Charlotte Attorney's Informative Blog

Taxpayer’s are often ignore notices from irs and the state and allow the problem to snowball, says Tax Attorney, Victorianne C. Maxwell. Finding a solution to your tax debt asap is the best thing to do and can help you avoid unnecessary penalties and garnishments.

Collectability of the tax debt

IRS has a 3-year statute of limitations for the IRS auditing a tax return (from the date of filing) and a 10-year statute of limitations for collecting tax once it is deemed owed.

Under N.C. Gen. Stat. § 105‑241.8, North Carolina Department of Revenue has three (3) years from the filing of the return or when the tax would be due. Pursuant to N.C. Gen. Stat. § 105‑242, the department of revenue has ten (10) years to collect on a debt, once the assessment has been properly performed.

Programs available for Tax Payers

Under the new and expanded provisions, certain taxpayers who have been unemployed for 30 days or longer will be able to avoid failure-to-pay penalties. The IRS is also doubling the dollar threshold for taxpayers eligible for installment agreements to help more people qualify for the program.

Installment agreement programs are similarly available for North Carolina State Tax Collections.

OTHER FORMS OF TAX RELIEF

There are a number of things that can be done to relieve a taxpayer’s liability, often times filing an unfiled return with all the taxpayer’s available credits and exemptions will relieve their liability. In other occasions, where a return has been filed, these old taxes are subject to discharge in bankruptcy or are no longer collectible. Talking to a tax professional will be the best thing an individual can do, even if a garnishment is already in place.

Maxwell Law Firm, PLLC represents clients all over the United States on Tax related issues: Garnishments, Tax Liens, Tax Collection Defense, Offers in Compromise, Installment Agreements, and Income Tax Services you may call them at 704-461-1883 or receive a discount off our already low fees by your appointment scheduling online.

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SAVE 30% OFF THE FEES WHEN you prepay for your tax preparation services and schedule the Service online.

You’ve decided to hire someone to file your taxes this year. You’ve looked at your tax pro options and decided which kind of paid preparer fits your needs.

Now the next step: Thoroughly vetting the tax professional.

Remember, regardless of who fills out your 1040 and sends it on to the IRS, when you sign your tax return, you are legally responsible for everything on it. So it’s crucial to hire a tax pro who’s not only knowledgeable, but also ethical.

Most tax preparers are honest and provide quality service. But as with any consumer transaction, it’s up to you, the buyer of the services, to make sure you’re hiring a true professional.

Here are some things to keep in mind when someone else prepares your return.

Check on IRS registration

Starting this year, preparers must be registered with the IRS to file a return. Make sure the person you hire has done so.

If you live in a state that licenses or registers tax preparers, contact that regulatory office to make sure there are no complaints against the person you plan to hire.

Do they belong?
Check your preparers professional affiliations. Membership in such groups requires that a tax preparer follow a code of ethics and participate in continuing education programs.

Office hours are important
Make sure your tax preparer will be around after the April filing deadline. Some offices open up just during filing season and then disappear as soon as returns are filed. But the IRS can come asking questions about a return months later. The person who helped you file it should be around so you can get the answers to any possible IRS questions. We are open five days a week and if you are unable to come to the office you can mail or fax your tax documents to us. Our turnaround time for tax information that are faxed or mailed in is often less than a week.

Who does the actual work?
If your tax preparer is part of larger firm, determine whether he or she will be the person actually doing your tax work or whether your taxes will be delegated to someone else in the office, perhaps a person with less tax training.

Also find out if your preparer exports tax returns for preparation. Foreign countries do not have the same security and privacy laws as the United States, nor is there any recourse should your information be compromised as a result of lax or nonexistent privacy procedures.

How do they charge?
Don’t hire a tax preparer whose fee is based on how big of a refund you get. That’s usually an indication that tax law envelopes will be pushed to get you more money than you’re rightfully entitled to just so your tax preparer can make more money.

