At JG Tax Group, we have multiple years of experience and guarantee that we will have wage garnishments or levies released within 3-4 business days. Our company specializes in understanding exactly how the IRS works and what documentation is needed.
IRS wage garnishments / IRS Levies can be stopped in 3-4 business days if done properly. One has to realize that the last resort the IRS takes involves a wage garnishment / levy. This is one of the most lethal weapons available to the IRS. There are several ways to have the levy or garnishment released. But the first thing that has to be done is to verify that the taxpayer is in compliance with the IRS. Being in compliance means that all outstanding tax returns for every year has been filed with the IRS. Those tax returns include 1040's, 1099's, quarterly estimated tax payments, 941's or 940's depending on the particular situation of the taxpayer. The first thing to do in order to determine if you are in compliance is to immediately contact the IRS upon receipt notice of an IRS garnishment or levy. But you need to be very cautious when contacting the IRS in regards to this. Before the IRS will give you any information of your compliance, they will immediately begin to interrogate the taxpayer, trying to find out what bank accounts you may have, what other incomes you have and the assets you own. This is all in an effort to begin to levy, garnish or seize any assets the taxpayer may have. This is one of the main reasons why a tax professional should contact the IRS on the taxpayers' behalf. A tax professional does not have to release that personal information to the IRS. The representatives' goal at this point is to only determine if the taxpayer is in compliance with the IRS. Everything is determined by the IRS computers and the automated collections division. The only way to be brought into compliance is by filing all years that were not filed. Depending on what the computer states, you may have to file 7 years worth of IRS tax returns or they may even go back to 15 years worth of taxes. This is why the IRS must be contacted immediately to figure out what needs to be done to bring the taxpayer back into compliance. If there are compliance issues, the IRS will inform the tax professional or the taxpayer what taxes must be filed. It is important to prepare these taxes but not to mail them in. They need to be faxed to the IRS so they are acknowledged in the IRS computers immediately and the processing of these returns can start within hours, not weeks or months. The reason for this is that the IRS will not release the wage garnishment until the tax returns are at least submitted for processing to the IRS. Once it is determined that a taxpayer is in compliance, the next thing the IRS is looking for is a resolution to the outstanding taxes owed to the IRS. This may be in the form of a payment plan, a partial payment plan, having the taxpayer declared non-collectible or an offer in compromise.
In most cases, the IRS will request your financial information through certain IRS forms in order to determine how much, if anything, you can afford to pay towards your total tax liability. If your file is being handled in the automated collections division a 433F form (a simplified Collection Information Statement) has to be prepared, along with supporting documentations. If the file is with a field agent, a 433A form (a detailed Collection Information Statement) has to be prepared and filed with the field agent, also along with the supporting documentation. Because the IRS knows that in 90% of the cases that the wage garnishment or IRS levy is a hardship on the taxpayer, the proper procedure is that after submitting these financials, the IRS should release the wage garnishment within hours. Unfortunately, taxpayers try to perform and present this procedure by themselves. But the fact is that without a tax professional involved, the IRS simply drags their feet and prolongs the situation because it is the IRS's position to take this drastic action due to the fact that the taxpayer did not comply with any of their prior requests. The tax professional you chose to represent you should force the IRS to comply with the rules and regulations to have these matters expedited within hours and not weeks or months. There is a second method of having a wage garnishment or levy released. This procedure consists of proving to the IRS that this wage garnishment is a true and immediate hardship to the taxpayer. A hardship to the taxpayer is that housing, transportation or food expenses are at an immediate risk; i.e. if your electricity is about to be disconnected, and you can provide a statement from your service provider showing that your electricity is being shut off due to non payment or if you are able to provide an eviction notice or foreclosure notice due to non payment the same method applies. Asking the IRS to release the wage garnishment based on these facts is a very difficult task because the IRS is receiving nothing in return providing a solution to the outstanding taxes. This is an up-hill fight with the IRS but the IRS is supposed to follow procedures and in most situations the taxpayer is unable to resolve this issue without a tax professional.
Wednesday, July 1, 2009
How do I know I am choosing the right Tax Resolution Firm for my IRS tax problems?
