IRS Forms To File Back Taxes

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IRS Forms To File Back Taxes

Even if one is certain there are no mistakes in the forms when following federal tax procedures, a little shiver goes down a taxpayers spine at the very thought of a letter arriving from the IRS. The Internal Revenue Service blundered recently when the office sent penalty notices to business owners who had requested an extension in filing tax return Form 5500 to file back taxes. An error in programming caused the mistake regarding the required Form 5558, the Application for an Extension of Time to File Certain Employee Plan Returns, before filing Form 5500. Normally, taxpayers are penalized if the Form 5500 is late or unfinished. However, the notice to those taxpayers who filed the proper forms in the right order received the penalty notice, CP 283, Penalty Charged on Your 5500 Return.

Legal research
Legal research (Photo credit: gwilmore (I HATE THE NEW LAYOUT!))

A letter of explanation concerning the inaccuracy was instituted November 8th to IRS employees. Citizens received a penalty notice before the Form 5558 had an opportunity to post to the accounts. Therefore, letters of explanation were prepared while telephone assistors and tax examiners were instructed to apologize to callers. Penalties were removed in all cases, up to five if the caller was a person with multiple plans or clients. If the person was responsible for more than 5 accounts, they were requested to solicit their abatement in writing. The Internal Revenue Service accepted responsibility for the penalty notice to the taxpayers and the charges were removed. It seems filing back taxes can be simple most of the time, but one small computer error can create a fiasco of work.

Higher Mortgage Rates?

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Higher Mortgage Rates In 2013?

The news that renters and home buyers do not want to hear is that 2013 will almost certainly see higher housing costs, higher rents and various mortgage fees.

This year also sees the introduction of several new mortgage regulations, and anyone applying for a mortgage will potentially be affected by these.

English: Sign of the times - Foreclosure
English: Sign of the times – Foreclosure (Photo credit: Wikipedia)

If you apply for a FHA mortgage and have a lower down payment, you will have higher rates for your mortgage insurance.

In an ongoing effort to add to its reserves, the FHA (Federal Housing Administration) has implemented various raises to insurance premium costs since 2008, and analysts seem to think that trend will continue. One such increase will be a 0.1 percent increase in the yearly insurance premium that is added to the monthly mortgage payment of borrowers. Currently, the charge for FHA borrowers is about 1.25 percent.

Janneke Ratcliffe of UNC Chapel Hill in North Carolina points out that once rates rise, this seemingly small increase will be noticeable.

Rental prices are rising due to a poor job market, a high number of foreclosures and tight mortgage lending, and in addition, the supply of rentals is low in many areas. Real estate firm Reis pointed out that in the 4th quarter of 2012, apartment vacancies stood at 4.5 percent, an 11 year low.

Whereas earlier refinancing options have not worked effectively, President Obama is likely to push for more effective legislation to help owners with an ‘underwater’ property, predict some analysts, including Julia Gordon of the Center for American Progress.

Consumers could be affected for better or worse when a series of new mortgage regulations are introduced early this year. One of the most important is a rule stipulating that a borrower must prove to a lender that they are financially able to pay back the loan.

Mortgage rates usually go up when investors move from Treasury bonds and mortgages to stocks, and this week was no exception. A 30 year fixed mortgage increased to 3.77 percent, while a 15 year fixed increased to 3.03 percent and a 5/1 adjustable rate mortgage increased to 2.78 percent.

IRS Tax Lawyer Due Diligence

IR$
IR$ (Photo credit: Wikipedia)

IRS Tax Lawyer Due Diligence

Tax attorneys can help people with IRS problems. The IRS is always willing to work with the tax payer to get issues resolved. But most people need professional representation because of the complex rules and regulations involved in most tax matters. An experienced irs tax lawyer will have a complete understanding of the applicable rules and regulations as well as the internal workings of the IRS. The typical tax payer that tries to go it alone will spend a lot of time talking to people at the IRS and get nothing accomplished. This is because they do not have access to the right people inside the IRS, the decision makers. An experienced irs tax lawyer will have access to the right people and be able to get issues resolved in a much more timely manner than the typical tax payer. This alone will save money on interest and penalties.

