WHAT YOUR BUSINESS CAN DEDUCT - 2014

Business Owners can deduct four broad categories of business expenses. 

1. Start-up Expense

2. Operating Expense

3. Capital Expense

4. Inventory 

You can only deduct expenses incurred. You need to keep records of these expenses to (1) Know how much you actually spent (2) Prove to the IRS as evidence that you really incurred such expense in the event of an IRS Audit and it doesn't matter whether you work from home or from a fancy office.

1. Start Up Expenses: Expenses you incur to get your home business up and running - such as licensing fees, advertising cost, attorney and accounting fees etc. However, start up expenses are not currently deductible which means you may not be able deduct all of your start up expense in one year.

2. Operating Expenses: Ongoing day-to-day cost a business incurs to stay in business. This include rent, utilities, salaries, travel expenses, repairs and maintenance. These expenses are currently deductible which means you can deduct all of them in one year.

3. Capital Expenses: Capital assets are items you buy for your business that have a useful life of more than one year, such as equipments, vehicles, books, office, furniture, machinery, and patents you buy from others. Depreciation and Section 179 rules may apply. Call us.

4. Inventory: If your home business involves making or buying products , you will have an inventory. This includes almost anything you make or buy to resell to your customers. You can deduct inventory cost separately from all other expenses. Inventory that remains unsold at the end of the year is a business asset not a deductible expense.

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***HAVE YOUR IRS TAX PENALTIES FORGIVEN!!

YOU MAY BE ABLE TO GET THE PENALTIES ON YOUR TAX DEBT FORGIVEN!!!

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FORMER U.S. POSTAL SERVICE MAIL CARRIER SENTENCED TO PRISON FOR ROLE IN STOLEN IDENTITY REFUND FRAUD SCHEME

Vernon Harrison, of Montgomery, Ala., was sentenced to serve 111 months in prison and three years supervised release, along with an order to pay $82,791 restitution, for his role in a stolen identity refund fraud scheme, announced Assistant Attorney General Kathryn Keneally of the Justice Department's Tax Division and U.S. Attorney for the Middle District of Alabama George L. Beck Jr. Harrison was convicted on July 3, 2013, following a jury trial in the Middle District of Alabama. He was found guilty of conspiracy to file false claims, as well as numerous counts of mail fraud, aggravated identity theft, and embezzlement from the mail.

According to the evidence presented at the trial, Harrison was a corrupt U.S. Postal Service mail carrier who was recruited to join a stolen identity refund fraud conspiracy. Members of the conspiracy used stolen identities to file false tax returns, which claimed fraudulent tax refunds. The returns were filed from various locations, including houses and hotels around Montgomery and Birmingham, Ala. The tax refunds were placed on debit cards that were mailed to addresses along Harrison's postal route in Montgomery. Harrison stole the debit cards from the mail and provided them to a co-conspirator in exchange for cash. During this period Harrison stole over 100 debit cards from the mail for his co-conspirators.

At trial, federal agents showed that they had uncovered substantial evidence of the conspiracy during the execution of search warrants at locations in Montgomery and near Birmingham. This evidence included over 100 envelopes for debit cards that had been mailed to addresses on Harrison's postal route, as well as agents' observation that Harrison failed to deliver Turbo Tax debit cards.

Kathryn Keneally, Assistant Attorney General for the Justice Department's Tax Division, commended the efforts of special agents of the Internal Revenue Service - Criminal Investigation and the U.S. Postal Service, Office of the Inspector General, who investigated the case, and Tax Division Trial Attorneys Jason Poole and Michael Boteler, who prosecuted the case.

Most importantly, if you believe you may have trouble paying your tax bill, contact the Advance Tax Relief LLC immediately. In many cases, there are steps we can take to help ease the burden or settle the tax debt for a small fraction of what is owed .

We advise also that you file your tax returns even if you are unable to pay to help avoid possible additional penalties.

