Mar 282017
 

Wash. D.C. New York Times

Republicans in Congress have been saying for months that they are working on a plan to repeal and replace Obamacare in the Trump era. Now we have the outline of that plan, and it looked as if it would redirect federal support away from poorer Americans and toward people who are wealthier. A white paper drafted by House leadership and the staff of the house and Senate committees that oversee health policy details a structure that could replace large sections of the Affordable Care Act. Crucially, the proposal largely contains provisions that could be passed through a special budget process that requires only 50 Senate votes, and fulfills President Trump’s promise that the repeal and replacement of the law would take place “simultaneously”.

The plan would make major changes in how health care is financed for Americans who don’t get coverage from work. It would greatly expand the number of American’s who could benefit from federal help in buying health insurance, but it would change who benefits most from that support. Obamacare, as the ACA is known, extended health coverage to 20 million Americans through two mechanisms, it expanded Medicaid coverage to Americans belwo or just below the poverty line in states that participated, and it offered income based tax credits for middle income people to buy their own insurance. Obamacare was a redistributive law, transferring money from the rich to the poor.

The Republican plan would have altered both of those programs, changing the winners and losers. It would substantially cut funding for states in providing free insurance to low income adults through Medicaid. And it would change how tax credits are distributed by giving all Americans not covered through work a flat credit by age, regardless of income. But the current system is set up to ensure that low and middle income Americans can afford the cost of their premiums. The Republican plan would not do that, and would result in many more low income people losing out on coverage if they couldn’t find the money to pay the gap between their fixed tax credit and the cost of a health plan.

Mar 272017
 

Wash. D.C. msn.com

The election of Donald Trump to the presidency has caused quite a stir. And so far, the new commander in chief has proposed quite a few changes. One centers on the federal estate tax, which up until now has been a roadblock for some wealthy investors hoping to create a financial legacy for their heirs. Here’s a look at how President Trump’s estate tax proposal may affect affluent investors.

What Trump is proposing as part of a larger tax initiative. President Trump has suggested a complete repeal of the federal estate tax. Currently, the estate tax exclusion is $5.49 million. Anything below that threshold would be exempt from estate tax altogether. The exemption doubles to $10.98 million for married couples filing joint tax returns.

The highest marginal tax rate at which the estate tax applies tops out at 40%. That’s only slightly higher than the 39.^% maximum ordinary income tax rate. This rate applies to any additional estate assets that exceed the exemption limit. For example, if you pass away in 2017 and leave behind as estate valued at $6 million, the remaining $510,000 would be subject to the estate tax.

If you end up with taxes you cannot pay, and need tax resolution, call 1-888-689-7861 for a free tax resolution consultation today.

Mar 262017
 

Wash. D.C.  tax-news.com

With the April 18th tax filing deadline almost a month away, the Internal Revenue Service has reminded taxpayers to ensure the security of their personal financial and tax information. In the sixth in a series of 10 IRS tips called the Tax Time Guide, designed to help taxpayers navigate common tax issues, the agency urges taxpayers to take personal responsibility for their online security, and reminds them to take steps to help protect personal information and guard against identity theft.

“This is true all year long, but particularly at tax time, when taxpayers may anticipate hearing about a tax refund or the status of their return,” the IRS said. John Koskinen, IRS Commissioner, added, “The IRS works year round to protect taxpayers against scams and identity theft. But we can’t do this alone. The IRS has given a high priority to data security issues after an increase in recent cases of identity theft and fraudulent tax return claims. However, Congress has criticized the agency for failing to do enough in the past to protect taxpayer information from scammers.

At a U.S. Senate Finance Committee hearing last year, Chairman Orrin Hatch (R-Utah) said that, despite efforts to improve the prevention and detection of fraudulent returns (including the Security Summit initiative between the IRS, states, and the tax preparation industry), “We have also seen unprecedented growth in the scope and scale of cyber attacks aimed at stealing personal information and billions of dollars from taxpayers.” Tax resolution services are usually needed by those who have identity theft, due to online security breaches.

The largest such attack occurred in May 2015, when the IRS found that unauthorized third parties had obtained sufficient information from a source outside the tax agency to clear a multi step authentication process to view previous tax returns and other tax records relating to hundreds of thousands of taxpayers, via the Get Transcript system. However, in its latest series of tips, the IRS said taxpayers can help themselves considerably by treating personal information “like cash–don’t hind it out to just anyone.”

“Social Security numbers, credit card numbers, bank and utility account numbers can be used to steal money or open new accounts. Every time a taxpayer receives a request for personal information, they should think about whether the request is truly necessary. Scammers will do everything they can to appear trustworthy and legitimate.”  If you do get scammed, and have identity theft, call us for Tax Resolution Services to resolve your IRS tax nightmare.msnbc

 

Mar 242017
 

U.S.A. msn.com

The average American’s income tax refund in 2016 was $2860–that’s some serious “extra” money you don’t want to leave on the table. But, how do you plan on spending your tax refund ? To find out, GOBankingRates conducted a survey and asked Americans, “What do you plan on doing with your tax refund ?  Respondents were given seven possible answers and were limited to one response each.

