Tax Career Fair is Tomorrow!

A Career Fair with work in the Tax Field will be hosted tomorrow, January 30, 2010. It will be held from 9AM to 1PM. Here's the Scoop:

Contact: Rod DeMontmorency/Erin Bailey
(904)309-8180
Website

In this challenging and competitive job market, Our need for qualified employees remains in demand. This company is experiencing a growth level that requires the hiring of 120 more people within the next 90 days. “We are excited to host a career fair in such a soft job market” said Dwayne Harmon, Vice President of Operations for the firm. “As our organization grows so rapidly, our employment and leadership needs have become more urgent, which is great for the community.”

This Tax Company extends the invitation to meet directly with their Hiring Team at their in-house Career Fair, Saturday January 30th from 9 a.m. to 1 p.m. We are aggressively recruiting for Sales Consultants, Account Managers, Tax Analysts, Customer Care Representatives, Attorneys, and Management positions. “We believe that your work should be more than a job. It should be an investment in your future and ours. Right now, we are in need of employees eager to be part of a thriving organization. Our focus is on individuals with the desire and drive to be part of a team dedicated to helping people while evolving within our corporation.” said Rod deMontmorency, Director of Recruiting.

We continue to be one of the fastest growing companies in Florida, offering excellent compensation plans, extensive benefits, and a progressive work environment. Don’t miss out on your chance to be part of that growth, Saturday January 30th, 9 a.m. to 1 p.m.

For advance consideration, please e-mail your resume.

IRS Tax Debt: Learn the IRS's System and Rid Yourself of IRS Debt

Deep in Debt? You're not alone. Most everyone experiences a problem with the IRS. Even if you pay on time, the IRS can still come knocking. How can that be? Why do innocent Taxpayers have the IRS on their back? Because the IRS's system is flawed.

The Flawed System:

Unreliable Technology: Computer glitches. The system the IRS uses to aid them in the collections process is called the “Automated Collections System” (ACS). It's this computer system that automatically sends notices out. People still have to enter your data into these computer systems. This is where mistakes can start.

Rules, Rules, Rules: IRS rules are constantly changing. Every year new Tax Laws are approved. In fact, America has the most complicated Tax Laws in the world. No citizen can be expected to understand them all. Not even the IRS understands them all.

Civil Servants: IRS workers don't work with passion. They work by the book. They follow the codes of what they are required to do, and that's it. So what happens when you have a detailed question about your specific case? They filter you from one department to another. Days can pass and your questions will still be unanswered.

Winning the Game:

You Have Access to Your IRS Files
Play detective. You can “Spy” on the IRS and see what their computers say about you. Your IRS computer account will show the dates you filed your tax returns, any penalties and interest payments you've made, and any issues you've had with the IRS. To get a copy of your account, call the IRS and ask for your Master File Transcript (MFTRA). If you can't, call an Attorney or a Tax Professional to help you.

You Have Access to the IRS Laws
The IRS's official website has all the IRS laws available for you to download. But keep in mind, the Tax Code expands multiple thousands of pages. Don't attempt to understand the whole code, it won't be light reading.

Open to Interpretation
Some Tax Rules are unclear. You may have the opportunity to win a case against the IRS. For instance, it's illegal for the IRS to seize tools for work. If your 2nd car is a tool you use for work (Ex: You're a delivery man) you can prove that to the IRS and keep your car when the IRS is trying to seize your property. But beware, the IRS can try to use the rules in their favor as well!

IRS Conditional Expenses- How to pay the IRS and your Debtors

A Conditional Expense is an expense that is not a necessary living expense. A rule of thumb for determining if an expense is this:

If the expense is not necessary for you to live, it's a Conditional Expense.

A Conditional Expense are expenses like credit card bills, additional car payments, money sent to family living overseas, or college/private school tuition. These expenses may seem necessary to the client, but not to the IRS.

The IRS wants to be paid first.
There are Two Rules to look at to determine if the IRS will allow the Conditional Expense(s).

1. One year rule
The one year rule allows you to continue paying for your Conditional Expenses for one year if you meet the Five year Rule (below).

2. Five year rule
The Five Year rule states that you must full pay the IRS before the end of the Collection Statutes Expiration Date (CSED) or before the five year period ends, whichever is shorter. For most, the 5 year period will be shorter.

