Phising Scams Revealed, "IRS" Emails to Avoid

I was checking my Email the other day, and I received a message that looked exactly like this:

Click image for full size

Looks pretty official, right? WRONG! This is a Phishing Scam, and apparently it's Phishing Scam season. Watch out for any Emails that ask for personal information or offer updates on your Tax Return status. The IRS never sends unsolicited Emails.

This Email puts a twist on the formula by "informing" the reader about a "country-wide phishing attack" and luring you to a spyware laden link at the bottom of the Email. But now you know better than to fall for these little tricks.

If you're not sure about any Email you receive, don't reply and don't click on any links in the Email. Simply delete it.

Rapper Snoop Dog The Latest Celebrity to Owe the Tax Man

Breaking News: This is not a Gossip Column, so why are you reading about celebrity Snoop Dog? It turns out that he's been added to the infamous California Delinquent Taxpayer's List. The rapper is accused of owing nearly $300,000 in back taxes.

The Scoop on Snoop Snoop Dog, real name Calvin Broadus, owes an estimated $284,053.59 according to leaked tax documents. I'm waiting to see if Mr. Broadus will try to defend his forgetfulness in the hilarious fashion that his fellow rapper Method Man did:

“Myself, I’m a pothead,” he admitted. “It’s no secret. Everyone knows that. I go on the road and forget everything else. Sure, [the IRS] sent letters to my house saying, ‘We need this money.’ They started sending them in 2002.”

By the way, Method Man's truck was taken from him last month as a result of a $50,000 debt in New York taxes. So don't get any funny ideas about using that particular defense.

No Shame? I just don't understand. How can millionaire celebrities not have the foresight to hire a competent accountant that would handle these IRS issues for them? Rich celebrities with connections and resources get in trouble with the IRS all the time. How can you or your small business stand a chance?

Top Tax Time Questions, What Happens After You File?

Got Questions? You did your job and filed on time. But now you have all kinds of questions. Instead of going directly to the IRS with your inquiries (and waiting forever for a response), read your answers here.

Can I receive my refund if I'm in a payment plan with the IRS for prior years?

The refund will be applied to the amount you owe. The IRS advises you to make your payment by the due date regardless, because the refund will not be considered a substitute for your payment.

How do I know if I have to file quarterly individual estimated tax payments?

According to the IRS, if you owed additional tax for the prior tax year, you may have to make estimated tax payments for the current tax year.

You must make estimated tax payments for the current tax year if:

- You expect to owe at least $1,000 in tax for the current tax year, after subtracting your withholding and credits.

-You expect your withholding and credits to be less than the smaller of:
o 90% of the tax to be shown on your current year’s tax return, or
o 100% of the tax shown on your prior year’s tax return.

For head of household filing status, do I have to claim a child as a dependent to qualify?

No, not if the qualifying child is unmarried and is your child, grandchild, stepchild or adopted child.

I made a mistake but I already filed, what should I do?
You can use Form 1040X to amend your U.S Tax Return if necessary. If you made a math mistake or left out a form, forget it. The IRS will correct these small errors for

My child is a full-time college student. If I claim them as a dependent, can they claim THEMSELVES as dependents when they file their taxes?

No, your child cannot claim themselves on their returns if you claim them.

More Questions? Still have more questions about the IRS or Tax Debt Issues? Feel free to send me an E-mail. I'm busy these at the office days, but I'll try to get back to you as soon as I can.

Buy a Home, Get a Tax Break- Everything You Need to Know About the First Time Home Buyer Credit

What is it? The First Time Home Buyer credit was included in the Housing and Economic Recovery Act of 2008. The credit was expanded in 2009. Now you can purchase a new home, receive the increased credit, and you don't have to pay it back! Here's the scoop.

The Low-Down

- Applies to purchases that close after April 8, 2008, and before December 1, 2009.
- Applies only to homes used as a taxpayer's principal residence.
- Reduces a taxpayer's tax bill or increases his or her refund, dollar for dollar.
- Is fully refundable, meaning the credit will be paid out to eligible taxpayers, even if they owe no tax or the credit is more than the tax owed.