Similarly, avoid preparers who claim they can get you a larger refund than other preparers. If your returns are prepared correctly, every preparer should come up with essentially the same tax and refund numbers. Our fees are competitive and relatively low for the amount of expertise and professional services you are receiving. HR Block charge anywhere from $200 – $300 for a single w2 earner where as we are charging you $150.00 or less. HR preparers are only required to have a high school diploma. Our Attorney has been assisting clients with tax related issues for several years and is familiar with most deductions.

Find someone who wants to know
Be wary of preparers who aren’t concerned about documentation. Reputable tax preparers will request to see your receipts and will ask you detailed questions to determine your qualifications for expenses, deductions, credits and the like. It’s always better that these questions are asked by your preparer and answered before filing, rather than later by an IRS examiner.

Avoid blank return requests
Remember that warning about being responsible for the return you sign? If a tax preparer asks you to sign a blank tax return, find a new tax pro. Never sign a tax document before it’s finished and then only after you’ve read it carefully and understand the entries.

If you’re unsure about an entry and your tax pro can’t explain it to your satisfaction, then don’t sign the return. A tax preparer who won’t or can’t explain the items on your 1040 and associated schedules is either incompetent or unscrupulous.

Sure, thoroughly checking out your tax pro takes some time. But it’s time well spent when it ensures that your taxes are completed properly.

For several years now Attorney Maxwell has assisted clients with tax collection defense and has seen several of her clients audited based on improperly prepared returns and countless other issues and errors on income tax returns which cause her clients a lot of trouble and money in the end. She is a Tax Lawyer that offers Low Cost Income tax preparation services, FREE ELECTRONIC FILING for both individuals and businsess tax payers, 1040 filings, 1099 filing assistance,  and year round income tax service

She also assists with:

•Itemized Deductions (Sch A)
• Interest and Ordinary Dividends (Sch B)
•Sole Proprietorship Income & Expenses (Sch C)
• Capital Gains and Losses (Sch D)
• Calculating Cost Basis on Long Term Investments
• Rental Property Income, Expenses and Depreciation (Sch E)
• Household Employment Taxes (Sch H)
• Income Tax Filing Extensions

Clients have several options for having their returns prepared. We have two locations one on Charlotte and One in Concord. For more information see our tax intake form. Save 30% off the fees by prepaying for the service and scheduling your appointment and or the service online.

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BY TAX ATTORNEY

Under some circumstances people may not be required to file a Federal Tax Return. But in most cases individuals are required to file a Federal Tax Return annually.

2011 Minimum Income Requirements to File a Federal Income Tax Return

If you are unable to pay to have your return prepared there are low income free filing services available at VITA locations. Our firm offers great fast, affordable services and free e-filing services too our clients.

Maxwell Law Firm, PLLC represents clients all over the United States on Tax related issues: Garnishments, Tax Liens, Tax Collection Defense, Offers in Compromise, Installment Agreements, and  Income Tax Preparation Services  you may call them at 704-461-1883 or save 25% off our already low fees by your appointment scheduling online.

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People often come into my office once they owe a IRS or the State unpaid taxes and If they are a W2 employees? and then I ask them what their withholding exemptions are on their w4 form? Says Tax Attorney Victorianne Maxwell of Maxwell Law Firm, PLLC.

WHAT IS A W2 FORM?

A W2 an IRS tax form issued by employers and stating how much an employee was paid in a year. It also includes your taxable income and how much was withheld from your wages for federal and state taxes if they apply. The W2 is sent or transmitted to IRS and provided to the employee at the beginning of the current year for the previous calendar year. This is why IRS is able to know how much you have earned in one year, whether or not you report the income.

WHAT IS A W4?

When you are hired by an employer they should have you fill out a W4. It is an IRS form that your employer has you fill out so your employer can withhold the correct federal income tax from your pay. The purpose of the form is to prevent  having too much or too little Federal income tax withheld from your pay.

WHAT SHOULD BE INCLUDED ON YOUR W4 FORM?

The W4 Should include:

· Your name,

· Address,

· Marital Status,

· Social Security Number &

· The number of withholding allowances you are claiming.

WHAT EXEMPTIONS SHOULD I CLAIM?

