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Late Information Return Penalties

Late Information Return Penalties

The IRS expects taxpayers to obey its rules and that means submitting everything by their set deadlines. Most of the time, the penalties assessed for not doing this would be based on the resulting amount of taxes owed.

Late Information Return Penalties

What if the only thing that hasn’t been submitted on time is information that is related to others’ tax returns such as W2 information from employers or 1099 information for contractors’ payments? There is also a penalty for that, however, it is not based on any tax owed. It is based on how late the information is submitted. The maximum penalty for these forms is $50. It is important that you understand that these forms must be electronically filed. While filing on paper is sometimes a preferred method for the person doing the filing, the IRS will consider a paper filing a non-filing and penalties will still be assessed until the recognized filing method (electronic filing) is completed.

If you file partnership returns or S corporation returns late, this may result in a penalty of $195 per month, per partner until the electronic filing is complete.

It can be easy to forget about penalties for late filings of returns or information if there is no tax debt as a result. However, the IRS may assess a penalty for late filings regardless of how much tax is owed, even if no tax is owed. It’s quite important to take the deadlines the IRS provides seriously to avoid unnecessary penalties.

Need Help?

If you do find yourself in a situation where you have missed a deadline to file information returns, get help. There are three popular tax professionals that people most readily turn to: a tax attorney, a CPA and an Enrolled Agent.

Pros and cons for each tax professional:

Tax Attorney: A tax attorney will best serve someone in need of tax resolution if that resolution requires representation in court. The majority of a tax attorney’s education is spent in general law and courtroom procedures with a possible focus in tax law later on. If you have committed fraud or find yourself facing a judge for any other reason, a tax attorney will be your best option.

CPA: CPA stands for Certified Public Accountant. Their focus is usually in different kinds of accounting and bookkeeping. They’re well known for how great they can be with numbers. If you need someone to handle your books or do a special type of accounting for you, a CPA will be your best option.

Enrolled Agent: Enrolled Agents’ focus is on tax code and tax representation. They are the only tax professional that is regulated by the IRS. They are recognized with this elite title only after a comprehensive three-part exam covering tax law and representation has been passed, or they have been employed by the IRS for five years. An Enrolled Agent must exhibit extensive knowledge of current and past tax law in order to maintain this title. An Enrolled Agent is on your side and represents you for the IRS in order to balance the playing field. An Enrolled Agent can speak the language of the IRS and is familiar with their procedures and agendas. This gives the Enrolled Agent’s client confidence in knowing that they will be able to achieve the best possible results that they qualify for.

Who To Call

IRS Tax Relief Now has Enrolled Agents with over 30 years experience ready to represent you. Our experience allows us to quickly identify the fastest and most efficient way to resolve your tax issue, whether you’re filing late information or you have other tax issues.

We provide a free evaluation of your tax issue and express the right path for you to take in order to achieve the most favorable results quickly. This is not a standard “free consultation” in which you will be presented with a sales pitch. This is a real evaluation with free information and a plan of action for you to take with no obligation to hire our firm whatsoever.…

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General Article

Hiring a Tax Lawyer – What You Need to Consider

Hiring a Tax Lawyer – What You Need to Consider

Oftentimes, people don’t really consider hiring a tax lawyer. But when you unexpectedly receive a letter from the IRS saying that you owe the government some money, what are you going to do?

Well, you have two options: ignore it or pay the amount specified in the letter. The first option will just lead to more problems so it seems that your best option is to pay. But are you just going to pay it without even looking closely into the problem?

Almost all businesses, big or small, have encountered such a situation. But being in business, most of these people and organizations know exactly what to do. They are not just going to give up without a fight, so they hire tax attorneys to help them sort out what needs to be paid and what tax bills ought to be disregarded. If you have a good lawyer, he will be able to help you walk the tightrope and not fall into the abyss, so to speak.

