Millions of people use their computers for shopping, playing games, playing the stock market and just making money with online stores. Because we use technology so much there are people out there lurking trying to steal your identity, clean out your bank accounts and max out your credit cards. Someone with nothing better to do decided to create a website that use to look like the IRS website are sending out bogus emails to unsuspecting hard working people pretending they reviewed their account and they are going to receive an additional stimulus of hundreds of dollars.  

They proceed to ask for some personal information such as:  

·         Social Security Numbers  

·         Debit Card Information  

·         The three digits on the back of your debit card  

·         Drivers License Number  

·         Checking Account Number  

·         Routing Number  

I don’t know about you but just those six things had my antennas going up saying FRAUD. There were more but I won’t list them all here. The IRS will never ask you for all this information. If you receive one of these emails please contact the IRS or your Tax Preparer before responding.  

Technology is great when used for its intended purpose and not trying to rob innocent people. They also indicated that they were tracking you IP address for identity purposes.     

Ok, I just wanted to informed the public again with times getting hard, the job market not so good people are taking their fate in their own hands at the expense of someone else. Beware of all scams not just this one.  

We are here to help you with your Tax Problems, Tax Planning, Tax Preparation, Sales & Use Tax, Offer In Compromise (OIC), Tax Agreement. Call us at (310) 219-2078 or visit our website at http://www.promptbookkeepingtax.com

Be Organized

The process of being organized isn’t supposed to start when you start filing your taxes. It should be a year-long process of keeping your pay stubs, receipts and W2s in separate folders, and keep them somewhere that will not only be undisturbed by your daily routines, but also a place that you can easily remember.

Don’t Procrastinate!

I know that it is easier said than done, but try to get your taxes done as soon as possible. That way, if there are any mistakes or missing documents, you will have plenty of time to correct them before you become late on your taxes.

The Paperwork

When you are employed, on the first day the company will hand you a W4. This tells the IRS how many deductions and exceptions you have, and whether you’re filing as a single or joint tax return. In the beginning of the year, your company will send you a W2, stating how much money you’ve made the previous year and how much has been deducted for state and federal taxes. The 1040 form is used to file your federal income taxes. The first page contains information about the tax-payer, such as address, SSN, income, dependants, and adjustments. The second page calculates these adjustments. If you are filing a single tax return, and you have only one job and make under $100,000, you probably qualify to use the easiest 1040 form, called 1040EZ. If your taxes are a little more complex, you may want to choose the 1040A, which offers more questions to suit your specific tax needs.

Double Check!

Make sure to double and triple check your numbers, especially if you’re getting close to April 14th. Mistakes could cause you to be late in filing your taxes, which can lead to fines and other punishments. Make sure you verify your work not only against a calculator, but also have another trusted person look over it as well.

Hire an Expert

From Washington to Maine to Louisiana, CPA firms are in business to help you with your taxes. If you want the guaranteed peace of mind of knowing that your taxes are being filed correctly, and also that you are getting the most money back from the government as possible.

From Washington to Maine to Louisiana, CPA firms are in business to help you with your taxes. If you want the guaranteed peace of mind of knowing that your taxes are being filed correctly, and also that you are getting the most money back from the government as possible.

One of the most famous quotes in American history is attributed to Benjamin Franklin, who remarked that “nothing can be said to be certain, except death and taxes”. Every adult in America knows that tax time will once again strike like clockwork come April, but few people prepare throughout the year. As April descends upon us, the local news is full of stories of people rushing at the last second to submit their tax forms.

And for every person who manages to get there taxes in at the last second without problems, just as many find themselves faced with the threat of audit or penalties. Why avoid the inevitable? By constructing a manageable plan now, you can prepare for tax day throughout the year and save yourself a headache (and money!) down the line.

Whether you are preparing personal income taxes or taxes for your business, there are a few steps you should take along the way to save time later. The first, most basic step is to keep track of all income throughout the year.

Even if you expect that your employer will provide you with tax forms at the end of the year, you should be keeping your own records to insure that your records match your employers. This will help you to find errors quickly and manage your finances and tax withholdings throughout the year.

It’s also absolutely essential to set up a system for saving your business and charitable receipts throughout the year. An inexpensive binder and a number of clear plastic sheets may be able to help you keep your receipts organized throughout the year. It’s also a good idea to keep a ledger inside the binder, to remind yourself of what the events to which the receipts correspond.

