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Income Tax Filing

Income Tax Filing

There are many things in this world that you want to avoid at all cost and one of them is a letter from the IRS. When you receive a notice from the Internal Revenue Service, it’s almost always a bad news that will put you through so much stress and sleepless nights. While this is a serious matter, you don’t need to panic as sometimes, there are only errors in your income tax filing and you only need to correct them. That is why it is very important that you take extra care in your filing to avoid any unnecessary errors and penalties.

If you manually fill out your forms and do your submission, you should write legibly and fill out all applicable information. If the IRS can’t read what is written on your income tax return chances are it will not be processed or it will be processed incorrectly, your social security number in particular. If your social security number does not match your name in their system, it will be a problem. Same goes if you have dependents, their social security numbers should also be reported accurately.

Verify that all information is correct especially the figures. If any of the figures in your tax return come out differently, there is a big possibility that you will be invited for an audit. In general, small mistakes in your return can still be fixed and is not a reason to be worried about. You may have to pay a fine especially when by the time you fixed the error and send your return back to the IRS you have already missed the deadline.

Submitting the correct information in your tax return is very important that you should make it a point to send in your return before the deadline. Even if you don’t have the money to pay for the taxes, filing should still be a priority as being late on your payment is fined considerably less compared to late submission of your return.

If there are any errors in your income tax filing, there is a possibility that you will receive a refund you were not expecting or receive a refund which is larger than what you are supposed to receive. If this is the case, you should not readily assume that the IRS knows what they are doing. To be safe, find out why and return the check as you will get in trouble later on for keeping the money that was sent in error. This is especially true if the error was made by you when you filed your income tax.…

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Getting Divorced and Reasons for Getting a Divorce

Getting Divorced and Reasons for Getting a Divorce

If you want to get divorced, you need to fulfil different conditions related to your relationship to the one who want to get divorced from. You need to have broken up with that person at least twelve months before you file the divorce case. Then, you also cannot have any minor kids. Getting married is a decision made by both partners and so is getting divorced. The divorce request you want to file has to be signed by both partners.

If two people cannot get along any longer and there is nothing left to be done in order to save a marriage, the two partners get a divorce and handle their problems differently. Some of the conditions for a divorce to be finalized after only one partner requests it are pretty much the same, meaning that you shouldn’t have any kids and you have to have broken up a year before the divorce.

As for the reasons why people get divorced, there is a wide range of them and they even get more and more interesting in time. Lots of people cheat on their partners, lots of them start drinking and then end up having psychological problems or behavioural ones. Also, one of the two may have an incurable disease and this is usually something not all people can put up with. It takes a lot of care, it takes a lot of money to take care of someone who is ill, so they choose the easy way out and that is to get divorced. Also, someone may go to jail or there maybe some ethical reasons there. There are a lot of reasons which can lead to a divorce, but you should always make sure that you have taken all the precautions before getting divorced.…

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Celebrating the Holidays Alone

Celebrating the Holidays Alone

Are you alone and wondering how you’ll be celebrating the holidays this year? Whether you’re divorced or widowed, a single parent or the spouse of someone deployed in the Armed Services, it most likely seemed easier when you had a partner to share in the planning. But now that you’ll be the one creating the holiday mood, take advantage of the freedom you have to develop customs that are just right for you.

1. Recognize that it won’t be easy. Perhaps you’re feeling more vulnerable and out of sorts after everything that has happened. Accept your complex emotions and acknowledge that it may difficult for you to enjoy the holidays as much as before. You can relieve some of your inner stress when you don’t expect too much of yourself.

2. Take the process one step at a time. Holidays are stressful and this year won’t be any different so try not to get overwhelmed. Do what you can without putting extra pressure on yourself. Set aside some time to relax and enjoy what the season means to you.

3. Look for support. Friends can throw you a lifeline as you adjust to your new status and way of life. And your extended family will help fill in the gaps created by your missing partner. The more adults there are to provide loving support to your kids, the easier it will be for them.

4. Consider your finances. You may need to budget differently this year so consider how you can reduce holiday expenses. Perhaps you and your friends can agree to forgo the usual gift giving and instead exchange homemade treats or enjoy a potluck dinner together. With the continuing tough economy, it’s likely they’re also looking for ways to cut back on costs.

5. Create new rituals. Plan to do something different for the holidays this year. There’s really not one perfect way to celebrate so change your usual routine and enjoy the excitement of new experiences. Perhaps arrange to get away from home – visit a friend, volunteer in your community, go for a hike, travel nearby.

6. Include others who are alone. You’re not the only one whose celebration may be bittersweet this year. Share your holiday by Inviting a single friend or relative into your home or serving meals at a soup kitchen. When you’re making your own holiday preparations, set aside some time for those outside your circle. You can donate toys and books to needy children, cookies to a homeless shelter, music to a nursing home.

Holidays may remind you of the joys and sorrows of past gatherings but try to stay focused in the present. Let go of your expectations and instead create celebrations that are meaningful to you now. You’ll find your experience of these special days can create new memories to savor throughout the year.

