Tuesday, February 20, 2007

How To Get That Tax Refund Faster

by Gray Rollins

There are several methods which can get you your tax refund quicker. It depends on whether you keep detailed records on at least a monthly basis or not. The price of good organization is the rapid response to your tax return. It will help you, if you are a business rather than an individual, to have conscientious employees. You must first have the means to determine whether you have a refund. Some have tax attorneys, if this is your case then insure that you have the very best tax attorney who has a fantastic accountant.

They will have your books updated monthly and will probably have your tax return ready to file before January 31. They can submit your return electronically over the internet through your tax attorney. If you aren't in this category then you can take all your expense records which include sales slips, interest for school loans, medical expenses, records of loss from investments, thefts and personal checks from your bank account with your 1090's from all of your jobs to a well known tax agency. They will review your records and assist you in claiming any legal deductions. Some of these agencies will for a percentage of your return provide you a check immediately for any return funds owed you by the federal and state governments.

Another method can be the use of the EZ tax form whereby you only take the standard deduction and skip making detailed deductions. Another method is the EZ eform tax return where the tax payer goes to http://www.irs.org/ and uses tax preparation software free. There are several free contractor provided tax preparation software packages for you to use in preparation of your tax return. Each walks you through your tax return where you can choose whether to take the standard deduction or itemize them. The software is extremely reliable and should enable you to accurately complete your tax return. After they complete the process of correctly preparing their tax return online, you can sign it electronically and submit it immediately. This will start their tax return process much faster than snail mail.

However, if you should have problems there are several toll free telephone numbers you can call. They are 1-800-829-1040 for individual citizens and 1-800-829-4933 for businesses. You should remember that the IRS is very sincere about giving the very best service possible to its' customers. The Taxpayer Advocate Service was created to address just that; giving the best service to the taxpayer especially if the taxpayer is experiencing economic difficulty due to tax problems or if the IRS procedure are not addressing the individual's problem. You can contact the Taxpayer Advocate Service by dialing their toll-free phone number at 1-877-777-4778 or TTY/TDD 1-800-829-4059, by writing or calling your local taxpayer advocate, whose address and phone number can be found in your local phone directory under the government listing.

You can also find this information in the U. S. Publication 1546, The Taxpayer Advocate Service of the IRS--How to Get Help With Unresolved Tax Problems, by filing a Form 911, Application for Taxpayer Assistance Order with the Taxpayer Advocate Service or by asking an IRS employee to complete Form 911 for you. If you need to get a copy of the Form 911 or learn more about the assistance available through the Taxpayer Advocate Service, please go to http://www.irs.gov.advocate. Another resource for you is the Low Income Tax Clinic operated in your area. They provide for free or a slight fee for representation whenever there are issues with the IRS that cannot be solved through normal channels. Check online with the IRS or in the phonebook for the nearest LITC. This agency provides help for minorities for whom English is a second language.
About the Author

Gray Rollins writes for EasyTaxSupport.com, a site that provides tax tips. For more tips, like common tax mistakes and what happens when you can't pay your tax bill, visit Easy Tax Support.

How To Get That Tax Refund Faster

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Tuesday, February 13, 2007

7 points a tax attorney can help

1. Tax planning to give your business the legal form (corporation, LLC, partnership, limited partnership, professional corporation) that will best protect your assets, save you the most tax dollars, and provide limited liability.

2. Handling your incorporation, formation of LLC, partnership, business law regulatory and licensing compliance.

3. Providing sound legal advice and services for payroll tax issues, payroll, accounting, operating problems and corporate liquidation and winding-up.

4. Reviewing and drafting business contracts, including LLC operating agreements, buy-sell agreements, independent contractor agreements, confidentiality agreements and employment agreements.

5. Keeping your corporation in compliance with law by ensuring annual shareholder meetings are held and minutes properly recorded

6. Structuring compensation for key employees including employee stock option plans and addressing the estate planning needs of owners and key employees.

7. Representing your business at trial in any business lawsuit, including unfair competition, fraud, misrepresentation, contract disputes, and other business disagreements.

7 points a tax attorney can help

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Thursday, February 08, 2007

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 Plan

Establishing 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. Thisartificially 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. Payparticular attention to charges on personal credit cards.You will be surprised how quickly the numbers add up.

SUV Deduction Wounded, But Still Alive

Much 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 charitableorganizations 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 Reduction Tips

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Tuesday, February 06, 2007

What can do a tax attorney

A tax attorney is dedicated to one goal, to help ending your tax problems. His goal is to render tax help, reduce and alleviate your delinquent tax bill.

Whether you owe back taxes, having your wages garnished, or haven't filed taxes in a while, the tax attorney can probably help you. Since 1997, many tax attorneys have saved millions of dollars in IRS and State taxes, penalties, and interest for our clients. Recent changes in IRS policies have created great opportunities for delinquent taxpayers to get back into the system and end tax problems.

What can do a tax attorney

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Friday, February 02, 2007

Tax attorney advice: Misunderstanding Will Double Your Tax (II)

Even if you made your purchase 5-6 years ago, your transaction is not exempt if you do not possess a letter from the Board which affirms you have supported your claim for exemption. Do not be lulled to sleep by the fact that you have not been contacted by the Board. They know they have approximately 9 years after your transaction to legally notify you that you have been assessed tax.

The Board will find you through property tax assessments or during a routine audit of a California retailer who sells you fuel. They do not have to be in a hurry to notify you they are aware of your property. As long as they notify you before the statute runs out they can collect the tax. Imagine getting a notice seven years and eleven months after the tax return due date. You will not only be assessed tax but penalties and interest as well. This will easily double the amount you originally owed.

The Board is in control if you fail to file a tax return. The following example is intended to point out the danger: John Smith purchases an aircraft for $1,000,000.00 on March 12, 1995. The tax rate in his county is 8%. Therefore, the potential tax is $80,000.00. Mr. Smith registers his aircraft in the name of an out-of-state corporation called Smith Investing, Inc. The corporation was advised that if the aircraft was used in charter operations more than fifty percent of the time it would be exempt from tax. Because the aircraft is registered to an out-of-state address, Mr. Smith believes he has no obligation to file a tax return.

During the period of March 1995 through March 1996 the aircraft is in fact used in an exempt manner by being flown on bonafide charter flights more that 50% of the time. In June 1997 the aircraft is picked up by the county property tax personnel on a random unannounced visit to an airport. The Board runs the tail number through the FAA registration database and discovers the name of Smith Investing, Inc.

A further check of the public records reveals a link to John Smith of California. Mr. Smith is now on the radar screen of the Board auditors.

About the
AuthorThomas A. Alston is the president of Aero & Marine Tax Professionals (http://www.aeromarinetaxpros.com). He has successfully filed hundreds of tax returns with the California State Board of Equalization. Mr. Alston is California's premier specialist in legitimate tax avoidance on aircraft, vessels and vehicles, having published many articles on sales and use tax.

Tax attorney advice: Misunderstanding Will Double Your Tax (II)

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