Sunday

Tax Debt? Don't Feel Bad, Even Celebrities Fall Behind With Their Tax Ob...

Thursday

How to Remove a Tax Lien from your Credit Reports


The three national credit reporting agencies, respectively Equifax, Experian, and TransUnion collects tax lien information from the county courts and are updated by the Internal Revenue Service as well.
Usually, no action is required by the taxpayer as the status of the lien is updated to show that it is released, typically prior to 30 days after the debt has been satisfied (either through the statute expiring, payment of the liability, compromise of the liability to satisfaction, etc.)  However, if you need the update to be added immediately, or it has been over 30 days and not yet showing as released, you can send the tax lien release information yourself directly to the aforementioned national credit reporting agencies.
The first step is to get a copy of your personal credit to verify whether or not the status of the lien has been updated. If it has not, you can dispute the status stating that it should indicate the lien was released. You can do all of this easily and quickly online, and can upload the tax lien release documentation online as well. If you prefer, you can also mail the documentation verifying the lien was released.
With those documents, the credit agencies should be able to update the status of the lien. The lien will then show that it has been paid and released. Paid tax liens remain 7 years from the file date.
If you need help with your a tax lien or any other tax matters please contact me at Nick@GenesisTaxConsultants.com or call me at (303) 731-3193I represent taxpayers in all 50 states and also those living abroad.

Response to Rip-off Report



As a tax professional, I should of and wish I would have handled the situation to my usual professional standards. Being conditioned to fighting the IRS aggressively on behalf of my clients, it is sometimes difficult to switch that off in the extremely rare situations when there is a strong disagreement with a client. Regardless the reasons, the truth is I did not get back to this client in a timely, professional manner and for that, I am sincerely sorry.     
Although I did issue a refund of the unused retainer, I should have refunded the entire amount since he was unhappy with the services I provided. I take full responsibility. However, I must explain the circumstances regarding his claim that I fraudulently charged his credit card. As you can see in the copy of the contract, payment form, and emails from the former client, I was authorized to charge the card, which we agreed to break up into three payments. Per my contract with this client, I had the dates of the charge documented, which I entered into my credit card processing application I used at the time. I now send an invoice that is sent directly through Paypal which allows clients to enter their credit card information securely to where no one else sees it other than themselves and Paypal.
I provided the client with the retainer billing statement and refunded all unused hours. Again, I should have made this right by refunding him his entire contract retainer amount as he was not happy. I pride myself on my professionalism and take the blame for not holding myself to my usual high standards.
I believe it is also worth noting that I also offered the client a mediation between the two of us and the Better Business Bureau which he refused.
Again, I know I should have handled this situation better and have learned from it and have certainly paid the price.
I have not had any complaints since this occurred over five years ago and have an A+ BBB record.   
My professional license can be found at the IRS Return Preparers website by searching using Germany as the country and 65812 as the zip code.  I have moved here with my wife over three years ago, where I have expanded my business expertise to assist expatriates with their tax needs.
Since moving to Germany, I have helped many taxpayers both in the States and abroad and would be happy to provide references.  You can reach me at nick@genesistaxconsultants.com, and I would be love to have the chance to win your business and work with you to resolve any tax issues and/or prepare any tax returns that need to be prepared. 

Tuesday

Top 10 Tips to Know if You Get a Letter from the IRS

Top 10 Tips to Know if You Get a Letter from the IRS

The IRS mails millions of notices and letters to taxpayers each year. There are a variety of reasons why we might send you a notice. Here are the top 10 tips to know in case you get one.

1.    Don’t panic. You often can take care of a notice simply by responding to it.

2.    An IRS notice typically will be about your federal tax return or tax account. It will be about a specific issue, such as changes to your account. It may ask you for more information. It could also explain that you owe tax and that you need to pay the amount that is due.

3.    Each notice has specific instructions, so read it carefully. It will tell you what you need to do.

4.    You may get a notice that states the IRS has made a change or correction to your tax return. If you do, review the information and compare it with your original return.

5.    If you agree with the notice, you usually don’t need to reply unless it gives you other instructions or you need to make a payment.