How much? The credit is 10% of the purchase price of the home for a maximum amount of $8,000 for 2009 ($7,500 for 2008).

I'm interested, Sign me up! Claim the credit with IRS Form 5405 and file it with your 2008 or 2009 federal income tax return.

The Catch This is the IRS we're talking about, and there's always a catch. If any of the following applies to you, you cannot claim the new credit.

- If you income exceeds the phase-out range. $95,000 or $170,000 filing jointly.

- You buy the home from a close relative (spouse, parent, grandparent, child, grandchild)

- You're a non resident alien

- You sell your home before the year ends

- You are (or were) eligible for the District of Columbia first-time home buyer credit for any taxable year.

- You owned a home any time during the three years prior to purchasing the new home

And Remember you are not required to apply for this credit if you purchase a new home in 2008 on 2009. Don't want to bother with the paperwork? You don't have to. But it might be worth it to save up to $8,000 next year.

Small Business Tax Help from a Tax Attorney

Confession O.K, remember the blog entry I wrote about Tax Help for Small Business? My Partner in Crime Ronnie Hicks, a Senior Tax Attorney, expanded on the idea and did a better job explaining it than me.

Go Check it out!







Taxes are still a hot topic, so I'm still working overtime to write excellent articles and bring my knowledge to taxpayers in need. If you have any questions about your tax debt issues drop me a line and I'll get back with you on Monday.

Have a Happy and Safe Weekend Everyone!

I Didn't File my Taxes, Now What?

Didn't File? You're not alone. Many people don't file because they're scared they'll owe. Others know they owe but can't pay. But for reasons that should be obvious, this is never a good idea.

Jail Time I'll be honest and admit that few people have been thrown in prison over not filing their taxes. However, if the debt situation is severe, you run a higher risk of being attacked by the law.

Failure-to-File Penalty Don't file, and you'll pay. The Failure-to-File penalty is up to 25% of the balance (5% per month). Not to mention the other penalties and interest that accrue from not paying taxes. Depending on the amount you owe, this will do substantial damage to your bank account.



What Can Happen?

Wage Garnishment If you ignore your tax obligations long enough, the IRS may begin to seize funds directly from your paycheck to pay the debt owed. Chances are you will not be left with enough income to pay your bills.

Bank Levy The IRS can empty the funds in your bank account if necessary to pay for your debt. Once your bank receives the IRS's Notice of Intent to Levy your bank account, you only have 21 days before all of your money is gone.

Tax Lien A Tax Lien is public notification of your Tax Debt to your creditors. A Tax Lien will make it impossible to buy a new car, home, or anything that involves credit.



What Should You Do? Here are some options when you can't pay.

The Installment Agreement: This is a monthly payment plan that you setup with the IRS to pay off your debt. The right installment agreement can do a lot to prove your credit worthiness. However, if you owe more than $10,000, the IRS may attempt to pressure you into an unaffordable payment plan. In this case, getting help from a tax professional is in your best interest.

The Offer in Compromise: This program sounds almost too good to be true. It is real, but it is also the most difficult to get. Only 2% of applicants for an Offer even get approved. You will have to prove that you do not now or ever will have enough money to pay your debt in full. This means that even if you sold all of your possessions, you still would not be able to pay your debt.

Currently Non Collectible: If you’re completely broke, or you’re on a fixed income that covers only the most basic living expenses you can qualify for this. Keep in mind that it is only a temporary fix. The IRS will periodically review your income. If it improves, you will be looking at a larger debt and more collection actions from the IRS



To Summarize:

File NOW! Even if you can't afford to pay, get in compliance and file your taxes NOW. This is going to save you a lot of money in the long run. The IRS will not agree to any tax resolution until all of your required tax returns from the last 7 years are filed.

Can't Pay, Hire Help! If you have no way to pay the IRS in full, consider working with a Tax Attorney or Tax Relief professional to negotiate for a payment arrangement or even a settlement if you quality.

