The Right to Quality Service
As a taxpayer you have the right to receive prompt, courteous, and professional assistance when deal with the IRS.
The Right to Retain Representation
As a taxpayer, you have the right to hire an authorized representative to deal with the IRS on your behalf. If you can’t afford an attorney or similar agent you may be eligible for free assistance. Read more
How to Prepare for a Small Business Audit
Nobody wants to get that letter in the mail ― the one marked with those three big letters, “I-R-S,” announcing that your financial history is being reviewed by the federal government. Dealing with the IRS in any extended fashion can be a nerve-racking prospect, especially when you know they’ll be auditing your very livelihood. Read more
The Right to a Fair and Just Tax System
Taxpayers have the right to experience a fair and just taxation system. They can expect that the taxing agency will consider their personal circumstances when determining liabilities and their ability to repay the government. Also, what is its capacity to provide timely information and what factors could hinder this ability? As a taxpayer, if you feel this right is not being met there is an independent agency inside the IRS known as the Taxpayer Advocate Service. This organization’s purpose is to aid taxpayers who are having difficulties are who have not received timely responses for the IRS. There are similar agencies in most states to assist with local tax matters as well. Read more
The IRS Holiday Grace Period Has Ended (With a Vengeance)
The holidays are meant to be a time of peace and reflection, and even the Internal Revenue Service agrees with that. From the last week of December through the first week in January, the IRS takes a break from sending any new levies and garnishments so taxpayers can provide for their families and enjoy their company during this already-stressful season. Read more
Driving without your license in Maryland?
As some taxpayers know, if you owe back taxes to the State of Maryland, they can take your license away. I have had clients come in and say the people at the DMV took or cut up their license when they went in to renew it. As that is embarrassing, it is nothing compared to getting caught with a suspended driver’s license due to taxes. Read more
Save Yourself Some Time and Aggravation
In my practice, I offer a free consultation to taxpayers who owe ten thousand dollars or more to the IRS or the State. Usually the only documentation I require a prospective client bring is their government issued ID and their Social Security card. Most taxpayers come in and they have their driver’s license with them; but a great many come in and say “I lost my Social Security card.” The next step in the process is telling my new client they will need a Social Security card on file with my office. It is a requirement that I verify the identity of all new customers. Secondly, I like to see how government agencies “know them.” Is it John P. Smith vs. John Paul Smith Jr.? Correctly identifying is imperative in taxes and tax resolution work. I then give then give my new client form SS-5 which is an application for a Social Security card.
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Don’t Default on Your Plan!
As a Maryland tax resolution attorney, I feel it is my duty to inform the taxpaying community about some of the basic taxing rules and principles. One very important concept that many taxpayers who have repayment programs don’t understand is how to not default. This is very important because the costs associated with defaulting a plan are high. Read more
Donations: What Are They Really Worth?
If you are like many Americans, you like to try and itemize deductions on your federal tax return. If you do not use the standard deductions, you may be entitled to claim a deduction for charitable donations you made throughout the year. My first tip is to make sure you take a picture of the items you donated as well as keep a list of the items donated. The more organized you can be about your donations, the better. The organization can include a list of items, the organization donated to, date of donation, and amount you will be claiming. Remember that all donations over $500 dollars require a receipt so make sure you ask for it ON THE DAY OF YOUR DONATION!
How much can you deduct?
The IRS says that a taxpayer can deduct the fair market value (FMV) of the items they donated. The FMV is most likely not the amount you originally paid when you purchased the donated item. Rather, the FMV is more closely related to the value of the item at the time it was donated. Take into consideration the wear and tear of the item, age, quality, and how much the donation is worth to that particular agency when factoring its FMV. Donations are usually in the form of household goods, furniture, clothing, appliances, etc. You may need to consult with a tax professional to help you arrive at a proper valuation. Some sources estimate the FMV to be around 30% of the items original value.
What records do I need to keep?
In order to back up what you have put on the tax return(s) it is important to keep good records. To help substantiate your donations and their valuations your record keeping is key. S.H. Block Tax Services, Inc. suggests that clients keep detailed lists of their donations and hold onto those records for five years or as long as they may be required.
Please keep a list of the following in your records
- Eligible organization name(s)
- Date of donation
- Description of items donated
- Your FMV estimate
- Date and cost of original purchase of donated item
- Any other pertinent information relating to the donation
As always, my advice is if you are unsure about this or any other tax deductions or credits, it is in your best interest to consult with a reputable tax professional.
Helpful Links:
http://www.amazinggoodwill.com/hubfs/docs/Donation_Value_Guide_-100115.pdf
https://satruck.org/Home/DonationValueGuide
https://www.irs.gov/pub/irs-pdf/f8283.pdf
Meet the IRS’s New Streamline Program
On September 21st, 2016, the IRS officially announced their new streamline program. This new pilot program is available to taxpayers who owe between $50,000 and $100,000. This new plan means a possibility of longer terms, less documentation, lower monthly payments, and extended periods for the statute of limitations to run its course. Read more