Pay off debt (loans, credit cards, etc.)

Splurge on a purchase (TV, shoes, etc)

Put the money toward a vacation.

Put the money in savings.

Make a major purchase (car, home, etc)

I do not receive a tax refund.

None of the above.

Twenty one percent of all respondents said they do not receive a refund. But the most common response selected was “none of the above”, which was chosen by 32 percent of respondents. These people might not have a clear plan for their IRS money, they aren’t sure they will get a refund this year, or they have plans for the refunds that are not found in the other responses. This analysis focuses on the responses from those who didn’t choose “none of the above” or “I do not receive a tax refund.”

 03/24  Tagged with:  No Responses »
Mar 222017
 

Wash. D.C. msn.com

THE EARNED INCOME TAX CREDIT

This was designed specifically to assist low to moderate income families and is one of the great credits. This is truly one of the great credits. However, even  single taxpayers can benefit from the credit. Income and the number of children in your household determine the amount of the credit. For tax year 2016, the income limit ranges from $14,880 if you’re single and have no children to $53,505 if you’re married and filing jointly with three or more children. For 2016, the maximum amount of the credit is $6269 for three or more qualifying children. $5572 for two qualifying children. $3373 for one qualifying child. $506 for no qualifying children.  You must qualify for the credit by having business income or income from a job. If you’re claiming a qualifying child, he must be younger than 19 unless he’s enrolled as a full time student, in which case the age limit rises to 24.

THE SAVERS TAX CREDIT

Formerly known as the retirement savings contributions credit–was designed to help lower income families contribute to retirement plans. IF you qualify for this credit, it essentially pays you to put money in your retirement account. You can write off the first $2000 of contributions you make to a qualified retirement plan–and a wide range of retirement accounts will qualify, from a 401K to a traditional or Roth IRA. This is one of the all time great credits.

THE AMERICAN OPPORTUNITY TAX CREDIT

This credit is an educational tax benefit that replaces and expands on the Hope credit and can be claimed through tax

National Society of Tax Professionals

year 2017. It applies to the first four years of college educational expenses and provides a tax break for expenses including tuition, books and other supplies. The credit is worth up to $2500 per year, and its most attractive feature might be the fact that up to $1000 of the credit is refundable if you don’t owe any taxes. In other words, if your tax bill is $750 but you earn $1000 in refundable tax credits, you’re entitled to a refund of $250.  These great credits are available if you know the IRS tax code. Call us if you need help.

 03/22  Tagged with:  No Responses »
Mar 202017
 

Wash. D.C. msn.com

The Republican plan being looked at in Congress has implications for Americans taxes. Much of the early response to the Republican plan is that lawmakers plan to repeal and replace Obamacare has understandably centered on the bill’s potential impact on participants in the federal health care industry program. But advocates of the American Health Care Act also face another challenge: convincing the people that they’re not getting a raw deal as taxpayers.

A range of analysis, from health industry experts, economists and other researchers, concludes that the House bill creates large tax breaks for the wealthiest Americans, while middle–and lower income families, may see no IRS tax help, and pay higher price tags for health insurance. Tax repeals. Starting next year, the House bill would repeal two Affordable Care Act revenue producing taxes: The hospital insurance tax and the Medicare tax on unearned income. Only individuals with income above $200,000 pay these taxes. Families with annual incomes up to $200,000 wouldn’t see any break in their tax bill, according to a recent report from the Center on Budget and Policy Priorities. Millionaire households, however, would see a tax cut of around $50,000 a year, giving them an after tax income boost of about 2 percent, the liberal leaning think tank noted.

In addition, to these rollbacks, the House bill calls for the elimination of all but one of the other taxes used to fund Obamacare, including taxes charged to insurance providers, pharmaceutical companies and medical device manufacturers. The bill would even eliminate the 10 % sales tax charged at indoor tanning salons, according to a report from tax services firm Wolters Kluwek. The so called Cadillac tax on high cost, employer sponsored health plans would remain, but would be delayed until 2025.

Under the ACA, tax credits designed to help consumers pay for marketplace insurance plans are based on income and the cost of a benchmark plan in an individual’s exchange. The House bill, however, provides refundable tax credits solely based on age, ranging from $2000 a year for people under 30 to $4000 a year for people over 60.

 

 03/20  Tagged with:  No Responses »
Mar 162017
 

Wash. D.C. msn.com

President Trump wants to abolish the “Alternative Minimum Tax” that, according to a copy of his federal income tax returns, cost him $31 million in 2005 and was one of the big Trump taxes. That $31 million was a majority of all the $38.5 million in taxes he paid on his $153 million in total income for that year. The White House confirmed part of the president’s 2005 tax returns ahead of a report from MSNBC host Rachel Maddow. Trump said he wanted to abolish the AMT in 2016 when he was on the campaign trail. If the Alternative Minimum Tax didn’t exist, Trump would have paid only a fraction of his 2005 tax bill. Trump’s return shows that alongside the AMT adjustment the other taxes he paid total only about $7 million, or 4.5 % of his $153 million in total income. As it is, Trump paid an effective ta rate of about 25% on his Trump taxes.

