June 29, 2015
If you’re preparing for summer nuptials, make sure you do some tax planning as well. A few steps taken now can make tax time easier next year. Here are some tips from the IRS to help keep tax issues that may arise from your marriage to a minimum:
Even if you don’t have room on your guest list for us, still make sure you give us a call at 803 732-4288 so we can help you with all the tax items on your check list. Tax On Wheels, LLC specializes in helping new couples coordinate their finances so there’s one less thing for you to worry about.
IRS YouTube Videos:
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April 21, 2015
The IRS mails millions of notices and letters to taxpayers each year. There are a variety of reasons why the IRS might send you a notice. Here are the top 10 tips to know in case you get one.
1. Don’t panic. You often can take care of a notice simply by responding to it.
2. An IRS notice typically will be about your federal tax return or tax account. It will be about a specific issue, such as changes to your account. It may ask you for more information. It could also explain that you owe tax and that you need to pay the amount that is due.
3. Each notice has specific instructions, so read it carefully. It will tell you what you need to do.
4. You may get a notice that states the IRS has made a change or correction to your tax return. If you do, review the information and compare it with your original return.
5. If you agree with the notice, you usually don’t need to reply unless it gives you other instructions or you need to make a payment.
6. If you do not agree with the notice, it’s important for you to respond. You should write a letter to explain why you disagree. Include any information and documents you want the IRS to consider. Mail your reply with the bottom tear-off portion of the notice. Send it to the address shown in the upper left-hand corner of the notice. Allow at least 30 days for a response.
7. You won’t need to call the IRS or visit an IRS office for most notices. If you do have questions, call the phone number in the upper right-hand corner of the notice. Have a copy of your tax return and the notice with you when you call. This will help the IRS answer your questions.
8. Always keep copies of any notices you receive with your other tax records.
9. Be alert for tax scams. The IRS sends letters and notices by mail. The IRS does not contact people by email or social media to ask for personal or financial information.
10. For more on this topic visit IRS.gov. Click on the link ‘Responding to a Notice’ at the bottom left of the home page. Also, see Publication 594, The IRS Collection Process. You can get it on IRS.gov/forms at any time.
Of course, you may feel more comfortable having a professional assist you with your response. Many people tend to respond emotionally to an IRS notice, but anger and fear will not help you resolve the matter. The IRS typically is looking for facts and documentation. A professional can help you sift through the inquiry and eliminate unnecessary issues so that your response can get directly to the point so that the problem can be resolved efficiently with a minimum of interaction with the IRS.
Tax On Wheels, LLC is happy to help you craft a response to IRS or state taxing authority correspondence. Give us a call at 803 732-4288 and let us take the burden off of your hands.
February 5, 2015
WASHINGTON—The Internal Revenue Service today announced the launch of a new, online public directory of tax return preparers. This searchable directory on IRS.gov will help taxpayers find a tax professional with credentials and select qualifications to help them prepare their tax returns.
“This new directory will be a practical tool for the millions of Americans who rely on the services of a paid return preparer,” said IRS Commissioner John Koskinen. “Taxpayers can also look to these tax professionals for help if they have questions about the new health care provisions on this year’s tax forms.”
The directory is a searchable, sortable listing featuring: the name, city, state and zip code of attorneys, CPAs, enrolled agents and those who have completed the requirements for the voluntary IRS Annual Filing Season Program (AFSP). All preparers listed also have valid 2015 Preparer Tax Identification Numbers (PTIN).
Taxpayers may search the directory using the preferred credentials or qualifications they seek in a preparer, or by a preparer’s location, including professionals who practice abroad. Tax return preparers with PTINs who are not attorneys, CPAs, enrolled agents or AFSP participants are not included in the directory, nor are volunteer tax return preparers who offer free services.
The directory can also be a resource for taxpayers who may want to get help from tax professionals on the Affordable Care Act tax provisions that affect returns filed this year.
The vast majority of people will only have to check a box on their federal income tax returns to indicate they had health coverage. Others may have Marketplace coverage with tax credits, have exemptions or need them, or may have to make a payment because they could afford to buy health insurance but chose not to.
