Wednesday, November 21, 2012

Tax Increases Loom after ‘Fiscal Cliff’

Taken from: http://blogs.wsj.com/wsjam/2012/11/21/tax-increases-loom-after-fiscal-cliff/

Almost all American households would take a financial blow next year—and low-income families would be among the hardest hit—if the White House and Congress fail to solve the “fiscal cliff” of big tax increases and spending cuts set to start Jan 2.

A married couple making between $20,000 and $30,000 a year would go from receiving, on average, a $15 tax credit to owing $1,408, according to research by the Tax Policy Center, a joint venture of the Brookings Institution and the Urban Institute.

These taxpayers would be part of the roughly 90% of American households that the Tax Policy Center estimates would face higher tax bills for 2013 if Washington cannot craft a deficit-reduction plan to replace the fiscal cliff—the $400 billion in tax increases and $100 billion in spending cuts slated to take effect next year.

The tax increases stem from the fact that various tax cuts and other tax measures all were passed on a temporary basis and are set to expire. Most of the increases would result from the expiration of Bush-era tax cuts, which would cause marginal rates to rise. Simultaneously, several temporary tax breaks pushed by President Barack Obama after the financial crisis also would end. The Wall Street Journal’s John McKinnon joined WSJTM’s Andrew Colton to discuss the impact the pending ‘Fiscal Cliff’ could have on the American household.

These posts are for informational use only to educate people about their taxes and the financial world around them. If you found this helpful, share the original article or this one, and help spread the word!

Please like us on Facebook: http://www.facebook.com/onlinetaxpros
and follow us on Twitter: @onlinetaxpros

Tuesday, November 20, 2012

Tax loopholes alone can't solve fiscal cliff - Lauren French - POLITICO.com

Here is an interesting post that shows the gravity of the fiscal cliff we're about to fall down.

Raise revenues and reform the Tax Code? Easy — just eliminate all the tax loopholes, right?

Good luck with that.

“Eliminating loopholes” sounds a lot better than “raising rates”: The tax rate is what I pay, and a loophole is what the other guy gets.

But the biggest loopholes in the U.S. Tax Code — generally referred to as tax expenditures — aren’t just the tricks of the trade for millionaires with offshore bank accounts. For the vast majority of Americans, they’re just how things work: You don’t pay taxes on your health insurance or Medicare benefits; you contribute tax-free to your 401(k); and your mortgage interest pushes down your tax bill each year.

And even if you dump the biggest of the set, these tax perks don’t even come close to closing the deficit. At best, the top 10 would pull in an extra $834 billion a year, according to Joint Committee on Taxation figures. Considering the hole lawmakers are trying to fill is several trillion dollars large, it’s clear they wouldn’t even come close.

Here are the 10 biggest tax loopholes — and the reasons why most of them will survive the fiscal cliff.

Read more: http://www.politico.com/news/stories/1112/84065.html#ixzz2CmkrHiNc

These posts are for informational use only to educate people about their taxes and the financial world around them. If you found this helpful, share the original article or this one, and help spread the word!

Please like us on Facebook: http://www.facebook.com/onlinetaxpros
and follow us on Twitter: @onlinetaxpros





Friday, November 16, 2012

Electronic Tax Filing News Update: Hurricane Sandy Scams

The world we live in is cruel and opportunistic. As our economy sinks and more people are left without jobs and/or stable living, those people turn to crime to fill the financial gap. Even during times of natural disasters, criminals see other peoples' plight as a chance to cash in on the generosity of others.

Hurricane Sandy's effect on New York

Even though hurricane Sandy hit almost a month ago, the devastation she left behind still has people without power and homes. These people need help, and with all these cries for donations come a few wolves in sheep's clothing. Irs.gov has released an article about how to avoid giving your money to someone other than the victims of Sandy: http://www.irs.gov/uac/Beware-of-Hurricane-Sandy-Scams.

Here is an excerpt from the article, and I hope that it helps you choose the right place to give your much-needed donation!

The IRS cautions both hurricane victims and people wishing to make disaster-related charitable donations to avoid scam artists by following these tips:
  • To help disaster victims, donate to recognized charities.

  • Be wary of charities with names that are similar to familiar or nationally known organizations. Some phony charities use names or websites that sound or look like those of respected, legitimate organizations. The IRS website at IRS.gov has a search feature, Exempt Organizations Select Check, which allows people to find legitimate, qualified charities to which donations may be tax-deductible. Legitimate charities may also be found on the Federal Emergency Management Agency (FEMA) Web site at fema.gov.

  • Don’t give out personal financial information — such as Social Security numbers or credit card and bank account numbers and passwords — to anyone who solicits a contribution from you. Scam artists may use this information to steal your identity and money.

  • Don’t give or send cash. For security and tax record purposes, contribute by check or credit card or another way that provides documentation of the gift.

