Have not filed your taxes for the past two, three, four, or more years? It is time to TAKE ACTION NOW! Here are 2 good reasons:

(1) you will minimize penalties and interest, and (2) keep the IRS from going into a collection enforcement mode, assuming they have not already done so.

Once enforced collection procedures kick in, do not expect the IRS to be very sympathetic.

The very WORST thing you can do is ignore IRS notices. Once a series of computer-generated notices have been issued, ignoring them will trigger enforced collection procedures without any human intervention from an IRS employee. Your wages could be subject to an IRS levy costing you 50% of your take-home pay.

Cannot Afford to Pay Up?

If you cannot pay what you owe, file Form 9465, Installment Agreement Request. By filing this form you’ll greatly reduce enforced collection procedures by the IRS.

A Word About Fraud

This is often significant piece of this specific matter. Keep in mind, simply not filing an income tax return is not considered fraud. Committing fraud takes an act of COMMISSION. For example, intentionally making false or misleading statements or intentionally submitting false or misleading documents to the IRS would be considered an act of fraud and a fraud penalty would be justified.

Not filing an income tax return is an act of OMISSION as opposed to COMMISSION and therefore, is not fraud. So, NEVER intentionally make false or misleading statements or provide any false or misleading documentation to the IRS. If you should be assessed a fraud penalty and you know it’s not justified, attach Form 843, Claim for Refund and Request for Abatement to your letter explaining the reason for not filing.

Tip: Use Form 843 as a cover letter to prevent the possibility of your letter being ignored and finding its way into the bureaucratic abyss, never to be heard from again! At the top of Form 843 write the following: Demand for Abatement of Tax Pursuant to Code Section 6213(b).

Offer in Compromise (OIC)

If it is impossible for you to pay your tax liability within twenty-four months, consider filing an Offer in Compromise. If you qualify, you may end up paying ten cents on the dollar! The IRS will evaluate your circumstances. If it concludes that your offer is equal to or greater than the reasonable collection potential, you are in luck. There is a 150 dollars application fee to file an OIC, however, it is not required to be paid if you qualify as low-income or if you file a doubt as to liability offer.

So, get off your butt, and get busy – get those returns filed!

Larry Villano, Publisher of http://www.loopholelewy.com

The Accounts department records all payments received from a client, keeps track of every aspect of money spent and manages cash flows.

On a daily basis it involves keeping all documents and forms up to date. There are heaps of documents and forms that need to be taken care of, some of them less frequently like 1099 tax form, IRS form 990 and some other IRS publications, while others like Tax Credit, Exempt Form etc. Have to be maintained more frequently. Some large businesses may also have real-estate legal forms to be kept up to date.

Most of this activity is computerized, from small shrink wrap packages to ERP systems most businesses have some accounting system or the other in place.

Let’s go forward with this post. Smaller outfits who can not afford an expensive ERP system, can download blank legal documents from internet and apply them into their system. They can find suitable Tax Forms, Legal Forms or IRS Forms through Google search and download them. Since these forms are in PDF format, they’ve to be first converted into an editable format to fill them.

Here’s exactly how we can convert PDF Forms into editable format?

Do a Google search for a site that converts documents into word format, you’ll find quite a few sites that will do the conversion for you. Upload your documents in one of them and download editable version within minutes. You may find some sites do this job for free while some may charge few cents a page.

Be careful with Free sites, if possible keep away from them, though there will always be a propensity to use free sites just because they’re free but this is exactly where the danger is. Free sites are often the carriers of malwares, viruses and phishing software.

If you’re a small business and do your own book keeping with occasional help from your local accountant, then you must use a good site for converting your PDF forms into editable format safely and economically. So check it out first, is it a Free site or a safe & sound Paid site?

R Mathur is in publishing space for over a decade using technology to provide high quality online and offline services to company’s woldwide users. For high quality hands on experience visit Online Document Conversion page, play around and get some insights, after all its hardly 50cents a page DIY to hang around in a safe environment.

The early months of autumn are a perfect time for having a yard sale. One of the benefits is ridding the garage of unwanted items. Another advantage is obtaining a little cash. Yard sales frequently bring in hundreds of dollars and occasionally thousands.

