What you should and may already know...

2008 Economic Stimulus Act Provides Tax Benefits to Businesses

noreply@blogger.com (Ecuskully02) — Fri, 22 Feb 2008 08:59:00 +0000

IR-2008-22, Feb. 21, 2008
WASHINGTON — In addition to providing stimulus payments to individuals, the Economic Stimulus Act of 2008 provides incentives to businesses. These incentives include a special 50-percent depreciation allowance for 2008 purchases and an increase in the small business expensing limitation for tax years beginning in 2008.
50-Percent Special Depreciation Allowance
Depreciation is an income tax deduction that allows a taxpayer to recover the cost or other basis of certain property over several years. It is an annual allowance for the wear and tear, deterioration or obsolescence of the property.
Under the new law, a taxpayer is entitled to depreciate 50 percent of the adjusted basis of certain qualified property during the year that the property is placed in service. This is similar to the special depreciation allowance was previously available for certain property placed in service generally before Jan. 1, 2005, often referred to as “bonus depreciation.” To qualify for the 50 percent special depreciation allowance under the new law, the property must be placed in service after Dec. 31, 2007, but generally before Jan. 1, 2009.
To reflect the new 50-percent special depreciation allowance, the IRS is developing a new version of the depreciation and amortization form for fiscal year filers. The new form will be designated as the 2007 Form 4562-FY.
Section 179 Expensing
In general, a qualifying taxpayer can elect to treat the cost of certain property as an expense and deduct it in the year the property is placed in service instead of depreciating it over several years. This property is frequently referred to as section 179 property, after the relevant section in the Internal Revenue Code.
Under the new law, a qualifying business can expense up to $250,000 of section 179 property purchased by the taxpayer in a tax year beginning in 2008. Absent this legislation, the 2008 expensing limit for section 179 property would have been $128,000. The $250,000 amount provided under the new law is reduced if the cost of all section 179 property placed in service by the taxpayer during the tax year exceeds $800,000.
The new law does not alter the section 179 limitation imposed on sport utility vehicles, which have an expense limit of $25,000.

IRS Will Send Stimulus Payments Automatically Starting in May; Eligible Taxpayers Must File a 2007 Tax Return to Receive Rebate

noreply@blogger.com (Ecuskully02) — Sat, 16 Feb 2008 06:05:00 +0000

IRS Will Send Stimulus Payments Automatically Starting in May; Eligible Taxpayers Must File a 2007 Tax Return to Receive Rebate

The Internal Revenue Service today advised taxpayers that in most cases they will not have to do anything extra this year to get the economic stimulus payments beginning in May.
“If you are eligible for a payment, all you have to do is file a 2007 tax return and the IRS will do the rest,” said Acting IRS Commissioner Linda Stiff.
The IRS will use information on the 2007 tax return filed by the taxpayer to determine eligibility and calculate the amount of the stimulus payments.
The IRS will begin sending taxpayers their payments in early May after the current tax season concludes. Payments to more than 130 million taxpayers will continue over several weeks during the spring and summer. A payment schedule for taxpayers will be announced in the near future.
Stimulus payments will be direct deposited for taxpayers selecting that option when filing their 2007 tax returns. Taxpayers who have already filed with direct deposit won't need to do anything else to receive the stimulus payment. For taxpayers who haven't filed their 2007 returns yet, the IRS reminds them that direct deposit is the fastest way to get both regular refunds and stimulus payments.
Most taxpayers just need to file a 2007 tax return as usual. No other action, extra form or call is necessary. This Web site will be the best information source for all updates and taxpayer questions.
In most cases, the payment will equal the amount of tax liability on the tax return, with a maximum amount of $600 for individuals ($1,200 for taxpayers who file a joint return).
The law also allows for payments for select taxpayers who have no tax liability, such as low-income workers or those who receive Social Security benefits or veterans’ disability compensation, pension or survivors’ benefits received from the Department of Veterans Affairs in 2007. These taxpayers will be eligible to receive a payment of $300 ($600 on a joint return) if they had at least $3,000 of qualifying income.
Qualifying income includes Social Security benefits, certain Railroad Retirement benefits, certain veterans’ benefits and earned income, such as income from wages, salaries, tips and self-employment. While these people may not be normally required to file a tax return because they do not meet the filing requirement, the IRS emphasizes they must file a 2007 return in order to receive a payment.
Recipients of Social Security, certain Railroad Retirement and certain veterans’ benefits should report their 2007 benefits on Line 14a of Form 1040A or Line 20a of Form 1040. Taxpayers who already have filed but failed to report these benefits can file an amended return by using Form 1040X. The IRS is working with the Social Security Administration and Department of Veterans Affairs to ensure that recipients are aware of this issue.
“Some people receiving Social Security and veterans’ benefits may not realize they will need to file a tax return to get the stimulus payment,” Stiff said. “To reach these people, the IRS and Treasury will work closely with the Department of Veterans Affairs, the Social Security Administration and key beneficiary groups on outreach efforts.”
Eligible taxpayers who qualify for a payment will receive an additional $300 for each child who qualifies for the child tax credit.
Payments to higher income taxpayers will be reduced by 5 percent of the amount of adjusted gross income above $75,000 for individuals and $150,000 for those filing jointly.
Taxpayers must have valid Social Security Numbers to qualify for the stimulus payment. If married filing jointly, both taxpayers must have a valid Social Security Number. And, children must have valid Social Security Numbers to be eligible as qualifying children.
Taxpayers who file their tax returns using an Individual Taxpayer Identification Number issued by the IRS or any number issued by the IRS are ineligible. Also ineligible are individuals who can be claimed as dependents on someone else’s return, or taxpayers who file Form 1040-NR, 1040-PR or 1040-SS.
To accommodate taxpayers who file tax returns later in the year, the IRS will continue sending payments until December 31, 2008. The IRS also cautions taxpayers that if they file their 2007 tax return and then move their residence that they should file a change of address card with the U.S. Postal Service.
The IRS will mail two informational notices to taxpayers advising them of the stimulus payments. However, taxpayers should be alert for tax rebate scams such as telephone calls or e-mails claiming to be from the IRS and asking for sensitive financial information. The IRS will not call or e-mail taxpayers about these payments nor will it ask for financial information. Scam e-mails and information about scam calls should be forwarded to phishing@irs.gov.

