IRS TAX TIP 2007-06
Taxpayers who pay someone to do their taxes should choose a tax preparer wisely. If you choose to use a paid tax preparer, it is important that you find a qualified tax professional.
Taxpayers are ultimately responsible for everything on their return even when it’s prepared by someone else. The most reputable preparers will request to see your records and receipts and will ask you multiple questions to determine your total income and your qualifications for expenses, deductions, and other items.
By doing so, they have your best interest in mind and are trying to help you avoid penalties, interest, or additional taxes that could result from later IRS contacts.
While most tax return preparers are professional and honest, taxpayers can use the following tips to choose a preparer who will offer the best service for their tax preparation needs.
Ask about service fees. Avoid preparers who claim they can obtain larger refunds than other preparers, or those who guarantee results or base fees on a percentage of the amount of the refund.
Plan Ahead. Choose a preparer you will be able to contact after the return is filed and one that will be responsive to your needs.
Get References. Ask questions and get references from clients who have used the tax professional before. Were they satisfied with the service received?
Research. Check to see if the preparer has any questionable history with the Better Business Bureau, the state’s board of accountancy for CPAs or the state’s bar association for attorneys. Find out if the prepare belongs to a professional organization that requires its members to pursue continuing education and also holds them accountable to a code of ethics.
Determine if the repairer's credentials meet your needs. Are they an Enrolled Agent, Certified Public Accountant or Tax Attorney? Only attorneys, CPAs and enrolled agents can represent taxpayers before the IRS in all matters including audits, collection actions and appeals. Other return preparers may represent taxpayers only in audits regarding a return they signed as a preparer.
Report suspected tax fraud and abusive tax prepares to the IRS on Form 3949-A, Information Referral, or by sending a letter to Internal Revenue Service, Fresno, CA 93888. Download Form 3949-A from IRS.gov or order by mail at 1-800-829-3676.
Links: Form 3949-A Information
MY TWO CENTS WORTH!!
by A.L. Dobbins
Every time I think of preparing tax returns without a computer I get a headache and my blood pressure goes up.
Of course you should take care in choosing a tax preparer, but this advice should be a two-way street -- tax preparers should be careful in accepting a new client. Like those who want you to exceed their deductions beyond what they can prove. I avoid those who march into my office and announce: " I want all my money back" or "I need a refund of $3000.00" before I even see their W-2.
A bad client can ruin your business or cause the IRS to audit all of your clients.
Monday, January 22, 2007
Sunday, January 21, 2007
Quick and Easy Access to IRS Forms and Publications
Free forms from the IRS website:
IRS TAX TIP 2007-13
The Internal Revenue Service has many forms and free publications on a wide variety of topics to help you understand and meet tax filing requirements. If you need IRS materials try one of these easy options:
Internet: You can access forms and publications on the IRS website 24 hours a day, 7 days a week, at IRS.gov.
Phone: Call 800-TAX-FORM (800-829-3676) to order current year forms, instructions and publications and prior year forms and instructions. You should receive your order within 10 days.
Walk-in: During the tax-filing season, many libraries and post offices offer free tax forms to taxpayers. Some libraries also have copies of commonly-requested publications. Braille materials are also available. Many large grocery stores, copy centers, and office supply stores have forms you can photocopy or print from a CD.
Mail: Send your order for tax forms and publications to National Distribution Center, P.O. Box 8903, Bloomington, IL 61702-8903. You should receive your products within 10 days after we receive your order.
Links:
Publication 910, Guide to Free Tax Services (PDF 636K)
Publication 2053A, Quick and Easy Access to IRS Tax Help and Forms (PDF 40K)
Order Publication 1796, Federal Tax Products on CD-ROM, from NTIS — the National Technical Information Service.
IRS TAX TIP 2007-13
The Internal Revenue Service has many forms and free publications on a wide variety of topics to help you understand and meet tax filing requirements. If you need IRS materials try one of these easy options:
Internet: You can access forms and publications on the IRS website 24 hours a day, 7 days a week, at IRS.gov.
Phone: Call 800-TAX-FORM (800-829-3676) to order current year forms, instructions and publications and prior year forms and instructions. You should receive your order within 10 days.
