The Wealthy are Still Spending after Tax Increase

Posted on April 10, 2013 by Kursti Nakagawa

Wealthy Still Spending After Tax Increase

The fiscal cliff was the big story in the news recently. One of the major debates was that the wealthy were to be taxed more. Prior to January 1, 2013 it had been proposed that if the wealthy were heavily taxed that this would stop the economy from moving forward. A recent poll shows that this may not be the case.

A new poll is showing that most of the Americans that make $500,000 or more a year (this is the group that is paying the higher income tax rate) have said that the tax increase has not affected their spending. It seems this group is still spending the same amount on charitable contributions, investment plans, and overall spending.

The poll was reported by the Shullman Luxury and Affluence Monthly Pulse, which is a division of a research center that studies the spending habits of the wealthy. The report discovered that 55 percent of taxpayers that made over $500,000 or more said that the tax increase had not affected their spending plans. Meanwhile the poll also showed that 61 percent of people that make $250,000 or more also stated that the tax hike had not affected their spending either.

The poll also showed that in regards to investing, 59 percent of those making $500,000 said the tax rate increase had not affected their investment strategies. Meanwhile 64% of the people that make $250,000 or more a year also had not changed their investment spending. Lastly, the poll also proved the wealthy are still donating the same amount to charities as well. The study shows that 55% of those making $500,000 or more are still donating the same amount to charity, meanwhile 62% making $250,000 or more are also still donating the same amount as well.

There are still however some wealthy that have changed their spending due to the tax increase, but they are in the minority. The study also indicates that the wealthy have mixed opinions on the condition of the economy. About a third of the people are optimistic about the future of economy, meanwhile a third of these wealthy individuals seem to be pessimistic on the economy. Overall, the study shows that business owners seem to be more optimistic than non-business owners.

The research center is also showing that wealthy women seem to be more pessimistic on the economy. The poll discovered only 21 percent of women were confident of the economy, meanwhile 46percent of the men were encouraged by the state of the economy.

It is a positive sign for the economy that the higher income individuals spending habits remain the untouched due to the tax increase. The majority of the rich are able to pay more in taxes, spend the same on investments, charitable contributions, and overall spending patterns remained untouched.

If you have tax any questions or tax debt you are unable to pay, our tax settlement professionals are happy to discuss your tax resolution options free of charge. For more information about our services, visit us today at www.professionaltaxresolution.com. With over 16 years in the business of resolving tax debt, we have a thorough understanding of tax law together with the experience to know which settlement option will be the best fit for your specific set of circumstances.

For more information about our tax debt resolution services, visit us at www.professionaltaxresolution.com. Contact us by phone at 877.889.6527 to receive a free, no obligation consultation

Professional Tax Resolution – A Good Choice for Your Tax Settlement Needs

Posted on March 16, 2012 by Kursti Nakagawa

The tax specialists at Professional Tax Resolution are a good choice for resolving your tax settlement issues. They are:

Licensed The tax resolution professionals at Professional Tax Resolution are Certified Public Accountants and Enrolled Agents. These are the only tax specialists who can represent you before the IRS on all tax issues, not just returns they have personally prepared.

Experienced The tax specialists at Professional Tax Resolution resolve tax debt issues for both individuals and businesses all day, every day. Because tax settlement is their only focus, they know how to successfully negotiate with the IRS to achieve the best tax resolution outcome for each client.

Knowledgeable The tax specialists at Professional Tax Resolution are familiar with all of the available tax settlement options and are well equipped to select the one that best fits each client’s specific situation to help with tax resolution. They have a thorough understanding of tax law and the experience to use this knowledge to successfully resolve any tax debt issue.

Honest and Ethical The tax specialists at Professional Tax Resolution are honest and ethical. They thoroughly analyze each client’s tax debt situation and provide a realistic evaluation of what type of tax settlement the client can expect. They never make extravagant promises they know they cannot keep.

Proven with a Great Track Record The tax specialists at Professional Tax Resolution have an established record of past accomplishments. Stories of past successes can be read on their website at professionaltaxresolution.com. Reviews can be found on numerous rating sites including Yelp and Merchant Circle.

If you have an outstanding tax liability, visit us today at professionaltaxresolution.com. With over 16 years of experience, our licensed tax professionals have the knowledge and experience necessary to provide you with the best tax settlement help available. Contact us today at (877) 889-6527 or info@protaxres.com to receive a free, no obligation consultation.

Choosing a Tax Settlement Professional

Posted on March 4, 2012 by Kursti Nakagawa

The help of a qualified tax settlement professional can be an invaluable asset in attempting to resolve any type of back tax issue. However, the selection of a reputable tax professional can be a difficult task in itself. It is important to verify any advertised credentials before hiring because many individuals and companies who advertise tax settlement services are actually marketing agents and salespeople with no professional qualifications. Tax law is so complex and the policies and procedures of the IRS are so complicated that it takes an individual who is both knowledgeable and experienced to successfully negotiate a tax settlement agreement.

Some things to look for:

Select a well established individual or firm, one that is likely to still be around to answer questions after the return has been filed.
Select an individual or firm with a verifiable physical address.
Search the internet to make sure there are no registered complaints about the professional under consideration.
Check out available references, reviews, and ratings from the local Better Business Bureau.
Choose a professional who specializes in tax settlement issues. Such and individual will be the most familiar with all of the tax settlement options available and will have experience in negotiating tax settlement contracts with the IRS.
Select a tax settlement professional with a verifiable licensing history. Certified Public accountants, enrolled agents, and attorneys are the only individuals who can represent taxpayers before the IRS in matters other than returns they have actually prepared.
Select a tax settlement professional who is affiliated with a professional organization. Such organizations hold their members to a code of ethics and provide opportunities for continuing education.

