Earned Income Tax Credit

The Basic Of 1040 Tax Form

The 1040 tax Form must be your first step for your personal IRS income tax returns. It is created to help out in calculating the total of tax you should pay on the amount of income you have reported.

By using this form regularly as your income changes, you’ll be more aware of whether you need to take steps to reduce your potential tax penalty or you might actually calculate that you’ll receive a return.

This is the ‘long form’ or the more complete version and should be used if you have complicated tax issues to calculate. Things like investment income or loss, capital gain or loss or multiple itemized deductions should be entered individually on your 1040 tax form to help you gain a more accurate idea of the amount of tax you should be paying or withholding.

Although the form could be only 2 main pages, they have 11 different attachments or schedules that follow with it. Each different schedule covers a specific aspect of your tax return, so that you may not need all.

1040A Tax Form

The 1040A tax form is the simplified form to help you estimate tax return for the financial year. If you have no complicated tax additions for the year, like capital gains or individual itemized deductions, then the short form will be ideal for you.

1040EZ Tax Form

The 1040EZ tax form is a more simplified version of the longer form of 1040 and is still able to help you determine what your tax bill could be the end of the year very quickly. Again, this is ideal for those with no tax issues not complicated to explain.

1040NR Tax Form

The 1040NR tax form is designed to help non-resident aliens to calculate the amount of IRS tax return. For any non-resident alien who has been in the United States for under five years and who is earning income on which tax must be paid needs to use this form.

This form explains the IRS the genuine estimated you submitted and highlights what these figures should have been according to your calculations. In some cases, the IRS assist you to raise the amount of tax refund due or you could even reduce a penalty tax you have suffered.

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Why Isn’t the IRS Processing YOUR Administrative Claim for Damages?

I was poking around in the Internal Revenue Manual (IRM) and came across instructions to IRS personnel respecting the handling of 26 USC § 7433 exhaustion of administrative remedy damage claims:

“25.3.3.5.2  (08-28-2006)
“Evaluation of a Claim for Damages Under IRC § 7433″

“1.  Date stamp the claim upon receipt. Advisory should complete the initial review of the claim within 30 days of receipt.”

Would you look at that! No wonder I have several stories of people who sent in a notice of intent to sue based on my Calling Off the Dogs package because of an IRS levy that got a check for the full amount the next month. It seems that those reports came in like they did because somebody in the IRS completed the initial review in 30 days like the IRM says too and then made a phone call on their behalf.

When no response is received by people who send a notice of intent to sue over an IRS levy it may be evidence that somebody at the IRS is messing up. Of course, there is always the possibility that whoever was attempting to exhaust their administrative remedies just did it poorly. Reading on in IRM 25.3.3.5.2:

“2. Open an OI on ICS under 101 - Claim Other. Review the closed files for any prior claims.”

Keep this in mind when you send in an administrative claim for damages under § 7433; they are going to be reviewing your history. Reading on in IRM 25.3.3.5.2:

“3. The statutory elements contained in IRC § 7433 must be applied to each processable claim.”

Simply put; you must address each and every aspect of both § 7433 and the regulation 26 CFR 301.7433-1 in your administrative claim. You have to treat it like you would a jury instruction or a civil complaint. They want to know if you know how to litigate. Continuing in IRM 25.3.3.5.2(3):

“In determining whether a claim is administratively allowable the reviewer must determine whether:

“A. an officer or employee of the IRS intentionally, negligently, or recklessly disregarded any legal or regulatory provision of the Internal Revenue Code in connection with the collection of any federal tax ; and

“B. the taxpayer sustained direct, economic damages as a result.”

As the old saying goes, to be forewarned is to be forearmed. Here they are breaking down what the elements of a 26 USC § 7433 claim are for you. Address the above issues and you should be good to go. Continuing from IRM 25.3.3.5.2:

 

“4. The facts and circumstances of each case must be evaluated. The reviewer must determine if the alleged infraction did, in fact, take place.”