  • Call the IRS toll-free disaster assistance telephone number, 1-866-562-5227, if you are a hurricane victim with specific questions about tax relief or disaster related tax issues.
Scam artists can use a variety of tactics. Some scammers operating bogus charities may contact people by telephone to solicit money or financial information. They may even directly contact disaster victims and claim to be working for or on behalf of the IRS to help the victims file casualty loss claims and get tax refunds. They may attempt to get personal financial information or Social Security numbers that can be used to steal the victims’ identities or financial resources.

Bogus websites may solicit funds for disaster victims. Such fraudulent sites frequently mimic the sites of, or use names similar to, legitimate charities, or claim to be affiliated with legitimate charities, in order to persuade members of the public to send money or provide personal financial information that can be used to steal identities or financial resources.   Additionally, scammers often send e-mail that steers the recipient to bogus websites that sound as though they are affiliated with legitimate charitable causes.

Taxpayers suspecting disaster-related frauds should visit IRS.gov and search for the keywords “Report Phishing.”

More information about tax scams and schemes may be found at IRS.gov using the keywords “scams and schemes.”

View my other articles about tax scams to continue your education!

With the economy in the shape it's in, people need all the money they make just to make end's meat. Don't let someone take advantage of you and your personal information to make their life easier by making your life harder. We at Online Tax Pros hope you can benefit from this information and have an awesome tax refund!

Please leave a comment if you know of any other tax scams or other articles relating to people taking advantage of the victims of hurricane Sandy that are not listed here so we can spread awareness! Our thoughts and prayers go out to all the victims and their families.

Please like us on Facebook: http://www.facebook.com/onlinetaxpros
and follow us on Twitter: @onlinetaxpros

Monday, October 1, 2012

Electronic Tax Filing News Update: Debit Fraud

Be careful when shopping online, and at the ATM
Cheaters and criminals are everywhere. You may be standing next to someone in line, and while you're minding your own business, they could be peeking in your purse, looking for an opportunity to rob you. Technology has made that more and more accessible, and now more crimes are performed electronically and stealing your money is as easy as installing a device that records your debit card information.

In case you've been living under a rock, a debit card may look like a credit card, but it is a direct line to your checking account. There is no middle man credit card company that oversees your charges. The money is drawn out and used for the purchase. This fact alone makes fraudulent activities much easier to accomplish by criminals, and getting reimbursed for these types of fraud can take much longer than credit cards.

This doesn't stop people from using debit cards, and doesn't deter them in the least. People use debit cards everywhere they are available for purchases, using their ease instead of carrying around your cash. Just because you use the plastic doesn't mean that your money is safer, and if you use your debit card in the wrong place, just the opposite may be true.

Fraud cases involving debit cards are rapidly increasing. Your sensitive account information, which includes your debit card number, and your PIN(personal identification number), is at risk because of “skimming” devices. These devices can be placed over actual ATMs, and unless you are actively looking for them, you may not know the difference.

Yes, criminals are now getting access to technology that camouflages as the actual ATM machine or card reader, and uses cameras and scanning devices to record PIN number entries, and card information respectively. All this can happen in the fraction of time it takes to swipe your card or enter your PIN number. This information is then stored until the installer is ready to use your acquired information for online purchases, where simple data entry is a substitute for your physical card. The criminals are even smart enough now to create a counterfeit debit card, which may exactly resemble or come close enough to pass for your original card!

This type of convenience for criminals has made card-not-needed fraudulent purchases the leading method of debit card fraud. Physically stolen debit cards and counterfeit cards are also rising in popularity, but not nearly as accessible.

With purchases not requiring the physical card making fraud so easy, this method has become the most popular and common type of fraud performed on debit account holders. With the ease of access and availability of this type of purchase, this method of fraud has become the most costly as well, and the customers are held accountable for much longer than credit cards. Fraud is much harder to reimburse on a debit card than a credit card, and criminals are taking advantage of this in droves. Be wary and watch where you slide your card, and always cover the keypad with your wallet or other obstruction before entering your pin. Even when you think no one is watching, how can you be certain?

Article source: http://ezinearticles.com/?Facts-About-Debit-Card-Fraud&id=7306100

View my other articles about tax scams to continue your education!

With the economy in the shape it's in, people need all the money they make just to make end's meat. Don't let someone take advantage of you and your personal information to make their life easier by making your life harder. We at Online Tax Pros hope you can benefit from this information and have a great tax season!
Please leave a comment if you know of any other tax scams that are not listed here so we can spread awareness!
Please like us on Facebook: http://www.facebook.com/onlinetaxpros
and follow us on Twitter: @onlinetaxpros

Tuesday, August 28, 2012

Corporate Tax Cheats are Bankrupting America (Infographic)

This infographic shows you all the companies that get to pay 0% taxes. The tax rate is supposed to be 35% percent, but through various loopholes and other systems the people of our country have to suffer.
From: http://usuncut.org/blog/infographic-corporate-tax-cheats-are-bankrupting-america



Leave a comment if you found this article informative, or want to voice your opinion on how these corporations get to evade so many taxes.When you file your online tax return, make sure it is with a reputable company, like Online Tax Pros. We make it easy to file taxes online and look forward to helping you e-file your income taxes.

