FOUR WAYS TO HANDLE DISAGREEMENTS WITH IRS AUDITORS - ADVANCE TAX RELIEF LLC

A common problem with IRS audits is not seeing eye to eye with the auditor. The auditor sees the case narrowly, while you see the big picture. You know you incurred that expense or did not have unreported income, but the auditor’s criteria is difficult to satisfy.

Here are some ways to get problem IRS audits resolved:

1. Try to work it out with the manager. Every auditor has a manager. Sometimes, a call to the manager can resolve thorny issues.

2. Take the case to IRS appeals. IRS Appeals Officers settle cases on what is known as the “hazards of litigation” – meaning if you went to Tax Court, what would an impartial judge say about your case? Auditors rarely consider that, which is often the cause of the bottleneck.

3. Go directly to Tax Court. If you are at a standstill, request that the auditor close the case out and issue a Notice of Deficiency so you can take your case directly to Tax Court.

An advantage to going to Tax Court first and then conducting settlement negotiations is that the trial is real. The “reality” of a pending trial can help negotiations, especially if the IRS evidence is weak.

4. If you already are getting billing notices from the IRS, request audit reconsideration. If you did not take advantage of going to IRS Appeals or Tax Court and you are getting billing notices for an amount you do not owe, you can still request that the IRS reconsider the audit after the fact. You do not need to overpay your liability if you have documentation that supports your position and it was not adequately considered during the audit.

IRS Tax Problems? Contact us for a free consultation (800)790-8574 before an IRS enforcement action is taken against you..

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GOT AN IRS NOTICE? HERE'S WHAT YOU SHOULD DO! (ADVANCE TAX RELIEF LLC)

Each year the IRS mails millions of notices and letters to taxpayers. If you receive a notice from the IRS, here is what you should do:

DON'T IGNORE IT: You can respond to most IRS notices quickly and easily. It is important that you reply right away or contact us to take care of all the guess work for you. Experienced Tax Pro's on staff.

FOCUS ON THE ISSUE. IRS notices usually deal with a specific issue about your tax return or tax account. Understanding the reason for your notice is important before you can comply.

FOLLOW INSTRUCTIONS. Read the notice carefully. It will tell you if you need to take any action to resolve the matter. You should follow the instructions.

RIGHT TO REPRESENTATION: If you need help, you have a right to seek representation. Feel free to contact us for free consultation (800)790-8574 or through our wesite www.advancetaxrelief.com.

Watch Out for Scams. Don’t fall for phone and phishing email scams that use the IRS as a lure. The IRS first contacts people about unpaid taxes by mail – not by phone. The IRS does not initiate contact with taxpayers by email, text or social media.

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Testimonial:
"My husband lost his job and the IRS was garnishing my wages. I called advance tax relief for help, my wage garnishment was released and we settled with the IRS for $1,200 on a $48k debt. Our family is very grateful" - Shirley W, Tampa FL.

IS THE IRS GETTING READY TO LEVY YOUR BANK ACCOUNT? ADVANCE TAX RELIEF LLC (800)790-8574

If they are, how do they know where you bank and work?

In most cases, your bank or employer tells them.

Sometimes, the information the IRS has to levy was supplied by you.

If you have a bank account that pays you interest, that interest is reported to the IRS on Form 1099 INT, along with the name of your bank. Your bank isn’t reporting the information to the IRS because they want to, they are doing it because they have to. Tax laws require banks to tell the IRS the amount of money that they pay you. The reason is to permit the IRS to make sure that you are reporting all of your income on your tax return. But that information is also used by IRS collections to identify where you bank to levy your accounts.

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Testimonial:
"My husband lost his job and the IRS was garnishing my wages. I called advance tax relief for help, my wage garnishment was released and we settled with the IRS for $1,200 on a $48k debt. Our family is very grateful" - Shirley W, Tampa FL.

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CLIENT OWED IRS 48K, IRS SETTLED FOR $650 - ADVANCE TAX RELIEF LLC (800)790-8675

The obvious advantage is that if your Offer in Compromise is accepted, you'll save a heap of money.

Also, even if your offer is ultimately rejected, your stress level will 
be reduced while the offer is pending. This is because the IRS normally doesn't seize your wages or property during that period.

