www.1001TopWords.com |
Tax Trap #5 -- Ignoring The IRS (and the 5 best ways to contact them!)
We all love to criticize the IRS, don't we? And I'mjust as guilty as anyone. It's easy to ridicule a hugeorganization of government bureaucrats who often seemto be Public Enemy #1. Our negative attitude toward the IRS can lead to astrong desire to just ignore it altogether. Butself-employed people who ignore the IRS do so at theirown peril. So when it comes to providing free information abouttaxes, let's not throw the baby out with the bath water.The IRS does provide some excellent resources to helpus make the best of a potentially bad situation. If you need tax assistance and prefer not to pay for it,do not overlook these five ways to obtain help from the IRS: 1. The Internet http://www.irs.gov There's a wealth of information just for small businessowners and self-employed people at:http://www.irs.gov/smallbiz Here you'll find everything from how to obtain a federalbusiness tax ID to a free 6-session streaming videopresentation of the "IRS Small Business Workshop."Also known as the Small Business Self-Employed OnlineClassroom, you can access this directly at:www.irs.gov/businesses/small/article/0,,id=97726,00.html If you prefer to attend an IRS small business workshop inperson, check here to see what's available in your state:www.irs.gov/businesses/small/article/0,,id=99202,00.html Need tax forms and/or their instructions?Look no further than the IRS website:http://www.irs.gov/formspubs/index.html Here you'll find a boatload of links to every tax formimaginable, available as downloadable PDF files orin fill-in format. All form instructions can also bedownloaded. http://www.irs.gov/formspubs/lists/0,,id=97817,00.html The IRS has many free publications that explain virtuallyevery major (and many minor) tax topics in great detail.Sure, IRS "pubs" are not always written in the mostentertaining style, but, hey, remember the price.http://www.irs.gov/formspubs/lists/0,,id=97819,00.html 2. Telephone Hotlines. Special toll-free numbers exist for the following: -- To order forms & pubs: 800-829-3676(in case you'd like to receive a paper copy via snail-mail) -- To ask business tax questions: 800-829-4933 -- To ask personal tax questions: 800-829-1040Use common sense when phoning the IRS: to avoid longwait times, don't call on Monday morning. And no matterwhen you call, be prepared! Write out your questionsbeforehand and have all relevant documentation in frontof you, as well as a favorite book or magazine to readduring the inevitable wait time. Stay calm; don't yell;treat the IRS employee like a human being and he/shewill likely return the favor. -- Need help with long-standing problems: 877-777-4778 -- Prerecorded messages on 140 topics: 800-829-4477 3. TaxFax Service. You can receive most IRS forms instructions via faxby calling 703-368-9694 from your fax machine. 4. CD-ROM for Small Business. This is known as "The Small Business Resource GuideCD-ROM", aka Publication 3207. It includes all thetax forms and publications needed to run a smallbusiness. Call 800-829-3676 to request a free copy. 5. Walk-In Offices. Need some face-to-face tax help? For a completelist of IRS offices in all 50 states, includinghours of operation and contact info, check out:http://www.irs.gov/localcontacts Wayne M. Davies is author of 3 tax-slashing eBooks forthe self-employed, available separately or as a 3-volumeset, "The Ultimate Small Business Tax Reduction Guide".http://www.YouSaveOnTaxes.com/ultimate-guide To get your free copy of Wayne's 25-page report,"How To Instantly Double Your Deductions" visit:http://www.YouSaveOnTaxes.com
|
RELATED ARTICLES
Small Businesses: Company Car Vs. Personal Mileage Reimbursement In Hurricane Katrinas Wake With gas prices at an all time high before Hurricane Katrina left her mark on our nation, most Americans were hoping that gas prices would settle down once summer passed. But gas prices have jumped as much as 80 cents a gallon across the country once Hurricane Katrina destroyed the Gulf Coast and impacted all of our lives. Small Businesses Filing Amended Federal Tax Returns to Recover Money Small Businesses Filing Amended Federal Tax Returns to Recover MoneyBy Darren Oliver April 15th may be gone but, but certainly not forgotten ? especially if you, like millions of small businesses, unknowingly overpaid your federal taxes and can recover money by filing an amended return. According to the IRS tax code, you have three years from the filing date for the tax year in question to file an amended return. For example, if returns for the 2003 tax year were filed on March 1, 2004, the taxpayer has until March 1, 2007 to file an amended return. This same rule also applies if the taxpayer feels they have made errors resulting in a balance. Most business owners either prepare their business taxes themselves or have a tax preparer or accountant do them. With either method, the tax liability can be calculated as higher than it actually is because of missed deductions, unrecognized changes in tax laws or just plain being given bad advice. There are a number of applicable deductions which many tax preparers often miss from home office deductions to self-employed health insurance to personal assets converted to business use. Although some deductions may seem minor, over an entire year, they can add up to thousands of dollars. Another area, which causes many businesses to overpay, is being given incorrect advice by their tax preparer or even the IRS directly. In a poll performed by Money Magazine, the average tax preparer produces an average of 480 returns between February 1 and April 15, making it difficult for each return to get the time and attention it deserves. This same poll also found there was an average discrepancy of 300% between what the tax preparers said was due and what was actually due. Furthermore, in the IRS's 2001 assessment of their own call centers, they found that 50% of the time, their representatives gave incorrect or insufficient advice. Whether a business owner does their taxes themselves and had to call the IRS for clarification on an issue or a CPA did, odds are the answer was not correct. The United States tax law is one of the most complex in the world. Not to mention, tax laws change every year and have changed tremendously in the last couple of years. Even the best tax preparer, CPA or even IRS representative can, like all humans do, easily make a mistake. In 2002 alone, 3.3 million taxpayers filed an amended return. Samuel Rowley, owner of Muffler Masters in Colorado, was able to recover $14,500 through the filing of an amended return when it was found that he overpaid FICA and