Saturday, December 30, 2006

Tax Demand? A Tax Attorney Could Reduce It

By: Pearl Deloria

Do you dread seeing those brown envelopes with the IRS or Inland Renenue address on them? Do you put them on one side until you have summoned the courage to read their latest demand for money? Does the thought of filing your tax return stress you out unbearably? Tax laws in most countries are exceedingly complex and open to interpretation by the courts. Every taxpayer wants to legally reduce the taxes he or she pays to the minimum. Even in these days of more easily understood forms there is still lots of scope for interpretation of tax laws.

Government tax raising departments like the IRS employ highly paid attorneys to persuade the courts in favor of the government's interpretation of tax laws. The more persuasive an attorney has proved to be the more they can charge. The IRS attorneys are paid from the bottomless pocket of the taxpayer, so they only employ the best and most persuasive people. The individual or company taxpayer has only one option – to employ a tax attorney themselves.

Your attorney will mediate between you and the IRS and help you to reach a negotiated settlement. Where disputed amounts are large, it is usual for the taxpayer to reach a negotiated settlement for a much smaller amount than the original claim. This is why people employ tax attorneys. If the case goes to court then you will be represented and have the best advice available, a much better position to be in than facing the might of government alone.

There are so many complexities to every tax system because of the cumulative effect of thousands of pressure groups over the past 200 years. Each group manages to persuade the government of the day that they will get more votes if they accede to the group's demands. The government acquiesces and another complexity is added to the tax regime. Many of these pressure groups' demands could be reversed, but that would require immense political courage, which is not present in most democratically elected politicians.

About the Author: Pearl Deloria has an SME management background. Find more articles here. Visit these sites for more info tax attorney and taxes.

Tax Demand? A Tax Attorney Could Reduce It

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Thursday, December 28, 2006

Tax Attorney Help: Tax Reduction Tips

By: Richard Chapo

In the rush to get tax returns prepared and filed by April15th, many overpay their taxes. Following are a few taxreduction tips that could help you save a bundle.Tax Credit For Starting A Small Business Pension PlanEstablishing a pension plan can help you retain importantemployees. What many business owners don’t realize is a taxcredit can be claimed if the business has 100 or feweremployees. Meet this requirement and you can take a taxcredit of up to $500 in each of the first three years of theplan.

Tax credits are extremely valuable because they arededucted directly from the taxes you owe, not grossrevenues.The credit is 50% of certain start up costs you incur ineach of the first three years. The costs include theexpenses incurred in establishing and maintaining the plan.

They also include the cost of any educational retirementplanning programs you provide for employees.For example, first assume that you spent $1,500 starting apension plan for your employees in 2004. Next assume thatyou will spend $1,200 in both 2005 and 2006 for maintainingthe program and educating your employees. In this scenario,you would be eligible to claim a tax credit of $500 in 2004,2005 and 2006.

Personal Loans To Business
Many business owners lose track of loans they make to theirbusiness. As a result, they incorrectly classify theproceeds of the loan as part of their gross revenues. This artificially raises the gross revenues of the business andadds to the tax liability. Closely review your records for2004 to make sure you are not making this mistake. Pay particular attention to charges on personal credit cards.

You will be surprised how quickly the numbers add up.SUV Deduction Wounded, But Still AliveMuch has been made about the “SUV Tax Deduction” thatallowed purchasers of SUVs over 6,000 pounds to immediatelydeduct up to $100,000 of the cost. Many mistakenly believethat the American Jobs Creation Act of 2004 eliminated thisdeduction. It did not. Instead, it reduced the deduction to$25,000 with the remaining amount allocated to depreciation.

This is still a significant immediate deduction. If youpurchased a non-SUV truck that weighed over 6,000 pounds in2004, you are not restricted to a “mere” $25,000 deduction.