Tax Season Isn't Over for Small Business Owners, Ways to Keep From Owing the IRS

Deadline Passed The deadline to pay and file your taxes was already one week ago. Deadline passed, but this isn't the end of tax season, especially for Small Business owners. This year forward, the IRS will keep a close eye on Small Business Reporting.

Increased Collections Budget Despite their claims to become "Kindler" and "Gentler" the IRS is increasing their collections budget for 2009. In addition to the budget increase, the new budget for FY 2009 indicates the IRS's plans to target small business for revenue.

Targeting Your Business The IRS estimates that small business owners are the largest component of the $343 billion tax gap. This means they're after you! The IRS plans to increase enforcement initiatives to improve revenue reporting for Small Businesses and Self Employed individuals.

Preventing IRS Trouble

Hire an accountant: I often suggest working with a CPA or a reliable accountant. This is the best way to keep you from facing IRS issues in the future.

Pay the IRS first: You might owe everybody, but the IRS is only one that counts. Your credits might call you and annoy you, but the IRS will shut you down. So pay them first and foremost!

Stay in compliance: When you're a new business it is really tempting to use the payroll tax withholdings to make improvements to your business...BUT DON'T DO IT. Pay your payroll tax on time every time if you don't want to face devistating results.

Professions at risk of an audit Several professions have a high risk of being audited and eventually owing the IRS. These include:

- Doctors and dentists
- Attorneys and accountants
- Cash Intensive Businesses

Professional Help If doing all the IRS dirty work yourself is overwhelming, consider hiring a tax resolution professional to assist you with the process. That way you can focus on running your business.

Made a Mistake on Your Return? It's Not Too Late to File an Amended Tax Return

Made a Mistake? You filed your taxes by the deadline, but you rushed to get there. Now you’re worried about the mistakes you made that you didn’t have time to correct. Don't fret, it’s not too late to go back. You can make any changes or adjustments with an Amended Tax Return.

Reasons to Amend Your Return

-Reported the wrong filing status: You cannot change your Filing Status to Married Filing Single if you already filed jointly with your spouse.

-Reported the wrong dependents: Many people get into trouble with the IRS by reporting dependents they don’t actually have.

-Total Income Incorrect: It’s a good idea to file an amended Tax Return if you reported your total income incorrectly.

-Unknown Credits or Deductions: You can file an amended Return if you didn’t take advantage of credits or deductions that you could have.

Mistakes the IRS will automatically correct
Don't file an Amended Return for the follow mistakes, the IRS should automatically correct these mistakes for you.

-Math Errors: The IRS will automatically fix math mistakes on your behalf

-Omitted a Form? The IRS will automatically request any missing forms (like missing W-2s) if they are needed

Forms You'll Need:

-1040X Amended U.S. Individual Income Tax Return
-1040X Instructions (details which service center to send the amended return to)

You can use this to correct a previously filed Form 1040, Form 1040A, Form 1040EZ, Form 1040EZ-T, Form 1040NR or Form 1040NR-EZ.

Word of Caution: The instructions for Form 1040X warn that if you file a Form 1040x claiming a refund or credit for more than the allowable amount, you may be subject to a penalty of 20% of the amount that is determined to be excessive. Be careful when filing an amended return, and consult with a reputable professional if needed.

Top Filing Mistakes, Blunders Made at the Last Minute

I've featured my partner in crime, Ronnie Hicks on this blog twice before. He's the senior Tax Attorney, and he really knows his stuff. This time, he discusses the top mistakes made when you file your taxes at the last minute. This should be particularly helpful to all you late filers our there scrambling to file AFTER the deadline. Get to it!

I Filed, Now What? What Happens After You File Your Taxes

Filed on time? If you're one of the 80% of Americans that file on time, you're already ahead of the game. But now you're haunted by lingering regret. You're asking yourself, "Did I sign it...did I take advantage of the right deductions...did I write my name in wrong...where's my return...what should do?" Don't fuss, the IRS won't throw you in prison over an honest mistake.

Where's my Refund?
You want your money and you want it now. Don't worry, you can actually go online to check on the status of your 2008 refund. You can do this 72 hours after the IRS acknowledges receipt of your e-filed return, which is usually 3 to 4 weeks after you mail a paper return.