Finally, once your offer in compromise is accepted and paid in full, the IRS "must" release all tax liens on credit and property within 30 days. Your credit rating will improve as soon as a Certificate of Release of Federal Tax Liens is filed on the public record.

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Testimonial:
"My husband lost his job and the IRS was garnishing my wages. I called advance tax relief for help, my wage garnishment was released and we settled with the IRS for $1,200 on a $48k debt. Our family is very grateful" - Shirley W, Tampa FL.

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REDUCE YOUR TAXES WITH THE CHILD AND DEPENDENT CARE CREDIT (ADVANCE TAX RELIEF LLC www.advancetaxrelief.com (800)790-8574)

The Child and Dependent Care Tax Credit can reduce the taxes you pay. If you paid someone to care for a person in your household last year while you worked or looked for work, then read on for 10 facts from the IRS about this important tax credit:

1. Child, Dependent or Spouse. You may be able to claim the credit if you paid someone to care for your child, dependent or spouse last year.

2. Work-Related Expense. The care must have been necessary so you could work or look for work. If you are married, the care also must have been necessary so your spouse could work or look for work. This rule does not apply if your spouse was disabled or a full-time student.

3. Qualifying Person. The care must have been for “qualifying persons.” A qualifying person can be your child under age 13. A qualifying person can also be your spouse or dependent who lived with you for more than half the year and is physically or mentally incapable of self-care.

4. Earned Income. You must have earned income for the year, such as wages from a job. If you are married and file a joint tax return, your spouse must also have earned income. Special rules apply to a spouse who is a student or disabled.

5. Credit Percentage / Expense Limits. The credit is worth between 20 and 35 percent of your allowable expenses. The percentage depends on the amount of your income. Your allowable expenses are limited to $3,000 if you paid for the care of one qualifying person. The limit is $6,000 if you paid for the care of two or more.

6. Dependent Care Benefits. If your employer gives you dependent care benefits, special rules apply. For more on these rules see Form 2441, Child and Dependent Care Expenses.

7. Qualifying Person’s SSN. You must include the Social Security Number of each qualifying person to claim the credit.

8. Care Provider Information. You must include the name, address and taxpayer identification number of your care provider on your tax return.

9. Form 2441. You file Form 2441 with your tax return to claim the credit.

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MORTGAGE DEBT FORGIVENESS: TAX TIP (ADVANCE TAX RELIEF LLC www.advancetaxrelief.com (800)790-8574)

If your lender cancels part or all of your debt, you normally must pay tax on that amount. However, the law provides for an exclusion that may apply to homeowners who had their mortgage debt cancelled in 2014. In most cases where the exclusion applies, the amount of the cancelled debt is not taxable. Here are the top 10 tax tips about mortgage debt cancellation:

1. Main Home.  If the cancelled debt was a loan on your main home, you may be able to exclude the cancelled amount from your income. You must have used the loan to buy, build or substantially improve your main home to qualify. Your main home must also secure the mortgage.

2.Loan Modification.  If your lender cancelled part of your mortgage through a loan modification or ‘workout,’ you may be able to exclude that amount from your income. You may also be able to exclude debt discharged as part of the Home Affordable Modification Program, or HAMP. The exclusion may also apply to the amount of debt cancelled in a foreclosure.

3.Refinanced Mortgage.  The exclusion may apply to amounts cancelled on a refinanced mortgage. This applies only if you used proceeds from the refinancing to buy, build or substantially improve your main home. Amounts used for other purposes don’t qualify.

4.Other Cancelled Debt.  Other types of cancelled debt such as second homes, rental and business property, credit card debt or car loans do not qualify for this special exclusion. On the other hand, there are other rules that may allow those types of cancelled debts to be nontaxable.

5.Form 1099-C.  If your lender reduced or cancelled at least $600 of your debt, you should receive Form 1099-C, Cancellation of Debt, in January of the next year. This form shows the amount of cancelled debt and other information.

6.Form 982.  If you qualify, report the excluded debt on Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness. File the form with your federal income tax return.

7.Exclusion extended.  The law that authorized this exclusion had expired at the end of 2013. The Tax Increase Prevention Act extended it to apply for one year, through Dec. 31, 2014.

