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If you owe tax with your federal tax return, but can't afford to pay it all when you file, the IRS wants you to know your options and help you keep interest and penalties to a minimum.
Here are five tips:
1. File your return on time and pay as much as you can with the return. These steps will eliminate the late filing penalty, reduce the late payment penalty and cut down on interest charges. For electronic and credit card options for paying see www.IRS.gov. You may also mail a check payable to the United States Treasury.
2. Consider obtaining a loan or paying by credit card. The interest rate and fees charged by a bank or credit card company may be lower than interest and penalties imposed by the Internal Revenue Code.
3. Request an installment payment agreement. You do not need to wait for IRS to send you a bill before requesting a payment agreement. Options for requesting an agreement include:
• Using the Online Payment Agreement application and
• Completing and submitting IRS Form 9465-FS, Installment Agreement Request, with your return IRS charges a user fee to set up your payment agreement. See www.irs.gov or the installment agreement request form for fee amounts.
4. Request an extension of time to pay. For tax year 2011, qualifying individuals may request an extension of time to pay and have the late payment penalty waived as part of the IRS Fresh Start Initiative. To see if you qualify visit www.irs.gov and get form 1127-A, Application for Extension of Time for Payment. But hurry, your application must be filed by April 17, 2012.
5. If you receive a bill from the IRS, please contact us immediately to discuss these and other payment options. Ignoring the bill will only compound your problem and could lead to IRS collection action.
If you can’t pay in full and on time, the key to minimizing your penalty and interest charges is to pay as much as possible by the tax deadline and the balance as soon as you can. For more information on the IRS collection process go to or see IRSVideos.gov/OweTaxes.
25 Şubat 2013 Pazartesi
Start Planning Now for Next Year's Tax Return
To contact us Click HERE
The tax deadline may have just passed but planning for next year can startnow. The IRS reminds taxpayers that being organized and planning ahead can savetime, money and headaches in 2013. Here are eight things you can do now to makenext April 15 easier.
1. Adjust your withholding Why wait another year for a bigrefund? Now is a good time to review your withholding and make adjustments fornext year, especially if you'd prefer more money in each paycheck this year. Ifyou owed at tax time, perhaps you'd like next year's tax payment to be smaller.Use IRS's Withholding Calculator at www.irs.govor Publication 919, How Do I Adjust My Tax Withholding?
2. Store your return in a safe place Put your 2011 taxreturn and supporting documents somewhere secure so you'll know exactly whereto find them if you receive an IRS notice and need to refer to your return. Ifit is easy to find, you can also use it as a helpful guide for next year's return.
3. Organize your recordkeeping Establish a central locationwhere everyone in your household can put tax-related records all year long.Anything from a shoebox to a file cabinet works. Just be consistent to avoid ascramble for misplaced mileage logs or charity receipts come tax time.
4. Review your paycheck Make sure your employer is properlywithholding and reporting retirement account contributions, health insurancepayments, charitable payroll deductions and other items. These payrolladjustments can make a big difference on your bottom line. Fixing an error inyour paycheck now gets you back on track before it becomes a huge hassle.
5. Shop for a tax professional early If you use a taxprofessional to help you strategize, plan and make financial decisionsthroughout the year, then search now. You'll have more time when you're not upagainst a deadline or anxious for your refund. Choose a tax professionalwisely. You are ultimately responsible for the accuracy of your own returnregardless of who prepares it. Find tips for choosing a preparer at www.irs.gov.
6. Prepare to itemize deductions If your expenses typicallyfall just below the amount to make itemizing advantageous, a bit of planning tobundle deductions into 2012 may pay off. An early or extra mortgage payment,pre-deadline property tax payments, planned donations or strategically paidmedical bills could equal some tax savings. See the Schedule A instructions forexpenses you can deduct if you're itemizing and then prepare an approach thatworks best for you.
7. Strategize tuition payments The American Opportunity TaxCredit, which offsets higher education expenses, is set to expire after 2012.It may be beneficial to pay 2013 tuition in 2012 to take full advantage of thistax credit, up to $2,500, before it expires. For more information, see IRSPublication 970, Tax Benefits for Education.
