Monday, December 18, 2017

5 SIGNS OF SMALL BUSINESS IDENTITY THEFT - NEW PROTECTION METHODS - ADVANCE TAX RELIEF LLC

Small business identity theft is a big business. Just like individuals, businesses can be victims too. Thieves use a business’s information to file fake tax returns or get credit cards.
Identity thieves are more sophisticated than they used to be. They know the tax code and filing practices and how to get valuable data.


The IRS has seen a sharp increase in fraudulent business tax forms. These include Forms 1120, 1120S and 1041, as well as Schedule K-1. These affect business, partnership, estate and trust filers.
SIGNS OF IDENTITY THEFT
Business filers should be alert for signs of identity theft. They should contact the IRS if they experience any of these issues:
1)The IRS rejects an e-filed return saying it already has one with that identification number.
2) The IRS rejects an extension to file request saying it already has a return with that identification number.
3)The filer receives an unexpected tax transcript.
4)The filer receives an IRS notice that doesn’t relate to anything they submitted.
5)The filer doesn’t receive expected or routine mailings from the IRS.
NEW PROCEDURES TO PROTECT BUSINESSES IN 2018
The IRS, state tax agencies and software providers have ways to detect suspicious returns. However, some new measures can help validate returns in advance. The IRS and states are asking businesses and tax professionals to help verify if a tax return is legitimate.
These procedures are new for 2018. Software for business tax returns will ask questions related to:
1)The person authorized to sign the return
2)Payment history
3)Parent company information
4)Past deductions
5)Filing history
GET TAX RELIEF HELP TODAY
If you think that you may need help filing your 2017 tax return, you may want to partner with a reputable tax relief company who can help you get the max refund.
Advance Tax Relief has a offices in Houston, TX and Los Angeles, CA and helps many individuals just like you work with the IRS to solve a wide variety of issues, including penalty waivers. Call our team today at 800-790-8574 for more information. For a free consultation, schedule an appointment with us online.
If you live in Los Angeles, contact us locally https://www.inglewoodtaxlawyers.com/ and if you live in Houston, TX contact us here www.advancetaxrelief.com.
However, it doesn’t matter where you live, we service taxpayers nationwide.
Advance Tax Relief is a BBB Accredited A+ Rated Business.
Some Recent Tax Settlements:
Mr. Dillard - CA Owed $6884, IRS settled for $400
Mr. Batiste - LA Owed $18513, IRS settled for $2972
Mr. Johnson - CA Owed $21,378, IRS settled for $4500
Ms. Gonzalez - TX Owed $28,816, IRS settled for $1700
Mr. Anthony - NY Owed $14,000, IRS settled for $900
Mr. Wilkes - CA Owed 32,211, IRS settled for $1250
Connect with us:
BBB PAGE:
https://www.bbb.org/…/advance-tax-relief-llc-in-houston-tx-…
GOOGLE PAGE:
https://plus.google.com/+ADVANCETAXRELIEFLLCHouston
YELP:
https://www.yelp.com/biz/advance-tax-relief-houston
TWITTER:
https://twitter.com/irstaxpro?lang=en
FACEBOOK:
https://www.facebook.com/advancetaxrelief/
#IrsHelp
#BackTaxes
#OweTaxes
#TaxRelief
#TaxAttorneysNearMe
#IRSFreshStartInitiative
#IOweMoneytotheIRS
#banklevy.
#TaxesOwed
#FederalTaxLien
#TaxAttorney
#TaxResolutionServicesCompany
#TaxPreparation
#IRSWageGarnishments
#FileBankruptcy
#IncomeTaxDebts
#InnocentSpouseRelief
#IRSdebtrelief
#SettleYourIRSTaxDebt
#CreditCardDebtSettlement
#houstontaxrelief
#houstontaxattorneys
#irstaxrelief
#taxestaxes
#taxservices
#irstaxhelp
#cpaattorney
#cantheirs

Saturday, December 16, 2017

RED FLAGS THAT CAN TRIGGER AN IRS AUDIT FOR YOUR SMALL BUSINESS

You can’t avoid death or taxes — but you may be able to avoid a tax audit, according to Noah Daniels, EA, tax and entrepreneurial services principal at Advance Tax Relief LLC who has represented businesses in IRS audits for 15 years. Although he acknowledges that “audits are at an all-time low” due to budget constraints, small businesses may be able to reduce their chances of an audit even more by being mindful of what Noah Daniels, EA calls “red flags.”