The’ssue that arises – especially when big-ticket items are sold – is whether any tax preparation help is needed. In most cases, no tax reporting is required because buyers pay less than the sellers’ costs for old toys and outdated home dcor. In spite of this, personal property is subject to capital gain tax if sold for more than cost basis. This can occur with antiques or collector items.

The other interesting idea dealing with this topic. Therefore, an expert with tax return preparer education can advise taxpayers about potential taxable sales. Inquiries that reveal sales of collections generally require further investigation. Taxpayers should have a record of cost for acquired collectibles. The possibility of income tax consequences demands attention to cost basis, which is needed to determine any taxable gain.

Inherited collections entail some trickier accounting. The basis is normally the value on the deceased grantor’s date of death. At least this avoids needing records for piecemeal accumulation of items in a collection.

Any item that appreciates in value and is sold for more than basis is subject to tax. But no reporting is required on property sold for less than basis. Losses on personal property aren’t tax-deductible.

When a yard sale is finished, unsold items in good condition are often not returned to the garage or basement. Instead, they’re donated to charitable organizations. These situations have important implications covered in registered tax return preparer training. A tax deduction is available for taxpayers who itemize deductions.

The deduction for non-cash charitable donations of property is normally the fair market value of the items. A tax practitioner with an RTRP license can aid taxpayers in identifying the values for most commonly donated items. Taxpayers need a record of the contribution date and the recipient organization along with a description of the property. General descriptions are acceptable for multiple small items, but large items require some specificity. More detailed lists lessen potential problems with the IRS to justify the deduction.

An especially valuable technique used by some taxpayers is photographing the donated items. Tax records retained for 7 years should include proof of acceptance by the charity along with the written property descriptions and photos.

IRS Circular 230 Disclosure

Pursuant to the requirements of the Internal Revenue Service Circular 230, we inform you that, to the extent any advice relating to a Federal tax issue is contained in this communication, including in any attachments, it was not written or intended to be used, and can’t be used, for the purpose of (a) avoiding any tax related penalties that may be imposed on you or any other person under the Internal Revenue Code, or (b) promoting, marketing or recommending to another person any transaction or matter addressed in this communication.

Fast Forward Academy is a leading publisher of education for registered tax return preparer careers and tax professionals. Access to free questions for the tax preparation help is available on their website.

If you find that you’re spending your own money at business related functions, home-work activities or multiple job sites, then you may be entitled to request a company reimbursement or claim a tax deduction for your un-reimbursed expenses. Here are some of the most common costs that employees may be able to deduct if not reimbursed.

Be sure to evaluate this content thoroughly, the issue and the methods have some versions. 1. Business Miles: If you use your own vehicle for any business purposes, keep track of you mileage, you may be able to deduct them at fifty-one cents per mile (2011 figure). If you travel between job sites during the day, make bank deposits, deliver packages or materials or drive as an outside sales person, your miles can add up to a large tax savings.

2. Travel Expenses: If you’re required to travel overnight for any business related purpose without being reimbursed, your costs are deductible. Conferences, continuing education trips, off site training programs or whatever other business related trip costs are deductible. Make sure to keep receipts and a log book.

3. Parking and Tolls: If you’re paying tolls or even certain parking fees as part of your work, you may be able to deduct them. Daily commuting tolls aren’t deductible, but any other tolls are. If you work in a downtown area and your employer doesn’t provide on-site parking, your parking fees for off-site parking may be deductible. Keep your receipts and let your tax adviser know.

4. Uniforms: Uniforms are often overlooked. Whether it’s nurse uniforms or steel-toed work boots, they’re a job requirement. While some employers provide them, many others don’t. If you find that you’re purchasing clothing items that are used exclusively at your job and wouldn’t be used for everyday wear, they’re probably deductible expenses.

5. Association Dues: Any fees or dues that you pay as part of your work relationship, are deductible. If you pay for notary public, professional association, re-certification, licensing or union dues, you can take a deduction for these items as well.

6. Meals and Entertainment: Many employees these days are being asked to work overtime, are “on call” or travel between job sites. If you incur meal costs during these special work events, keep receipts and take your deduction. If you entertain customers or clients during or after hours, your expenses are also deductible if they’re not reimbursed.