Unfortunately, there are a lot of tax resolution firms out there that will simply take your money and run. There are firms who call themselves the nation's largest tax representation firm but have been sued by many states. There are firms that call themselves the largest tax resolution law firm but have also been sued. So the size and claims of the firm are no guarantee that you will be represented well by that company. The easiest way to determine if the firm you are choosing is a good one is to simply look them up in search engines such as Google or through the Better Business Bureau. Look for complaints for the company you are looking up, and if there are none, then you know you are on your way to choosing the right tax resolution firm for you. For your convenience we have included a link to the BBB. Tax Resolution Firms Better Business Bureau Rating JG TAX GROUP takes great pride in our A RATING with the Better Business Bureau. Our A RATING proves that we take you situation as seriously as you do! You should not take advice from any firm unless they can prove that they will treat you in an honest and ethical manner. The way to evaluate any Tax Resolution Firm is to check their rating with the Better Business Bureau. We have listed just a sample of Resolution Firms and their Better Business Bureau Rating.
Company Name Better Business Bureau Rating JG TAX GROUP
411 TAX RELIEF
ALLIED TAX SOLUTIONS
AMERICAN TAX RELIEF
CLEAR CREEK CONSULTING
EFFECTUR
FREEDOM DEBT RELIEF
FREEDOM TAX RELIEF
JK HARRIS
NATIONAL TAX SOLUTIONS
Nationwide Tax Relief
INNOVATIVE TAX RELIEF
RONI DEUTCH
TAX CARE PROFESSIONALS
TAXMASTERS
TAX RESOLUTION SERVICES
TAX INCORPORATED
TITAN TAX RELIEF
URGENT TAX CARE A
F
F
F
C
C+ (Greensboro, NC)
F (San Mateo, CA)
F (San Mateo, CA)
F (N.Charleston, SC)
UNSATISFACTORY
F ( Brentwood,CA)
F
B- (Tolleson, AZ)
F
UNSATISFACTORY (Houston, TX)
B+ (Encino, CA)
F
C (Carlsbad, CA)
C
What options are available to me to solve my tax problems?
Among several services we offer are: Installment Agreement - A monthly payment plan set up to pay back the taxpayer's tax liability. The IRS has guidelines as to what amount they will accept and the time frame they will accept it in. A financial profile is required from the taxpayer before the tax resolution firm can negotiate an installment agreement. Offer in Compromise / Tax Relief - An offer to the IRS to lower the total tax liability owed by the taxpayer due to financial constraints. This is a very popular solution advertised by most firms, but not always effective. More below. Currently Not Collectible - When the taxpayer cannot afford to pay the IRS monies due to a lack of assets and low income or no income (recently laid off due to current economy) then the IRS will deem the taxpayer Currently Not Collectible and agree that their tax liability will be waive for the time being. Penalty Abatement - The IRS asseses penalties and interest on tax liabilities so over time taxes due years ago can increase from hundreds to thousands of dollars. The IRS will sometimes lower or eliminate these fees with a well worded request. Bank Levies/Wage Garnishment Release - The IRS will collect their monies due by any means necessary. They may take all your assets with a levy or garnish up to 70% or your wages. A tax resolution firm can negotiate with the IRS to have these released in as little as 4 business days. Audit Representation - If your are currently being audited and you don't know why then it is very important to be represented by tax professionals who can get to the bottom of the problems and fix them. We can even have your past audit reopened if you feel you did not get a fair shake. I have unfiled taxes from previous years but no longer have my records from those years. Can you help me? JG Tax Group can prepare your past unfiled tax returns by requesting your IRS wage transcripts and completing a tax questionnaire. Is there anything I need to do before I can solve my tax problems? Before the IRS will accept any negotiations to solve your tax liability you will need to be in compliance with any unfiled tax returns. Any unfiled taxes up to ten years ago may be required to be prepared and filed with the IRS. The tax resolution firm I contacted has told me that they will solve my problems with an Offer in Compromise. Is this true? Caution! Do not be misled: Many people do not qualify. The Offer in Compromise (OIC) process is long and difficult, and the Internal Revenue Service rejects the great majority of the offers it receives.