Need IRS Help? Call (800)790-8574
ADVANCE TAX RELIEF LLC
www.advancetaxrelief.com

BUSINESS LOSSES

“If [the IRS sees] a sole proprietorship with a loss, I can tell you your chance of audit is extremely high,” says Berger. Sole Proprietorships are particularly suspicious, in the eyes of the IRS, because owners often commingle personal and business expenses and may take deductions to which they are not entitled.




If your business comes up in the red at tax time, Noah Daniels, EA recommends looking carefully at whether your deductions are all allowed under the tax code. “Everyone likes to think every dinner out is a business expense,” he says. “You want to look to see, really, is it a business expense and valid?”

While Noah Daniels, EA says the IRS is unlikely to audit a startup that loses money in its first year, he cautions that many entrepreneurs fail to account for their startup expenses correctly. “Businesses are required to capitalize certain expenditures,” he says, spreading deductions for large purchases and pre-startup expenses over multiple years. “Many times small businesses do not do that.”

YOUR CASH TRANSACTIONS

Credit-card processors now submit 1099-K forms to the IRS with a record of your business’ total credit-card transactions for the year. The IRS has a (secret) formula that tells it how much a business should have in cash sales based on its total credit-card transactions.

“Just because you didn’t get the actual notice of audit,” says Noah Daniels,EA “doesn’t mean that they’re not checking behind the scenes.”

YOU MADE MATH MISTAKES

You might get flagged for an audit, Noah Daniels, EA says, “if you’ve added up your receipts and they don’t agree with the 1099-K.” The IRS is always checking math on the returns, so getting the numbers right is crucial.
The fact that most tax returns are done electronically helps, he notes, because tax prep software does the math for you.

Still, Noah Daniels EA recommends that small-business owners double-check their returns. “You should know your numbers and you should know your business. The accountant should know the tax law,” he says. “You’re signing your tax return, so you’re responsible for the numbers on it.”

PLEASE ALWAYS KEEP YOUR FINANCIAL HOUSE IN ORDER

A best practice for sole proprietorships is to “clearly segregate your business from your personal life,” says Noah Daniels,EA. Use separate bank accounts and credit cards for business and personal expenses.

GET TAX RELIEF HELP TODAY

If you think that you may need help filing your 2017 tax return, you may want to partner with a reputable tax relief company who can help you get the max refund.

Advance Tax Relief has a offices in Houston, TX and Los Angeles, CA and helps many individuals just like you work with the IRS to solve a wide variety of issues, including penalty waivers. Call our team today at 800-790-8574 for more information. For a free consultation, schedule an appointment with us online.

If you live in Los Angeles, contact us locally https://www.inglewoodtaxlawyers.com/
 and if you live in Houston, TX contact us here www.advancetaxrelief.com.

However, it doesn’t matter where you live, we service taxpayers nationwide.
Advance Tax Relief is a BBB Accredited A+ Rated Business.

Some Recent Tax Settlements:
Mr. Dillard - CA Owed $6884, IRS settled for $400
Mr. Batiste - LA Owed $18513, IRS settled for $2972
Mr. Johnson - CA Owed $21,378, IRS settled for $4500
Ms. Gonzalez - TX Owed $28,816, IRS settled for $1700
Mr. Anthony - NY Owed $14,000, IRS settled for $900
Mr. Wilkes - CA Owed 32,211, IRS settled for $1250

Connect with us:
BBB PAGE:
https://www.bbb.org/…/advance-tax-relief-llc-in-houston-tx-…

GOOGLE PAGE:
https://plus.google.com/+ADVANCETAXRELIEFLLCHouston

YELP:
https://www.yelp.com/biz/advance-tax-relief-houston

TWITTER:
https://twitter.com/irstaxpro?lang=en

FACEBOOK:
https://www.facebook.com/advancetaxrelief/

#IrsHelp
#BackTaxes
#OweTaxes
#TaxRelief
#TaxAttorneysNearMe
#IRSFreshStartInitiative
#IOweMoneytotheIRS
#banklevy.
#TaxesOwed
#FederalTaxLien
#TaxAttorney
#TaxResolutionServicesCompany
#TaxPreparation
#IRSWageGarnishments
#FileBankruptcy
#IncomeTaxDebts
#InnocentSpouseRelief
#IRSdebtrelief
#SettleYourIRSTaxDebt
#CreditCardDebtSettlement
#houstontaxrelief
#houstontaxattorneys
#irstaxrelief
#taxestaxes
#taxservices
#irstaxhelp
#cpaattorney
#cantheirs

Monday, December 11, 2017

THREE TIPS TO GET YOUR BIGGEST TAX REFUND IN 2017 / 2018 - ADVANCE TAX RELIEF

THREE TIPS TO GET YOUR BIGGEST TAX REFUND IN 2017 / 2018 - ADVANCE TAX RELIEF

FILE YOUR TAX RETURNS
By now, you should have received your W-2 from your employer or your Form 1099-Misc if you were self-employed in 2016. Once you have all your tax forms together, go online and get your taxes done! The sooner you e-file with direct deposit, the sooner you will receive your tax refund. What you do with your tax refund is up to you, but having some extra cash on hand is a good opportunity to pay down any debt and eliminate interest charges.