7. Others: There are a few other expenses that can be deductible to an average employee. Certain business gifts, office supplies for a home office (if you do any work at home), job seeking expenses, software training or books may be deductible if you pay for them out of your own pocket. Keep track and ask your tax adviser if you’re eligible.

Summary: Employees that incur expenses out of their own pocket may be entitled to an income tax deduction for these costs. But if you don’t keep track of your expenses or ask your tax adviser, you’ll lose the savings. Most tax preparers and accountants are stressed during tax season and spend very little time asking questions about these expenses unless you offer the information. Do not lose out on your savings. It could be enough to pay for your tax preparation fees or even enough to fund an IRA. Either way… You win.

To discover additional financial and income tax strategies, check out my blog or download your FREE Wealth Expansion Kit by clicking here. The first step to creating wealth is knowing where you’re and then charting a path that will enhance your financial strengths and correct your weaknesses.

About the Author:

Keith Maderer is a financial expert and has been a investment and tax adviser in the Western New York area for over thirty years. He’s the owner of SENIOR Financial and Tax Associates and the founder of the Maderer Foundation, a private scholarship program.

Keith is also the author of “How To Get Your College Education For Less”. Available on Amazon.com – ISBN No: 978-1-4538-2053-7.

You can get your FREE Wealth Expansion Kit, or check out his blog by visiting http://www.sftaweb.com

The sales tax war began in New York when lawmakers asserted that online retailers could be considered to have a physical presence in the state if they paid commissions to in-state “affiliates.” Amazon, whose popular affiliate program was clearly the target of the law, is suing.

The’ssue of physical presence, or nexus, is significant, since the Supreme Court has said companies can only be required to collect sales tax in states where they’ve employees or facilities. Technically, consumers are required to pay the sales tax that out-of-state companies do not collect directly, but in reality, almost no one does this.

All of this is really important piece of this specific study. As the New York lawsuit has slowly worked its way through the court system, Illinois, Arkansas, Connecticut, North Carolina and Rhode Island have all passed their own “Amazon laws.” Rather than starting duplicate lawsuits in multiple states, Amazon has responded in each case by ending relations with affiliates. Both sides lose in this situation. States do not get the sales tax money they are after and they risk Amazon affiliates moving their businesses, and their tax dollars, to other states. Amazon, meanwhile, loses referrals. But, for some reason – most likely pure desperation – states continue to pass these laws.

At first it seemed California would repeat this pattern. Gov. Jerry Brown signed a sales tax collection law on June 29, and Amazon immediately announced that it was terminating relationships with its approximately 25,000 California affiliates. But instead of ending there, the battle in the Golden State continued with Amazon seeking to take the’ssue to the streets through a voter referendum.

California’s new law differs from previous iterations by claiming that subsidiaries, in addition to affiliates, can be used to establish a company’s presence, even when those subsidiaries aren’t involved in any retail activity. While Amazon is itself based in Seattle and has no offices in California, its wholly-owned subsidiary A2Z does have offices in the state. Those offices house the software gurus responsible for development work on Amazon’s online music store and its top-selling product, the Kindle reader. Though Amazon has shown that it’s willing to sever ties with affiliates, moving A2Z would prove harder.

In addition to the higher stakes posed by the subsidiary clause, California’s relatively easy ballot access makes the situation different from those Amazon has faced so far. A second lawsuit would be costly and redundant, but the possibility of a referendum lets Amazon take its case to a new audience.

Most likely, Amazon’s motivations are rooted more in self-interest than principle. Many voters who end up supporting the referendum will likely be guided by self-interest as well, looking to save a few dollars at the online checkout screen. But all of that self-interest may end up bolstering an important legal principle that’s critical for small businesses.

For a large retailer like Amazon, the administrative costs associated with collecting sales tax are more or less negligible, making the main disadvantage higher costs for customers. For a smaller business, however, the burden of keeping track of the laws and tax rates of fifty states (with thousands of local variations in rates and taxable items) would be difficult or impossible to meet. Legislatures’ growing disregard for the nexus principles that limit tax collection responsibilities to in-state businesses poses a real threat.