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CLAIMING A TAX DEDUCTION FOR MEDICAL AND DENTAL EXPENSES (ADVANCE TAX RELIEF LLC (800)790-8574 www.advancetaxrelief.com)

Your medical expenses may save you money at tax time, but a few key rules apply. Here are some tax tips to help you determine if you can claim a tax deduction:

You must itemize: You can only claim your medical expenses that you paid for in 2014 if you itemize deductions on your federal tax return. If you take the standard deduction, you can’t claim these expenses.

AGI threshold: You include all the qualified medical costs that you paid for during the year. However, you can only deduct the amount that is more than 10 percent of your adjusted gross income.

Temporary threshold for age 65: If you or your spouse is age 65 or older, the AGI threshold is 7.5 percent of your AGI. This exception applies through Dec. 31, 2016.

Costs to include: You can include most medical and dental costs that you paid for yourself, your spouse and your dependents. Exceptions and special rules apply. Costs reimbursed by insurance or other sources do not qualify for a deduction.

Expenses that qualify: You can include the costs of diagnosing, treating, easing or preventing disease. The costs you pay for prescription drugs and insulin qualify. The costs you pay for insurance premiums for policies that cover medical care qualify. Some long-term care insurance costs also qualify.

Travel costs count: You may be able to claim travel costs you pay for medical care. This includes costs such as public transportation, ambulance service, tolls and parking fees. If you use your car, you can deduct either the actual costs or the standard mileage rate for medical travel. The rate is 23.5 cents per mile for 2014.

No double benefit: You can’t claim a tax deduction for medical expenses you paid for with funds from your Health Savings Accounts or Flexible Spending Arrangements. Amounts paid with funds from those plans are usually tax-free. This rule prevents two tax benefits for the same expense.

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FIVE KEY FACTS ABOUT UNEMPLOYMENTS BENEFITS (ADVANCE TAX RELIEF LLC www.advancetaxrelief.com (800)790-8574)

If you lose your job, you may qualify for unemployment benefits. The payments may serve as much needed relief. But did you know unemployment benefits are taxable? Here are five key facts about unemployment compensation:

1. Unemployment is taxable. You must include all unemployment compensation as income for the year. You should receive a Form 1099-G, Certain Government Payments by Jan. 31 of the following year. This form will show the amount paid to you and the amount of any federal income tax withheld.

2. Paid under U.S. or state law. There are various types of unemployment compensation. Unemployment includes amounts paid under U.S. or state unemployment compensation laws.

3. Union benefits may be taxable. You must include benefits paid to you from regular union dues in your income. Other rules may apply if you contributed to a special union fund and those contributions are not deductible. In that case, you only include as income any amount that you got that was more than the contributions you made.

4. You may have tax withheld. You can choose to have federal income tax withheld from your unemployment. You can have this done using Form W-4V, Voluntary Withholding Request. If you choose not to have tax withheld, you may need to make estimated tax payments during the year.

5. If you’re facing financial difficulties, contact the experts at Advance Tax Relief LLC for a free tax relief consultation.

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CHILD SUPPORT IS KILLING ME? - ADVANCE TAX RELIEF LLC

CHANGES TO SMALL BUSINESS HEALTH CARE TAX CREDIT (ADVANCE TAX RELIEF LLC www.advancetaxrelief.com)

Small employers should be aware of changes to the small business health care tax credit, a provision in the Affordable Care Act that gives a tax credit to eligible small employers who provide health care to their employees.

Beginning in 2014, there are changes to the tax credit that may affect your small business or tax-exempt organization:

Credit percentage increased from 35 percent to 50 percent of employer-paid premiums; for tax-exempt employers, the percentage increased from 25 percent to 35 percent.

Small employers may claim the credit for only two consecutive taxable years beginning in tax year 2014 and beyond.

For 2014, the credit is phased out beginning when average wages equal $25,400 and is fully phased out when average wages exceed $50,800. The average wage phase out is adjusted annually for inflation.

Generally, small employers are required to purchase a Qualified Health Plan from a Small Business Health Options Program Marketplace to be eligible to claim the credit. Transition relief from this requirement is available to certain small employers.

Small employers may still be eligible to claim the tax credit for tax years 2010 through 2013. Employers who were eligible to claim this credit for those prior years – but did not do so – may consider amending prior years’ returns if they’re eligible to do so in order to claim the credit.