8. Keep up with changes Find out about tax law changes,helpful tips and IRS announcements all year by subscribing to IRS Tax Tipsthrough www.irs.govor IRS2Go, the mobile app from the IRS. The IRS issues tips regularly duringsummer and tax season. Special Edition tips are sent periodically with othertimely updates.
The IRS emphasizes that each household's financial circumstances aredifferent so it's important to fully consider your specific situation and goalsbefore making large financial decisions.
Please contact us if you have any questions. 801-269-1818
Links:
The tax deadline may have just passed but planning for next year can startnow. The IRS reminds taxpayers that being organized and planning ahead can savetime, money and headaches in 2013. Here are eight things you can do now to makenext April 15 easier.
1. Adjust your withholding Why wait another year for a bigrefund? Now is a good time to review your withholding and make adjustments fornext year, especially if you'd prefer more money in each paycheck this year. Ifyou owed at tax time, perhaps you'd like next year's tax payment to be smaller.Use IRS's Withholding Calculator at www.irs.govor Publication 919, How Do I Adjust My Tax Withholding?
2. Store your return in a safe place Put your 2011 taxreturn and supporting documents somewhere secure so you'll know exactly whereto find them if you receive an IRS notice and need to refer to your return. Ifit is easy to find, you can also use it as a helpful guide for next year's return.
3. Organize your recordkeeping Establish a central locationwhere everyone in your household can put tax-related records all year long.Anything from a shoebox to a file cabinet works. Just be consistent to avoid ascramble for misplaced mileage logs or charity receipts come tax time.
4. Review your paycheck Make sure your employer is properlywithholding and reporting retirement account contributions, health insurancepayments, charitable payroll deductions and other items. These payrolladjustments can make a big difference on your bottom line. Fixing an error inyour paycheck now gets you back on track before it becomes a huge hassle.
5. Shop for a tax professional early If you use a taxprofessional to help you strategize, plan and make financial decisionsthroughout the year, then search now. You'll have more time when you're not upagainst a deadline or anxious for your refund. Choose a tax professionalwisely. You are ultimately responsible for the accuracy of your own returnregardless of who prepares it. Find tips for choosing a preparer at www.irs.gov.
6. Prepare to itemize deductions If your expenses typicallyfall just below the amount to make itemizing advantageous, a bit of planning tobundle deductions into 2012 may pay off. An early or extra mortgage payment,pre-deadline property tax payments, planned donations or strategically paidmedical bills could equal some tax savings. See the Schedule A instructions forexpenses you can deduct if you're itemizing and then prepare an approach thatworks best for you.
7. Strategize tuition payments The American Opportunity TaxCredit, which offsets higher education expenses, is set to expire after 2012.It may be beneficial to pay 2013 tuition in 2012 to take full advantage of thistax credit, up to $2,500, before it expires. For more information, see IRSPublication 970, Tax Benefits for Education.
8. Keep up with changes Find out about tax law changes,helpful tips and IRS announcements all year by subscribing to IRS Tax Tipsthrough www.irs.govor IRS2Go, the mobile app from the IRS. The IRS issues tips regularly duringsummer and tax season. Special Edition tips are sent periodically with othertimely updates.
The IRS emphasizes that each household's financial circumstances aredifferent so it's important to fully consider your specific situation and goalsbefore making large financial decisions.
Please contact us if you have any questions. 801-269-1818
Links:
- IRS Withholding Calculator
- Publication 919, How Do I Adjust My Tax Withholding? (PDF)
- 2011 Form 1040 (Schedule A) (PDF)
- Publication 970, Tax Benefits for Education (PDF)
Don't Fall for Phony IRS Websites
To contact us Click HERE
The Internal Revenue Service is issuing a warning about a new tax scam thatuses a website that mimics the IRS e-Services online registration page.
The actual IRS e-Services page offers web-based products for tax preparersand payers, not the general public. The phony web page looks almost identical tothe real one.
The IRS gets many reports of fake websites like this. Criminals use thesesites to lure people into providing personal and financial information that maybe used to steal the victim’s money or identity.
The address of the official IRS website is www.irs.gov.Don’t be misled by sites claiming to be the IRS but ending in .com, .net, .orgor other designations instead of .gov.
If you find a suspicious website that claims to be the IRS, send the site’sURL by email to phishing@irs.gov. Use thesubject line, 'Suspicious website'.
