I just had to share this article. Great advice for parents considering the current state of the economy.
http://www.smartmoney.com/spending/deals/8-ways-to-save-money-responsibly-on-baby-care/
Don’t forget to follow us on Twitter: http:// twitter.com/1stCapAdvise
Many people look for help from professionals when it’s time to file their tax return. If you use a paid tax preparer to file your federal income tax return this year, the IRS urges you to choose that preparer carefully. Even if someone else prepares your return, you are legally responsible for what is on it.
Here are ten tips to keep in mind when choosing a tax return preparer:
1. Check the preparer’s qualifications. All paid tax return preparers are required to have a Preparer Tax Identification Number. In addition to making sure they have a PTIN, ask if the preparer belongs to a professional organization and attends continuing education classes.
2. Check on the preparer’s history. Check with the Better Business Bureau to see if the preparer has a questionable history. Also check for any disciplinary actions and for the status of their licenses. For certified public accountants, check with the state boards of accountancy. For attorneys, check with the state bar associations. For enrolled agents, check with the IRS Office of Enrollment.
3. Ask about service fees. Avoid preparers who base their fee on a percentage of your refund or those who claim they can obtain larger refunds than other preparers can. Also, always make sure any refund due is sent to you or deposited into an account in your name. Taxpayers should not deposit their refund into a preparer’s bank account.
4. Ask to e-file your return. Make sure your preparer offers IRS e-file. Any paid preparer who prepares and files more than 10 returns for clients must file the returns electronically, unless the client opts to file a paper return. IRS has safely and securely processed more than one billion individual tax returns since the debut of electronic filing in 1990.
5. Make sure the preparer is accessible. Make sure you will be able to contact the tax preparer after you file your return, even after the April 15 due date. This may be helpful in the event questions arise about your tax return.
6. Provide records and receipts. Reputable preparers will request to see your records and receipts. They will ask you questions to determine your total income and your qualifications for deductions, credits and other items. Do not use a preparer who is willing to e-file your return by using your last pay stub before you receive your Form W-2. This is against IRS e-file rules.
7. Never sign a blank return. Avoid tax preparers that ask you to sign a blank tax form.
8. Review the entire return before signing. Before you sign your tax return, review it and ask questions. Make sure you understand everything and are comfortable with the accuracy of the return before you sign it.
9. Make sure the preparer signs and includes their PTIN. A paid preparer must sign the return and include their PTIN as required by law. The preparer must also give you a copy of the return.
10. Report abusive tax preparers to the IRS. You can report abusive tax preparers and suspected tax fraud to the IRS on Form 14157, Complaint: Tax Return Preparer. If you suspect a return preparer filed or altered a return without your consent, you should also file Form 14157-A, Return Preparer Fraud or Misconduct Affidavit. Download the forms on the IRS.gov website or order them by mail at 800-TAX-FORM (800-829-3676).
Additional IRS Resources:
Note. From Issue Number: IRS Tax Tip 2013-07. Copyright 2013 by Copyright Holder. Reprinted with permission.
The IRS uses a variety of technologies to help you get the tax information you need. Here are six ways the IRS uses social media to share information on tax changes, initiatives, products and services:
1. IRS2Go 2.0 IRS’s smartphone application allows you to check your refund status, get tax updates and follow the IRS via Twitter. IRS2Go 2.0 is available in the Apple App store for iPhone or iPod touch devices and in the GooglePlay store for Android devices.
2. YouTube IRSvideos YouTube Channel offers short, informative clips on various tax-related topics. The videos are available in English, American Sign Language and Spanish.
3. Twitter IRS tweets include tax-related announcements, news for tax professionals and updates for job seekers. Follow us @IRSnews.
4. Facebook IRS has Facebook pages that post tax information for individuals, tax professionals, and for those needing help resolving long-standing tax issues with the IRS.
5. Audio files for Podcasts These short audio recordings provide information on tax-related topics — one per podcast. The audio files (along with transcripts) are available on iTunes or through the Multimedia Center on IRS.gov.
6. Widgets These tools, which can be placed on websites, blogs or social media networks, direct people to visit IRS.gov for information. The widgets feature the latest tax initiatives and programs and can be found on Marketing Express, the marketing site that allows IRS partners and tax preparers to customize their IRS communications products.
As a reminder, the IRS uses these tools to share information with you. Do not post any personal information on social media sites, especially your Social Security number or other confidential information. The IRS will not be able to answer personal tax or account questions on any of these platforms.
For more about IRS’s social media tools, visit IRS.gov and click on “Social Media.”