Walk-in: During the tax-filing season, many libraries and post offices offer free tax forms to taxpayers. Some libraries also have copies of commonly-requested publications. Braille materials are also available. Many large grocery stores, copy centers, and office supply stores have forms you can photocopy or print from a CD.
Mail: Send your order for tax forms and publications to National Distribution Center, P.O. Box 8903, Bloomington, IL 61702-8903. You should receive your products within 10 days after we receive your order.
Links:
Publication 910, Guide to Free Tax Services (PDF 636K)
Publication 2053A, Quick and Easy Access to IRS Tax Help and Forms (PDF 40K)
Order Publication 1796, Federal Tax Products on CD-ROM, from NTIS — the National Technical Information Service.
Wednesday, January 17, 2007
Choose the Simplest Federal Tax Form for Your Needs
IRS TAX TIP 2007-04
The three forms used for filing individual federal income tax returns are Form 1040EZ, Form 1040A, and Form 1040.
If you are filing a federal income tax return on paper, use the simplest form you can. Using the simplest allowable form will reduce the chance of an error that may cost you money or delay the processing of your return.
1040EZ You may qualify to use Form 1040EZ, the simplest form, if:
• Your taxable income is below $100,000
• Your filing status is Single or Married Filing Jointly
• You are under age 65
• You are not claiming any dependents
• Your interest income is $1,500 or less
1040A You may be able to use Form 1040A if:
• Your taxable income is below $100,000
• You have capital gain distributions
• You claim certain tax credits
• You claim deductions for IRA contributions or student loan interest
1040 If you cannot use either a 1040EZ or 1040A, you probably need to use Form 1040. You must file form 1040 if:
• Your taxable income is $100,000 or more
• You claim itemized deductions
• You are reporting self-employment income
• You are reporting income from sale of property
• You are claiming the educator expense or higher education tuition and fees
Choosing the correct tax form could mean money in your pocket. Check your tax instructions carefully. Publication 17, Your Federal Income Tax (For Individuals), is a helpful guide to preparing your federal tax forms. It is available on the IRS Web site at IRS.gov or by calling 1-800-TAX-FORM (1-800-829-3676).
The three forms used for filing individual federal income tax returns are Form 1040EZ, Form 1040A, and Form 1040.
If you are filing a federal income tax return on paper, use the simplest form you can. Using the simplest allowable form will reduce the chance of an error that may cost you money or delay the processing of your return.
1040EZ You may qualify to use Form 1040EZ, the simplest form, if:
• Your taxable income is below $100,000
• Your filing status is Single or Married Filing Jointly
• You are under age 65
• You are not claiming any dependents
• Your interest income is $1,500 or less
1040A You may be able to use Form 1040A if:
• Your taxable income is below $100,000
• You have capital gain distributions
• You claim certain tax credits
• You claim deductions for IRA contributions or student loan interest
1040 If you cannot use either a 1040EZ or 1040A, you probably need to use Form 1040. You must file form 1040 if:
• Your taxable income is $100,000 or more
• You claim itemized deductions
• You are reporting self-employment income
• You are reporting income from sale of property
• You are claiming the educator expense or higher education tuition and fees
Choosing the correct tax form could mean money in your pocket. Check your tax instructions carefully. Publication 17, Your Federal Income Tax (For Individuals), is a helpful guide to preparing your federal tax forms. It is available on the IRS Web site at IRS.gov or by calling 1-800-TAX-FORM (1-800-829-3676).
Sunday, January 14, 2007
Grandfather of Tax
by A.L. Dobbins
In 1953 I prepared my first tax return for a client, Theresa’s Style Shop -- a small neighborhood women’s clothing store. Theresa was a good business woman -- though an itty-bitty boutique can in no way compete with a big department store, many ladies still came to her for advice on styles and recommendations. Most of Theresa's clients were middle age or older.
Speaking of "older", at 85 years of age I'm still preparing all kinds of tax returns for small- and medium-sized firms.
Well, this is my second blog post and by now you should have guessed that I'm all about accounting, bookkeeping and taxes. In this field I have no claim to fame but I have been at it sooooooooo long.
So stay with me for a while and you might learn something, like how to save a few dollars on your tax return. Or even how to start your own business.