Related Items:
FS-2008-15, Facts about the 2008 Stimulus Payments
FS-2008-16, Stimulus Payments: Instructions for Low-Income Workers and Recipients of Social Security and Certain Veterans’ Benefits
Tax forms and instructions

IRS Offers New Online Help Tools for 2008 Tax Filers

noreply@blogger.com (Ecuskully02) — Wed, 13 Feb 2008 05:14:00 +0000

Listen In: Audio Interview on New IRS.gov Tools
WASHINGTON — Things have gotten easier for taxpayers who need help preparing their federal returns this year. The IRS has enhanced both Publication 17 and Where’s My Refund?, two key electronic tools available on this Web site, IRS.gov, the official Web site of the IRS. These improvements will help any taxpayer with Internet access find answers to tax questions quickly, prepare returns accurately and file on time.
Publication 17, Your Federal Income Tax –– The online version of Publication 17 now contains electronic links allowing users to more quickly navigate this widely used publication. Both the downloadable PDF and the html version of the 2007 Publication 17 contain more than 800 hyperlinks. The links allow users to jump immediately to other parts of the publication, reducing the time it takes to access information. In accordance with the Americans with Disabilities Act, the html version of Publication 17 on IRS.gov is accessible to visually impaired taxpayers.
Where’s My Refund? — The online refund-tracking tool Where’s My Refund? is now available in Spanish as well as English. Taxpayers can access the Spanish version through either the Where’s My Refund? page on IRS.gov or the Spanish-language portal. The goal of this new feature is to make tax information available to taxpayers who don’t speak English or those who know English as a second language. Taxpayers without Internet access can get the same information about their refunds by calling the IRS Refund Hotline at 1-800-829-1954.
Official IRS Web Site Is IRS.gov
Taxpayers looking for the IRS online should type www.irs.gov into their Web browsers. Taxpayers should also beware of Web sites that may resemble IRS.gov but end in .com, .net, .org, .biz or any other domain name extension. For the genuine IRS Web site, it’s IRS.gov.

Tax Returns from Seven States Go to Different Centers

noreply@blogger.com (Ecuskully02) — Wed, 13 Feb 2008 05:13:00 +0000

WASHINGTON — As some taxpayers begin to prepare their paper tax returns, the Internal Revenue Service notes that some may be sending their returns to a different service center than last year. Those who received a tax instruction booklet from the IRS in the mail and use the labels included with the booklet can be assured that their tax returns will go to the correct address. Taxpayers who e-file are not affected by these changes.
For tax year 2007, the mailing changes affect returns, with or without payments, from seven states: Iowa, Kansas, Kentucky, Oklahoma, Pennsylvania, West Virginia, and Wisconsin.
Taxpayers should send:
Returns from Iowa, Kansas, Oklahoma and Wisconsin to the IRS center in Fresno, California.
Returns from Kentucky to the IRS center in Austin, Texas.
Returns from Pennsylvania and West Virginia to the IRS center in Kansas City, Missouri.
For taxpayers who file paper returns, the correct center addresses are on labels inside the tax packages they receive in the mail. Taxpayers who do not receive a package should refer to the back cover of the instructions to Form 1040, 1040A or 1040EZ.
Taxpayers who e-file will not be affected by these changes. Last year, 57 percent of all individual income tax filers chose to e-file their tax returns.