Tsunami Relief Contributions Paid in 2005
Millions of Americans contributed to charitable organizations providing relief to Tsunami victims.Typically, charitable contributions are deducted in the yearthey are made. New legislation, however, allows you todeduct Tsunami contributions you made in January 2005 onyour 2004 tax returns. Alternatively, you can wait anddeduct the donation on 2005 returns. Unfortunately, youcannot deduct the contribution on both!

Sales Tax Deduction
If you itemize deductions, you have a choice of deductingyour state and local income taxes OR your state and localsales tax. This option is available for the 2004 and 2005tax years. If you live in a state that does not collectincome tax, the optional sales tax deduction should beclaimed for significant tax savings. See IRS Publication 600for more information.

Deduction for Discrimination Lawsuit Costs
If you were required to pay attorney’s fees and court costsassociated with a discrimination lawsuit, you may be able toclaim a tax deduction. The deduction is available only forcosts and fees incurred after October 22, 2004 in relationto a judgment and settlement. The deduction is not limitedby the alternative minimum tax. Realistically, thisdeduction will be more viable for the 2005 tax year, but afew taxpayers may be eligible this year.

There are numerous deductions and credits available if youtake the time to look for them. Taxes can be confusing, butthe savings justify the time and effort of finding allavailable deductions and credits.
About the Author:Richard Chapo is CEO of http://www.businesstaxrecovery.com - Obtaining tax refunds for small businesses by finding overlooked tax deductions and credits through a free tax return review.

Tax Attorney Help: Tax Reduction Tips

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Tuesday, December 26, 2006

Why Do I Need A Tax Attorney?

By: Heather Colman

It is unfortunate but true, that many people do not even consider consulting a tax attorney until they open their mailboxes one day and there is that dreaded letter from the IRS. A tax attorney is a lawyer that specializes in all areas of taxes.

The tax attorney is required to attend law school for one to three more years, after regular law school, to receive their Masters in taxation. The IRS has its own group of experienced tax attorneys, so if there is ever a time when you need to face the IRS for any reason, it is imperative that you have your own tax attorney with you.

A tax attorney has all the tools and means necessary to handle any tax matters that come up during any tax disputes or issues. If you have been contacted by the IRS and are looking to retain the services of a tax attorney, there are certain things to keep in mind when looking for the right one.

First, you need to choose a tax attorney that has extensive knowledge and experience in all areas of taxation. This means your chosen tax attorney should be up to date on all tax regulations, laws, recent and past tax court cases, recent and past tax rulings, appeal procedures, audit procedures, tax litigation and collection.

You should also look for business knowledge when considering a tax attorney. Your tax attorney should have a good deal of knowledge when it comes to business accounting. He or she should have the experience and training in financial areas in order to understand your case fully.

Your tax attorney should also have a working knowledge of many other legal areas, such as bankruptcy, agency law and contract law. Your tax attorney should have a good deal of legal knowledge in order to recognize any issues that could be deemed criminal in nature.

Finally, you need a tax attorney that has skills in negotiation and litigation as well. If you need to take on the IRS, you will need a tax attorney that can negotiate settlements and be at your side if you do need to go to Tax Court, if the IRS accuses you of a of tax crime. Dealing with the IRS can be a long, hard and demeaning process. It is imperative that you have a reputable, knowledgeable tax attorney at your side during the ordeal. Y

our tax attorney will have full working knowledge about all aspects of the tax laws and what the IRS legally can and cannot do during the process. He or she can advise you on your rights if the IRS happens to break the law during any part of your dealings with that agency.

Disclaimer: The information presented here should not be interpreted as legal or tax advice. If you need legal or tax advice, please seek professional advice from a qualified tax attorney for your best options.

About the Author: Copyright © 2006, Heather Colman. Find more resources about a tax attorney at tax-attorney-support.info or ebookpalace.com.

Why Do I Need A Tax Attorney?

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Friday, December 22, 2006

Finding The Best Tax Lawyer

By: Tawee Subsomboon

If you are looking for a tax lawyer you need to know how to find the best one possible. There are literally hundreds of sites alleging to have the best tax lawyer available and it may seem that they are all pretty much the same. However, as with all types of lawyers, there are good tax lawyers as well as bad ones and it is important to find the right one for you.

