Category: Blog

IRS More Willing to Compromise Than Ever

In 2011, the IRS began to implement a series of policy changes known as the “Fresh Start” initiative. What does that mean to the ordinary taxpayer? Basically, the intent of the initiative is to make it easier for taxpayers to pay back taxes, avoid IRS liens, and get tax relief through an installment agreement. The threshold for filing a tax lien went from $5,000 to $10,000, except in certain cases. It’s also easier to remove a lien from your credit report once it has been released, (paid in full). In the past, a lien would stay on your credit report

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IRS Tax Return Audit: All You Need to Know

IRS Tax Return Audit

Taxpayers who fail to sub their taxes deter the country’s growth, marginalizing the inputs of a large number of fellow citizens who pay their taxes on time. The IRS therefore, must address and take actions on all cases of non-compliance. Among others, conducting a tax audit is one sure way of identifying defaulters; although it must be remembered that the selection of a tax return for examination does not necessarily imply that the taxpayer has defaulted or has been dishonest at the time of filing. More often than not, tax returns are randomly picked for audit and the purpose of

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Employee Shared Responsibility Provisions: An Overview

Employee Shared Responsibility Provisions

Employer shared responsibility provision, also known as “the pay or play provision” or “the employer mandate”, came into effect on 1st January, 2015. Under the provision, all Applicable Large Employers (employing 50 or more full time employees), also known as ALEs, are required to either pay their employer shared responsibility (ESR) dues to the IRS, or provide an essential coverage that is “affordable” and offers the “minimum value” applicable, to their full-time employees and their dependents. Who is an Applicable Large Employer? Employers are assessed and qualified as an ALE depending on the number of full time employees working for

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Received 5591, 5591A or 5596 Letter from IRS? Here’s What to Do.

Received 5591, 5591A or 5596 Letter from IRS?

Every year, the IRS sends a large number of reminders in the form of letters (numbered 5591, 5591A, or 5596) to taxpayers who received discounts on their health insurance premiums, but failed to file their tax return along with Form 8962. The purpose of this form is to reconcile the Advance Premium Tax Credit (APTC) with your Premium Tax Credit (PTC). This post is designed to help you understand what APTC and PTC are and why the IRS sends letters 5591, 5591A or 5596. Premium Tax Credit (PTC) A PTC is financial assistance given to taxpayers who enroll or whose

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How Does the IRS Select Tax Returns for Audit?

Many of our clients feel as though they have an IRS target on their back.  Once the IRS has them in their sights they begin to attack and won’t let up.  Why do some taxpayers have to go through this year after year?  This post gives insight how the IRS selects individuals and companies for audit. The IRS uses a variety of methods to select returns for review: One of the ways the IRS selects tax returns for audit is by obtaining information about individuals or companies that promote or participate in tax avoidance transactions. One typical example of these transactions

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Education Credit: All You Need to Know

Education credit enables people to afford the increasing costs of higher education by reducing the amount of tax owed on their overall tax return. If you’re paying for higher education, the US government grants you aid in the form of an education credit that reduces your tax liability. In other words, the education credits that you receive are adjusted against the tax you owe to the IRS. The best part is that if the credit you receive reduces your tax liability to less than zero, you become eligible for a partial refund, provided you fulfill other requirements. Types of Education

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Tax Exemption on Home Sale Gains: FAQs

Tax Exemption on Home Sale Gains

Whether large or small, tax exemptions are a welcomed relief for taxpayers. Ironically, many people are either unable or unaware of the tax exemptions that may apply to them, and miss the chance to take advantage of these savings. In this blog post, we’ll answer some of the most commonly asked questions about one benefit in particular: home sale gains. Let’s look at the tax exemption gains driven by the sale of a house. 1. What are the requirements? To be eligible for a partial or full tax exemption on the gains from the sale of your home, you must

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Military Tax Tips FYI. Uncle Sam’s tax breaks for YOU!

While nothing can truly compensate for the dedication our military men and women give our country, there are a few tax benefits people in the US Armed Forces get from Uncle Sam as a way of saying ‘thank you’ for your service. Too often these benefits go unused because almost no one has less time to research tax benefits than military personnel, especially if they are not working with a tax professional knowledgeable in this area. If you or a member of your family is part of the US Armed Forces, make sure your tax professional knows the cost saving

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Tax Lawyer Nick Nemeth Offers Tips on Your Taxes If You Receive Social Security Benefits

Tax lawyer Nick Nemeth offers some great tips that can help you with your taxes if you receive social security benefits. If you are a recipient of social security benefits, a portion of these benefits may be taxable. According to attorney Nick Nemeth many people have questions about their Social Security benefits. This area of tax requirements can be confusing. The following tips from the IRS can help you evaluate whether you owe taxes on the benefits that you received during the year. These tips can also help you identify the best method to file the tax return. Any social

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Do You Need to File a Tax Return for 2014?

The IRS tax filing requirements can be very complicated, and Dallas Fort Worth attorney Nick Nemeth often sees clients who have ended up in a dispute with the IRS. The tax code is so complicated that it can be difficult for someone to even determine whether they need to file a tax return for 2014 or not. In some cases it would be beneficial to file a tax return for 2014 even if you have no legal requirement to do so, in order to get a refund and take advantage of certain tax credits. The Law Offices of Nick Nemeth

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