The IRS provides extensive information on IRS.gov/aca to help taxpayers better understand the details of the new health care law. Many tax professionals, including those listed on the new directory, will be able to help taxpayers understand these changes.
More than 140 million individual tax returns were filed last year, and more than half of them were prepared with the help of a paid return preparer. To help taxpayers navigate the different types of professional tax help available, last December, the IRS unveiled IRS.gov/chooseataxpro, a page that explains the different categories of professionals. Taxpayers can also use a new partner page available on IRS.gov that provides links to the web sites of national non-profit tax professional groups, which can help provide additional information for taxpayers seeking the right type of qualified help.
The IRS also offers free tax return preparation for eligible taxpayers. But whether using a paid tax professional, relying on the help of a volunteer or preparing their own returns, taxpayers should consider preparing and filing their returns electronically. Electronic filing is the easiest way to file a complete and accurate tax return. There are a variety of electronic filing options, including IRS Free File for qualified taxpayers, commercial software and professional assistance.
In 2010, the IRS launched the Tax Return Preparer Initiative that generally requires anyone who prepares federal tax returns for compensation to obtain a PTIN from the IRS. As of the start of the filing season, more than 666,000 tax return preparers have active PTINs for 2015. Currently, anyone with a valid PTIN can prepare federal tax returns for compensation. At a minimum, taxpayers should make sure their tax preparer has a valid PTIN and includes it on the tax return.
Yes, Tax On Wheels, LLC requires all preparers to be listed or eligible to be listed in the directory. Please give us a call at 803 732-4288 if you have any questions.
January 20, 2015
Tax season is here and the 1040’s have been hung by the chimney with care, in hopes that tax refunds soon would be there.
You better not cheat, and I,m telling you why, the IRS is coming to town. They’re making a list and checking twice, gonna find out who’s got minimally essential coverage and who has to pay the price.
That’s right tax season officially begins today and we are off to the races. I expect that this will be an especially strange tax season. We have the whole affordable care act requirement to digest this year. I have been trying to get up to speed on this issue and while there seems to be plenty of instructions for how to handle it, my guess is everybody will not fit neatly into their preassigned boxes. Consequently, I pretty much expect all heck to break loose sometime in February.
Couple that with the fact that the IRS feels that they have not been provided with a sufficient budget this year and you could have the makings of a perfect storm. For years the IRS has enjoyed a reputation for having long wait times for callers to get through to talk with someone. Now it is being reported that less than half of callers to the IRS will actually get through to a real person to discuss their needs.
Nobody really knows how this will all play out, all I can say is strap in, this could get pretty interesting very quickly.
Of course, if we can be of assistance to you please do not hesitate to call us here at Tax On Wheels, LLC. We can be reached at 803 732-4288.
Each and every taxpayer has rights they should be aware of when dealing with the IRS. That’s why the Internal Revenue Service adopted the Taxpayer Bill of Rights.
The Taxpayer Bill of Rights provides you with a better understanding of your rights. While these rights always existed, they are now grouped into 10 broad categories, making them more visible and easier to find on IRS.gov.
“The Taxpayer Bill of Rights contains fundamental information to help taxpayers,” said IRS Commissioner John A. Koskinen. “These are core concepts about which taxpayers should be aware. Respecting taxpayer rights continues to be a top priority for IRS employees, and the new Taxpayer Bill of Rights summarizes these important protections in a clearer, more understandable format than ever before.”
The tax code already includes numerous taxpayer rights, but they are scattered throughout the code, making it difficult for people to track and understand. Similar to the U.S. Constitution’s Bill of Rights, the Taxpayer Bill of Rights contains 10 provisions:
• The Right to Be Informed
• The Right to Quality Service
• The Right to Pay No More than the Correct Amount of Tax
• The Right to Challenge the IRS’s Position and Be Heard
• The Right to Appeal an IRS Decision in an Independent Forum
• The Right to Finality
• The Right to Privacy
• The Right to Confidentiality
• The Right to Retain Representation
• The Right to a Fair and Just Tax System
These rights are incorporated into a redesigned version of Publication 1, Your Rights as a Taxpayer, a document routinely included in IRS correspondence with taxpayers. Millions of these mailings go out each year. The rights are also posted on IRS.gov, and print copies will be included in IRS correspondence in the near future.
