Author Archives: Kursti Nakagawa

IRS Announces Extra Time for Boston Taxpayers

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Boston Taxpayers Given More Time

We would like to take a moment and think about the people in Boston affected by the Marathon bombing on April 15, 2013.

 The IRS made this announcement following the explosion:

 “Our hearts go out to those affected by the terrible tragedy. Boston-area taxpayers need time to finish their tax returns without worry. The IRS will be providing individual tax filing and payment extensions.”

 The IRS later on reported that it would give Boston taxpayers and others affected by the explosion a three month tax filing and payment extension.  The relief will include all individual taxpayers that live in Suffolk County, Massachusetts. It will also include the victims of the bombing, their families, the first responders, and any tax preparers affected.

 The new relief will give these people until July 15, 2103 to file their 2012 returns and pay any taxes that were due on April 15, 2013. The IRS states that no payment and filing penalties will occur as long as the taxes are filed and paid on July 15, 2013.

 Those living in Suffolk County do not need to do anything. The IRS is automatically providing the extension to these people. However, other individuals who were affected by the bombing will need to call this number 1.866.562.5227 starting Tuesday, April 23rd. Eligible filers who receive penalty notices can also call this number to have the penalties abated.

 If any of these eligible taxpayers need further time they may be granted until October 15, 2013 to file their returns. They will need to file Form 4868 by July 15, 2013.

 For further tax updates please go to www.professionaltaxresolution.comor call us at 877.889.6527 for all of your tax needs.

 

Tax Day Freebies!

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Tax Day Freebies!

April 15, 2013 is here and upon us! If you have already filed your taxes you can breathe a deep breath and take advantage of the following offers. If you still are in the process of filing your taxes, you only have a few more hours to go. Or you can always file for an extension………Here are today’s Tax Day Freebies!

Here are a few Tax Day Deals for today:

  • 15% off of food at PF Changs
  • Two free cupcake bites at Cinnabon
  • Buy one drink and get one drink free at Jamba Juice
  • Get a free taco at El Pollo Loco
  • Kids eat free at participating IHOP.
  • Arbys’s is having its 3rd annual free curly fry day!
  • Panda Express-Get a free Samurai Surf & Turf on April 17 when you bring in their Facebook coupon to participating stores.

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.

 

The Wealthy are Still Spending after Tax Increase

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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

 

 

 

 

Dirty IRS Scams Released for 2013

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IRS Releases 2013 Scams

 

The IRS started the 2013 tax year on high alert for fraud. The previous years have shown an increase in identify theft and taxpayer fraud.  To keep the public better protected, the IRS issued its list of the top fraud offenses for 2013. They have aptly named the list “The Dirty Dozen Tax Scams.” Tax fraud occurs year round but the IRS sees higher spikes of cases during tax season.  The types of tax fraud range from identify theft to tax preparer fraud.  Here are some of the scams that the IRS is warning the public about.

Identity Theft:

Identity theft has been an ongoing issue for the IRS with recent spikes over the last few years. As a result of increased cases, the IRS has developed an extensive program that concentrates on apprehending, detecting, and assisting the identity theft victims as soon as it happens. The law authorities have been alerted and the IRS has summoned a special committee that is looking closely at the returns for any cases of fraud before any refunds are issued. The IRS is also actively working on assisting the victims of any type of tax identity fraud.

The top identity theft cases the IRS is seeing involve the thief using the taxpayer’s legal name and personal information to file a fake tax return and then claim a fraudulent refund.  This is usually noticed when the actual taxpayer goes to file their tax return and the IRS informs the taxpayer they have already filed. A person usually finds out that they have become a victim of identity theft when they receive notification from the IRS or wages from and employee they have never heard of. The IRS is urging anyone who is suspicious of such a crime to call the IRS Identity Specialized Unit. For more information, please visit the IRS website https://www.irs.gov/uac/Indications-your-identity-may-have-been-stolen-and-how-to-report-it-to-us.

Fraudulent Tax Preparers:

Most taxpayers will use tax preparers that are professional, honest, and ethical. Unfortunately, however, there are dishonest individuals out there who claim to be tax preparers while their real motive is to take advantage of unsuspecting people.

These unethical tax preparers target clients by offering refunds “no matter what” or claiming overestimated refund amounts.  They may also take money out of the refund or charge unusually high fees for their services. It is important to note that many complaints of fraudulent tax preparers have been filed and the Federal Courts and the Department of Justices have issued numerous injunctions ordering such preparers to cease filing returns. For these reasons, it is very important that taxpayers carefully select their taxpayer.

In 2012, the IRS made it mandatory that every tax preparer have a Preparer Tax Identification Number (PTIN). This number must be entered on all of the returns that the tax preparer prepares.

 

Phishing

This form of tax fraud involves phony websites claiming to be real that collect personal information or send unsolicited emails pretending to be the IRS.  The victims then provide their personal and financial information for the criminal to commit identity theft or financial theft. It is important to remember that the IRS does not email anyone! If you have received such emails it is important to contact phishing@irs.gov.

This is only a brief list of the dangers to be aware when filing your taxes this year. For more information, go to https://www.irs.gov/uac/IRS-Releases-the-Dirty-Dozen-Tax-Scams-for-2012.

 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

 

 

 

 

 

Federal Employees and Growing Unpaid Taxes

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Federal Employees and Unpaid Taxes

 

Currently in the United States there are about 9.8 million people employed with the federal government. A growing percentage of these employees are delinquent on their taxes.  It seems workers including Social Security Administration, Homeland Security Administration, U.S.Postal workers, Departments of the Navy, Army, and Defense, among others owe the government about $3.5 billion in unpaid taxes for the year of 2011. This number is up from previous years.

On March 8th the Federal Employee/Retiree Delinquency Initiative (FERDI) released the information that about 312,000 workers owe the government a total of $3,519,410,517. The U.S Postal service owes the most at $215.2 million of unpaid taxes. Congressional staffers owe a $10.8 million dollar debt; meanwhile there are 40 employees of the Executive Office of the President that owe over $330,000.  Active duty military members are also included in the debt and owe about $110 million in unpaid taxes.

It may be noted that the delinquency rate for the public is much higher in comparison to federal employees. The rate for the public is 2.5 times higher than federal employees.

The IRS does place a top priority on going after federal employee tax cases, so these cases will most likely be worked out. Most federal employees file correct tax returns, but they cannot pay the full amount of taxes that they owe. These federal workers can simply apply for a payment plan like other non-federal employees.

Legislative bills have been introduced to try and curb “seriously delinquent tax debts” among federal employees.  Right now the only employees who can be fired for having a very late tax bill are IRS workers. However, if the Federal Employee Tax Accountability Act of 2013 passes, certain federal workers could be fired and applicants denied jobs if they have “serious delinquent tax debt.” Of course, if in some cases there is a financial hardship, then a federal worker could remain an employee in a case by case basis.

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