Author: Larry Weinstein Cpa

6 Strategies to Consider if you Have an IRS Tax Problem.

If you owe money to the IRS, you have many options legally available to you, to help you solve your tax problems.

Full Payment

The first option is the simplest and most straight-forward. You can simply pay off the outstanding tax balance. This assumes you have the resources to do so. You could either pay from current funds on hand or from borrowed funds. Once your account is paid in full, all collection activity will cease. Any outstanding liens and levies will be automatically removed. Unfortunately, not everyone can afford to make full payment. If you were able to make full payment to the IRS, you probably wouldn’t have a tax problem .

Installment Agreement

If you cannot afford to pay in full your past tax liability, you can request for an Installment Agreement. An installment agreement is effectively a loan from the IRS. There is no credit check although penalties and interest will continue to be charged until the balance is paid off. This will allow you to pay off your tax liability through monthly installments.

The installment agreement may pay all (Full Pay) or part (Partial Pay) of your past tax liability.

If your total tax debt is less than $25,000 the IRS may consider you for a streamlined installment agreement under which you must complete the payment of your tax within 60 months. This type of installment agreement typically does not require as much financial disclosure. If you cannot pay the amount within 60 months, you must make full financial disclosure of your income, expenses and assets. These Installment Agreements can be much more difficult to obtain.

You must file Form 433-A or 433-B (or both). The IRS will analyze your Form 433-A or 433-B and use the information to determine the amount you can pay monthly. Your monthly income is compared to actual expenses and the amount of expenses considered “allowable” by the IRS. These allowable expenses may be much lower than what you are actually paying. The IRS ultimately has the discretion to decide on the payment amount.

Offer-in-Compromise

In certain limited circumstances, the IRS has the authority to settle, or compromise, federal tax liabilities by accepting less than full payment. This is what is known as an offer-in-compromise. By making an offer-in-compromise, you agree to pay less than the full amount of the taxes owed by you. The IRS has the discretion to accept less than the full amount of taxed owed by you based upon doubt as to your liability (whether you actually owe the taxes) or based upon collectibility (you do not have the resources to pay the amount owed).

If there is no doubt about your liability or collectibility, but an exceptional circumstance exists, then the IRS may still consider an offer in compromise. To be eligible on this basis, you must demonstrate that collection of the tax will create an economic hardship or will be unfair and inequitable.

Currently-not-Collectible

Currently-not-Collectible status means the taxpayer does not presently have the ability to pay their tax debts. The IRS uses this status to protect taxpayers from hardships that can be caused by collection activity. To qualify for Currently-not-Collectible status, your allowable expenses must exceed or come close to exceeding your income. The IRS will also consider your assets before placing your account into Currently-not-Collectible status.

Once your account in placed in Currently-not-Collectible status, the IRS will stop all collection activity including levies and garnishments. The IRS will send you an annual statement stating the amount of tax still owed. Your account will be reviewed periodically to determine if your financial situation has changed and whether you still qualify to be classified as Currently-not-Collectible.

While your account is in Currently-not-Collectible status, the IRS will continue to add interest and penalties but it will not try to collect the taxes from you. When your account is placed in Currently-not-Collectible status, you must continue to file your returns each year to remain eligible for the status.

Bankruptcy

Bankruptcy proceedings discharge certain taxes including federal income taxes. Federal income taxes can be discharged in a Chapter 7 bankruptcy proceeding. Many penalties and other assessments can be discharged through a Chapter 13 payment arrangement. Payroll tax liabilities cannot be discharged in bankruptcy.

Statute of Limitations

The IRS does not have forever to collect the money that you owe them. They cannot chase after you for the rest of your life. There is a 10 year statute of limitation for collecting tax (6 years for assessments of tax or levy made on or before November 5, 1990).

This 10 year period begins to run on the day after the date of assessment. The statute is extended for the period of time you have a Bankruptcy filed and pending. The statute is also extended during the time you have submitted an offer-in-compromise and are waiting for an approval. This 10 year statute of limitation can be extended by mutual agreement if the agreement is made within the 10 year period.