Palisades Hudson has offices in only 3 states – Florida, Georgia and New York – but the nature of our business allows us to serve clients across the country and around the world. None of the states where we’ve offices apply sales tax to tax preparation services, so we never collect sales tax when we prepare returns. In addition, a few states, including South Dakota, West Virginia, and in some circumstances Ohio, do consider tax preparation services to be taxable. Without the protection of nexus rules, we would be required to track the relevant laws in each jurisdiction where we’ve clients.

While laws like the ones passed in New York, California and other states pay lip service to the fundamental principle of nexus, they disregard the physical presence test that the Supreme Court clearly laid out nearly twenty years ago in a suit brought by mail-order retailer Quill against the state of North Dakota. The affiliates that states are trying to use to attribute physical presence to out-of-state firms are individuals or independent companies that are paid commissions for delivering customers through “click-through” links on their own sites. If a state like Illinois can attribute nexus to Amazon through its commission-based affiliates, there is nothing to stop it from attributing presence to Amazon through the internet service providers whose facilities Amazon uses to reach customers in Chicago. North Dakota tried to do just that by attributing nexus to Quill via the phone companies and postal services Quill used to serve customers there; the Supreme Court said no dice.

Not every retailer opposes what states are trying to do. Not surprisingly, the companies that back states’ efforts to force Amazon to collect sales tax are the ones that already must collect sales tax nearly everywhere because they’ve stores nearly everywhere. Wal-Mart, Target and other big-box retailers claim that online retailers’ freedom from sales tax collection duties gives them an unfair advantage by allowing them to offer consumers what amounts to a discount.

It may be true that not collecting sales tax is one of the advantages of doing business online, but that does not mean it’s an unfair advantage. Physical stores also have advantages, like being able to offer products immediately with no shipping costs. But those aren’t unfair advantages; they’re just the results of choosing to run a certain kind of business. There is no reason why governments should “level the playing field” by making online-only retailers pay the costs of a system whose benefits they’ve consciously foregone.

I hope California voters side with Amazon, not because I want Amazon or its customers to avoid taxes, but because nexus is an important principle that’s worth defending. Without it, modern businesses can never know which far-off locality might claim jurisdiction over them or what burdens such a locality might impose. The conveniences and efficiency of modern communications will be lost in a tangle of revenue-seeking red tape.

For more articles, please visit the Palisades Hudson Financial Group LLC newsletter or subscribe to the blog.

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I’ve broken down your calculations into 4 moderately easy steps:

Step One: You need to look on the form 1098 that you get from your mortgage lender each year for the total amount of interest paid during the tax year.

Step Two: You can figure your marginal income tax rate by adding your federal rate to your state rate. As an example, I randomly selected these rates: A federal marginal rate in the 26% bracket plus a state marginal tax rate in the 5% bracket will give a combined total of 31%.

Step Three: In order to convert your percentage rate to a decimal, you’ll need to divide your results by 100. Using the example in step two, you would use one hundred divided into thirty-one to show a decimal of 0.31.

This is often a very important part of this subject matter. Step Four: The final easy step is to multiply your decimal results in step three by your total marginal tax rate in step two. The result will give you the amount of deduction that you can claim on your income tax return. If your form 1098 lists 13,000 as the amount of interest you paid, then you’ll multiply this figure by your 0.31 decimal in step three. 13,000 X 0.31 = 4,030. This is your tax savings for your mortgage interest paid in the tax year.

Using these 4 easy steps will help you be able to estimate the portion of mortgage tax refunds that you should be eligible for on this year’s tax returns. This can be done in January right after you receive your 1098 from your lender. They’re required to send it to you by the end of January.

More information about mortgage tax, please visit Marcel Miller’s site: mortgage calculator with taxes and mortgage tax.