Annually, the IRS accepts approximately 14% of the Offers in Compromise it receives. That's down from over 17% in 1997 through 2001. Why? Former IRS Commissioner Mark Everson, who served from 2002 through 2007, disliked OIC acceptances and did much to discourage them. By doing so, he also discouraged OIC submissions by ethical tax professionals, who choose not to accept a fee for submitting an OIC which the IRS very probably will reject. As a result, there has been a big drop in the number of OICs received annually by the IRS.
Only taxpayers with a certain financial profile qualify for the program. Simply put, if there are enough assets and income available to the taxpayer, he or she does not quailify for an OIC. But unscrupulous tax resolution firms will not disclose this information to the taxpayer. They will take the taxpayer's money, fill out an application and send it in to the IRS, regardless of whether the taxpayer has a legitimate chance of success. The tax firm will consider the "job" completed with the submission of the OIC and hold no further obligation to the customer. A tax resolution firm with your best interest in mind will let you know upfront that there are several options avaialble to you, including the OIC, but also where you fit in, especially after a comprehensive financial profile. With over 120 years of combined insider IRS experience, JG Tax Group will let you know upfront whether you do or do not qualify for an OIC and what your other options may be. The IRS is sending me letters and calling me. What should I do? The IRS is the world's largest collection agency. They will ask the taxpayer for information on their employment, bank accounts, properties owned, automobiles and any other assets they may have for the purpose of knowing what they can levy or garnish. They will note down all conversations with the taxpayers for future use by other agents. The IRS can seize just about any assets needed to pay unpaid taxes. One of the main reasons to hire a tax resolution firm is for the experience they bring in dealing with the IRS. When you hire a tax resolution firm they will take care of all communications with the IRS so you do not have to deal with the harassing phone calls and upsetting letters. The firm will also compile a comprehensive financial profile for the taxpayer using both information from the taxpayer as well as all records that the IRS has on the taxypayer. The professionals at JG Tax Group know how the IRS thinks and what they are looking for and therefore any negotiations with the IRS will be done from a place of power and not fear. I have a tax liability from years past when I was single but am now married. Does my new spouse share in my tax liability? If you have been assesed taxes due while you were single or married to another person, your new spouse does not share in your tax liability. But the IRS may still request your new spouse's financial information because they need to know what your household can afford to pay the IRS. But the truth is that only the taxpayer who filed those tax years is liable for them. A tax resolution firm will make sure that your spouse is not involved in your tax solution and that the IRS will only deal with what you can afford to pay. My financial institution received a bank levy. What can I do? When a levy is issued, the government actually takes money out of your bank account or collects money owed to you or your business. They will keep sending a notice to your financial institution to wipe out your account periodically. JG Tax Group will remove the bank levy within 4 business days. I have a wage garnishment in effect. Can you help me? JG Tax Group can release wage garnishments within 4 business days or stop them temporarily and give you the time you need to get in compliance with the IRS. Read more about one of recent success stories. Can the IRS take my house? Property seizures are all but non-existent due to the IRS Restructuring and Reform Act of 1998, but the IRS will still threaten to take your home, cars and retirement accounts in order to scare you into complying with their demands. Representation from JG Tax Group protects you from these threatening tacticts. Can I go to jail for owing back taxes? Debtor's prisons were elimiated long ago. Nowadays, people usually only go to jail for tax evasion, or the willful exercise of not paying taxes on money earned.
For a free confidential analysis, please call us today at
1-800-536-3077
Company Name Better Business Bureau Rating JG TAX GROUP
411 TAX RELIEF
ALLIED TAX SOLUTIONS
AMERICAN TAX RELIEF
CLEAR CREEK CONSULTING
EFFECTUR
FREEDOM DEBT RELIEF
FREEDOM TAX RELIEF
JK HARRIS
NATIONAL TAX SOLUTIONS
Nationwide Tax Relief
INNOVATIVE TAX RELIEF
RONI DEUTCH
TAX CARE PROFESSIONALS
TAXMASTERS
TAX RESOLUTION SERVICES
TAX INCORPORATED
TITAN TAX RELIEF
URGENT TAX CARE A
F
F
F
C
C+ (Greensboro, NC)
F (San Mateo, CA)
F (San Mateo, CA)
F (N.Charleston, SC)
UNSATISFACTORY
F ( Brentwood,CA)
F
B- (Tolleson, AZ)
F
UNSATISFACTORY (Houston, TX)
B+ (Encino, CA)
F
C (Carlsbad, CA)
C
What options are available to me to solve my tax problems?