With all of the research work done ahead of time, many of the important steps to doing your business and personal taxes are behind you. Now, it may be time to consult a professional tax service, even if tax day is months off. They can help you to track your expenses, make sure your withholdings will be enough for your needs, and help you find tax deduction opportunities throughout the year.

As the D day comes closer, they will be able to provide and collect the forms necessary to help you complete your business and personal tax filings. Even if you choose to do your taxes yourself, there are many professional tax specialist you can still talk you through some of the pitfalls while making sure you have the right forms to minimize your liability.

Don’t fight the inevitable, plan for your taxes today!

Whether small or large business, for matters pertaining to tax preparation, New Orleans based tax and business service professionals have the right amount of expertise to guide you through the process. To learn more about their services, visit http://www.asu-llc.com

When donating a vehicle to charity there are certain IRS rules and regulations that must be followed.

First, for vehicle deductions of more than $500 you are required to attach the charity’s acknowledgment of receipt to your return for the year of the donation, even if the vehicle is not sold by the charity during that same year. The charity must provide you with that written acknowledgement within 30 days after the vehicle donation. If you receive the charity’s written acknowledgment after filing your tax return for that year, you may file an amended return and claim the deduction on the amended return. In that instance you must attach the acknowledgment to the amended return.

Second, the charity’s written acknowledgement form must contain the amount of the gross sales proceeds. It is generally this figure that will be used when determining your deduction amount. Please note however that if the charity significantly uses or materially improves the vehicles, they must certify both the vehicles intended use and duration of that use. If the charity does in fact significantly use or materially improve the vehicle, then you may deduct the vehicle’s market value as opposed to the gross sales proceeds amount. If you have any questions about this a quick call to the IRS can help.

As a matter of fact, when attempting to calculate the vehicle’s market value you should consult IRS publications 526 – Charitable Deductions and Publication 561, “Determining the Value of Donated Property.” Remember that when the IRS is considering a vehicle’s fair market value it takes into account more than just the book value of the car. It considers other factors, including the vehicle’s condition, which could actually lower the book value of the vehicle.

Third, in order to claim a vehicle donation you must itemize your deductions. The decision to itemize your deductions is usually determined by whether your total itemized deductions are greater than the standard deduction afforded to you for that tax year. Your tax preparer can assist you with determining this. If you prepare your own taxes using tax return software, most software programs have guidelines you can consult.

Fourth, make sure that the organization you are dealing with is a legitimate 501 (c) 3 by calling the IRS customer service hotline at 1-877-829-5500 and requesting Publication 78. Publication 78 is an annual government publication that identifies organizations qualified to receive deductible contributions. Changes made between publications can be found online at
http://www.irs.gov/charities, where this is also a list of eligible organizations not listed in Publication 78 and those organizations that have had their tax deduction status revoked. If you don’t have time to wait for Publication 78 to arrive in the mail, the folks at customer service can check an organization’s status for you over the phone.

In conclusion, though often complicated, IRS rules and regulations regarding charitable vehicle donations are available for the asking. Remember, the only stupid question is the question you fail to ask. When contemplating a vehicle donation program, be sure to protect yourself from future tax audits and potential scams by asking a lot of questions up front and doing your homework.

If you want to donate your car or vehicle to a reputable charity in Minnesota, visit http://wheelsforwishes.org/ or http://vehiclesforveterans.org/

The stimulus bill was packed full of government programs designed to get the economy moving again. Some were popular. Some were not. Some were successful. Some were not. The first time homebuyer tax credit has turned out to be highly popular and a boon for the real estate industry. Still, what happens when it expires?

The first time homebuyer tax credit is designed to help the lowest rung of the home buying market get moving. It does this by giving first time homebuyers a tax credit up to 6.2 percent of their income. The 6.2 figure is actually a bit of a red herring as the credit is capped at $8,000. Still, it is a health contribution to the down payment on a home for someone making the plunge the first time. The program is also government friendly as the tax credit has to be repaid in 15 annual payments starting in 2010.

I don’t have to tell you the real estate market has been morbid since 2007. Foreclosures. Bankruptcies. Bank failures. The Great Recession. It has been a scary time and remains so. Still, the real estate market has seen some positive improvement as people have taken advantage of the government program. There is one date though that makes many in the business very nervous – November 30, 2009. This is the date the credit expires.

The big question in the real estate market is what happens when the calendar turns to December 1, 2009. The demand for housing is going to fall again as most people interested in buying are doing so before the deadline. December is not exactly a hot month in real estate during the best of times, but what about 2010. Will the tax credit give the market a bump that builds momentum or just a one time bump that really solves nothing?

