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.

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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
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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!

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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!

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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!

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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.


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