If the IRS doesn't collect the full amount in the 10 year period, then the remaining balance on the account disappears forever. All collection activity by the IRS must stop at this time

About Author

Larry M. Weinstein, CPA, Certified Tax Resolution Specialist is the Director of the Nat'll Tax Practice for http://www.SolveMyTaxProblems.com, and has developed a 7 Step Proprietary Process known as, the “Strategic IRS Tax Problem Resolution Process” and is the author of “The 7 Things You Must Know Before Solving Your IRS Problems-Learn How to Solve Your Problem as Quickly and Painlessly as Possible.”, a copy of which is available at the website.

Article Source: http://www.1888articles.com/author-larry-weinstein-cpa-7888.html

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By: Damian Miles

If you want to be a Doctor, learn medicine. If you want to be a footballer, kick a football around. If you want to be a bus driver, learn how to drive a bus!

If you want to be rich, what do you do?

A lot of people when asked the above, will work harder at their job, or take a second job, or start a business.

All the above a good, but are not right. They are definitely putting the cart before the horse.

If you want to be rich, what do you do?

The FIRST step to becoming rich is to DECIDE TO GET A FINANCIAL EDUCATION.

This leads to two supplementary questions. (1) What is a financial education? (2) Isn’t that hard?

Answer One: I do not mean that you go out and get yourself a MBA, or any official financial qualification. What I mean is that you DECIDE HERE AND NOW that you will start to accumulate financial knowledge from any source and by any means, and that you will do this for the rest of your life.

Financial lessons are all around, all you have to do is decide to keep an eye out for them and learn them. If you have watched TV today, or read the paper, or even just, taken a walk, you will have seen many financial lessons.

Examples from my day so far.

TV: Holiday scams using bogus websites – research and write small article on this, email to friends and print out and hand to acquaintances, include a link back to my website. They get a helpful warning; I get increased visitors to my website.

Newspaper: Property prices are up in my area. How can I cash in on this? Find a rental property, and buy (clubbing together with acquaintances if necessary).

Walk: Local clothing store is having 50% sale. I go in and ask what profit margin clothing stores usually have. After a little effort they tell me. An interesting lesson.

Answer Two: No it is not hard at all. Why? Because you will take it one small step at a time over the rest of your life. One small step at a time, taken frequently leads up to an enormous distance. In the area of financial education this means an enormous education.

The more you have taught yourself about how money works the more money making opportunities you will see. Eventually, once you have taught yourself enough, you will see that your life is absolutely packed full of money making opportunities. And your financial education will also equip you to cash in on these opportunities. All you have to do is reach out and take that money!

When you know enough, making money becomes easy and second nature. Why remain poor when you can so easily become rich.

The pay off.

The biggest pay off to giving yourself a financial education, is that you will become both financially free, and time free.

Once you have accumulated enough money, you will know how to successfully invest that money. As soon as the income from your successful investments covers your living expenses, you will be financially free.

Financial freedom means that you no longer have to work; your successful investments are working for you. You will then possess the time and money to enjoy all the things that have ever wanted to do. No longer will you have to report to your office 40 hours a week (your money will be doing that on your behalf), but instead can report to the beach, the ski slopes, that art class you always wanted to take, or your back garden with a gin and tonic, or a shovel and pruning sheers.

With your informal financial education you will be able to nurture you wealth to keep you retired for the rest of your life.

So do you want to get yourself a financial education? I bet you do! Well DECIDE TO START RIGHT HERE AND RIGHT NOW.

Damian Miles is a life coach, NLP Practitioner and the author of Live Your Dream Life Today. Do you want to live the life of your dreams and start doing so TODAY? If so Damian could be the man to help you. To find out more visit Damian's website at http://www.liveyourdreamlifetoday.co.uk

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Author: Larry Weinstein Cpa

It's critical to know you rights when dealing with an IRS tax problem!

The mission of the IRS is to "Provide America's taxpayers top quality service by helping them understand and meet their tax responsibilities and by applying the tax law with integrity and fairness to all."

