The Blog

Do you want to make more money and save for retirement? According to Business Insider, it seems it pays more to be more married than single.  The report states that the percentage of Americans that are single has doubled since the 1960s. (Phentermine) Meanwhile, it also seems that these individuals are paying more money for their single status. In comparison to married couples singles spend more on health insurance, food, housing, and taxes. Singles also make 25% less than their married co-workers, when health care and retirement plans are taken into consideration. As far as saving for retirement a recent study showed that 85 % of married Americans have a retirement plan, meanwhile only 67% of singles have a plan. According to the study it … Continue reading →

 Do you owe previous years taxes? Here are some simple facts for filing back taxes. Each year most people file their individual tax returns or pay all their back taxes by April 15th. First of all, if you have not filed your return(s) you will have additional interest and penalties to pay. However, if you owe back taxes and need help, an Enrolled Agent or Certified Public Accountant (CPA) can assist you. Here are some steps you can take to help you pay and file your back taxes. 5 Helpful Tips for Filing and Paying Back Taxes Collect all of your documents together.  If you are missing any copies of previous tax returns simply ask the IRS for copies, it is free. Select a Tax … Continue reading →

The Supreme Court recently settled a divided debate when it ruled that the Patient Protection and Affordable Care Act (PPACA) individual mandate is constitutional and that the “shared responsibility payment” is a tax. How will this affect you? History Beginning in 2014, the PPACA will require individuals to carry a minimum healthcare coverage for themselves and their dependents or they will have to pay a fee which is called a “shared responsibility payment.” Before the Supreme Court decision was made, the first definition stated the shared responsibility payment was a “penalty” for people who decided not to purchase health insurance under the required mandate. In this decision the Court decided that the mandate was constitutional because the payment was included in Congress’ immense power to … Continue reading →

The IRS constantly researches areas it needs to analyze and focus on each year. We are coming up to the start of the government’s fiscal year on October 1st, and the government has already announced areas that it will focus on for the coming year. When it comes to compliance, the IRS has begun to look closely at small business underreporting. Small business underreporting is responsible for 84% of the $450 billion tax gap. Below are some of the major highlights discussed by the IRS at the national and regional tax forum held this summer in regards to small business audits.   Correct work reclassification Business classification can be an important interest to the IRS. The IRS realizes that businesses tend to incorrectly classify workers as independent … Continue reading →

The Taxpayer Advocate Service (TAS) is altering the measures it uses to accept cases from taxpayers that are having difficulty dealing with the Internal Revenue Service to lighten its caseload. The TSA has restricted its case admission criteria as budget cutbacks are taking a toll on the IRS. The IRS sent a recent email to tax professionals. “The Taxpayer Advocate Service is designed to be a “safety net” for taxpayers who are experiencing problems with the IRS. However, because TAS cannot help all six million to twelve million taxpayers who may be having problems at any given time, it must focus on cases where it can add the most value.” The email was then linked to a document listing four categories the TAS plans to … Continue reading →

The IRS has now made some new changes in its letter -forwarding services.  Under this new approach, the IRS has recently stated that they will not provide letter –forwarding services to locate a taxpayer that may be owed assets from an individual, company, or organization.  This is important news for missing taxpayers that may be entitled to a retirement plan or other financial benefits. From now on the IRS expects individuals and companies to use the internet, such as missing person locator services, to find missing tax payers. Due to current budget constraints, the IRS has decided to halt the letter-forwarding program “AKA –free detective services.” “Since the release of this revenue procedure in 1994, several alternative missing person locator resources, including the internet, have … Continue reading →

    An audit can be both an alarming and bothersome time for a business. Here are some simple and helpful steps from the Commissioner of the IRS to make the process go as smoothly as possible. These suggestions are especially useful to small and medium sized businesses. How to Maneuver the Audit Process: 1. Gather your Workplace Organization – Upon receiving the notice, immediately meet with your employees, tax professionals/CPA, and other involved groups. Also, thoroughly examine all documents. It is vital to be prepared in a timely and organized fashion for your first meeting. First impressions can be critical. 2. Courtesy to the Agent – Keep in mind IRS agents have a challenging job. If the agent is treated respectfully, they are more … Continue reading →

The bipartisan tax code signed by President Reagan in 1986 set both income tax and capital gains rates at 28 percent. Since that time, increases in income tax rates together with reductions in capital gains rates have resulted in the 20 percent margin between the two rates that exists today. The capital gains tax rate is scheduled to increase on January 1, 2013 which will reduce that margin to 15 percent. President Obama is in favor of this increase while presidential hopeful, Mitt Romney, is against it. In addition, Obama is in favor of raising ordinary income tax rates while tax settlements Romney is in favor of decreasing them. Any of these proposed changes will be significant and are certain to be taken in to … Continue reading →

As unemployment and the economy continue to loom over America, you may be tempted to cheat on your taxes since what you owe seems like too much to pay. This is never a good idea. With penalties, fees, interest, and in extreme cases, jail time as possible consequences, cheating on taxes is simply not worth it. If you do have issues with paying and need tax settlement help, consulting a professional on a legally maximizing your deductions or setting up payment plan is a far safer option. Here are 5 common tax deduction cheats that the IRS looks for: Commuting Costs associates with going to and from work can never be deducted, even if your workplace is hours away. The burden of an expensive commute … Continue reading →