ITEMIZE YOUR DEDUCTIONS
The standard tax deduction is a deduction set by the IRS that allows you to reduce your taxable income if you cannot take advantage of more tax deductions by itemizing. While the standard deduction will help lower your taxes – $6,300 if you're single; $12,600 if you're married filing jointly – if you take a little time to gather your receipts, you may find that you can get a bigger refund by itemizing your deductions.

Some common expenses that you can itemize on your tax return include: charitable contributions, casualty losses, unreimbursed business expenses, job search expenses, state and local sales tax deductions, mortgage interest, and unreimbursed medical expenses in certain situations.

An Agent from Advance Tax Relief will ask you simple questions about you and give you the tax deductions and credits you are eligible for based on your entries. You also don't need to know whether to take the standard deduction or claim itemized deductions. Advance Tax Relief will also determine whether you are eligible to itemize or take the standard deduction and give you the option that gets you a bigger tax refund based on your entries.

DON’T FORGET TAX CREDITS -
Tax credits are even better than tax deductions because they are a dollar-for-dollar reduction of the tax you owe, and a refundable tax credit will allow you a credit beyond your tax liability. Such credits include earned income credit, child and dependent care credit, education credits, retirement saver's credit, child tax credit or residential energy credits.

GET TAX RELIEF HELP TODAY
If you think that you may help filing your 2017 tax return, you may want to partner with a reputable tax relief company who can help you get the max refund. Advance Tax Relief has a offices in Houston, TX and Los Angeles, CA and helps many individuals just like you work with the IRS to solve a wide variety of issues, including penalty waivers. Call our team today at 800-790-8574 for more information. For a free consultation, schedule an appointment with us online.

If you live in Los Angeles, contact us locally https://www.inglewoodtaxlawyers.com/ and if you live in Houston, TX contact us here www.advancetaxrelief.com. However, it doesn’t matter where you live, we service taxpayers nationwide.

Advance Tax Relief is a BBB Accredited A+ Rated Business.

Some Recent Tax Settlements:
Mr. Dillard - CA Owed $6884, IRS settled for $400
Mr. Batiste - LA Owed $18513, IRS settled for $2972
Mr. Johnson - CA Owed $21,378, IRS settled for $4500
Ms. Gonzalez - TX Owed $28,816, IRS settled for $1700
Mr. Anthony - NY Owed $14,000, IRS settled for $900
Mr. Wilkes - CA Owed 32,211, IRS settled for $1250

Connect with us:

BBB PAGE:
https://www.bbb.org/houston/business-reviews/tax-consultant/advance-tax-relief-llc-in-houston-tx-90024857

GOOGLE PAGE:
https://plus.google.com/+ADVANCETAXRELIEFLLCHouston

YELP:
https://www.yelp.com/biz/advance-tax-relief-houston
TWITTER:
https://twitter.com/irstaxpro?lang=en

FACEBOOK:
https://www.facebook.com/advancetaxrelief/

#IrsHelp
#BackTaxes
#OweTaxes
#TaxRelief
#TaxAttorneysNearMe
#IRSFreshStartInitiative
#IOweMoneytotheIRS
#banklevy.
#TaxesOwed
#FederalTaxLien
#TaxAttorney
#TaxResolutionServicesCompany
#TaxPreparation
#IRSWageGarnishments
#FileBankruptcy
#IncomeTaxDebts
#InnocentSpouseRelief
#IRSdebtrelief
#SettleYourIRSTaxDebt
#CreditCardDebtSettlement
#houstontaxrelief
#houstontaxattorneys
#irstaxrelief
#taxestaxes
#taxservices
#irstaxhelp
#cpaattorney
#cantheirs

Sunday, December 3, 2017

THE TOP 5 TAX CHANGES IN 2018

SOCIAL SECURITY MAXIMUM TAXABLE EARNING LEVEL ROSE

Last, but not least, the maximum taxable earnings cap associated with Social Security's payroll tax is rising once again. The increase will affect about one out of 10 working Americans.