Under Trump’s proposal, he would have paid about 5.5% in tax rather than the 25% he actually paid. That would have lowered his tax rate to below that for people who earn less than $100,000, according to the New York Times. It would also have saved him about $31 million. You can debate the numbers because the tax rules generate them according to the structure in place in 2005, not the structure that would be in place if the AMT were abolished, which might change how Trump’s income and taxes would be calculated. Despite that, the numbers do give a rough guide to how much Trump would personally save if his AMT proposal were enacted.

The intent f the Alternative Minimum Tax is to ensure that wealthy and self employed Americans pay tax rates that are comparable to those paid by ordinary workers on a salary or a single wage. The AMT was introduced in 1970 to solve the problem of wealthy people paying lower tax rates that those poorer than them.

 

 

 03/16  Tagged with:  No Responses »
Mar 152017
 

New Jersey. msn.com

The owners of a popular Jersey shore pizza restaurant chain were sentenced for evading taxes and lying to the IRS. Manco & Manco Pizza owner Charles Bangle was sentenced in federal court in Camden to 15 months in prison and three years of supervised release. His wife, Mary, was sentenced to three years of probation and a $3000 fine.
Charles Bangle was also ordered to pay $248,000 in restitution and a $5000 fine. Charles Bangle pleaded guilty in July 2015 to evading taxes on his 2011 tax returns and structuring financial transactions to avoid reporting requirements. Mary Bangle pleaded guilty to knowingly making materially false statements to the IRS. This is not the first Pizza chain owner tax fraud case in the U.S.

Mar 132017
 

New York. Bloomberg.com

Are millions of Americans just forgetting to file their taxes this year ?  More than halfway through the 2017 filing season, the U.S. Internal Revenue Service reported receiving 5.7 million late tax filings than at a comparable point last year. That’s an 8.5 percent drop showing definite evidence of late tax filings.  The vibe for 2017 ? Slow and sluggish. There are several possible explanations for why taxpayers aren’t filing.

Theory number one, Plain old procrastination. More and more people who used to file in January and February are waiting until the last moment. Last year, IRS data on April 15–the traditional tax deadline–showed individual filings running 5.8 percent behind the previous year. But the deadline was April 18th in 2016, which gave taxpayers an additional three days to file. In the week following April 15th, a whopping 12 million tax returns came in, and filings ended up 1.7 percent higher than in the previous year.

Theory number two, you know who. John Hewitt, chairman of Liberty Tax, raised the possibility in a call with analysts March 8th. Undocumented workers often use individual taxpayer identification numbers (ITINs) rather than Social Security numbers to file. “Those ITIN filers are filing at a reduced level this year,” Hewitt said. They’re “probably fearful of the Trump initiatives.”

Theory  number three, delayed refunds. in an effort to crack down on fraud, Congress passed the PATH Act, which requires the IRS to increase scrutiny of certain tax credits often claimed by low income families. As a result, the agency stated it would not issue refunds this year until February 15th for the millions of families claiming the Earned Income Credit.

Theory number four, confused tax payers. Taxpayers trying to sort out the tax changes, due to a new administration, may be trying to figure out new tax laws.

If you have filed your taxes, and find you owe the IRS, call us for your Tax Resolution. We are a 26 year old Tax Resolution Company. We have been providing America with Tax Resolution for over 26 years. seen on

 

 

 03/13  Tagged with:  No Responses »
Mar 132017
 

Arizona. tax-news.com

Senator Flake (R-Ariz.) has become the latest Republican voice to speak out against the border adjustment tax in the House majority’s proposed tax reform framework. Flake took to the Senate floor on March 8th to express concerns with a proposal he said could push up consumer prices, disrupt international supply chains, and damage America’s trade relationships. A key component of the “Better Way” tax reform framework published by House Speaker Paul Ryan (R-Wisconsin) last year, the BAT would adopt a corporate tax provision operating in a similar fashion to other countries value added tax (VAT) systems on international trade, whereby a tax would be imposed on imports and tax rebates would be provided on exported goods. (Increased prices might increase the need for Tax Resolution Companies, if families decided to not pay taxes, to get by due to the increased prices.)

“At first glance, it turns out it’s not that easy. Looking forward, we simply do not produce everything we need here in the United States. That’s why we trade with other countries in the first place. And for the things that we do make here, those products often require inputs from allover the world.” According to Flake, approximately half of the country’s imports consist of inputs for US productio  and manufacturing. “What will happen if we placed a new 20 percent tax on all imports ?” Senator Flake asked.

“I am certain that I am not the only one hearing that this approach could make everyday consumer products more expensive at the very places middle class families ship the most,” he said. Indeed, other leading Republicans have spoken in cautious terms about the proposed BAT, including Senate Finance Committee Chairman Orrin Hatch (R-Utah), who told the US Chamber of Commerce last month that more questions than answers surround the proposal.

If you have a tax debt and have looked at other Tax Resolution Companies, and heard the sale pitch, call us to learn “how” to hire the right  Tax Resolution Services company. Tax Resolution Companies come and go. We have been around since the beginning of the Tax Resolution industry. 26 years serving America.

 03/13  Tagged with:  No Responses »