On Necessary Medical Payments
The IRS National Standard for out-of-pocket Medical Payments is $60.00. You might be paying more than $60.00 for out-of-pocket medical expenses. If you can prove that you must pay more than the National Standard for the well-being of you or a family member, the IRS will be required to allow the expense.

Applying for a Payment Arrangement with Conditional Expenses

The IRS may allow you to pay different amounts for each year of the "five year period" as long the payments add up to the full debt about before the statute of limitations on the debt expires (or before the end of the five year period). The trick will be convincing the IRS to allow the Conditional Expense. If you're having trouble working with the IRS, consider consulting with a professional.

Tax Defense Network's Career Fair Updates

News of Tax Defense Network's upcoming Career Fair has reached the The Jacksonville Business Journal, Yahoo News, and AOL. We're excited to provide so many opportunities with our upcoming Career Fair. We wanted to take time out to answer some of the frequently asked questions:

1. When does the Career Fair take place?

The Job Fair is on January 30, 2010. It's from 9AM to 12PM.

2. What should we wear?

Dress for success. You should wear your business attire.

3. Do we need to bring anything?

Bring your resumes and a great attitude!

4. What positions are available?

We are recruiting for Sales Consultants, Account Managers, Tax Analysts, Customer Care Representatives, Attorneys, and Management positions.

5. Are these temporary positions?

We're hiring for permanent, full time positions.

If you have further questions, please send them to us at jobs@taxdefensenetwork.com. The recruiters will be glad to take any questions.

IRS Tax Problems: Are You in Danger of Being Audited by the IRS? You May Be Surprised

IRS Tax Problems: Are You in Danger of Being Audited by the IRS? You May Be Surprised
Advanced Technology: The IRS has upgraded. Taxpayers audited by the IRS are now selected by computers, not human beings. The computers run a fine toothed comb over tax returns, searching for irregularity. If the computer determines something is wrong, the tax return will be selected to be audited (reviewed.) But there's something you may like to know: some taxpayers are more likely to be audited than others.

Work Here?
If you work in any of the following fields, you're more likely to be audited.

- People who work in cash intensive businesses: People in this line of work, such as Hairstylists, will often not report their entire income. Thus, people in this field of work will often be audited. Be careful, and list all of your income. Even your tips.

- Business Owners: This includes accountants, lawyers and doctors who run their own business and do their own bookkeeping.

The Hints:
If IRS computers catch any of the following being done on your tax returns, you are likely to be audited.

- Unusual Deductions: Taxpayers who make large and unusual deductions are easily spotted by IRS computer. So only make sure your deductions are justified before you submit them!

- Drastic Income Change: The computers look out for rare and odd income reporting. It's strange when income changes dramatically from year to year. It's strange when there are lots of round numbers on a report, like 1,000 (these are rare in real life). If your income is low compared to the where you live and what you have to pay, this is another red flag. Incomplete returns are also more carefully scrutinized.

- Medical Deductions must exceed a certain amount of your income or they can not be claimed.

- Charity deductions and home office deductions are the ones that are going to be questioned the most as these are the hardest deductions to prove.

Listed Above? If you are listed above, watch out. The IRS is watching you more closely than others. But even if your are not a doctor, hairdresser, lawyer or accountant, you are not safe. If you commit Tax Fraud, it's only a matter of time before the IRS finds you. Watch your back.

The Complete Tax Filing Guide Part 5- Tax Credits

Tax Filing Season is upon us yet again. Most employees have already received their W-2s, the rest should get theirs before January 31st. As soon as you get your W-2, it's time to file your taxes.

This week, from January 18-22, I'm going to go over all the important Tax Forms and documents needed to file your Taxes. Today is part five, Tax Credits.

Common IRS Tax Credits for 2009

Tax Credits will reduce the amount of tax you owe the IRS dollar-for-dollars. If you don't owe the IRS, Tax Credits are occasionally refundable (like the First Time Homebuyer's Tax Credit). You'll need the following to claim most tax credits:

-Tuition receipts and expenses

-Adoption-related expenses

-The Social Security numbers and birth dates for non-dependents who might qualify you for the Earned Income Credit

- Child and Dependent Care Information, such as proof of care expenses paid, and care provider's address, social security number, and employee ID number

-Retirement plan contribution statements

-Receipts and manufacturer's certifications for energy-efficient purchases that qualify