Need IRS Help? Call (800)790-8574
ADVANCE TAX RELIEF LLC
www.advancetaxrelief.com

In 2017, all earned income between $0.01 and $127,200 was subject to Social Security's 12.4% payroll tax, with income above and beyond $127,200 not subject to the tax. Next year, this earnings cap will be increasing by $1,500 to $128,700. That means well-to-do folks could owe up to $93 or $186 in additional payroll taxes. The difference will depend on whether they're employed by someone else, which would mean their employer covers half of the 12.4% payroll tax, or if they're self-employed and responsible for all 12.4% of the tax.




The $6,318 tax bonus millions of Americans completely overlook
Taxes can be confusing and downright miserable. But a handful of "tax tricks" could help millions of Americans save thousands of dollars. That's free money you could be leaving on the table. For example: the IRS believes that a full 20% of eligible Americans miss out on a tax break worth up to $6,318... each year!


THE ANNUAL GIFT EXCLUSION ROSE BY A SIZABLE AMOUNT

Passing money along to friends and family is about to get a little bit easier. In 2017, you could gift up to $14,000 to any person without creating any individual tax liability. This is known as the "gift exclusion." In 2018, up to $15,000 can be given as a gift to any person without triggering any tax implications. That's a $1,000, or 7.1%, increase.

It's also worth mentioning that the estate tax exemption increased. In 2018, you'll be able to leave up to $5.6 million without having the estate tax kick in. That's up from a $5.49 million basic exclusion in 2017.

THE ALTERNATIVE MINIMUM TAX EXEMPTION AMOUNTS RISE ON PAR WITH INFLATION

Most Americans might not be familiar with the alternative minimum tax, or AMT, but it's designed to ensure that wealthier Americans pay their fair share of taxes given the copious number of deductions and credits available.

Next year, the income exemption limits tied to the AMT will be rising once more, since the AMT is now permanently tethered to the inflation rate. In 2018, the income exemption threshold rises to $55,400, up from $54,300 in 2017 for single filers. Married couples filing jointly will see ther income exemption rise to $86,200 in 2018 from $84,500 this year. The AMT begins to phase-out for single filers at $123,100 in 2018, and $164,100 for married couples.

MINOR UPDATE TO THE TAX BRACKETS

The change that most Americans are interested in is the one that'll most directly affect their paycheck: the 2018 tax schedule. As expected, inflation left its impact on the 2018 tax brackets, with the income ranges for each bracket increasing by right around 2%.

That would suggest that any salaried employees who didn't receive a raise are likely to owe a bit less in federal taxable income in 2018, deductions and credits being equal, than they did in 2017.

It's also worth pointing out that the 2018 tax schedule affects your earnings in 2018 and will have nothing to do with the taxes you prepare for your 2017 earnings early next year.
Curious to see how things changed? Here's a quick comparison of the 2017 tax schedule:

A BOOST IN THE PERSONAL-EXEMPTION ALLOWANCE

On the other hand, those of you who do itemize are also getting a boost. The personal-exemption allowance is rising by $100 in 2018, to $4,150 from $4,050 in 2017.

Personal exemptions are particularly popular among wealthier taxpayers, meaning the phase-out income limits and complete exemption increases for 2018 are important to know. In 2017, phase-outs for the personal exemption began at adjusted gross incomes (AGIs) of $261,500 for single filers and $313,800 for married filers, while ending completely at $384,000 for single filers and $436,300 for married couples.

Next year, these phase-outs increase to AGIs of $266,700 for single filers and $320,000 for married filing jointly, and they end completely at $389,200 for single filers and $442,500 for married filing jointly. In other words, the rich have a little extra wiggle room in 2018 for claiming a personal exemption.

GET TAX RELIEF HELP TODAY

If you think that you may qualify for a penalty waiver, you may want to partner with a reputable tax relief company who can help you make the best case to the IRS. Advance Tax Relief helps many individuals just like you work with the IRS to solve a wide variety of issues, including penalty waivers. Call our team today at 800-790-8574 for more information. For a free consultation, schedule an appointment with us online.

If you live in Los Angeles, contact us locally https://www.inglewoodtaxlawyers.com/ and if you live in houston, contact us here www.advancetaxrelief.com. However, it doesn’t matter where you live, we service taxpayers nationwide.

Advance Tax Relief is a BBB Accredited A+ Rated Business.

Saturday, December 2, 2017

IRS TAX PENALTY FORGIVENESS : How to Make Sure You Qualify

When you owe back taxes to the Internal Revenue Service (IRS), the idea of paying your actual debt plus a large sum in penalties and interest is very difficult to swallow.  In some cases, however, you may qualify to have the penalties waived.  Does this penalty waiver apply to you?  Below are the circumstances that may help you determine if you qualify.



