I’m tax attorney Steve Klitzner. I help people with IRS problems. Folks come to me all the time with unfiled returns. You know, I’d estimate about 85% of the people that I see have at least one unfiled return. And they ask the same question, “How am I going to know how to file a return? I have no idea how much money I earned in those years.”
Well fortunately, I can go ahead, order the transcripts from the IRS with my Power of Attorney, and find out through the wage and income transcripts exactly how much money was reported to the IRS that you earned in those years. With those numbers, I can start getting together tax returns for you, so that we can send them into the IRS and begin the process of ending the IRS problems, because here’s something a lot of people don’t know. If you don’t file the returns, the IRS may file them for you, and they’re not very good at doing tax returns. They don’t give you the deductions you’re entitled to. They’re not going to give you the exemptions you’re entitled to. Very often, it will cost you a lot more money to have the IRS do the work that we can get done for you.
If you have any questions on this, give me a call. Consultation is free. Until next time, I’m tax attorney Steve Klitzner.
I’m tax attorney Steve Klitzner. When I meet with a new prospective client, after we talk for a little while and I go over some of the options, I very often hear this question: Is this going to go on forever? How long can the IRS collect for?
Well, the good news is there’s a statute of limitations. The IRS has to collect the money within 10 years of when they assess it against you, or it’s done. You don’t owe any money. Now the IRS can, and very seldom does, file a lawsuit to perfect their judgment, and then they can collect another 20 years. But for the most part, 10 years is the period of time.
There are some things that can be done, whether intentional or unintentional, that can extend that period of time. But once that statute of limitations is over, the taxpayer is free of any IRS obligations.
One of the things I do when I meet with somebody is I get the transcripts right away. I do a calculation, and I can tell you to the day when the IRS problems go away.
I’m tax attorney Steve Klitzner. Until next time, if you have any questions, please give me a call.
I’m tax attorney Steve Klitzner, and I represent people in businesses with IRS problem. Here’s a question I get often. “Can I discharge my taxes in bankruptcy?”
You may be able to. If it’s individual 1040 income tax and the returns are due more than 3 years ago and have been filed for at least 2 years, you might be eligible to have your taxes discharged in bankruptcy. What we do on these type of cases is the very first thing is I get the transcripts from the IRS. I can run an analysis to tell you whether or not your taxes are dischargeable. If they are, bankruptcy might be the best way to go. If not, there are other programs available that we can help you with.
I’m tax attorney Steve Klitzner. If you have any other questions on this subject, give me a call. Consultation is free.
Give us a call. The consultation with me, personally, is always free. Till next time, I’m tax attorney Steve Klitzner.
I’m tax attorney Steve Klitzner. I represent individuals and businesses that have IRS problems. One of my favorite questions I hear from friends, family, clients, prospective clients is, “We see those ads on TV about IRS problems. Are those for real?”
Well, yes, they are. But a lot of times, no, they’re not. You see, if you get those commercials and you put them on your DVR and you freeze the last frame — try to get it into focus, because very often it’s out of focus — you’ll see that only people who qualify for the offer and compromise program can settle their cases for less. Some people can settle a $100,000 debt for as low as $100. Others may owe $50,000 and they can’t settle it for a penny less.
Every case is different. If you qualify, you could really end your IRS problems forever.
I’m tax attorney Steve Klitzner. As always, if you have any questions, give me a call. The consultation is always free.
I’m tax attorney Steve Klitzner. It’s my job to protect folks with IRS
problems and to exercise their rights. Now a question that is often asked
of me is, “What is a federal tax lien?” Part two to the question is, “How
do I get rid of it?”
Well, first of all, a federal tax lien is what the IRS files in the county
where you live that’ll protect their interest. If you have any assets or
any property, it’ll attach to that property. It’ll also mess up your credit
pretty good. Sometimes it can lower it by 75 to 100 points.
Now there are some ways to get rid of a federal tax lien. In certain
hardship circumstances we can do it. But other than that, if we can get
your balance down to a certain amount of money, or if we get the tax paid,
I can get than lien withdrawn. Not just released, but withdrawn as if it
never existed. So we can restore your credit.
Give us a call. The consultation with me, personally, is always free. Till
next time, I’m tax attorney Steve Klitzner.
As tax season quickly approaches, many households across the country are beginning to gather up their relevant documents and plan their deductions. Filing taxes each year can be stressful. Errors can result in hefty penalties from the IRS and failing to properly document all deductions can cause people to have a much higher tax bill than they should. Here are the top ten tips to help people avoid making errors this year on their tax returns.
Those who know that they are going to be in the same or a lower tax bracket next year should consider delaying income, such as bonuses, until January to avoid extra taxes at least for this year.
Entering the wrong direct deposit number is depressingly common. Make sure that all numbers are entered correctly to avoid accidentally donating a refund or having it get completely lost.