-Records of any foreign taxes paid

-Manufacturer's certifications fro hybrid and fuel efficient vehicles

This Five Part Complete Tax Filing Guide is concluded today. I've covered all the ways you can claim deductions and credits to save big with the IRS, and what you need to claim them. The Five Part Complete Tax Filing Guide may be concluded, but I'll continue to write about the latest tax filing news, advice, and tips all tax filing season. For now, here's the previous four chapters:

-The Complete Tax Filing Guide Part 1- Documents Determining Income
-The Complete Tax Filing Guide Part 2- Documents for Common Tax Deductions
-The Complete Tax Filing Guide Part 3- Itemized Deductions
-The Complete Tax Filing Guide Part 4- Basic Standard Deductions for 2009

The Complete Tax Filing Guide Part 4- Basic Standard Deductions for 2009

Tax Filing Season is upon us yet again. Most employees have already received their W-2s, the rest should get theirs before January 31st. As soon as you get your W-2, it's time to file your taxes.

This week, from January 18-22, I'm going to go over all the important Tax Forms and documents needed to file your Taxes. Today is part four, Basic Standard Deductions for 2009.

Basic Standard Deductions for for 2009

A little known fact is that most taxpayers will qualify for a no-questions-asked write-off that will reduce their taxable income. This will vary depending on your filing status. Here's the Basic Standard Deduction amounts for 2009:

$5,700 if you're Filing Single
$11,400 if you're Filing a Joint Return
$5,700 if you're Married Filing Separately
$8,350 if you file as Head of Household

Final Tip: Different rules will apply to dependents. Don't forget to claim your No-Questions-Asked tax write-off when you file this year.

The Complete Tax Filing Guide Part 3- Itemized Deductions

Tax Filing Season is upon us yet again. Most employees have already received their W-2s, the rest should get theirs before January 31st. As soon as you get your W-2, it's time to file your taxes.

This week, from January 18-22, I'm going to go over all the important Tax Forms and documents needed to file your Taxes. Today is part three, Itemized Deductions.

Common Itemized Deductions for 2009

Some purchases made during the year can be used to reduce the amount of income you're taxed on. You can itemize your deduction, which requires you to list each item, it's cost, and substantiation to prove you paid for the item- or you can use the IRS Standard Deduction Amount. Some Deductions must be itemized as a requirement, like Charitable Contributions. The most common Itemized Deductions include:

- Home mortgage interest
- Real estate taxes
- State and local income taxes
- State and local sales taxes
- Personal property taxes
- Charitable contributions
- Medical and dental expenses
- Tax preparation fees
- Investment interest
- Employee business expenses
- Casualty and theft losses

You can claim anything listed above as a deduction and list it as an itemized deduction. It's important to research any limitations before claiming a deduction, you might not qualify to claim it.

Final Tip: The total amount you can deduct begins to phase out if your adjusted gross income is more the $166,800 (or $83,4000 if you're married filing separately).

The Complete Tax Filing Guide Part 2- Documents for Common Tax Deductions

Tax Filing Season is upon us yet again. Most employees have already received their W-2s, the rest should get theirs before January 31st. As soon as you get your W-2, it's time to file your taxes.

This week, from January 18-22, I'm going to go over all the important Tax Forms and documents needed to file your Taxes. Today is part two, Documents for Common Tax Deductions.

Common Deductions for 2009

First-Time Homebuyer Credit- Claim the First-Time Homebuyer Credit with Form 5405. I'll cover Popular 2009 Tax Credits more extensively in a later post.

Charitable donations- you can claim charitable donations, volunteer expenses, and even out-of-pocket mileage costs as tax deductions. Be sure to itemize these deductions and provide substantiation for the IRS.

Student loan interest- Claim student loan interest on Form 1098-E. You can take this deduction even if you're not itemizing your Tax Deductions.

Traditional or Roth IRA contributions- Traditional IRS contributions may or may not be tax deductible. This depends on the amount of income you made for the year and whether you participated in a retirement plan.

Home mortgage interest- Interest and points on your home mortgage or a home equity loan may qualify as a Tax Deduction. Claim this deduction on Form 1098.

Vehicle tax or personal property tax- As part of new tax laws enacted this year by congress, Tax paid on a car, truck, boat, motorcycle, or property other than real estate could qualify for a Tax Deduction. IRS Publication 17 has the facts you need on this new Tax Deduction.

Sales Taxes paid on a new vehicle purchased after February 16, 2009- If you bought a qualifying vehicle anytime between February 17, 2009 and December 31, 2009 you can deduct the state and local sales taxes paid. You're not required to itemize to claim this deduction.

