Tax Resources Archives - Page 22 of 23

My home was foreclosed/modified/etc and now I owe the IRS

November 12, 2015/in Tax Resources /by S.H. Block Tax Services

I received a 1099-C: what is this?

In the last ten years Americans have had a tough time between lack of employment and the credit crunch, many of us were hit hard. Citizens caught in subprime mortgages that they could no longer afford and were unable to refinance due to home price or new credit restrictions. Good credit individuals woke up to find their lines of credit slashed. Regularly employed people were slowly pushed out of the work force. Millions of good honest people fell on hard times.

What does this mean for taxes? Read more

Should I represent myself in an Audit with the IRS?

November 5, 2015/in Tax Resources /by S.H. Block Tax Services

What is an audit?

*1 As defined by the IRS: An IRS audit is a review/examination of an organization’s or individual’s accounts and financial information to ensure information is being reported correctly, according to the tax laws, to verify the amount of tax reported is substantially correct.

What are your rights as a taxpayer? Read more

It’s been 8 months and my tax returns won’t post!

November 3, 2015/in Tax Resources /by S.H. Block Tax Services

In our training for tax resolution we have always been told that tax returns usually take 4-6 weeks to post. Today I was shocked when a representative from Taxpayer Advocates alerted me that tax returns are taking up to a YEAR to post! The reason given was they are very busy this time of year. How can this be? Why does IRS not hire more people? The simplest answer: Because they can’t. The IRS agency has had extreme financial cutbacks; their workforce is dwindling, their funds are stretched, and their training seems to be subpar.

Why is this important? Read more

How do I get Innocent Spouse Relief from my joint tax returns?

October 8, 2015/in Tax Resources /by S.H. Block Tax Services

The IRS has recently made updates to its Innocent Spouse rules. Now more taxpayers will be considered to receive Innocent Spouse Relief from their joint tax returns. When a married couple files a joint tax return they are both responsible for all taxes. In some instances one of the partners misrepresents their tax situation. This misrepresentation causes a tax debt for both parties. The debt could have occurred due to not reporting income, misrepresentation of key facts, under reporting, or under paying. Often time’s finances and marriage are difficult. For whatever reason one spouse neglects to inform the other about tax debt, and now the innocent party is on the hook. Well that’s not always the case. There is help out there. If there was a misrepresentation on your joint tax return that you were unaware of, you may be eligible for relief through an Innocent Spouse Program. Read more

Why Is It Important to Keep Receipts?

September 29, 2015/in Tax Resources /by S.H. Block Tax Services

All businesses need to keep records. To be successful, you need to have a business plan or model, appropriate business type, appropriate accounting method, a good bookkeeper, and the ability to use all this information to your advantage. Part of this process includes the retention of receipts.

Recordkeeping Is Essential to Your Business Read more

What are IRS transcripts and what do they do?

September 22, 2015/in Tax Resources /by S.H. Block Tax Services

Transcripts are like your secret file with the IRS. They show us what the IRS knows about you. There are three basic steps to IRS Resolution. The first is Power of Attorney & Investigation. The second is preparing all necessary returns. The third step is Resolution. Transcripts play a very important part in the first step, investigating a taxpayer’s case. Below is some information about IRS transcripts.

What do they include? Read more

Is your information and identity safe from hackers?

September 15, 2015/in Tax Resources /by S.H. Block Tax Services

The horrible epidemic of identity theft is running rampant in the US. Experienced hackers make their way into a database and quickly steal your information. Everyone from small doctor’s offices to large corporations like Target and Home Depot have been hacked. Well, these “hackers” have made headlines again. This time, they broke into the IRS’ website to obtain taxpayers transcripts. This most recent occurrence is estimated to have impacted 100,000 taxpayers and their private data. Read more

Is Two Hours A Long Hold Time with The IRS?

September 8, 2015/in Tax Resources /by S.H. Block Tax Services

In our office we have become accustomed to the long hold times at the IRS. It is no surprise when a taxpayer walks in and wants to know, why they have to wait two hours on the phone. We are not shocked when refunds and processing are late. Why? Because it has become the norm with the Internal Revenue. We ourselves as tax professionals still have to wait on hold, sometimes for hours. Only to be hung up on while waiting in the cue. Read more

Tax Controversy Common Misconceptions

September 3, 2015/in Tax Resources /by S.H. Block Tax Services

If I haven’t filed in years and the IRS did nothing, I’m flying under the radar!

The worst thing you can do is assume the IRS is clueless about your non filing status and your income. There is a complete history sent from employers, mortgage companies, and other financial institutions. The IRS knows way more than you may be giving them credit for. Just because you are not in jail at the moment doesn’t mean you slipped through the cracks. Read more

What is the new offer in compromise?

September 2, 2015/in Tax Resources /by S.H. Block Tax Services

An offer in compromise is an agreement between a taxpayer and the IRS. The agreement settles the taxpayer’s liabilities for less than the full amount owed. An OIC is generally not accepted if the IRS believes the debt can be paid in full or in instalments. The IRS will look at your income and assets and decide your “reasonable collection potential.” To come up with this figure the IRS takes your assets and also ability to pay in the future. The combined figure creates what they call “Reasonable Collection Potential”(RCP).

There have been a lot of changes in the last few years. Now under the new Fresh Start Program when the IRS calculates RCP, they must follow new guidelines. Read more