Many tax resolution companies that advertise on TV and over the internet do not actually have tax attorneys on staff. They sell the person on a tax resolution service and then outsource the business to an actual tax attorney. The taxpayer ends up with a tax attorney that they know nothing about and had no say in selecting and the price for the services are higher because there is another party involved in the process that must get paid. The most important thing when selecting a tax resolution firm is the due diligence or research by the tax payer to find a reputable firm that actually has tax attorneys on staff to handle their tax problems. Elias V. Lorenzana Jr is an experienced tax attorney, find out more by visiting  . Also see Mouris Behboud at , he offers services nationwide.

Making Filing Much Easier

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Filing Back Taxes

The approach that you take when filing back taxes will make a very big difference in your life. It is important for you to avoid putting off dealing with your taxes, this is a mistake that many people make. If you allow time to pass, you run the risk of forgetting and having to deal with panic that results from an approaching deadline. As such, you want to take advantage of software that would help you to streamline the process of dealing with your 2008 taxes. All you will need to do is enter your financial information and answer a few questions. These questions are designed to help determine how much you are responsible for while limiting your financial burden. The process is very quick, it will allow you to get rid of the stress that comes along with having to file back taxes.

Tax Preparation
Tax Preparation (Photo credit: agrilifetoday)

Additionally, you may want to speak with a professional that would be able to look at your financial situation in order to determine your liability. People tend to think that they do not need help when it comes to dealing with taxes. However, this is simply not the case. Following the guidelines set forward is the only way that you will be able to avoid making a mistake. Software can help to safeguard you while reducing the amount of time that it would otherwise take to get this portion of your life in order going forward.

Free Federal Tax Filing

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Free Federal Tax Filing

Most tax payers find it difficult to pay their taxes in the expected time, except those who are familiar with the free online tax filing website provided by the IRS. The website IRS.gov gives information on how to fill out the forms and the requirements one should have. It provides a step by step procedure making the task simple and overly convenient.

Free Federal Tax FilingThe program software that can be used to file free of charge can only be used by those who are qualified. Free tax filing involves doing one’s taxes on an online form and is easier and faster than the traditional method of paper filing. The IRS provides free federal tax filing services for anyone that earns an adjusted gross income of less than $57,000. Having e-filed the correct information, a notification from the IRS is electronically mailed to you. The services that are provided include filing a tax payment, filing tax returns and finally filing a tax refund.

In readiness for filling the online forms, one should have at hand, a copy of the previous year’s tax return, determine ones adjusted gross income (AGI) and go through the free file FAQs and free file fill-able forms FAQs. After filling in the free federal tax filing forms with the right information, one should transmit it using a secure IRS e-file.

3 Steps for Finding the Right Tax Lawyer for Your California Business

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Every year, businesses in San Diego come face to face with tax disputes from the IRS. And when it comes to taxes, there is very rarely such thing as an open-and-shut case. When your business is faced with anything from an audit to a battle with the IRS, it is essential to find a well-qualified lawyer to take on your case. Regardless of whether the case is minor or requires extensive documentation and work, having a well-versed California attorney on your side will ease the burden on your business to do extra tax law research, and let you get back to what you do best, which is run your company.

But as a business owner, you may be wondering where to start. Finding the right lawyer could mean the difference between a win and a loss against the IRS, so it is perhaps the most important piece of the tax case puzzle. Here are three things to look for when finding the right San Diego tax lawyer:

  • Narrow the focus – Depending on whether your case has to do with state or national taxes, you need a lawyer who is well educated in the right type of tax law. If possible, focus the search even closer and drill down to the attorney with the greatest amount of experience dealing with cases similar or nearly identical to your own. By understanding his or her qualifications and past experiences, you can ensure you are selecting the right lawyer for your case.
  • Don’t jump at the first lawyer you speak to – It is OK to interview a few lawyers before settling on the one who will fight your battle with you. Comparing law firms and abilities will help you make the right decision for your case, and keep you confident throughout the process that you chose the right law firm to take on your fight. With such an important decision to the success of your case, it is a good idea to go the extra mile and interview more than one firm.
  • Research your prospects – Once you have a few names picked out, take an extra step and do your own research on their backgrounds. Talk to the bar association or past clients to find out how easy the firm was to work with and what you can expect from it during your own case. Search the Internet for various forms of information, too. There may be some extra info not provided by the lawyer that is available online about his or her reputation and abilities.

Start your search by narrowing the focus down to which lawyers will be well suited to manage your case with the IRS. Then, be sure to interview more than one prospect and do your own research on the side to find the perfect fit for your specific needs.

Becky loves to write. Her favorite subject to write about is finances. If you’d like more information regarding San Diego tax lawyer, please visit http://www.allenbarron.com/