In order to check on your return status you need your filing status, the first SSN shown on the return, and the exact whole-dollar amount of the refund.

Three Options for Checking on your Tax Return Status:
• Go to IRS.gov, and click on “Where’s My Refund.” Accessible here for now.
• Call 1-800-829-1954 during the hours shown in your form instructions.
• Call 1-800-829-4477 (24 hours) for automated refund information.

Quick Warning, Phishing Scams: The time is ripe for scammers to fool the unsuspecting. If you receive an e-mail from the "IRS" asking for personal information in exchange for your tax refund or information on it's status, that is NOT an e-mail from the IRS. Never give your personal information by e-mail.

HELP, I Made a Mistake!
Small blunders on your Tax return may delay your refund or result in IRS notices coming in your mail. But don't stress out, you can file an Amended Return. Use Form 1040X, Amended U.S. Individual Income Tax Return.


5 Good Reasons To File an Amended Return

1. You left out some income
It's not too late to report the $50,000 you made working under the table. Report it, even if you work for the mob. That's how they caught Al Capone, you know.

2. You "accidentally" claimed deductions or credits that don't apply to you
It's not too late to turn back, cheaters! Just say it was an accident and now one will blame you at this stage in the game...

3. You found out there are some deductions or credits you could have claimed
There are plenty of new credits to take advantage of this year, so make sure you do it while you can.

4. You need to claim a different filing status.
Just found out your wife owes $20,000 to the IRS? Hurry, you can change your status to Married Filing Separately.

5. You want to claim the First Time Home Buyer credit on the 2008 return
Bought a home last year? Thinking of buying a home? You might be able to file an amended return to claim the First Time Home Buyer Credit ($8,000). You can claim this on the 2008 return or you can wait to claim it on next year's (2009) return.

Not the end of the world hopefully this answers some of your questions. If you made a small mistake, it's not the end of the world. You still have the time to change it. And don't be afraid to contact a CPA, Accountant, Tax Preparer of Tax Resolution professional if you have any questions.

Tax Season Isn't Over Yet, What to Do When You Owe the IRS

The Deadline Has Passed but you still can't pay your tax debt. For you, Tax Season isn't over. And if you owe a lot, Tax Season might not be over for a long, long time.

What to do When You Owe the IRS

1. File Anyway- You may have missed the deadline, but it's better to get something into the IRS than nothing. Many people think not filing will keep them off the IRS's radar, and subsequently keep them from owing the IRS.

But Remember, failure to file is illegal, not failure to pay. So file your taxes!

2. Really Look at Your Situation- If you have cash in savings or valuable assets, the IRS will not let your off easy. If you can afford to pay, write the check and pay up now. Don't think you can evade this.

3. Get a Loan or Charge it- If you qualify for a loan or you have cash on your credit cards, consider paying your debt with either option. This will prevent you from getting stuck with the IRS's sky high interest rate.

3. Settle it- For those of you that are new to the game, you do have the ability to settle your IRS Tax Debt- but don't get your hopes up. Few people qualify, fewer people have the resolve to finish the convoluted process. But for those that do qualify for an IRS Settlement, or Offer in Compromise, it's worth a try to potentially slash thousands off of your tax bill. Use IRS Form 656, Offer in Compromise

3. Pay in Installments- Can you pay your entire debt in monthly installments? If that's a possibility, consider paying your debt with an Installment Agreement. This isn't exactly like paying your creditors monthly. The IRS will choose the amount you pay. Additionally, you cannot default on your payments without expecting severe consequences. User IRS Form 9465, Installment Agreement Request

Need More Help? If you owe the IRS back taxes for 2008, right now is the crucial time to act. If you feel daunted by taking on the IRS on your own, right now is a good time to hire a professional to work on your behalf. Whatever you choose to do, make sure you act fast.

Taxes are Due Today, Very Last Second Tax Filing Tips

HELP! Your Taxes are due by midnight tonight. Depending on when you're reading this, that gives you a few precious moments to get your taxes out before the deadline. Don't give up, get moving!

