Saturday, February 28, 2015
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.
Have any tax related questions or need IRS tax help?
contact us (800)790-8574 for a free consultation
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Friday, February 27, 2015
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.
Have any tax related questions or need IRS tax help?
contact us (800)790-8574 for a free consultation
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Thursday, February 26, 2015
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.
Have any tax related questions or need IRS tax help?
contact us (800)790-8574 for a free consultation
ADVANCE TAX RELIEF LLC - We Solve Tax Problems
www.advancetaxrelief.com
(800)790-8574
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Have any tax related questions or need IRS tax help?
contact us (800)790-8574
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Wednesday, February 25, 2015
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.
Have any tax related questions or need IRS tax help?
contact us (800)790-8574
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Tuesday, February 24, 2015
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.
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?
Have any tax related questions or need IRS tax help? contact us (800)790-8574
ADVANCE TAX RELIEF LLC - We Solve Tax Problems
(800)790-8574
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Friday, February 20, 2015
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:
Steps to take if you become a victim
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
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How to reduce your risk
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. |
Thursday, February 19, 2015
WHAT YOU SHOULD KNOW IF YOU CHANGE YOUR NAME (ADVANCE TAX RELIEF LLC www.advancetaxrelief.com (800)790-8574)
Did you change your name last year? If you did, it can affect your taxes. All the names on your tax return must match Social Security Administration records. A name mismatch can delay your refund. Here’s what you should know if you changed your name:
• Report Name Changes. Did you get married and are now using your new spouse’s last name or hyphenated your last name? Did you divorce and go back to using your former last name? In either case, you should notify the SSA of your name change. That way, your new name on your IRS records will match up with your SSA records.
• Dependent Name Change. Notify the SSA if your dependent had a name change. For example, this could apply if you adopted a child and the child’s last name changed.
If you adopted a child who does not have a SSN, you may use anAdoption Taxpayer Identification Number on your tax return. An ATIN is a temporary number. You can apply for an ATIN by filing Form W-7A, Application for Taxpayer Identification Number for Pending U.S. Adoptions, with the IRS. You can visit IRS.gov to view, download, print or order the form at any time.
• Get a New Card. File Form SS-5, Application for a Social Security Card, to notify SSA of your name change. You can get the form on SSA.gov or call 800-772-1213 to order it. Your new card will show your new name with the same SSN you had before.
• Report Changes in Circumstances in 2015. If you purchase health insurance coverage through the Health Insurance Marketplace you may get advance payments of the premium tax credit in 2015. If you do, be sure to report changes in circumstances, such as a name change, a new address and a change in your income or family size to your Marketplace throughout the year. Reporting changes will help make sure that you get the proper type and amount of financial assistance and will help you avoid getting too much or too little in advance.
If you found this Tax Tip helpful, please share it through your social media platforms.
Hope you find this information helpful?
IRS PROBLEMS OR HAVE IRS TAX RELATED QUESTIONS? GIVE US A CALL (800)790-8574 OR
EMAIL: noah.daniels@advancetaxrelief.com
EMAIL: noah.daniels@advancetaxrelief.com
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.
"I will recommend your service to anybody that I know will need tax help, thanks to the staff at Advance Tax Relief for helping me abate my tax penalties and resolve my IRS audit". Ivan Garcia, Houston, TX
"I was almost obligated to pay $35,641 as a result of Identity Theft tax fraud. Advance Tax Relief gave me my life back, Thank you guys so much" - Scott Cody, CA.
"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.
"I will recommend your service to anybody that I know will need tax help, thanks to the staff at Advance Tax Relief for helping me abate my tax penalties and resolve my IRS audit". Ivan Garcia, Houston, TX
"I was almost obligated to pay $35,641 as a result of Identity Theft tax fraud. Advance Tax Relief gave me my life back, Thank you guys so much" - Scott Cody, CA.
Sunday, February 15, 2015
OWNER OF TAX PREPARATION BUSINESS CONVICTED (ADVANCE TAX RELIEF LLC www.advancetaxrelief.com)
The owners of a tax preparation business that filed fraudulent tax returns on behalf of inmates at various New Jersey prisons were convicted at trial today of conspiracy, mail fraud and making false claims to the United States for payment of fraudulent tax refunds, U.S. Attorney Paul J. Fishman of the District of New Jersey and Principal Deputy Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division announced.
Kamal J. James, aka Bro Messiah Aziz El, of Seaford, Delaware, and Crystal G. Hawkins, aka Sis. Crystal Gabri El, of Laurel, Delaware, had each been charged in a superseding indictment with one count of conspiracy, 16 counts of making false claims for income tax refunds and three counts of mail fraud. They were convicted on all counts following a one-week trial before U.S. District Judge Peter G. Sheridan in federal court in Trenton, New Jersey. The jury deliberated one hour before returning the guilty verdicts.
