|
TaxTalkOnline is the Premier Provider of Bookkeeping and Accounting Services to CPA and Small to Mediums Sized Firms Nationwide - offering a 100% Satsifaction Guarantee!
|
| In Trouble with the IRS?
Secrets to Finding the Right Tax Relief Professional |
There may be no hope for major companies like Lehman Brothers, Circuit City, Bed Bath and Beyond, but many struggling small to medium sized businesses could still survive the recession - all they need is some good business sense and top quality bookkeeping.
Althought that might be the case, sometimes small to medium sized businesses still get in trouble with the IRS which can be a terrible experience for everyone. The IRS imposes harsh penalties on people that are not in compliance with tax code. Using an experienced tax professional can eliminate tricky IRS tactics and will likely save you money and stress. Using a tax professional will eliminate the intimidation factor the IRS relies on when going after individuals.
Many people believe that if they work with a tax professional, this will make it look like they are trying to hide something from the IRS. Believe it or not, the IRS would much rather work with a tax professional that is aware of tax laws than dealing with individual tax payers because it makes their job much easier. With that being said, what should you look for in a tax professional if you are having tax problems?
1) Locate a few tax relief companies that say they can help with your tax problem. It is important to talk with a couple companies because each one will likely have a different approach. Most of these companies will offer you a free consultation where you will get your likely outcome and a quote for the service. Talking with a few companies will also help ensure yourself that you are getting a decent deal for the price and you don't get taken advantage of by a tax company that is trying to charge much more than their service is worth.
2) Check out the company rating with the BBB. This will give you a general sense of its past business relationships. If their rating is satisfactory then you know they can likely be trusted. Be very careful with the service if it is listed as unsatisfactory. 3) Watch out for companies that are promising an outcome that is highly unlikely. Some companies will promote pennies on the dollar settlement on tax debt. This is actually extremely rare to receive and if they tell you that it is likely you will settle for pennies on the dollar before completely analyzing your financial situation, this is a big red flag.
4) Be careful of companies that charge a retainer fee. A company that has retainer fees is normally not a service based company and is more interested in collecting money from individuals than actually helping them. It is best to hire a company that plans on getting paid based on results and the service they provide and they realize that they shouldn't be paid until that service has been completed. A company that charges a retainer will likely charge you much more overall than a company that doesn't. Once you talk to several tax professionals you will be able to make an educated decision about which one to hire based on quote, tax resolution, and your overall financial benefit you would receive. It is very important to be extremely honest about your financial situation with the tax professionals so they can give you an honest and likely outcome. The IRS has many different methods for individuals to resolve their tax problems and it is completely dependent upon an individual's financial situation. BackTaxesHelp.com provides trusted tax solutions to people with a large variety of financial problems. We pride ourselves on having a diverse tax team that can help with a variety of IRS and state tax problems. If you need IRS back taxes relief, consider us and let us tell you your options. |
| Can Leases Be Depreciated?
Special Report |
Most of the time the answer is depends. That is why having expert counsel to interpret the laws is to your advantage. Following are the several simple factors to determine if a lease can be depreciated:
1. Lease terms. The lessor owns the property; the lessee uses the property.
2. The kind of lease. An operating lease provides that the property be returned to the lessor. A capital lease is actually a purchase in which the lease is a means of financing (rather than a bank loan). Therefore, a capital lease has payments that include principal and interest.
3. Lease conditions. A lease that meets one or more of the following criteria is a capital lease, and the lessee should depreciate the leased asset:
- Ownership is transferred when the lease terminates.
- There is a bargain purchase option (B.P.O.), allowing the asset to be purchased at a price far below its fair market value.