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***WHAT IF I LOSE MY JOB?

The loss of a job may create new tax issues. Severance pay and unemployment compensation are taxable. Payments for any accumulated vacation or sick time also are taxable. You should ensure that enough taxes are withheld from these payments or make estimated tax payments to avoid a big bill at tax time. Public assistance and food stamps are not taxable.

Most importantly, if you believe you may have trouble paying your tax bill, contact Advance Tax Relief LLC immediately. In many cases, there are steps we can take to help ease the burden or settle the tax debt for a small fraction of what is owed .

We advise also that you file your tax returns even if you are unable to pay so you can avoid possible additional penalties.

Have IRS Problems? Contact Us!

The analysis is free (800)790-8574 or contact us via web
Click here: http://advancetaxrelief.net/Contact_Us.html

ADVANCE TAX RELIEF - We Solve Tax Problems
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ARE YOU HAVING A HARD TIME PAYING YOUR TAX BILL?

People facing financial difficulties may find that there's a tax impact to events such as job loss, debt forgiveness or tapping a retirement fund. For example, if your income decreased, you may be newly eligible for certain tax credits, such as the Earned Income Tax Credit.

Most importantly, if you believe you may have trouble paying your tax bill, contact the Advance Tax Relief LLC immediately. In many cases, there are steps we can take to help ease the burden or settle the tax debt for a small fraction of what is owed .

We advise also that you file a tax return even if you are unable to pay so you can avoid additional penalties.

Have IRS Problems? Contact Us!

The analysis is free (800)790-8574 or contact us via web
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IRS - Tax Preparers Must Renew Their PTINs for 2014

IR-2013-101, Dec. 23, 2013

WASHINGTON — The Internal Revenue Service today reminded professional tax return preparers to renew their Preparer Tax Identification Numbers (PTINs) if they plan to prepare returns in 2014. Current PTINs expire Dec. 31, 2013.

Anyone who prepares or helps prepare all or substantially all of a federal tax return, claim for refund or other federal forms for compensation must have a valid PTIN. All enrolled agents also must have a PTIN. Tax professionals can obtain or renew their PTINs at www.irs.gov/ptin.

Those renewing their PTINs can complete the process in about 15 minutes. The renewal fee is $63. Tools are available to assist any preparers who have forgotten their user name, password or email address.

New tax return preparers who are obtaining a first-time PTIN must create an online PTIN account as a first step and then follow directions to obtain a PTIN. Their fee is $64.25.

The annual PTIN requirement is part of the IRS’s ongoing effort to enhance tax administration and improve services to taxpayers.

There are approximately 700,000 tax preparers with 2013 PTINs. More than 400,000 have already renewed their PTIN, plus more than 25,000 have obtained a first-time PTIN for 2014.

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Plan Now to Get Full Benefit of Saver’s Credit; Tax Credit Helps Low- and Moderate-Income Workers Save for Retirement

WASHINGTON — Low- and moderate-income workers can take steps now to save for retirement and earn a special tax credit in2013 and the years ahead, according to the Internal Revenue Service.

The saver’s credit helps offset part of the first $2,000 workers voluntarily contribute to IRAs and to 401(k) plans and similar workplace retirement programs. Also known as the retirement savings contributions credit, the saver’s credit is available in addition to any other tax savings that apply.

Eligible workers still have time to make qualifying retirement contributions and get the saver’s credit on their 2013 tax return. People have until April 15, 2014, to set up a new individual retirement arrangement or add money to an existing IRA for 2013. However, elective deferrals (contributions) must be made by the end of the year to a 401(k) plan or similar workplace program, such as a 403(b) plan for employees of public schools and certain tax-exempt organizations, a governmental 457 plan for state or local government employees, and the Thrift Savings Plan for federal employees. Employees who are unable to set aside money for this year may want to schedule their 2014 contributions soon so their employer can begin withholding them in January.
                                                                                   



The saver’s credit can be claimed by:

· Married couples filing jointly with incomes up to $59,000 in 2013 or $60,000 in 2014;

· Heads of Household with incomes up to $44,250 in 2013 or $45,000 in 2014; and

· Married individuals filing separately and singles with incomes up to $29,500 in 2013 or $30,000 in 2014.