The Internal Revenue Service is responsible for collecting over 90% of all dollars collected by the United States Government. Collection of revenue is the core business of the IRS.

The IRS is an arm of the federal government and all IRS employees are federal employees. They are paid by the federal government to look after its interest - collection of revenues.

As such the collection process of the IRS is designed to extract the maximum amount of money for the government in minimum time from you.

Responding to the IRS

When you receive any letter from the IRS about your returns, it does not mean that you are going to jail. It is best if you start acting immediately, as many IRS letters trigger the running of statutory time limitations. If you do not act within the time period set forth in the letter, you may lose very important rights.

Taxpayer Rights

As a taxpayer you have certain rights when you deal with the IRS. The IRS must explain and protect your rights as a taxpayer throughout your dealing with them. If you are not sure, don't talk to the IRS directly. Any information you provide them may hurt your case at a later stage.

Right to Representation

You are not required to deal with the IRS in person. You have the right to be represented by an authorized person such an as Attorney, a CPA or an Enrolled Agent in your dealings with the IRS.

If you are in a discussion or audit and you ask to consult a professional, then the IRS must stop and reschedule the discussion, in most cases.

You can have someone accompany you at an IRS meeting. You may make sound recordings of any meetings with IRS examination, appeal, or collection personnel, if you inform the IRS in writing 10 days before the meeting.

How the IRS must Treat You

The IRS must treat you in a professional and respectful manner. The IRS must protect your privacy and confidentiality. If the IRS asks you for any information, you have the right to know why the IRS are asking you for information and how they will use it.

Keep copies of all correspondence with the IRS. You need not and should not provide original documents. Copies will suffice.

You have the right to know what steps the IRS will take if you do not provide them with the requested information. When you correspond with the IRS, it is generally a good idea to use certified mail. This will help you show that you have responded to the IRS within the required time.

You don't have to pay more than the correct amount of tax. If you cannot pay all of your tax when it is due, you can request to be permitted to make monthly installment payments. You can compel the IRS to waive penalties when you can show you acted reasonably and in good faith, or relied upon the incorrect advice of an IRS employee.

You can appeal any IRS decision on your tax liability and collection action.

About Author

Larry M. Weinstein, CPA, Certified Tax Resolution Specialist is the Director of the Nat'll Tax Practice for http://www.SolveMyTaxProblems.com, and has developed a 7 Step Proprietary Process known as, the “Strategic IRS Tax Problem Resolution Process” and is the author of “The 7 Things You Must Know Before Solving Your IRS Problems-Learn How to Solve Your Problem as Quickly and Painlessly as Possible.”, a copy of which is available at the website.

Article Source: http://www.1888articles.com/author-larry-weinstein-cpa-7888.html

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Author: Guest

Structured settlements have become a natural part of personal injury and worker’s compensation claims in the United States, according to the National Structured Settlements Trade Association (NSSTA).

Structured settlements have become a natural part of personal injury and worker’s compensation claims in the United States, according to the National Structured Settlements Trade Association (NSSTA). In 2001, life insurance members of NSSTA wrote more than $6.05 billion of issued annuities as settlement for physical injury claims. This represents a 19 percent increase over 2000.

A structured settlement is the dispersement of money for a legal claim where all or part of the arrangement calls for future periodic payments. The money is paid in regular installments—annually, semi-annually or quarterly—either for a fixed period or for the lifetime of the claimant. Depending on the needs of the individual involved, the structure may also include some immediate payment to cover special damages. The payment is usually made through the purchase of an annuity from a Life Insurance Company.


A structured settlement structure can provide long-term financial security to injury victims and their families through a stream of tax-free payments tailored to their needs. Historically, they were first utilized in Canada and the United
States during the 1970s as an alternative to lump-sum payments for injured parties. A structured settlement can also be used in situations involving lottery winnings and other substantial funds.

How a Structured Settlement Works

When a plaintiff settles a case for a large sum of money, the defendant, the plaintiff's attorney, or a financial planner may propose paying the settlement in installments over time rather than in a single lump sum.