If you are lazy respecting point 4 above you will make it harder for the one doing the evaluation to determine whether there really are facts that warrant the claim. If you make it harder to evaluate the factual basis of the claim, you are just making it easier for the evaluator to rule against you. Another view, if you pay attention to 26 CFR 301.7433-1(e)(2)(ii) & (iii), included in my Calling Off the Dogs package, then you will have included the grounds, in reasonable detail, for the claim and you will have included copies of any available substantiating documentation or correspondence with the Internal Revenue Service; and, you will have included a description of the injuries incurred by you when you filed the claim. When you want somebody to do something for you why not make it easy for them to give you what you want? It seems you would want to help whoever is reviewing your case by including photo copies of any available substantiating documentation or evidence that supports your notice of intent to sue. This is how you make it as easy as possible for the evaluator to do what comes next in IRM 25.3.3.5.2(4):

“… determine whether or not the infraction was a reckless, intentional, or negligent disregard of the law.”

Reading further in IRM 25.3.3.5.2 (with my emphasis added):

“5. The reviewer must also ascertain when, in time, the taxpayer became aware of the violation or should have become aware of the violation. Claims filed more than two years after the violation must receive special scrutiny. The taxpayer’s two year limitation to bring suit begins at the point when the taxpayer has had a reasonable opportunity to discover all essential elements in a possible cause of action. The reviewer must determine when the taxpayer knew or should have known of the violation. Claims filed outside the two year limitation will be rejected.”

Don’t be a dunderhead! This is telling us to address in our administrative claim the statute of limitation. We need to just do it and do it in an intelligent manner. If you think you are about to run out of time you better come up with an element of the claim that was discovered later that would extend the two year statute of limitations. Why waste your time writing a claim If you are unwilling to do this. Let’s stash this info away in our minds and make it a point to get our claims in timely.

“6. Certain criteria guide the amount of an administrative settlement, under this section. For example:

“A. the amount of the award is to be reduced by the damages that reasonably could have been avoided by the taxpayer;

“B. only actual, direct economic damages are recoverable in an administrative claim. No litigation or administrative costs are recoverable in an administrative claim. To the extent that any costs are recoverable under § 7433, such costs are recoverable only in a court proceeding; and

“C. the actual, direct economic damage reimbursement cannot exceed $1,000,000 ($100,000 in the case of negligence).”

I’ve been telling people all along that it is possible to get a check for damages without going to court. There, they’ve said it right in the Internal Revenue Manual; you can get a paid for damages by going through this administrative process! I suspect that in the entire history of the existence of 26 USC § 7433 that no one has ever gotten a check for damages; that is, unless a relative or close friend to an IRS agent got one. Why not do a super job of writing an administrative claim and be the first one to get a check for damages on an administrative basis? Continuing from IRM 25.3.3.5.2:

“7. Acceptance or rejection of each claim will be reviewed by Area Counsel for agreement. Include the Advisory administrative file and all related information.

“8. After concurrence by Area Counsel, submit the file to the Advisory Territory Manager for approval.”

See, if you do your job and write a good administrative claim; and they do their job and review and approve your claim, there are going to be some highly educated eyeballs examining your work of art administrative claim. This is why it is a good idea to get my Calling Off the Dogs package and study up on the use of 26 USC § 7433 before writing your administrative claim and attempting to exhaust your administrative remedies.

Follow me on Twitter.com/legalbear See you there. :-)

 

 

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Surprising Tactic to Suspend an Internal Revenue Service Levy

26 U.S.C. § 6330(e) contains a provision that is little acknowledged and underutilized by individuals dealing with an IRS levy of their bank account or paycheck. That subsection provides in pertinent part:

“(e)  Suspension of collections and statute of limitations
“(1) In general
“… if a hearing is requested under subsection (a)(3)(B), the levy actions which are the subject of the requested hearing…shall be suspended for the period during which such hearing, and appeals therein, are pending…”

The suspension of collection activities by timely requesting a Collection Due Process Hearing (CDPH) is a very effective technique to end an IRS (Internal Revenue Service) levy on a bank account or paycheck. I have employed this provision to bring to a standstill an Internal Revenue Service  levy in as little as two days. I recently put a note in my shopping cart that even a dancing bear could block an IRS  levy by a well-timed request for a CDPH hearing as provided in 26 U.S.C. § 6330(b)(1).