Like other tax credits, the saver’s credit can increase a taxpayer’s refund or reduce the tax owed. Though the maximum saver’s credit is $1,000, $2,000 for married couples, the IRS cautioned that it is often much less and, due in part to the impact of other deductions and credits, may, in fact, be zero for some taxpayers.

A taxpayer’s credit amount is based on his or her filing status, adjusted gross income, tax liability and amount contributed to qualifying retirement programs. Form 8880 is used to claim the saver’s credit, and its instructions have details on figuring the credit correctly.

In tax-year 2011, the most recent year for which complete figures are available, saver’s credits totaling just over $1.1 billion were claimed on nearly 6.4 million individual income tax returns. Saver’s credits claimed on these returns ave raged $215 for joint filers, $166 for heads of household and $128 for single filers.

The saver’s credit supplements other tax benefits available to people who set money aside for retirement. For example, most workers may deduct their contributions to a traditional IRA. Though Roth IRA contributions are not deductible, qualifying withdrawals, usually after retirement, are tax-free. Normally, contributions to 401(k) and similar workplace plans are not taxed until withdrawn.

Other special rules that apply to the saver’s credit include the following:

· Eligible taxpayers must be at least 18 years of age.

· Anyone claimed as a dependent on someone else’s return cannot take the credit.

· A student cannot take the credit. A person enrolled as a full-time student during any part of 5 calendar months during the year is considered a student.

Certain retirement plan distributions reduce the contribution amount used to figure the credit. For 2013, this rule applies to distributions received after 2010 and before the due date, including extensions, of the 2013 return. Form 8880 and its instructions have details on making this computation.

Begun in 2002 as a temporary provision, the saver’s credit was made a permanent part of the tax code in legislation enacted in 2006. To help preserve the value of the credit, income limits are now adjusted annually to keep pace with inflation.

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***FEDERAL COURT SHUTS DOWN MONTGOMERY AREA TAX PREPARER

Alabama Preparer Allegedly Falsified Tax Returns at Cost of Millions to U.S. Treasury

WASHINGTON – A federal court in Montgomery, Ala., permanently barred Kenya Hendrix Adams from preparing tax returns for others, the Justice Department announced today. The permanent injunction order was signed by U.S. District Court Judge Mark E. Fuller of the Middle District of Alabama.

The order, filed on Dec. 20, 2013, also requires Adams to turn over to the United States copies of all returns or claims for refund that she prepared after Jan. 1, 2008, and to notify each person for whom she prepared returns since that date. The order authorizes the United States to monitor Adams' compliance with the terms of the order.

The government's complaint alleged that Adams repeatedly prepared federal tax returns that understated her clients’ federal tax liabilities. According to the complaint, Adams did so by falsely claiming or inflating tax credits or fabricating deductions. The suit alleges that the harm to the United States Treasury as a result of her conduct could be in the millions of dollars.

"These fraudulent tax preparers create a horrible problem in this area," said U.S. Attorney George L. Beck Jr. of the Middle District of Alabama. "What these people are doing must be stopped. I applaud the IRS for taking the steps to shut down those fraudulent tax preparers."

Claiming bogus tax refunds is one of the IRS’s Dirty Dozen Tax Scams. In the past decade, the Justice Department's Tax Division has obtained injunctions against hundreds of tax fraud promoters and unscrupulous tax preparers. Information about these cases is available on the Justice Department website. For more information about choosing a tax return preparer, see the IRS website and the IRS YouTube Channel.

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The analysis is free (800)790-8574 or contact us via web
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