According to the superseding indictment and the evidence at trial:
Between October 2011 and October 2013, defendants James and Hawkins operated Release Refunds, a purported tax preparation business – previously based in Brick, New Jersey, and in Seaford, Delaware – through which they solicited current and former New Jersey prison inmates as clients and then filed fraudulent tax returns on their behalf.
James and Hawkins sent Release Refunds “promotional” flyers to inmates at various New Jersey prisons and halfway houses offering tax return preparation services. The pair asked inmates interested in Release Refunds’ services to provide basic identification information and to sign income tax returns and other Internal Revenue Service (IRS) documents, but not to include any information about their income or withholdings. James and Hawkins then filled in the missing income information on the return forms, fabricating the inmates’ earnings to trigger fraudulent and inflated refunds.
During the course of the investigation, an undercover IRS-Criminal Investigation agent posing as an inmate in a New Jersey prison submitted a completed Release Refunds form and sent it to James and Hawkins. They then sent the “inmate” blank income tax forms and other IRS documents and instructions to sign the documents. James and Hawkins did not request any financial information from the undercover agent before preparing three fraudulent tax returns – including false income information that James and Hawkins provided – to be filed on behalf of the agent for tax years 2010 through 2012. The fraudulent returns resulted in several thousand dollars in refunds and a $1,485 fee claimed by the defendants.
The conspiracy count carries a statutory maximum sentence of 10 years in prison. The fraudulent claims counts each carry a statutory maximum sentence of five years in prison and the mail fraud counts each carry a statutory maximum sentence of 20 years in prison. The defendants also face a fine of $250,000, or twice the amount of the gain or loss from the offense, for each count of conviction. Sentencing is scheduled for May 11.
Hope you find this information helpful?
IRS PROBLEMS OR HAVE IRS TAX RELATED QUESTIONS? GIVE US A CALL (800)790-8574 OR
EMAIL: noah.daniels@advancetaxrelief.com
EMAIL: noah.daniels@advancetaxrelief.com
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.
"I will recommend your service to anybody that I know will need tax help, thanks to the staff at Advance Tax Relief for helping me abate my tax penalties and resolve my IRS audit". Ivan Garcia, Houston, TX
"I was almost obligated to pay $35,641 as a result of Identity Theft tax fraud. Advance Tax Relief gave me my life back, Thank you guys so much" - Scott Cody, CA.
"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.
"I will recommend your service to anybody that I know will need tax help, thanks to the staff at Advance Tax Relief for helping me abate my tax penalties and resolve my IRS audit". Ivan Garcia, Houston, TX
"I was almost obligated to pay $35,641 as a result of Identity Theft tax fraud. Advance Tax Relief gave me my life back, Thank you guys so much" - Scott Cody, CA.
Sunday, February 8, 2015
IRS AUDIT TAX PROBLEMS? GO TO TAX COURT! (Advance Tax Relief LLC www.advancetaxrelief.com (800)790-8574)
You are not required to go through the IRS Appeals Process before going to court. If you don't appeal - or do but aren't happy with the way it comes out- you can go to one of three courts:
United States Tax Court
United States District Court
Court of Federal Claims
United States District Court
Court of Federal Claims
Thomas G. Fisher was appointed Judge of the Indiana Tax Court on July 1, 1986, by Governor Robert D. Orr and retired January 16, 2011.
Almost everyone chooses Tax Court, for two good reasons: First, the District Court(DC) and Claims Court(CC) require you to first pay the tax and then sue for a refund.
Second, few people succeed in the (DC) & (CC) without a lawyer.
Tax Court, on the hand, allows you to contest an audit for a filing fee of $60 and offers a reasonable chance of success without a lawyer. However, we advise you contact the tax lawyers at Advance Tax Relief LLC!
Hope you find this information helpful?
IRS PROBLEMS OR HAVE IRS TAX RELATED QUESTIONS? GIVE US A CALL (800)790-8574 OR
EMAIL: noah.daniels@advancetaxrelief.com
EMAIL: noah.daniels@advancetaxrelief.com
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.
"I will recommend your service to anybody that I know will need tax help, thanks to the staff at Advance Tax Relief for helping me abate my tax penalties and resolve my IRS audit". Ivan Garcia, Houston, TX
"I was almost obligated to pay $35,641 as a result of Identity Theft tax fraud. Advance Tax Relief gave me my life back, Thank you guys so much" - Scott Cody, CA.
"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.
