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.

 

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.

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/

Can you take the tax deduction?

Do you have a closet full of stuff that you would love to get rid of? Is your garage full to the point of exploding with your now married children’s toys and clothing? What do you do with all this “junk”. You can donate to the various charities (Goodwill, The Salvation Army or Am Vets to name a few), receive a tax deduction (if you itemize) and save about $20-$30 in real taxes or sell it.

Many people conduct periodic garage sales. You sell your stuff and pocket the change. If you have enough stuff, you can pocket a couple of hundred dollars and most of it is tax-free as the cost of the items sold are much more than what you sold it for. The other side is that you can not take the loss (sales price minus cost) as these transactions are considered personal, not business and personal losses are not deductible.

Other people take selling their unwanted toys and clothing to the internet using Ebay and Craigs List, amoung others. If you sell items on an occassional basis, you have tax free income via the new age “internet garage sale”. But what happens if you conduct hundreds of these transactions in any given year? In a recent court case, the IRS prevailed when they wanted to tax the seller on the gross income received from activity on EBay. Their case stemmed on the fact that the individual conducted hundreds of sales transactions in each of two years. They argued and the court agreed that this was a business and that the gross revenue received from each and every sale was income. The court did not put a number as to how many transactions constitute a business. In reading the case, it has more to do with a continuous and ongoing activity that was the deciding factor.

The good news is that the cost of every item sold is a deduction against that income and any fees incurred in the selling of these items are deductions.

The bad news: Who keeps receipts of a childs toy or article of clothing from a few years ago, not to mention 10 or more years. So if you want to conduct numerous transactions on any of these sites, make sure that you have documentation as to the cost of the items sold or the IRS may, not only attempt to subject the revenue to the income tax, but as a business, the self-employment tax.

Please contact SFS Tax, Accounting and College Planning Services before you begin anything that may be construed as a business so you can plan accordingly and limit your potential tax expoure. Our website is http://www.sfstaxacct.com or call us at 561 868-1868 or 772 337-1040.

Do You Know the Seven Things about Getting More Time to File your Tax Return

Procrastinators can’t make the April 18 tax filing deadline? Need more time to file your tax return?
You can get an automatic six month extension of time to file from the IRS but, SFS Tax, Accounting & College Planning Services in Royal Palm Beach and Port St Lucie, Fl would love to help you out. However, if you prefer to file on you’re your own, keep reading……

Here are seven important things you need to know about filing an extension:

1. File on time even if you can’t pay:  If your return is completed but you are unable to pay the full amount of tax due, do not ask for an extension. File your return on time and pay as much as you can. The IRS will send you a bill or notice for the balance due. To apply online for a payment agreement, go to the IRS website at http://www.irs.gov and click “Apply for an Online Payment Agreement (OPA)” at the left side of the home page under Online Services. If you are unable to make payments, call the IRS at 800-829-1040 to discuss your options.
2. Extra time to file:  An extension will give you extra time to get your paperwork to the IRS, but it does not extend the time you have to pay any tax due. You will owe interest on any amount not paid by the April 18 deadline, plus you may owe penalties.
3. Form to file:  Request an extension to file by submitting Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, to the IRS by April 18, 2011, or make an extension-related electronic credit card payment. For more information about extension-related credit card payments, see Form 4868.
4. E-file extension:  You can e-file an extension request using tax preparation software with your own computer or by going to an professional tax preparer, an Enrolled Agent, who has the software. The IRS will acknowledge receipt of the extension request if you file by computer.
5. Traditional Free File and Free File Fillable Forms:  You can use both Free File options to file an extension. Access the Free File page at http://www.irs.gov.
6. Electronic funds withdrawal:  If you ask for an extension via computer, you can also choose to pay any expected balance due by authorizing an electronic funds withdrawal from a checking or savings account. You will need the correct bank routing and account numbers. For information about these and other methods of payment, visit the IRS website at http://www.irs.gov or call 800-TAX-1040 (800-829-1040).
7. How to get forms:  Form 4868 is available for download from the IRS website or ordered by calling 800-TAX-FORM (800-829-3676).You can also obtain the form at your local IRS office. Telephone requests normally take 7 – 15 days to process and ship.

SFS Tax, Accounting & College Planning Services is here to help you all year round. Tax professional, Jeffrey Schneider, Enrolled Agent is here to make certain you get all tax breaks legally allowed by the IRS. Call us now 561 868-1868 or 772 337-1040. Serving the Royal Palm Beach, Wellington, W Palm Beach, Port St Lucie, Ft Pierce, and Stuart and all surrounding areas as well as the rest of the 50 states.