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KEY POINTS TO KNOW ABOUT EARLY RETIREMENT DISTRIBUTIONS (ADVANCE TAX RELIEF LLC www.advancetaxrelief.com (800)790-8574)

Some people take an early withdrawal from their IRA or retirement plan. Doing so in many cases triggers an added tax on top of the income tax you may have to pay. Here are some key points you should know about taking an early distribution:

1.Early Withdrawals. An early withdrawal normally means taking the money out of your retirement plan before you reach age 59½.

2.Additional Tax. If you took an early withdrawal from a plan last year, you must report it to the IRS. You may have to pay income tax on the amount you took out. If it was an early withdrawal, you may have to pay an added 10 percent tax.

3.Nontaxable Withdrawals. The added 10 percent tax does not apply to nontaxable withdrawals. They include withdrawals of your cost to participate in the plan. Your cost includes contributions that you paid tax on before you put them into the plan.

A rollover is a type of nontaxable withdrawal. A rollover occurs when you take cash or other assets from one plan and contribute the amount to another plan. You normally have 60 days to complete a rollover to make it tax-free.

4.Check Exceptions. There are many exceptions to the additional 10 percent tax. Some of the rules for retirement plans are different from the rules for IRAs. See IRS.gov for details about these rules.

5.File Form 5329. If you made an early withdrawal last year, you may need to file a form with your federal tax return. See Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts, for details.

6.Use IRS e-file. Early withdrawal rules can be complex. IRS e-file is easiest and most accurate way to file your tax return. The tax software that you use to e-file will pick the right tax forms, do the math and help you get the tax benefits you’re due.

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WHAT IF YOUR SPOUSE IS YOUR EMPLOYEE? (ADVANCE TAX RELIEF LLC (800)790-8574 www.advancetaxrelief.com)

Instead of being a co-owners of a business, spouses can have an employer-employee relationship-that is, one spouse solely owns the business (usually as a sole proprietor) and the other spouse works as his or her employee. In this event, there is no need to worry about having to file a partnership tax return. One Schedule C would be filed in the name of the owner-spouse. The non-owner spouse's income would be employee salary subject to income tax and FICA(Social Security and Medicare)

However, a spouse is considered an employee only if there is an employer/employee relationship- that is, the first spouse substantially controls the business in terms of management decisions and the second spouse is under the direction and control of the first spouse.

If the second spouse has an equal say in the affairs of the business, provides substantially equal services to the business, and contributes capital to the business, that spouse cannot be treated as an employee.

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Have any tax related questions or need IRS tax help?

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SIX THINGS YOU SHOULD KNOW ABOUT THE CHILD TAX CREDIT (ADVANCE TAX RELIEF LLC (800)790-8574 www.advancetaxrelief.com)

The Child Tax Credit may save you money at tax-time if you have a qualified child. Here are six things you should know about the credit.

1. Amount.  The Child Tax Credit may help reduce your federal income tax by up to $1,000 for each qualifying child that you are eligible to claim on your tax return.

2. Additional Child Tax Credit.  If you qualify and get less than the full Child Tax Credit, you could receive a refund even if you owe no tax with the Additional Child Tax Credit.

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3. Qualifications.  For this credit, a qualifying child must pass several tests:

• Age test.  The child must have been under age 17 at the end of 2014.

• Relationship test.  The child must be your son, daughter, stepchild, foster child, brother, sister, stepbrother, or stepsister. The child may be a descendant of any of these individuals. A qualifying child could also include your grandchild, niece or nephew. You would always treat an adopted child as your own child. An adopted child includes a child lawfully placed with you for legal adoption.

• Support test.  The child must not have provided more than half of their own support for the year.

• Dependent test.  The child must be a dependent that you claim on your federal tax return.

• Joint return test.  The child cannot file a joint return for the year, unless the only reason they are filing is to claim a refund.

• Citizenship test.  The child must be a U.S. citizen, a U.S. national or a U.S. resident alien.

• Residence test.  In most cases, the child must have lived with you for more than half of 2014.

4. Limitations.  The Child Tax Credit is subject to income limitations. The limits may reduce or eliminate your credit depending on your filing status and income.