IRS Announces Energy Bond Allocations

noreply@blogger.com (Ecuskully02) — Wed, 13 Feb 2008 05:02:00 +0000

WASHINGTON — The Internal Revenue Service today announced 312 projects eligible to be financed with tax-credit bonds under the Clean Renewable Energy Bonds (CREB) program.
The U.S. Treasury Secretary is authorized to distribute volume cap allocations of tax-credit bonds through the CREB program, which was created by the Energy Tax Incentives Act of 2005 and the Tax Relief and Health Care Act of 2006.
In November 2006, the IRS announced the first round of volume cap allocations, which allocated $800 million of volume cap (some of which was subsequently relinquished) to 610 projects. (The announcement was in IR-2006-181 available on the IRS website.) State and local governments as well as electrical cooperatives are able to issue tax-credit bonds under the program.
Internal Revenue Code Section 54 authorizes the allocation of $1.2 billion of tax-credit bond volume cap to fund projects that can generate clean renewable energy. State and local government borrowers are limited to no more than $750 million of the volume cap with the rest going to qualified mutual or cooperative electric companies.
CREB volume cap allocations are awarded on a “smallest-to-largest” project basis. IRS Notices 2007-26 and 2005-98 further explain the program and can also be found on the IRS website.
The IRS has completed the review of applications for $897 million of CREB financing submitted pursuant to Notice 2007-26 and has notified applicants of the results. The second round included 342 applications from 33 states, pertaining to 395 projects. Approximately $477 million of CREB volume cap was available for allocation to qualified issuers.
The deadline for making an application was July 13, 2007. There were 156 proposed projects in California, 57 in Minnesota, 23 in New Jersey, 17 in Washington, 13 in Nebraska, 12 in Montana, 11 in Illinois and 10 in Wisconsin. Applications ranged in size from $15,000 to $38.5 million.
Governmental borrowers submitted applications totaling $728 million to finance 367 projects with an average project size of about $2 million. Governmental borrowers in 28 states will receive $263 million of volume cap allocations ranging from $15,000 to $2.95 million. Approved projects of governmental borrowers include: 138 solar facilities, 88 wind facilities, 41 landfill gas facilities, 12 hydropower facilities, three closed-loop biomass facilities, three trash combustion facilities and one open-loop biomass facility.
Cooperative borrowers submitted applications totaling about $170 million to finance 28 projects with an average project size of about $6.1 million. Cooperative borrowers will receive about $143 million of volume cap allocations for projects in 13 states ranging from $300,000 to $30 million. Approved cooperative projects include: 14 wind facilities, four landfill gas facilities, six hydropower facilities, one solar facility and one open-loop biomass facility.
Disclosure restrictions prohibit releasing taxpayer-specific information without written consent. Notice 2007-26 included a Consent to Public Disclosure Statement. The 310 projects whose applicants signed the consent form can be viewed online.

Mortgage Workouts, Now Tax-Free for Many Homeowners; Claim Relief on Newly-Revised IRS Form

noreply@blogger.com (Ecuskully02) — Wed, 13 Feb 2008 04:29:00 +0000

WASHINGTON — Homeowners whose mortgage debt was partly or entirely forgiven during 2007 may be able to claim special tax relief by filling out newly-revised Form 982 and attaching it to their 2007 federal income tax return, according to the Internal Revenue Service.
Normally, debt forgiveness results in taxable income. But under the Mortgage Forgiveness Debt Relief Act of 2007, enacted Dec. 20, taxpayers may exclude debt forgiven on their principal residence if the balance of their loan was less than $2 million. The limit is $1 million for a married person filing a separate return. Details are on Form 982 and its instructions, available now on IRS.gov.
“The new law contains important provisions for struggling homeowners,” said Acting IRS Commissioner Linda Stiff. “We urge people with mortgage problems to take full advantage of the valuable tax relief available.”
The late-December enactment means that reporting procedures for this law change were not incorporated into tax-preparation software or IRS forms. For that reason, people using tax software should check with their provider for updates that include the revised Form 982. Similarly, the IRS is now updating its systems and expects to begin accepting electronically-filed returns that include Form 982 by March 3. The paper Form 982 is now being accepted, but the IRS reminds affected taxpayers to consider filing electronically, which greatly reduces errors and speeds refunds.
The new law applies to debt forgiven in 2007, 2008 or 2009. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, may qualify for this relief. In most cases, eligible homeowners only need to fill out a few lines on Form 982 (specifically, lines 1e, 2 and 10b).
The debt must have been used to buy, build or substantially improve the taxpayer's principal residence and must have been secured by that residence. Debt used to refinance qualifying debt is also eligible for the exclusion, but only up to the amount of the old mortgage principal, just before the refinancing.
Debt forgiven on second homes, rental property, business property, credit cards or car loans does not qualify for the new tax-relief provision. In some cases, however, other kinds of tax relief, based on insolvency, for example, may be available. See Form 982 for details.
Borrowers whose debt is reduced or eliminated receive a year-end statement (Form 1099-C) from their lender. For debt cancelled in 2007, the lender was required to provide this form to the borrower by Jan. 31, 2008. By law, this form must show the amount of debt forgiven and the fair market value of any property given up through foreclosure.
The IRS urges borrowers to check the Form 1099-C carefully. Notify the lender immediately if any of the information shown is incorrect. Borrowers should pay particular attention to the amount of debt forgiven (Box 2) and the value listed for their home ( Box 7).

noreply@blogger.com (Ecuskully02) — Thu, 07 Feb 2008 20:19:00 +0000

Tax Returns from Seven States Go to Different Centers

IR-2008-15, Feb. 7, 2008
WASHINGTON — As some taxpayers begin to prepare their paper tax returns, the Internal Revenue Service notes that some may be sending their returns to a different service center than last year. Those who received a tax instruction booklet from the IRS in the mail and use the labels included with the booklet can be assured that their tax returns will go to the correct address. Taxpayers who e-file are not affected by these changes.

For tax year 2007, the mailing changes affect returns, with or without payments, from seven states: Iowa, Kansas, Kentucky, Oklahoma, Pennsylvania, West Virginia, and Wisconsin.