Nevertheless, a dancing bear would not be able to keep IRS (Internal Revenue Service) collection activity put off and most likely neither would most of us. In spite of all the lulls while appeals are pending; and in spite of being able to retrieve any funds you had in the bank when the Notice of Levy showed up from the IRS (Internal Revenue Service); and in spite of receiving full paychecks during those delays; eventually, the end of the line will get here and the  IRS (Internal Revenue Service) will move forward with collection activities as they were before the hearing was demanded. At the point this happens almost all the people will be right back where they began; dealing with collection activity by the Internal Revenue Service. It is because of this harsh actuality that I posted nine, free videos, 4-10 minutes long at www.irsterminator.com talking about strategies I have researched out that make keeping IRS (Internal Revenue Service) collection activities suspended indefinitely a very real likelihood.

There are two aspects to winning a CDPH hearing: 1) Taking positive strategies with the plan being able too prevail in the hearing as I discuss in the videos referenced above; 2) Avoiding raising issues that would trigger you losing the hearing. Keeping away from losing matters is a matter of doing a little investigation and reviewing what issues have been raised in the past that lost.

Rohner v. U.S., 91 A.F.T.R.2d 2003-2425 (N.D.Ohio 2003) is the Collection Due Process appeal ruling that I desire to address in part in this article. Rohner lost hisCDP (Collection Due Process) hearing and appealed to the Federal District Court. I was able to discovered his case by searching the District Court data base at www.versuslaw.com. I made an hour and forty minute video about how to use Versuslaw to do research and that video tutorial is available for you to gain knowledge of how to go about online legal research too at www.bearscart.com in the “law study” category.

In the section of the Court’s decision entitled “Factual and Procedural Background” the Court recounted:

“Although Plaintiff submitted Forms 1040 to the Internal Revenue Service (IRS) along with copies of Forms W-2 indicating his wage income for the years 1996 and 1998, he reported no income on the returns and attached statements containing frivolous arguments as to why he was not liable for an income tax for those two years…With regards to the 1998 tax return, the IRS then sent Plaintiff a letter dated May 24, 1999, advising him that a frivolous return penalty of $500 under 26 U.S.C. § 6702 would be assessed against him unless he corrected his position within 30 days…Plaintiff failed to correct the Form 1040 and the IRS assessed § 6702 penalty against him on September 13, 1999, with respect to the 1998 Form 1040…The IRS also accessed Plaintiff a § 6702 penalty on November 13, 2000, with respect to the 1996 Form 1040, because he submitted a Form 1040 for tax year 1996 showing no income with an attached statement containing frivolous arguments on July 21, 2000.”

So, it appears like Rohner may have been using an early Cracking the Code plan; or maybe, something taught by Irwin Schiff. He seems to be using the hearing to prevail on the hearing officer to be in agreement with  his view on why he had no taxable income and to get out of paying frivolous return penalties. The IRS sent Rohner a Notice of Intent to Levy that informed him of his entitlement to a CDP Hearing and he demanded the hearing. After losing in the CDPH hearing, Rohner lost on appeal to the Federal District Court:

1) According to the published result, the Court said that Rohner maintained that he had the right to make a recording of the collection due process hearing or have a court reporter transcribe the hearing. The Court held that Rohner misstated the law and held that he did not have the right to have the collection due process hearing recorded or to have a court reporter transcribe the hearing.

2) It is recounted in the published ruling, the Court said that Rohner claimed that the hearing officer refused to give  him a individual hearing with respect to the frivolous return penalties for each of the two separate tax years. The Court held that collection due process hearings consist of more than simply the face to face meeting between the taxpayer and the officer. It held that written communications, telephone discussions and face-to-face meetings all are sufficient for an acceptable hearing.

The Court ended up holding that the Internal Revenue Service’s administrative determination was to be upheld. In the videos at www.irsterminator.com I discuss how to use Rohner’s losing issues above to your own advantage. Check them out.

Follow me on Twitter.com/legalbear See you there. :-)

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Evaluating a Roth account

Whether or not to make further investments into a traditional tax-advantaged employer plan and IRA personal accounts versus investing in “Roth” IRA and tax-advantaged employer plan personal accounts is sometimes a confusing decision.

The decision on the trade offs is one of the most complex choices of a lifecycle financial freedom plan. A lot of personal finance issues can influence whether a regular IRA or tax-advantaged employer plan personal account contribution versus a Roth tax-advantaged employer plan or IRA account contribution decision would be best.

