IRS posts taxpayer “Bill of Rights”

What do you think of the new taxpayer Bill of Rights?

The IRS has issued a new “Taxpayer Bill of Rights” to highlight the agency’s commitment to providing quality service to taxpayers.

The IRS has lost more than $850 million in funding — about 7% — since 2010 and is finding it challenging to “properly serve taxpayers.” The IRS Commissioner John Koskinen said the 10-item Bill of Rights is intended as a “cornerstone document” to give taxpayers a better understanding of their rights.

Included in the ten rights are the right to be informed, to quality service, to pay no more than the correct amount of tax, to challenge the IRS’s position and be heard, to appeal an IRS decision, to finality, privacy, confidentiality, to retain representation, and to a fair and just tax system.

Get-Transcript

Get-Transcript

The IRS released  the Get Transcript app which will allows any taxpayer to view, print or download their own transcript.

 

Get a record of your past tax returns, also referred to as transcripts. IRS transcripts are often used to validate income and tax filing status for mortgage applications, student and small business loan applications, and during tax preparation.

 

You received a notice from the IRS. Now what do you do?

Nine Tips for Taxpayers Who Receive an IRS Notice

Receiving a notice from the Internal Revenue Service is no cause for alarm. Every year the IRS sends millions of letters and notices to taxpayers. In the event one shows up in your mailbox, here are eight things you should know.

1. Don’t panic. Many of these letters can be dealt with very simply.

2. There are a number of reasons the IRS sends notices to taxpayers. The notice may request payment of taxes, notify you of a change to your account or request additional information. The notice you receive normally covers a very specific issue about your account or tax return.

3. Each letter and notice offers specific instructions on what you need to do to satisfy the inquiry.

4. If you receive a notice about a correction to your tax return, you should review the correspondence and compare it with the information on your return.

5. If you agree with the correction to your account, usually no reply is necessary unless a payment is due.

6. If you do not agree with the correction the IRS made, it is important that you respond as requested. Respond to the IRS in writing to explain why you disagree. Include any documents and information you wish the IRS to consider, along with the bottom tear-off portion of the notice. Mail the information to the IRS address shown in the lower left corner of the notice. Allow at least 30 days for a response from the IRS.

7. Most correspondence can be handled without calling or visiting an IRS office. However, if you have questions, call the telephone number in the upper right corner of the notice. When you call, have a copy of your tax return and the correspondence available.

8. Keep copies of any correspondence with your tax records.

9. And most importantly, consult an Enrolled Agent (EA), the highest designation awarded by the US Department of the Treasury and America’s Tax Expert ©

 

Florida Society of Enrolled Agents Installs Jeffrey Schneider, EA as President Elect

Miami Lakes– On June 21, 2012 the FSEA held their annual Convention at Shulas Hotel and Golf Club. The convention provided Enrolled Agents and other tax professionals with the opportunity to network with each other, enhance their various skills and expand their knowledge on all things tax.

On Friday evening, June 22 the FSEA installed the new slate of officers for the coming  year and Jeffrey Schneider, EA was installed as President Elect.

The Florida Society of Enrolled Agents (FSEA) is the professional society representing Enrolled Agents (EAs) in Florida. Members are licensed by the U.S. Department of the Treasury to represent taxpayers before all administrative levels of the Internal Revenue Service (IRS), including examination, collection and appeals functions. For more information, please visit the website, http://www.FSEAonline.org. The Florida Society of Enrolled Agents is an affiliate of the National Association of Enrolled Agents (NAEA) and they encourage all tax practitioners to consider the benefits of joining.  The National Association of Enrolled Agents (NAEA) is a national association of independent, licensed tax professionals called Enrolled Agents (EA). The association is dedicated to helping its members maintain the highest level of knowledge, skills and professionalism in all areas of taxation, so that their members may most effectively represent the needs of their clients.

Jeffrey Schneider, EA heads the firm, SFS Tax, Accounting & College Planning Services and has offices in Royal Palm Beach and Port St Lucie, Florida. Jeffrey can be reached at info@sfstaxacct.com or 561 868-1868 in Palm Beach County or 772 337-1040 in St Lucie County. Please visit his website, http://www.sfstaxacct.com for more information about the company.

Failure to File or Pay Penalties: Eight Facts

The number of electronic filing and payment options increases every year, which helps reduce your burden and also improves the timeliness and accuracy of tax returns. When it comes to filing your tax return, however, the law provides that the IRS can assess a penalty if you fail to file, fail to pay or both.

Here are eight important points about the two different penalties you may face if you file or pay late.

1. If you do not file by the deadline, you might face a failure-to-file penalty. If you do not pay by the due date, you could face a failure-to-pay penalty.