Penalty Relief Due to Reasonable Cause

The IRS can review certain facts and circumstances which may have impacted your ability to file your tax return. This most often relates to small businesses and those who are self-employed.  
Typical issues that are considered include:
Natural disaster, casualty or fire
Death, a serious injury or illness
Other reason which shows that you used all ordinary business care to meet your tax obligations but were still unable to do so.

As you might expect, you’ll have to share information with the IRS about the situation that kept you from being able to pay your taxes and/or file your return.  You will want to be ready to provide specific facts about the event and exactly why it impacted your ability to pay.  You may be asked to share hospital records, court records, doctor’s letter, or documentation of a natural disaster or other devastating event.  Also, keep in mind that even if you are able to qualify for an IRS penalty waiver, you will likely not be able to get the interest on your late payment waived.  Interest is generally not waived for reasonable cause and accrues until your tax bill is paid in full.

 

Other IRS Penalty Waiver Policies


If you don’t qualify for a penalty waiver due to reasonable cause, you may want to see if one of these other situations applies to you:
Statutory Exception: If you think that you have received incorrect written advice from the IRS and received a penalty as a result, you can request that the penalty be waived.
First Time Penalty Abatement: It is possible that you may qualify for a penalty waiver under the IRS First Time Penalty Abatement policy. You must meet specific criteria including that you have no tax penalties for the 3 years before the penalty, you must be current on your required returns and you must have paid, or arranged to pay, any tax due.
Innocent Spouse Relief: In some unique cases, a spouse may make the case that they are not equally responsible for taxes and penalties assessed during their marriage. This is most often applicable when one spouse is unaware of significant tax problems/debt.  You can apply for equitable relief or separation of liability relief depending on your situation.


Get Tax Relief Help Today

If you think that you may qualify for a penalty waiver, you may want to partner with a reputable tax relief company who can help you make the best case to the IRS.  Advance Tax Relief helps many individuals just like you work with the IRS to solve a wide variety of issues, including penalty waivers. Call our team today at 800-790-8574 for more information. For a free consultation, schedule an appointment with us online.
If you live in Los Angeles, contact us locally https://www.inglewoodtaxlawyers.com/ and if you live in houston, contact us here www.advancetaxrelief.com. However, it doesn’t matter where you live, we service taxpayers nationwide.
Advance Tax Relief is a BBB Accredited A+ Rated Business.

Friday, December 1, 2017

4 WAYS TO GET ORGANIZED FOR THE 2018 TAX SEASON

With tax season finally over (unless you asked for a tax extension), this is good time to reflect on what you can do for next year in order to make preparing your returns a more pleasant experience.
Need Help? Call Advance Tax Relief LLC (800)790-8574
Preparing tax returns, gathering the necessary documentation, and double-checking that everything you filled out is correct can stress out even the most organized person. This is even more important if you are in a little need of upgrading your organizational skills, and let's face it, we could all stand to be a little more organized.


One of the best tips that I can offer someone who is looking to reduce their stress levels around tax time and concerning their tax return is to try to get more organized for the coming year. An often-cited phrase and mindset is that the more organized your surroundings are, the better you will feel, and the better you will perform workplace activities. Especially with everything, and everyone, clamoring for our attention, focus, and energy on an almost daily basis, it can be difficult to decide what items to actually prioritize.
Figuring out what your priorities are in life is not something I can advise on, but what I can say for certain is that picking these priority items, including your finances, will help you become more organized, less stressed, and more confident come tax time.
Tax time only comes once a year, but it can feel like it lasts for months -- here are a few of my favorite ways to reduce the stress and time spent on tax, and financial documentation in general.

DETERMINE WHETHER OR NOT TO ITEMIZE

As an individual, you basically have two options, itemized deductions or a standard deduction, with how you want to file your individual 1040, and making that decision now will help your figure out what you need to save and keep track of during the year. One thing to keep in mind is that not every dollar you spend will be deductible -- for the 2017 tax years (filing in 2018), the expenses you are seeking to itemize  (specifically medical) must exceed 10 percent of your adjusted gross income (AGI).
Another thing to remember is that everyone, whatever your filing status, is eligible for a standard deduction. For single filer taxpayers, the standard deduction is $6,300 -- it is important to work with your CPA or tax professional to make sure you do not end up getting less. Fortunately, the IRS has a form that helps you figure out if you are better off itemizing or taking the standard deduction.
If you choose to itemize your deductions you will, in general, have to keep track of more documentation during the year. Some of the most common itemized tax deductions include, but are not limited to medical expenses, charitable contributions, state and local taxes, foreign taxes, mortgage interest deductions, mortgage points, health insurance if you are self employed, and losses related to natural disasters. There are many more options out there, so be sure to work with your tax adviser to stay current.
 TRACK YOUR DONATIONS AND DUES:
If you donate to different charitable organizations and groups, or even pay dues for professional organizations, which can range from animal rights groups to dues paid for for realtors and even CPAs, you might be able to take that contribution, or a portion of it, as a tax deduction. You will either receive an email at the end of the year letting you know how much you had donated, or will receive a receipt explaining how much of your payment or contribution is tax deductible. In my experience these organizations are very good at providing this documentation, but if you have not received your documentation by the end of January I would follow with an email or phone call.