In most circumstances making investments into a regular tax-advantaged employer plan or IRA accounts is the best choice, when those deposits would be deductible against current income taxes.

Over a lifetime the analysis is quite complicated. Simple retirement planning spreadsheets are not sufficient to model all the critical tradeoffs. The choice is not only about tax rate changes. Instead, the decision needs a fully personalized financial planning projection and analysis of a person’s lifetime savings, taxes, and assets.

(Here is where you can find a sophisticated Roth IRA comparison calculator that makes automatic this regular IRA or tax-advantaged employer plan retirement account versus contributing to “Roth” tax-advantaged employer plan or IRA retirement account analysis.)

Whether or not a family will save enough and invest carefully over their lives dominates the Roth retirement plan versus the “deductible against current income taxes” regular retirement plan additional investment decision.

When an investor does not make enough money, does not save aggressively, does not strictly control investment costs, and/or cannot accumulate a large enough investment asset portfolio, then that person will not have to worry about being in the upper income tax rates when retired — regardless of whether federal and state income tax brackets have changed by retirement. If an investor will not have substantial enough assets and income in retirement, then the present tax advantage a person will get from choosing a traditional retirement plan additional investment will tend to be much more economically advantageous over a life cycle.

Note: This article ONLY talks about personal financial circumstances where the person has the choice of making a “deductible against current income taxes” traditional IRA or 401k contribution versus a currently “not tax deductible” Roth IRA or 401k additional investment. When you can’t take the current tax deduction but can make a Roth contribution, then the Roth deposit is best.

A fully automated, do-it-yourself financial planner with a Roth retirement planner calculator is a must to produce a very high quality family financial strategy

Furthermore, to make a fully personalized long-term money management strategy demands that you use an excellent financial planning worksheet with a superior financial investment software and the leading financial calculators.

Choose the best all-in-one personal financial planning software home PC program with the top retirement income calculators, the top personal budget planner, and excellent financial investment software for your personally customized life long personal finance planning.

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Give to Relief in Haiti - Get Immediate Tax Deduction on 2009 Tax Return

Raleigh NC Accountant

A few days ago in a email news post I made the distinction that the Haiti disaster is now a qualified disaster says the IRS (http://www.irs.gov/newsroom/article/0,,id=218615,00.html).

I said in the email that the IRS was rumoring that people are able to make a deduction for contributions to Haiti on the current year’s (2009) tax return - rather than having to wait until you do your 2010 tax return. Certainly this could be a huge reason to donate for people who wanted to give money to the people of Haiti to help them get back on their feet! Are you feeling the pressure of today’s taxes? Right now you can get $100 off your tax return for Cary NC Tax Preparation needs!

As it turns out, the suggestions I heard and that you possibly have read are TRUE! On January 22nd, the IRS adopted a certain tax relief provision that will allow contributions for the Haiti disaster made after January 11, 2010 and before March 1, 2010, will be deducted on your 2009 tax return. Or, you can choose to take the deduction to your 2010 tax return instead, on the chance that in case you did not want to take advantage of this great incentive to help those in need.

The people of Haiti are hurting very badly. These kinds of disasters cannot be avoided, and are well, devastating. Earthquakes and other forms of environmental disaster cause vast amounts of destruction and widespread loss of homes. Entire families don’t have access to food or clean water. In many cases these families do not even have the capability to acquire any level of stable living environment without the help of other countries’ efforts (funded by donators like you!). Do your part today and donate whatever you can to assist the people of Haiti. I would greatly appreciate the added effort, and I am sure every one of the struggling people in Haiti would appreciate it to!

Stay tuned for more articles and information regarding tax season, taxes, and Haiti!

http://www.marccpa.com

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The Most Popular Free Tax Help

Free is a word that most people like to hear. This is especially true if you are hearing it in conjunction with taxes. Free Tax Help is a plus for people because there is a 50 percentile chance that when all is said and done.

Finding information in this era is really as simple as making a Web site based search engine research. There is a plethora of information available at little to free and all you have to do is search for it.

Let’s admit it, a Certified Public Accountant, the local tax service, a proper software package and even your sister in law are all candidates to assist you with your taxes. Some of them offer cheap or free tax help and some are high-priced.

