Friday, December 21, 2007

IRS Implementing AMT Patch

WASHINGTON — The Internal Revenue Service announced it will immediately begin the final reprogramming steps for its income-tax processing systems to prepare for the upcoming tax season following final passage of the Alternative Minimum Tax “patch” Wednesday by the House.

“Our people will do everything they can to quickly update our systems for this major change and make this filing season as smooth as possible for everyone,” said Linda Stiff, IRS Acting Commissioner. “Our goal is to process tax returns accurately and to issue refunds to taxpayers as quickly as possible.”

The AMT and AMT-related tax calculations affect a number of core IRS processing systems that will need to be updated. The IRS is continuing to aggressively explore options for the 2008 filing season in order to minimize the impact of processing delays on taxpayers. Additional details will be available to the public as soon as plans are finalized.

To help the tax professional and software communities prepare for the upcoming filing season, revised copies of the 12 tax forms impacted by the AMT legislation will be posted to IRS.gov within 72 hours after the AMT patch is signed into law.

As more details on the AMT situation develop, the IRS encourages taxpayers to visit www.irs.gov for more information.

S. Raines, Sr. Financial Advisor/Tax Preparer

www.effectur.com

"Please Save Santa From the IRS"

This is a "must see" video that will have you rolling on the floor......wonder how many times Santa can fall out of that chair.............huh!

Who said that tax resolution companies don't have a since of humor!

S. Raines, Sr. Financial Advisor/Tax Preparer

Thursday, December 20, 2007

IRS Practitioner Priority Questions

tax_terms3.jpgIn a recent article published in The Federal Tax Alert from the NSTP (National Society of Tax Professionals) member Robert Wunderle, Director, La Posada Tax Clinic in Twin Falls, Idaho, recently experienced questionable actions of IRS personnel on the Practitioner Priority Service Line.

This article sparked some concern to me and I felt that taxpayers, along with all tax advocates and tax resolution firms should take great heed to Robert's article. The following is the text from this article.

Robert called the PPS line about a client. He was asked two additional questions never asked of him before:

"Can you tell me where your client works?"

"Can you tell me where your client banks?"

The questions were posed to verify that he was the clients' true representative, but something did not seem right.

He pursued the matter and asked the purpose of the questions. He was told that it is policy. Customer Service Representatives, CSR's were required to ask them. Robert further asked if the questions were designed to facilitate the issuing of levies. The CSR acknowledged that they were. The CSR also offered that answering the questions was totally optional.

The CSR that Robert spoke with made it clear that she and her colleagues did not like having to ask the questions. Robert felt that calling the IRS for advice, information or to simply update the IRS on the status of a case should not require a taxpayer or their representative to disclose this type of information.

Robert pursued this issue by submitting a systemic issue Form 911 with the National Taxpayer Advocate. The response from Nina Olson, National Taxpayer Advocate, follows:

"From my perspective as the NTA, if a taxpayer is calling the IRS general information line or a representative is calling the practitioner hotline, it is inappropriate for the IRS's first questions to be "Where do you work" and "Where is your bank account." The IRS must first ascertain what the taxpayer is calling about. For example, if the taxpayer is calling with a tax law question pertaining to a return he is filling out, immediately probing about potential collection sources may cause that taxpayer to (1) end the call and file the return incorrectly, or (2) end the call and not file at all."

I fail to see how the IRS's approach described in the original email furthers effective tax administration or encourages voluntary compliance. I have constantly urged the IRS to look at contacts with taxpayers, including the exam and collection context, as opportunities to educate taxpayers and work with them to bring them into voluntary compliance. My office is looking into the practices described by the original email to see if this is standard practice for the IRS. If it is, we will advocate for cessation of an changes to this practice.

In closing, I applaud Robert's efforts to be a true tax advocate and put his client's best interest in the fore front.

S. Raines, Sr. Financial Advisor/Tax Preparer

www.effectur.com

IRS & States to Share Employment Tax Examination Results

cb002163.jpgOfficials from the IRS and 29 state workforce agencies announced they have entered into agreements to share the results of employment tax examinations. The agreements, part of the Questionable Employment Tax Practice initiative, provide a centralized, uniform means for the IRS and state employment officials to exchange data, thereby leveraging resources and encouraging businesses to comply with federal and state employment tax requirements.

The agreements call for collaborative outreach and education activities designed to help businesses understand their employment and unemployment tax responsibilities.

The states that have signed partnership agreements with the IRS thus far are: Arizona, Arkansas, California, Colorado, Connecticut, Hawaii, Idaho, Kentucky, Louisiana, Maine, Massachusetts, Michigan, Minnesota, Nebraska, New Hampshire, New Jersey, New York, North Dakota, Ohio, Oklahoma, Rhode Island, South Carolina, South Dakota, Texas, Utah, Vermont, Virginia, Washington and Wisconsin.