A structured settlement is actually a tradeoff. The individuals who were injured and/or their parents or guardians work with their lawyer and an outside broker to determine future medical and living needs. This includes all upcoming
operations, therapy, medical devices and other health care needs. Then, an annuity is purchased and held by an independent third party that makes payments to the person who has been injured. Unlike stock dividends or bank interest, these structured settlement payments are completely tax-free. What’s more, the individual’s annuity grows tax-free.

Pros and Cons

As with anything, there’s a positive and negative side to structure settlements. One significant advantage is tax avoidance. When appropriately set up, a structured settlement may significantly reduce the plaintiff's tax obligations (as a result of the settlement). Another benefit is that a structured settlement can help ensure a plaintiff has the funds to pay for future care or needs. In other words, a structured settlement can help protect a plaintiff from himself. Let’s face it: Some people have a hard time managing money, or saying no to friends and family wanting to "share the wealth.” Receiving money in installment can make it last longer.

A downside to structure settlements is the built-in structure (no pun intended). Some people may feel restricted by periodic payments. For example, they may want to buy a new home or other expensive item, yet lack the funds to do so. They can't borrow against future payments under their settlement, so they’re stuck until their next installment payment arrives.

And from an investment perspective, a structured settlement may not make the most sense for everyone. Many standard investments can provide a greater long-term return than the annuities used in structured settlements. So some people may be better off accepting a lump sum settlement and then investing it for themselves.

Here are some other important points to keep in mind about structured settlements: An injured person with long-term special needs may benefit from having periodic lump sums to purchase medical equipment. Minors may benefit from a structured settlement that provides for certain costs when they’re young—such as educational expenses—instead of during adulthood.

Special Considerations

- Injured parties should be wary of potential exploitation or hazards related to structured settlements. They should carefully consider:
- High Commissions - Annuities can be highly profitable for insurance companies, and they often carry very large commissions. It is important to ensure that the commissions charged in setting up a structured settlement don't eat up too much of its principal.
- Inflated Value - Sometimes, the defense will overstate the value of a negotiated structured settlement. As a result, the plaintiff winds up with much less than was agreed upon. Plaintiffs should compare the fees and commissions charged for similar settlement packages by a variety of insurance companies to make sure that they’re getting full value.
- Conflict of Interest – There have been situations where the plaintiff's attorney has referred the client to a particular financial planner to set up a structured settlement, without disclosing he would receive a referral fee. In other cases, the plaintiff's lawyer has set up a structured settlement on behalf of a client without revealing the annuities are being purchased from his own insurance business. Plaintiffs should know what financial interest their lawyer may have in relation to any financial services being provided or recommended.
- Using Multiple Insurance Companies – It’s advisable to purchase annuities for a structured settlement from several different companies. This offers protection in the event a company that issued annuities for a settlement package goes into bankruptcy and defaults.

Benefits of Selling A Settlement

A structured settlement is specifically designed to meet the needs of the plaintiff at the time it’s created. But what happens if the installment arrangement no longer works for the individual? If you need cash for a large purchase or other expenses, consider selling your structured settlement. Many companies can purchase all or part of your remaining periodic settlement payments for one lump sum. This can boost your cash flow by providing funds you can use immediately to buy a home, pay college tuition, invest in a business or pay off debt.

If you’re considering cashing out your structured settlement, contact your attorney first. Depending on the state you live in, you may have to go to court to get approval for the buyout. About two thirds of states have laws that limit
the sale of structured settlements, according to the NSSTA. Tax-free structured settlements are also subject to federal restrictions on their sale to a third party, and some insurance companies won’t assign or transfer annuities to third parties.

When selling your structure settlement, check with multiple companies to make sure that you get the highest payoff. Also, be sure the company buying your settlement is reputable and well-established. And keep in mind that if the deal sounds too good to be true, it probably is.