“This information is critically important for taxpayers to read and understand,” Koskinen said. “We encourage people to take a moment to read the Taxpayer Bill of Rights, especially when they are interacting with the IRS. While these rights have always been there for taxpayers, we think the time is right to highlight and showcase these rights for people to plainly see.”
Tax On Wheels, LLC is available to assist you with any interaction with the IRS or state taxing authority. Please contact us at 803 732-4288 if we can be of assistance to you.
To learn more about the Taxpayer Bill of Rights, visit IRS.gov.
July 2, 2014.
Each year the IRS mails millions of notices. Here’s what you should do if you receive a notice from the IRS:
1. Don’t ignore it. You can respond to most IRS notices quickly and easily. And it’s important that you reply promptly.
2. IRS notices usually deal with a specific issue about your tax return or tax account. For example, it may say the IRS has corrected an error on your tax return. Or it may ask you for more information.
3. Read it carefully and follow the instructions about what you need to do.
4. If it says that the IRS corrected your tax return, review the information in the notice and compare it to your tax return.
If you agree, you don’t need to reply unless a payment is due.
If you don’t agree, it’s important that you respond to the IRS. Write a letter that explains why you don’t agree. Make sure to include information and any documents you want the IRS to consider. Include the bottom tear-off portion of the notice with your letter. Mail your reply to the IRS at the address shown in the lower left part of the notice. Allow at least 30 days for a response from the IRS.
5. You can handle most notices without calling or visiting the IRS. If you do have questions, call the phone number in the upper right corner of the notice. Make sure you have a copy of your tax return and the notice with you when you call.
6. Keep copies of any notices you get from the IRS.
7. Don’t fall for phone and phishing email scams that use the IRS as a lure. The IRS first contacts people about unpaid taxes by mail – not by phone. The IRS does not contact taxpayers by email, text or social media about their tax return or tax account.
For more on this topic visit IRS.gov. Click on ‘Responding to a Notice’ at the bottom left of the home page. Also see Publication 594, The IRS Collection Process. You can get it on IRS.gov or call 800-TAX-FORM (800-829-3676) to get it by mail.
Most people would do well to have professional guidance when dealing with most IRS correspondence. We encourage you to contact Tax On Wheels, LLC for assistance with any taxing authority correspondence whether it be state or federal. We are ready to help. You can reach us at 803 732-4288.
Additional IRS Resources:
Most people stop thinking about taxes after they file their tax return. But there’s no better time to start tax planning than right now. And it’s never too early to set up a smart recordkeeping system. Here are six IRS tips to help you start to plan for this year’s taxes:
1. Take action when life changes occur. Some life events, like a change in marital status, the birth of a child or buying a home, can change the amount of taxes you owe. When such events occur during the year, you may need to change the amount of tax taken out of your pay. To do that, you must file a new Form W-4, Employee’s Withholding Allowance Certificate, with your employer. Use the IRS Withholding Calculator on IRS.gov to help you fill out the form. If you receive advance payments of the premium tax credit it is important that you report changes in circumstances, such as changes in your income or family size, to your Health Insurance Marketplace.
2. Keep records safe. Put your 2013 tax return and supporting records in a safe place. That way if you ever need to refer to your return, you’ll know where to find it. For example, you may need a copy of your return if you apply for a home loan or financial aid. You can also use it as a guide when you do next year’s tax return.
3. Stay organized. Make sure your family puts tax records in the same place during the year. This will avoid a search for misplaced records come tax time next year.
4. Shop for a tax preparer. If you want to hire a tax preparer to help you with tax planning, start your search now. Choose a tax preparer wisely. You are responsible for the accuracy of your tax return no matter who prepares it. Find tips for choosing a preparer at IRS.gov. Tax On Wheels, LLC is currently accepting new clients and we look forward to answering your questions. Call us today at 803 732-4288.
5. Think about itemizing. If you usually claim a standard deduction on your tax return, you may be able to lower your taxes if you itemize deductions instead. A donation to charity could mean some tax savings. See the instructions for Schedule A, Itemized Deductions, for a list of deductions.
