IRS Fresh Start Program

IRS Fresh Start Program

There is a new system called the IRS Fresh Start Program which aims to make it easier for people to pay back taxes and avoid a lien coming against them. There are three major parts to the IRS program. Tax liens, installment agreements and offers of compromise are the three features of the program.

The program increases the amount a person can owe before the IRS will file a notice of federal tax lien. Even though the IRS can file before the 10,000 limit this does increase it for the average person.

The IRS has also agreed to more installment options. One can file for an installment plan right over the internet. This could increase monthly payments for up to six years. If the agreement needs to be extended for longer than six years, financial hardship would have to be shown to the IRS.

Offers in Compromise are another agreement for taxpayers to be able to pay off debt but at a lesser amount. The IRS is now more flexible in its way to look at the taxpayers ability to pay. Generally the IRS will accept an offer if they feel it is a fair amount for a reasonable amount of time offered.

This new program will hopefully help taxpayers starting with the 2012 taxes. With compromise from both the IRS and the taxpayer all parties can be satisfied. The taxpayers will also feel less likely that they are being targeted and forced to pay amounts that they can never reach.

New Tax Problems For Lindsay Lohan

Tax Problems For Lindsay Lohan

Many people make wise choices when it comes to filing their taxes, and this annual activity may happen smoothly and without incident. The popularity of Turbo Tax 2013 may help taxpayers benefit more than ever as they prepare to file their income tax returns for 2012. Lindsay Lohan would do well to heed the advice that many individuals follow each tax season, especially since she faces new tax issues about not paying her 2011 taxes. Most people who may owe back taxes are not lucky enough to have a famous and wealthy friend step in on their behalf, but this is exactly what happened for Lindsay Lohan when she received a six-figure check that allowed her to pay off her tax debt for 2009. This may be one of many financial entanglements that Lindsay Lohan may face, but her problems may serve as an example of what not to do and how Turbo Tax 2013 and trusted tax advice may benefit anyone who is dedicated to doing the right thing with their finances.

Over (Lindsay Lohan song) (Photo credit: Wikipedia)

Anyone may hope to keep as much of their earnings as possible each year, and working with tax attorneys, CPAs, or other tax experts associated with Turbo Tax 2013 may help you maximize your refund and still stay in compliance with the Internal Revenue Service. What may separate Lindsay Lohan from other taxpayers may be her apparent cavalier attitude towards legitimate job offers and earnings. Having her bank accounts seized by the IRS may not have had an impact on her behavior up to this point, but you may be the one who feels like a superstar at tax time if you avoid the Lindsay Lohan approach to tax payment.

TurboTax Saves You Time And Money

TurboTax Saves You Time And Money

Again it is that time of the year that you dread; tax time.  It may seem like you just filed, but now you are running out of time to complete and submit your IRS 2012 taxes.  Many people make major mistakes when it comes to filing their taxes.  One common mistake is completing their tax paperwork on their own,  without the use of professional tax expert or professional tax software.  Due to this mistake they underestimate their estimated tax payment and end up owing a lot more than they thought they would.  This can lead to financial trouble for years to come and having to pay penalties and interest.  No one wants to pay more than what they actually owe in IRS 2012 taxes.  Using TurboTax will help you avoid this costly mistake.

IRS Form 1040
IRS Form 1040 (Photo credit: bradleygee)

One benefit to using TurboTax software is that you can use it on your own time. No need to schedule a last minute appointment with a tax professional, who may overcharge you now that you have waited until the last minute to file your taxes.  TurboTax is there and ready when you are.  With TurboTax you do not pay more to file or to use their system if you wait until the deadline to file.  This program is updated with all the new tax laws and codes and will help you get your taxes completely done correctly the first time.

If you are self-employed ,or are an investor, or a landlord, you most likely will need to estimate your tax liability.  People in these categories often do not have enough income tax withholdings to cover what they owe in federal taxes.  TurboTax can help you accurately calculate your estimated tax payments.  To figure out your tax liability when looking at your Form 1040, look at lines 62, which is your total tax, and lines 63, your tax withholding.  Subtract the withholding from the total tax.  The sum is your tax liability.  Estimated tax payments, if you owe them, are due quarterly on the 15th of April, June, September and January.  If your income will change significantly in the next year, you should consider calculating your estimated tax payments from your projected total income.

When submitting your estimated tax payments to the IRS use the 1040-ES form as a voucher to help make sure your payment is processed properly.  Make your check out to “United States Treasury”.  In the memo area of the check be sure to include your social security number and the year for which you are paying taxes.  You can also make a payment using the Electronic Federal Tax Payment System.

No matter you financial situation or tax liability, TurboTax can help you with your IRS 2012 taxes.  This program eliminates the need to track down tax forms, send in W2s, and takes the guesswork out of filing your taxes and your estimated tax payment.  Whether you are ahead of the game or waiting until the 11th hour, TurboTax will help you file your taxes accurately and easily.