It can get you a refund. Did you know you were eligible for a tax refund up to 3 years after the deadline? It is true. In fact, studies have found that most people who need to file past year tax returns are actually owed money. So instead of putting it off because of your fear of being fined, think of it as a way to get money that is been waiting for you! Your fines stop the minute you file. Even if you are one of the unlucky few who do owe money, by filing you past year tax returns you stop those fines and fees in their tracks! From the second you file, your fees are put on hold–and then the IRS or an online tax service can help you figure out the best way to start paying those back taxes down. You can pay your taxes down monthly. If you do owe money, do not panic! You do not have to owe it all at once. The IRS understands that you might not have a few thousands just sitting around somewhere. The important thing is that you do start paying them, because it reduces your penalties. There’s no reason to wait to file past year tax returns until you have the penalty amount saved up–start now! The more you delay, the more you hurt yourself. You can do it online. That is right, you do not have to go into the IRS, cap in hand, and beg for their forgiveness. You can use their e-file service (or, even better, an online company who are experts in back taxes) to file. No fuss, no muss, no having to face someone and feel guilty. You can file past tax returns with the click of a button. You get piece of mind. Let’s face it–being in debt is never fun. It hangs over your head and makes future financial necessities harder. And that is especially true with back taxes. The truth is, most people feel a weight lifted off them the minute they file past tax returns. They lose an extra burden and can start to move on from the ghost of their financial past and into bigger and better things.

The IRS has made it so you can file past tax returns easily, simply, and with no extra penalties. They may be bureaucrats, but here you are working together. You want to move on from those back taxes and they want your money. So enlist some professional help and file any past tax returns you have.

Why wait!? File past tax returns today and start the process of getting on with your life. Do not put it off another day.

Zoe Holmes is a New York-based Midwesterner. She is a big advocate for friends and family to file past tax returns. She hopes that they will listen soon.

As a starter, we’ll give you 7 important tips to manage your personal finances so that you can have a prosperous and comfortable life ahead.

One – Gaining self-control: don’t develop a habit to purchase thing son credit card if you can’t pay them fully at the end of the month. Always try to purchase a product only when you have actually saved money for that product. It’s not wise to spend your earnings in credit card interests and in the purchase of those things which are unnecessary for you. Always keep that many credit cards which you can easily track and payoff.

The next fascinating part regarding this field of study. Two – Manage your Financial Future: You should learn to manage your finances yourself otherwise other people will start trying to use your finances for their own purposes. Taking advice from others on your financial issues is good, but you should take financial decisions at your own. Try to get the basic knowledge of the financial management and take charge of your own financial planning instead of relying on others.

3-Managing Outflow of Your Money it’s an alarming situation if your expenses are exceeding your income. You can control this situation by budgeting. Once you make a monthly budget for you and your home then you’ll be able to cut off many unnecessary expenses. Then you’ll realize that making small changes in your everyday expense will result into a good overall picture of your monthly budget. With a little effort, you can turn your budget deficit into a surplus which will help you save your hard-earned money for future.

Four – Create an Emergency Fund No matter how less your salary is and how much money you owe in credit card loan or home loan debt, you should create a separate fund for your emergency needs. It seems difficult to cut off your salary for an unseen expenditure, but it’ll save you from a financial disaster which may over burden you in case of an emergency. If you’re having a good amount in your emergency fund, then you can easily meet any emergency expense. If it remains unused for some time, then you can use a portion of it for paying off your debts.

Five – Start planning your retirement: Parents start sending their kids to kindergarten so that they can prepare you for a successful life. Similarly, you should start saving for your retirements now. If you start saving sooner, you’ll have a larger amount of money in your retirement account at the time of your retirement. You should check whether your company is offering some special retirement plans for the employees as many companies offer great retirement plans. In the company sponsored retirement plans often companies match portion of your contribution, which is like having free money.

Six – Calculating Your Tax Expenditures: You should know the tax mechanism of your state and country for proper management of your finances. You should understand the total applicable taxes on your earnings so that you can have an idea, whether you can meet your financial requirements with that money or not. You can search for an online tax calculator that will clearly indicate the tax rates, according to your state, and amount of these taxes on your gross salary so that you can check what exactly your take-home salary is. These will be very helpful when you’re thinking to switch to new job with new salary range.

7 – Protect your Wealth & Belongings: If you want to safeguard your hard-earned money, then you’ll have to take steps to safe guard it. Health insurance will save you from any setback caused by a health issue or an accident which may cause you a damage of thousands of dollars. An automobile insurance will save you from its accident outcomes and home insurance will cover you from damages like fire or burglary. Meeting monthly or annual insurance premiums seem to be difficult, but it’ll save you from any financial disaster.