Some of these options are more intelligent than others and some are just simply unintelligent. But there is a place I believe you never thought to check. This would be the offices of the Internal Revenue Service also well-known as IRS.

Definitely yes, the IRS provides free IRS tax help and the plus here is that they are the ones that are likely to not only know the answers but have the correct forms and know how to fill them out.

More than once I have lost confidence and walked out of a tax professional’s office because they had to go look up the answer.

It is not that I don’t want to wait for them while they are looking it up or just giving me any old answer; it is that if I pay someone to help me I expect them to have information and training necessary to get the job done. Imagine if a brain surgeon had to stop.

The bottom line is that there are options to conventional services. You are also able to visit local organizations and see about special free tax debt help available at your district.

The elderly sometimes get specials from the local governments to help them. Like I said there are many places these days to get that help when it is time to get on the taxes.

One small mistake here could actually end up costing you many thousands more in penalty and interest payments so you need to make sure that you can check references on any low cost or Free Tax Help that you find out there. You certainly don’t want any suprizes creeping in there.

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Why pay when you can e-file for nothing?

1. Turbo Tax Free Edition

You probably already know that if you make a lot of money or have complicated taxes you won’t be able to file your taxes for free. Usually, for people with high incomes or a lot of assets, it makes sense, and it’s worth it, to pay someone to do your taxes. But, if you’re like me, filing your taxes is just a matter of plugging the right numbers into the right places.

Turbo Tax Free Edition is a good option for people in this situation. You can download this program from www.turbotax.com. If you’re worried that you need extra help to avoid tax debt, there are several different programs that you can pay for to e-file your taxes through Turbo Tax. There is also a free online from H&R Block at www.hrblock.com.

2. IRS Free File

This program is a partnership between the IRS and private tax-preparation companies. You may only file for free if you made less than $ 57,000 in 2009. This program is only for filing federal taxes, so if you live in a state that has income tax, you’ll need to file those separately. IRS Free File is at www.irs.gov/efile.

IRS Free File gives you the option of using tax software with step by step help. You can also file the tax forms online without tax software, after completing the forms yourself.

3. TaxAct Free Federal

This program is actually the one I used last year. There is an option at the TaxAct web site for filing your state taxes, too, so this is a good option for anyone who doesn’t have complicated taxes. TaxAct is simple to use, and really quick.

TaxAct is located at the painfully obvious web address of www.taxact.com, simply enough. One of the best things about e-filing taxes is that it generally makes your return come more quickly, if you’re owed one, because you can get it directly deposited into your bank account.

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Secrets to Abating an IRS Levy

26 U.S.C. § 6330(e) includes a provision that is little acknowledged and underutilized by persons dealing with an Federal tax levy of their bank account or pay. That subsection provides in pertinent part:

“(e)  Suspension of collections and statute of limitations
“(1) In general
“… if a hearing is requested under subsection (a)(3)(B), the levy actions which are the subject of the requested hearing…shall be suspended for the period during which such hearing, and appeals therein, are pending…”

The suspension of collection activities by timely asking for a Collection Due Process Hearing (CDPH) is a highly useful tactic to bring to a halt an IRS levy on a bank account or paycheck. I have made use of this provision to bring to a halt an Internal Revenue Service  levy in as little as two days. I recently put a remark in my shopping cart that even a dancing bear could bring to a halt an Internal Revenue Service  levy by a timely request for a CDPH hearing as Congress provided in 26 U.S.C. § 6330(b)(1).

Conversely, a dancing bear would not be able to keep IRS collection activity put off and most likely neither would most of us. In spite of all the postponements while appeals are pending; and in spite of being able to retrieve whatever cash you had in the bank when the Notice of Levy showed up from the Internal Revenue Service; and despite the fact of receiving complete paychecks during those delays; in the end, the end of the line will arrive and the  IRS (Internal Revenue Service) will resume collection activities as they were before the hearing was asked for. At the point this happens the majority of people will be right back where they started; dealing with a levy by the IRS (Internal Revenue Service). It is because of this unpleasant reality that I put up nine, no obligation videos, 4-10 minutes long at www.irsterminator.com discussing strategies I have arrived at that make keeping IRS collection activities suspended indefinitely a very real likelihood.