Taxpayers should send:

Returns from Iowa, Kansas, Oklahoma and Wisconsin to the IRS center in Fresno, California.
Returns from Kentucky to the IRS center in Austin, Texas.
Returns from Pennsylvania and West Virginia to the IRS center in Kansas City, Missouri.

For taxpayers who file paper returns, the correct center addresses are on labels inside the tax packages they receive in the mail. Taxpayers who do not receive a package should refer to the back cover of the instructions to Form 1040, 1040A or 1040EZ.Taxpayers who e-file will not be affected by these changes. Last year, 57 percent of all individual income tax filers chose to e-file their tax returns.
Subscribe to IRS Newswire

Wow now this is crazy!

noreply@blogger.com (Ecuskully02) — Mon, 04 Feb 2008 02:20:00 +0000

Ireland Eliminates Plastic Grocery Bags with 33-Cent Tax; ATM Receipts, Chewing Gum Are Next

Interesting article in the New York Times: Motivated by a Tax, Irish Spurn Plastic Bags, by Elisabeth Rosenthal:

In 2002, Ireland passed a tax on plastic bags; customers who want them must now pay 33 cents per bag at the register. There was an advertising awareness campaign. And then something happened that was bigger than the sum of these parts. Within weeks, plastic bag use dropped 94%. Within a year, nearly everyone had bought reusable cloth bags, keeping them in offices and in the backs of cars. Plastic bags were not outlawed, but carrying them became socially unacceptable — on a par with wearing a fur coat or not cleaning up after one’s dog. ...

In January almost 42 billion plastic bags were used worldwide, according to reusablebags.com; the figure increases by more than half a million bags every minute. A vast majority are not reused, ending up as waste — in landfills or as litter. Because plastic bags are light and compressible, they constitute only 2 percent of landfill, but since most are not biodegradable, they will remain there. ...

Ireland has moved on with the tax concept, proposing similar taxes on customers for A.T.M. receipts and chewing gum.

Original Survivor doesn't survive the US District Court

noreply@blogger.com (Ecuskully02) — Mon, 04 Feb 2008 02:14:00 +0000

Survivor Winner Richard Hatch Loses Appeal of Tax Evasion Conviction in First Circuit

United States v. Hatch, No. 06-1902 (1st Cir. 2/1/08)

Richard Hatch, the first winner of the CBS reality tv show "Survivor," appeals from his convictions and sentence on three counts of filing false tax returns, in violation of 26 U.S.C. §§ 7201 and 7206(1), after a jury trial in the United States District Court for the District of Rhode Island.

Hatch makes four arguments on appeal: (1) that the district court violated his Sixth Amendment rights by curtailing Hatch's explanation of why he believed the show's producers had paid the taxes on his "Survivor" winnings; (2) that, in a variety of ways, the court improperly limited the defense's right to crossexamine; (3) that the court wrongly allowed the government to use what Hatch calls "unqualified experts" while excluding some of the testimony of Hatch's own expert; and (4) that his sentence was unreasonably harsh. After reviewing the record and the arguments, we affirm the convictions on all three counts and the sentence.

What to do about IRS Scams...

noreply@blogger.com (Ecuskully02) — Thu, 31 Jan 2008 03:41:00 +0000

After posting about the different types of scams going on now I figured it would also be beneficial if I also enlightened you on what to do if you come across one of these scams. Below are the instructions from the IRS on what you should do and the precautions you should take.

What to Do

Anyone wishing to access the IRS Web site should initiate contact by typing the IRS.gov address into their Internet address window, rather than clicking on a link in an e-mail or opening an attachment.

Those who have received a questionable e-mail claiming to come from the IRS may forward it to a mailbox the IRS has established to receive such e-mails, phishing@irs.gov, using instructions contained in an article titled “How to Protect Yourself from Suspicious E-Mails or Phishing Schemes.” Following the instructions will help the IRS track the suspicious e-mail to its origins and shut down the scam. Find the article by visiting IRS.gov and entering the words “suspicious e-mails” into the search box in the upper right corner of the front page.

Those who have received a questionable telephone call that claims to come from the IRS may also use the phishing@irs.gov mailbox to notify the IRS of the scam.

The IRS has issued previous warnings on scams that use the IRS to lure victims into believing the scam is legitimate. More information on identity theft, phishing and telephone scams using the IRS name, logo or spoofed (copied) Web site is available on this Web site. Enter the terms “phishing,” “identity theft” or “e-mail scams” into the search box in the upper right corner of the front page.

Related Items:

FS-2008-9, Identity Theft E-Mails Scams a Growing Problem
IR-2007-109, IRS Warns Taxpayers of New E-mail Scams
Suspicious e-Mails and Identity Theft

Here are some additional sites you might be interested in.

tax attorney, Tax lawyer, tax consultant, IRS help, IRS attorney, tax debt help, Tax help, tax advocacy, Stop IRS, IRS levy, tax debt, tax debt relief, IRS debt, Help with IRS, Tax Lien, Tax settlement, Tax amnesty, tax negotiation, installment agreement, settle irs, back taxes, owe taxes, currently non--collectible, delinquent taxes, wage garnishment, tax problem, irs tax problem, irs tax help, offer in compromise, tax expert, tax relief, irs tax relief, tax penalty, wage levy

IRS Reports new Scams

noreply@blogger.com (Ecuskully02) — Thu, 31 Jan 2008 03:40:00 +0000

Since I know that I'm probably one of the few people that surfs through the IRS's website daily I figured I would update everyone on the new E-mail and telephone scams. These scams were very dangerous in the past b/c the scammers actually used the IRS's name in their emails and in their phone conversations. Most of the people reported that they were asked for their SSN along with other person information. Here is the latest report from the IRS on the Email and Telephone scams.

