You Need To File A Tax Return If....

by Norine Peardon

1. You have income exceeding the standard deduction plus your allowable dependent exemptions. For a single individual this amount is currently, $9,350.00. Reference: IRS Information

2. You worked for an employer and received a W-2 showing your earnings. A copy of your W-2 is submitted to the federal government and your state government. It also reveals the amount of taxes withheld by your employer for the year.

3. You worked as an independent contractor and received a form 1099 from the firm who employed you as an independent contractor. This includes consulting work and other services.

4. You may be elligible for earned income credits. If you worked for an employer and did not make enough wages to produce income for federal tax purposes, you may be elligible for an earned income credit and a refund on withheld taxes. Qualification for the earned income credit can also affect subsequent tax withholding.

5. You may have overpaid your withheld taxes or estimated tax and are due a refund. Remember withheld taxes are "your money"! Large amounts of expenses, i.e..medical, charitable, property tax, and interest are just some of the expenses which could offset your income, causing no tax to be paid or resulting in a refund.

6. You have sold or redeemed stocks, bonds, mutual funds or received dividends or capital gains. The brokerage companies sent you another type of form 1099.

7. You are retired and have income from IRA's (individual retirement plans)or pensions.

8. You are a student who worked for an employer, either full time or part time, and have education credits reported to you by your school.

9. You were self-employed.

It's the law!

Sources for more information are:

IRS Forms and Publication
Your financial consultant or tax attorney

About the Author
© Norine Peardon, 2010
The author, Norine Peardon has written many articles and blogs for the Internet. Visit her other publications at the following:
Buying Your First House Bulletin Board
Guide To Buying Your First House

Selecting a Quality Tax Attorney

by Cat Tikison

If you're looking for a tax attorney there are a few things to consider before making a decision. This guide will help you locate a tax attorney and choose someone that can aid with tax related problems or questions.

Things to Consider When Selecting a Tax Attorney

First off, not all tax attorneys are equal. You want someone that has experience in the tax law field. Many lawyers may advertise themselves as tax attorneys but do not have specialized knowledge in this area. Why is a professional tax attorney better than just a general lawyer working in tax law? A tax lawyer that has experience with tax law will be able to help you with unique tax situations that a normal lawyer cannot.

Places to Look for a Tax Lawyer

There are several places you can find a tax attorney. Get out your favorite phone book and browse the yellow pages under attorneys. There will probably be hundreds of listings, depending on the size of your city. The Web is the next place you should search and probably the best. Do an Internet search with your favorite search engine for 'tax attorneys' or 'tax lawyers'. The nice thing about searching the Web is you will find directories that list only tax attorneys, usually grouped by state or city. You can quickly find someone to help with your tax problems by using this method to locate tax lawyers.

Tips on Choosing a Tax Lawyer

A good strategy is to pick two or three final candidates and then setup interviews with them to make a final choice. Have a list of questions ready for the tax attorneys you are meeting with to find someone that can help with your special needs. Having a budget in mind is another important factor as tax attorneys may have higher rates than regular lawyers. Above all, use common sense and only work with someone that appears to have your best interest in mind.

About the Author
You can browse tax attorneys and locate a lawyer to assist with your tax issues now at http://www.taxattorneys4u.com .

Estate Planning - Key Tax Changes - Florida

by Robert Fowinkle

Taxation of property transfers at death can be traced back to ancient Egypt as early as 700 B.C. Nearly 2,000 years ago, Roman Emperor Caesar Augustus taxed estates of the wealthy at death.

Federal estate tax was implemented by the U.S. Congress in 1916. There was an exemption of $50,000 for residents at that time. Estate tax exemptions have risen over the years from $600,000 in 1987 to $2 million in 2008.

The exemption beginning in 2009 is $3,500,000 and a 45% tax on estate dollars above the exemption. Bush's tax cuts set into motion a gradual phase-out of the estate tax.

"Death should not be a taxable event, and government should not be profiting from death," Republican, Senator Grassley of Iowa, said.

Critics of the current system say it effectively taxes income twice, first when it is earned and again when the earner dies and leaves it to an heir.

Officially as it stands, in 2010 there will be no estate tax, but tax experts generally don't believe that will happen under the new administration. If no congressional action takes place it will revert back to 2001 levels in 2011.

Jonathan Weisman of the Wall Street Journal writes: Democrats in Congress will move quickly to block the estate tax free year of 2010. The Democratic stance on the estate tax contrasts with Mr. Obama's reluctance to press forward with his campaign pledge to raise income-tax rates on top earners. Under the Obama plan detailed during the campaign, the estate tax would be locked in permanently at the rate and exemption levels that took effect this year. That would exempt estates of $3.5 million -- $7 million for couples -- from any taxation. The value of estates above that would be taxed at 45%.

I personally have to agree with Senator Grassley's statement above. "Death should not be a taxable event". However if we must have a tax on estates the exemption of $3.5 million per individual and $7 million for couples -- from any taxation and 45% on amounts above would be acceptable at this time.

