This involves paying the tax, interests, and penalties; or posting a bond guaranteeing payment.
Mr. Sharpton says he has been compliant to this process and is doing his best to pay his back taxes. The IRS still has not revealed how much Mr. Sharpton owes and Sharpton believes his name is being dragged through IRS-ruin because of politics. He told Business Insider the negative story by the New York Times comes just as a grand jury is about to release its findings in the shooting of Michael Brown by a white Ferguson, Mo., police officer.
“Every time there’s a Sean Bell or a Ferguson or a Trayvon Martin, we go through my taxes. It’s the same agreement y’all. It’s the same thing we announced in ’09. It is the same thing we’ve been paying every month,” he said.
That could be possible, but either way it is evident that the best way to get out of IRS debt is to keep records and be compliant and active with your payment agreement. Millions of American’s owe back taxes, and we hope Rev. Sharpton found the representation he needed to resolve his back tax debt. However, if we were his accountants he probably wouldn’t have had this problem in the first place! Tax per return is usually the result of either not making estimated tax payments or improperly filing your return. Al Sharpton, we are available if you are seeking new representation!
Do you owe over $10, 000 in back taxes? Call us today@: (888)737-0200
or visit www.AdvocateTaxSolutions.com to learn more about back tax resolutions and IRS debt help.
Tax Problems? Warning! Don’t get Scammed! Learn The Truth About Tax Settlement and the IRS’ Offer in Compromise!
ATS | Advocate Tax Solutions | Back Tax Help & IRS Forms
PLEASE ASK a professional if you are still unsure before discussing with an IRS Revenue Officer or filling the form out and sending to the IRS. Below is a list of the most commonly used forms and a brief description of each:
– 2848 Power of Attorney – This form allows ATS to represent a client before the IRS. It allows the attorney, enrolled agent, or CPA listed on the POA to contact the IRS and negotiate directly on the client’s behalf, request a stay of enforcement, and pull any relevant information needed for the resolution.
– 433A Collection Information Statement – This form is the centerpiece of all client resolutions. This form lists all of the Taxpayer’s assets, liabilities, income and expenses. This is what the IRS uses when determining whether or not to accept a proposed resolution plan
– 433B Business Collection Information Statement – This is essentially the same as the 433A except it is used for taxpayer’s with a corporation, LLC, or partnership. It lists all of the business assets, liabilities, income, and expenses.
– 656 Offer in Compromise Application – This form is the IRS application for an offer in compromise. This form lists the taxpayer’s contact information; balances owed, terms of compromise, reasons for requesting an offer and where they will get the money for the offer. This form must accompany all OICs and it must list ALL tax liabilities of the taxpayer
– 656A Waiver of Offer in Compromise Fees – This form is used to waive the $150.00 processing fee and 20% down payment fee for an offer in compromise if the taxpayer has less than a certain amount of household income for their family size.
– 911 Taxpayer Assistance Request – This form is used to request assistance by the taxpayer advocate’s office located within the IRS. We use this form when our client has suffered or is about to suffer a significant hardship at the hands of the IRS and we have done all that we can to prevent such hardship.
– 9423 CAP Appeal Request – We use this form to request an immediate appeal within 48 hours to request immediate review for levies and or rejection of an IRS proposal. ALWAYS review with an Advocate Tax Solutions professional prior to using this form or discussing with an IRS Agent.
– 12153 CDP Hearing Request – This form is used to request an appeal of a rejection of an installment agreement or currently-non-collectible status request because the taxpayer advocate or IRS representative will not approve an installment agreement or CNC request
– 843 Penalty Abatement Request – This form is used to request abatement of a taxpayer’s penalties that have accrued after the IRS has initially assessed a tax liability.
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ATS | Advocate Tax Solutions | Back Tax Help 