Volunteer Tax Assistance

Much to everyone’s chagrin the 2010 tax season is almost upon us. If you are looking for 2010 income tax preparation that won’t cost a dime,you may qualify for a sponsored community based  IRS program.

These are a few facts you may want to know about the Volunteer Tax Assistance programs.

  1. The Volunteer Tax Assistance and 2010 Tax Council program for senior citizens are sponsored by the IRS.

  2. The Volunteer Tax Assistance service gives 2010 tax assistance free of charge for those who earned less than $49,000. Some locations have free filing services.

  3. The Tax Counseling for the Elderly service gives tax assistance to those age 60 and older.

  4. If you don’t speak good English, several sites provide free translation services.

  5. The program volunteers get raining from the IRS to assist qualified taxpayers with tax credits and deductions like the Earned income Credit, elderly tax benefit, and child tax benefit.

  6. As many as 12,000 free locations are open for the 2010 tax year across the country as the IRS proceeds to establish more business relationships with community and nonprofit centers carrying out these important services.

  7. AARP has more than 6000 Volunteer Tax Assistance locations providing the free tax help program during tax season. The full licensed and trained volunteer AARP staff give aide to taxpayers who earn low to average wages with special attention given those over 60.

  8. The IRS also collaborates with the military to provide 2010 tax service free to members of the military and their household. The Armed Forces Tax program is made up of tax program counselors for the Air Force, navy, Marines, Coast Guard and Army who are trained thoroughly and prepared to handle any detailed like combat zone benefits.

  9. The hours and locations vary by city and details can be found through local community centers and hot line information.

  10. You can find out about local Volunteer Tax Assistance locations from the IRS site or by calling their toll-free number at 1-800-906-9887. For the AARP Tax Aide Program closest to you, call 1-888-227-7669 or go to their website at AARP.org.

Strategies for Settling Tax Debt

Every taxpayer has several options for resolving his federal tax debts. There are many tax professionals who are willing to help individuals to evaluate their options for dealing with tax debts. They will prepare financial statement for their clients based on their financial situation to determine which tax settlement strategies are most applicable for them.

Below are the five strategies to settle your tax debts.

1. Installment agreement –  This is a monthly payment plan for paying off your Internal Revenue Service. With this IRS tax debt settlement strategy, either you or your tax professional can set up an instalment agreement by filling out some paper works, over the phone or by using online payment agreement.

2. Not currently collectible –  It means that the taxpayer has no ability to pay his tax debts. After the Internal Revenue Service received the evidence that you have no ability to pay, it will declare that you are “currently not collectible”. After declaration, the IRS shall stop all collection activities including levies and garnishment.

3. Partial payment installment agreement –  This is an IRS tax debt settlement strategy that contains a fairly new debt management program. Through this, you will have a long term payment plan to pay off the Internal Revenue Service at a reduced dollar amount.

4. Filing a bankruptcy – As a tax payer, you can be eligible for discharge under Chapter 7 (which provides full discharge of your allowable debts and which is most likely applicable when you have no real state or when you have modest income) or under Chapter 13 (where you will be provided with a payment plan to repay some of your debts, with the remainder of debts discharged) of the Bankruptcy Code. However, not all tax debts are capable of being discharged in bankruptcy.

5. Filing an offer-in-compromise –  It is one of the best ways to settle your tax debts for even less than the amount you owe. There are 3 options for this IRS tax debt settlement strategy: lump sum payment, monthly payment for over 24months or less, or monthly payments over the remaining statute of limitations. If you choose the lump sum payment plan, you must submit at least 20% down payment or must start making monthly payments if you choose any of the two monthly payment options.

There are several tax settlement strategies you can choose from. However, there are certain requirements for each option that you have to comply first before you become eligible.

Ready for Tax Season? Learn the 3 Key Steps to Avoiding the Ire of the IRS

Just about everyone fears a tax audit from the IRS, but why? If you haven’t done anything wrong, there may really be no reason to fear such an inspection of your financial matters. Maybe this fear comes from the knowledge that we aren’t always sure we’re doing our taxes correctly in the first place. Maybe it comes from the fact that the tax code is so bloated with exceptions, exemptions, and deductions, that it leaves most us wondering if we indeed have a clue as to what we are doing when we fill in those simple looking tax forms that sit beside the huge instruction booklet. Maybe it’s just that as Americans, we don’t like having our privacy invaded by “the man” and don’t appreciate the fact that he’s checking up on us and our private financial affairs.

Whatever the reason, an audit is something the majority of us would prefer not to have to deal with. But mistakes, voluntary or not, can sometimes lead us in that direction. Here are three common tax mistakes that people often make and ways to avoid them.

Being and Staying Organized

Keeping all your pertinent financial and tax information together throughout the year isn’t necessarily easy. However, it can make a huge difference when it comes time to file. For many, one of the major mistakes when it comes to taxes is not having all the documentation they need at the end of the year easily at hand to make their filing process more efficient. Not having the proper documents can lead to mistakes and errors that could raise a red flag when your return gets to the state or federal level.

But being organized is only half the battle to avoiding this tax mistake. Staying organized after the fact can be important as well. Keeping your tax information together and in a location that is easy for you to find can help you if you need to reference information from a previous year or have to deal with an audit and need to provide documentation for your tax claims.

Deduction Fear

What if you happen to misplace certain documentation relating to your taxes such as a charitable donation receipt or similar item but have a legitimate claim to taking the item as a deduction or credit upon your taxes? This might lead to another common mistake — failure to take the deduction that you are eligible for anyway.

If you have legitimately made certain purchases or are eligible for certain credits or deductions, but may not have or can’t find the necessary documentation to prove it, this doesn’t necessarily mean you shouldn’t attempt to take the deduction. While it might be like playing a form of roulette — taking your chances of not being able to prove the item if you are audited — it’s not as if you are illegally claiming something you didn’t actually deserve, and your conscience should be clear even if the tax man gives you a slap on the wrist.

Knowing When to Call it Quits

Pride can be a dangerous thing, and when it comes to doing your own taxes, it can sometimes get in the way of a properly completed tax return. Frugality can also play into the mix of tax preparation mistakes, preferring cost savings by completing a tax return on your own as opposed to paying a professional to do it for you.

Saving a buck can be a great aspect of doing your taxes yourself, and the pride that comes with sealing that envelope and mailing a tax return you’ve completed yourself off to the IRS can a be a wonderful feeling, but these factors can also be common and dangerous mistakes in the realm of taxes. Knowing when to pack it in, swallow your pride and spend a buck to get a professional’s touch upon your tax return can save you time and even money by avoiding costly mistakes. Doing so might also provide you with peace of mind knowing that you haven’t missed any deductions and that you have a professional on your side should you indeed be audited.

Anastacio Mindiola is an accomplished attorney and business owner. His company helps home and business owners protest property taxes in Houston and the surrounding counties. For more information on how you can lower your property taxes visit https://republicpropertytax.com/.