Preparing for a Meeting About Your Taxes - Basic Tax Responsibility

Courtesy: IRS Video Portal

The Power of the Notice of Federal Tax Lien - Taxpayer Advocate Service

Courtesy: IRS Video Portal

Offer in Compromise | IRS Tax Debt Relief

Courtesy: David Jacqout, Tax Attorney

The ultimate goal of an Offer in Compromise is a settlement, reduction and/or elimination of the tax liability that is in both the Government's and the taxpayer's best interest.

The IRS will accept an offer-in-compromise to settle unpaid accounts for less than the amount owed when there is doubt that the liability can be collected in full and the amount you offer reasonably reflects collection potential. IRC §7122 authorizes the IRS to reduce any tax liability.

To submit an offer-in-compromise you must complete Form 656; complete instructions are provided on the form. Also, you must submit Form 433-A, Collection Information Statement for Individuals, or Form 433-B, Collection Information Statement for Businesses, if the basis of the offer is doubt that the liability can be collected in full. These forms provide a statement of your income, expenses, assets, and liabilities.

The IRS will not accept an offer unless it is clear that you have complied with all current filing requirements.

What are acceptable sources of funds for Offer-in-Compromise Form 656 section 7?
-- Money from any type of source including but not limited to: 401(k) loans, loans from family and friends, sale of assets, refinance with a lien subordination request if feasible, accounts receivable factoring, credit card loans, etc...

Personal Income Taxes - A Visual Explanation

This is an informative video.  Caveat:  Under US income tax law, Alimony IS TAXABLE to the recipient (and deductible by the payer).

Owe Taxes But Can't Pay?

Locate the closest Authorized IRS e-file Providers in your area where you can electronically file your tax return. Once you get to the irs.gov link below, simply enter your Zip Code in the box and click the Submit button!

courtesy:  Authorized IRS e-file Provider Locator

Selling Your Home

video courtesy: IRS Videos

IRS Deadline for Foreign Financial Accounts Reporting is June 30, 2012

IRS Deadline for Foreign Financial Accounts Reporting is June 30, 2012

• (PRWEB) June 15, 2012 Thompson & Associates, CPAs, LLC, a leading Atlanta CPA firm, warns that the deadline for reporting Foreign Financial Accounts (FBAR) is June 30, 2012. For individuals, corporations and foreign banks, the IRS is determined to enforce reporting of financial account information and income through foreign banking and financial institutions. As a result, the Foreign Account Tax Compliant Act (FATCA) and the Report of Foreign Bank and Financial Accounts (FBAR) could affect millions of people in the U.S.
• The FBAR isn’t a new filing requirement nor is it a tax return. Initially implemented by the Bank Secrecy Act in 1972, the form is used to report financial interest in, or signature authority over, one or more financial accounts located in foreign countries. Generally, if a taxpayer has signature authority over one or more financial accounts in a foreign country and the total of the foreign investments exceed $10,000, then taxpayers are required to file. The form includes the taxpayer’s account information as well as the average daily balance and the highest balance for the year. The form must be RECEIVED by the IRS no later than June 30 of each calendar year, not just mailed by that date.
• The penalties for not reporting are severe. Taxpayers who fail to file because they did not know can receive a civil penalty of $10,000 per violation. Knowingly violating the reporting requirement carries an even larger penalty of the greater of $100,000 or 50% of the account balance. Additionally, the IRS may evoke criminal penalties including a fine of up to $250,000 and imprisonment of 5 years.
• The IRS is taking the issues of penalties quite seriously and does not allow taxpayers to merely put their head in the sand. Under the Internal Revenue Manual, a “willful blindness” may constitute “knowingly” violating the reporting requirement.
• FACTA takes the FBAR one step further and generally requires taxpayers holding foreign assets with an aggregate value of more than $50,000 to report certain information concerning those assets on an IRS form 8938. This form was required for the 2011 tax year, thus reporting started in 2012, is required to be filed the date the taxpayer’s return is due.
• With regards to penalties under FATCA, there is an initial penalty of $10,000 per violation that jumps to $50,000 if the taxpayer continues to not report after notified by the IRS. Additionally, if any underpayments of tax are attributable to the non-disclosed funds, the IRS imposes a stiff 40% understatement penalty.
• FACTA rules extend beyond reporting requirements by taxpayers to the IRS for financial assets greater than $50,000. It requires foreign financial institutions (FFI) to report to the IRS all financial accounts held by U.S. Taxpayers and for resident aliens in the United States, if the balances in such accounts exceed $50,000. If a FFI refuses to be compliant with the law, they face a stiff withholding tax of 30% on all relevant US-sourced payments paid to them.
• The impact of these new laws will be far reaching, particularly in well-known of offshore banking locations such as the Caribbean, Luxembourg, Singapore and Hong Kong. The law requires FFI reporting to commence in the first quarter of 2014. Thus, count on the IRS knowing about taxpayer’s foreign financial accounts by 2014.

Courtesy: Thompson & Associates CPAs. Written in conjunction with Bomar Rice, LLC, Atlanta Tax Law Firm, the entire article may be found at Thompson & Associates CPAs

Tuna salad - a' la Poisson Cru (Tahitian style) Recipe

Tuna salad - a' la Poisson Cru (Tahitian style) Recipe
Ingredients:
▪ 1 cup coconut milk (fresh is best)
▪ 3/4 cup fresh lime or lemon juice (or a mix of both)
▪ 2 tomatoes , chopped
▪ 1 red onion, chopped
▪ 1 cucumber , chopped
▪ 1 carrot , shredded
▪ 1 green bell pepper thinly sliced (optional)
▪ 1 bunch spring onion or parsley (optional)
▪ 1 lb tuna
▪ 1 tsp sea salt
▪ Freshly ground pepper

Directions:
▪ combine ingredients in glass bowl
▪ let marinate for 15 minutes
▪ drain excess liquid
▪ serves 4 plates

Egg Salad Supreme Recipe

Egg Salad Supreme Recipe
Ingredients:

• 1/3 cup plain yogurt 
• 2 tbsp Dijon-style mustard 
• 1 tsp lemon juice 
• 1/2 red onion, minced 
• 1 can (6 oz.) chunk chicken, drained
• 8 hard boiled eggs, chopped
• 1 cup fresh spinach leaves, chopped
• 1/2 cup celery, chopped
• 1/2 tbsp capers, drained - optional

Ohio waitress gets US$434,000 tax return

A US waitress expecting a $750 tax return instead received a cheque for more than $400,000 after a mistake by the US tax office.

Virginia Hopkins is used to getting big tips after 19 years working at a restaurant in Cleveland, Ohio, but was never expecting such a windfall.

Ms Hopkins was hoping for enough money to fix her car, but instead was issued a cheque for US$434,712.

"I think I would have to work most of my life to earn that much money, even with undeclared tips," she told US network ABC."

Rather than cashing the cheque, Ms Hopkins decided to return it to the internal revenue service (IRS), even though they insisted she provide photo ID before they accepted it.

"It's not easy being poor after you've been rich," she said.

She is still waiting for her US$754 tax return.