There are a number of questions that you need to ask any tax lawyer before you decide which company to hire. Obviously, experience is a key factor in narrowing down your list of potential candidates to a reasonably small number. If the tax lawyer you are considering has no recent experience with court cases then you should avoid using their services.

This is because the tax laws are constantly changing and it is vital that your chosen tax lawyer is completely up to date with current legislation. The track record of any tax lawyer is also important. If you ask any tax lawyer how many cases they have won, and lost, this will give you an idea of how effective they are at pleading your case. However, your individual circumstances should be taken into account and you need to ask the lawyer if they have had specific experience with a similar case and what the outcome was.

The best tax lawyer is one that specialises in more difficult cases and is more likely to be able to help you in whatever situation you find yourself. The methods used by a lawyer in preparing your case should also be a consideration. Usually, a tax lawyer will be extremely thorough in investigating the circumstances surrounding your case and you should look for the most comprehensive service possible. A thorough tax lawyer will look into all of your financial records and gather evidence, of course, but will also look into any other mitigating circumstances to help with your plea.

Of course, any tax lawyer would like to claim that they can have any case against you dismissed but the reality is that this is often unlikely. You should discuss with the lawyers on your shortlist what penalties they anticipate you being given and how they plan to negotiate for lower ones. Obviously, you want to have a tax lawyer who can obtain the most lenient fines possible, even if the case against you is very clear.

Finally and probably most importantly, is the rapport that you feel when you are talking to the individual tax lawyer. It is essential that you are able to discuss everything freely and openly with whichever tax lawyer you finally decide to hire. If you do not feel comfortable talking with a particular lawyer then simply cross them off your list and move on to the next one.

About the Author: Find more information and tips about tax lawyer by visiting http://www.tax-lawyer-center.com

Finding The Best Tax Lawyer

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Tuesday, December 19, 2006

Tax Lawyers: Why You Should Hire One And How To Do It

By: Gray Rollins

The services of lawyers are obtained daily throughout the United States. There are a wide variety of different lawyers including divorce lawyers, criminal lawyers, real estate lawyers, and even tax lawyers.

Tax lawyers can be hired all year round; however, their services are most commonly obtained around or slightly after tax time. When April 15th rolls around there are a number of Americans who are struggling to get their taxes completed and filed on time. In all of the rush it is possible that a number of major or minor mistakes can be made.

When the Internal Revenue Service (IRS) receives a tax return they are likely to notice and change any minor mistakes. Larger mistakes may signal a red flag to the Internal Revenue Service (IRS). This red flag often leads to an Internal Revenue Service (IRS) audit. The audit process may be stressful even if a taxpayer did not knowing deceive the Internal Revenue Service (IRS).

An audit is most commonly ordered by the Internal Revenue Service (IRS) when they notice an error or a piece of important information that does not sound correct. Many Internal Revenue Service (IRS) audits reveal that a taxpayer simply made a mistake, but others may reveal a scam to get more money from the government.

Whatever the reason for an audit there are a number of taxpayers who obtain the services of a tax lawyer. Tax lawyers can be brought into the audit proceedings before an Internal Revenue Service (IRS) audit even begins or they can be hired in the middle of proceedings. There are many taxpayers who initially try handling an audit on their own; however, they often become overwhelmed or concerned with the way that the audit is going.

This is when the majority of tax lawyers are hired. http://www.taxhelpdirectory.com/audit/incometaxaudit/ Finding a selection of tax lawyers in the local area is a fairly easy process, but deciding which lawyer to hire may not be as easy. There are a number of lawyers who handle different case types and then there are other lawyers who solely act as tax lawyers.

Most taxpayers prefer working with a tax lawyer who specializes in taxes because they tend to be ex-employees of the Internal Revenue Service (IRS) or they have other tax preparation training and experience. The best way to find local tax lawyers is by searching the local phone book. The majority of phone books will not separate traditional criminal lawyers from tax lawyers; therefore, a taxpayer may have to call the offices of each lawyer in the phone book for further information. It is best that taxpayers compile a list of multiple tax lawyers.