6.    If you do not agree with the notice, it’s important for you to respond. You should write a letter to explain why you disagree. Include any information and documents you want the IRS to consider. Mail your reply with the bottom tear-off portion of the notice. Send it to the address shown in the upper left-hand corner of the notice. Allow at least 30 days for a response.

7.    You won’t need to call the IRS or visit an IRS office for most notices. If you do have questions, call the phone number in the upper right-hand corner of the notice. Have a copy of your tax return and the notice with you when you call. This will help the IRS answer your questions.

8.    Always keep copies of any notices you receive with your other tax records.

9.    Be alert for tax scams. The IRS sends letters and notices by mail. The IRS does not contact people by email or social media to ask for personal or financial information.

10.    For more on this topic visit IRS.gov. Click on the link ‘Responding to a Notice’ at the bottom left of the home page. Also, see Publication 594, The IRS Collection Process. You can get it on IRS.gov/forms at any time.

Monday

Tips for Filing an Amended Return

Tips for Filing an Amended Return

Have you found that you made an error on your federal tax return? If so, you may need to file an amended return. Here are ten tips that can help you file.

1.    Tax form to amend your return.  Use Form 1040X, Amended U.S. Individual Income Tax Return, to correct your tax return. You must file a paper Form 1040X; it can’t be e-filed. You can get the form on IRS.gov/forms at any time. See the Form 1040X instructions for the address where you should mail your form.

2.    Amend to correct errors.  You should file an amended tax return to correct errors or make changes to your original tax return. For example, you should amend to change your filing status, or to correct your income, deductions or credits.

3.    Don’t amend for math errors, missing forms.  You normally don’t need to file an amended return to correct math errors. The IRS will automatically correct those for you. Also, do not file an amended return if you forgot to attach tax forms, such as a Form W-2 or a schedule. The IRS will mail you a request for them in most cases.

4.    Most taxpayers don’t need to amend to correct Form 1095-A, Health Insurance Marketplace Statement, errors.  Eligible taxpayers who filed a 2014 tax return and claimed a premium tax credit using incorrect information from either the federally-facilitated or a state-based Health Insurance Marketplace, generally do not have to file an amended return regardless of the nature of the error, even if additional taxes would be owed. The IRS may contact you to ask for a copy of your corrected Form 1095-A to verify the information.

5.    Time limit to claim a refund.  You usually have three years from the date you filed your original tax return to file Form 1040X to claim a refund. You can file it within two years from the date you paid the tax, if that date is later. That means the last day for most people to file a 2011 claim for a refund is April 15, 2015. See the Form 1040X instructions for special rules that apply to some claims.

6.    Separate forms for each year.  If you are amending more than one tax return, prepare a 1040X for each year. You should mail each year in separate envelopes. Note the tax year of the return you are amending at the top of Form 1040X. Check the form’s instructions for where to mail your return.

7.    Attach other forms with changes.  If you use other IRS forms or schedules to make changes, make sure to attach them to your Form 1040X.

8.    When to file for second refund.  If you are due a refund from your original return, wait to get that refund before filing Form 1040X to claim an additional refund. Amended returns take up to 16 weeks to process. You may spend your original refund while you wait for any additional refund.

9.    Pay added tax as soon as you can.  If you owe more tax, file your Form 1040X and pay the tax as soon as you can. This will stop added interest and penalties. Use IRS Direct Pay to pay your tax directly from your checking or savings account.

10.    Track your amended return.  You can track the status of your amended tax return three weeks after you file with ‘Where’s My Amended Return?’ This tool is on IRS.gov or by phone at 866-464-2050 FREE. It is available in English and in Spanish. The tool can track the status of an amended return for the current year and up to three years back. To use ‘Where’s My Amended Return?’ enter your taxpayer identification number, which is usually your Social Security number. You will also enter your date of birth and zip code. If you have filed amended returns for multiple years, you can check each year one at a time.

Still need help?  Contact Nicholas Hartney, EA at nick@patriotresolution.com or nick@irstaxhelp.tax 

Sunday

Obamacare Overview and How it Affects Your Taxes For Those of You Who Filed Extensions

Health Care Law and Taxes – More Time to File
Obamacare-at-a-glance
Most taxpayers will simply check a box on their return to indicate that everyone listed on the front of the return has qualifying health care coverage for the entire year and may not need more time to file. 