Remember, there is no need for any fancy degrees to manage your personal finances. If you take in your consideration the above 7 things, then you can be personally prosperous man.

Ms. Pinky is a mom of three school children. She’s an Internet/Affiliate Marketer. A Systems Engineer, an Independent Medical Billing and Coding Consultant. And her blog focuses on stay-at-home moms, dads and students who wants to work at home, build home based business. Visit her useful blog at http://www.momsworkathomeideas.com and her website at http://www.mommyisworkingathome.com.

Therefore going into each case, these 3 acid tests are the fastest and quickest ways to spot liars and deceivers.

3 main tips:

1. Make sure the bank statements, tax return, financial statements all have a common thread of income. While there are many exceptions to this rule because of changing circumstances i.e. Loss of jobs, life events, generally the money you deposit in your bank needs to tie into your current wages and your income information on your tax return. If this does not match up, you can bet your last dollar, IRS will investigate further to see if there may be hidden income. Also your cost of living should be in line with your wages. Exceptions exist such as you’re borrowing money or living on savings.

This can possibly be a very important part of this specific topic. 2. IRS can and will pull credit reports to verify monthly payments you’re making on other debt or assets. Many people who try to hide and/or deceive the government, will buy money order or cashiers checks. A smart IRS Agent will pull credit reports to verify your IRS financial statement with items found on your credit report.

3. IRS will check through credit reports for loan applications submitted to banks, car dealerships or other financial institutions to verify income and assets. IRS will compare the financial statement you gave the financial institution with the financial statement you submitted to IRS. It should match up; however this is rarely the case.

While this is not a comprehensive list, however, IRS knows where to look for lies and deception and they’ll find it.

Always turn in a truthful financial statement to the IRS.

Anytime you deal with the IRS, it’s always wise to seek reputable professional counsel.

Michael D. Sullivan is a seasoned IRS tax expert. Learn more about Michael and the services he provides at http://www.freshstarttax.com.

Regardless of how often an employee works for you, you always pay him on the same basis: fair market value of the services rendered. Whether a person works full-time or part-time, all year-round or just for a few weeks during crunch time, you determine a reasonable wage and pay him accordingly.

Also, do not forget that’ssuing a real paycheck means you must calculate and deduct payroll taxes – federal, state and local income taxes, plus Social Security and Medicare taxes. Again, even a very part-time or sporadic employee is still an employee, and you must do all the paycheck withholdings that you do for a full-time employee. And doing “real” paychecks means you must also make payment of those payroll taxes on a timely basis, and you must also file payroll tax returns (usually monthly or quarterly) and issue a Form W-2 to all your employees at the end of the year.

End result: even having just one part-time employee means you face a small mountain of paperwork! It is just a part of the cost of doing business.

You should evaluate this information with care, the problem and the solutions have different different versions. Nevertheless, if your business is a corporation, or an LLC being taxed as a corporation, and you’re doing any work for the business, then you must pay yourself as an employee of the business. Sole proprietors and partners shouldn’t pay themselves as an employee, but corporation owners who work in their business must be treated as an employee. The fact that you also happen to be a shareholder doesn’t mean you’re not to be compensated with wages or salary for services rendered.

It’s a huge mistake for corporate shareholder/employees to only withdraw profits from their corporation. If you attempt to avoid employee compensation by claiming that all your withdrawals are “profit distributions”, you’ll be in for a rude awakening on audit day. Numerous well-known tax court cases have proven the IRS correct in re-classifying such “dividends” as wages. You will then have to come up with the accompanying (and now late) payroll tax payments, and you will face still late payment penalties and interest on a potentially large sum of money.

So you’ve been warned: if you have part-time or seasonal employees, pay them just like a year-round full-time employee, with bona fide paychecks for wages paid. And if you’re your business’ only employee, do not forget to pay yourself like one, too.

Looking for more small business tax deductions? For a free copy of the Special Report “How to Instantly Double Your Small Business Tax Deductions” visit http://www.YouSaveOnTaxes.com. Wayne Davies is author of three ebooks on tax reduction strategies for small business owners and the self-employed.