Due to different levels of experience and different fees taxpayers are encouraged to compare the experience and fees of each tax lawyer before making a final decision. The majority of reputable tax lawyers offer free consultations to the general public. If a free consultation is being offered taxpayers are urged to take advantage of this service.

Taxpayers should use the consultation to explain their current situation with the Internal Revenue Service (IRS). It is also important that taxpayers determine how the tax lawyer feels that they can help, how much time they can devote to the case, and exactly how much the service will cost. Knowing all of this information will allow a taxpayer to make an informed decision when hiring the services of a tax lawyer. It is important to remember that hiring a tax lawyer does not automatically guarantee a win.

The job of a tax lawyer is to help make sure that their client’s financing is accurate and in line with the standards of the Internal Revenue Service (IRS). Tax lawyers will try with all of their might to argue the case of their client; however, they will not knowing break the law to do so. Individuals who knowingly deceived the Internal Revenue Service (IRS) will not make the problem just go away by hiring the services of a tax lawyer; however, that does not mean that one should not be hired.

To determine the advantages and disadvantages of hiring a tax attorney individuals are encouraged to pick up their local phone book and schedule a free consultation appointment today.

About the Author: Gray Rollins is a featured writer for the TaxHelpDirectory.com. To learn more about tax lawyers and tax attorneys, please visit our site.

Tax Lawyers: Why You Should Hire One And How To Do It

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Saturday, December 16, 2006

How A Tax Attorney Can Help Save Your Hard Earned Income

by Brooke Hayles

Some people seem to be much better with money than are others. Have you ever wondered why this might be the case?

Some people have far better spending habits than others and that is one reason. Still others will say that it's purely a matter of having the right tax attorney in your corner. While hiding your income from the government is illegal, it's not illegal to take advantage of certain tax breaks. Employing a professional and knowledgeable tax attorney will help you to do this.

An attorney is a person who is granted the authority to act in place of another. With respect to a tax attorney, they act for you in communicating your income details to the government. This saves you from having to do it yourself. Competent tax attorneys have been trained to have an expert knowledge of the tax laws in your city, state or country.

How It Works

Doing your tax this way is fairly simple. To begin with, find yourself a reputable attorney. Try the yellow pages or alternatively ask a friend or relative about what attorney they use and why. Sometimes personal recommendation is worth a thousand adverts. At least you have some idea that the person knows their job.

Like everyone else, some tax attorneys are better at their jobs than others. For every small business professional losing thousands each year because his tax attorney doesn't clearly explain why certain parts of the income get labeled one way and others get labeled a different way. There are two or three more who swear that they couldn't do without their tax attorney
You would think that taxes would be simple or at least relatively easy to understand. But if you're involved in preparing the taxes would be for an entire corporation - then the importance of hiring a professional who can clearly explain what is going on becomes more relevant.

Difficult Choices, Sound Decisions

Corporation tax is unbelievably complex in addition to preparing company accounts related to income and expenses, there are the problems associated with employment taxes, which gets more complicated when staff numbers are larger. In a retail chain, for instance, income will come in from thousands of people, sometimes spread across the entire world, thanks to the Internet.

Expenses are the same. Shipping companies, cleaning companies, supplies, employees and benefits plans! The amount and complexity of this information makes it vital for any mid-sized to large organization to secure the services of a good, professional tax attorney.

How do you find a reputable tax attorney who will work in your company's interests. Most of what you're looking for is subjective. First of all you need an attorney who can communicate clearly. If they can't answer your questions in a meaningful way then you need to move on.
The next thing you need is the knowledge that your tax attorney of choice is honest and has integrity - they should be knowledgeable in tax and company law. The best tax attorneys are fully conversant with every aspect of their work.

It would be an added bonus if you find someone who knows how to creatively apply that knowledge. All tax situations you'll face are unique in some way, just being aware of the legal implications is often not enough. Your tax attorney should be able to apply their knowledge of the law to fit your situation giving you and your organization the most benefit possible.