Be aware that the IRS does not initiate contact with taxpayers by email torequest personal or financial information. This includes any type of electroniccommunication, such as text messages and social media channels.
If you get an unsolicited email that appears to be from the IRS, report itby sending it to phishing@irs.gov.
The IRS has information at www.irs.govthat can help you protect yourself from tax scams of all kinds. Search the siteusing the term “phishing.”
Links:
The Internal Revenue Service is issuing a warning about a new tax scam thatuses a website that mimics the IRS e-Services online registration page.
The actual IRS e-Services page offers web-based products for tax preparersand payers, not the general public. The phony web page looks almost identical tothe real one.
The IRS gets many reports of fake websites like this. Criminals use thesesites to lure people into providing personal and financial information that maybe used to steal the victim’s money or identity.
The address of the official IRS website is www.irs.gov.Don’t be misled by sites claiming to be the IRS but ending in .com, .net, .orgor other designations instead of .gov.
If you find a suspicious website that claims to be the IRS, send the site’sURL by email to phishing@irs.gov. Use thesubject line, 'Suspicious website'.
Be aware that the IRS does not initiate contact with taxpayers by email torequest personal or financial information. This includes any type of electroniccommunication, such as text messages and social media channels.
If you get an unsolicited email that appears to be from the IRS, report itby sending it to phishing@irs.gov.
The IRS has information at www.irs.govthat can help you protect yourself from tax scams of all kinds. Search the siteusing the term “phishing.”
Links:
- Suspicious e-Mails and Identity Theft
- Reporting Phishing
- Identity Theft resource page
- Publication 4523, Beware of Phishing Schemes (PDF)
- Phishing-Malware - English | Spanish | ASL
- Protect Yourself From Identity Theft - English | Spanish
Save Money with the Child Tax Credit
To contact us Click HERE
If you have a child under age 17, the Child Tax Credit may save you money attax-time. Here are some facts the IRS wants you to know about the credit.
2. Relationship test. The child must be yourson, daughter, stepchild, foster child, brother, sister, stepbrother, orstepsister. A child may also be a descendant of any of these individuals,including your grandchild, niece or nephew. You would always treat an adoptedchild as your own child. An adopted child includes a child lawfully placed withyou for legal adoption.
3. Support test. The child must not haveprovided more than half of their own support for the year.
4. Dependent test. You must claim the child as adependent on your federal tax return.
5. Joint return test. The child cannot file ajoint return for the year, unless the only reason they are filing is to claim arefund.
6. Citizenship test. The child must be a U.S.citizen, U.S. national or U.S. resident alien.
7. Residence test. In most cases, the child musthave lived with you for more than half of 2012.
If you have a child under age 17, the Child Tax Credit may save you money attax-time. Here are some facts the IRS wants you to know about the credit.
- Amount. The non-refundable Child Tax Credit may help reduce your federal income tax by up to $1,000 for each qualifying child you claim on your return.
- Qualifications. For this credit, a qualifying child must pass seven tests:
2. Relationship test. The child must be yourson, daughter, stepchild, foster child, brother, sister, stepbrother, orstepsister. A child may also be a descendant of any of these individuals,including your grandchild, niece or nephew. You would always treat an adoptedchild as your own child. An adopted child includes a child lawfully placed withyou for legal adoption.
3. Support test. The child must not haveprovided more than half of their own support for the year.
4. Dependent test. You must claim the child as adependent on your federal tax return.
5. Joint return test. The child cannot file ajoint return for the year, unless the only reason they are filing is to claim arefund.
6. Citizenship test. The child must be a U.S.citizen, U.S. national or U.S. resident alien.
7. Residence test. In most cases, the child musthave lived with you for more than half of 2012.
- Limitations. The Child Tax Credit is subject to income limitations, and may be reduced or eliminated depending on your filing status and income.
- Additional Child Tax Credit. If you qualify and get less than the full Child Tax Credit, you could receive a refund even if you owe no tax with the refundable Additional Child Tax Credit.
- Schedule 8812. If you qualify to claim the Child Tax Credit make sure to check whether you must complete and attach the new Schedule 8812, Child Tax Credit, with your return. If you qualify to claim the Additional Child Tax Credit, you must complete and attach Schedule 8812.