5. Schedule 8812.  If you qualify to claim the Child Tax Credit, make sure to check whether you must complete and attach Schedule 8812, Child Tax Credit, with your tax return. For example, if you claim a credit for a child with an Individual Taxpayer Identification Number, you must complete Part I of Schedule 8812. If you qualify to claim the Additional Child Tax Credit, you must complete and attach Schedule 8812. Visit IRS.gov to view, download or print IRS tax forms anytime.

6. IRS E-file.  Electronic filing is the best way to file your tax return. IRS E-file is the safe, accurate and easiest way to file.

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TAXABLE OR NOT - WHAT YOU NEED TO KNOW ABOUT INCOME (Advance Tax Relief www.advancetaxrelief.com (800)790-8574)

All income is taxable unless the law excludes it. Here are some basic rules you should know to help you file an accurate tax return:

Taxed income. Taxable income includes money you earn, like wages and tips. It also includes bartering, an exchange of property or services. The fair market value of property or services received is taxable.

Some types of income are not taxable except under certain conditions, including:

Life insurance. Proceeds paid to you because of the death of the insured person are usually not taxable. However, if you redeem a life insurance policy for cash, any amount that you get that is more than the cost of the policy is taxable.

Qualified scholarship. In most cases, income from this type of scholarship is not taxable. This means that amounts you use for certain costs, such as tuition and required books, are not taxable. On the other hand, amounts you use for room and board are taxable.

State income tax refund. If you got a state or local income tax refund, the amount may be taxable. You should have received a 2014 Form 1099-G from the agency that made the payment to you. If you didn’t get it by mail, the agency may have provided the form electronically. Contact them to find out how to get the form. Report any taxable refund you got even if you did not receive Form 1099-G.

Here are some types of income that are usually not taxable:

Gifts and inheritances
Child support payments
Welfare benefits
Damage awards for physical injury or sickness
Cash rebates from a dealer or manufacturer for an item you buy
Reimbursements for qualified adoption expenses
For more on this topic see Publication 525, Taxable and Nontaxable Income. You can get it on IRS.gov/forms anytime.

Hope you find this information helpful?

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TAXPAYER GUIDE TO IDENTITY THEFT (ADVANCE TAX RELIEF LLC www.advancetaxrelief.com (800)790-8574)

We know identity theft is a frustrating process for victims. We are committed to working with you to resolve your case as quickly as possible. What is tax-related identity theft? Tax-related identity theft occurs when someone uses your stolen Social Security number to file a tax return claiming a fraudulent refund. Generally, an identity thief will use your SSN to file a false return early in the year. You may be unaware you are a victim until you try to file your taxes and learn one already has been filed using your SSN. Know the warning signs Be alert to possible identity theft if you receive an IRS notice or letter that states that: More than one tax return was filed using your SSN; You owe additional tax, refund offset or have had collection actions taken against you for a year you did not file a tax return; IRS records indicate you received wages from an employer unknown to you. Steps to take if you become a victim File a report with the local police. File a complaint with the Federal Trade Commission atwww.identitytheft.gov or the FTC Identity Theft Hotline at 1-877-438-4338 or TTY 1-866-653-4261. Contact one of the three major credit bureaus to place a ‘fraud alert’ on your credit records: Equifax, www.Equifax.com, 1-800-525-6285 Experian, www.Experian.com, 1-888-397-3742 TransUnion, www.TransUnion.com, 1-800-680-7289 Close any accounts opened without your permission or tampered with. If your SSN is compromised and you know or suspect you are a victim of tax-related identity theft, take this additional steps: contact: ADVANCE TAX RELIEF LLC (800)790-8574 - Call for a free consultation www.advancetaxrelief.net BBB Accredited Business How to reduce your risk Don’t routinely carry your Social Security card or any document with your SSN on it. Don’t give a business your SSN just because they ask – only when absolutely necessary. Protect your personal financial information at home and on your computer. Check your credit report annually. Check your Social Security Administration earnings statement annually. Protect your personal computers by using firewalls, anti-spam/virus software, update security patches and change passwords for Internet accounts. Don’t give personal information over the phone, through the mail or the Internet unless you have either initiated the contact or are sure you know who is asking. The IRS does not initiate contact with taxpayers by email to request personal or financial information. This includes any type of electronic communication, such as text messages and social media channels. https://plus.google.com/+ADVANCETAXRELIEFLLCHouston/posts