IR-2008-11, Jan. 30, 2008

WASHINGTON — The Internal Revenue Service today warned taxpayers to beware of several current e-mail and telephone scams that use the IRS name as a lure. The IRS expects such scams to continue through the end of tax return filing season and beyond.

The IRS cautioned taxpayers to be on the lookout for scams involving proposed advance payment checks. Although the government has not yet enacted an economic stimulus package in which the IRS would provide advance payments, known informally as rebates to many Americans, a scam which uses the proposed rebates as bait has already cropped up.

The goal of the scams is to trick people into revealing personal and financial information, such as Social Security, bank account or credit card numbers, which the scammers can use to commit identity theft.

Typically, identity thieves use a victim’s personal and financial data to empty the victim’s financial accounts, run up charges on the victim’s existing credit cards, apply for new loans, credit cards, services or benefits in the victim’s name, file fraudulent tax returns or even commit crimes. Most of these fraudulent activities can be committed electronically from a remote location, including overseas. Committing these activities in cyberspace allows scamsters to act quickly and cover their tracks before the victim becomes aware of the theft.

People whose identities have been stolen can spend months or years — and their hard-earned money — cleaning up the mess thieves have made of their reputations and credit records. In the meantime, victims may lose job opportunities, may be refused loans, education, housing or cars, or even get arrested for crimes they didn't commit.

The most recent scams brought to IRS attention are described in the following post.

Here are some additional sites you might be interested in.

Effectur
IRS Help 4 You
Tax Consultant Blogs
Brain's Blog
Ashley's Tax Blog
IRS Minds
IRS NEWS

IRS Phone Call Scam

noreply@blogger.com (Ecuskully02) — Thu, 31 Jan 2008 03:32:00 +0000

As mentioned above the IRS put out a warning today for scams involving the IRS. These scams can range from phone calls from people claiming to be with the IRS to emails supposedly sent from the IRS. I would like to stress that the IRS DOES NOT send out emails to the general public and that the IRS does not force people to use direct deposit for their refunds. Here is the latest update on the Phone Scams reported by the IRS.

Paper Check Phone Call

In a current telephone scam, a caller claims to be an IRS employee who is calling because the IRS sent a check to the individual being called. The caller states that because the check has not been cashed, the IRS wants to verify the individual’s bank account number. The caller may have a foreign accent.

In reality, the IRS leaves it entirely up to the individual to choose to cash or not cash a paper check. The IRS has no business need to know, and does not ask for, bank account or similar information, except when taxpayers indicate on their tax return that they are opting for the direct electronic deposit of their refund. In that case, however, it is the individual’s responsibility to provide the IRS with the correct bank routing and account numbers on the tax return; the IRS does not contact taxpayers to verify the information.

Here are some additional sites you might be interested in.

Effectur
IRS Help 4 You
Tax Consultant Blogs
Brain's Blog
Ashley's Tax Blog
IRS Minds
IRS NEWS

IRS E-Mail Scam updated

noreply@blogger.com (Ecuskully02) — Thu, 31 Jan 2008 03:31:00 +0000

As mentioned above the IRS put out a warning today for scams involving the IRS. These scams can range from phone calls from people claiming to be with the IRS to emails supposedly sent from the IRS. I would like to stress that the IRS DOES NOT send out emails to the general public and that the IRS does not force people to use direct deposit for their refunds. Here is the latest update on the E-Mail scams being sent out.

Changes to Tax Law e-Mail

This bogus e-mail is addressed to businesses, accountants and “Treasury” managers. It instructs them to download information on tax law changes by clicking on a series of links to publications on businesses, estate taxes, excise taxes, exempt organizations and IRAs and other retirement plans. The IRS believes that clicking on a link downloads malware onto the recipient’s computer. Malware is malicious code that can take over the victim’s computer hard drive, giving someone remote access to the computer, or it could look for passwords and other information and send them to the scamster. There are other types of malware, as well.

The urls contained in the link are not legitimate IRS Web addresses. All IRS.gov Web page addresses begin with http://www.irs.gov/.

Here are some additional sites you might be interested in.

Effectur
IRS Help 4 You
Tax Consultant Blogs
Brain's Blog
Ashley's Tax Blog
IRS Minds
IRS NEWS

Additional IRS E-Mail Scam

noreply@blogger.com (Ecuskully02) — Thu, 31 Jan 2008 03:29:00 +0000

As mentioned above the IRS put out a warning today for scams involving the IRS. These scams can range from phone calls from people claiming to be with the IRS to emails supposedly sent from the IRS. I would like to stress that the IRS DOES NOT send out emails to the general public and that the IRS does not force people to use direct deposit for their refunds. Here is the latest update on the E-Mail scams being sent out.