Please like us on Facebook: http://www.facebook.com/onlinetaxpros
and follow us on Twitter: @onlinetaxpros

Friday, August 24, 2012

EZ Tax Home or Business Opportunity for Extra Income!

Did You know?

There are over 100 million taxpayers currently filing their annual income tax return electronically. The Internal Revenue Service expects that number to reach 120 million by next year. That means 20 million more people will be seeking tax preparers over the next few years.

With our referral program YOU can profit by providing them a professional income tax preparer, from the comfort of your own home or business!

Our tax software is fast, reliable, and error-free. Hundreds of business owners are discovering the benefits of joining the EZ Tax program to E-file income tax returns. This is an opportunity to take advantage of the software like never before: from your home!

This can be your hand,
and your money!

How can I benefit from this?

Want to make up to $225 dollars an hour?


Using your own personal computer, EZ Tax wants you to help people file their income tax returns face to face with our professional tax preparers through your webcam.(YOU DON'T HAVE TO DO THEIR TAXES!)

This referral service allows you to help people get their taxes filed without them having to visit a busy tax office. EZ Tax has experienced and professional tax preparers ready to file your customers' taxes and give them the personal connection of a face to face conversation.

With a one-time registration fee of  $99 dollars, EZ Tax Software wants YOU to turn your home office into a tax preparation referral service! The best part is you get PAID to refer customers to our professional tax preparers at ZERO liability to you!

You can get back your initial registration fee after referring only 2 people! EZ Tax recommends you charge at least $150 dollars per return (you receive $75 dollars per referral) but you may charge more. After your first 4 referalls have been successfully transmitted you'll be making money from home quickly and easily. You can choose how much money you make, and EZ Tax wants you to be successful!

Your customers will get their tax return processed for only $150 dollars with this special promotion by e-filing with EZ Tax! This is one of the most economical ways to file your taxes compared to the other big-name companies!

Click HERE to start your home-based business today!

Attention Businesses

This is also a great opportunity for you! We would be happy to help you bring in new customers with our business opportunity. Just set up a station and let your customers do their taxes while shopping in your store or while waiting for your services. It's an easy way to get more customers and money for your business!

More articles about tax info for individuals, home-based and small businesses:

 Visit our site: http://www.onlinetaxpros.com
Please like us on Facebook: http://www.facebook.com/onlinetaxpros
and follow us on Twitter: @onlinetaxpros

Friday, August 10, 2012

INFOGRAPHIC: Where Your Federal Tax Dollars Really Go

Source: http://articles.businessinsider.com/2011-10-31/news/30341140_1_uncle-sam-frenzy-checks

This infographic shows how our annual federal budget is divided up. Definitely worth taking a look at!













Leave a comment if you found this article informative, or have found other ways to pay back your debts with the IRS.When you file your online tax return, make sure it is with a reputable company, like Onlinetaxpros.com. We make it easy to file taxes online and look forward to helping you e-file your income taxes.

Please like us on Facebook: http://www.facebook.com/onlinetaxpros
and follow us on Twitter: @onlinetaxpros

Wednesday, August 8, 2012

How To Pay Back The IRS


A shoe is usually cheaper than your tax debt
Some people just don't have the best luck. During tax time you can can rest assured you will hear most people say, “I'm gonna do so much with my return this year.” They'll all have their projects or vacation plans, being happy about money they should already have. It's different for you this year, though, and you have to stay quiet. You may even have to hide a look of worry on your face with a feigned smile. Instead of getting a refund you owe the IRS money, and you may or may not know how you're going to pay it back.

This article outlines the methods of payment that the IRS has to help you pay back your tax debts. For the Internal Revenue Service, this is not their first rodeo, and they are in business because people pay. They have methods for you to pay back your tax debt even when you can't pay it in one lump sum.

Methods of Payment

You can move the funds electronically. This can be done by an electronic transfer of funds, a written check from your bank account, a cashier's check, money order, or good old greenbacks(cash money). If you want to do this online, the web address is www.eftps.gov or you can call 1-800-555-4477.

There is also the option of having the IRS withhold from your weekly or bi-weekly employment checks. The IRS has a withholding calculator at their website, www.irs.gov, which can help you figure out how much you will have to give up each pay period. You must contact your employer as well, in order to change your W-4.

It might be better to get a loan. You're expected to pay the IRS back in full including any penalties and/or interest you may have accrued during the process. If you can't pay back the large amount you may owe, it may be best to get a loan. This is essentially moving your debt to another person, but if the interest rates are less than what the IRS will charge, you may be making the right choice. The IRS regularly charges penalties, which they must do by law, and those are usually higher than any loan you may receive from a bank or private investor. Just don't use a loan shark or anyone that may break your legs or have you “sleeping with the fishes.”