If I could read the future…I’d be floating around on my yacht and not typing this. That being said, the housing market appears to be in for another tough period in late 2009 and into early 2010. The help given to first time buyers is a good thing, but growth is going to be stagnant as long as unemployment is in the 9 to 10 percent range. There simply is no way to avoid that fact.

Thomas Ajava is with CPATaxAttorneyMariettaGeorgia.com where you can locate a CPA – tax attorney in Marietta, Georgia.

In the present scenario, tax is a burden imposed by law . Since our present state rest on the Principles of Rule of Law , the tax administration does not remain a mere revenue collection exercise, it take the shape of administration of a branch of law. Thus the ideal taxation is execution of a well defined law with defined burden, legal-procedural-financial, on the subjects. When such law is administered by an inefficient and corrupt institution, it does not result in merely less collection of revenue but erosion of subject’s faith in the existence of Rule of Law.

The taxation law affects the economic interest of the nation. When such laws is inefficiently administered, when such laws are administered by corrupt bureaucracy, when the drastic nature of such laws threat the liberty of businessmen; it results in lower business confidence, less investment, inefficient use of capital and ultimately result in lowering the growth rate of the nation. Numerous studies has been conducted and it has been found conclusively that institutional factors like Rule if Law, personal liberty, absence of corruption, efficient administration propels the growth rate of any nation.

Thus on theoretical, moral and economic ground- there is a case for efficient and honest tax administration. We will not require any independent proof that our tax administration is neither efficient nor honest. This paper is an attempt to examine the possibility of private sector participation in the tax administration so as to make is efficient and honest- and more so to inculcate the spirit that tax administration exist for the people.

PRIVATE COLLECTION OF TAXES:

Under Article 265 of the Constitution of India, the taxes are to be levied as per expressed provision of law. However, the machinery of tax collection is based on convenience- there is no bar that private persons cannot collect taxes . On smaller taxes, like toll tax imposed by Municipality, at various places it is collected by private parties. Excise duty on country liquor is collected by private parties. In approximately 80 countries of the world, custom duty is privately collected. Thus it is perfectly legal if tax collection is privatized. However, for the purposes of this paper, the author is confining itself to certain processes which can be easily privatized, without unduly affecting the present tax structure.

Receipt of Communication:

A tax payer is required to give certain communication to the department like application of registration, periodical returns, intimations, reply to departmental communications etc. Any person who visits the departmental office has a horrowing experience in getting a receipt of the communication. Citizen’s Charter says that communications shall be acknowledged on the spot. However, every assessee knows that how difficult is to get a receipt of communication. I feel that certain private agencies, like post office, or banks or even private companies can be authorized to receive such communication on behalf of the department. Thus the department will be saved of many visitors in the office, the assessee will be saved from undue harassment, interface of tax payer and taxmen will be reduced leading to reduced corruption, more accountability of the department etc. Further, the scheme can be self financing as a user fee can be imposed, like Rs. 50 per communication .

Another problem is with E-Mail communication. The supplementary instruction of the department says that communication can be sent via E-Mail. However, the departmental officers never reply to the mail . Whether, they reply or not, it is there problem. The assessee must get an acknowledgement of the sent mail. The official mail boxes of the officers can be given a facility of auto reply of acknowledgement.

Registration Certificate:

Registration of unit is a first point where an assessee meets the department, and this meeting ordinarily not very pleasant. As per the departmental instructions, the registration certificate is required to be issued immediately and verification is done after registration. There are well defined documents which are required at the time of registration. This process may be privatized, and private persons can be empowered to issue registration certificate . After such registration, the department can do the verification and if any anomaly is found, appropriate action can be taken.

Thus we can examine various processes, which are simple and does not have revenue amplifications which can easily be privatized. Even other processes like dispute settlement, adjudication, audit etc. can also be privatized without much difficulty, but examination of those processes are beyond the purview of this paper. A beginning can be made with simple processes. If the government of the day is really a government of common man, and interested in transparent governance it will certainly take some positive steps in the direction.

(Views expressed are personal views of the author.)
custom.excise@gmail.com

I am an advocate practicing in the field of Central Excise, Customs, Service Tax and Foreign Trade Policy. I have some experience in these areas, firstly as Indian Revenue Service officer and later as Consultant & Advocate to handle these matters. I head a full service law firm, in the name of “Rajesh Kumar & Associates”, who takes up matter in these areas. I am being assisted by many talented and experienced lawyers, accountants and other supporting staff.