Audit e-Mail

Another new scam brought to IRS attention contains features not seen before by the IRS. Using a technique calculated to get almost anyone’s attention, the e-mail notifies the recipient that his or her tax return will be audited. This is the first scam of which the IRS is aware that uses this to get the victim to respond.

Unusual for a scam e-mail, it may contain a salutation in the body addressed to the specific recipient by name. Most scam e-mails seen by the IRS are sent using the same technique used by spammers, in which hundreds of thousands of messages are sent to potential victims based on Internet address. Because of the volume, the typical scam e-mail is not personalized.

This e-mail instructs the recipient to click on links to complete forms with personal and account information, which the scammers will use to commit identity theft.

This e-mail is a phony. The IRS does not send unsolicited, tax-account related e-mails to taxpayers.

Here are some additional sites you might be interested in.

Effectur
IRS Help 4 You
Tax Consultant Blogs
Brain's Blog
Ashley's Tax Blog
IRS Minds
IRS NEWS

IRS E-Mail Scams

noreply@blogger.com (Ecuskully02) — Thu, 31 Jan 2008 03:27:00 +0000

As mentioned above the IRS put out a warning today for scams involving the IRS. These scams can range from phone calls from people claiming to be with the IRS to emails supposedly sent from the IRS. I would like to stress that the IRS DOES NOT send out emails to the general public and that the IRS does not force people to use direct deposit for their refunds. Here is the latest update on the E-Mail scams being sent out.

Refund e-Mail

The IRS has seen several variations of a refund-related bogus e-mail which falsely claims to come from the IRS, tells the recipient that he or she is eligible for a tax refund for a specific amount, and instructs the recipient to click on a link in the e-mail to access a refund claim form. The form asks the recipient to enter personal information that the scamsters can then use to access the e-mail recipient’s bank or credit card account.

In a new wrinkle, the current version of the refund scam includes two paragraphs that appear to be directed toward tax-exempt organizations that distribute funds to other organizations or individuals. The e-mail contains the name and supposed signature of the Director of the IRS’s Exempt Organizations business division.

This e-mail is a phony. The IRS does not send unsolicited e-mail about tax account matters to individual, business, tax-exempt or other taxpayers.

Filing a tax return is the only way to apply for a tax refund; there is no separate application form. Taxpayers who wish to find out if they are due a refund from their last annual tax return filing may use the “Where’s My Refund?” interactive application on this Web site, IRS.gov. The only official IRS Web site is located here at www.irs.gov.

Here are some additional sites you might be interested in.

Effectur
IRS Help 4 You
Tax Consultant Blogs
Brain's Blog
Ashley's Tax Blog
IRS Minds
IRS NEWS

IRS Phone Call Scams

noreply@blogger.com (Ecuskully02) — Thu, 31 Jan 2008 03:24:00 +0000

As mentioned above the IRS put out a warning today for scams involving the IRS. These scams can range from phone calls from people claiming to be with the IRS to emails supposedly sent from the IRS. I would like to stress that the IRS DOES NOT send out emails to the general public and that the IRS does not force people to use direct deposit for their refunds. Here is the latest update on the Phone Scams reported by the IRS.

Rebate Phone Call

At least one scheme using the word “rebate” as part of the lure has been identified. In that scam, consumers receive a phone call from someone identifying himself as an IRS employee. The caller tells the targeted victim that he is eligible for a sizable rebate for filing his taxes early. The caller then states that he needs the target’s bank account information for the direct deposit of the rebate. If the target refuses, he is told that he cannot receive the rebate.

This phone call is a scam. No legislation has yet been enacted that would allow the IRS to provide advance payments to taxpayers or that determines the details of those payments. Moreover, the IRS does not force taxpayers to use direct deposit. Those who opt for direct deposit do so by completing the appropriate section of their tax return, with bank routing and account information, when they file; the IRS does not gather the information by telephone.

Here are some additional sites you might be interested in.

Effectur
IRS Help 4 You
Tax Consultant Blogs
Brain's Blog
Ashley's Tax Blog
IRS Minds
IRS NEWS

Daily Success Quote

noreply@blogger.com (Ecuskully02) — Thu, 31 Jan 2008 00:11:00 +0000

Cherish your visions

and your dreams as they are the

children of your soul;

the blueprints of your ultimate

achievements.

~Napoleon Hill~

Where is my refund?

noreply@blogger.com (Ecuskully02) — Sun, 27 Jan 2008 23:58:00 +0000

So lately all I've been hearing is "Where is my refund?" Well after spending some time searching online this is what I've found. Here is a link that will help you find that lost refund.

Where is my refund?

Here are some additional sites you might be interested in.
Effectur
IRS Help 4 You
Tax Consultant Blogs
Brain's Blog
Ashley's Tax Blog
IRS Minds
IRS NEWS

Is a tax rebate coming your way?

noreply@blogger.com (Ecuskully02) — Sun, 27 Jan 2008 21:55:00 +0000

No doubt you’ve heard the “great” news that a deal on a stimulus package has been reached and that (if the Senate drafts a similarly worded bill [a big if!], the two are married, and the President signs it) checks will be in the mail as early as May or June. Whether you believe the naysayers that say we’re really just propping up the Chinese economy (or oil rich nations) because we’re borrowing from them to buy their goods or whether you believe the proponents that say this will boost own economy in magical ways the fact of the matter is a deal has been reached - so what is it? Essentially, it’s a removal of the 10% tax bracket for everyone with some modifications. It includes phaseouts that begin past annual incomes of $75,000 and a component that includes those working Americans that don’t earn enough to pay income taxes.