Step 1: Mental Anguish and Punishment
This is a necessary, and perhaps, defining stage of the Ultra-Late-Tax-Filing Process. Bang your head on the desk and punish yourself for not doing this months ago. Finished? Keyboard intact? Good, on to step two...

Step 2: Get them DONE
Not even started yet? You might be out of luck. But if you can manage it, finish them off! It's better to get SOMETHING to the IRS than nothing to avoid the late filing penalties.

Step 3: Mailing It by Midnight
Doing your Taxes the old fashioned way? Find a nearby post office that is open until midnight, go here to do that. Although at this stage, filing electronically might be a good idea.

Step 3: File an Extension
Your Extension of Time to File Form is due midnight tonight. Download it here if you know you can't file on time.

Don't forget to include:

-Your Social Security Number, (and spouse's, if filing jointly)
-Estimated Tax Bill amount
-The amount of the check your including with your form if you need to include a payment.

You'll have until October 15th to file your taxes if you send in the extension of time to file. Remember, this is not an extension of time to PAY your taxes, they are still due tonight!

You can get more official IRS info on filing your extension here.

Payment Due Today You can delay filing your taxes, but you can't delay paying them! If taxes are due and you know you can't pay, FILE THEM, and include as much as you can pay, along with a letter explaining why you can't pay and how you intend to pay them. This might buy you a small window of time to contact a Tax Resolution Professional to help you solve your Tax Debt issues.

Choose the Right Tax Filing Status to avoid Big Trouble with the IRS

One Day Left: you might think it's too late to file on time by now. It's not, you have until midnight, April 15th. So if you haven't filed yet, do it now! Now back to my regularly scheduled programming...


Two Ways to Determine Filing Status

What is my Tax Filing Status? I'm getting this question a lot lately. Determining your Filing status is pretty simple. Your martial status on the last day of the year determines your status.

1. If you were unmarried the entire year, you do not qualify for another filing status. Your status is Single.

2. If more than one filing status applies to you, choose the one that gives you the lowest tax obligation.


The five filing status options:

1. Single. For those are are unmarried or divorced according to your state law.

2. Married Filing Jointly. Married couples have the option to file jointly. This can save money in some cases. If your spouse died during the year, you may still file a joint return with that spouse for the year of death. Just make sure you have all of the appropriate paperwork.

3. Married Filing Separately. If you wish to keep your finances separate or are working on getting a divorce, it's perfectly acceptable to file your returns separately.

4. Head of Household. There are some misconceptions about Head of Household. This usually applies to unmarried taxpayers, or taxpayers filing single. You need to have paid more than half the cost of maintaining a home for you and a qualifying dependent living with your for at least half the year to qualify for this filing status.

5. Qualifying Widow(er) with Dependent Child. According to the IRS, you may be able to choose this filing status if your spouse died during the previous two years, you have a dependent child and you meet certain other conditions.

Unclear if you still are unclear about any of the Tax Filing Status possibilities, consider consulting with a professional for a second opinion. Filing with the wrong status can cause delays for your return.

Answers For Your Last Second Tax Return Problems and Concerns

2 Days Left... that's right, taxes are due in two days. But don't worry, I have something you can LISTEN to while you get your tax paperwork together. My Partner in Crime, Ronnie Hicks (Senior Tax Attorney at) recently had a Guest Spot on The Eddie Farrah show, where he spent one hour answering taxpayer's pressing questions about Tax Debt and Filing Tax Returns. He did an amazing job, and I recommend you listen. You might find the answers to some of your questions.


Click Here to Listen to the Radio Show

Tax Questions, Issues, or Concerns? I'm here at the office to answer any Tax related questions, just e-mail me.

WarningBut, I do have to warn you, two days before the deadline is a little late in the game. And I'm going to be real with you when I answer your e-mails. Sometimes it will be too late to get the results you want. Sometimes your return will be delayed, and there's not much you can do about it. Just wait things out, or consider hiring a qualified professional to accelerate any process if necessary.

