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Posts Tagged ‘Tax’

People always ask the question: What is the statute of limitations for unfiled taxes? This is an easy one…there isn’t one.

Taxpayers often believe that if they just don’t file their returns then at some point there is a statute that expires. But when you don’t file then the statute clock has not started. So in theory the IRS can come after you for tax returns for an unlimited number of years. What normally happens is that if you have outstanding W2s and 1099s are other income that the IRS is aware of then after 3 or 4 years the IRS will often file a Substitute for Return (SFR). The SFR won’t give you as many deductions as you would normally have if you had properly filed your return. Once filed, collection efforts will then start and the IRS will pursue collection with any means possible.

Many people are self-employed and they think that if they don’t file tax returns for several years then the statute of limitations will just expire and then they don’t have to file at all. This is simply not the case, even if the IRS has no record (1099s) that you earned any income. You need to get your returns filed ASAP. Only at that point will the statute of limitations clock start. It is normally three years for federal taxes (many states are four years), but the IRS can extend the statute for various reasons such as fraud or negligence.

So if you have unfiled taxes, you must file every tax return that is overdue. However, a taxpayer may not be required to file in years that he/she did not make sufficient income to warrant a tax return. Another concern is that the taxpayer should be in compliance with all current tax payments. In cases of individuals who are self-employed or receive revenue from dividends or royalties, compliance includes estimated tax payments, which must be made four times per year, after each quarter. It is advisable to know whether you are deemed compliant by the IRS, and if not, how you can take steps to obtain compliance status.

So since there is no statute of limitations for unfiled tax returns, you need to get your returns filed ASAP. Contact us today for help.

For help on your unfiled tax returns, contact us today at: http://www.unfiledtaxreturns.com/

Many taxpayers are facing back tax issues, especially considering the financial situation of today’s economy. So the question often arises – how do I get an installment agreement request form? But once you get the request form, how do you complete it and what information do you need to include to make sure that it is successful?

Before the IRS will agree to an installment agreement, the agency will do a financial review of the individual taxpayer’s financial position. The goal is to determine the collection potential of the taxpayer’s account.

Often the taxpayer gets a monthly payment that is greater than what they can afford. This can result in a default under the agreement. If this occurs, the IRS will restart the collection process all over again. Hence, the taxpayer needs to make sure that they get an affordable agreement established upfront. The assistance of a tax professional can greatly improve the taxpayer’s chances of getting an affordable agreement.

As you go through the installment agreement process, you must remember that this is a contract between you and the IRS. The IRS certainly expects you to keep up your end of the bargain and make your payments on a timely basis.

The advantage to the installment agreement request form is that it will put an end to any collection efforts that the IRS was undertaking. This includes tax liens, levies, garnishments, and collection calls. But interest and penalties will continue to accrue on any unpaid balance throughout the entire installment period.

We all know that it is a frustrating process to deal with the IRS. Also, don’t get fooled by many of the other tax relief firms out there who promise results. You need a professional on your side so make sure that you hire an experienced firm.

For help on your irs installment agreement, visit the website: http://www.installmentagreement.org/

If you are in small business, you are looking to avoid as much tax as possible. Avoiding tax can soon turn into tax evasion. Whether or not tax accountants will recommend these controversial tips, is another matter. If you are considering tax evasion, you need to do a little homework.

Even if you have great tax accountants, they might not tell you explicitly what is written in this article. If you are running your own small business, there are concrete ways to avoid paying tax. This does not mean they are legal, and so you should take care in what you do. These are tools and techniques that you can use if you are tired of paying too much tax. This article does not actively promote these ideas as they may be illegal in your country. Make your own decisions after being informed.

• Cash. What do we do with cash? We put it in our wallet. Earning income directly through a cash means is obviously illegal. It is also hard to get caught at. If you have clients who are not interested in getting a receipt, working to earn cash is an excellent option. Obviously, you cannot do this for everything you do, unless you have a means to explain why you have that money. You may come under suspicion for having too much money in your bank account when you have no stated earnings. Make sure you take a few trips to a local Casino so you can explain how you got all that money if ever asked. There are no records of who won or not. This is why having casinos in any country indirectly facilitates crime and corruption. If it is possible not to supply your bank with your tax number or social security number in your country, don’t it where you can.
• Deductions. Deductions are allowable on all the costs of you doing your business. You must make sure you take advantage of these and more. Use as much of your living expenses and claim them as legitimate tax deductions of doing your job and business. Be inventive about the way you claim your deductions and look for reasonable reasons why you made those purchases in relation to your work. There are many receipts that can be used for both personal and professional expenses. Exploit this as much as possible.
• Don’t Employ People. Employing others in your small business can be very costly. Not in just the amount of tax, sick pay and leave you will have to pay, doing all those calculations costs a lot of money. Managing your business and getting into the business of employing people is a legal minefield. You will need to understand many laws such as Occupational Health and Safety requirements. Avoid all this by using services of companies instead of employees. If you are using someone regularly, make sure you have a supplier contract. In some cases, this will mean you cannot use them constantly for more than an extended period. You might have to have a week break in your relationship every 12 weeks, for example, as is the case in Australia.
• Keep Money Overseas. Earning money overseas should be kept overseas. Make sure you know the relationship of the country and your country before you do this. For example, Hong Kong and Australia have tax information exchange relationships. Therefore, if you are an Australian earning money from overseas, it is not a good idea to keep it in Hong Kong. Receive and keep your money in a country that does not have these types of relationships, for example, somewhere in South America.

Not all, if many accountants, will recommend these practices. Do your own research, avoid as much tax as possible, and don’t get caught.

Just because your employer is protecting you with worker’s compensation cover, does not mean that you should disregard income protection insurance. There are many people out there who believe their worker’s compensation is more than enough. Income protection is something you must instigate yourself, and is beyond what you are covered for with worker’s compensation. A look at the issue.

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