S. Raines, Sr. Financial Advisor/Tax Preparer

www.effectur.com

Monday, December 17, 2007

13 Most Overlooked Tax Deductions

snipshot_bx1jm83xr36q.jpgFrom Kiplinger.com:

1. State sales taxes.
2. $250 educators’ expenses.
3. College tuition.
4. Student loan interest paid by mom and dad.
5. Out-of-pocket charitable contributions.
6. Moving expense to take first job.
7. Military reservists travel expenses.
8. Child-care credit.
9. Estate tax on income in respect of a decedent.
10. State tax you paid last spring.
11. Refinancing points.
12. Reinvested dividends.
13. Jury pay paid to employer.

S. Raines, Sr. Financial Advisor/Tax Preparer

www.effectur.com

"Something Serious To Think About!"

Here's something to think about...........

This is too true to be very funny.

The next time you hear a politician use the word 'billion' in a casual manner, think about whether you want the 'politicians' spending YOUR tax money.

A billion is a difficult number to comprehend, but one advertising agency did a good job of putting that figure into some perspective in one of its releases.A. A billion seconds ago it was 1959.B. A billion minutes ago Jesus was alive.C. A billion hours ago our ancestors were living in the Stone Age.D. A billion days ago no-one walked on the earth on two feet.

E. A billion dollars ago was only 8 hours and 20 minutes, at the rate our government is spending it.

While this thought is still fresh in our brain, let's take a look at New Orleans It's amazing what you can learn with some simple division .
Louisiana Senator, Mary Landrieu (D), is presently asking the Congress for $250 BILLION to rebuild New Orleans . Interesting number, what does it mean?A. Well, if you are one of 484,674 residents of New Orleans (every man, woman, child), you each get $516,528.B. Or, if you have one of the 188,251 homes in

New Orleans , your home gets $1,329,787. C. Or, if you are a family of four, your family gets $2,066,012.Washington, D.C .. HELLO!!! ... Are all your calculators broken??Tax his land,
Tax his wage,
Tax his bed in which he lays.
Tax his tractor,
Tax his mule,
Teach him taxes is the rule.
Tax his cow,
Tax his goat,
Tax his pants,
Tax his coat.
Tax his ties,
Tax his shirts,
Tax his work,

Tax his dirt.
Tax his tobacco,
Tax his drink,
Tax him if he tries to think.
Tax his booze,
Tax his beers,
If he cries,
Tax his tears.

Tax his bills,
Tax his gas,
Tax his notes,
Tax his cash.

Tax him good and let him know
That after taxes, he has no dough.

If he hollers,
Tax him more,
Tax hi m until he's good and sore.

Tax his coffin,
Tax his grave,
Tax the sod in which he lays.
Put these words upon his tomb,
'Taxes drove me to my doom!'

And when he's gone,
We won't relax,
We'll still be after the inheritance TAX!!

Accounts Receivable Tax
Building Permit Tax
CDL License Tax
Cigarette Tax
Corporate Income Tax
Dog License Tax
Federal Income Tax
Federal Unemployment Tax (FUTA)
Fishing License Tax
Food License Tax
Fuel Perm it Tax
Gasoline Tax
Hunting License Tax
Inheritance Tax
Inventory Tax
IRS Interest Charges (tax on top of tax),
IRS Penalties (tax on top of tax),
Liquor Tax,
Luxury Tax,
Marriage License Tax,
Medicare Tax,
Property Tax,
Real Estate Tax,
Service charge taxes,
Social Security Tax,
Road Usage Tax (Truckers),
Sales Taxes,

Recreational Vehicle Tax,
School Tax,
State Income Tax,
State Unemployment Tax (SUTA),
Telephone Federal Excise Tax,
Telephone Federal Universal Service Fe e Tax,
Telephone Federal, State and Local Surcharge Tax,
Telephone Minimum Usage Surcharge Tax,
Telephone Recurring and Non-recurring Charges Tax,
Telephone State and Local Tax,
Telephone Usage Charge Tax,
Utility Tax,
Vehicle License Registration Tax,
Vehicle Sales Tax,
Watercraft Registration Tax,
Well Permit Tax,
Workers Compensation Tax.

STILL THINK THIS IS FUNNY?
Not one of these taxes existed 100 years ago,
and our nation was the most prosperous in the world. ;
We had absolutely no national debt, had the largest middle class in the world, and Mom stayed home to raise the kids.
What happened? Can you spell 'politicians!'

And I still have to 'press 1' for English.

What the heck happened?????S. Raines, Sr. Financial Advisor, Tax Preparer

www.effectur.com

Friday, December 14, 2007

10 Ways "Not" to Get A Refund!

ransom.jpg10. Use crayons to fill out tax form
9. Add Miscellaneous Tax credit for Yard Art
8. Send IRS forms after you’ve shred them
7. Do an honest job and work for a living
6. Actually buy a Hybrid and try to make world better place
5. Run a blog that disses your Congressman
4. Park in the “Employee’s Only” lot at the IRS building
3. Work for Hillary’s campaign
2. Die before end of year
1. Send a ransom note to IRS instead of your return