4. The lease is for 75% or more of the asset's expected life--e.g., if the asset's life is 10 years.
|
Accounting Philosophically
I'm Really Sorry |
In a recent conversation with a friend, we were discussing and lamenting the "state of the world". With news about Madoff, Blagojavich, joblessness, and multiple reports of shootings in various parts of the country, it was pretty easy to feel depressed and worried. But, my friend tends to be a philosopher, so he brought this part of our conversation to an end with the expression, "Well, I guess that if we tried to separate the saints from the sinners, we'd probably do well to come up with Mother Theresa." Now, what does this have to do with accounting? Frankly, I have no idea. BUT, the next part of our conversation focused on April 15 and, of course, income taxes - and continuing our lamentations, we couldn't help but wonder just how many "saints" out there would better fit into the "sinner" category when it comes to submitting their 1040s. Recent studies seem to indicate that if there is a single motivation for taxpayers to at least try to remain in the "saint" category, it is the fear of an audit. This, in turn, led us to talk about any "good news/bad news" associated with an audit. First, the "good news". This is the fact that, on an annual basis, only about 1% of the tax-paying population is audited. Of course, if we assume approximately 200 million taxpayers, this means about two million people will be notified. On the other hand, statistically speaking, the chance of an audit is pretty small. Now, the "bad news". This is fundamentally that if you receive an audit notice, you are basically "guilty until proven innocent". This is generally the approach typically taken by the IRS, but this is mainly because the audit was provoked by the submission of an "iffy" 1040 in the first place - and if we really think about it, the auditors are really just asking for more information. So, the "bad news" may not be so bad if you have the information. On the other hand, a lack of supporting information could definitely be "bad news". This led my friend to make another of his observations. This was, "If you are audited, and don't have the supporting information you need, then IRS will probably stand for, "I'm Really Sorry.". Interesting, huh? Let me know what your thoughts: Email me at william.vasquez@taxtalkonline.com
Accounting Philosophically is strictly a tongue-in-cheek observation and is not intended to reflect any political affiliation, lobbying cause, or other similar position. |
| Know the Basics
What Are the Pitfalls of Probate? |
Have you ever wondered what will happen to your business or estate after you die? How long will it take for your loved ones to receive the business or estate you've left them? Will each receive what you'd like them to have? If you're like most people, your estate will go through a lengthy probate process. Probate consists of the court proceedings that conclude all your legal and financial matters after your death. The probate court distributes your estate according to your wishes - if you left a valid will - and acts as a neutral forum in which to settle any disputes that may arise over your estate. The probate process we have today is based largely on the medieval English legal system. In feudal times, only powerful families owned land. These large estates were normally passed down from father to son. This transfer was naturally a matter of great political consequence, and thus of great interest to the king. So the proceedings were made formal, complicated, and costly. Over the years, while much of the legal system has been made easier and more accessible, the probate process has remained lengthy and complex. There are a number of problems with the probate process that make it worth avoiding. The probate process can take a great deal of time. The settlement time frame for many estates is from nine months to two years. Complex or contested estates can take much longer. With few exceptions, your heirs will have to wait until probate is concluded to receive the bulk of their inheritance. Of course, all the probate court's "help" with your affairs comes at a price. Probate can be very expensive. Depending on the state, probate and administrative fees can consume between 6 and 10 percent of your estate.1 That percentage is calculated before any deductions or liens are taken out. The proceedings of the probate courts are a matter of public record. Anyone with the time and inclination can go to the county courthouse and find out exactly how much you left to each heir and to whom you owed money. This leaves your heirs with little or no privacy. Fortunately, there are strategies you can use to avoid the probate process altogether. A trust may enable you to pass your estate on to your heirs without ever going through probate at all. Proper estate planning could enable you to pass your estate to your loved ones privately, without undue delay or expense. The information provided here is to assist you in planning for your future. The information in this article is not intended to be tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional advisor. | |
|
|
|
| Quick Links
Join Us On... |
|
|
 |
| The Simon Group
an Office of MetLife |
|
Our goal at The Simon Group is to actively help families, individuals and business owners build their financial freedom. We have the skills, the knowledge and experience required to help meet our clients' established goals. Our objective is to become a lifetime resource
| | |