While most people know that charitable donations are tax deductible, many do not realize that the type of donation makes a difference. For example, a donation of land can help people get the standard donation based upon the value of the land and help them avoid taxes on the profit.
Those who do work as a contractor need to be sure that they accurately tally all 1099 forms that they have received. The IRS also has a copy of these forms, and failure to properly declare income can result in a higher tax bill or even interest on the owed tax if the error is not discovered right away.
Those who have invested a considerable amount of money should consider speaking with a financial adviser or tax professional about selling the loser investments to offset investment gains. This can help lower the tax bill.
Everyone should be contributing the maximum amount to their retirement accounts, such as the 401(k) and Roth IRA.
This is another surprisingly common error. A social security number is vital for connecting all the records the IRS has on a person, so accidentally writing in the wrong number, or forgetting to write it all together, can drastically slow down a refund or even cause problems with the IRS.
Some people try to save money on their taxes while saving for a child’s education by placing investments in a child’s name, since these are not taxed at the same rate. Be careful, though, because once the child’s investments earn more than $2000, they are taxed the same as adults.
It might sound basic, but it is the most common mistake on a tax return. The problems it can cause range from not getting a full refund to having the IRS charge interest on unpaid taxes because of an incorrect income declaration.
The federal government offers a range of deductions for various ‘green’ investments, such as a new washer or windows. These appliances and fixtures not only upgrade the home, they also can count towards tax deductions.
Filing a tax return involves avoiding errors while also finding ways to maximize the potential refund. Taking the time to review these ten tips should help anyone avoid potential mistakes from years past and keep any difficulties with the IRS at bay.
Tax season is fast approaching, and so is the dread that goes along with it. While the tax code may seem like an endless collection of complicated regulations, lengthy forms, and confusing deadline, getting through tax season can actually be quite easy. All you need to do is carefully and methodically tackle each step of the process before moving on to the next step.
While you can start planning for tax season in December or January, you won’t be able to come up with more than a rough estimate until February. This is because employers have until January 31st to issue the forms that state your final income — W-2s for salaried employees and 1099s for independent contractors. Until then, you may want to start gathering your receipts for charitable donations, business expenses, and any other deductions you plan to claim.
Whether you like the Affordable Care Act or not, 2014 is the year it starts affecting your taxes. If you don’t have health coverage in 2014, you will be faced with a tax penalty. While this doesn’t affect your 2013 taxes, eligibility for subsidies is based on your 2013 income, and the enrollment period occurs during tax season. If you aren’t already on your employer’s plan, you have until March 31st to sign up for health coverage.
The IRS generally imposes a penalty if you owe more than $1,000 in taxes when you file your return. This usually isn’t a problem for salaried employees, who generally have their withholding set to high. If you are self-employed, have a small business, or have some other source of side income, you may need to pay estimated taxes to avoid a penalty. It’s too late for 2013, but find out if you’re paying enough now because the first estimated tax deadline for 2014 is April 15th.
Filing your taxes late can bring substantial penalties and interest charges. No matter how busy you are, make sure your tax return is in the mail by April 15th (March 17th for corporations) or you request the automatic six month extension. The deadline to pay your taxes is the same. If you’re unable to pay them in full, don’t delay filing — you’ll still be charged interest, but the late filing penalty won’t apply. Note: The six month filing extension does not extend the time you have to pay and any payments made after April 15th may be subject to interest even if you had a filing extension.
With tax season upon us and the government shut down looming in the rear view mirror, it may seem that tax payers are in for another surprise. With the 2014 tax season it is now more important than ever that tax payers be ready to face the changes and understand how they affect their own taxes.
Those small business owners are going to be hardest hit when taxes come around. One change that has the most buzz is of course the increase in tax rate for the top federal wage. The top rate has made a drastic jump from 35% all the way up to nearly 40% hovering around 39.6%. This could be a huge increase for some business owners. Those that make $400,000 as an individual and those that make $450,000 as a married couple will be taxed at the highest rate possible while those in the lower bracket may still be affected by the change. On top of the rate increase, small business owners will also have to contend with an upturn on the capital gains rate as well if they fall into the highest of the tax brackets. The rate has increased from 15% to 20%. Even more, some business owners may also have to contend with a new Medicare tax that could leave them reeling.
Another change that has popped up is the increase in standard deductions. Deductions were once $12,200 to $12,400 for married couples and $6,100 to $6,200 for single filers. This means that while it may seem easier to take the standard deduction, it may save more money and garner a larger return if deductions are itemized. These changes to standard deductions may affect your personal taxes and then again they may not. Taking the time to learn about the changes is the best way to determine if they are going to affect you.