How You Can Get Prior Year Tax Information from the IRS
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The IRS offers several different ways to get tax return information or acopy of your own tax return for prior years. Here are options to help you getthe information you need.
The IRS offers several different ways to get tax return information or acopy of your own tax return for prior years. Here are options to help you getthe information you need.
- Tax Return Transcript. This shows most line items from your tax return as originally filed, along with any forms and schedules from your return. This transcript does not reflect any changes made to the return after you filed it. Tax return transcripts are free. After the IRS has processed a return, transcripts are available for the current tax year and the past three tax years.
- Tax Account Transcript. This shows any adjustments made by you or the IRS after filing your return. This transcript shows basic data, like marital status, type of return filed, adjusted gross income and taxable income. Tax account transcripts are free, and are available after the IRS has processed the return for the current tax year and the past three tax years.
- Order a Transcript. You can request both transcript types online, by phone or by mail. To place your order online, go to IRS.gov and use the “Order a Transcript” tool. Order a transcript by phone at 800-908-9946. A recorded message will guide you through the process. You can also request your tax return transcript by mail by completing Form 4506T-EZ. Use Form 4506T to mail a request for your tax account transcript. You can get both forms online at IRS.gov.
- Tax Return Copies. Actual copies of your tax returns are generally available for the current tax year and as far back as six years. The fee for each copy you order is $57. To request a copy of your tax return, complete Form 4506, available on IRS.gov. Mail your request to the IRS office listed on the form for your area.
- Delivery Times. The turnaround time for online and phone orders is typically 5 to 10 days from the time the IRS receives the request. Allow 30 calendar days for delivery of a tax account transcript if you order by mail using Form 4506T-EZ or Form 4506T, and allow 60 days when ordering actual copies of your tax return by mail.
- More Information. The IRS website can help you decide which form you need. Visit IRS.gov, or call the IRS forms and publications order line at 800-TAX-FORM (800-829-3676).
24 Şubat 2013 Pazar
Lost Your W2, or Didn't Receive Your W2, What to Do
To contact us Click HERE
If you misplaced your W2 or moved and didn't receive your W2, or your Employer mailed to the wrong address, here is what to do:
It’s a good idea to have all your tax documents together before preparing your 2012 tax return. You will need your W-2, Wage and Tax Statement, which employers should send by the end of January. Give it two weeks to arrive by mail.
If you have not received your W-2, follow these three steps:
1. Contact your employer first. Ask your employer – or former employer – to send your W-2 if it has not already been sent. Make sure your employer has your correct address. 2. Contact the IRS. After February 14, you may call the IRS at 800-829-1040 if you have not yet received your W-2. Be prepared to provide your name, address, Social Security number and phone number. You should also have the following information when you call: • Your employer’s name, address and phone number;• Your employment dates; and• An estimate of your wages and federal income tax withheld in 2012, based upon your final pay stub or leave-and-earnings statement, if available. 3. File your return on time. You should still file your tax return on or before April 15, 2013, even if you have not yet received your W-2. File Form 4852, Substitute for Form W-2, Wage and Tax Statement, in place of the W-2. Use the form to estimate your income and withholding taxes as accurately as possible. The IRS may delay processing your return while it verifies your information. If you need more time to file you can get a six-month extension of time. File Form 4868, Application for Automatic Extension of Time to File US Individual Income Tax Return. If you are requesting an extension, you must file this form on or before April 15, 2013.
If you receive the missing W-2 after filing your tax return and the information on the W-2 is different from what you reported using Form 4852, then you must correct your tax return. File Form 1040X, Amended U.S. Individual Income Tax Return to amend your tax return.
Forms and instructions are available at IRS.gov or by calling 800-TAX-FORM (800-829-3676).
Additional IRS Resources:
It’s a good idea to have all your tax documents together before preparing your 2012 tax return. You will need your W-2, Wage and Tax Statement, which employers should send by the end of January. Give it two weeks to arrive by mail.