Among several services we offer are: Installment Agreement - A monthly payment plan set up to pay back the taxpayer's tax liability. The IRS has guidelines as to what amount they will accept and the time frame they will accept it in. A financial profile is required from the taxpayer before the tax resolution firm can negotiate an installment agreement. Offer in Compromise / Tax Relief - An offer to the IRS to lower the total tax liability owed by the taxpayer due to financial constraints. This is a very popular solution advertised by most firms, but not always effective. More below. Currently Not Collectible - When the taxpayer cannot afford to pay the IRS monies due to a lack of assets and low income or no income (recently laid off due to current economy) then the IRS will deem the taxpayer Currently Not Collectible and agree that their tax liability will be waive for the time being. Penalty Abatement - The IRS asseses penalties and interest on tax liabilities so over time taxes due years ago can increase from hundreds to thousands of dollars. The IRS will sometimes lower or eliminate these fees with a well worded request. Bank Levies/Wage Garnishment Release - The IRS will collect their monies due by any means necessary. They may take all your assets with a levy or garnish up to 70% or your wages. A tax resolution firm can negotiate with the IRS to have these released in as little as 4 business days. Audit Representation - If your are currently being audited and you don't know why then it is very important to be represented by tax professionals who can get to the bottom of the problems and fix them. We can even have your past audit reopened if you feel you did not get a fair shake. I have unfiled taxes from previous years but no longer have my records from those years. Can you help me? JG Tax Group can prepare your past unfiled tax returns by requesting your IRS wage transcripts and completing a tax questionnaire. Is there anything I need to do before I can solve my tax problems? Before the IRS will accept any negotiations to solve your tax liability you will need to be in compliance with any unfiled tax returns. Any unfiled taxes up to ten years ago may be required to be prepared and filed with the IRS. The tax resolution firm I contacted has told me that they will solve my problems with an Offer in Compromise. Is this true? Caution! Do not be misled: Many people do not qualify. The Offer in Compromise (OIC) process is long and difficult, and the Internal Revenue Service rejects the great majority of the offers it receives.
Annually, the IRS accepts approximately 14% of the Offers in Compromise it receives. That's down from over 17% in 1997 through 2001. Why? Former IRS Commissioner Mark Everson, who served from 2002 through 2007, disliked OIC acceptances and did much to discourage them. By doing so, he also discouraged OIC submissions by ethical tax professionals, who choose not to accept a fee for submitting an OIC which the IRS very probably will reject. As a result, there has been a big drop in the number of OICs received annually by the IRS.