There are two aspects to winning a CDPH hearing: 1) Taking affirmative strategies with the object being too prevail in the hearing as I discuss in the videos referenced above; 2) Avoiding bringing up issues that would cause you to lose the hearing. Avoiding losing issues is a matter of doing a little study and reviewing what issues have been raised in the past that lost.

Rohner v. U.S., 2003.NOH.0000145 (N.D.Ohio 2003) is the case that I will address in part in this article. Rohner lost his Collection Due Process hearing and appealed to the Federal District Court. I was able to find his case by searching the District Court data base at www.versuslaw.com. I made an hour and forty minute video about how to use Versuslaw to do research and that video is available for you to learn to do online legal research too at www.bearscart.com in the “law study” category.

In the section of the Court’s decision entitled “Factual and Procedural Background” the Court recounted:

“Although Plaintiff submitted Forms 1040 to the Internal Revenue Service (IRS) along with copies of Forms W-2 indicating his wage income for the years 1996 and 1998, he reported no income on the returns and attached statements containing frivolous arguments as to why he was not liable for an income tax for those two years…With regards to the 1998 tax return, the IRS then sent Plaintiff a letter dated May 24, 1999, advising him that a frivolous return penalty of $500 under 26 U.S.C. § 6702 would be assessed against him unless he corrected his position within 30 days…Plaintiff failed to correct the Form 1040 and the IRS assessed § 6702 penalty against him on September 13, 1999, with respect to the 1998 Form 1040…The IRS also accessed Plaintiff a § 6702 penalty on November 13, 2000, with respect to the 1996 Form 1040, because he submitted a Form 1040 for tax year 1996 showing no income with an attached statement containing frivolous arguments on July 21, 2000.”

So, part of what Rohner was trying to do was use the hearing to get out of paying frivolous return penalties. The IRS sent Rohner a Notice of Intent to Levy that informed him of his right to a CDPH hearing and he requested the hearing. After losing in the CDPH hearing, Rohner lost on appeal to the Federal District Court:

1) Rohner’s claim  that he did not receive  a notice of deficiency respecting the § 6702 frivolous return penalty was declined as being groundless as there is no requirement that a notice of deficiency be issued with respect to these penalties. The Court held that deficiency procedures do not apply to the assessment or collection of frivolous tax return penalties.

2) Rohner’s claim that he did not receive a non-discriminatory hearing because the IRS neglected to comply with his requests for documents was refused by the Court as unsubstantiated. The Court held that Section 6330 did not give permission for production of documents or other investigative demands in connection with a collections due process hearing.

Rohner mentioned additional unsuccessful matters on appeal which will serve as the basis of a different article. The Court ended up holding that the Internal Revenue Service’s administrative determination was to be upheld. Decisions such as this one have always served me as an inspiration and not as a deterrent. At least a case like this serves up a forewarning with regard to those who have current cases coming after. To furnish yourself the greatest chance of triumphing examine the nine videos at www.irsterminator.com.

Follow me on Twitter.com/legalbear See you there. :-)

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By What Means Do I Prevent an IRS Notice of Levy On My Financial Institution or Work?

In order for the Internal Revenue Service to abide by the directives of Congress, it is requisite that they to start with, hand their levy target (that would be you) what is called in the statutes a Final Notice of Intent to Levy pursuant to 26 USC § 6330(a)(1) which provides in pertinent part that no levy may be made on any property or right to property of any person unless the Secretary has advised such person in writing of their right to a hearing under this section before such levy being made.

26 USC § 6330(a)(2) provides that the notice required under paragraph (1) shall be handed to you personally; left at the dwelling or usual place of business of such person; or sent by certified or registered mail, return receipt requested, to such person’s last known address; not less than thirty days before the day of the first levy.

When you take delivery of the notice, it is vital that your demand for the hearing be made timely. 26 USC § 6330(a)(3) specifies that the information included with the notice the IRS sends you shall include notice to you of the right to request a hearing during the 30-day period under paragraph (2).