FILE YOUR FINANCE DOCUMENTS

We all get way too many emails during the course of the year, but taking a little time to auto-file where these emails go can save you a lot of stress come next tax season. Bank e-statements, credit card e-statements, retirement account information, and any business expenses should either be stored in a tax file in your inbox, or put in a tax folder during the year. A little time now will save you a lot of time next tax season.

 

KNOW THE TAX DATES AND DEADLINES

April is well-known as tax month, but there are several other dates that are important during the year. Quarterly taxes for your business, for example, are due the 15th of April, June, September, and January, so make sure to file and pay if you need to. Lastly, you should have received all of your tax documents, including W-2's and any 1099's, by January 31st. If you find yourself missing documentation be sure to reach out to keep yourself from falling behind. Your outreach efforts might include your IRA program manager, former employers, or companies you did some consulting for during the year. Again, most organizations in my experience are very good at getting these documents out the door, but it is important to keep an eye on where these documents are.
Sometimes the most painful time during tax season is opening a shoebox full of mismatched and unorganized documentation, and trying to make sense of it. That is stressful for both you and your tax preparer, and might actually result in your missing out on an important deduction or credit that you are due. Taking some time during the year to get, and stay, financially organized can really pay off the next time tax season, or some other big financial occasion, comes around.

Get Tax Relief Help Today

If you think that you may help filing your 2017/2018 tax return, you may want to partner with a reputable tax relief company who can help you get the max refund.  Advance Tax Relief has a offices in Houston, TX and Los Angeles, CA and helps many individuals just like you work with the IRS to solve a wide variety of issues, including penalty waivers. Call our team today at 800-790-8574 for more information. For a free consultation, schedule an appointment with us online.
If you live in Los Angeles, contact us locally https://www.inglewoodtaxlawyers.com/ and if you live in houston, contact us here www.advancetaxrelief.com. However, it doesn’t matter where you live, we service taxpayers nationwide.
Advance Tax Relief is a BBB Accredited A+ Rated Business.

Thursday, November 30, 2017

STRATEGIES TO HELP YOU LOWER YOUR TAXES IN 2018 - ADVICE FROM TOP TAX ATTORNEYS

Some strategies can help you lower your taxes, sometimes by thousands of dollars. Some help you save time and money when preparing your tax return.
Other strategies help you avoid costly penalties and interest on both federal and state taxes. All in all, these 10 steps will lower your blood pressure while keeping more money in your pocket:

1. CONTRIBUTE TO RETIREMENT ACCOUNT

If you haven’t already funded your retirement account for 2017, do so by April 17, 2018. That’s the deadline for contributions to a traditional IRA, deductible or not, and to a Roth IRA.




However, if you have a Keogh or SEP and you get a filing extension to October 15, 2018, you can wait until then to put 2017 contributions into those accounts. To start tax-free compounding as quickly as possible, however, don’t dawdle in making contributions.

Making a deductible contribution will help you lower your tax bill this year. Plus, your contributions will compound tax-deferred. It’s hard to find a better deal.
If you put away $5,000 a year for 20 years in an investment with an average annual 8 percent return, your $100,000 in contributions will grow to $247,000.
The same investment in a taxable account would grow to only about $194,000 if you’re in the 25 percent federal tax bracket (and even less if you live in a state with a state income tax to bite into your return).

To qualify for the full annual IRA deduction in 2017, you must either:
not be eligible to participate in a company retirement plan, or
if you are eligible, you must have adjusted gross income of $62,000 or less for singles, or $99,000 or less for married couples filing jointly.
If you are not eligible for a company plan but your spouse is, your traditional IRA contribution is fully-deductible as long as your combined gross income does not exceed $186,000.

For 2017, the maximum IRA contribution you can make is $5,500 ($6,500 if you are age 50 or older by the end of the year). For self-employed persons, the maximum annual addition to SEPs and Keoghs for 2017 is $54,000.

Although choosing to contribute to a Roth IRA instead of a traditional IRA will not cut your 2017 tax bill—Roth contributions are not deductible—it could be the better choice because all withdrawals from a Roth can be tax-free in retirement.