Some things to avoid:

Avoid tax settlement professionals who make extravagant promises about the percentage of tax debt they can eliminate.
Avoid tax settlement professionals who base their fees on a percentage of the amount of the settlement they obtain.
Avoid tax settlement professionals who have no verifiable licensure or physical address.
Avoid tax settlement professionals who are unwilling to sign the returns and agreements they prepare.
Avoid tax settlement professionals who have negative reviews, a history of registered complaints, or low ratings with the local Better Business Bureau.

Many taxpayers are slow to resolve their back tax issues and contact a professional only after making numerous attempts to resolve a tax debt on their own. These attempts have often been unsuccessful because the IRS is made up of many unconnected departments with specific functions, making the system difficult for an inexperienced individual to navigate. In addition, while IRS employees are generally very knowledgeable, it is their job to collect taxes rather than to act as an advocate for the delinquent taxpayer. A tax settlement professional will be experienced at negotiating with the IRS and will know how to communicate with them effectively on the client’s behalf.

If you are in need of any type of tax settlement services or have tax debt, the tax specialists at Professional Tax resolution can provide you with the help you need. Because our professionals are familiar with all of the available tax settlement options and are experienced at negotiating tax settlement agreements with the IRS, we can ensure that you will receive the maximum tax advantage for your specific financial situation. For more information about our tax settlement services, visit us today at professionaltaxresolution.com. Contact us by phone at (877)-889-6527 or by email at info@protaxres.com to receive a free, no obligation consultation.

IRS to Fingerprint Tax Preparers and Require PTIN to be Renewed Yearly.

Posted on September 28, 2011 by Kursti Nakagawa

We have many clients who come to us with huge tax debts that have resulted from errors or miscalculations on prior year returns. Sometimes these tax filing errors flag an audit or create what might start off as a small tax liability but after years of penalties and interest becomes a much bigger problem. Of course, we wish no one had to experience this in the first place but unfortunately until now there has been some leniency in the educational and documentation requirements for some tax preparers.

Luckily Uncle Sam also wants to be sure that whomever you trust to prepare your taxes also understands the increasingly complex tax code. While CPA’s like those at our firm have extensive licensure oversight, continuing education and years of experience, not all general tax preparers do. To overcome this, the IRS has just announced they are taking steps to begin fingerprinting all tax preparers and are stepping up educational requirements.

In addition to acting as proper Identification, the fingerprints will also be run through the FBI database. This will help identify any unscrupulous characters. Perhaps even more importantly is the new obligation for tax preparers to renew their Preparer Tax Identification Numbers (PTIN) every year in accordance with Notice 2011-80 and undergo a 15-hour continuing education requirement. All of this is set to take effect next year.

Up until now, the IRS had been issuing provisional PTIN for preparers who are not attorneys, CPA’s, accountants or enrolled agents. That former flexibility allowed others to prepare tax returns before taking competency tests and undergoing suitability requirements. This was partially because the testing and continuing education programs had not been implemented yet, but as of next year, this will finally be the case.

Before you hire anyone, we recommend checking their licensure and checking with the Better Business Bureau. Read reviews and understand the details of any services for which you are hiring.

At Professional Tax Resolution Inc. our CPA’s and EA’s are proud of our reputation. We welcome you to look up our license and review our A rating with the BBB. We have links to a variety of unbiased review sites including Yelp, The BBB, and Merchant Circle readily available on our home page.

Call us today for a free, no obligation consultation. No matter how worried you are, no tax issue is too complex! (949) 596-4143 or toll free (877)-889-6527

Amazing Tax Settlement – $1,600,000 Tax Debt Reduced to Zero!

Posted on July 14, 2011 by Kursti Nakagawa

Karen M. was recently divorced and owed the IRS over $1,600,000 for a joint IRS liability she had incurred with her ex-husband. The debt had accumulated over many years and, as is usually the case, included a significant dollar amount of assessed penalties and interest. The taxpayer was newly single, lived on a modest income and had no possibility of settling the debt owed to the IRS. After looking at the taxpayer’s situation and all of the available tax settlement alternatives, we determined that filing for Innocent Spouse Relief gave the taxpayer the most realistic chance of one day being free of the tax debt.

Innocent Spouse Relief provides a taxpayer relief from tax debt if their spouse or former spouse failed to report income, reported income improperly or claimed improper deductions or credits. While the benefits from obtaining this tax settlement option can be significant, it is usually difficult to obtain. Generally, a taxpayer requesting Innocent Spouse Relief must claim and document that he or she had no knowledge of the unreported income and did not receive the benefits of that income.

In the case of Karen M., we were able to provide documentation demonstrating that our client had no knowledge of the unreported income and had limited involvement in the financial matters of the family. We were also able to prove that she did not receive the benefits of the income that was never reported and that the non-innocent spouse had a history of hiding income from both her and the IRS.

Professional Tax Resolution and the taxpayer were thrilled when a letter was received from the IRS indicating that the Innocent Spouse filing was accepted and that the $1,600,000 tax debt was reduced to zero. This is another good example of why CPAs, Enrolled Agents, and Attorneys are often so passionate about what they do. In most cases there are tax settlement options available even in the most complicated situations.