E-Filing Your Taxes With TurboTax

E-Filing Your Taxes With TurboTax 2013

We are in the midst of the 2013 tax filing season. Every year since 1993; Americans have increasingly used e-filing software to file their tax returns. TurboTax 2013 has perfected the process of contemporary electronic tax filing.

Since the IRS introduced electronic filing in 1990, they have securely processed over 1 billion individually prepared electronic tax returns. The IRS touts e filing for the following benefits —

• The Tax Returns are More Accurate and Complete – TurboTax 2013 does all the math calculating and even compares data from previous year’s filings for consistency. TurboTax is able to determine state taxes where that information is required on a Federal return, you do not need a separate resource for that. You do not have to be an experienced tax filer to use TurboTax2013.
• Secure and Confirmed Delivery of Your Return — TurboTax utilizes state of the art encryption technology for the secure web transport of your tax return. You will receive an email within 48hrs from the IRS confirming receipt of your return.
• Refunds are Processed and Delivered More Quickly — E filed returns that indicate refunds are processed more quickly than paper filed tax returns. TurboTax2013 works seamlessly with your bank and the IRS for faster direct depositing of your refund.
• Ease of Use — There is no simpler, easy to navigate and use tax software than TurboTax2013. TurboTax is intuitive and self-correcting. TurboTax will prepare your Federal and state returns simultaneously, alleviating the need to input the same data on two forms. TurboTax software is written with knowledge of all the divergent state laws and procedures for filing and makes those transparent for the user.
• Peace of Mind — In addition to the 48-hour receipt confirmation by email from the IRS, you will have peace of mind that your e filed return is accurate.

E-File Dates

E-files dates for 2013 start with the opening date of January 30. The IRS will begin accepting e filed returns after incorporating all the tax policy and law changes that took effect January 2nd. Some e-file dates are later due to late legislation that requires more extensive system testing and programming. Nevertheless, the IRS is prepared to start accepting electronic returns by January 30th, and will process the biggest volume of e filings by late February-early March. That group includes those who will be claiming energy credits, property credits and other business related tax incentives.

The IRS says that the best option is to file electronically. TurboTax 2013 is the safest, quickest and easiest to use software for e filing. You will be assured to meet the e-file dates and have access to TurboTax’s outstanding customer service and support should you encounter an issue with your return that requires expert assistance. TurboTax is the best selling, most trusted e filing software for a reason, the reason is trust; TurboTax gives its users the assurance of an accurate, securely prepared and delivered tax return.

Tax Returns: Processing Begins On January 30th

Tax Return Processing

The Internal Revenue Service of the United States(IRS) made the announcement this past week that the season for filing taxes will not begin until January 30th. They are not going to start any processing of individual tax returns until that date.

The IRS had originally announced January 22nd as the date they would be opening tax filing. The reason for the bump back in the date is the changes in the tax law that congress passed on New Year’s Day. This all had to do with the “fiscal cliff” negotiations between house Republicans and the president.

Tax
Tax (Photo credit: 401(K) 2013)

At the current time, the IRS is finishing their testing and programming of their processing systems while also updating their forms. These updates according to the IRS are going to allow the majority of the tax filers to be able to file their returns beginning January 30. Those who require any more obscure types of forms for issues such as general business credits, depreciation of property or energy credit claims to name a few will find that the updating of the processing systems and forms will probably allow them to file toward the end of February or the beginning of March.

Steven Miller who is currently serving as the acting commissioner of the Internal Revenue Service has gone out of his way to reassure the public that all efforts are being made to get the process up to  full speed.

The IRS has also stated that before January 30th even paper returns will not be processed and advises the public that electronic returns do in fact speed the process and make for faster refunds to the public. They also point out that last year the percentage filing electronically surpassed 80%.

The bottom line as Mr. Miller reminds the public is that electronic filing is truly the best choice for the taxpayer to make in terms of getting things done efficiently and quickly.

IRS Tax Relief Programs

IRS Tax Relief

If you are looking for IRS tax relief information, maybe this will help you. The IRS has several tax relief programs for people who owe back taxes.

There is an Installment Agreement available to people who don’t have the money to pay their tax debt all at once. The program lets people make monthly payments until the whole debt is paid off. Another one that they have is an Offer in Compromise. This lets taxpayers settle their tax debt for less than the amount that they need to pay. The OIC helps taxpayers in limited circumstances.

In some circumstances, the IRS may do penalty abatement to those who did not pay their taxes because of a special hardship. If the person meets the criteria, the IRS may forgive the penalties.  The interest abatement is even more limited and is hardly ever provided.

You can apply for an OIC, Installment Agreement, or interest or penalty abatement without getting the help of a third party. If you would like someone to represent you, only a select few can help.

So if you are in need of tax relief, you should look into what programs you qualify and check with the IRS to see if they can help resolve your problems.