Only taxpayers with a certain financial profile qualify for the program. Simply put, if there are enough assets and income available to the taxpayer, he or she does not quailify for an OIC. But unscrupulous tax resolution firms will not disclose this information to the taxpayer. They will take the taxpayer's money, fill out an application and send it in to the IRS, regardless of whether the taxpayer has a legitimate chance of success. The tax firm will consider the "job" completed with the submission of the OIC and hold no further obligation to the customer. A tax resolution firm with your best interest in mind will let you know upfront that there are several options avaialble to you, including the OIC, but also where you fit in, especially after a comprehensive financial profile. With over 120 years of combined insider IRS experience, JG Tax Group will let you know upfront whether you do or do not qualify for an OIC and what your other options may be. The IRS is sending me letters and calling me. What should I do? The IRS is the world's largest collection agency. They will ask the taxpayer for information on their employment, bank accounts, properties owned, automobiles and any other assets they may have for the purpose of knowing what they can levy or garnish. They will note down all conversations with the taxpayers for future use by other agents. The IRS can seize just about any assets needed to pay unpaid taxes. One of the main reasons to hire a tax resolution firm is for the experience they bring in dealing with the IRS. When you hire a tax resolution firm they will take care of all communications with the IRS so you do not have to deal with the harassing phone calls and upsetting letters. The firm will also compile a comprehensive financial profile for the taxpayer using both information from the taxpayer as well as all records that the IRS has on the taxypayer. The professionals at JG Tax Group know how the IRS thinks and what they are looking for and therefore any negotiations with the IRS will be done from a place of power and not fear. I have a tax liability from years past when I was single but am now married. Does my new spouse share in my tax liability? If you have been assesed taxes due while you were single or married to another person, your new spouse does not share in your tax liability. But the IRS may still request your new spouse's financial information because they need to know what your household can afford to pay the IRS. But the truth is that only the taxpayer who filed those tax years is liable for them. A tax resolution firm will make sure that your spouse is not involved in your tax solution and that the IRS will only deal with what you can afford to pay. My financial institution received a bank levy. What can I do? When a levy is issued, the government actually takes money out of your bank account or collects money owed to you or your business. They will keep sending a notice to your financial institution to wipe out your account periodically. JG Tax Group will remove the bank levy within 4 business days. I have a wage garnishment in effect. Can you help me? JG Tax Group can release wage garnishments within 4 business days or stop them temporarily and give you the time you need to get in compliance with the IRS. Read more about one of recent success stories. Can the IRS take my house? Property seizures are all but non-existent due to the IRS Restructuring and Reform Act of 1998, but the IRS will still threaten to take your home, cars and retirement accounts in order to scare you into complying with their demands. Representation from JG Tax Group protects you from these threatening tacticts. Can I go to jail for owing back taxes? Debtor's prisons were elimiated long ago. Nowadays, people usually only go to jail for tax evasion, or the willful exercise of not paying taxes on money earned.
For a free confidential analysis, please call us today at
1-800-536-3077
Stop The IRS Aggressive Collections
Appealing a collection action. There are two main forms of appealing IRS collections. This first is a CDP appeal and the second is a CAP appeal. A CDP appeal must be filed within 30 days of a final notice of intent to levy. This allows a senior technical advisor within the IRS to review the case. This means it is being taken from the collection division of the IRS who are far more aggressive concerning these matters. In most instances, you will receive much better results filing a CDP appeal. If perhaps you have failed to file in a timely manner, you always have the right to file a CAP appeal which is very rarely used in the IRS. Most IRS agents do not know what a CAP appeal actually is. Our company applies this tactic to the IRS a great deal. If the IRS has not actually filed a wage garnishment or levy against the taxpayer, we immediately file a CDP appeal. This takes the case out of the hands of the collection division immediately and puts it into a technical advisor hands. This is very important because a technical advisor is somebody who has been with the IRS for multiple years and will approach things in a more professional manner and truly follow the guidelines required. A CDP appeal also puts the breaks on an agent filing wage garnishments and levies against an individuals social security income and payroll monies who are unable to provide for themselves. The crucial part of filing any of these appeals is that the taxpayer must be in full compliance with the IRS. Meaning that all tax returns are filed. Any tax returns that are not filed must be filed. (Read More)
Tuesday, June 23, 2009
Promotional Gift Essentials
Buying a enterprise selling gift can become a frightening task. Giving it is poorer since you have the aim to gain enterprise binds, bind with purchasers, and move ahead your note of giving thanks. Knowing the following enterprise selling gift buying rudimentary constituents will enhance your possibilities of attaining these goals.
Know the enterprise belief - Some enterprises prohibit gift giving; some have dollar bounds on the gift item; while other don't have bounds at all. Check on this precise minutia in rank that you will appreciate how much you have to spend on a precise portion to bypass your gift being dispatched back to you.
First effect lasts - Packaging is important. This will give the first effect to the receiver. A good binding will move ahead a note to the recipient that he or she is noteworthy to you. A poor binding on the other hand will notify the recipient that the portion inside is not that noteworthy, or poorer, the recipient may trust that he is not important. So in spite of of the cost of the gift inside the collection, it is inescapable that a enterprise selling gift is crowded appropriately.
