Do You Agree With Rick Santorum Tax Reform Plan?

Rick Santorum is currently campaigning in Michigan and is harping on a tax reform plan that would definitely change the tax code.  His economic plan calls for slashing the corporate tax rate from 35 percent to 17 percent and installing a flat tax. This is definitely a lot different and more controversial than the other candidates. To learn more how the Presidential candidates tax plans would affect the deficit, click this link http://hereandnow.wbur.org/

Where is my IRS Tax Refund? IRS Refund Tool Down Again

It might take a little longer to get your IRS refund this year. The IRS tax refund tool that is accessible on there website is down again for the second straight day. The IRS issued this release from there website:

"We are aware that some taxpayers who have filed electronically and received an acknowledgement from the IRS are concerned when they visit "Where's My Refund" and are told that we have no information regarding their return. This is a temporary situation, and we expect to resolve the matter in a few days. At that time, taxpayers will be able to get an expected refund date when they visit "Where's My Refund."

This also means if you call to find out the status of your refund you are going to have to wait longer than normal. Therefore, it is in your best interest to wait atleast three weeks to call and find out the status of your refund, but in many cases do not be concerned becuase it is taking longer than that.

If you have any questions in regards to tax returns or need IRS or state tax help, give us a call at 888-965-3829 or visit us at http://www.wtaxhelp.com

What Happens if you Don't File your Return, the Dreaded "SFR"

Nobody likes recieving letters from the IRS, but if you don't file your return you can expect to get one of these letters.  When you earn income, for the most part it is then reported to the IRS. If you do not file your return for a year that you have income, the IRS will prepare a "substitute for return" (SFR).

A SFR is not a good thing as it includes income, determines the tax due, adds interest and a penalty for failure to file and does not include any expenses or deductions, such as mortgage interest, charitable expenses or doctor bills. Once it prepares a SFR, the taxpayer gets a bill and is expected to pay it.

 If you are self-employed and the IRS, you will most often find a major difference between taxable income and how much money you actually received. This is because the IRS does not take into consideration any of your expenses, such as mileage, office supplies, salaries and other expenses.

What to do if the IRS prepared a Substitute for Return for you?

You should file an original return that includes expenses and deductions. In most cases the balance that the IRS shows will be reduced if not eliminated and in some instances you might even get a refund. However, if the return is filed more than three years after its due date the refund will not be paid.

Once you receive a letter from the IRS do not throw it away or ignore it. Make sure to contact them or have someone else contact them on your behalf. Ignoring them will only cause further problems. The sooner you deal with your IRS problem, the quicker it will go away.

 Evan Wolf
Wolf Tax Consultants
1-888-965-3829

How To Select the Right Tax Resolution Company

The tax resolution industry has been under a lot of scrutiny as of late. Companies such as JK Harris and Ronni Deutch have given the industry a so called "black eye." Fortunately, not every tax resolution company is like these two and can provide you a very valuable service. The goal of this article is to help you decide what tax Resolution Company is best for you.

When looking for tax resolution representation, be suspicious of these types of companies. Companies that promise that you can settle for pennies on the dollar or what is also known as offer in compromise. In most cases, the taxpayer should have never filed the offer in the first place. The IRS in 2010 accepted fewer than 14,000 offers in compromise total. Evan Wolf founder of Wolf Tax Consultants explained, "We love nothing more than to get a successful offer in compromise accepted, however knowing when to file one is based upon thoroughly evaluating their financial situation." Also, be aware of companies that are charging you a lot of money for services that are not very complicated. Reputable companies should have a standard price for specific work and not base it upon how much they think you can pay. These types of companies also like to charge a very high retainer. Be careful paying for work that is not completed yet. These companies like to take your money and not do the work. Make sure to follow-up and keep in touch with these companies to make sure they are actually doing work on your file. Last situation to be leery of is the letters that you receive in the mail that you think are from the IRS, but in fact they are from a company trying to lure you in. Make sure who you call is a real company and they are not sending you to another company that you do not know or trust.

We know that you work hard for your money; therefore there is no reason to throw it away. However, by hiring the right company you can save a lot of money. The bottom line, no one can tell you what IRS settlement program you qualify for until they thoroughly review your financial situation. Make sure the company you call is not selling you false hope. No matter what situation you are currently in, if you have a company representing you or not, Wolf Tax will treat you fairly, give you an honest evaluation of your situation, propose a strategy and successfully execute that strategy.

If you need help or are ready to get started, give us a call toll free at 888-965-3829 or visit http://www.wtaxhelp.com.

"Survivor" Winner Richard Hatch wants to Reduce IRS Payment

Do you remember "Survivor" winner Richard Hatch. He was the first winner of the show back in the year 2000. He got into IRS trouble when he did not pay taxes on the $1 million he won. Hatch was ordered to pay 25 percent of his gross income to the IRS as part of his sentence for failing to comply with the terms of his release from prison.  Hatch is now asking the judge to reduce his pay because of his income.

You may ask, how does this relate to me?  Well, if you owe money to the IRS and you can't pay it in full you have options just like Richard Hatch. Richard Hatch is essentially in an installment agreement to pay back that he owes. He wants to enter into a lower payment which is called a partial payment installment agreement because of what he says is his income.

Just like Richard Hatch you have the ability to enter into an installment agreement or even a partial pay installment agreement with the IRS. To learn more about it give us a call at 888-965-3829 or visit us at http://www.wtaxhelp.com.

CP 90/CP 297 Notice of Intent to Levy

Notice: This is sent to inform you that the IRS will take collection action if you do not set-up. You may ask what kind of collection action can they take? The IRS can withhold salary, Social Security benefits, retirement benefits, bank accounts, real estate, business assets, etc.

Make sure to see if it is a CP 297A as this is more serious than a CP 90/297 because it says a levy has been issued and this can be on Federal reimbursements, retirement funds, employee travel costs, contractory payments, etc.

What do I do when I receive a CP 90/297/297A?

If you receive one of these notices make sure you respond immediately. You can either pay the money that is due, but for a lot of you this will be difficult. The other option is to get into one of many resolution options the IRS allows. These options include installment agreement, hardship status, offer in compromise, etc.

If I get one of these Notices who Can I talk To?

We advise you talk to the IRS at the number that is listed. However, the IRS can be intimidating and enter you into a deal you can't realistically afford. We at Wolf Tax can help get you into the best resolution possible. Give us a call at 888-965-3829 for a free confidential consultation.

What If I Don't Think I Owe that Much Money or the IRS Made a Mistake?

This is one of the few notices that allow you to file a request for an appeals hearing, but you MUST do this within 30 days of receiving the notice.