Withdrawals from a traditional IRA are fully taxable in retirement. To contribute the full $5,500 ($6,500 if you are age 50 or older by the end of 2017) to a Roth IRA, you must earn $118,000 or less a year if you are single or $186,000 if you’re married and file a joint return.

The amount you save for making a contribution will vary. If you are in the 25 percent tax bracket and make a deductible IRA contribution of $5,500, you will save $1,375 in taxes the first year. Over time, future contributions will save you thousands, depending on your contribution, income tax bracket, and the number of years you keep the money invested.

2. MAKE A LAST-MINUTE ESTIMATED TAX PAYMENT

If you didn’t pay enough to the IRS during the year, you may have a big tax bill staring you in the face. Plus, you might owe significant interest and penalties, too.

How could that happen? Withholding on your paycheck may be out of whack, or you may have received a big gain from selling stock. According to IRS rules, you must pay 100% of last year’s tax liability or 90% of this year’s tax or you will owe an underpayment penalty.

If your adjusted gross income for 2016 was more than $150,000, you have to pay more than 110 percent of your 2016 tax liability to be protected from a 2017 underpayment penalty. If your tax payments were a bit light, you may be stuck.
If you make an estimated payment by January 15, though, you can erase any penalty for the fourth quarter, but you still will owe a penalty for earlier quarters if you did not send in any estimated payments back then.

But if your income windfall arrived after August 31, 2017, you can file Form 2210: Underpayment of Estimated Tax to annualize your estimated tax liability, and possibly reduce any extra charges.

A note of caution: Try not to pay too much. It’s better to owe the government a little rather than to expect a refund. Remember, the IRS doesn’t give you a dime of interest when it borrows your money.

3. ORGANIZE YOUR RECORDS FOR TAX TIME

Good organization may not cut your taxes. But there are other rewards, and some of them are financial. For many, the biggest hassle at tax time is getting all of the documentation together. This includes last year’s tax return, this year’s W-2s and 1099s, receipts and so on.

How do you get started?
Print out a tax checklist to help you gather all the tax documents you’ll need to complete your tax return.

Keep all the information that comes in the mail in January, such as W-2s, 1099s and mortgage interest statements. Be careful not to throw out any tax-related documents, even if they don’t look very important.

Collect receipts and information that you have piled up during the year.
Group similar documents together, putting them in different file folders if there are enough papers.

Make sure you know the price you paid for any stocks or funds you have sold. If you don’t, call your broker before you start to prepare your tax return. Know the details on income from rental properties. Don’t assume that your tax-free municipal bonds are completely free of taxes. Having this type of information at your fingertips will save you another trip through your files.

4. FIND THE RIGHT TAX FORMS

You won’t find all of them at the post office and library. Instead, you can go right to the source online. View and download a large catalog of forms and publications at the Internal Revenue Service Web site or have them sent to you by mail. You can search for documents as far back as 1980 by number or by date.

The IRS also will refer you to a private Web site that lists state government sites where you can pick up state forms and publications.

5. ITEMIZE YOUR TAX DEDUCTIONS

It’s easier to take the standard deduction, but you may save a bundle if you itemize, especially if you are self-employed, own a home or live in a high-tax area.

It’s worth the bother when your qualified expenses add up to more than the 2017 standard deduction of $6,350 for singles and $12,700 for married couples filing jointly.

Many deductions are well known, such as those for mortgage interest and charitable donations.

However, taxpayers sometimes overlook miscellaneous expenses, which are deductible if the combined amount adds up to more than 2% of your adjusted gross income. These deductions include tax-preparation fees, job-hunting expenses, business car expenses and professional dues.

You can also deduct the portion of medical expenses that exceed 10% percent of your adjusted gross income.

6. DON'T SHY AWAY FROM A HOME TAX DEDUCTIONS

The eligibility rules for claiming a home office deduction have been loosened to allow more filers to claim this break. People who have no fixed location for their businesses can claim a home office deduction if they use the space for administrative or management activities, even if they don’t meet clients there.

Doctors, for example, who consult at various hospitals, or plumbers who make house calls, can now qualify. As always, you must use the space exclusively for business.

Many taxpayers have avoided the home office tax deduction because it has been regarded as a red flag for an audit. If you legitimately qualify for the deduction, however, there should be no problem.

You are entitled to write off expenses that are associated with the portion of your home where you exclusively conduct business (such as rent, utilities, insurance and housekeeping). The percentage of these costs that is deductible is based on the square footage of the office to the total area of the house.

A middle-class taxpayer who uses a home office and pays $1,000 a month for a two-bedroom apartment and uses one bedroom exclusively as a home office can easily save $1,000 in taxes a year. People in higher tax brackets with greater expenses can save even more.