If you have chosen the wrong person for this role it will soon become apparent. Meetings will be few and far between and you will not have been given a clear picture of what has just happened and what is going to happen in future. Even if you don't understand much of what is being said and you will very likely "know" or have the feeling that something isn't right.

The important thing is to watch for those feelings early and to act immediately. Don't get locked in feeling as though you MUST stick with whom you've chosen. Do your homework, follow your instincts and in all probability you will have a tax attorney who will save you as much money as is legally possible.

Summary:

A tax attorney can handle all of your tax needs. For corporations that have more complex tax situations it's imperative to secure the services of a professional. Choose someone who speaks clearly and who you believe is knowledgeable and honest. You just might end up saving more than you thought this year!

About the AuthorBrooke HaylesCheck Out More Helpful Information About Tax Attorney For FREE! Visit {a href= http://attorneytaxonline.com/} Tax Attorney Online Now!

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How A Tax Attorney Can Help Save Your Hard Earned Income

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Friday, December 15, 2006

Tax Records - What You Should Keep And For How Long

By: Richard Chapo

Many taxpayers are confused about how long they should keeptax records. The term "tax records" refers to your taxreturns and the documents that support the information inthe returns. These documents can include receipts, bankstatements, 1099s, etc. If you are one of the unlucky few tobe audited, these records will be vital to fending off theIRS.

Tax Returns

To protect yourself from a nasty audit, you should keep allof your tax returns indefinitely. The IRS has been known tolose or misplace tax returns. While conspiracy advocatesargue that this is evidence of a nefarious scheme, thesimple fact is that the IRS receives millions of returnsover a three-month period and lost returns are inevitable.So how do you protect yourself? You keep copies of everysingle tax return.

A quick word on the IRS e-file program. If you file yourreturns electronically, make sure you get copies from thecompany that filed your return. All such entities arerequired by law to provide you with paper copies.

Records Supporting Tax Returns

You should keep supporting tax records for a period of sixyears from the date the returns were actually filed. Ingeneral the IRS only has three years to audit you from thefiling date. For example, if you filed your 2000 tax returnon April 15, 2001, the IRS would have to start an audit byApril 15, 2004. Keep in mind that if you filed an extension,the IRS will have three years from the date you submittedthe return. As is always case with taxes, there areexceptions to this general time period.

If your tax return looks like the great American novel, therunning of the three-year audit period may not save you.Failure to report more than 25% of your gross income givesthe IRS an additional three years to pursue you. Using theprevious example, the IRS would have until April 15, 2007 toaudit your 2000 tax return.

Property Records - Get A Filing Cabinet

You may need to get a filing cabinet if you hold propertyfor an extended period of time. For example, assume that youpurchased a home in 1980 for $100,000 and made $50,000 inimprovements over the years. You need to keep the purchaserecords, mortgage statements and receipts that relate to theimprovements. When you sell the home, you will need therecords to determine the tax consequences of the sale, towit, your basis (original cost plus improvements) andprofit. If the IRS decides to take a closer look at thereported profit, you will need to provide your tax recordsto support your claims. Once you actually sell the property,it is recommended that you keep all of the tax records foran additional six years.

Divorce

Make sure you keep copies of all of your financialdocuments, tax returns and supporting documents if you getdivorced. You should also keep copies of all divorceagreements and court orders that cover property andfinancial issues. When couples divorce, the tax and creditconsequences can be nightmarish. If you don’t keep records,you will have to ask your ex-spouse for them. Get therecords now to avoid doubling your misery!

Hopefully, you will never need to show your tax records tothe IRS. If you are one of the unlucky few that is audited,your tax records should keep your feet out of the fire.

About the Author:
Richard Chapo is CEO of http://www.businesstaxrecovery.com - Obtaining tax refunds for businesses by finding overlooked tax deductions and credits through a free tax return review.

Tax Records - What You Should Keep And For How Long

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