While I admit I've made a lot of mistakes and have endured a lot of audits with clients, I’ll tell you about all of them to help you hopefully avoid the same destiny.
This is a good time of year to begin a tax blog. At the end of 2006, Congress passed a bill extending some of the tax deductions due to expire at end of tax year 2005.
All well and good, but the IRS has already printed 2006 tax forms and these tax forms made no provisions for listing these deductions that were expected to expire.
Many taxpayers will be frustrated and blame the IRS for causing the confusion. But in this instance congress should shoulder part of the blame. The IRS has issued instruction on how to enter these deductions on your tax return.
I will review these instructions in my next post or you can check the IRS website.
I plan to post two or three times a week...both God willing and in the event Lake Michigan does not rise and revolt...
I'd really like to hear from you! Please send me your comments -- good or bad -- but remember -- don’t be too hard on an old man. Tell me what you'd like to see on this blog, and I'll try to comply.
As soon as I get enough questions, I'll create a Frequently Asked Questions (FAQ) page. Check back often for free tips on taxes and related matters...
In 1953 I prepared my first tax return for a client, Theresa’s Style Shop -- a small neighborhood women’s clothing store. Theresa was a good business woman -- though an itty-bitty boutique can in no way compete with a big department store, many ladies still came to her for advice on styles and recommendations. Most of Theresa's clients were middle age or older.
Speaking of "older", at 85 years of age I'm still preparing all kinds of tax returns for small- and medium-sized firms.
Well, this is my second blog post and by now you should have guessed that I'm all about accounting, bookkeeping and taxes. In this field I have no claim to fame but I have been at it sooooooooo long.
So stay with me for a while and you might learn something, like how to save a few dollars on your tax return. Or even how to start your own business.
While I admit I've made a lot of mistakes and have endured a lot of audits with clients, I’ll tell you about all of them to help you hopefully avoid the same destiny.
This is a good time of year to begin a tax blog. At the end of 2006, Congress passed a bill extending some of the tax deductions due to expire at end of tax year 2005.
All well and good, but the IRS has already printed 2006 tax forms and these tax forms made no provisions for listing these deductions that were expected to expire.
Many taxpayers will be frustrated and blame the IRS for causing the confusion. But in this instance congress should shoulder part of the blame. The IRS has issued instruction on how to enter these deductions on your tax return.
I will review these instructions in my next post or you can check the IRS website.
I plan to post two or three times a week...both God willing and in the event Lake Michigan does not rise and revolt...
I'd really like to hear from you! Please send me your comments -- good or bad -- but remember -- don’t be too hard on an old man. Tell me what you'd like to see on this blog, and I'll try to comply.
As soon as I get enough questions, I'll create a Frequently Asked Questions (FAQ) page. Check back often for free tips on taxes and related matters...
Tuesday, January 9, 2007
Welcome to the site of Metro Business Service
For over 40 years I maintained an office for bookkeeping and tax service in Chicago, but in 2001 I moved my office to my home.
Subscribe to:
Posts (Atom)
Monday, January 22, 2007
Advice for Choosing a Tax Return Preparer
IRS TAX TIP 2007-06
Taxpayers who pay someone to do their taxes should choose a tax preparer wisely. If you choose to use a paid tax preparer, it is important that you find a qualified tax professional.
Taxpayers are ultimately responsible for everything on their return even when it’s prepared by someone else. The most reputable preparers will request to see your records and receipts and will ask you multiple questions to determine your total income and your qualifications for expenses, deductions, and other items.
By doing so, they have your best interest in mind and are trying to help you avoid penalties, interest, or additional taxes that could result from later IRS contacts.
While most tax return preparers are professional and honest, taxpayers can use the following tips to choose a preparer who will offer the best service for their tax preparation needs.
Ask about service fees. Avoid preparers who claim they can obtain larger refunds than other preparers, or those who guarantee results or base fees on a percentage of the amount of the refund.
Plan Ahead. Choose a preparer you will be able to contact after the return is filed and one that will be responsive to your needs.
Get References. Ask questions and get references from clients who have used the tax professional before. Were they satisfied with the service received?