Tax Deduction Tip: Be sure you qualify for any deduction before you claim it. Each Deduction has specific qualifiers that you need to review carefully. Don't get careless and wind up in IRS Debt just because you wanted to save a little dough this tax season.

The Complete Tax Filing Guide Part 1- Documents Determining Income

Tax Filing Season is upon us yet again. Everyone will receive their W-2 forms on or before January 31st. As soon as you receive your W-2 form, you may have all of the information you need to get a head start and file online.

This week, from January 18-22, I'm going to go over all the important Tax Forms and documents needed to file your Taxes. Today is part one, Documents for Determining Income.

To find out about your Taxable Income for 2009, you’ll need any of the following:

W-2s - Get this from your HR or Payroll Departments. They will likely distribute W-2 forms voluntarily before January 31st, if they don't, be sure to see them to retrieve your form.

Form W-2G- this form is used to report income and withholding related to gambling. Use Form W-2G if you receive:

• $600 or more in gambling winnings and the payout is at least 300 times the amount of the wager (except winnings from bingo, keno, and slot machines);
• $1,200 or more in gambling winnings from bingo or slot machines;
• $1,500 or more in proceeds (the amount of winnings less the amount of the wager) from keno; or
• Any gambling winnings subject to federal income tax withholding

Include records of any gambling income.

Form 1099-INT- This summarizes your income earnings for the year. This form is also used to report other tax items related to your interest income, such as early withdrawal penalties, federal tax withheld and foreign tax paid.

Forms 1099-MISC-records for business or side job income and expenses

Form 1099 OID- Form 1099 OID is intended to be an annual recognition of estimated amortized interest resulting from buying a debt instrument such as a bond or CD at a discount.

Schedule K-1- Schedule K-1 is used to report a beneficiary's share of income, deductions, credits, and other items from trusts or partnerships.

Forms 1099-DIV- Form 1099-Div is used to record all taxable capital gains and dividends paid to an investor, including those that have been re-invested for that tax year. The form is sent by investors or by investment fund companies.

Form 1099-B- Brokers and barter exchanges must report proceeds from
transactions to you and the IRS on Form 1099-B.

Form 1099-R- Generally, distributions from pensions, annuities, profit-sharing
and retirement plans (including section 457 state and local
government plans), IRAs, insurance contracts, etc., are reported
to recipients on Form 1099-R.

Form RRB-1099- The Form RRB-1099 tax statement is issued by the U.S. Railroad Retirement Board (RRB) and represents payments made to you in the tax year indicated on the statement.

You will need to determine if any of the railroad retirement payments made to you are taxable.

Form SSA-1099- Form SSA-1099 is used to report to you any Social Security benefits that you may have collected during the year. If you elected to have taxes withheld, it will also show this amount.

Be sure to include documents to prove all income received for 2009. Don't attempt to hide income earned, because the IRS WILL find out. Be honest when you report income to avoid Tax Debt issues in the future.

IRS Notice in the mail? New IRS Notices Are Easier on Taxpayers

It's never Good News to get an IRS Notice in the Mail, especially if it's Notice of Intent to Levy. But at least new IRS notices are easier for taxpayers to understand. Here's the update:

• The long-standing IRS Forms are confusing. The average taxpayer couldn't understand all the legal jargon. They couldn't figure out how to contact the IRS.
  
  
• Nine new notice designs have been released. The IRS hopes that the new forms will improve communication between them and the taxpayers.
  
  
• David Tucker at the IRS says the IRS intends to revise and issue more forms in the near future. Stating:
  
  "This will continue to expand to other notices as we want to continue to improve and streamline how we communicate with our taxpayers. We're always looking for ways to increase operational efficiency and so this is one of the ways we want to do that. We want to be more effective in our communication."

These improvements are long overdue. Streamlined IRS Notices will help the client understand exactly what they owe and how they should contact the IRS. It's a small step, but it's a step in the right direction for the IRS.

Only nine new notices were released. Until then, taxpayers are stuck with a convuluted notice system. Contact a tax professional if you're unsure of any IRS notice you receive, or look it up the notice number on the IRS official website.

3 Little-Known Tax Tips to Follow for 2010

New Tax Breaks: Congress passed several new Tax Laws to help taxpayers struggling in this economy. Knowledge of some of these Tax Breaks can save you money on your 2009 taxes. Here's Five Little Known Tax Tips to Follow for this Tax Filing season.