The element of automatic increases or indexing of the exemptions on individuals and couples is very important and should be implemented into the law. This would certainly help stabilize the estate planning process. Our current system has created a nightmare of changes in the planning process.

I would be remiss if I did not cover one very important issue of the heirs paying the estate taxes. There are four methods of paying federal estate taxes (1) current cash (2) borrowing money or arranging payments to the IRS (3) selling off assets (4) life insurance. The first three methods are the most expensive ways to pay federal estate taxes. Life insurance is by far the least expensive.

If you are in need of an estate planning review I recommend you use a team of three or four professionals. The team should consist of your CPA or accountant, estate planning attorney, estate planning life agent and financial adviser, if you use one.

About the Author
Robert "Bob" Fowinkle, CIC, CLU is the president of Moore, Fowinkle, & Shroer Agency in Bradenton.

Why You Must Hire an IRS Tax Attorney

by Enamul

You Must Hire an IRS Tax Attorney

Paying tax is a federal regulation that is punishable for those who fail to abide by it. There are situations when we would normally find ourselves in the situation and we have to face some serious penalties. This is when you would realize that you would need an expert to help you solve the tax problems that you would be facing so that you escape some of the penalties. You would also need the assistance of the experts when you are facing tax fraud cases.

However, you may come across several professionals claiming to have the power to help you handle the issues and charges you are facing. Still, you need to understand that only IRS tax attorneys have the power and the mandate to handle such cases. Yes, you may argue that a professional lawyer may also help or even an accountant would also help but you will agree that they both cannot get to what an IRS tax attorney can do for you.

Why specifically IRS tax attorney

If you need to know why you must hire an IRS tax attorney, then you have the following reasons to consider. They have several advantages that they would help you achieve unlike the other attorneys or accountants. They would help you get the compromise that you have been looking for. They have the power to help you get tax alien subordination unlike the other professionals mentioned.

Because their major focus is on the tax issues, you can be sure that they will help you get the release or the withdrawal that you have been looking for. They have the capability to help you with the wage levy and bank account garnishment issues that you may have. The other reason why you must hire an IRS tax attorney is that they are capable of rendering the civil and criminal additional examination.

For your entire tax fraud defense needs, you would have to ensure that you are getting someone whom you are sure would be able to grant the kind of help that you need. There are situations where you would have skipped paying your taxes; you would have to take on the help of these experts to help negotiate for the right installments agreement that you would be comfortable with paying.

Innocent spouse relief help is the other reason why you would need to hire IRS tax attorneys. They can also help with your back tax needs, penalty abatement as well as trust fund penalty defense. You must never let anyone cheat you that you can do with just other attorneys.

Any assistance required on your payroll tax, as well as employee and subcontractor classification issues must only be settled by an IRS attorney.

There are so many reasons why you must hire an IRS tax attorney which you would need to make use of. Tax consulting, attorney opinion letters and technical memoranda are just among the many advantages as well as reasons why you would find this kind of attorney very useful to work with. Transcript analysis, trade and business expenses, hobby losses are just the help you would be able to get.

About the Author
Learn How To Select The Right Tax Relief Attorney For You. If You Are Looking For Quality Information Related To Tax Lawyers visit www.TaxLawyersAttorney.com

Tax Lawyers Answer Tax Questions About the IRS, Audits, Liens, Levies, and Garnished Wages

by Jones & Ryan Tax Attorneys

Dealing with the IRS and related tax problems can be anyone's worst nightmare. Once the IRS has begun to go after you, it can seem that they won't stop even after you think they have gotten what they want. The tax lawyers of Jones & Ryan have been working since 1995 to solve such nightmares. Grey W. Jones, Esq. and Cheryl L. Ryan, Esq. are tax attorneys with extensive knowledge in tax law and today want to answer some of your common tax questions for free. Below you will find four answers to common tax and IRS related questions. If you wish to find more in-depth answers and get more tax help our website offers an extensive frequently asked tax questions section that we are constantly updating, as well as, a simple tax help questionnaire to start a free initial consultation with our tax lawyers.

Why did the IRS file a tax lien against me?

A tax lien, usually filed with your county recorder, serves as notice to those who may loan you money (home or car loan, bank loan, credit card advances, etc.) that once the lien is filed, the IRS' claim against you for taxes will come before those of anyone loaning you money after the filing. With certain exceptions it attaches to all property, real and personal, tangible and intangible, in which you have an interest, wherever the property may be located. A lien does not result in the actual seizure of any property, real estate or other forms. Further, before the IRS can file a lien against your property, it should give you 30-day notification that it intends to do so. This may give you time to make a payment or other arrangements.

Can the IRS levy on my house? On my wages? On my bank accounts? What about retirement funds?