Note. From Issue Number: IRS Tax Tip IRS-2012-10. Copyright 2012 by Copyright Holder. Reprinted with permission.
I recently read an article about the rising debt of senior citizens. Senior citizens, I thought? Surprising, not really. Think about it. Senior citizens are on a fixed income unlike the younger generation. Their income does not keep up with the rising prices for food or anything else. Seniors are using their credit cards to pay for everyday items such as groceries and medical care. The article mentions visiting a consumer credit counseling service. Here are a few additional steps you can take to help a loved one:
· Set up a budget and evaluate where the money is being spent. The budget will help with organizing expenses and looking for excess cash reserves.
· Look for alternative sources of income. Perhaps your loved one can obtain a part time job to help with the excess bills.
· Shop around for better prescription prices or choose generic drugs. Wal-Mart has a prescription program where prescriptions can be purchased for as little as $4.
http://www.walmart.com/catalog/catalog.gsp?cat=546834
· Contact the credit card company and negotiate repayment terms. Right now is a good time to negotiate with your credit card company. Most of them are flexible and willing to negotiate with you in order to keep you as a customer.
What are your thoughts and what are you doing to help your loved one overcome their debt problem?
Don’t forget to follow us on Twitter: http:// twitter.com/1stCapAdvise
As with anything else, it’s vital for military personnel to understand their tax rights and benefits. Too often many tax benefits are overlooked because military personnel are not aware of their rights. Among these are:
Your tax accountant is a great resource for understanding your tax rights and benefits. Additionally, IRS Publication 3, Armed Forces’ Tax Guide is also a great resource.
Follow us on Twitter.: http://twitter.com/1stCapAdvise
Whether you like to play the ponies, roll the dice or pull the slots, your gambling winnings are taxable. You must report all your gambling income on your tax return. If you’re a casual gambler, odds are good that these basic tax tips can help you at tax time next year:
1. Gambling income. Gambling income includes winnings from lotteries, horse racing and casinos. It also includes cash prizes and the fair market value of prizes like cars and trips.
2. Payer tax form. If you win, you may get a Form W-2G, Certain Gambling Winnings, from the payer. The IRS also gets a copy of the W-2G. The payer issues the form depending on the type of game you played, the amount of your winnings and other factors. You’ll also get the form if the payer withholds taxes from what you won.
3. How to report winnings. You must report all your gambling winnings as income. This is true even if you don’t receive a Form W-2G. You normally report your winnings for the year on your tax return as ‘other income.’
4. How to deduct losses. You can deduct your gambling losses on Schedule A, Itemized Deductions. The amount you can deduct is limited to the amount of the gambling income you report on your return.
5. Keep gambling receipts. You should keep track of your wins and losses. This includes keeping items such as a gambling log or diary, receipts, statements or tickets.
For more on this topic see Publications 525, Taxable and Nontaxable Income, and 529, Miscellaneous Deductions. Both are available on IRS.gov or by calling 800-TAX-FORM (800-829-3676).
Additional IRS Resources:
IRS YouTube Videos:
IRS Podcasts:
Note. From Issue Number: IRS Tax Tip 2014-03. Copyright 2014 by Copyright Holder. Reprinted with permission.
Many people often need prior year tax records for various reasons. Some of these reasons include loan applications or other legal matters. Often people don’t know how to obtain this information or that the information is even available. Taxpayers can make a request to get free copies by going on line, through the mail, or calling the IRS directly.
Your tax professional is always a good resource for any tax questions that you have or if you need assistance ordering your transcripts.
Follow us on Twitter.: http://twitter.com/1stCapAdvise
Going green is the new buzz word. Many people think that only large businesses can go green. Well, no matter how big or small your business, there are many things that can be done to promote a cleaner environment. Here are my top tips below:
Most taxpayers get a refund from the Internal Revenue Service when they file their tax returns. For those who don’t get a refund, the IRS offers several options to pay their tax bill.
Here are eleven tips for taxpayers who owe money to the IRS.
1. Tax bill payments If you get a bill from the IRS this summer that shows you owe late taxes, you are expected to promptly pay the tax owed including any penalties and interest. If you are unable to pay the amount due, it may be better for you to get a loan to pay the bill in full rather than to make installment payments to the IRS. That’s because the interest rate and penalties the IRS must charge by law are often higher than what lending institutions may be offering.
2. Electronic Funds Transfer You can pay your tax bill by electronic funds transfer, check, money order, cashier’s check or cash. To pay using electronic funds transfer, use the Electronic Federal Tax Payment System by either calling 800-555-4477 or using the online access at www.eftps.gov.