About Author

David Springer is a consultant for Sovereign Funding Group. Sovereign Funding Group is an experienced, reputable company that offers convenient, no-risk services to help you with the selling of your deferred payments and business financing including structured settlements. http://www.sovereignfunding.com/

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By: Vikram Kuamr
At an early age of twenty-eight, Jim Toner went to join in the rewarding world of real estate investing. Equipped with the right attitude, he became successful in the business and has become one of the popular names in the industry. Jim Toner is now forty-five years old, married, and with two children. He is a fulltime investor for over forty years and has acquired millions in real estate holdings.

He believes in sharing his success with others specially the less fortunate ones. He is actively involved in national and international community services like the Salvation Army, Hope Lives Foundations, and an active supporter of Frank McKinney’s Caring House Project Foundation. This is one of the reasons why Jim is continually blessed in his business. He knows how to share what he has. Another way Jim Toner shares his blessings is by giving free workshops and seminars providing people with his expertise to equip them with the knowledge they need in the business of real estate investing.

Jim Toner's Wealth Builders free workshops are highly motivational with real information on investing in the local market. It offers a truly unique way of training and information making use of real situations, real events, and real people. The team is composed of real estate investors with varied lines of expertise which are all important in the real estate industry. The information on seminars could be accessed on-line through his website of the same name. This is the site Jim Toner created to assist those who were once in place like him before. Jim Toners Wealth Builders encourages those who would like to try the real estate investing business and even those who left the race for some reasons to come back.

There are other sites and people available to train you in the real estate industry, but you have to be very careful in choosing one. There are those who teach but have no experience in real estate business as they claim to have. They are certified hucksters who are giving unethical, unrealistic, and out-dated information. The best way to avoid such opportunistic people is by staying with or picking a trusted name in the industry.

Jim Toner got his inspiration after reading a book written by Charlie "Tremendous" Jones and believes that reading is one of the keys to success. He still continues to read and get the valuable experiences of different people. In his site, he recommends the top 10 books on his list of real estate enthusiasts and experts.

Real estate investors must know how to conduct themselves properly and be genuinely concern about their client. This is why Jim Toner has joined in together different lines of expertise of different people to teach the ethical way of real estate investing. As real estate investors, you are to help people with problems and not to take advantage of them. You too must become an all time problem solver but still accept the fact that you cannot solve everything. These concerns and many more are discussed in Jim Toner’s Wealth Building seminars and program to equip you with the needed details on different situations. Though it may be a short experience, you can learn wealth of ideas that would guide you on your way to become a successful real estate investor.

As one of Jim Toners Wealth Builders member, you’ll adopt special ways how Jim Toner holds successful business so check his site more often.

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Author: Larry Weinstein Cpa

How to Stop the IRS from Putting a Levy on your Wages or a Levy on your Bank Account

Getting a bank levy or a wage levy can be an unpleasant experience. However, there are steps you can take to keep this from happening.

Before the IRS sends a levy notice to you bank, employer or any other third party holding your assets, it will send you a letter 1058 - Final Notice of Intent to Levy and Notice of Your Right to A Hearing.

The letter will notify you of your unpaid taxes and that the IRS intends to levy to collect the amount you owe starting thirty days after the date of that letter. The IRS can levy your wages, bank accounts and other property.

Once you receive this letter, the most effective weapon you have to stop the IRS is to file Form 12153 - Request for Collection Due Process Hearing within 30 dates from the date of the letter.

In your Request for Collection Due Process hearing, you can also submit an Offer in Compromise or request an Installment Agreement. In your request for a hearing, you must offer an alternative, other than levy that would be acceptable to the IRS.

If you do not request for a Collection Due Process hearing, from day thirty one onwards the IRS is free to levy your bank accounts, wages and other properties.

If your request for a Collection Due Process hearing is made in time, the IRS will schedule a hearing.

This hearing is presided over by an Appeals Officer. The purpose of the hearing is to determine whether the collection activity by the IRS is appropriate.

The Appeals Officer is independent from IRS collection personnel and at the hearing must verify that the IRS followed all administrative and procedural requirements, determine if the proposed IRS collection action "balances the need for efficient collection of taxes with the legitimate concern of the taxpayer that the collection action be no more intrusive than necessary and consider all less intrusive collection alternatives such as an Offer in Compromise or an Installment Agreement which you may propose in your request for Collection Due Process hearing.

