Archive for October, 2011
Back Taxes Relief From the IRS Stimulus Package
Posted by admin in Tax Relief on October 16, 2011
Life can be busy and money is not always available so it is not uncommon for a person to have failed to file taxes at one year or another. This year however is an optimal year to catch yourself up because the economic stimulus check can be used as back taxes relief. If you owe money to the IRS that you simply do no think you have, then this is especially your year. This windfall to get the economy going may be just the incentive you need to get back on the good foot with the IRS. You have to of filed for 2007 to get your stimulus check so take this opportunity to invest in this stimulus check in paying back your taxes owed.
The government has a ten year period to collect from you any taxes once the amount has been formalized. A formal notice that you owe back taxes could be the balance from taxes you filed that you were unable to pay in total, their numbers after an audit, or if you have allowed a proposed assessment become final on your taxes. Relief from the ominous wondering, should you have moved and not heard from them whether or not you owe may be found simply by calling the IRS and asking if you have any outstanding tax liabilities. They are legally required to share such information. Your past employers will hold your W-2s for four years and push come to shove the IRS has copies of your information if you do not. Once you have the information and you do indeed have an outstanding tax liability, your best bet at tax relief is to hunker down over your old records, possibly even hire a tax professional and file your old returns. Filing back taxes often provides relief of its own since you can make use of all the deductibles of which the government is not aware.
The IRS will at times create a proposed assessment of your tax liability and attempt to send you notice of such. In the event that you do not file returns for the year assessed, they will take their assessment as final and will have the next ten years to collect its total from you. Just as the IRS had ten years to collect any formal tax liability, you have three years to collect your outstanding refund. The best way to find relief is to file your taxes and do so within your own three year deadline from their original due date to collect any refund before it expires. Any refund coming your way when you file within the three year deadline will serve as tax relief when it is automatically applied to an outstanding balance of another return that is also within the three year deadline. As mentioned earlier you can only get the economic stimulus check if you filed. Even if you owe rather than have a refund, this stimulus check will be automatically applied to your taxes owed. So if you may not have received your stimulus check, they have been applied against the back taxes you may have owed, which is a great thing because this means less penalties and interest in the future on these unpaid back tax amounts.
For more information on solving tax debt issues visit: Back Taxes Help (BackTaxesHelp.com) a website dedicated to solving every IRS back tax problem, giving you the information the IRS does not want you to know.
To Connect with a tax specialist please visit here: Back Taxes Specialist
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A UK Employee Can Claim Tax Relief Using Their Vehicle For Work
Posted by admin in Tax Relief on October 16, 2011
It is common practise for a UK employer to pay an employee expenses when that employee uses his own vehicle for business journeys. Often the amount paid is based upon a standard rate per mile which varies from employer to employer. There are tax issues every employee should be aware of to maximise tax free expenses and minimise income tax payments.
The nature of the business journeys must adhere to certain rules in order for these expense payments to be tax free. Not usually an issue when an employee is paid expenses but nevertheless something each employee should be aware of.
In order that the payments are free of tax are three general rules. First the payments must be made to yourself and not to a third party, for example another company receiving the money on your behalf. The use of the vehicle must be a work journey and excludes travel to work where it is considered that work place is a permanent place of work. And finally the amount paid must be within the mileage allowances fixed by the government and part of the Inland Revenue rules on the limits for mileage payments.
Any other payments relating to the use of your own vehicle which do not fall within the above rules are regarded as additional income and subject to income tax and national insurance deductions as would be other forms of payment. Also any payments made in respect of non work journeys fall outside the rules and would be taxed as additional income.
A work journey is one which you must carry out as part of doing that job including when requested by the employer to conduct a specific business journey on its behalf. Visiting suppliers, clients, delivering goods and attending meetings outside the normal workplace would all be considered work journeys.
A journey to a normal place of business would not be considered a work journey and that rule also excludes detours during the journey for example to visit a client or drop off goods. However if the detour on the way to work is significant then the excess mileage covered would be allowable and the expenses paid not subject to tax.
The approved mileage allowance for cars and vans in the UK is 40p per mile for the first 10,000 business miles and 25p per mile for each business mile over 10,000 miles in each tax year. The approved mileage allowance for motor cycles is 24p per mile for the first 10,000 business miles and 24p per mile for each business mile over 10,000 miles in each tax year. The approved mileage allowance for bicycles is 20p per mile for the first 10,000 business miles and 20p per mile for each business mile over 10,000 miles in each tax year.
These rates are the maximum levels of expenses an employee can receive tax free during a tax year, were set in the financial year 2002-03 and still fixed at that level in the financial year 2007-08. Employees are not due any tax free payments on any other vehicle running costs. For example if you break down on a journey and your employer assists with the financial cost of repairing that vehicle any amounts paid over and above the maximum mileage rates quoted above would be taxable.
The bad news is if your employer pays you more than the above mileage allowances then the excess amount paid is taxable as additional income. If for example your employer pays 45p per mile for the first 10,000 miles then it would be normal for that employer to include the different between 45p and 40p in your wage slip and deduct income tax from the 5p.
The good news is if your employer pays you less than the mileage allowances then you are entitled to claim mileage allowance relief on the shortfall. If for example your employer pays 35p per mile then less than 10,000 miles you are entitled to claim the mileage allowance relief on the number of miles at 35p multiplied by the 5p shortfall.
To claim the mileage allowance tax relief employees must maintain a record of the work journeys and the amounts paid. Those records should state the date, mileage covered, a brief note of the journey and the amount paid by the employer, records which may be required to substantiate the mileage allowance relief. To actually make the claim for relief this can be done by sending a letter with the details to the Inland Revenue at the end of the financial year or alternatively request and complete the Inland Revenue form provided for this purpose.