First Things First

Before you hire a tax lawyer, you need to ask yourself if you really need one. Obviously, only you can answer this question since you know your actual situation. If you are required to pay only a small amount of money, then you can forego the attorney services. It would, however, be good to seek the advice of an attorney in regards to how you can avoid this situation from happening again in the future. He may not even charge you for this small consultation.

However, if the tax problem is complicated and too technical for you to handle, this is the time that hiring a tax lawyer would be appropriate. There are other scenarios where hiring a tax lawyer will be important such as if you are being investigated by the IRS or if you want to sue them for making a mistake on your tax bill.

How to Find the Right Tax Attorney

In selecting the right attorney to represent you, you should choose one that you are comfortable dealing with. You should be able to relate to him professionally and in a friendly way, too.

The things that you need to be definite about your attorney are his credentials and his experience. He should be able to provide you proof for the following:

• His law degree, preferably an advanced degree in taxation

• His license to practice his profession in whichever state he is allowed to practice

• His tax specialties

• His professional fees

It would also be good if the attorney is also a CPA, though it’s not really a requirement. His background in CPA will be of great help if your tax problems involve accounting matters, but be prepared to pay higher fees for this type of attorney.

A good thing to always remember when hiring someone is to not be easily impressed with credentials. Focus on his work achievements because that will show if he has used his credentials effectively in his profession.

It would also be good if you could ask around for recommendations. Your friends and relatives might know of a good attorney who has helped them out of their tax issues with the IRS. Hiring a tax lawyer this way will enable you to find one who can really help you with your tax problems.…

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Litigation

Tips On Managing Your Finances

Properly managing your finances is something that is not taught in many schools. However, it is something that is very important in our lives in order to stay out of trouble financially as adults. If you are looking to better manage your finances, below is a list of personal money management tips to help you in your efforts to maintain personal fiscal responsibility:
1. Save: You should start saving as early as possible. Take a small amount of your paycheck each month and transfer it to a savings account. In no time, you will start to see the account grow. The account can be used as an emergency fund or a rainy day fund.
2. Create a Budget: It is important to establish a reasonable household budget and stick to it. It is essential to make a list of your monthly expenses such as mortgage, any loans, food, fuel, utilities, entertainment, etc, so that you can allocate funds in a way that you are spending less than you are bringing in to the home. Once you know how much you have to spend for each item, you can then look for ways to reduce costs such as discount shopping, carpool to work, etc.
3. Protect Yourself By Having Enough Insurance: You should have insurance coverage which includes: medical insurance, life insurance, car insurance, home insurance, and dental/eye insurance. You never know when there will be an emergency that could result in high bills. Having insurance will ensure protection and give you peace of mind.
4. Always Pay Your Bills On Time And In Full: If you do not pay your bills on time, costs can quickly add up and you will find yourself in deep debt, particularly with credit cards. If you do not trust yourself with a credit card just keep it on hand for emergencies.
5. Maintain Financial Records: There are credit counselling agencies or debt management agencies that can help you create a budget and create a monthly bookkeeping program. There is even accounting software that is very easy to use. Most accounting software programs allow you to track bank account balances, spending, monthly expenses, etc.
6. Stay Away From High Interest Payday Loans: There are so many payday loan companies available today advertising their business that can be very tempting to get one when funds are low. However, the interest rates are enormous which often makes it difficult to repay in full. In a short time period, one can find themselves in serious debt. If you are in way over your head with credit cards bills and loans such as payday loans, consider debt consolidation through a debt management agency or credit counselling agency.
The best defense against overwhelming debt is properly managing your money. From saving to budgeting, there are effective ways to maintain your finances. Learning how to manage your finances is not only essential to preventing debt, but also getting out of debt. In today’s economy, it makes sense to make your money work for you.…

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General Article

Income Tax Attorney – Helping People With Their Taxes

Income Tax Attorney – Helping People With Their Taxes

What is worse than having to deal with taxes each year? The answer is getting into trouble with the Internal Revenue Service, commonly known as the IRS. What is the best solution to this problem? Save yourself from issues and tax woes and get a good income tax attorney. There is no way to get away from filing a tax return, but you can always avoid tax disputes and problems.