A� 2011, Her Mentor Center…

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Hiring the Best Tax Attorney

Hiring the Best Tax Attorney

There are many benefits to hiring a tax attorney. Some small business owners forego hiring one until they are faced with an IRS audit. Most of the time, it’s already too late and the damage has already been done. The best tax attorney could not only save you in times of an IRS audit but can also prevent it from happening. They are experts and have advanced trainings and knowledge on tax laws. Businesses that retain the services of a tax attorney can minimize taxation while complying with the law in various complex financial situations.

Why hire a tax attorney

The most common reason why people hire one is when they have tax problems involving back taxes, tax returns that are delinquent or not properly reported, payroll taxes, and other tax and audit issues. How do you choose the best tax attorney?

Choosing the best tax attorney

The first consideration that you need to make is whether to get a tax attorney who specializes in a particular tax law or get the services from a law firm. If you want a more personalized service, hiring a small firm could work to your advantage. However, if you have a more complex tax issue hiring the best tax attorney from a big law firm has its advantages. Because they have more lawyers, paralegals and staff working for their firm, they can pool their expertise and resources to better manage your case. Most of the time this will give you leverage in your case.

Experience

When you are in need of the best tax attorney, it is not the best time to just go with any lawyer you find in the yellow pages or the internet. First you have to know the lawyer’s or firm’s experience in handling tax issues and what their success rates are. The longer and more experience they have in dealing with the IRS, the better your chances are for a speedy and favorable resolution. The best tax attorneys know the loopholes and the ins and outs of the industry so they are able to strategize an effective action plan for your case.

Fees

Attorney fees are always expensive. You want to know how much your lawyer is going to bill you and if there are any other fees that are on top of the attorney fees. You also have to be wary of lawyers or firms that would ask you to pay all the fees upfront. Although this does not apply to all, most of these firms and lawyers will not be willing to go above and beyond their duties to resolve your tax problem as they already have your payment. Respectively, good faith money is fine as this also serves as an assurance on the lawyer’s part that you will not run away after your case is solved.

Finding the best tax attorney for your tax issue could save you from a great deal of stress of having to deal with the IRS so choose wisely and always consider the value for your money.…

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Advantages and Disadvantages of Uncontested Divorce

It is now becoming common for couples to divorce amicably when they decide that they are no longer attracted to each other and want to move on. Filing for an uncontested divorce is the best option for couples who opt to divorce amicably. It means that the couples have decided to agree on most of the major issues in the divorce which eliminate the need to appear in the court fight. Uncontested divorce has its advantages and disadvantages.

Advantages of Uncontested Divorce

The main advantage of uncontested divorce is that you can file the case yourself and save money on hiring a lawyer. You and your spouse can work together to compose the settlement agreement which outlines every major issue that has been discussed. It is recommended that you hire a lawyer to review the settlement agreement in case you make mistakes. A lawyer will be able to make sure that your settlement agreement complies with the standards of the law.

In an uncontested divorce, there is a low level of conflict between the two spouses. Everything can be kept that way as stated in the settlement. The other spouse will be committed to fulfilling everything stated in the settlement such as paying child support and alimony on time. There will be a low chance of appealing to make changes. It ensures that each spouse can get on with their lives with little problems.

Disadvantages of Uncontested Divorce

Filing for an uncontested divorce can ruin you if you are doing to keep quiet on some troubles you are facing from your spouse. For example, your spouse is violent and beating you. He is forcing you to agree to an uncontested divorce so that he can gain an unfair advantage over you. When facing this situation, you should quickly contact divorce attorneys in Franklin. The attorney can help you to obtain an emergency protective order so that you can quickly leave the residence with the children. The lawyer can assist you in developing a longer plan for custody for the divorce proceeding.

Filing for an uncontested divorce is also a wrong decision if you and your spouse don’t understand the family laws. The forms for an uncontested divorce are deep for couples who don’t understand the legal terms. It is recommended to seek the assistance of an experienced family law attorney if you and your spouse don’t have confidence in completing the paperwork.

How Does Uncontested Divorce Works?

An uncontested divorce can be filed on your own or you can file it with the help of a family law attorney. Only one of the spouses need to hire the lawyer for an uncontested divorce. The documents that need to be submitted are the same. They are the petitions, settlement agreement, and financial affidavits. Both spouses need to sign several documents before filing them. In some jurisdiction, the couples are required to go through counselling before the divorce can be finalized. The divorce judgment can be sent to the couples in the mailbox or the couples are required to attend a hearing in the court.

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Contacted by the IRS and Confused – A Basic Primer on Audits, Tax Appeals, and Collections

Contacted by the IRS and Confused – A Basic Primer on Audits, Tax Appeals, and Collections

Taxpayers often receive audit notices from the IRS and it can be confusing to know what all these letters mean. With that said, below is a general overview of an audit of a taxpayer’s tax return, the options available to the taxpayer, and a discussion of IRS collection procedures for overdue taxes.

Tax Examinations

The IRS generally has three years from the date a return is filed or due, whichever is later, to audit a return. The IRS may audit your return based on computer scoring or information received from third-party documentation, such as Forms 1099 and W-2, that does not match the information reported on your return. Your return may also be selected for examination as a result of information received from other sources on potential noncompliance with the tax laws or inaccurate filing.