IRS tax attorneys are expertly trained in IRS tax law and are able to provide advice on and assistance with Offers in Compromise, innocent spouse relief, abatement of penalties, removal of federal tax liens, lifting of levies on assets, bankruptcy discharge analysis, appeals representation and so on.

Many firms specialize in tax resolution and hire the best and the brightest lawyers and tax specialists to help their clients. These firms have helped the tax resolution industry to grow by leaps and bounds over the past several years. Most of them have sound track records and have helped thousands of people get out of IRS tax debt. Almost always, IRS tax lawyers and specialists are able to help with tax problems and initiate settlements for a fraction of what is owed.

Tax Attorneys often focus on a particular specialty such as capital gains taxes, employee fringe benefits taxes, passive activity income taxes, self-employment taxes and employee taxes. They have many hours of training and experience behind them making them an excellent source of invaluable information and assistance. They come with a helping hand stretched out for you to grasp if you are loosing sleep over your tax problems. Most can resolve your tax problems quickly which reduces the amount of stress you are feeling from owing a debt to the IRS.

IRS Tax Attorneys represent clients from all over the United States and in many foreign countries as well. They provide the highest quality legal services and personalize each taxpayers own individual circumstances. They work directly with their clients and work out strategies on how best to decrease or eliminate the tax debt. They are there to answer questions and to be a source of encouragement for individuals needing debt relief.

IRS Tax Specialists who are employed by tax relief agencies are generally former IRS revenue agents, former interns to bankruptcy judges, seasoned tax lawyers and Certified Public Accountants. All of these people are experts in the field and work together to put their client’s best interests first. Their combined education and experience is what is essential in getting most IRS debt lowered or eliminated completely.

Click here to learn more about IRS tax attorneys.. IRS tax attorneys.

Get the Form

Whenever you win a “qualifying amount” at a casino, they are legally required to report it to the IRS. Therefore, they will collect your social security number and send you an IRS Form W-2G. As such you want to make sure to report these winnings on your tax returns because the IRS obviously already knows about them. Do not make the mistake of trying to avoid the taxes by giving the casino incorrect information as this is very illegal and could get you into a lot of trouble.

Qualifying Amounts

According to the IRS, a casino will need to report your winnings to the IRS if you win: $600 or more at a casino or horse track, $1,200 or more at bingo game, or $1,500 or more in a game of keno. Depending on your winnings the casino may even withhold taxes from your payout.

Smaller Fortunes

Although smaller winnings will not be automatically reported to the IRS, it is still your legal duty to report them. While the IRS may not catch you in the act if you do not report these smaller winnings once or twice, they may get suspicious if you report gambling winnings often, but only those that are verified by a W-2G Form.

On the 1040

You must report your gambling winnings, prizes, or non-cash prizes on your Form 1040 come tax season. They will need to be put on line 21, with “other income”. 1040EZ forms cannot be used to report gambling winnings.

Gambling Losses

In addition to reporting your gambling winnings, you will also want to deduct your gambling losses. However, you cannot report gambling losses that exceed your total gambling winnings. When you deduct the losses, do so on Schedule A on IRS Form 1040 as an itemized deduction.

Keep Track

It is both helpful and smart to keep a thorough log on your gambling activity, including winnings and losses, as well as where the gambling took place. There are several reasons why doing so is a good idea, including but not limited to the possibility of an IRS audit. It will also make things easier when you need to prepare your return next April.

Taxes Withheld

Taxes withheld from your winnings should also be reported in Box 2 of the Form W-2G you receive in the mail. Be sure to report these amounts on your Form 1040 in the total payments section.

Attach All Forms

To satisfy the IRS, be sure to attach all forms regarding your gambling activity to your tax return. This includes your W-2Gs or any other gambling-related tax documents.

Comps

You may think that people who get free hotel rooms, and tickets to shows from places they gamble at are pretty lucky. However, these “comps” do not come without a price. They are all considered gambling winnings by the IRS, and are subject to the same taxes.

The Roni Deutch Tax Center is one of the nation’s hottest income tax franchise. Income tax preparation is a recession resistant industry. Learn more about this new tax franchise opportunity today.