If you have not received your W-2, follow these three steps:
1. Contact your employer first. Ask your employer – or former employer – to send your W-2 if it has not already been sent. Make sure your employer has your correct address. 2. Contact the IRS. After February 14, you may call the IRS at 800-829-1040 if you have not yet received your W-2. Be prepared to provide your name, address, Social Security number and phone number. You should also have the following information when you call: • Your employer’s name, address and phone number;• Your employment dates; and• An estimate of your wages and federal income tax withheld in 2012, based upon your final pay stub or leave-and-earnings statement, if available. 3. File your return on time. You should still file your tax return on or before April 15, 2013, even if you have not yet received your W-2. File Form 4852, Substitute for Form W-2, Wage and Tax Statement, in place of the W-2. Use the form to estimate your income and withholding taxes as accurately as possible. The IRS may delay processing your return while it verifies your information. If you need more time to file you can get a six-month extension of time. File Form 4868, Application for Automatic Extension of Time to File US Individual Income Tax Return. If you are requesting an extension, you must file this form on or before April 15, 2013.
If you receive the missing W-2 after filing your tax return and the information on the W-2 is different from what you reported using Form 4852, then you must correct your tax return. File Form 1040X, Amended U.S. Individual Income Tax Return to amend your tax return.
Forms and instructions are available at IRS.gov or by calling 800-TAX-FORM (800-829-3676).
Additional IRS Resources:
- Form 4852, Substitute for Form W-2, Wage and Tax Statement
- Form 1040X, Amended U.S. Individual Income Tax Return
IRS is Hiring?
To contact us Click HERE
Here is some news for recent Accounting grads and advanced bookkeepers who need a change. Or anyone with the necessary qualifications.-------------- Washington, D.C. (February 6, 2013)By Michael Cohn
The Internal Revenue Service is making progress in the management of its employees but faces continued challenges, according to a new report.
J. Russell Georgereleased Wednesday, by the Treasury Inspector General for Tax Administration, noted that since fiscal year 2002, TIGTA has designated human capital as one of the major management challenges facing the IRS. TIGTA reviewed the status of actions the IRS has taken in response to recommendations on human capital issues made by TIGTA in a series of audit reports issued since fiscal 2009. TIGTA also reviewed the status of the IRS’s implementation of the recommendations of an IRS-led task force.
TIGTA’s new report found that the IRS has made progress in addressing human capital issues. For example, the IRS developed an agency-wide recruitment strategy that should place it in a better position to identify and attract qualified candidates. IRS documentation shows that it has completed corrective actions for 78 percent of the 46 TIGTA recommendations and 91 percent of the 58 recommendations made by the IRS task force formed to address serious workforce issues.
Despite this progress, however, continued focus by IRS executive management on human capital is important because the IRS’s workforce has decreased by about 10,000 full-time equivalents in the last two fiscal years, the report noted. In addition, many of the IRS’s experienced leaders and employees will be eligible to retire in the next five years.
At the same time, significant Tax Code changes, such as those implementing the Patient Protection and Affordable Care Act, are on the horizon, and the IRS needs to make improvements to stop billions of dollars in fraudulent or improper tax refunds resulting from identity theft and erroneous claims for tax credits.
“The IRS’s continued focus is needed to provide reasonable assurance that the right people will be in the right place at the right time to provide taxpayers with top-quality service and to enforce the law with integrity and fairness to all,” said TIGTA Inspector General J. Russell George in a statement.
TIGTA made no recommendations in this report; however, key IRS management officials reviewed it prior to issuance.
In a related report issued last week, TIGTA found that the IRS is hiring new employees more quickly. While in June 2009, the IRS took more than five months to hire employees from outside the government, some of its divisions, like the Information Technology organization, are now close to meeting the federal government’s goal of 80 calendar days, TIGTA’s auditors found.
At the request of the IRS, TIGTA audited the actions taken by the IRS divisions to monitor and improve the efficiency of hiring new employees. Hiring quality employees quickly is important to the IRS, as it hires a large number of employees each year. For example, the IRS hired approximately 19,000 employees in fiscal year 2011.
TIGTA found that IRS divisions and the Human Capital Office have taken action to reduce hiring timelines, but need to continue to focus on keeping hiring timelines low and making additional improvements. For example, the Information Technology organization has cut the time it takes to hire new employees from 218 calendar days in November 2009 to an average of 90 calendar days at the end of March 2012. As a result, Information Technology is close to meeting the Office of Personnel Management 80-calendar-day hiring goal. Similarly, the Wage and Investment Division has taken action to reduce hiring timelines and is also close to meeting the hiring goal.