The Top 5 Things you Need to Know about Paying your IRS Taxes

Paying your Taxes on time? Good! You're one of the few that's on the right track, even if you're preparing to pay right now. (Which is a little late in the game, admit it.) For those of your that are preparing to pay the IRS, here's are the Top 5 things you need to know about paying your IRS Taxes.

1. Never send the IRS cash

Although this is a general rule for making payments by mail, maybe taxpayers still send cash in the mail!

2. Enclose your payment with your return, but do not staple it to the form.

It's never a good idea to make things harder for the IRS.

3. If you pay by check or money order, make sure it is payable to the “United States Treasury.”

... and not "The IRS," "Uncle Sam," or any of the colorful expletives you really want to write.

4. Complete and include Form 1040-V, Payment Voucher, when sending your payment and tax return to the IRS.

This helps the IRS process your payment accurately and efficiently.

3. Pay by phone

Of course, the IRS will make things as convent as possible for you when you're TRYING to pay. To that end, you can pay the IRS by phone using a credit or debit card whether you file a paper return or electronically.

Honorable Mention

This should go without mention, but since so many people forget to this important step, I have to include it. Don't forget to provide your CORRECT:

Name, Address, Social Security Number, Daytime Telephone Number, Tax Payer and Form Number on the front of your check or money order.

Thank God it's Friday O.K, so I don't get Good Friday off (Bad Friday?), but protecting the American Taxpayer is a Full Time job. I'll be out of the office early today, but I'll be back on Monday to help those who are clamoring to finish taxes before the deadline.

Have a Wonderful Easter Weekend!

Tax Due in less than 1 Week! Here's the Forms You'll Need

Deadline Approaches The deadline creeps closer and closer every day. From now until April 15th, I'll be posting tax filing hints and tips. This one is a bit of a recap, but I know most of you don't have time to dig through my archives to find the information you need.

Tax Filing Forms

Individuals: Form 1040, 1040A, or 1040EZ. Pay the first installment of 2009 estimated tax.

Partnerships: Form 1065 for 2008; give copy of Sch. K-1 to each partner.

Electing Large Partnerships: File a 2008 calendar year return.

For Household Employers: File Schedule H if you paid $1,500 or more to a household employee. Deadline to make corrective refunds in excess of prior year's elective deferral limit.

Corporations: Deposit the first installment of your estimated tax for 2009.

Small Business IRS Tip: Deposit Payroll tax for March if the monthly deposit rule applies. Deposit Payroll tax for payments on April 8-10 if the semiweekly deposit rule applies.

NEED HELP? I'm extremely busy here at the office, but if you have any questions at all e-mail me, and I'll point you in the right direction.

Taxes Due in One Week, Options When You Can't Pay by the Deadline

Can't Pay? You're not alone. With the currency economic downturn, thousands of taxpayers can barely cope. If you can't pay the full amount of taxes you owe, still file your return by the deadline and pay as much as you can to avoid IRS penalties and interest.

Here are some alternative payment options to consider:

Additional Time to Pay
If you have extreme of hardship circumstances, the IRS may grant a short "additional time to pay" your tax in full. Taxpayers can be granted an additional 30 to 120 days to pay the tax in full and will usually pay less penalties and interest than if the debt was paid through an installment agreement.

Installment Agreement
Since few people will qualify for Additional Time to Pay, you can always apply for an IRS Installment Agreement. This will allow you to pay the IRS in monthly installments. But watch out, you absolutely cannot default without serious penalties. And penalties and interest will continue to accrue on the account.

Credit Cards or Loans
If you have money on your credit card, use credit to pay the taxes in full. Additionally, you can use a loan to pay the IRS. The interest on credit cards and loans are lower than the IRS's interest rates.

Need Help? If you have a complicated tax issue and mountains of tax forms to go through, you might not make it to the deadline. Consider hiring a reputable professional to help you with the process from here. And next year, be prepared and file early!