Filing IT returns can more appropriately be called a duty than an annual custom. Come July – it is that time of the year, when salaried and non-salaried individuals get busy filing their IT returns and chartered accountants get busier enabling them to do so. Amidst all this, we owe a thought to one thing: we do most of our financial transactions ourselves; we are quite conservative on disclosing our financial details to anyone else; but we do not hesitate to engage with a Chartered Accountant (CA) to help us file our returns. We have etched in our black box that filing IT returns is a laborious task and at times can get confusing as well. More so, it is comfortable and secure to pay a small fee to a CA and get it done.

Studies reveal that most people who file IT returns change their CA every year. Then how are we breaking our customary conservatism to do it? Actually, we don’t know. We do it because we see people doing it! It’s simple! Or is it? Or have we not found a simpler way! The latter may actually be true. We feel we find in a CA – an exclusive confidant – who makes our lives easy! Is he exclusive to you? And is he actually a confidant?

Over the last decade, we have seen an outburst of activities that have gone online. Starting from the birthday cakes, bouquets and greeting cards to general needs and home appliances, the list of online engagements go unto buying houses and meeting life-partners online! Online commerce or e-commerce has made rapid strides. Managing most bank transactions online, keeping track of investment portfolio, demat accounts et al are now a few clicks away! And secure too. When transactions aplenty are happening online, it only becomes natural to extend and enable filing IT returns online.

Why should I? Well, reasons are just above and more so, when you have advantages like the ones that follow: You always wanted a personal and an exclusive engagement to file your taxes. Having an online account to file returns, confirms an exclusive and intuitive experience. As a tax-payer, it is your right and duty to understand your tax-structure. Online filing helps you understand your taxes while you file your returns. Well, you have complete control over your taxes; your deadline for filing returns the e-way is 11:59PM, July 31st while paper-returns need to be filed not later than 5PM. This means, you can file your returns any time of the day or night!

Filing returns online is approved by the Income Tax Department (ITD) which also recommends the initiative by giving an immediate online acknowledgment. As you fill the online form, any amount you still owe or due to you is calculated immediately and any pay-out to you by the ITD is done lot quicker than the same activity going through paper-way. You can monitor your ’self-assessment account’ online that stores your entire payment history, statements, status of payments, returns, etc. For any reason, ff you still need it on paper, go ahead and print it!

Is it safe? Actually storing IT data offline on paper is more risky and vulnerable to theft and misuse! Online filing comes with Verisign-certification and uses a 128-bit encryption SSL module. In simple terns, online filing is completely secure and when filed through a digital signature, is 100% risk-proof. But I have not done it before! That’s the reason you should be doing it now! Online population for filing returns is steadily on the rise. Also a cause toward saving paper and the environment – create an account online and file your returns. It is easy, it is simple, it is secure, and it is unique! Happy e-filing!

http://www.prabhanjan.com
http://www.taxsmile.com

1. Save Receipts
Every year you should create a new folder in your filing cabinet, to keep all of your tax related documents and receipts for the year. If you make a habit of collecting these files throughout the year then it will make life easier for you and your family come next tax season.

2. Stay Current on Recent Tax Laws
If you are serious about tax planning for your family then you want to make sure you understand the current set of tax laws. It is important to make sure you are keeping the correct receipts, planning for the right deductions, and making smart purchases.

4. College Tax Credits
Speaking of recent tax law changes, President Obama recently extended the college tax credit. If you have any children attending college this year then you will want to make sure and claim the new credit. The maximum amount for the credit was raised to $2,500, and can now be claimed for up to 4 years. To learn more about the American Opportunity Tax Credit, check out this entry on Roni’s personal blog.

5. Educational Savings Accounts
Formerly called “Educational IRAs” these special savings accounts are a tax friendly way to save for your child’s future educational expenses. Although you pay taxes on the money deposited into the account, you will not be taxed on earnings that you withdrawal from the account to pay for college expenses. You are allowed to $2,000 per year for each child you have until the reach the age of 18. For more information on educational savings accounts, check out IRS Publication 970: Tax Benefits for Higher Education.

6. Health Care Deductions
If your family’s medical bills exceed 7.5% of your adjusted gross income then you can deduct them on your tax return. This can be especially useful if you have a newborn child or a sick family member who needs extra medical attention throughout the year.

7. Employing a Child
If you are the sole proprietor of a business then you might want to consider hiring one of your children. As long as they are under the age of 18, you can them up to $5,000 in wagers per year that will not be subject to income taxes.

The Tax Lady Roni Deutch and her law firm Roni Lynn Deutch, A Professional Tax Corporation have been helping taxpayers across the nation find IRS tax relief for over seventeen years. The firm has experienced tax lawyers who can fight IRS tax liens on your behalf.