2. The failure-to-file penalty is generally more than the failure-to-pay penalty. So if you cannot pay all the taxes you owe, you should still file your tax return on time and pay as much as you can, then explore other payment options. The IRS will work with you.

3. The penalty for filing late is usually 5 percent of the unpaid taxes for each month or part of a month that a return is late. This penalty will not exceed 25 percent of your unpaid taxes.

4. If you file your return more than 60 days after the due date or extended due date, the minimum penalty is the smaller of $135 or 100 percent of the unpaid tax.

5. If you do not pay your taxes by the due date, you will generally have to pay a failure-to-pay penalty of ½ of 1 percent of your unpaid taxes for each month or part of a month after the due date that the taxes are not paid. This penalty can be as much as 25 percent of your unpaid taxes.

6. If you request an extension of time to file by the tax deadline and you paid at least 90 percent of your actual tax liability by the original due date, you will not face a failure-to-pay penalty if the remaining balance is paid by the extended due date.

7. If both the failure-to-file penalty and the failure-to-pay penalty apply in any month, the 5 percent failure-to-file penalty is reduced by the failure-to-pay penalty. However, if you file your return more than 60 days after the due date or extended due date, the minimum penalty is the smaller of $135 or 100 percent of the unpaid tax.

8. You will not have to pay a failure-to-file or failure-to-pay penalty if you can show that you failed to file or pay on time because of reasonable cause and not because of willful neglect. 

Shred Fest 2011

Buried in a mountain of paper? Concerned about Identity Theft? This complimentary service is provided by The Palm Beach Chapter of the Florida Society of Enrolled Agents

Royal Palm Beach- Identity theft is still a major problem in the United States and according to the US Federal Trade Commission they received 250,854 complaints about identity theft during 2010 – nearly one-fifth of the entire number of complaints received by the agency. For the eleventh year in succession, consumers complained about this subject more than any other.

The Commission’s identity theft statistics show that Florida had the highest per capita rate of reported ID theft, with Arizona and California following close behind. With the increased awareness of identity theft, it is important to dispose of records carefully.

To help protect you from becoming a statistic, on Saturday morning, September 24, from 9am-12pm, The Palm Beach Chapter of the FSEA is holding another SHRED FEST. Over 9000 pounds of documents was shredded at the last event. This is an incredible opportunity to protect yourself from identity theft by safely destroying your personal documents and papers in our shred truck…Right before your eyes.

This event will be held in the parking lot of the Holy Name of Jesus Church, 345 S Military Trail, W Palm Beach and the shredding is FREE to anyone concerned about Identity Theft and wants to dispose of personal and sensitive documents.

We will also be collecting old newspapers for the local school.

Enrolled Agents will be on site to answer your tax document retention questions.

Who are EA’s? Enrolled Agents (EA) are federally-authorized tax practitioners who have the technical expertise in the field of taxation and who are empowered by the U.S. Department of the Treasury to represent taxpayers before all administrative levels of the Internal Revenue Service for audits, collections, and appeals.

For more information about the Florida Society of Enrolled Agents, visit the website http://www.fseaonline.org

Florida Society of Enrolled Agents Install New Board of Directors

July 6, 2011

Kissimmee, FL- The 2011 Florida Society of Enrolled Agents Annual Conference was just held at the Gaylord Palm Hotel & Convention Center. The conference provided the members with the opportunity to network with other Tax Professionals, enhance their various skills and expand their knowledge on current tax legislation, emerging issues and changes in their profession. On Friday, July 1, 2011 the FSEA installed the new slate for the coming year.

From left to right: Immediate Past President, William Weidenbach, EA, Treasurer, Sue Anne Curd, EA, Secretary, Twila Midwood, EA, President- Elect, Ana Magda Guillen, EA, President, Anita Manuel, EA, and Vice-President, Jeffrey Schneider, EA,

The Florida Society of Enrolled Agents (FSEA) is the professional society representing Enrolled Agents (EAs) in Florida. Members are licensed by the U.S. Department of the Treasury to represent taxpayers before all administrative levels of the Internal Revenue Service (IRS), including examination, collection and appeals functions. For more information, please visit the website, http://www.FSEAonline.org. The FSEA is an affiliate of the National Association of Enrolled Agents (NAEA) and they urge all tax practitioners to consider the benefits of joining.

The National Association of Enrolled Agents (NAEA) is a national association of independent, licensed tax professionals called Enrolled Agents (EA). The association is dedicated to helping its members keep up the highest level of knowledge, skills and professionalism in all areas of taxation, so that their members may most effectively represent the needs of their clients.

Have you ever considered how history shifts on small decisions?

Image via Wikipedia

What we celebrated on the 4th was the bravery of men who said [I paraphrased] : “If you’re going to tax me, I need a representative. And, since you won’t give me THAT … well, we’re free anyway. Government doesn’t give us our rights; our Creator does. So, we declare that we are, in fact, independent.”