An withholding allowances is essentially the same as the number of exemptions you can claim when you will file your tax return. You can claim one allowance for yourself, one for your spouse and one for each of your dependents. You should not claim that you are tax exempt unless you meet the criteria. I will discuss this in a later blog. Even if you do have several exemptions you can claim as little as 0 or 1 for yourself. I recommend that most of my clients do this. People will sometime say that they do not want to give IRS a interest free loan that they will eventually refund me. Here is my take on things. IF you claim too many or all your exemptions then there is a strong possibility that enough taxes will not be taken out and you will end up owing a balance on your taxes that year. Even if you are getting the money you put in come tax season, it is far better than owing a balance every year. In the long run if you owe a balance you will be looking at paying possible fines and penalties, in addition to those balances. Fines and Penalties will cost you more than giving IRS an interest free loan.

Maxwell Law Firm, PLLC represents clients all over the United States on Tax related issues: Garnishments, Tax Liens, Tax Collection Defense, Offers in Compromise, Installment Agreements, and  Income Tax Services  you may call them at 704-461-1883 or save 25% off our already low fees by your appointment scheduling online.

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TAX DEFENSE ATTORNEY

MISSION

Our Goal is to help you solve your tax problem. More often than not we are able to alleviate our client’s IRS problems.

SERVICES OFFERED

We discuss your matter with IRS on your behalf and deal with telephone and mail correspondence, until the matter is resolved. We offer the professional tax help and advice for reasonable fees.

Some of our areas of expertise include:

• IRS Bank Levies
• IRS Tax Liens
• IRS Audits
• Settling Back Taxes
• Discharging Old Taxes
• Tax Attorney Services
• Offer in Compromise
• Delinquent Tax Returns
• IRS Payment Plans
• Payroll Tax Problems (941)
• Investment Fraud Representation
• Innocent Spouse
• Tax Preparation (including Filing old returns)

Why should I hire an Attorney

If you fail to communicate with the IRS, you are more likely to face tax lien, seizure of your tax refunds, attachments of your checking accounts, and wage garnishment. IRS is authorized to put lien on your personal and real property, WITHOUT A COURT ORDER. Even if there is delay in paying taxes from your side, you tax attorney will assist you in communicating with the IRS and get rid of any tax liens and provide you with a solution to resolve those issues.

Why should you hire us

We have been assisting debtors with tax issues since 2008. We take the time to evaluate your unique situation and determine the best line of defense . In certain cases you could end up paying less than half of the overall debt or nothing at all! Our firm also assists clients with filing for bankruptcy and certain tax debt can be discharged in bankruptcy.

Locations & Appointments

Maxwell Law Firm, represents clients all over the United States on Tax related issues: Wage Garnishments, Tax Liens, Tax Collection Defense, Offers in Compromise, Installment Agreements, and Income Tax Services for both IRS and the state of North Carolina collections. We have offices in Charlotte and Concord, North Carolina. Our two offices offer clients the convenience of meeting face-to-face with an attorney without having to travel far and take time away from their live. You may call 704-461-1883 or save 25% on the bankruptcy fees by scheduling your appointment online. PLEASE NOTE TELEPHONE CONSULTATIONS ARE AVAILABLE. To schedule a consultation, call 704-780-1100 or save 25% off the services by scheduling your appointment online here http://maxwelllegal.com/consultations.html. TELEPHONE CONSULTATIONS ARE AVAILABLE.

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At Tax Resolution Services, we all agree that tax evasion is never a good idea.  People who pull tax scams, such as filing false tax returns, may feel like they are lining their pockets with money at the moment, but the money does no good once they are in prison.  Tax cheats usually end up in prison and with a hefty fine to boot, as in the example below.

The manager of a Warrensburg, Mo., restaurant has pleaded guilty to a role in a conspiracy to file false tax returns.

Javier Posada, 43, of Warrensburg, a naturalized U.S. citizen from Mexico, admitted that he participated in a conspiracy to under report income received at several El Vaquero restaurants in Missouri from June 2002 to August 2008.