You can pay your taxes with your credit card!
Payment by credit card is an option you may can take advantage of. Everyone pays for everything with their credit cards and the IRS is no different. This is very similar to taking out a loan in that the interest rate on the credit card may be lower than the combined charges of the IRS interest rate and accompanying penalties. There are three companies that you can pay your debt with the IRS through: Link2Gov at 888-PAY-1040 (or www.pay1040.com), RBS WorldPay, Inc. at 888-9PAY-TAX (or www.payUSAtax.com), or Official Payments Corporation at 888-UPAY-TAX (or www.officialpayments.com/fed).

Ways to help with your debt(and maybe even lessen it!)

You should obtain an Online Payment Agreement if you owe $25,000 or less in combined tax, penalties and interest. You can request such an agreement by using the Online Payment Agreement application at the IRS's website.

Just because you owe more doesn't necessarily mean you are out of the running for an installment agreement. You have to file an additional form, which is Form 433F. This is also known as a Collection Information Statement, and it is required before you can be considered for an installment agreement.

You should apply for an installment agreement if you can't pay back your debt in full. This is similar to getting your check garnished, but you have an agreement to pay the IRS your debt back in monthly installed payments. This is only after you have become current with all your returns and other estimated tax debts.

The installment agreement is great if you're approved, but it comes with a one-time user fee that will be charged in addition to your tax debt. This can range from $105 for a new agreement or $52 for directly deducted agreements from your bank account. If you have a lower income, the fee can be lowered to $43.

A form 9465 is a request document required for an installment agreement, and must be sent along with your bill from the IRS. The approval time for this document to be considered is usually around 30 days. You will then be informed if you were approved, denied, or if they require additional information to process your request.

If you can get an Offer-in-Compromise program in place, you may actually settle your debt with the IRS for less than you originally owed. Don't think you can apply for this any time you have a large sum to pay back, as the IRS does several checks and investigations into your financial situation to determine that you can't pay the debt in full as a single payment or even though a payment agreement.

A time extension could benefit you as well, but you still have to pay your tax debt in full. You can call 1-800-829-1040 or by filling out the Online Payment Agreement Application which was detailed above. You usually don't have to pay a set up fee for a shorter-term agreement.

This information comes directly from http://www.irs.gov/newsroom/article/0,,id=172694,00.html
Leave a comment if you found this article informative, or have found other ways to pay back your debts with the IRS.When you file your online tax return, make sure it is with a reputable company, like Onlinetaxpros.com. We make it easy to file taxes online and look forward to helping you e-file your income taxes

More articles about debt and the IRS:
Online Taxes: Common Mistakes When Filing Taxes
Please like us on Facebook: http://www.facebook.com/onlinetaxpros
and follow us on Twitter: @onlinetaxpros

Thursday, July 19, 2012

Electronic Tax Filing News: Property Tax Scam


Source:

There is nothing wrong with wanting to have lower property taxes. People often think they are paying too much for their property taxes, and they're probably right. Shady companies have taken this thought people have and turned it into a business venture.

As a good rule of thumb beware any e-mail you get that claims to lower payments or tell you how much you could be saving with “X” product. Most likely these e-mails are phishing for your personal information. If you do put in your information and send the e-mail, you may get no response, but that doesn't mean nothing will happen. Often times this is a way to scam you for your precious financial figures or social security numbers, and the “companies” may not even really exist.

You can always challenge your own property assessment, free of charge. You don't have to have a company do it for you for a fee. Beware anyone that offers you this service.

This article outlines some specific guidelines to watch out for:
  1. The letters or e-mails appear to come from government run agencies, but are really private companies.(make sure to look at the fine print and all forms before responding)
  2. Offers to file a challenge of assessment, a free service, for a fee. They may claim to be “faster” or “guarantee” a lower property tax value.
  3. They ever ask for your property deed or a copy of such.
  4. Any company that asks for your Social Security Number
These scammers often mail you in time or before the city does their own reassessments. In the event that your property tax values will diminish through scheduled updates, the scam artists will charge you a fee and claim to reduce your fees, but it would have been done for you anyway when the city does them as scheduled. These creeps prey on your ignorance, and use the city's own efforts against you to turn a profit.
This is a fake, make sure you don't fall for this!
Source

Please throw any advertisements like these away or delete them immediately. Mark them as junk in your e-mail and always go through your city assessors for your property tax needs. Tax scams are running rampant with the financial hardships many are facing. Do your best to educate yourself. It is often your only protection against these predators.

View my other articles about tax scams to continue your education!

With the economy in the shape it's in, people need all the money they make just to make end's meat. Don't let someone take advantage of you and your personal information to make their life easier by making your life harder. We at Online Tax Pros hope you can benefit from this information and have a great tax season!

Please leave a comment if you know of any other tax scams that are not listed here so we can spread awareness!

Please like us on Facebook: http://www.facebook.com/onlinetaxpros
and follow us on Twitter: @onlinetaxpros

Monday, July 9, 2012

Top 5 Celebrity Tax Debts


Source

Celebrities are in the public eye all the time. They even have a devoted group of people who try to take photos of them in compromising positions just to prove they're not perfect and bulletproof. There's also another eye that these people are scrutinized under: Uncle Sam's. These are the top five highest tax debts I could find that are celebrities.