Handwritten cards is much treasured - Yes, it is more simple to pay for a Hallmark enterprise small discern and put your signature on it simultaneously with your gift, but it will leave from a more lasting effect if you favour having your note handwritten. This would signify that you in someone made the massage to the separate someone and not use a ready-made one.
Deliver the gift in someone - If your gift does not need a crane or more than one separate someone to pass on, make it a subject to in someone consign the gift to the recommended party. This will conceive a better and lasting effect of you one time he opened the gift.
Know the heritage dissimilarities - For Germans, red roses signify doting intentions. For Chinese, a white gift covering symbolizes death. For Japanese, a gift in gatherings of 4 means death. These are some of the heritage dissimilarities or you can state symbolisms that you need to discern when studying giving a enterprise selling gift to celebrity of another culture. You may have a clean aim but it is looked after to follow and esteem who they are and what they accept as factual in.
Know the recipient's likes - Knowing what kind of enterprise selling gift to pay for is very calling for and is often very risky. Sometimes, if you have no fundamental thought on what to give, you often end up giving the incorrect kind of gift. This will wreck you as well as your enterprise image. To lessen the adversity and diminish the risk, appreciate the separate someone who will receive the gift what his likes, his welfare, interest, etc. What is the best way to do it? Make a call and inquire him such information.
Go for worth - The enterprise selling gift often reflects to your company's image. It is hard to build up position and good likeness, do not wreck it by giving certain thing of a lessened quality. Choose a enterprise selling gift that is of high worth but does not decimate your budget.
Check the IRS deductions - The IRS Publication 463 is certain thing you should appreciate of since enterprise presents in America are levy deductible (as much as $25/person in a levy year). This omits vessels the gift and packaging. Other main purpose may appeal to other varieties of enterprise structure.
Know the enterprise belief - Some enterprises prohibit gift giving; some have dollar bounds on the gift item; while other don't have bounds at all. Check on this precise minutia in rank that you will appreciate how much you have to spend on a precise portion to bypass your gift being dispatched back to you.
First effect lasts - Packaging is important. This will give the first effect to the receiver. A good binding will move ahead a note to the recipient that he or she is noteworthy to you. A poor binding on the other hand will notify the recipient that the portion inside is not that noteworthy, or poorer, the recipient may trust that he is not important. So in spite of of the cost of the gift inside the collection, it is inescapable that a enterprise selling gift is crowded appropriately.
Handwritten cards is much treasured - Yes, it is more simple to pay for a Hallmark enterprise small discern and put your signature on it simultaneously with your gift, but it will leave from a more lasting effect if you favour having your note handwritten. This would signify that you in someone made the massage to the separate someone and not use a ready-made one.
Deliver the gift in someone - If your gift does not need a crane or more than one separate someone to pass on, make it a subject to in someone consign the gift to the recommended party. This will conceive a better and lasting effect of you one time he opened the gift.
Know the heritage dissimilarities - For Germans, red roses signify doting intentions. For Chinese, a white gift covering symbolizes death. For Japanese, a gift in gatherings of 4 means death. These are some of the heritage dissimilarities or you can state symbolisms that you need to discern when studying giving a enterprise selling gift to celebrity of another culture. You may have a clean aim but it is looked after to follow and esteem who they are and what they accept as factual in.
Know the recipient's likes - Knowing what kind of enterprise selling gift to pay for is very calling for and is often very risky. Sometimes, if you have no fundamental thought on what to give, you often end up giving the incorrect kind of gift. This will wreck you as well as your enterprise image. To lessen the adversity and diminish the risk, appreciate the separate someone who will receive the gift what his likes, his welfare, interest, etc. What is the best way to do it? Make a call and inquire him such information.
Go for worth - The enterprise selling gift often reflects to your company's image. It is hard to build up position and good likeness, do not wreck it by giving certain thing of a lessened quality. Choose a enterprise selling gift that is of high worth but does not decimate your budget.
Check the IRS deductions - The IRS Publication 463 is certain thing you should appreciate of since enterprise presents in America are levy deductible (as much as $25/person in a levy year). This omits vessels the gift and packaging. Other main purpose may appeal to other varieties of enterprise structure.