Avoiding Tax Temptations: Fradulent Tax Filing Could Land You in Prison

A Pleasant Reminder, people tend to get a little more bold and desperate late in the Tax Filing season. But let me remind you, Fraudulent Tax Filing is never O.K. The IRS will find you, and when they do, you can face a jail sentence.

Review: The IRS trains their staff to keep a close eye out for common signs of Fraud.

They include:

- ridiculous or outstanding deductions
- claiming personal expenses as business expenses
- not reporting all of your income
- even numbers ($500.00, $5,000.00) as these rarely occur in real life

Watch out because a lot of people, even professionals, will tell you any of the above are alright to do, but don't fall for that! You could end up with criminal charges against you.

Don't Worry you can still make reasonable and normal deductions without worrying about prosecution. But the IRS just keeps an eye out for outstanding and unusual deductions, especially with Small Business in this arena. Cover your bases, and make sure you don't stretch the truth too far.

5 Last-Second Tax Filing Tips, File on Time and Avoid Tax Levies, Liens, or Worse!

Now Announcing the Last Week to File Your Tax Return

Still working on your Tax Return? Get with it and get the thing done! Taxes are due Wednesday of next week. To kick off the last week before taxes are due, I'm offering some Last-Second Tax Filing Tips. Get to work, procrastinators!

Tips for Last-Second Tax Filers All the Tax Filing Help you need

1. Double-Check everything
Particularly if you’re filing a paper return, it’s important to double check all of your figures to make sure your calculations are correct.

2. Mailing to the Right Place
Your tax package should include a coded envelope for mailing your return. If it doesn’t, check a section called “Where Do You File?” in the tax instruction booklet.

3. Sign Your Form
I know you must be tired of reading this, but it’s an easy step that so many taxpayers forget. If you’re filing jointly, you and your spouse must sign. Additionally, anyone paid to prepare your return must sign the form as well.

4. Electronic Filing
Filing electronically is a quick option. If you choose direct deposit, your refund could be deposited in as little as 10 days. However, you still have to double check your electronic form to make sure everything is filed correctly. You cannot blame tax filing software for any errors that may occur!

5. Hire a Professional
Let’s face it; you’re almost out of time. At this point, hiring a Tax Professional is a wise investment. A Tax Resolution company or reputable CPA can handle complicated returns with ease, keeping you out of trouble with the IRS.

Still Need Help? I’m mentoring on taxes and tax debt every day this week, but I should have a window of time in the afternoon to check my e-mail. If you have any questions, e-mail me. I’ll point you in the right direction.

Top 10 Common Tax Returns Errors

It's Here: Tax Time is back. I'm sure many of your are scrambling to finish your Taxes before the deadline. (APRIL 15!!!) And when you rush, mistakes are inevitable. So sit down for the second, relax, and read these Top 10 Common Tax Return Errors. Commit them to memory if you don't want to get audited, or worse!

1. Sign Your Names As the IRS puts it, a unsigned return is the same as an unsigned check. INVALID! Filing Jointly? Make the Spouse sign, too!

2. Incorrect or misspelling of dependent’s last name - The dependent's name must be spelled exactly as it appears on their social security card.

3. Recovery Rebate Credit - This is an important one, as many returns filed in 2009 have errors involving the Recovery Rebate Credit. This is a credit for people who:

-DID NOT RECEIVE A STIMULUS PAYMENT IN 2008, or
-DID NOT receive the MAXIMUM amount.

You need to know how much you received as a stimulus payment for 2008. Go here to find out how much your stimulus payment was.

4. Incorrect or missing social security numbers - Any Social Security Numbers listed on the Tax Return must be entered exactly as it appears on the Social Security Cards. Double Check!

5. Incorrect bank account numbers for Direct Deposit - You want your money! Check and double check your routing and account numbers.

6. Filing status errors - Do you research and make sure you choose the correct filing status for your situation.

7. Math errors - Get your calculators out and make sure you review all addition and subtraction. This is one of the easiest ways to make a mistake. When you file electronically, the software takes care of things for you, but you can't blame Turbo Tax if your taxes don't get paid! Double check electronic returns as well.