Imagine if, before this point, the King of England had said: “Alright, I’ll allow a representative from each colony a seat in the Parliament.” I mean really — it’s not like we wouldn’t have been taxed up the wazoo with representation … the votes would have been something like 250-13 to tax the colonies to high hell!

But at least there would have been representation! [Historians point out that Washington, Adams, Franklin and others, at first, wanted only the same rights as other British subjects. Only until the British remained stubborn did they opt for full independence.] Instead, the British lack of imagination helped birth the greatest experiment in freedom the world has seen over the last two+ centuries (IMHO).  It may just be that you need to have your own little declaration of independence. Here’s what I mean…

True Freedom … From The IRS
Well, the dream of freedom, birthed on the 4th , does still live. But let’s face it–our government (especially the IRS) is ready to become a deeper, larger influence in our lives. And it’s ironic, this month of Independence, to see how much power the IRS now has as probably one of the most powerful organizations in the USA. Solely responsible for collecting Federal taxes and imposing related penalties, the IRS poses one of the biggest financial threats to individuals and business owners. They have unique information resources, legal standing, and roles as a law enforcement agency.  On top of all this, the IRS has the authority to issue legislation and the freedom to make mistakes without consequences (they’re protected from penalties for false tax accusations)!

So what can we do to protect ourselves from the IRS’ power and potential for financial wrath???  … Well, if there were a concrete answer for that, the IRS wouldn’t be the intimidating and widely feared agency it is today.  But there is one thing each of us can do  to keep them off our back: Keep Records! (I know, a bit lame … but it’s true!)
Our best defense against audits and false accusations is keeping accurate, detailed records of the flow of all money into and out of our lives.  Now, depending on your situation, this could be complicated and time-consuming!  Where do you begin?
A great place to start is by calling our office; we can help you decide where to focus your record-keeping efforts, and help you develop a strong wall of defense around the “castle” of your finances.  Generally, the better and more accurate your records, the better your chances are for surviving an All-Out IRS Battle! 

Give us a call today (spending a little today, could save a lot later)! 
Email info@sfstaxacct.com  or call us (561-868-1868 or 772-337-1040) now!

If you  are NOT a subscriber to our weekly “Real World” Personal Strategy Email series, you may go HERE to  subscribe: http://jeffreyschneider.mylocaltaxpro.com/

DO YOU KEEP TRACK OF YOUR STUDENT DEBT?

As the school year comes to a close, many college seniors are attending financial aid exit interviews. But, we’d like to remind all college students – whether you are graduating or not – to take stock of your student debt at the end of every school year. We’ve heard horror stories from graduates who were shocked to see how much they actually borrowed over the course of college. Keep track of it now so you will be prepared when it comes time to repay your loans.

If you still need to settle your bill for this semester, or are already looking ahead to next semester, please visit our website; http://www.sfscollegeplanningspecialists.com and click on the Need a Student Loan? button.

Here are some tips to help you manage your student loan debt:

• Gather you loan details at the end of each year – Pull together the details for all the loans you took out, including loan servicer total amount, APR and first payment date.
• Keep track of your debt and update it yearly – Once you’ve gathered all of your loan details, pull all this information into a spreadsheet and track it on an annual basis.
• Update your loan servicer – Be sure to notify your loan servicer when you graduate, withdraw from school, transfer, or change your name, address, email or phone number.

As you wrap up your loan details for this past year, remember to think ahead to next semester.  It’s never too early to get a head start on planning for your next tuition bill.

Have a great summer.

 

Have You Thought About Capitalizing on Low Capital Gains Rates?

Investors should note that the historically low capital gains tax rates have been extended through 2012. With that in mind, it might be time to 

"harvest" some of your unrealized gains in case tax rates rise again in the future. Also a tax-savvy way to completely eliminate your capital 

gains tax might be to donate appreciated stock to charity and receive a deduction equal to the security's current market value. Special rules 

apply to noncash donations, so check with us before you move forward on this strategy.

Need great tax or accounting help? SFS Tax, Accounting & College Planning Services is a year round, full service firm offering; bookkeeping, 

accounting, tax, payroll and college funding and planning services. 

IRS problems? Our Enrolled Agent, Jeffrey Schneider specializes in; offer in compromise, IRS levies and garnishments, filing late taxes, penalty 

and interest abatement, and innocent spouse.

With our online, "Real Time" accounting, we can work with businesses and individuals outside the Port St Lucie and Royal Palm Beach area, 

throughout Florida, and the other 50 states.

Visit our website: http://www.sfstaxacct.com and sign up for your FREE report and get your Free Tax Tip every week. Or call for more 

information. 561 868-1868 or  772 337-1040.Located in Royal Palm Beach and Port St Lucie, FL to better serve you.