Research. Check to see if the preparer has any questionable history with the Better Business Bureau, the state’s board of accountancy for CPAs or the state’s bar association for attorneys. Find out if the prepare belongs to a professional organization that requires its members to pursue continuing education and also holds them accountable to a code of ethics.
Determine if the repairer's credentials meet your needs. Are they an Enrolled Agent, Certified Public Accountant or Tax Attorney? Only attorneys, CPAs and enrolled agents can represent taxpayers before the IRS in all matters including audits, collection actions and appeals. Other return preparers may represent taxpayers only in audits regarding a return they signed as a preparer.
Report suspected tax fraud and abusive tax prepares to the IRS on Form 3949-A, Information Referral, or by sending a letter to Internal Revenue Service, Fresno, CA 93888. Download Form 3949-A from IRS.gov or order by mail at 1-800-829-3676.
Links: Form 3949-A Information
MY TWO CENTS WORTH!!
by A.L. Dobbins
Every time I think of preparing tax returns without a computer I get a headache and my blood pressure goes up.
Of course you should take care in choosing a tax preparer, but this advice should be a two-way street -- tax preparers should be careful in accepting a new client. Like those who want you to exceed their deductions beyond what they can prove. I avoid those who march into my office and announce: " I want all my money back" or "I need a refund of $3000.00" before I even see their W-2.
A bad client can ruin your business or cause the IRS to audit all of your clients.
Taxpayers who pay someone to do their taxes should choose a tax preparer wisely. If you choose to use a paid tax preparer, it is important that you find a qualified tax professional.
Taxpayers are ultimately responsible for everything on their return even when it’s prepared by someone else. The most reputable preparers will request to see your records and receipts and will ask you multiple questions to determine your total income and your qualifications for expenses, deductions, and other items.
By doing so, they have your best interest in mind and are trying to help you avoid penalties, interest, or additional taxes that could result from later IRS contacts.
While most tax return preparers are professional and honest, taxpayers can use the following tips to choose a preparer who will offer the best service for their tax preparation needs.
Ask about service fees. Avoid preparers who claim they can obtain larger refunds than other preparers, or those who guarantee results or base fees on a percentage of the amount of the refund.
Plan Ahead. Choose a preparer you will be able to contact after the return is filed and one that will be responsive to your needs.
Get References. Ask questions and get references from clients who have used the tax professional before. Were they satisfied with the service received?
Research. Check to see if the preparer has any questionable history with the Better Business Bureau, the state’s board of accountancy for CPAs or the state’s bar association for attorneys. Find out if the prepare belongs to a professional organization that requires its members to pursue continuing education and also holds them accountable to a code of ethics.
Determine if the repairer's credentials meet your needs. Are they an Enrolled Agent, Certified Public Accountant or Tax Attorney? Only attorneys, CPAs and enrolled agents can represent taxpayers before the IRS in all matters including audits, collection actions and appeals. Other return preparers may represent taxpayers only in audits regarding a return they signed as a preparer.
Report suspected tax fraud and abusive tax prepares to the IRS on Form 3949-A, Information Referral, or by sending a letter to Internal Revenue Service, Fresno, CA 93888. Download Form 3949-A from IRS.gov or order by mail at 1-800-829-3676.
Links: Form 3949-A Information
MY TWO CENTS WORTH!!
by A.L. Dobbins
Every time I think of preparing tax returns without a computer I get a headache and my blood pressure goes up.
Of course you should take care in choosing a tax preparer, but this advice should be a two-way street -- tax preparers should be careful in accepting a new client. Like those who want you to exceed their deductions beyond what they can prove. I avoid those who march into my office and announce: " I want all my money back" or "I need a refund of $3000.00" before I even see their W-2.
A bad client can ruin your business or cause the IRS to audit all of your clients.
Sunday, January 21, 2007
Quick and Easy Access to IRS Forms and Publications
Free forms from the IRS website:
IRS TAX TIP 2007-13
The Internal Revenue Service has many forms and free publications on a wide variety of topics to help you understand and meet tax filing requirements. If you need IRS materials try one of these easy options:
Internet: You can access forms and publications on the IRS website 24 hours a day, 7 days a week, at IRS.gov.
Phone: Call 800-TAX-FORM (800-829-3676) to order current year forms, instructions and publications and prior year forms and instructions. You should receive your order within 10 days.