The taxation system can be quite complex. If you try to handle problems by yourself, you might get into more trouble than what it was when it started. You need an income tax attorney who knows more about the system than you do. They can give an explanation about the errors in your tax return and form a strategy on how to best resolve the issue. A good attorney can advise you on any tax matters, be it in personal income tax, corporate tax, property tax, and even bankruptcy. So the next question is, how do you look for a good income tax attorney?

As with any professional, you hire someone with knowledge and experience. Choose one who knows about the laws and the federal tax system. They should be able to explain them to you in terms that you can understand, so you could get a good grasp of the issue at hand. They should also know about how the IRS works and protect you from being abused, intimidated, or just overwhelmed by the complexity of it all. A qualified attorney with experience can point out miscalculations or inconsistencies by the IRS. This can result in preventing you from overcompensating for your liability. They can file the amended tax return and make sure that it will pass without further scrutiny.

Leave it to a tax attorney who specializes in income tax to do what they can to resolve your tax issues and disputes. No matter how simple the problem may seem, it is best to seek advice and consult with a good attorney. When dealing with the IRS, you have to present a solid case, without errors, loopholes, or weaknesses as much as possible. It is preferable to get a tax attorney involved right away to sort out the issue. Allow the experts to present your case and communicate properly with the IRS. It would be such a relief to get out of the complications, not to mention the stress, as early as possible.…

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General Article

Having Tax Liens Put On Your Assets Increases Your Risk of Bankruptcy

Having Tax Liens Put On Your Assets Increases Your Risk of Bankruptcy

The start of a New Year brings a clean slate but for some, but it can also bring new debt. When you file your income taxes you may end up owing the government money. If it’s more than you expected you may not have the money available to pay the debt. If you have tax debt that isn’t paid it can lead to a tax lien being put on your assets.

Tax liens can also happen if you go through an IRS audit. During an audit your tax history will be reviewed for the past 10 years. An audit is random but can also happen if there is some discrepancy with your filing history. If you don’t pay the taxes you owe each year and your tax debt builds then you are likely to get a tax lien.

A tax lien is an issue because you cannot sell or refinance your assets until the debt is paid off. You can sell your house and then pay off your tax debt at closing but it can complicate the selling process.

For some, bankruptcy may seem like the only solution to escape tax debts. Although it is possible to have tax debt discharged it requires special approval and it is not guaranteed. Student loans and back taxes are not always discharged through bankruptcy.

If you were to face foreclosure on a home with a tax lien your house would be sold and the income from the sale would go towards paying down your debts. If the profit does not cover you tax debt and your mortgage this can leave you responsible for the mortgage debt.

Once, famous performer Willie Nelson owed back taxes due to negligence on the part of his accountant who was not paying the necessary income taxes. Nelson’s assets had liens up on them and he opted to put the assets up for auction and used the money raised to pay off the tax debt.

Nelson’s tax issues were solved by creating a new album. The earnings from this album were enough to pay the back taxes and the liens were removed. Unfortunately the average person does not have this option available to them.

If you believe you may have a tax debt issue it is important to talk to tax lawyers as soon as possible. They can help you navigate the legal aspect of tax debts and they will work with you to create the best possible solution for your situation.…