Tip 1: Watch The Making Work Pay Credit

The American Recovery and Reinvestment Act passed the Making Work Pay Credit. Instead of giving taxpayers a separate rebate check, this credit began to show up in paychecks last April. At the end of 2009, those eligible may have received up to $400 for this credit.

This is a good thing, but you need to watch out. Some of you got more than you should have. This could have easily happened if you had two jobs and got the $400 credit at both jobs. The same scenario applies to husband and wife who each ad jobs- they might have received excess credit.

What to do: Fill Out Schedule M to reconcile any credit overages. Simply fill out the form to see what you might need to pay back to the IRS. Also, consider adjusting your withholding now for 2010 to prevent this issue in the future.

Tip 2: Convert Your Traditional IRA to a Roth

New tax laws allow anyone to convert their traditional IRS to a Roth retirement account. Before, shifting tax-deferred traditional money into a tax-free Roth plan wasn't available if you had an adjusted gross income of $100,000 or more. The income limit is now removed.

If you decide this is the right retirement move for you, note that you'll be required to pay taxes on the previously untaxed amounts you convert. The good news is you can opt to pay half the conversion costs on your 2011 taxes, with the remainder in 2012.

Tip 3: Take Advantage of Home’s Energy Efficiency Credits

Thanks to another portion of last year’s stimulus bill, the tax savings for energy-efficient home improvements were improved.

The bill was greatly simplified, now homeowners can claim up to 30 percent of the first $5,000 spent on qualifying residential energy upgrades, or up to $1,500 in tax credits. Going Greener and installing bigger items, like a solar home heating system, can result in even biggest tax credits.

The new credit format took effect last year, but is running through 2010. We don't know if this will be the last year, so if you're in the market for home improvements, consider energy-efficient upgrades that could pay off at tax-filing time.

Final Tip: If you're unsure of which direction to take when filing your taxes, you might want to consult with a reliable professional. Do your research and make sure you don't make matters worse by trying to claim a credit you don't qualify for.

Recieve your Tax Refund as a Savings Bond for 2009 Taxes

Starting Now- you can buy Series I U.S Savings Bonds with your Tax Refund. These Series I bonds are issued by the Department of Treasury, they're low-risk and grow in value for up to 30 years. Additionally, these bonds earn interest.

How to Buy Savings Bonds with your Tax Refund
The task is easy. Tell your Task Preparer that you want to buy savings bonds with your Tax Returns. It can be part of your returns, or all of it. If you prepare your own Return, file Form 8888, Direct Deposit of Refund into More Than One Account. The form instructions will guide you the rest of the way.

Is there a limit to the amount you can purchase?
In any single calendar year, you can purchase up to $5,000 of I bonds under this program. If you purchase bonds with your tax refund, the amount you request must be divisible by 50. If you don’t buy I bonds with 100 percent of your refund, you will need to have another account to deposit the remaining amount of your refund.

Example, if your refund is $280; you can direct $250 to I bonds and the $30 balance to your savings account.

Paper bonds will be issued in your name
When you purchase savings bonds with your tax refund, you will receive paper bonds, issued in your name.

If you are married and filed a joint return, the bonds will be issued in both your name and your wife's name.

Your request will be processed in two parts
Part 1: Generally, you will receive the bonds after you receive the remainder of your tax refund from the IRS. The IRS will process the portion of your refund that you are not using to buy savings bonds. The remainder will go to any account your designate.

Type "Where's my Refund" into the IRS search engine to see if Step 1 is complete.

Part 2: The IRS will forward your request for Savings Bonds to the Treasury Retail Securities Site. It will take them up to three weeks to issue and send your bonds to you at the address on your tax return.

You can call the Treasury Retail Securities Site at 1-800-245-2804 to check on the status of your bond issuance.

More about savings bonds
Series I bonds pay interest based on a combination of a fixed rate (currently .30%), which remains the same throughout the life of the Savings Bond, plus a semiannual inflation rate - currently 3.06%, which is updated each May and November.

Watch out: The interest earned by purchasing and holding savings bonds is subject to federal tax at the time the bonds are redeemed. However, interest earned on savings bonds is not taxable at the state or local level.

How to Claim Energy Improvement Tax Credits on 2009

The 2009 Form 5695 Residential Energy Credits, should be available by January 15, 2010- Friday of this week. Form 5695 will help taxpayers figure and claim Energy Improvement Tax Credits. Until the form's available, here's what you'll need to know to claim Energy Improvements to your home as Tax Credits on you 2009 taxes.