Walk-in: During the tax-filing season, many libraries and post offices offer free tax forms to taxpayers. Some libraries also have copies of commonly-requested publications. Braille materials are also available. Many large grocery stores, copy centers, and office supply stores have forms you can photocopy or print from a CD.
Mail: Send your order for tax forms and publications to National Distribution Center, P.O. Box 8903, Bloomington, IL 61702-8903. You should receive your products within 10 days after we receive your order.
Links:
Publication 910, Guide to Free Tax Services (PDF 636K)
Publication 2053A, Quick and Easy Access to IRS Tax Help and Forms (PDF 40K)
Order Publication 1796, Federal Tax Products on CD-ROM, from NTIS — the National Technical Information Service.
IRS TAX TIP 2007-13
The Internal Revenue Service has many forms and free publications on a wide variety of topics to help you understand and meet tax filing requirements. If you need IRS materials try one of these easy options:
Internet: You can access forms and publications on the IRS website 24 hours a day, 7 days a week, at IRS.gov.
Phone: Call 800-TAX-FORM (800-829-3676) to order current year forms, instructions and publications and prior year forms and instructions. You should receive your order within 10 days.
Walk-in: During the tax-filing season, many libraries and post offices offer free tax forms to taxpayers. Some libraries also have copies of commonly-requested publications. Braille materials are also available. Many large grocery stores, copy centers, and office supply stores have forms you can photocopy or print from a CD.
Mail: Send your order for tax forms and publications to National Distribution Center, P.O. Box 8903, Bloomington, IL 61702-8903. You should receive your products within 10 days after we receive your order.
Links:
Publication 910, Guide to Free Tax Services (PDF 636K)
Publication 2053A, Quick and Easy Access to IRS Tax Help and Forms (PDF 40K)
Order Publication 1796, Federal Tax Products on CD-ROM, from NTIS — the National Technical Information Service.
Wednesday, January 17, 2007
Choose the Simplest Federal Tax Form for Your Needs
IRS TAX TIP 2007-04
The three forms used for filing individual federal income tax returns are Form 1040EZ, Form 1040A, and Form 1040.
If you are filing a federal income tax return on paper, use the simplest form you can. Using the simplest allowable form will reduce the chance of an error that may cost you money or delay the processing of your return.
1040EZ You may qualify to use Form 1040EZ, the simplest form, if:
• Your taxable income is below $100,000
• Your filing status is Single or Married Filing Jointly
• You are under age 65
• You are not claiming any dependents
• Your interest income is $1,500 or less
1040A You may be able to use Form 1040A if:
• Your taxable income is below $100,000
• You have capital gain distributions
• You claim certain tax credits
• You claim deductions for IRA contributions or student loan interest
1040 If you cannot use either a 1040EZ or 1040A, you probably need to use Form 1040. You must file form 1040 if:
• Your taxable income is $100,000 or more
• You claim itemized deductions
• You are reporting self-employment income
• You are reporting income from sale of property
• You are claiming the educator expense or higher education tuition and fees
Choosing the correct tax form could mean money in your pocket. Check your tax instructions carefully. Publication 17, Your Federal Income Tax (For Individuals), is a helpful guide to preparing your federal tax forms. It is available on the IRS Web site at IRS.gov or by calling 1-800-TAX-FORM (1-800-829-3676).
The three forms used for filing individual federal income tax returns are Form 1040EZ, Form 1040A, and Form 1040.
If you are filing a federal income tax return on paper, use the simplest form you can. Using the simplest allowable form will reduce the chance of an error that may cost you money or delay the processing of your return.
1040EZ You may qualify to use Form 1040EZ, the simplest form, if:
• Your taxable income is below $100,000
• Your filing status is Single or Married Filing Jointly
• You are under age 65
• You are not claiming any dependents
• Your interest income is $1,500 or less
1040A You may be able to use Form 1040A if:
• Your taxable income is below $100,000
• You have capital gain distributions
• You claim certain tax credits
• You claim deductions for IRA contributions or student loan interest
1040 If you cannot use either a 1040EZ or 1040A, you probably need to use Form 1040. You must file form 1040 if:
• Your taxable income is $100,000 or more
• You claim itemized deductions
• You are reporting self-employment income
• You are reporting income from sale of property
• You are claiming the educator expense or higher education tuition and fees
Choosing the correct tax form could mean money in your pocket. Check your tax instructions carefully. Publication 17, Your Federal Income Tax (For Individuals), is a helpful guide to preparing your federal tax forms. It is available on the IRS Web site at IRS.gov or by calling 1-800-TAX-FORM (1-800-829-3676).