Conspirators removed cash from the register or directed others to remove cash from the register, and the restaurants failed to report the receipt of that cash for tax purposes. They also created fraudulent sales ledgers and destroyed guest tickets.

Under the terms of the plea agreement, Posada must pay $382,296 in restitution to the IRS. He also faces up to five years in prison.

Related posts:

1. Two Tax Rules: Avoid Tax Scams and If You Need Tax Relief Consult a Tax Professional

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It never hurts to be prepared. That's the thinking of freshman Rep. Daniel Webster.

The Florida Republican has introduced the Prioritize Spending Act of 2011 (H.R. 2402) to, he says, "ensure America's priorities are preserved in the event that the debt ceiling is reached."

"It is important that while we fight for true spending transformations," said Webster in announcing the bill, "we also prepare to prevent any default by protecting our priorities."

So just what does Webster think should be paid with the actual dollars Uncle Sam will have on hand if there's no debt ceiling deal?

First, the U.S. should prevent default by making the country's debt payments.

Then we should continue to pay military salaries and benefits in "such amounts as the President certifies to the Congress are necessary to carry out vital national security priorities."

Finally, Webster would spend what we have left on providing Social Security and Medicare benefits.

Some cash left over: Actually, says Webster, after meeting these suggested obligations, the Treasury should have around $30 billion left over each month.

The decision on what else would be paid, he said, would remain with the executive branch.

Webster emphasizes that his proposal is purely a stopgap spending plan if worse comes to worst in a few weeks.

"This bill is intended to be a short-term measure to require the Treasury to pay the specified accounts until a debt reduction plan can be initiated," he said in a fact sheet released in connection with the bill's introduction.

Picking priorities: So how did he come up with the spending priorities?

"The purpose in prioritizing public debt repayment is to keep the United States from entering a period of default on its existing loans," said Webster.

As for the military and senior citizens, Webster said "it is irresponsible to allow a situation to develop where our military and seniors, two groups of citizens that rely on Washington to fulfill its promises, may be forced to go without the programs that provide for their basic needs."

The bill is pending in the Ways and Means Committee. Cosponsors, all Republicans, are Rep Richard Nugent, Bill Posey and Dennis Ross, all of Florida; Michael Turner of Ohio; and Joe Wilson of South Carolina.

Do you agree with the Representatives' choices on spending our potentially limited federal funds? What do you want from government? What would you pay for, first and last?

History of the debt ceiling: While we are all waiting for resolution of the current U.S. fiscal situation, it's perversely reassuring to realize that this isn't anything new.

Glenn Kessler, The Fact Checker for the Washington Post, explains the debt ceiling debate, providing some perspective, history and evaluation of recent rantings about what's happening or not happening.

Related posts:

• What's wrong with the Democrats when it comes to budget negotiations?
• GOP needs to learn how to declare victory
• The closure of Minnesota, America's fiscal future in miniature?
• What government services would you give up for a lower tax bill?

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If you own a home, you pay property taxes.

And if you're like a lot of other homeowners, the statement you got from your local tax assessor-collector revealed that your taxes headed up while your house's value slipped.

In those situations, you should look into contesting your property valuation and the tax bill upon which it was based.

It's also a good bet that most such appeals are by homeowners in places that have relatively high property taxes. That would put a large number of them in New Jersey.

The median property tax in the Garden State in 2009 was $6,579.

That's the largest median property tax amount amount in the country, according to data compiled by Credit Sesame. And it's this week's By the Numbers figure.

How does that figure compare to the lowest property tax state? The New Jersey median property tax amount, according to the lending data website, was 27 times more than what Louisiana property owners paid.

Here are few more N.J. numbers:

• The $6,579 in taxes represented 1.89 percent of a home's value.
• The tax amount was 7.45 percent of the property owner's income.

Now to the big question: Just how do your property taxes compare?

You can find out at Credit Sesame's interactive map:

Click on the map (or here) to check your state's property tax stats.

Related posts:

• Fighting rising property taxes 
• Property tax appeals on the rise
• How do your property taxes stack up?
• No Schedule L for 2010 property taxes
• By the Numbers archive

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