5.Marc Anthony
Source
I don't know which thing Marc Anthony is more famous for: being a top-selling international salsa artist, or being the ex-husband of Jennifer Lopez for a second time. Regardless, he owed a staggering total of $5.9 million dollars. This was not all one lump sum, but was compiled from a $1.8 million dollar bill held against his home in N.Y. From the state, a separate bill from the Internal Revenue Service for the same property at $1.6 million, and finally the $2.5 million he owed 5 years ago for back taxes from not filing income tax returns.





4.Nas
Source
The multi-platinum artist who's most successful album Illmatic is ranked 129 in the overall greatest album chart can also rank high in owing unpaid taxes. The artist owes $6 million and because he was unable to pay the debt, the IRS garnishes his wages. Every album that you buy of his now will go towards that debt. That would really lower my drive to put out new music, but how else do you pay it off? It would take a long time for sure working at a fast food restaurant.




3.Nicolas Cage
Source
Regardless of if you think Nicolas Cage is a good actor or not, his numbers do not lie. He has grossed over $2 billion dollars from his movies. That much money I would say is worth Sorcerer's Apprentice and Ghost Rider and every other bad movie he's done, since even those are still successful. He should have paid his taxes though, unfortunately. His debt with the I.R.S. from not paying his taxes became a ginormous $13 million dollars. This was paid back by auctioning “a few” of his homes. I'm sure he's not that worried, since he had about 15 before some were auctioned off. I sure wish I could say, “Ohh, I owe $13 million dollars in taxes? Here, just auction off a few of my homes, and keep the change...”



2.Willie Nelson
Source
This country singer who has written more than 2,500 songs and released close to 300 albums. That's quite a lengthy resume, and when his 1990 tax troubles were brought out into light, they shined to the tune of $16.7 million dollars! He allegedly settled for $6 million but never paid the amount. This caused all his possessions to be put into auctions. He later sued Price Waterhouse, claiming that they put his tax money in illegal tax shelters. This lawsuit was settled for an undisclosed amount. One possession he hid until his tax debt was settled in 1993 was his signature-covered original Martin N-20 Classical Guitar which he named Trigger. 


1.Wesley Snipes
Source
Wesley Snipes, as of December 9, 2010, the vampire hunter, Blade, will be serving 3 years in the McKean Federal Correctional Instition. His charge was failure to file federal income taxes for 3 years. The reason I see him as the one paying the biggest debt is not because of the amount he owes the government(which through my research I have found that no one really knows but Uncle Sam.) I have chosen him because he is serving time. No amount of money can compensate for time, because even though money can be earned and collected again, time is never refunded. It is a grim reminder that the ever-ticking clock is the worst punishment anyone can be dealt, because all the money in the world will never give this man his 3 years back with his family, friends and career. I wish the best for Mr. Snipes and his family.


All these people have been dealt a blow by the I.R.S. and our government. Their fame didn't save them, and they had to pay like normal citizens. Never forget that we should pay our taxes, no matter how much it pains us, even though it may not seem fair or just to us. Be sure to make certain your taxes are taken care of and in good hands, because when it comes down to it, you'll have to answer for your own tax debt.

When you file your online tax return, make sure it is with a reputable company, like Onlinetaxpros.com. We make it easy to file taxes online and look forward to helping you e-file your income taxes! Leave a comment if you know of any other celebrities with bigger tax debts or just want to give your opinion. Thanks for reading!

Please like us on Facebook: http://www.facebook.com/onlinetaxpros
and follow us on Twitter: @onlinetaxpros


Tuesday, June 12, 2012

Tax News for Our Military: Scam Targeting Soldiers

This pic should help any troops overseas know how much we appreciate you! source

The Huffingtonpost has been on top of the tax scams this week, and I decided to inform our servicemen and women of a tax scam that could affect them!

This scam involves people impersonating Department of Defense representatives(right down to the .mil e-mail address) and try to get you to send your financial information to a location in Florida. The main way they get you is by telling you you're eligible for additional money from your disability compensation.

There is no such thing as easy money, and if it sounds too good to be true, it usually is. If you send off your information, the thieves will not only steal your identity, but clean out your bank accounts, use your credit cards, apply for things like loans and other military-exclusive benefits, along with things like additional credit cards an other services.

The end of the article includes a list of things to help reduce your risk of identity theft straight from the IRS's mouth:
  • Don’t carry your Social Security card or any document(s) with your SSN on it.
  • Don’t give a business your SSN just because they ask. Give it only when required.
  • Protect your financial information.
  • Check your credit report every 12 months.
  • Secure personal information in your home.
  • Protect your personal computers by using firewalls, anti-spam/virus software, update security patches, and change passwords for Internet accounts.
  • Don’t give personal information over the phone, through the mail or on the Internet unless you have initiated the contact or you are sure you know who you are dealing with.
There really is no limit to what these con artists and thieves will do to get your personal information. The military and those that dutifully serve our country would be the last people I would have expected to fall victim to these attacks. This just further proves that no one is safe from the tyranny of the weak and lazy.

