Articles Posted in IRS Tax Help

IRS TAX HELP – First Quarter 2009 Tax Update

While the new law tax changes in the American Recovery and Reinvestment Act of 2009 were the most significant developments in the first quarter of 2009, many other tax developments may affect you, your family, and your livelihood. These other key developments in the first quarter of 2009 are summarized below. Please call us for more information about any of these developments and what steps you should implement to take advantage of favorable developments and to minimize the impact of those that are unfavorable.

Retirement plan account participants, IRA owners, and their beneficiaries do not have to take required minimum distributions (RMDs) for 2009. The IRS has issued guidance clarifying that:

• If you would have been required to make RMDs for 2009 and you do make withdrawals in 2009 (that are not RMDs for 2008): (a) you might be able to roll over the withdrawn amounts into other eligible retirement plans; but (b) you must still include any previously untaxed portion of the withdrawal that you do not roll over in your gross income.
• No 2008 RMDs are waived, even for eligible individuals who chose to delay taking their 2008 RMD until Apr. 1, 2009 (e.g., retired employees and IRA owners who turned 70 1/2 in 2008).
• The 2009 RMD waiver applies to individuals who may be eligible to postpone taking their 2009 RMD until Apr. 1, 2010 (generally, retired employees and IRA owners who attain age 70 1/2 in 2009). However, the law does not waive any RMDs for 2010.
• If a beneficiary is receiving distributions over a 5-year period, he or she can waive the distribution for 2009, effectively permitting the beneficiary to take distributions over a 6-year period.

Getting maximum advantage from the homebuyer credit. In two separate pieces of guidance, the IRS has explained how to take maximum advantage of the credit for first-time homebuyers. The credit is the lesser of 10% of the purchase price or $8,000 for a qualifying 2009 purchase ($7,500 for a qualifying 2008 purchase). The credit is refundable, meaning you get it even if you don’t owe taxes. The credit has to be paid back for a home purchased in 2008 but generally not for one purchased in 2009. A credit for a 2009 purchase can be claimed on the 2008 return. In a news release, the IRS has explained the several different ways that individuals who recently purchased a home or are considering buying one in the next few months can claim the up-to-$8,000 credit for 2009 home purchases including getting an extension, filing now and amending later, amending a previously filed 2008 return or claiming the credit on a 2009 return where higher income in 2008 would reduce the credit under so-called phaseout rules. In separate guidance, the IRS explained how unmarried co-owners can get the maximum credit amount.

Get Tax Relief Today

It’s important for you to file your income tax return on time, even if you cannot pay. The IRS does not take delays lightly, so if you already know that you’re going to have a difficult time paying your taxes in full, you want to start exploring your options for tax relief as early as now.

When it comes to claiming tax relief, you need all the help that you can get so you can organize your paperwork and convince the IRS to possibly lower your tax debt, or agree to a setup where you can comfortably pay your tax debts over time. This is why getting the assistance of a tax professional associated with tax relief negotiations is important.

Tax Court finds regs imposing time limit on request for relief from joint and several liability invalid Lantz, (2009) 132 TC No. 8

Mike Habib, EA Tax Relief & IRS Tax Help

The Tax Court has concluded that Reg. § 1.6015-5(b)(1), which provides that a spouse must request relief under Code Sec. 6015(f) no later than two years from the first collection activity against the spouse, is invalid.

Recession Offers the Best Opportunity to Obtain Tax Relief

Pasadena, CA –(PR.com) — The current financial crisis is the best time to get IRS tax help. Just recently, the IRS has announced that it will adopt a more humane approach to taxpayers who are currently faced with issues such as increasing medical bills, heavy dependence on the assistance of Social Security or even recent job loss. According to the Internal Revenue Service, these are the criteria that can make taxpayers eligible for certain tax breaks. The IRS is also willing to make certain adjustments for those who have problems with unfiled tax returns or unpaid back taxes.

IRS posts Q&As on the Making Work Pay Credit

Making Work Pay Credit: Questions and Answers, IRS Web Site

IRS has posted a number of questions and answers (Q&As) on the Making Work Pay Credit (MWPC) on its web site. They are grouped into four categories: general issues, Form W-4, new withholding tables, and economic recovery payments. The most widely applicable information from each of the four categories is summarized below.