3. Credit card payments You can pay your bill with a credit card. Again, the interest rate on a credit card may be lower than the combination of interest and penalties the IRS must charge. To pay by credit card contact one of the following processing companies:
– WorldPay US, Inc. at 888-9PAY-TAX (or www.payUSAtax.com),
– Official Payments Corporation at 888-UPAY-TAX (or www.officialpayments.com/fed), or
– Link2Gov Corporation at 888-PAY-1040 (or www.pay1040.com).
4. Additional time to pay Based on your circumstances, you may be granted a short additional time to pay your tax in full. A brief additional amount of time to pay can be requested through the Online Payment Agreement application at IRS.gov or by calling 800-829-1040. There generally is no set up fee for a short-term agreement.
5. Installment Agreement You may request an installment agreement if you cannot pay the total tax you owe in full. This is an agreement between you and the IRS to pay the amount due in monthly installment payments. You must first file all required returns and be current with estimated tax payments.
6. Apply Using Form 9465 You can complete and mail an IRS Form 9465, Installment Agreement Request, along with your bill using the envelope you received from the IRS. The IRS will inform you (usually within 30 days) whether your request is approved, denied, or if additional information is needed.
7. Apply Using Online Payment Agreement If you owe $50,000 or less in combined tax, penalties and interest, you can request an installment agreement using the Online Payment Agreement application at IRS.gov. You may still qualify for an installment agreement if you owe more than $50,000, but you are required to complete a Form 433F, Collection Information Statement, before the IRS will consider an installment agreement.
8. User fees If an installment agreement is approved, a one-time user fee will be charged. The user fee for a new agreement is $105 or $52 for agreements where payments are deducted directly from your bank account. For eligible individuals with lower incomes, the fee can be reduced to $43.
9. Offer in Compromise IRS is now offering more flexible terms with its Offer-in-Compromise (OIC) Program. An OIC is an agreement between a taxpayer and the IRS that settles the taxpayer’s tax debt for less than the full amount owed. An OIC is generally accepted only if the IRS believes, after assessing the taxpayer’s financial situation, that the tax debt can’t be paid in full as a lump sum or through a payment agreement.
10. Check withholding Taxpayers who have a balance due may want to consider changing their Form W-4, Employee’s Withholding Allowance Certificate, with their employer.
11. Fresh Start The IRS has a program to help struggling taxpayers get a fresh start. Through the Fresh Start program, individuals and small businesses may be able to pay the taxes they owe without facing additional or unnecessary burden.
For more information about payment options or IRS’s Fresh Start program, visit IRS.gov. IRS Publications 594, The IRS Collection Process, and 966, Electronic Choices to Pay All Your Federal Taxes, also provide additional information regarding your payment options. These publications and Forms 9465 and W-4 can be obtained from IRS.gov or by calling 800-TAX-FORM (800-829-3676).
Links:
Note. From Issue Number: IRS Tax Tip IRS-2012-13. Copyright 2012 by Copyright Holder. Reprinted with permission.
The IRS receives thousands of reports every year from taxpayers who receive emails out-of-the-blue claiming to be from the IRS. Scammers use the IRS name or logo to make the message appear authentic so you will respond to it. In reality, it’s a scam known as “phishing,” attempting to trick you into revealing your personal and financial information. The criminals then use this information to commit identity theft or steal your money.
The IRS has this advice for anyone who receives an email claiming to be from the IRS or directing you to an IRS site:
Here are five other key points the IRS wants you to know about phishing scams.
1. The IRS does not initiate contact with taxpayers by email or social media channels to request personal or financial information;
2. The IRS never asks for detailed personal and financial information like PIN numbers, passwords or similar secret access information for credit card, bank or other financial accounts;
3. The address of the official IRS website is www.irs.gov. Do not be misled by sites claiming to be the IRS but ending in .com, .net, .org or anything other than .gov. If you discover a website that claims to be the IRS but you suspect it is bogus, do not provide any personal information on their site and report it to the IRS;
4. If you receive a phone call, fax or letter in the mail from an individual claiming to be from the IRS but you suspect they are not an IRS employee, contact the IRS at 1-800-829-1040 to determine if the IRS has a legitimate need to contact you. Report any bogus correspondence. Forward a suspicious email to phishing@irs.gov;
5. You can help the IRS and other law enforcement agencies shut down these schemes. Visit the IRS.gov website to get details on how to report scams and helpful resources if you are the victim of a scam. Click on “Reporting Phishing” at the bottom of the page.
Additional IRS Resources:
IRS YouTube Videos:
IRS Podcasts
Note. From Issue Number: IRS Tax Tip 2013-19. Copyright 2013 by Copyright Holder. Reprinted with permission.