A levy usually means the property is actually seized by the IRS. In the case of real estate, it means the IRS can force a sale of the property and keep the proceeds up to the amount of taxes, penalties and interest owed. A certain portion of wages and commissions are exempt from levy; the amount depends on a number of factors, including the number of dependents. All forms of bank accounts-savings, checking and CDs-are subject to a levy in full. In order to catch subsequent deposits, the IRS must serve a new levy on the bank. Once wages are levied upon, the same levy reaches all subsequent wages, commissions, bonuses, etc. No forms of retirement funds are exempt from levy, including social security payments and other forms of government pensions. However, unemployment and workers' compensation benefits are exempt from levy, as are SSI and some forms of public assistance. A small amount of household and personal effects, and tolls and equipment used in the taxpayer's trade or business, are exempt from levy.

The IRS is garnishing my wages. How can I stop them?

The IRS will garnish your wages after proper notice. All the IRS wants is payment or a good reason why you can't pay. This is when you can negotiate a payment plan or an Offer in Compromise or convince the agency you are worthy of uncollectible status. It is imperative after you receive a notice of "Intent to Levy" that you deal with it immediately. Intents to Levy are time-sensitive and if you miss your deadline to reply, i.e. make payment arrangements, your employer will be made aware of the situation and your wages may be garnished. If you're not sure how to go about this, consult a qualified tax attorney to assist you.

When is the right time to consult an attorney?

There are various reasons you would need to consult an attorney such as: fraud investigation, a long audit or one that involves legal issues, inadequate books/records, not filing returns for a number of years, if you don't actually owe taxes, if the statute of limitations has run out or if you would feel more comfortable dealing with the IRS through an attorney. Whatever the reason, don't hesitate to contact an experienced tax attorney to help you through your foray into the wide world of IRS red tape. Many law firms including Jones & Ryan offer free initial consultations to better understand your situation and decide how they can help.

The Jones and Ryan Tax Attorney website offers an extensive frequently asked tax questions and answers page. You will also find free tax articles as well as information about our lawyers, firm, initial free consultation, and how to get in contact with us.

About the Author
Grey W. Jones, Esq. has handled over 220 tax files focused almost exclusively on "problem tax cases" such as liens, levies, audits, or enforcement action by the government and IRS.

Being A Tax Attorney Is A Good Choice

by Jimmy JoJaks

Just like in the medical field, some lawyers choose a certain field of expertise. Although all lawyers have tackled and are considered knowledgeable in all aspects of the law, some would devote themselves only to divorce, family matters, succession, political, criminal, commercial, tax, and many others. How to become considered an expert in the field, your training should start from the time you entered college. How to become a tax attorney for example, it is ideal that you enrolled in a commercial course in college.

Accounting courses is the most courses for those who desires to be a tax attorney. This is the point where you develop an appreciation for numbers. Not that taxation is handling numbers all the time, it's just that comprehending taxation law concept will be much easier later on if you already have the background knowledge. Becoming a CPA is not really a requirement especially if you plan to practice law in private.

In case you are not good in numbers or have already graduated with a different degree, you can still be able to become a good tax attorney as long as you focused more in studying taxation law and commercial law subjects. While a student, it is important that you not only be able to remember what you have read but it is also important that you should be able to correlate what you read from other provisions of law.

Becoming a tax attorney is a good choice. Practitioners earn a lot compared to other lawyers especially if the firm you're working for have wealthy clients plus competition in that field is lesser compared to other cases. Going to law school can be a great choice even if you end up being a divorce lawyer for men.

About the Author
Jimmy writes a lot of content on the internet trying to spread the word about finance and investing. He likes to help people both save money and make money with the view of laughing all the way to the bank.

Tax Relief - What You Should Know About Tax Levies

by Rob Daniel

A tax levy is when the IRS seizes either your wages or your bank account after you have proven unable to pay your outstanding back taxes. In addition, a tax levy is imposed after you've been given many chances to pay and many warnings about the debt. "Seizing" essentially means that they put your bank account or your wages on hold, coordinating with your bank or your employer, so that you cannot access the money in either account. The IRS has the power to impose a levy even without the government being aware of it.

Horrible, yes; but, note that you'll be given chances to pay your tax delinquencies and many reminders to ensure that you remember to settle your tax debt before the levy is implemented. Think of the levy as a last resort.

Also, the IRS won't impose the levy right away. They'll give you advance notice - thirty days notice, to be exact. You can challenge this levy within the thirty days that you are given. This requires a lot of paperwork, which will take a lot of time, making the allotted thirty days seem even shorter. If you're the kind of person who cracks under pressure, it might be wise to get the help of a tax attorney or a licensed tax agent to sort out the details for you.

The best way to deal with a tax levy is to avoid it at all costs, especially if you're already in a tax relief program, such as the installment agreement plan. Once you miss an installment of your payment, a levy is automatically imposed. Therefore, simply don't miss any payments and keep your tax documents all organized from now on.

About the Author
Do you also want to learn about getting rid of your IRS and/or state tax problems? Visit us at our website for money saving Tax Debt Tips and Strategies. http://www.LimonWhitaker.com Over the past few years R. L. Daniel and partners have helped thousands of people with their IRS and state tax problems.