Federal Income Tax Return
The federal government of the United States levies the federal income tax and it is levied on every taxable earner of the United States. This includes the resident aliens and every earning individual who Adjusted Gross Income is above a stipulated level. The Internal Revenue Service (IRS) handles the federal income tax levy and administration.
The taxable income of the person is determined by a two-tiered system. First the person's actual income is determined and this is considered as the base of the calculation. Upon this net income, certain deductions are made to obtain the gross total income. Then the gross total income is adjusted with the itemized deductions list or the standard deductions list, whichever is deemed applicable to the individual in question. The deductions are what finally give the adjusted gross income or AGI. Any income tax applicable is then calculated on the basis of a person's AGI.
The IRS follows the internal revenue code to determine taxable amounts and each year the taxable amount is changed and adjusted based on the inflation. There is a minimum AGI amount, below which a person will not have to pay tax. However, every earning member is expected to file a tax return.
As per the Internal Revenue Code, the returns can actually be divided in to tax returns and information returns. But the usual term used for both is 'tax returns' and it is often used to talk about both types of returns. Every person is expected to declare the tax liable assets that the person holds. The tax will thus be based on that. However, there are provisions under which a person can gain tax credits during filing tax returns. These credits are actually better than the deductions because tax credits are calculated after the tax is charged and not before. Hence, a deduction would mean a saving equivalent to the taxable percentage of the amount. Whereas, a tax credit means that the entire amount of the tax credit is saved. So at 17% tax, a $100 deduction saves you $17 but a $100 credit saves you the full $100.
Filing returns however can be very complicated and arduous. This can soon turn in to an uphill process if you are not sure which policies apply to you. Plus you will have to go through a lot of paper work to submit your federal income tax returns correctly. So the IRS has provided you with E-files. E-files is an electronic system of filing your tax return, which is also available from a few trustworthy IRS registered service providers.
With e-files there is absolutely no paper work to be done and you will be guided through the filing process. These combines eliminate any errors that you might have made during the filing process. It is also free for those with an AGI below $56,000 annually. This is a very safe and secure method of payment, which also alerts you of policies that may apply to you, there by reducing your tax returns.
The taxable income of the person is determined by a two-tiered system. First the person's actual income is determined and this is considered as the base of the calculation. Upon this net income, certain deductions are made to obtain the gross total income. Then the gross total income is adjusted with the itemized deductions list or the standard deductions list, whichever is deemed applicable to the individual in question. The deductions are what finally give the adjusted gross income or AGI. Any income tax applicable is then calculated on the basis of a person's AGI.
The IRS follows the internal revenue code to determine taxable amounts and each year the taxable amount is changed and adjusted based on the inflation. There is a minimum AGI amount, below which a person will not have to pay tax. However, every earning member is expected to file a tax return.
As per the Internal Revenue Code, the returns can actually be divided in to tax returns and information returns. But the usual term used for both is 'tax returns' and it is often used to talk about both types of returns. Every person is expected to declare the tax liable assets that the person holds. The tax will thus be based on that. However, there are provisions under which a person can gain tax credits during filing tax returns. These credits are actually better than the deductions because tax credits are calculated after the tax is charged and not before. Hence, a deduction would mean a saving equivalent to the taxable percentage of the amount. Whereas, a tax credit means that the entire amount of the tax credit is saved. So at 17% tax, a $100 deduction saves you $17 but a $100 credit saves you the full $100.
Filing returns however can be very complicated and arduous. This can soon turn in to an uphill process if you are not sure which policies apply to you. Plus you will have to go through a lot of paper work to submit your federal income tax returns correctly. So the IRS has provided you with E-files. E-files is an electronic system of filing your tax return, which is also available from a few trustworthy IRS registered service providers.
With e-files there is absolutely no paper work to be done and you will be guided through the filing process. These combines eliminate any errors that you might have made during the filing process. It is also free for those with an AGI below $56,000 annually. This is a very safe and secure method of payment, which also alerts you of policies that may apply to you, there by reducing your tax returns.
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