Those that claim the earned income tax credit will be happy to know that the maximum credit has gone from $6,044 to $6,143. This means that those that are using the credit to help increase their tax return and to help make up for earning deficits during the year can now claim more on their taxes. A few other changes include an increase in personal exemptions ($3,900 to $3,950) and there will be various limits on itemized deductions that can be claimed.
All these changes are unique to each person filing. It is important that before filing, tax payers take the time to really look at what they are planning on putting on their return. It may be beneficial for those filing to take a moment to review all the new tax laws in an effort to familiarize themselves with the changes and to truly begin to understand how these changes affect them. It may even be beneficial to talk to a tax professional to learn a bit more about these changes.
The United States Supreme Court refused to hear a case brought by Amazon and Overstock.com challenging a 2008 New York law requiring online retailers to collect sales tax on purchases by New York State residents. The online retailers had argued that given the number of local jurisdictions with different sales tax rates, the law was overly complicated, unduly burdensome, and restricted the growth of online commerce. The law was upheld by New York’s highest court before the challenge was brought to the Supreme Court.
New York’s ruling went beyond a 1992 U.S. Supreme Court ruling requiring online retailers to collect sales tax in states where they have a physical presence. Under that rule, a retailer needed to have a physical store or office in a state to be required to collect sales tax. New York’s law included marketing efforts directed at a state and used affiliate marketing as a basis for establishing the company’s presence in a state.
In affiliate marketing, marketers are paid a commission on purchases made after a customer clicks a link from the affiliate’s site. Affiliates often consist of small websites with little oversight by the online retailer.
New York said the goal of its law was to restore a competitive balance between online and brick-and-mortar retailers. Many states have similar laws, and although the states that collect sales tax require residents to pay tax on online purchases, the reality is that if the sales tax is not collected at purchase, the residents do not later pay it.
By declining the case, the Supreme Court allowed all states to continue making their own laws regarding the collection of sales tax online. Congress could use its powers to regulate interstate commerce to enact changes, but appears inclined to allow states to pass their own laws. Earlier this year, the Senate passed legislation making it easier for states to collect sales tax on online purchases.
The court’s ruling leaves online retailers across the country faced with processing sales tax for every jurisdiction that collect sales tax. With tax rates differing by county or municipality, this is no easy task. Zip codes often span multiple sales tax rate zones, and there is no easy way for online retailers to determine the proper tax rate. Even if the location could be accurately determined, online retailers would still be required to pay each entity as well as keep up with any rate changes or tax holidays.
Consumers can expect to pay sales tax on all online purchases in the near future. With the largest retailers, such as Amazon and Overstock, already charging sales tax, “tax-free” options are fast disappearing. New laws making the collection of sales tax easier would eliminate any argument against requiring smaller retailers to also charge sales tax. The only good news may be that if the laws become widespread, consumers won’t have to fear that retailers might refuse to service their state because its laws are too strict.
If you’ve never been through an IRS tax audit, you probably have some common misconceptions about what actually triggers an audit. Ask ten people what they think would cause an IRS audit and you would probably get ten different answers. Therefore, we thought we would take a few minutes to clear up a few common myths and misconceptions about what does and does not trigger an IRS audit.
The process in which the IRS determines which returns should be audited has nothing to do with the way you chose to file your return. E-filing could actually reduce the chances that your return will be audited due to the fact that electronically filed returns are usually more accurate; therefore, if you e-file, your tax return is less likely to trigger an IRS audit.
Many people believe that their Social Security benefits are not taxable. However, that’s not always the case. There are certain income levels that, if exceeded, will require the taxes to be paid. If the bulk of your retirement income is from your Social Security benefits, you won’t have to pay taxes. However, if you receive income from other sources as well, up to 85% of your social security benefits could be taxed.
Some people believe that if they file for an extension, they will draw attention to themselves. Extensions were designed to give taxpayers, who file an extension, an additional six months to complete their returns. There’s no definitive proof that filing an extension triggers an IRS audit. Additionally, it’s possible that filing an extension could actually lessen the likelihood of an audit because you won’t be as rushed to complete your taxes and therefore fewer errors are likely to be made.
Unfortunately, this is not true. Everyone must pay their taxes by April 15; otherwise, you will have to pay interest and penalties. You can pay your taxes by estimating what you anticipate owing then you need to go ahead and submit your estimated tax payment for that amount. This payment should be included with your file extension request and it should be submitted on or before April 15.
Due to the ever-increasing tax laws and the fact that they’re so difficult to understand, it’s no wonder there’s so much confusion. And that’s exactly how myths and misconceptions get started. When it comes to your taxes, it’s imperative that you understand what’s required of you. The best thing to do if you don’t understand what your rights and responsibilities are is to contact a professional tax consultant and pay for a private consultation or you can call the IRS directly. But whatever you do, don’t assume you know what’s right and what’s wrong. You need to be sure.