-The credit is equal to 30% of what is spent on eligible energy-saving improvements.

-The maximum tax credit is $1,5000 for the combined 2009 and 2010 tax years. This means that you can get the maximum credit by spending at least $5,000 on qualifying improvements.

-The improvements must be made to an existing principal residence.

-The Tax Credit is not available for new construction.

-The cost of certain high-efficiency heating and air conditioning systems, water heaters and stoves that burn biomass all qualify, along with labor costs for installing these items.

-The cost of energy-efficient windows and skylights, energy-efficient doors, qualifying insulation and certain roofs are also eligible for the credit. However, the cost of installing these items does not count.


-Generally, labor costs are included when calculating this credit. Also, no cap exists on the amount of credit available except in the case of fuel cell property.


Final Warning: Not all energy-efficient improvements qualify for these tax credits. For that reason, you should check the manufacturer’s tax credit certification statement before purchasing or installing any of these improvements. (This can usually be found on the manufacturer's website or product packaging. Don't be afraid to ask about this before you purchase.)

IRS Tax Debt – How to Remove an IRS Wage Garnishment & Survive This Recession

Let’s Face it: We’re heading into a recession. The government won’t admit it, but we know it’s true. The price of gas and food keeps going up while our paychecks stay low. So how can you possibly survive when the IRS is Garnishing your Wages, leaving you only a tiny fraction of your paycheck?

Pay them off: If you enter a installment agreement  with the IRS they will no longer levy your wages. However, if you default on that payment plan, they will go after your wages again. The trick is getting a payment plan that is truly affordable for your budget. If you owe more than $10,000, this may be harder than it sounds. A tax debt professional may be needed to make sure you are placed in the best plan.

Economic Hardship: If you can prove to the IRS that the levy is causing an economic hardship, you can get the levy removed. But watch out. This is a tricky job. You have to provide ample documentation that proves if they continue to levy your wages you cannot pay for basic needs like food, utilities, basic clothing, materials for school, and tools for work. Doing this incorrectly will mean more than not lifting the garnishment. It could also mean exposing accounts you'd rather keep private to other kinds of IRS levies.

The Deadline: The IRS has 10 years to collect on your debt from the date of assessment. Certain factors, such as Bankruptcy and applying for an Offer in Compromise, can change that. However, it is usually 10 years. Once those 10 years are up the IRS has to stop Garnishing your Wages.The closer the IRS gets to that deadline, the more aggressive they will become. They won't give up on collecting you without a fight! You shouldn't either!

The 2009 Annual Taxpayer Advocate Report to Congress

The National Taxpayer Advocate Report was delivered by Nina E. Olson on Wednesday. She called on the IRS to change how it deals with taxpayers struggling to pay overwhelming back tax bills. Here's the highlight reel:

-Nina clams that the biggest issue taxpayers face is the growing complexity of the tax code. She calculates that is costs taxpayers nearly $200 billion a year to comply with the tax code.

-Nina goes on the claim that the IRS's harsh approach to collections is the second most serious problem facing taxpayers.

-Nina Olson was particularly concerned about the IRS' reluctance to accept "offers in compromise" to allow taxpayers facing dire straits to settle for less than they owe.

-In fiscal 2008, the IRS accepted just 10,677 offers, down 72% from the 38,643 offers it accepted in 2001. "Ten thousand offers accepted in one year? That's just absurd. There's no other word for it,'' Olson said.

-"Offers in compromise should get from the taxpayer the reasonable collection potential, not the maximum amount possible under any possible scenario potential,'' Olson said. She criticizes how the IRS includes home equity in it's determination for an Offer in Compromise.

-A collapse in the Offer in Compromise program is attributed to the requirement that taxpayer submit 20% of their offer in cash for certain Offer in Compromise payment programs. If the Offer is denied, the 20% of the offer is not refundable. Offers are denied three out of four times they are submitted.

Nina Olson delivered the 2009 Annual Taxpayer Advocate Report to Congress a day after IRS Commissioner Douglas Shulman said he would instruct IRS employees to be more lenient on taxpayers suffering from the current economic crisis. Although Nina Olson praised him for sending the important message, she adds that the measures he outlined aren't enough the fundamental problems with the IRS system.