8. Computation errors - Here's where the IRS sees the most computation errors:

-Taxable Income
-Withholding and Estimated Tax Payments
-Earned Income Credit
-Standard Deduction for age 65 or over or blind
-The taxable amount of social security benefits
-Child and Dependent Care Credit

9. Incorrect Adjusted Gross Income information - Electronic returns require identity verification with a personal identification and your AGI number. AGI is the Adjusted Gross Income amount for your 2007 federal tax return. You can't use an AGI amount from an amended return, Form 1040X or a math error correction made by the IRS.

-If you filed electronically last year you can use your prior year PIN.

10. NOT working with a Professional - When people have very complicated IRS Problems, I'm earnest with them. I tell them to bite the bullet and hire a reputable CPA or Tax Resolution Professional. You will not regret this investment. Frustrated individuals are so much more likely to ignore the issue, making things worse.

We Hate Delays: Errors on Tax Returns delay processing, and errors made on Tax Returns will delay your return check! Avoiding these common errors will help ensure your refund arrives on time.

I know things may be a little confusing, so I'm here to help. I'll be back in the office on Monday to answer any IRS questions you may have. Have a happy and safe weekend!

Important IRS Dates for April, 2009

To help you out, I'm providing some other important dates to mark off on your calendar for the month of April.



April 1

Initial Minimum required distribution from IRAs and retirement plans for participants who turned 70 1/2 in 2008.



Small Business IRS Tip: Deposit Payroll Tax for payments on Mar 25-27 if the semiweekly deposit rule applies.



April 3

Small Business IRS Tip:Deposit Payroll Tax for payments on March 28-31 if the semiweekly deposit rule applies.



April 8

Small Business IRS Tip:Deposit Payroll Tax for payments on April1-3 if the semiweekly deposit rule applies.



April 10

Employers: Employees are required to report to you tips of $20 or more earned during March.



Deposit Payroll Tax for payments on April 4-7 if the semiweekly deposit rule applies.



April 15

TAXES DUE!!!



April 20

Small Business IRS Tip: Deposit Payroll tax for payments on April 11-14 if the semiweekly deposit rule applies.



April 22

Small Business: Deposit Payroll tax for payments on April 15-17 if the semiweekly deposit rule applies.



April 24

Small Business IRS Tip: Deposit Payroll tax for payments on Apr 18-21 if the semiweekly deposit rule applies.



April 29

Small Business IRS Tip:Deposit payroll tax for payments on April 22-24 if the semiweekly deposit rule applies.



April 30

Small Business IRS Tip: File Form 941 and 720 for the 1st quarter of 2009. File Form 730 and pay the tax on wagers accepted during March. File Form 2290 and pay the tax on vehicles first used in March. Deposit FUTA tax owed through March if it's more than $500.



Need a Calendar? I've got you covered. Click here to download your April IRS Important Dates Calendar. OR you can download the IRS's PDF version here.



Need Help? Like I stated in my last post, I'll be working overtime from now until April 15. If you need help with your taxes, now is the time to ask. Feel free to e-mail me and I'll point you in the right direction.

Good News, You Don't Have to File Your Taxes!

Actually...you DO have to file and pay your taxes. Sorry for the little April Fools gag, but there's no escaping your tax obligations. You have less than 15 days, the clock is ticking.

April 15, TAXES DUE!!!!
Here's the drill...

Individuals: Form 1040, 1040A, or 1040EZ. Pay the first installment of 2009 estimated tax.

Partnerships: Form 1065 for 2008; give copy of Sch. K-1 to each partner.

Electing Large Partnerships: File a 2008 calendar year return.

For Household Employers: File Schedule H if you paid $1,500 or more to a household employee. Deadline to make corrective refunds in excess of prior year's elective deferral limit.

Corporations: Deposit the first installment of your estimated tax for 2009.

Small Business IRS Tip: Deposit Payroll tax for March if the monthly deposit rule applies. Deposit Payroll tax for payments on April 8-10 if the semiweekly deposit rule applies.

NEED HELP? It's Tax Time, and I'm working overtime. If you have any questions at all e-mail me, and I'll point you in the right direction.