"I will recommend your service to anybody that I know will need tax help, thanks to the staff at Advance Tax Relief for helping me abate my tax penalties and resolve my IRS audit". Ivan Garcia, Houston, TX
"I was almost obligated to pay $35,641 as a result of Identity Theft tax fraud. Advance Tax Relief gave me my life back, Thank you guys so much" - Scott Cody, CA.
Wednesday, February 4, 2015
CRIME DOESN'T PAY, BUT IT MAY BE DEDUCTIBLE (ADVANCE TAX RELIEF LLC (800)790-8574 www.advancetaxrelief.com)
Back in the 1970's, Jeffrey Edmondson was a successful drug dealer in the Minneapolis area, selling substantial amounts of marijuana, cocaine and amphetamines. Unfortunately for him, he got caught, convicted and sentenced to jail.
To add insult to injury, the IRS audited him and concluded that he owed over $17,000 in back taxes on his drug earnings, which he never declared on his income taxes. Although, one would have thought that a tax assessment was the least of his problems, Edmondson appealed the audit, claiming that the IRS failed to consider the tax deductible costs he incurred in conducting his "business".
The tax court held that edmondson was self-employed in the business of drugs. Therefore, he was entitled to a home office deduction because he conducted his "business" from home, and could also deduct the cost of good sold from is drug dealings income (Edmondson v. Comm'r., TC Memo 1981- 623)
In 1982, a special rule was added to the tax law barring tax deductions for expenses incurred in the business of drug trafficking. (I.R.C section 280E)
However, people operating different types of illegal businesses, such as prostitution or contract killing, are still permitted to deduct their expenses. But people involved in such illegal endeavors rarely file tax returns.
Hope you find this information helpful?
Have any tax related questions or need IRS tax help? contact us (800)790-8574
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(800)790-8574
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To add insult to injury, the IRS audited him and concluded that he owed over $17,000 in back taxes on his drug earnings, which he never declared on his income taxes. Although, one would have thought that a tax assessment was the least of his problems, Edmondson appealed the audit, claiming that the IRS failed to consider the tax deductible costs he incurred in conducting his "business".
The tax court held that edmondson was self-employed in the business of drugs. Therefore, he was entitled to a home office deduction because he conducted his "business" from home, and could also deduct the cost of good sold from is drug dealings income (Edmondson v. Comm'r., TC Memo 1981- 623)
In 1982, a special rule was added to the tax law barring tax deductions for expenses incurred in the business of drug trafficking. (I.R.C section 280E)
However, people operating different types of illegal businesses, such as prostitution or contract killing, are still permitted to deduct their expenses. But people involved in such illegal endeavors rarely file tax returns.
Hope you find this information helpful?
Have any tax related questions or need IRS tax help? contact us (800)790-8574
ADVANCE TAX RELIEF LLC - We Solve Tax Problems
www.advancetaxrelief.com
(800)790-8574
BBB ACCREDITED BUSINESS
Monday, February 2, 2015
HOW BIG (OR SMALL) CAN YOUR HOME OFFICE BE? (ADVANCE TAX RELIEF LLC (800)790-8574 www.advancetaxrelief.com)
Your home office can be as big or small as you want or need. You are not required to use as small a space as possible. If you like plenty of office space, you can spread out and even use more than one room. But remember, you may use your home office space only for business. You aren't even suppose to use it for personal business, such as writing personal checks.
Although, the IRS probably won't be inspecting your home office, your deductions must still make sense in the event you are audited. If you live in a one-bedroom apartment and claim the entire bedroom as a home office, you'll have to have an answer ready when the IRS asks where you sleep.
In one case, for example, a psychologist who lived in San Francisco claimed a home office deduction for one-quarter of her apartment. However, the entire apartment was a 400-square-foot studio, consisting of an open area(approximately 13 feet by 15 feet) furnished with a desk and a couch, and a small dining area and kitchen (each approximately seven feet by eight feet). Given the layout of this tiny apartment, neither the IRS nor the tax court bought the psychologists claim that she used 100 square feet exclusively for her practice. (Mullin v. Comm'r., TC Memo 2001 -121.) On the other hand, a home based entrepreneur who lived in a studio apartment in Detroit was allowed to take the home office deduction for a walk-in closet he claimed to use exclusively to store corporate books and records. In the case, it was plausible that he used the closet only for business. (Hughes v. Comm'r., TC Memo 1981-140)
Hope you find this information helpful?
Have any tax related questions or need IRS tax help? contact us (800)790-8574
ADVANCE TAX RELIEF LLC - We Solve Tax Problems
(800)790-8574
BBB ACCREDITED BUSINESS
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