To get a clearer understanding of the rules, let’s walk up the income levels and explain how it works; beginning first with those filing their taxes as singles and then adding in families. How the phaseouts work, from what I can understand, is that you first determine eligibility (if you earned more than $3,000 and paid taxes) and then, if you fall in to the phaseout, start reducing your benefit.

Singles

Determine Eligibility:
If you earned less than $3,000 - unfortunately you’d get nothing.
If you earned more than $3,000 but paid no taxes, you’d get $300.
If you earned more than $3,000 and paid taxes, you get $600.
If you have children, add $300 per.
Determine Phaseout Reduction:
The phaseout levels begin at $75k and end at $87k, at a reduction of 5% per $1,000 over the lower limit. If you earn above $87k, you’re over and thus get nothing regardless of the math.

Couples

Determine Eligibility (appears to be the same as singles):
If you earned less than $3,000 - unfortunately you’d get nothing.
If you earned more than $3,000 but paid no taxes, you’d get $600.
If you earned more than $3,000 and paid taxes, you get $1,200.
If you have children, add $300 per.
Determine Phaseout Reduction:
The phaseout levels begin at $150k and end at $174, at a reduction of 5% per $1,000 over the lower limit. If you earned above $174k, you’re over and thus get nothing regardless of the math.

Some Common Examples

These are taken from a post by Gridking on Tickerform.org:

An individual with $2,500 in earned income in 2007: Disqualified because income fell below the $3,000 threshold. No rebate.
A married couple with no children, with adjusted gross income of $100,000 in 2007: Would qualify for the full $1,200 couples. A $1,200 rebate.
A worker with one child, who earned $9,000 and owed no taxes in 2007: Would qualify for the $300 rebate available to individuals who pay no taxes but earned at least $3,000, plus an additional $300 for the child. A $600 rebate.
A couple with income of $145,000 in 2007, with three children: Would qualify for the full $1,200 for couples, plus $300 for each child. A $2,100 rebate.
A couple with income of $160,000 in 2007 with two children: Would qualify for a partial rebate, reduced by 5 percent for every $1,000 in income above the $150,000 threshold. An $1,800 rebate $1,200 for the couple plus $300 per child — would go down by 50 percent for this family. A $900 rebate.
A couple with income of $200,000 and four children: Disqualified because their income exceeded $174,000, the phase-out limit. No rebate.

There were a few other salient details to the bill, including a temporary raising of the individual mortgage ceiling that Fannie Mae and Freddie Mac could purchase (FHA loan limits) - increasing it to a whopping $729,750 (up from $417,000), and business tax breaks for infrastructure investments.

Here are some additional sites you might be interested in.

What you should know...

noreply@blogger.com (Ecuskully02) — Sat, 26 Jan 2008 04:06:00 +0000

In order to be in compliance with the IRS you need to have filed for the past 6 years and the present year. Any years that are unfilled the IRS has the option of filing a SFR, Substitute for return. When they do this they file in the best interest of the treasury. They DO NOT give you the deductions that you would normally file b/c it is not in their best interest. When the IRS does file a SFR you are able to still file for that year and a majority of the time the amount you owe the IRS will go down. The IRS doesn't have to file a SFR for you though... If you were due a refund for that particular year they will not file a SFR b/c that would not be in their best interest. Like any professional will tell you you are better off filing every year and collecting what is due to you. If you have unfilled returns and you owe the IRS they will keep your refund to go towards the amount owed to them and will continue to add interest, close to 20%, and will continue to add the penalties. The penalties will continue until you have filed all of your returns and have also either entered into a payment arrangement or have paid the debt off in full. Most people think that b/c they don't' make enough money they don't' have to file but that is not always true.
That's all I'm writing for now but check back later for updates and more tax related information.

Daily Success Quote

noreply@blogger.com (Ecuskully02) — Fri, 25 Jan 2008 16:07:00 +0000

There are no shortcuts to any place worth going.

~Beverly Sills~

Daily Success Quote

noreply@blogger.com (Ecuskully02) — Thu, 24 Jan 2008 07:04:00 +0000

~Seven Secrets Of Success~

There is no secret of success.
Success if for everyone.
Your life becomes better only when you become better.
There is no success without sacrifice.
Success is achieved in inches, not miles.
The greatest enemy of tomorrow's success is today's success.
No advice on success works unless you do.

Tax Freedom Day?

noreply@blogger.com (Ecuskully02) — Thu, 24 Jan 2008 06:12:00 +0000

So lately i've been online just searching for random tax things. Well I came across an interesting article and thought it was pretty interesting so here it is.

Tax Freedom Day is the first day of the year in which a nation as a whole has theoretically earned enough income to fund its annual tax burden. It is annually calculated in the United States by the Tax Foundation—a Washington, D.C.-based tax research organization. Every dollar that is officially considered income by the U.S. government is counted, and every payment to the U.S. government that is officially considered a tax is counted. Taxes at all levels of government—local, state and federal—are included.