I have to say that what you fine men and women do for our country on a daily basis is more than I can gratify in a mere paragraph or article on this blog. Your life is regularly put at risk so that people like these scammers can prey on others, and the fact that citizens take you guys for granted is the worst shame we face. I don't see how the thieves can sleep at night, knowing they're stealing from the very people that protect them from foreign and domestic threats, yet they feel entitled to take from those very souls that would lay down their lives for their country.

You great people are a precious commodity, and show great discipline and honor putting your own dreams and aspirations aside for the good of our country. I personally thank all of you and feel a great sense of honor to be a part of this great country and the great people that defend it and die for it. To everyone in our armed forces and military, we salute you and wish great prosperity to your families and wish all those overseas a safe trip home to be with those that love you.

Full article from The Huffington Post can be read here

When you file your online tax return, make sure it is with a reputable company, like Onlinetaxpros.com. We make it easy to file taxes online and as always, hope you have a fun and safe Summer and look forward to helping you e-file your income taxes!

Please leave a comment if you want to honor any of our soldiers, fallen or still with us. You may also tell us if you know about any other scams you know about to help raise awareness!

Please like us on Facebook: http://www.facebook.com/onlinetaxpros
and follow us on Twitter: @onlinetaxpros

Monday, June 11, 2012

Electronic Tax Filing News Update: 2012 Tax Scams


Img Source
I noticed the most popular post on my blog was Electronic Tax Filing News Update: Cyber Criminals which has over one thousand views, much more than any of my other posts. This has led me to write again about raising awareness on your online saftey to make sure people know what to watch out for on the internet. This time I am covering Tax Scams and how they have become the biggest problem facing the IRS and you as a taxpayer.

 

The Dirty Dozen Tax Scams from IRS.gov

Here is a link to the IRS.gov site. They post a Dirty Dozen Tax Scams every year. Check it out for info on the most popular scams to watch out for, but with all the ways that people can scam each other, this list may not be all of them. It's always good practice to be extremely careful with your personal and tax information when filing taxes electronically.

Phishing and ID Theft Front Latest Tax Scams

First, I want to share with you a site I found called Scambusters.org. They are dedicated to keeping people safe from scams and post regularly on new methods people use to cheat you out of your hard-earned money. They posted about Phishing and ID scams as the latest Tax Scams, and give a very comprehensive list on what to watch out for. Check out this page to get the low-down and protect yourself! Phishing and ID Theft Front Latest Tax Scams from Scambusters.org
Here is an excerpt to show you just how cunning these scammers have become:
“Two of the big names in tax preparation have found themselves the target of tax scams in the countdown to the April 17 deadline (extended from the normal deadline of April 15) for filing returns.
Customers of both Intuit, producer of the market-leading Turbo Tax electronic tax preparation software, and H&R Block, the best-known name in brick-and-mortar tax preparation offices (as well as software) have fallen foul of a couple of mean but effective con tricks.

In addition, the IRS is warning of a big rise in the number of tax frauds in which crooks file false claims and pick up the rebates of their victims. “

Don't Scam Yourself!

finance.yahoo.com has released their own list: 5 Popular Tax Scams for 2012 and they list things that not only others may do to you, but what the IRS looks for whenever you file your own taxes, such as overvaluing charity and hiding income offshore. It's definitely worth a look to make sure you're not making mistakes that the IRS are very keen on.

No One Is Above or "Too Good" to Rip You Off

You might think that NFL football players wouldn't need to resort to scamming people since they make such high salaries, but you'd be wrong. This post from Huffingtonpost.com tells us about two former NFL players who were arrested for tax fraud! Here is a link to the article: William Joseph And Michael Bennett, Former NFL Players, Arrested For Tax Fraud.

In Closing

No matter what, make sure you do your research before you put any information on a website. There are so many greedy people out there who want your money at ALL costs. 

When you file your online tax return, make sure it is with a reputable company, like Onlinetaxpros.com. We make it easy to file taxes online and as always, hope you have a fun and safe Summer and look forward to helping you e-file your income taxes!

Please leave a comment if you know of any other tax scams that are not listed here so we can spread awareness!

Please like us on Facebook: http://www.facebook.com/onlinetaxpros
and follow us on Twitter: @onlinetaxpros

Tuesday, May 29, 2012

What the IRS wants you to do with your tax paperwork


Keeping tax records longer than 3 years can get crazy...
Now that you've filed your taxes, whether by electronic tax filing or by mailing your income tax return, what are you supposed to do with all your receipts and legal papers?


The Internal Revenue Service wants to to keep all documentation and copies of your returns for no less than 3 years, in the event of an audit or lien.


This includes wages, bills paid, receipts from credit cards and charitable gifts, checks that have been voided, invoices, records of mileage and any other records that helped you get a deduction or credit. Pretty much anything that helped you claim taxable or non-taxable income on your tax return should be kept.