6. Keep up with changes. Subscribe to IRS Tax Tips to get emails about tax law changes, how to save money and much more. You can also get Tips on IRS.gov or IRS2Go, the IRS’s mobile app. The IRS issues tips each weekday in the tax filing season and three days a week in summer.
Remember, a little planning now can pay off big at tax time next year. Tax On Wheels, LLC is here to help call us at 803 732-4288 if we can be of assistance.
February 11, 2014. In a Youtube message to taxpayers from the new IRS Commissioner, John Koskinen, the public is encouraged to use electronic filing and warned to expect challenges in receiving IRS services including extended wait times for telephone callers. It is not unusual for callers to be on hold for significantly more than an hour.
If you want to spend hours of your life on hold with the IRS may the force be with you. But there is an alternative.
Did you know that tax professionals such as Tax On Wheels, LLC have special access to contact the IRS on your behalf. Depending on your needs, tax professionals can access electronic tools that are designed just for tax professionals. We also have a telephone number to the IRS that is not available to the general public. This can help us speed right to the area of the IRS that can help us solve your problem. So while your taxes may not be excessively complicated, it still helps to have the right tools for the job.
Give us a call if we can help you solve your tax problem. Tax On Wheels, LLC can be reached at 803 732-4288.
January 28, 2014
Do you need to file a federal tax return this year? Perhaps. The amount of your income, filing status, age and other factors determine if you must file.
Even if you don’t have to file a tax return, there are times when you should. Here are five good reasons why you should file a return, even if you’re not required to do so:
1. Tax Withheld or Paid. Did your employer withhold federal income tax from your pay? Did you make estimated tax payments? Did you overpay last year and have it applied to this year’s tax? If you answered “yes” to any of these questions, you could be due a refund. But you have to file a tax return to get it.
2. Earned Income Tax Credit. Did you work and earn less than $51,567 last year? You could receive EITC as a tax refund if you qualify. Families with qualifying children may be eligible for up to $6,044. Use the EITC Assistant tool on IRS.gov to find out if you qualify. If you do, file a tax return and claim it.
3. Additional Child Tax Credit. Do you have at least one child that qualifies for the Child Tax Credit? If you don’t get the full credit amount, you may qualify for the Additional Child Tax Credit. To claim it, you need to file Schedule 8812, Child Tax Credit, with your tax return.
4. American Opportunity Credit. Are you a student or do you support a student? If so, you may be eligible for this credit. Students in their first four years of higher education may qualify for as much as $2,500. Even those who owe no tax may get up to $1,000 of the credit refunded per eligible student. You must file Form 8863, Education Credits, with your tax return to claim this credit.
5. Health Coverage Tax Credit. Did you receive Trade Adjustment Assistance, Reemployment Trade Adjustment Assistance, Alternative Trade Adjustment Assistance or pension benefit payments from the Pension Benefit Guaranty Corporation? If so, you may qualify for the Health Coverage Tax Credit. The HCTC helps make health insurance more affordable for you and your family. This credit pays 72.5 percent of qualified health insurance premiums. Visit IRS.gov for more on this credit.
The instructions for Forms 1040, 1040A or 1040EZ list income tax filing requirements. You can also use the Interactive Tax Assistant tool on IRS.gov to see if you need to file. The tool is available 24/7 to answer many tax questions.
To sum it all up, check to see if you would benefit from filing a federal tax return. You may qualify for a tax refund even if you don’t have to file. And remember, if you do qualify for a refund, you must file a return to claim it.
Remember, Tax On Wheels, LLC is here to assist you with all of your tax filing obligations. Please don’t hesitate to contact us at 803 732-4288 if we can be of assistance to you.
Tax information can be tough to understand in any language. It may be more difficult to understand if it is not in your first language. The IRS offers a wide range of free and easy-to-use products and services for Spanish-speaking taxpayers. Here are some tips if you need federal tax assistance from the IRS in Spanish.
English language assistance with your taxes is available by calling Tax On Wheels, LLC at 803 732-4288.