The concept of Tax Freedom Day was developed and copyrighted in 1948 by Florida businessman Dallas Hostetler, who calculated it each year for the next two decades. In 1971, Hostetler retired and transferred the copyright to the Tax Foundation. The Tax Foundation has calculated Tax Freedom Day for the United States ever since, using it as a tool for illustrating the proportion of national income diverted to fund the annual cost of government programs. In 1990, the Tax Foundation began calculating the specific Tax Freedom Day for each individual state.

Here are some additional sites you might be interested in.

Effectur
IRS Help 4 You
Tax Consultant Blogs
Brain's Blog
Ashley's Tax Blog
IRS Minds
IRS NEWS

Moving Anytime Soon?

noreply@blogger.com (Ecuskully02) — Thu, 24 Jan 2008 04:28:00 +0000

Thinking of moving anytime soon? Well here is a great article about states with no income tax that may help you when thinking of moving.

If you are considering relocating to a new state, taxes should be something you consider. Specifically, there are a number of states with no income tax.

States With No Income Tax

As you well know, paying taxes is a grind. Paying federal taxes is the biggest burden, but state income tax can quickly add up as well. There are, however, some states with no income tax. Depending on your earnings, this can save you hundreds or thousands of dollars a year when tax time rolls around.

There are seven glorious states with no income tax. In no particular order, they are:

Alaska
Florida
Nevada
South Dakota
Texas
Washington
Wyoming

There are two other states that technically collect income tax, but do not for all practical purposes. They are Tennessee and New Hampshire. These two do not collect a tax on your earnings, but they do collect tax if you receive dividends. Under tax law, dividends are technically considered to be income, thus neither Tennessee nor New Hampshire are technically states with no income tax.

At first glance, a lack of income tax may seem like a great thing. Generally, this is true, but you need to watch out. Many of these states make up the difference by collecting taxes in other ways. They may crank up their sales tax or property taxes for example. The particular approach varies from state to state, but they generally do something. The exceptions to this rule are Alaska and Nevada. Alaska derives most of its money from the oil companies. As you can probably guess, Nevada makes up the difference from the casinos.

If you are considering moving to another state, taxes are something you should definitely take into consideration. While a factor, they should probably not be the overriding one in your decision.

Here are some additional sites you might be interested in.

Effectur
IRS Help 4 You
Tax Consultant Blogs
Brain's Blog
Ashley's Tax Blog
IRS Minds
IRS NEWS

A Great Introduction To Taxes

noreply@blogger.com (Ecuskully02) — Thu, 24 Jan 2008 04:14:00 +0000

I've been searching different sites online for some tax articles that you might find interesting. Here is one that I found particularly interesting since it is an introduction to taxes.

Introduction to Tax - If you want to kill the mood at a gathering, just start talking about taxes. With this introduction to tax, hopefully you will see why it is not the beast it seems.

Introduction to Tax

Okay, I will admit it. I hate paying taxes just like you. Yes, it is just as frustrating and hard for me as it is for you. I groan. I get that pain in my sinuses. My eyes get dry and, yes, I occasionally create a new cuss word or two…or three. There is no escape for any of us.

When writing an introduction to tax, one is tempted to just complain endlessly. After all, it was President Jimmy Carter who said the U.S. tax system is a crime against humanity. While I tend to agree, the notion of paying taxes is not the total thievery it seems. At a basic level, we need to pay taxes.

In an ideal world, our taxes pay for things we need even if we don’t always recognize them. When you drive from here to there, you are driving on roads paid for by your taxes. Your toilet flushes because you pay taxes, and we all know how important that is. You, me and every American gets a basic education because we pay taxes. When our country is threatened, our taxes pay for a military to protect us. Given the mess in Iraq, you might feel differently about that last statement, but it was certainly true in both World Wars.

The point I am trying to make is our tax payments provide us with many basic services we need. Could they be privatized? Yes, but I am not sure I want a large corporation dictating how, when and how much it will cost my toilet to flush. In some areas, I personally feel we are better off with the government running things. You may feel differently, but that is the joy of being American. We get to form our own views and then be stubborn about changing them!

One area where we both can agree tax is evil has to do with pork. Pork is simply a term used to describe government programs that are not particularly necessary, but which Congress still spends tons of money on. These programs usual call for millions to be spent in a particular state for a particular thing. We read about them on the news or net and scream in outrage. But are we really outraged?

The funny thing about pork is it is outrageous if it sends money to an area other than our own. When one of our representatives, however, gets funding for a large project in our area, you will rarely hear a peep from us. The simple fact is most people view pork as a waste or our money unless we are getting it back. In our way of democracy, this is often how our representatives make sure they get another term. If we really felt differently, wouldn’t we vote them out of office? Doesn’t seem to happen all that much, does it?

This introduction to tax is not intended to make you smile when sending in your next check. It is merely intended to shine a slightly different light on the process that might make you think twice next time you are sitting on the toilet reading tax form 137289B, subsection d1, line 83a, paragraph 9f. Then again, it may not.

Here are some additional sites you might be interested in.

Effectur
IRS Help 4 You
Tax Consultant Blogs
Brain's Blog
Ashley's Tax Blog
IRS Minds
IRS NEWS