There are documents you should keep longer as well. Anything regarding your real estate or home, transactions made on the stock market, accounts for retirement and any business property(rental or otherwise) should be held for capitol gains and losses which may be accrued later than 3 years.


In the event of an audit the IRS will want to review statements and receipts of income and expenditures, so keeping those handy in their own section of your tax records will be important. These documents will be seized in the event of a fraud investigation, so keeping your records easy to decipher and find will give you the best opportunity at leniency.


People who have to pay penalties, back taxes, and/or interest from a fraudulent return, tax evasion or simple tax return delinquency are subject to intense scrutiny beyond the 3 year limit that applies to average taxpaying citizens.


Be sure to burn or shred any tax documents you do throw away to avoid identity theft risks. Also remember to look at the document twice before you throw it away, so as not to accidentally get rid of pertinent tax records.


Please like us on Facebook: http://www.facebook.com/onlinetaxpros
and follow us on Twitter: @onlinetaxpros

Thursday, May 24, 2012

Bad Deductions You Shouldn't File Electronically or Ever!

All of my articles that have been about deductions and credits have been beneficial ones that will save you money and give you a great return. This time I have decided to list some deductions people have filed on their taxes that they shouldn't have. Included are reports of arson, drug trafficking, and a few others that should definitely show you that the Internal Revenue Service is serious about what you put down on your taxes, and they are looking.
Source for image
Hiring a person to burn your failing business down for the insurance money happens more often than you might think. To make it worse the greedy sneak not only collected his insurance money, but he pulled a stunt that most people wouldn't dream of trying. The man tried to deduct the money he hired the arsonist with on his taxes! This not only made him an accessory and a felon, but if he was audited he couldn't even present the hired hand's employment form. Do not try this unless you want to get caught.
Making sure your family has the best air quality possible is a noble effort, however futile it is with all the pollution we fill our atmosphere with every day. A man took this ideal and ran with it, so much so that he listed a deduction as “pure bubble.” The IRS agent who audited and inquired further about the man's efforts to make his home have the purest air possible was laughing so hard at this guy trying to deduct his purified air he waived all penalties, but not enough to put his deduction though, as it was still denied.
Being a drug lord is hard, but you're probably looking into the wrong line of work if you think the tax system of our Government is going to look highly on you claiming your drugs on your taxes. One entrepreneur listed a crop of marijuana as a deductible expense, and his honesty was not the best policy in this situation. His tax dollars were safe, but his cash crop and his property went “up in smoke” for lack of a better term.
It's common knowledge that the wedding industry is enormous, and extravagant. Being a 60 billion dollar industry means it's also very expensive. One cheap father had the brilliant idea to invite a few of his business clients to the wedding, which he attempted to use as leverage to write off his daughter's entire wedding as an entertainment expense for his business! This, to no one's surprise, was flagged by the IRS and he was forced to not only foot the bill for the wedding, but pay some hefty fines as well. Sometimes if you know they will say no, don't try it.
Your animals are special to you. They are even considered family by most. The Internal Revenue Service, however, does not consider your animals dependents. To some who have no children and only animals it may seem unjust, but having them under your care doesn't save you more on your taxes. It may suck you can't deduct that overpriced toy you bought them that they don't even give a second look to, but they're still your friends forever.
You may think a professional doing a procedure on your body for modification purposes may sound like something you can claim on your taxes, tattoos are an elective procedure. This prohibits you from using them as a deduction, and the IRS will not look too kindly on your personal forms of self expression. Yet another reason to think twice before you lay down under the knife or the needle.
In order to prevent these kinds of deductions going on your record and your tax filings, let Online Tax Pros make sure you qualify for everything you can claim, and step in to tell you what you can't claim. We are ready to get the most out of your return so your taxes don't have to be a scary situation like these peoples'. E file with us this tax season!


Please like us on Facebook: http://www.facebook.com/onlinetaxpros
and follow us on Twitter: @onlinetaxpros

Wednesday, May 16, 2012

The Difference Between Credits and Deductions

image source: http://www.mcnuttservicegroup.com/tax_credits.html
Many people may have never learned the difference between tax credits and tax deductions. The actual definition of a tax credit is something that reduces your actual tax amount that you have to pay. This is different from a deduction because a deduction only reduces your taxable income. This difference makes tax credits much more beneficial, and dollar for dollar the credit will be a better deal because it is directly subtracted from the tax owed. Here are a few tax credits that you may not know you qualify for.

The amount you paid for child care can be counted as a tax credit. The credit starts at thirty-five percent if your adjusted gross income is less than $15,000 and reduces to twenty percent if your adjusted gross income is more than $43,000. This goes to a maximum of $3,000 for one child and $6,000 for two or more children. The Internal Revenue Service requires you treat most home child care workers as employees of the household(one of the few exemptions to this rule are part-time babysitters under the age of 18). This credit is one of the most complicated credits to figure out, but nothing that is worthwhile is easy.