At the hearing, you can propose other ways to resolve the tax liability and also contest your liability for the underlying tax, as long as the liability has not been the subject of a previous Appeals Office determination or a final Tax Court decision.

While you are waiting for your hearing, the IRS will suspend all collection activities. If you fail to resolve your problem at the hearing the IRS will issue a Notice of Determination.

Unless you file a lawsuit in the United States District Court, thirty days after the Notice of Determination has been issued, the IRS can levy your wages and property.

Filing for a Collection Due Process hearing and/or a lawsuit in the United States District Court both extend the 10 year statute of limitation for recovery of tax dues.

If the deadline for requesting a Collection Due Process Hearing has passed, you can still request the IRS for an equivalent hearing using the same form - Form 12153 - Request for Collection Due Process Hearing.

An equivalent hearing, unlike a Collection Due Process hearing does not extend the 10 year statute of limitation for collection of tax debts.

Also the IRS may levy while you are awainting equivalent hearing.

There is no right of appeal in any court against the decision of the IRS in an equivalent hearing.

About Author

Larry M. Weinstein, CPA, Certified Tax Resolution Specialist is the Director of the Nat'll Tax Practice for http://www.SolveMyTaxProblems.com, and has developed a 7 Step Proprietary Process known as, the “Strategic IRS Tax Problem Resolution Process” and is the author of “The 7 Things You Must Know Before Solving Your IRS Problems-Learn How to Solve Your Problem as Quickly and Painlessly as Possible.”, a copy of which is available at the website.

Article Source: http://www.1888articles.com/author-larry-weinstein-cpa-7888.html

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Author: Anthony Green

The lowest price a seller is willing to accept when selling a security (stock). This is the opposite of bid, which is the price a buyer is willing to pay for a security, and the ask will always be higher than the bid.

Ask

The lowest price a seller is willing to accept when selling a security (stock). This is the opposite of bid, which is the price a buyer is willing to pay for a security, and the ask will always be higher than the bid.

The terms "bid" and "ask" are used in nearly every financial market in the world covering stocks, bonds, currency and derivatives. An example of an ask in the stock market would be $5 x 1,000 which means that someone is offering to sell 1,000 shares for $5.

Bear

An investor who believes the market as a whole or a particular stock will decline. Bears attempt to profit from a decline in prices. Bears are generally pessimistic about the state of a given market. A bear is the opposite of a Bull.

Bid

An offer made by a trader to buy a security. The bid will specify both the price at which the buyer is willing to purchase the security and the quantity to be purchased. This is the opposite of the ask, which stipulates the price a seller is willing to accept for a security and the quantity of the security to be sold at that price.
An example of a bid in the market would be $25 x 1,000, which means that an investor is willing to purchase 1,000 shares at the price of $25. If a seller in the market is willing to sell that amount for that price, then the transaction is completed.

Book Value

The Book Value is simply the company's assets minus its liabilities.
In other words, if you wanted to close the doors, how much would be left after you settled all the outstanding obligations and sold off all the assets.

A company that is a viable growing business will always be worth more than its book value for its ability to generate earnings and growth.

Broker

A person that buys or sells an investment vehicle for you (securities, bonds, commodities, etc.,) in exchange for a fee, which is called a commission

Bull

An investor who believes the general market or a particular stock is going to increase in price.

Buy Back

The buying back of outstanding shares (repurchase) by a company in order to reduce the number of shares on the market. Companies will buyback shares either to increase the value of shares still available (reducing supply), or to eliminate any threats by shareholders who may be looking for a controlling stake.

Cash Dividend

Money paid to stockholders, normally out of the corporation's current earnings or accumulated profits. All dividends must be declared by the board of directors, and are taxable income to the recipients.

Long-term investors who want to maximize their gains should consider re-investing the dividends. Most brokers offer a choice as to whether you wish to reinvest or take cash dividends.

About Author

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