When you take delivery of the aforementioned notice and read it you will see that 26 U.S.C. § 6330(e) provides that as soon as a Collection Due Process Hearing is timely requested “the levy actions which are the subject of the requested hearing…shall be suspended for the period during which such hearing, and appeals therein, are pending…” Requesting a Collection Due Process Hearing is the most successful way to halt an IRS levy on a bank account or paycheck since suspension of collection activity upon such request is mandated by the law.

The IRS has a tendency to try and base your entire hearing upon what you put in that request. It is for this reason I highly recommend using the addendums that are part of my IRS Terminator package. I explain the importance of the addendums in the videos at www.irsterminator.com.

I have seen the IRS fax a release of levy to an employer in as little as two days subsequent to the Collection Due Process Hearing request being sent. There is a little trick to getting such fast action which is explained in the IRS Terminator package. This makes it possible for the employee to never miss a full paycheck and for the bank depositor to retrieve their funds.

It is not difficult to block an Internal Revenue Service levy by timely applying for a CDPH as provided in 26 U.S.C. § 6330(b)(1). However, if correct steps are not taken to  come out on top in the hearing, eventually the IRS will get around to holding the hearing and in all likelihood rule against you and move forward on the levy. The IRS Terminator package is calculated to give you the absolute best chance to come out on top in your hearing.

It has happened frequently that I have been told circumstances where the Internal Revenue Service sent a levy to an employer or bank  ahead of sending the Final Notice of Intent to Levy. It is still workable to demand a CDPH hearing in a situation such as this and get the collection action put on hold before the IRS takes your paycheck or bank deposits. There are forms in the www.irsterminator.com package whose propose is to competently request a CDPH in a situation where the statutorily required notice has not been sent.

There are almost certainly not many feelings worse than the one that overtakes you when your financial institution or work place notifies you that they have been served a Notice of Levy by the Internal Revenue Service ordering them to keep most all of your next paycheck or deliver the funds in your bank account to them. My IRS Terminator package provides you with the equipment you should have to render the circumstances as meaningless as possible and ultimately come out on top.

Follow me on Twitter.com/legalbear See you there. :-)

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Missing Simple Deductions can cost Taxpayers

Most taxpayers are honest

The vast majority of American taxpayers are honest when it comes to filing and paying their taxes. The huge tax cheats are rare. Instead of taking advantage, the opposite is in fact the case - most US taxpayers don’t take advantage of deductions and overpay. The IRS reports that taxpayers usually make the same mistakes every year. The biggest mistake made on returns every year is not including your Social Security number. This will only cost a taxpayer time, not money.

Convenience can be costly

Approximately 85 million taxpayers choose to take standard deductions as opposed to itemizing their tax returns. Only 46 million people actually itemize. The smaller group of taxpayers claims twice the deductions of the larger group. Itemized deductions account for a trillion dollars of deductions while standard deductions account for a cheeky half trillion. Only legitimate deductions are included in the figures from the IRS, so itemizers aren’t cheating. Most people admit to filing only the standard form out of convenience and lack of documentation. The convenience and lack of proper keeping of records could be costing taxpayers to pay up to four times how much they should be.

State sales tax most overlooked

Everyone is entitled to claim state sales tax they paid during the course of a tax year. The IRS provides tables showing how much can be deducted for each state based on income. The biggest advantage is for those people living in states that do not have a state income tax, but everyone can benefit from this deduction. Also, there are items that can give a taxpayer a bigger deduction that what tables will show you. For example, if a boat, car, or airplane was purchased, that sales tax can be added to the amount shown in the table. State sales tax on home building supplies are also deductible.

Giving could get you a deduction

Most tax payers already take the appropriate deductions for contributing to charitable organizations in the form of money. Taxpayers deduct contributions to religious organizations, homeless shelters, and so forth. However, most taxpayers overlook the out-of-pocket deductions available for doing good works. For example, if you bake a cake for a church fundraiser, the cost of the ingredients is tax deductible. The taxpayer can also claim 14 cents per mile for delivering the item.

Children benefit from Mom and Dad’s help

Interest paid is a common deduction. Most people know to deduct interest paid on student loans and mortgages. College students and graduates not claimed as a dependent can benefit from Mom and Dad’s help. The IRS treats interest paid on a student loan by a parent as money given to the student who then paid the debt. As long as the child is not claimed as a dependent by the parent, the child can claim the interest as a deduction on his/her tax return.

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