If your return is audited, the examination may be handled entirely by mail or may also include meetings with an IRS revenue officer in your home, place of business, an Internal Revenue office, or the office of your attorney, accountant, or enrolled agent.

During the examination you may act on your behalf but it is advisable to seek the services of a tax attorney to represent you. Accordingly, your representative must submit a Form 2848, “Power of Attorney and Declaration of Representation,” permitting him or her to act on your behalf before the IRS.

An examination of your return usually begins when you are notified that your return has been selected. The IRS will inform you of the records you will need and will explain any proposed changes made to your return.

If you agree with the proposed changes, you can sign an agreement form, pay any additional tax you may owe, and any interest accrued on any additional tax.

Appeal Rights

If you disagree with any proposed changes you can appeal the case for review by the revenue officer’s supervisor. Assuming an agreement is not reached between you and the IRS at this point, you will receive a 30-day letter within a few weeks after your closing conference with the examiner and/or supervisor. The 30-day letter provides you with 30 days from the date of the letter to appeal the IRS tax decision to a local office of appeals, which is separate from and independent of the IRS office taking the action you disagree with. The office of appeals is the only level of appeals within the IRS, and conferences with this office are held informally by correspondence, telephone, or at a personal conference.

If you do not respond to the 30-day letter or if you do respond and still do not reach an agreement with an Appeals Officer, the IRS will send you a 90-day letter, which is also known as a notice of deficiency. The taxpayer has 90 days (or 150 days if the notice of deficiency is addressed to a taxpayer outside the United States) to file a petition with the United States Tax Court. A petition must be filed with the Tax Court for the case to be heard. However, a case petitioned to the Tax Court will normally be considered for settlement beforehand by an IRS Office of Appeals.

If the taxpayer does not respond to the 90-day letter or responds but does not settle the case with IRS appeals and does not prevail in Tax Court, the tax will be assessed. This means that the case will enter the collection stage. (See the section hereafter on collections for further discussion.)

Tax Court and Refund Jurisdictions

There are three courts available to taxpayers – the Tax Court, the United States District Court, and the United States Court of Federal Claims. A taxpayer may petition the Tax Court to hear his or her case without having paid any tax liability. The District Court and the Court of Federal Claims, known as refund jurisdictions, differ from Tax Court in that these refund jurisdictions only hear cases from taxpayers who have paid all of their tax liability. If a taxpayer prevails, then the tax liability is refunded.

Generally, a claim for refund in the District Court or the Court of Federal Claims must be filed within 3 years from the date the taxpayer filed his original return or 2 years from the date the taxpayer paid the tax, whichever is later. If a claim for refund is not filed within this period, a taxpayer may no longer be entitled to a credit or a refund.

IRS Collections

Once a taxpayer is in the collections stage, the IRS expects payment for the amount due. If the taxpayer does fully pay the outstanding tax liability, interest and penalties will continue to accrue until the full amount is paid.…

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IRS Audits 6,000 Businesses For Unpaid Employer Taxes – Is Your Company the Next IRS Target?

IRS Audits 6,000 Businesses For Unpaid Employer Taxes – Is Your Company the Next IRS Target?

According to the recent article on “IRS to Expand Audits as Cash Runs Low” by Joe Mont, it appears the IRS is doing anything and everything they can to make up for the “estimated $14 billion that companies underpay in employer taxes a year.” The IRS plans to execute a three-year campaign that will crackdown on 6,000 businesses. No one is safe from IRS audits as Uncle Sam zeros in on randomly selected companies and individuals in order to take back what he’s owed.

Mont discusses the biggest challenge the IRS will face while undergoing thousands of audits: “defining who is, or isn’t, an employee.” They realize that many companies will misclassify employees in order to bypass protections. The agency plans to scrutinize both big and small companies to guarantee they’re catching as many misclassified employees as possible with these “worker misclassification audits”.

In a 1984 IRS assessment of misclassification the agency found that “15% of employers misclassified 3.4 million workers.” They’ve already stated their plans to put IRS bank levies on large financial firms that receive bailouts, now they’re going to zero in on individual taxpayers. The IRS is prepared to do whatever it takes to collect every penny missing from the government bank account.

Taxpayers need to be aware of the dangers of undergoing IRS audits without the help of a professional tax attorney or Certified Tax Resolution Specialist. Going to an IRS audit on your own without proper representation could lead to major IRS problems. I can’t even stress how important it is to have professional tax help that will allow you to negotiate a tax relief settlement and guide you through the process.

If you or someone you know is undergoing auditing, we recommend consulting an experienced tax attorney or Certified Tax Resolutions Specialist immediately. For more valuable information about protecting yourself from the scrutiny of the IRS check out our IRS Audit Articles.

Tax Resolution Services is highly skilled at audit representation. Collectively, we have over 100 years of experience in IRS Tax Audits. One of our experienced tax resolution experts can help you reduce back taxes penalties and interest, and avoid possible criminal prosecution. In most cases, you will not have to meet with an IRS auditor. Visit our website to get a free Tax Relief Consultation or call 866-IRS-Problems.…