However, people who haven’t finished filling out their return can get an automatic six-month extension. The fastest and easiest way to get the extra time is through theFree File link on IRS.gov. In a matter of minutes, anyone, regardless of income, can use this free service to electronically request an automatic tax-filing extension onForm 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return.

If you received your coverage through a Marketplace, you may have received an incorrect Form 1095-A, Health Insurance Marketplace Statement, or your form may have been delayed. If you have not yet filed your income tax return, you should file by April 15 using either the Form 1095-A that you have received or the corrected form, if available. Alternatively, you may file for an extension of time to file by April 15 using Form 4868.  For more information including information about what to do if you already filed your tax return, see our Incorrect Forms 1095-A and the Premium Tax Credit questions and answers.

An extension to file will give you until Oct. 15 to file your taxes. It does not give you more time to pay your taxes. You still must estimate and pay what you owe by April 15 to avoid a late filing penalty. You will be charged interest on any tax that you do not pay on time. You may also owe a penalty if you pay your tax late. In light of some tax filers not receiving their correct Forms 1095-A, in time, the Treasury Department and IRS released guidance providing penalty relief for individuals who are unable to file an accurate return by April 15. Generally, in order to qualify for this relief, taxpayers must file either Form 1040 series or Form 4868 by April 15. A return must be filed by Oct. 15.  More specifics on the relief is  included in Notice 2015-30, Penalty Relief Related To Incorrect Or Delayed Forms 1095-A. 

For more information about the Affordable Care Act, visit IRS.gov/aca.
If you need help with any tax issue please contact me at either nick@patriotresolution.com or nick@irstaxhelp.tax 

Friday

What to Know about Late Filing and Late Paying Penalties

What to Know about Late Filing and Late Paying Penalties

April 15 was the tax day deadline for most people. If you are due a refund there is no penalty if you file a late tax return. But if you owe tax, and you failed to file and pay on time, you will usually owe interest and penalties on the tax you pay late. You should file your tax return and pay the tax as soon as possible to stop them. Here are eight facts that you should know about these penalties.  

1.    Two penalties may apply.  If you file your federal tax return late and owe tax with the return, two penalties may apply. The first is a failure-to-file penalty for late filing. The second is a failure-to-pay penalty for paying late.

2.    Penalty for late filing.  The failure-to-file penalty is normally 5 percent of the unpaid taxes for each month or part of a month that a tax return is late. It will not exceed 25 percent of your unpaid taxes.

3.    Minimum late filing penalty.  If you file your return more than 60 days after the due date or extended due date, the minimum penalty for late filing is the smaller of $135 or 100 percent of the unpaid tax.

4.    Penalty for late payment.  The failure-to-pay penalty is generally 0.5 percent per month of your unpaid taxes. It applies for each month or part of a month your taxes remain unpaid and starts accruing the day after taxes are due. It can build up to as much as 25 percent of your unpaid taxes.

5.    Combined penalty per month.  If the failure-to-file penalty and the failure-to-pay penalty both apply in any month, the maximum amount charged for those two penalties that month is 5 percent. 

6.    File even if you can’t pay.  In most cases, the failure-to-file penalty is 10 times more than the failure-to-pay penalty. So if you can’t pay in full, you should file your tax return and pay as much as you can. Use IRS Direct Pay to pay your tax directly from your checking or savings account. You should try other options to pay, such as getting a loan or paying by debit or credit card. The IRS will work with you to help you resolve your tax debt. Most people can set up an installment agreement with the IRS using the Online Payment Agreement tool on IRS.gov. 

7.    Late payment penalty may not apply.  If you requested an extension of time to file your income tax return by the tax due date and paid at least 90 percent of the taxes you owe, you may not face a failure-to-pay penalty. However, you must pay the remaining balance by the extended due date. You will owe interest on any taxes you pay after the April 15 due date.

8.    No penalty if reasonable cause.  You will not have to pay a failure-to-file or failure-to-pay penalty if you can show reasonable cause for not filing or paying on time. There is also penalty relief available for repayment of excess advance payments of the premium tax credit for 2014.