Sunday, January 14, 2007
Grandfather of Tax
by A.L. Dobbins
In 1953 I prepared my first tax return for a client, Theresa’s Style Shop -- a small neighborhood women’s clothing store. Theresa was a good business woman -- though an itty-bitty boutique can in no way compete with a big department store, many ladies still came to her for advice on styles and recommendations. Most of Theresa's clients were middle age or older.
Speaking of "older", at 85 years of age I'm still preparing all kinds of tax returns for small- and medium-sized firms.
Well, this is my second blog post and by now you should have guessed that I'm all about accounting, bookkeeping and taxes. In this field I have no claim to fame but I have been at it sooooooooo long.
So stay with me for a while and you might learn something, like how to save a few dollars on your tax return. Or even how to start your own business.
While I admit I've made a lot of mistakes and have endured a lot of audits with clients, I’ll tell you about all of them to help you hopefully avoid the same destiny.
This is a good time of year to begin a tax blog. At the end of 2006, Congress passed a bill extending some of the tax deductions due to expire at end of tax year 2005.
All well and good, but the IRS has already printed 2006 tax forms and these tax forms made no provisions for listing these deductions that were expected to expire.
Many taxpayers will be frustrated and blame the IRS for causing the confusion. But in this instance congress should shoulder part of the blame. The IRS has issued instruction on how to enter these deductions on your tax return.
I will review these instructions in my next post or you can check the IRS website.
I plan to post two or three times a week...both God willing and in the event Lake Michigan does not rise and revolt...
I'd really like to hear from you! Please send me your comments -- good or bad -- but remember -- don’t be too hard on an old man. Tell me what you'd like to see on this blog, and I'll try to comply.
As soon as I get enough questions, I'll create a Frequently Asked Questions (FAQ) page. Check back often for free tips on taxes and related matters...
In 1953 I prepared my first tax return for a client, Theresa’s Style Shop -- a small neighborhood women’s clothing store. Theresa was a good business woman -- though an itty-bitty boutique can in no way compete with a big department store, many ladies still came to her for advice on styles and recommendations. Most of Theresa's clients were middle age or older.
Speaking of "older", at 85 years of age I'm still preparing all kinds of tax returns for small- and medium-sized firms.
Well, this is my second blog post and by now you should have guessed that I'm all about accounting, bookkeeping and taxes. In this field I have no claim to fame but I have been at it sooooooooo long.
So stay with me for a while and you might learn something, like how to save a few dollars on your tax return. Or even how to start your own business.
While I admit I've made a lot of mistakes and have endured a lot of audits with clients, I’ll tell you about all of them to help you hopefully avoid the same destiny.
This is a good time of year to begin a tax blog. At the end of 2006, Congress passed a bill extending some of the tax deductions due to expire at end of tax year 2005.
All well and good, but the IRS has already printed 2006 tax forms and these tax forms made no provisions for listing these deductions that were expected to expire.
Many taxpayers will be frustrated and blame the IRS for causing the confusion. But in this instance congress should shoulder part of the blame. The IRS has issued instruction on how to enter these deductions on your tax return.
I will review these instructions in my next post or you can check the IRS website.
I plan to post two or three times a week...both God willing and in the event Lake Michigan does not rise and revolt...
I'd really like to hear from you! Please send me your comments -- good or bad -- but remember -- don’t be too hard on an old man. Tell me what you'd like to see on this blog, and I'll try to comply.
As soon as I get enough questions, I'll create a Frequently Asked Questions (FAQ) page. Check back often for free tips on taxes and related matters...
Tuesday, January 9, 2007
Welcome to the site of Metro Business Service
For over 40 years I maintained an office for bookkeeping and tax service in Chicago, but in 2001 I moved my office to my home.
Subscribe to:
Posts (Atom)