One home office trap that used to scare away some taxpayers has been eliminated. In the past, if you used 10% of your home for a home office, for example, 10% of the profit when you sold did not qualify as tax-free under the rules that let homeowners treat up to $250,000 of profit as tax-free income ($500,000 for married couples filing joint returns).

Since 10% of the house was an office instead of a home, the IRS said, 10% of the profit wasn’t tax-free. But the government has had a change of heart. No longer does a home office put the kibosh on tax-free profit. You do, however, have to pay tax on any profit that results from depreciation claimed for the office after May 6, 1997. It’s taxed at a maximum rate of 25%. (Depreciation produces taxable profit because it reduces your tax basis in the home; the lower your basis, the higher your profit.)

7. PROVIDE DEPENDENT TAXPAYER IDS ON YOUR TAX RETURN

Be sure to plug in Taxpayer Identification Numbers (usually Social Security Numbers) for your children and other dependents on your return. Otherwise, the IRS will deny the personal exemption of $4,050 in 2017 for each dependent and the $1,000 child tax credit for each child under age 17.

Be especially careful if you are divorced. Only one of you can claim your children as dependents, and the IRS has been checking closely lately to make sure spouses aren’t both using their children as a deduction.

If you forget to include a Social Security number for a child, or if you and your ex-spouse both claim the same child, it’s highly likely that the processing of your return (and any refund you’re expecting) will come to a screeching halt while the IRS contacts you to straighten things out.

The $1,000 child tax credit begins to phase out at $110,000 for married couples filing jointly and at $75,000 for heads of households.

After you have a baby, be sure to file for your child's Social Security card right away so you have the number ready at tax time. Many hospitals will do this automatically for you. If you don’t have the number you need by the tax filing deadline, the IRS says you should file for an extension rather than sending in a return without a required Social Security number.

8. FILE AN PAY ON TIME

If you can’t finish your return on time, make sure you file Form 4868 by April 17, 2018. Form 4868 gives you a six-month extension of the filing deadline until October 15, 2018. On the form, you need to make a reasonable estimate of your tax liability for 2017 and pay any balance due with your request.

Requesting an extension in a timely manner is especially important if you end up owing tax to the IRS. If you file and pay late, the IRS can slap you with a late-filing penalty of 4.5 percent per month of the tax owed and a late-payment penalty of 0.5 percent a month of the tax due. The maximum late filing penalty is 22.5 percent and the late-payment penalty tops out at 25 percent. By filing Form 4868, you stop the clock running on the costly late-filing penalty.

9. FILE ELECTRONICALLY

Electronic filing works best if you expect a tax refund. Because the IRS processes electronic returns faster than paper ones, you can expect to get your refund three to six weeks earlier. If you have all your documents in order, go ahead and file electronically in January by calling Advance Tax Relief LLC.

You can have your refund deposited directly into your bank account or IRA, the waiting time is even less.

There are other advantages to e-filing besides a fast refund. The IRS checks your return to make sure that it is complete, which increases your chances of filing an accurate return. Less than one percent of electronic returns have errors, compared with 20 percent of paper returns. The IRS also acknowledges that it received your return, a courtesy you don’t get even if you send your paper return by certified mail. That helps you protect yourself from the interest and penalties that accrue if your paper return gets lost.

If you owe money, you can file electronically and then wait until the federal tax filing deadline to send in a check along with Form 1040-V. You may be able to pay with a credit card or through a direct debit.

With a credit card, expect to pay a service charge of as much as 2.5 percent.
With direct debit, you may delay the debiting of your bank account until the actual filing deadline..

10. DECIDE IF YOU NEED HELP

Advance Tax Relief can handle the most complex returns with ease (and allow you to file your taxes electronically for a faster refund). You just need to answer simple questions, such as whether you've had a baby, bought a home or had some other life-changing event in the past year.
An Attorney at Advance Tax Relief will then fill out all the right forms for you. so that you are professionally represented in the event of an audit. If you are concerned about preparing your own return, these services will give you added confidence and peace of mind.

Get Tax Relief Help Today
If you think that you may help filing your 2017 tax return, you may want to partner with a reputable tax relief company who can help you get the max refund.  Advance Tax Relief has a offices in Houston, TX and Los Angeles, CA and helps many individuals just like you work with the IRS to solve a wide variety of issues, including penalty waivers. Call our team today at 800-790-8574 for more information. For a free consultation, schedule an appointment with us online.

If you live in Los Angeles, contact us locally https://www.inglewoodtaxlawyers.com/  and if you live in Houston, TX contact us here www.advancetaxrelief.com. However, it doesn’t matter where you live, we service taxpayers nationwide.

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