In order for students to recover costs associated with getting an education, there are two different credits that they can take advantage of: The Lifetime Learning Credit and the American Opportunity Credit. Only one may be used a year, so choose carefully. First, the Lifetime Learning Credit allows up to $2,000 for educational expenses enrolled in eligible educational institutions. A pursuit in a degree is not required to qualify for this credit. The American Opportunity Credit is a maximum credit of up to $2,500 per student, and is available for four years of eduction to those pursuing a degree. Anyone whose adjusted gross income is $80,000 or less or $160,000 or less for married couples filing jointly is not qualified for this credit.

These credits are great ways to reduce your tax that is due, and you definitely get the most bang for your buck if you take the time to find the right ways to save. Keep doing your homework and you'll continue to save, you can only see if you're qualified if you ask, so try this tax season to qualify for all the credits you can, because no one else will do it for you (for free at least!) and happy savings, Everyone!
Please like us on Facebook: http://www.facebook.com/onlinetaxpros
and follow us on Twitter: @onlinetaxpros

Thursday, May 10, 2012

Beneficial Tax Credits For Filing Taxes

someecards.com - I love you, my little tax credit. And I'll love you every tax season for the next 17 years.
Receiving a tax credit is almost as good, if not better than receiving money. Obtaining a credit can increase your refund or in some cases decrease your tax liability. There are a lot of tax credits out there, and here are a few of the more common ones you could take advantage of. Rest assured if you qualify for any of these credits, you can and should take advantage of them. Every little bit helps in this day and age, and they can be very beneficial to your return and your taxes in general.

First of all, the Earned Income Tax Credit is a credit that is refundable for the lower to middle class families and individuals who are working. The process will figure the number of children you have to claim, your earned income value, and how much you'll receive in credits if you do qualify for this refundable credit. Next, The Retirement Savings Contribution Credit may be able to be claimed not only if you're paying on a 401k or any kind of similar accounts used for retirement regardless of if you received matching contributions from your employer. Up to half of your contribution can be claimed if you qualify for the highest achievable level of the tax credit. Finally, the Credit for the Elderly or Disabled should not be overlooked or passed up. It's available to individuals sixty-five or older, or those retired and on disability that have taxable disability income from social security or any other type of government help. Using any of these credits can open doors for you, and allow you to save more than you thought you could. This all works towards getting more money in your pocket, as there are many bills, but so few dollars to spend on getting them paid.

Taking the time to search for deductions and tax credits can be very beneficial. They will allow you to not only save money, but also to help with the burdens of everyday expenditures. There are many deductions out there, and many credits as well that can give you a greater return or decrease your tax liability. Not everyone qualifies for these specific credits, but there are several out there. Everyone has a credit or deduction they can qualify for, you just have to search and ask and you can feel the accomplishment and relief of saving some money. Let Online Tax Pros help you find all that you can qualify for, giving you the best return you are allowed, and getting it you fast.

And our blog: http://www.onlinetaxprofessionals.blogspot.com
Please like us on Facebook: http://www.facebook.com/onlinetaxpros
and follow us on Twitter: @onlinetaxpros

Wednesday, March 28, 2012

Online Tax Filing: Why Electronically File Your Taxes?

E-file with us!
1986 was a year many amazing things came into being. The movies Platoon, Short Circuit, and Aliens were created, and revolutionized film. The Cold War was ended in 1986, and Mike Tyson became the youngest Heavyweight Champion in history. Truly though, the most monumental of course being when I was born. It was also the year that electronic tax filing came about. Like most great ideas, however, it was not until 2005 that online tax filing really gathered steam, with over half of all returns being filed electronically. Some of the great benefits include less paperwork, less time, and less errors have all contributed to electronic filing gaining more popularity each year.

OTP is on your side!
In our troubled economy and with everyone trying to go green and save what's left of our planet, any way to save some paperwork is a plus for the environment. Filing electronically eliminates tons of paperwork by having all the information available to type out on a computer screen, on to the internet, and finally off to the I.R.S. Saving our oxygen-giving trees by not using a forest worth of them to file our taxes gives our future generations more to look at an enjoy amidst the concrete jungle we have built around ourselves.

No dissassemble! No Dissassemble!
Time is considered the most valuable resource. It is one thing we are not able to replenish, and once you lose that time it can never be given back or returned. Electronically filing your taxes saves that precious commodity to spend on your life, or to further your business. Doing so online allows you to automatically check for time-consuming errors that would otherwise take much longer to complete. You can also save time because instead of normally waiting two months for a refund to come to you, filing online can allow you to get your return within two weeks. Even gas can be saved with your online return, as they can directly deposit it into your bank account of choice.

If you've never filed your taxes online before, let this year be the time you try it. Electronically filing can save you not only money and the headache of double checking for errors which may or may not be there, but also the precious commodity which is the ever-ticking clock: time. As with anything else, e-filing is the wave of the future, and the future is now. Try e-filing your taxes this year with onlinetaxpros.com!

Let OTP be your e-filing champions this tax season!
And our blog: http://www.onlinetaxprofessionals.blogspot.com
Please like us on Facebook: http://www.facebook.com/onlinetaxpros
and follow us on Twitter: @onlinetaxpros