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Law Firms

Claiming Compensation for Work Related Back Pain

Work related back pain is the principle cause of absenteeism among employees in the UK. The latest figures reported by the NHS show that 9.3 million working days were lost due to back pain and related musculoskeletal disorders in 2008/09, costing the economy in excess of A�5 billion a year. Most back problems affect the lower back, and are normally caused by strained or sprained muscles, tendons and ligaments. Very few of these types of injuries are likely to result in long-term medical conditions, though back pain does tend to recur, and disproportionately affects older workers whose bodies have been subjected to prolonged wear and tear. Even workers suffering from seemingly serious conditions such as slipped discs and trapped nerves usually make a full recovery within a relatively short space of time. Most back pain is avoidable however, and employers have a legal responsibility to take all reasonable measures to prevent workers from developing back injuries in the workplace.
Work related back pain can affect workers in any sector. Certain industries have a particularly high incidence, including agriculture, construction, transport and health (especially nursing). A recent survey of registered nurses found that 84% had suffered back pain during their careers which had caused restricted movement and adversely affected their job performance. Those in essentially sedentary occupations such as long-distance lorry drivers, and office workers spending most of their time in front of computers also face a far higher than average risk of developing back pain at work. Surveys show that work related back pain affects male and female workers in almost equal proportion.
The principle causes of work related back pain are lifting (manual handling) and poor posture. Lifting, pulling and pushing heavy or awkwardly shaped loads, especially on a regular basis, are common causes of back injury. Repetitive tasks such as bending, crouching, twisting and stretching may cause damage to the back over a period of time. Routine exposure to vibrations, operating a heavy duty drill or driving over rough terrain for example results in a similar effect, where the back is subjected to minor but constant strains. Posture also causes a variety of work related upper limb disorders and repetitive strain injuries, normally the result of poorly designed or adjusted work stations and office furniture. Other documented causes of back pain from work include working while physically tired and working under pressure in stressful conditions.
The fact that almost all types of back pain at work are preventable yet affect so many people has led to a raft of legislation which aims to minimise incidence rates. The Manual Handling Operations Regulations 1992 require employers to avoid hazardous manual handling tasks wherever possible by employing alternative working practices. The Control of Vibration at Work Regulations 2005 aims to limit the amount of vibrations which employees may be exposed to during the course of their work, while the Health and Safety (Display Screen Equipment) Regulations 1992 imposes strict ergonomic requirements for work station set up and design. Risk assessments are the most essential responsibility of employers in relation to back pain at work, as they should eliminate potentially dangerous activities when properly performed. Those suffering from work induced back injuries which have caused pain and suffering, loss of earnings or medical expenses should seek the advice of a specialist solicitor to see whether they may be entitled to claim compensation. Bartletts Solicitors have been defending workers and their rights since 1860, and have extensive experience with all types of work related back injury compensation claims.…

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Attorney At Law

How Is a Managed Investment Scheme Taxed?

A managed investment scheme or managed fund is a type of collective investment vehicle such as public unit trust. In such a trust, investors hand over money or other assets to a professional manager who manages the total funds to produce a return that is shared by investors. As members of the scheme, investors hold units in the trust that represent a proportional benefit as an entitlement to the trust assets. Managed investment schemes cover a variety of investments, including cash management trusts, property trusts and timeshare schemes. However, they do not encompass regulated superannuation funds, ADFs or term deposits. The commission considers that the property syndicate that is structured to comply with the managed investment scheme provisions of the Corporations Act 2001 (Cth) is taxable under the trust provisions of the income tax assessment legislation according to Taxation Determination TD 2005/28.
Managed investment schemes that are required to restructure to comply with the Managed Investments Act 1998 (Cth) giving income tax and capital gains tax relief from the consequences of the restructure. There are also special provisions in relation to corporate unit trusts. These entities, in relation to an income year qualify in this category as a public unit trust as part of an arrangement for the reorganisation of the company or company group. It may be that a business or other property of the company has been transferred to the entity and shareholders of the company involved in the reorganisation then received entitlements to take up units in the trust. A trust of this nature is a public unit trust under this purpose where any type of the units are listed or quotation on the stock exchange, the units are held by 50 or more persons, or any of the units are offered to the public. In this case, the managed investment scheme or corporate unit trust is taxed as a company. Obviously, this area of the law is extremely complicated and if you have any questions in relation to this part of the law you should seek advice from an appropriately qualified professional.…