payroll taxes. Another small business owner, Karen McClafflin, owner of home-based Secret Canyon Realty, was able to recover $11,000 when her tax preparer failed to include home office and automobile deductions in her past returns. Why is it that when faced with a life-threatening surgery a second opinion is immediately sought after but, when trusting thousands or millions of dollars to an individual or entity, it's done without question? Businesses must get a second opinion, whether it is done before or after the return is filed, to ensure they are not overpaying or simply to ensure their returns are accurate in all aspects. If not, they could be leaving thousands of dollars on the table. What Is Tax Law? The federal tax code is complex. This complexity generally arises from two factors: the use of the tax code for purposes other than raising revenue, and the feedback process of amending the code. Uncle Sam is Ready...Are You? Organizing Tips for Tax Time Anyone who is closely related to an accountant knows that there are not four, but five seasons in a year: Spring, Summer, Fall, Winter, and 'Tax Season.' During the other seasons, we accumulate leaves, snow, and mosquito bites. During 'Tax Season' we accumulate paper. And more paper. And if you have a small business or investments--even more paper. Requirements To Produce Tax Information (Whats Up With That?) "What we've got here is a failure to communicate." --Strother Martin in Cool Hand Luke The Internet Tax Man Cometh Q: I was contacted by the city tax collector to say that my business is scheduled to be audited to see if I owe sales tax on items purchased on the Internet. Can they really make me pay sales tax on internet purchase? I thought you could buy things online tax free? -- Charlie B. 2005 Ford Escape Hybrid Certified For Clean-Fuel Deduction If you are environmentally conscious and purchase a 2005 Ford Escape Hybrid vehicle that combines a gasoline-powered engine with alternative power methods, you are in line for a nice tax deduction. Rearrange Your Affairs For Maximum Tax Savings One way to maximize your business profits is by reducing your taxes.Frequently, income and other taxes could be lowered significantly if only the taxpayer were willing to plan ahead. By taking some simple steps to rearrange your affairs, you could save a fortune! Tips and Simple Guidelines on How to Calculate Payroll Taxes Managing a business small, medium or big requires you to pay your taxes, as well as your employees taxes. Managing a payroll can be an arduous and taxing job, no pun intended. There are laws that require us to pay taxes and everyone have to comply with that. But keeping up with the payroll can give many people sleepless nights. There are so many deductions needed to be done and they have to be exact to avoid confusion and complications later on. State and federal taxes are very strict and you don't want the IRS pounding on your door because of some mistakes. Make sure that you do your calculations correctly to avoid a mess later on. Keep your payroll records and tax payments as your reference so you have proof of the deductions and payments you have done. Different states have different laws about records; check it out with your lawyer or accountant to make sure. IRS Certifies 2006 Toyota Hybrid for Clean Fuel Deduction The Internal Revenue Service has certified the 2006 Toyota Highlander Hybrid as being eligible for the clean-burning fuel deduction. This certification means that taxpayers who purchase one of these hybrid vehicles new during calendar year 2005 may claim a tax deduction of up to $2000 on Form 1040. What to Do If You Can?t Pay Your Taxes The end of tax filing extensions is quickly approaching. What do you do if you can't pay the amounts you owe? You should still file your return by the due date and pay as much as you can. There are, however, additional steps that might help. Tax Secrets - How Drew Miles Helped Me How about a Tax Tip? State Tax Information All states also have their own tax system. Typically there is a tax on real estate, and there may be additional income taxes, sales taxes, and excise taxes. Oil and mineral producing states often have a severance tax, which is similar to an excise tax in that tax is paid on products produced, rather than on sales. Taxes on hotel rooms are common, and politically popular because the taxpayers usually do not vote in the jurisdiction levying the tax. 10 Thoughts on Tax Offer in Compromise Beware of advertisements that claim to settle tax debts for "pennies on the dollar". Check the Offer In Compromise requirements to see if it is right for you. Tax Investigation - What You Need To Do The knock on the door from a Tax Inspector is something that every taxpayer fears. Your immediate thoughts will be "Have I been honest with my tax returns or not". So what do you do? First, don't panic. Second, sit down and work out your next steps so you can win any tax investigation. IRS Reports Tax Gap of $300 Billion The Internal Revenue Service is reporting that the difference between what U.S. taxpayers owe and actually pay on time totals more than $300 billion a year. Studying over 46,000 tax returns for individuals revealed the tax gap. These results indicate a failure of 15 to 16 percent of individual tax payers to fully pay their taxes. IRS enforcement activities recovered roughly $55 billion of that total gap, leaving a net tax gap of $257 billion to $298 billion. Small Business Tax Deductions for Year End 2004 As a small business owner, it's wise to familiarize yourself with some key deductions that may reduce your tax bill for 2004. History Of The Federal Income Tax The powers of Congress, and the limitations set upon those powers, are set forth in Article I of the United States Constitution. Section 8 specifies both the power to collect, "Taxes, Duties, Imposts and Excises," and the requirement that, "Duties, Imposts and Excises shall be uniform throughout the United States." How To Get An Extension To File Your Business Tax Returns Yes, the tax season is upon with the first filing date for some businesses being March 15, 2005. If you can't imagine getting your tax returns together by that date, you need not worry. The IRS automatically gives you an extension if your file the appropriate form. As you might expect, there are different forms for different businesses. Paying Workers ? What Can You Write-Off? As your business grows, you are going to need help. This help comes in the form of employees and independent contractors. What you can write-off is dependent upon how your helper is classified ? as an employee or independent contractor. |
© Athifea Distribution LLC - 2013 |