Tax Time 2010: Be Wary of Tax Cons and Tax Scammers

Tax Season is back in full swing. While a lot of the free online take services like E-File won't be in commission until Mid January, the Tax Scammers and schemers are out early this year. Be on your guard, and remember the golden rule:

If it sounds too good to be true, it probably is!

The IRS advices people to Seek professional advice from the IRS or a Tax Professional before you subscribe to any scheme that offers exemption from your obligation as a United States Citizen to pay taxes.

How Do You Report Scam Activity:

I'm surprised at the growing number of people who ask me this question every year. If you suspend a company or individual of not complying with tax laws, report their activity using IRS Form 3949-A.

Type "Form 3949-A" into the IRS Search Bar on www.irs.gov. Fill out the form, them print it. Once it's filled out, mail it to:

Internal Revenue Service
Fresno, CA 93888

You're not required to use Form 3949-A, however. You can send a letter to the address above. But if you send a letter, include the following information:


- Name and address of the person you are reporting

-The taxpayer identification number (social security number for an individual or employer identification number for a business) if you have it

-A brief description of the alleged violation, including how you became aware of or obtained the information

-The years involved

-The estimated dollar amount of any unreported income

-Your name, address and daytime telephone number

It helps the IRS to identify yourself, but you won't be required to. The IRS will keep your identity confidential.

Keep an eye out don't trust any e-mails that claim to come from The IRS. The IRS never sends e-mails directly to taxpayers. Additionally, if a Tax Company, Professional, or Preparer asks for your Credit Card or Bank Information over the phone, hang up. These companies could be scammers that are only after your money.

IRS Cracks Down on Tax Preparers- Complex Competency Exams Now Required

Breaking IRS News- Responding to long-standing arguments claiming the government doesn't do enough to regulate tax preparers, the IRS has proposed a broad initiative that would require hundreds of thousands of tax preparers to register with the government, pass a competency exam and adhere to ethical standards.

"There's a lot of incompetence in this field — not only incompetence but unethical behavior," says Frank Degen, government relations chairman for the National Association of Enrolled Agents.

The proposed rules, which the IRS says would take several years to implement, include:

- A requirement for Tax preparers who sign a tax return to register with the IRS and obtain a preparer tax identification number. This would make it easier for the IRS to crack down on crooked preparers who fraudulently inflate taxpayers' refunds.

- Tax preparers would be required to pass a competency test and meet continuing education requirements.

- Enrolled agents, certified public accountants and attorneys would be excluded because they're already subject to education and licensing requirements.

- Tax preparers would be subject to the same federal ethics rules that currently apply to attorneys, CPAs and enrolled agents who practice before the IRS. This would allow the IRS to suspend or discipline preparers who fail to meet those requirements.

In the meantime, The IRS plans to step up inspections of tax preparers for the 2010 tax season. The IRS will send letters to about 10,000 preparers who prepare a large volume of returns in which the IRS often sees errors, such as returns mistakenly claiming the earned income tax credit.

Bottom Line: About 80% of taxpayers hire a tax preparer or use tax software to prepare their returns. It's important to work with someone reliable, and the new Tax Preparer Initiatives may ensure you work with someone trustworthy.

A New Year- A New Free IRS Calendar

With good organization you can avoid almost any Tax Debt issue. This is why I stress how important it is to keep good records for your finances. The IRS has issued this new Small Business Calendar to help taxpayers achieve this aim.

View it online: here.

The Tax Calendar includes detailed information on the following:

- Accounting Methods and Periods
- Reap Retirement Rewards
- Car, Travel and Other Business Expenses
- Employee and Worker Issues
- Monitor Results and Keep Good Records
- Your Rights as a Taxpayer
- Filing Electronically is Fast and EZ
- Help in Recovering from Disaster
- IRS Resources Can Help You Via Phone and Internet
- Stash Away for Taxes and Prevent Identity Theft
- Online Resources to Help Your Business Thrive

Here's a few more Tax Resources to be aware of as Tax Season begins:

Where's my Refund?- First of all, remember that the IRS NEVER initiates e-mails to clients. Don't fall for e-mails that claim to have information about your taxes. (Go here for the official IRS warning about these scams). If you want the answer to the question, "Where's my refund?" simply go here and fill in the requested information.

IRS E-File- Go here for all of your IRS E-File options.

EFTPS: Pay Your Taxes Online- EFTPS or Electronic Federal Tax Payment System allows you to pay your taxes online. Go here for more information.

Check here for more information and to obtain a calendar of your own in the mail while supplies last.