However, the Small Business/Self-Employed Division uses a hiring process that is based on bringing large groups of employees on board at the same time for training and orientation purposes. While this may result in efficient training and orientation programs for enforcement personnel, it can take up to 200 calendar days to hire employees, which results in not meeting the hiring goal.
TIGTA made several recommendations for improvement such as deactivating certificates with lists of job applicants that are not used, providing guidance to employment offices for selecting the correct certificates, and correcting computer report-writing programming to ensure the correct date was used in calculating hiring timelines. The IRS agreed with TIGTA’s recommendations and implemented corrective actions.
The Internal Revenue Service is making progress in the management of its employees but faces continued challenges, according to a new report.
J. Russell Georgereleased Wednesday, by the Treasury Inspector General for Tax Administration, noted that since fiscal year 2002, TIGTA has designated human capital as one of the major management challenges facing the IRS. TIGTA reviewed the status of actions the IRS has taken in response to recommendations on human capital issues made by TIGTA in a series of audit reports issued since fiscal 2009. TIGTA also reviewed the status of the IRS’s implementation of the recommendations of an IRS-led task force.
TIGTA’s new report found that the IRS has made progress in addressing human capital issues. For example, the IRS developed an agency-wide recruitment strategy that should place it in a better position to identify and attract qualified candidates. IRS documentation shows that it has completed corrective actions for 78 percent of the 46 TIGTA recommendations and 91 percent of the 58 recommendations made by the IRS task force formed to address serious workforce issues.
Despite this progress, however, continued focus by IRS executive management on human capital is important because the IRS’s workforce has decreased by about 10,000 full-time equivalents in the last two fiscal years, the report noted. In addition, many of the IRS’s experienced leaders and employees will be eligible to retire in the next five years.
At the same time, significant Tax Code changes, such as those implementing the Patient Protection and Affordable Care Act, are on the horizon, and the IRS needs to make improvements to stop billions of dollars in fraudulent or improper tax refunds resulting from identity theft and erroneous claims for tax credits.
“The IRS’s continued focus is needed to provide reasonable assurance that the right people will be in the right place at the right time to provide taxpayers with top-quality service and to enforce the law with integrity and fairness to all,” said TIGTA Inspector General J. Russell George in a statement.
TIGTA made no recommendations in this report; however, key IRS management officials reviewed it prior to issuance.
In a related report issued last week, TIGTA found that the IRS is hiring new employees more quickly. While in June 2009, the IRS took more than five months to hire employees from outside the government, some of its divisions, like the Information Technology organization, are now close to meeting the federal government’s goal of 80 calendar days, TIGTA’s auditors found.
At the request of the IRS, TIGTA audited the actions taken by the IRS divisions to monitor and improve the efficiency of hiring new employees. Hiring quality employees quickly is important to the IRS, as it hires a large number of employees each year. For example, the IRS hired approximately 19,000 employees in fiscal year 2011.
TIGTA found that IRS divisions and the Human Capital Office have taken action to reduce hiring timelines, but need to continue to focus on keeping hiring timelines low and making additional improvements. For example, the Information Technology organization has cut the time it takes to hire new employees from 218 calendar days in November 2009 to an average of 90 calendar days at the end of March 2012. As a result, Information Technology is close to meeting the Office of Personnel Management 80-calendar-day hiring goal. Similarly, the Wage and Investment Division has taken action to reduce hiring timelines and is also close to meeting the hiring goal.
However, the Small Business/Self-Employed Division uses a hiring process that is based on bringing large groups of employees on board at the same time for training and orientation purposes. While this may result in efficient training and orientation programs for enforcement personnel, it can take up to 200 calendar days to hire employees, which results in not meeting the hiring goal.
TIGTA made several recommendations for improvement such as deactivating certificates with lists of job applicants that are not used, providing guidance to employment offices for selecting the correct certificates, and correcting computer report-writing programming to ensure the correct date was used in calculating hiring timelines. The IRS agreed with TIGTA’s recommendations and implemented corrective actions.
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