Using different vehicles during the tax year is not relevant. The total mileage of all vehicles used is the relevant figure. However being paid a mileage allowance by more than one employer is relevant.
If during the financial year an employee has been paid a mileage allowance by more than one employer then the total paid from all employers must be added together to produce the total amount paid. For example if one employer paid 30p per mile for 1,000 miles and a second employer paid 35p per mile for a further 2,000 miles then the total payment would be 1,000 pounds (300 + 700) and the mileage allowance would be 1,200 pounds (400 + 800). The mileage allowance tax relief in this example would be 200 pounds at the employees maximum tax rate.
If an employee has not claimed mileage allowance relief in past years then application can be made to the Inland Revenue to reclaim the relief for a period up to six years after the year the claim was not made. When making a claim for unclaimed tax relief in previous years the Inland Revenue are likely to request some evidence of the claim which your previous employer may be able to provide.
Good luck with your claim for mileage allowance relief. If you found this article useful please copy and submit the article to forums and blogs across the internet to make as many people as possible of the money out there waiting to be claimed. If posting this article then the author signature and links must also be included in the posting.
Terry Cartwright, qualified accountant in the UK designs Accounting Software providing complete Small Business Accounting solutions for small business including automated mileage allowance software and specialist Taxi Driver packages.
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Tips on How to Choose the Right Tax Relief Help
Posted by admin in Tax Relief on October 16, 2011
Due to the economic crisis the nation has gone through a few years back, the demand of tax relief help also increases thus a number of tax relief scams are also in the rise. So don’t add on to the mess that you are in by choosing the scam. You have to choose the right one who can assist you to the right direction in settling your tax debts and not the bogus bastards who want nothing but take your money and suddenly they’re gone out of the scene. You might want to consider the following tips below on how to choose to choose the right help to turn to.
Check if they are registered in the Better Business Bureau. This is one surefire way to determine if you are working with a qualified tax relief firm/company. Tax attorneys need to be certified to practice in your state, and they have to have passed the BAR.
Beware of tax relief service that will ask an upfront fee or a pre-payment. The service has not started yet so you don’t have to pay anything upfront. You should also be aware of the fees that are being charged to you and what they are for. Most of the time, a tax relief company only charges a one-time fee and some even has a flexible payment option to help ease your financial burden. A Tax attorney may collect a professional service fee or so. Truth is, getting a professional help with your tax problems can cost you money but you have to remember that dealing with the IRS agency alone can be more expensive for sure.
Do not be carried away with fake tax relief help that guarantees a solution without even evaluating what your financial status is. In resolving an IRS tax problem, you will be required to submit personal and financial information to your tax attorney or a tax relief firm/company and they will also collect information from IRS about your tax details. All the information will be evaluated and it will go through a meticulous process before they can come up with the most appropriate settlement for your tax debts.
The experience is also one important thing to consider. You can research the background of your tax relief attorney and make sure that he or she has enough knowledge in income tax information and proven results in getting tax relief assistance. You can check the people they have helped out within the past, how they were able to resolve their tax problems and find out about their success rate or stories.
Above are some of the things that you need to check and see if you are making the right choice. Instant Tax Solutions have all of them and working with them will definitely be not only the right choice but the best one. Leave your tax debt problems in their hands and they will give you back the financial freedom you were deprived of.
Click tax relief for more information.
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2 Simple Strategies to Obtain IRS Tax Relief
Posted by admin in Tax Relief on October 16, 2011
An IRS tax relief seems a very hard thing to find for those who do not know where or how to find it. Because of the frustration and stress felt by taxpayers who are facing IRS tax debts, they have the tendency to ignore the chance that they could still get things settled correctly instead of ignoring notices and trying to get away.
The good news is that you can find several tax relief help these days. There are professionals dedicated to take care of those that you could not handle. You can choose from several tax professionals to handle your tax concerns, depending on their ability to negotiate for you. You could choose a tax lawyer or attorney, a CPA or an enrolled IRS agent.
Keep in mind that the sooner you deal with your tax delinquencies, the less interest and penalties you will owe. Here are two simple ways of obtaining an IRS tax relief:
1. Remember that every problem has a solution, thus if you have unfiled tax returns, it is preferable to file them, regardless if they are two days old or two years old, than not filing them at all. Of course, filing your tax returns right away can help solve IRS back taxes and lower your penalties and additional interest.
The longer you put off your past tax dues, the more serious your IRS problems would be. Failure to file taxes makes you susceptible to possible IRS collection techniques, like a levy on your bank account or wages and may be interpreted as a criminal act by the IRS, which is punishable by a year in jail, and a fee of $10,000 for every year not filed. Remember that you have the right to file your tax return, no matter how late it is.
2.Get help to be able to save money and time. If you owe the IRS more than $15,000 in your back taxes or you have three or more years’ unfiled tax returns, it is of vital importance that you should hire an expert taw lawyer or a certified tax resolution specialist to help you.
An expert tax pro can help you save money, time and frustration by teaching you up front on what you should do to resolve your IRS problems, while helping to make sure that you do not pay a penny more than you should.
The IRS is trying to put a gentler image in the face of present economic crunch. Nevertheless, the fact remains that to be able to get tax relief, you may need help filing your unfiled taxes and paying back taxes. Keep in mind that the key to tax relief is relief, and now you have the knowledge and the power to make it happen.
Stop battling the IRS and visit IRS Relief [http://www.irs-relief.org] for more IRS Tax Relief [http://www.irs-relief.org] tips.
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