Deceptive TaxMasters Firm Mishandles Clients’ Taxes

Posted on March 22, 2012 by Kursti Nakagawa

When choosing tax expert for your personal tax preparation needs or a business tax specialist for business tax preparation, it is highly important to choose a proven tax advisor with expertise in tax settlements and favorable reviews from previous clients.

This is what clients of TaxMasters, a recently bankrupted tax preparation company in Houston, Texas, learned after trusting their tax returns to this company, who had broadcast a nationwide commercial promising to settle tax debt for less. The State of Texas is suing Tax Masters because they advertised free consultations with a tax specialist, but calls were actually received by salespeople not qualified to give help with taxes. This would be a violation of the Texas Deceptive Trade Practices Act. TaxMasters may have delayed submitting clients’ taxes until all fees were collected from them. This was resulting in missed tax deadlines, incurring fees and interest owed to the IRS.

This recent blog on ProfessionalTaxResolution.com describes how to choose a tax settlement professional. For your business tax preparation needs, here are tips for selecting a business tax resolution specialist.

It is very important to know you are speaking with a tax professional and not a salesperson when you handle your taxes to avoid costly mistakes and deceptive practices. If you have trouble paying your taxes all at once, options like installment agreements through the IRS can split up the sum into more manageable monthly payments. An offer in compromise can also be reached, where taxpayer’s tax liability is settled for lower than full amount that is owed.

If you are in need of any type of tax settlement services or have tax debt, the qualified 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.

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.

Tips for Taxes on Frequent Flier Miles

Posted on March 8, 2012 by Kursti Nakagawa

Did you know that you could be taxed on your frequent flier miles? That’s what thousands of Citibank customers learned when they received a 1099-MISC from Citi, which reported their miles as income to the IRS. These miles would have to be reported on their tax returns, or they could risk getting a notice from the IRS.

Understandably, some customers who were notified that 30,000 miles was considered $750 of income were furious and shocked that the bonus miles they earned from signing up for a Citibank credit card could be taxable. Some even asked to have miles canceled and were told by Citibank that they should have asked before the end of 2011, even though customers were not aware of this tax liability until they received the form.

Frequent flier miles can be categorized in a six ways, but here is what it boils down to: rebates (not taxable), promotions (taxable), or prizes (taxable). Rebates aren’t taxable because they are seen as a purchase price reduction. However, promotions, such as those bonus miles for signing up for a card, and prizes, such as winning free miles from a sweepstakes, are considered income.

The IRS hasn’t given definitive rulings outlining how frequent flier miles should be treated, but here are some general guidelines from industry experts:

Miles earned from travel are considered a rebate.
Miles earned from purchases on a credit card are considered a rebate.
Miles earned from business travel are not taxable according to a 2002 IRS ruling.
Miles earned from opening a credit can be considered a taxable promotion. However, some credit card companies consider it a rebate since there are spending requirements or annual fees associated with signing up.
Miles awarded for deposits to a mutual fund can be considered a promotion. While there is no definitive law, private-letter rulings have been found declaring that these miles are taxable.
Miles awarded from a sweepstakes are a taxable prize. Some winners have actually rejected their miles so they wouldn’t have to pay the taxes on them.

If you receive a tax form, it is very important to make sure that you take it into account when you are filing taxes, because this income has been reported to the IRS. Failure to do so could lead to tax debt, back taxes with interest, and penalties.

It can be confusing when you receive a surprise tax form. If you want to avoid mistakes while filing your return, or you have already filed and need an amended return, the tax professionals at professionaltaxresolution.com can help with your tax settlement. They have the expertise to help you navigate the intricacies of tax laws and regulations. If you need help with tax resolution, contact us at (877)-889-6527 or email 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.

Tax Refunds May Be Delayed This Year

Posted on February 27, 2012 by Kursti Nakagawa

The IRS website “Where’s My Refund” for checking refunds is up again after being down for the better part of a week. The website was back in action about midday last Wednesday after being out of service since Feb. 15.

Taxpayers who had received IRS acknowledgment that their tax returns were being processed were startled when they visited the website during the week and got a message that the IRS had no information regarding their return.

The IRS said it was an error message and that if the IRS said the filing had been received, it was being processed.

With the “Where’s My Refund” site back up, you can now check the website 72 hours after your e-filed return has been accepted to see the status of your refund. Those who mail in their returns can check four weeks after they send in their signed return.

The IRS did not say exactly what the problem was, but issued this statement:

“As with the start of any tax season, there were system validations that occurred requiring some fine-tuning of our systems. As part of this, in January, the IRS announced that some taxpayer refunds could be issued approximately one week later than initial projections they may have received, but these refunds were still in line with historical refund delivery times.”

The IRS said in most cases, it issues refunds 10 to 21 days after a return is received.

If you have tax debt issues and need help with tax settlement, our experienced tax professionals can provide you with the tax help you need. Our tax specialists can help you get your maximum refund and help you with back taxes owed. For more information about our tax debt resolution services, visit us today at professionaltaxresolution.com. Contact us by phone at (949)596-4143 or by email at info@protaxres.com to receive a free, no obligation consultation.