Are you looking for tax problem help? As we all know, the American economy is still stagnant and depressed, 2011 has been the toughest year for most individual and business taxpayers seeking tax problem help. Unemployment is still high, family incomes are lower, business income is slashed and retirement savings have significantly declined and the reality is many taxpayers are struggling to make ends meet. The American government has provided a variety of tax resolution programs to help you resolve your tax problem, and I urged you to take advantage of these tax relief options as well as other strategies to resolve your tax problem and get peace of mind.
We offer tax problem help for both individual and business taxpayers who have accumulated tax debt and have no ability to pay it. There are tax relief options that we can help you and resolve your tax matters once and for all.
Call and speak with Mike Habib, EA at 877-788-2937.
Tax problem help options such as a negotiated installment agreements, negotiated tax settlements and offer in compromise, partial pay installment agreements, non collectible status, audit reconsideration, IRS appeals, and other tax controversy resolution.
I will discuss one tax issue that’s usually overlooked by taxpayer, that’s AMT, alternative minimum tax. So here we go:
Alternative Minimum Tax (AMT): The Alternative Minimum Tax is another way of being taxed that taxpayers frequently overlook. An increasing number of taxpayers are being hit with AMT. The Alternative Minimum Tax (AMT) is a tax that was originally intended to ensure that wealthier taxpayers with large write-offs and tax-sheltered investments paid at least a minimum tax. However, unlike the regular tax computation, the AMT is not adjusted for inflation, and years of inflation have driven everyone’s income up to the point where more taxpayers are being affected by the AMT. Your tax must be computed by the regular method and by the alternative method. The tax that is higher must be paid. The following are some of the more frequently encountered factors and differences that contribute to making the AMT greater than the regular tax.
– Personal and dependent exemptions – are not allowed for the AMT. Therefore, separated or divorced parents should be careful not to claim the exemption if they are subject to the AMT and instead allow the other parent to claim the exemption. This strategy can also be applied to taxpayers who are claiming an exemption under a multiple support agreement.
– The standard deduction – is not allowed for the AMT and a person subject to the AMT cannot itemize for AMT purposes unless they also itemize for regular tax purposes. Therefore, it is important to make every effort to itemize if subject to the AMT.
– Itemized deductions:
Medical deductions – only allowed in excess of 10% of AGI (7½% normally). This difference will end when the AGI threshold percentage increases to 10% in 2013 (or 2017 for seniors).
Taxes – are not allowed at all for the AMT.
Interest – Home equity debt interest and interest on debt for non-conventional homes such as motor homes and boats are not allowed as AMT deductions.
Miscellaneous deductions subject to the 2% of AGI reduction are not allowed against the AMT.
– Nontaxable interest from Private Activity Bonds – is tax-free for regular tax purposes but some are taxable for the AMT.
– Statutory Stock Options (Incentive Stock Options) when exercised produce no income for regular tax purposes. However, the bargain element (difference between grant price and exercise price) is income for AMT purposes in the year the option is exercised.
– Depletion Allowance – in excess of a taxpayer’s basis in the property is not allowed for AMT purposes.
The AMT exemptions are phased out for higher-income taxpayers.
Tax problem help in areas such as Los Angeles, Whittier, Pasadena, Glendale, Burbank, Orange County, Riverside, Palm Springs, San Bernardino, Palmdale, Bakersfield, New York, New Jersey, Chicago, Houston, Phoenix, Philadelphia, San Antonio, San Diego, Dallas, San Jose, Detroit, Jacksonville, Indianapolis, San Francisco, Columbus, Austin, Memphis, Fort Worth, Baltimore, Charlotte, El Paso, Boston, Seattle, Washington DC, Milwaukee, Denver, Louisville, Jefferson, Las Vegas, Reno, Hempstead, Tucson, Nashville, Davidson, Portland, Tucson, Albuquerque, Santa Fe, Anchorage, Atlanta, Long Beach, Fresno, Sacramento, Mesa, Kansas City, Cleveland, Virginia Beach, Omaha, Miami, Oakland, Tulsa, Honolulu, Minneapolis, Pittsburgh, Colorado Springs, Arlington, Wichita, Birmingham, Montgomery, Tampa, Orlando