Tag: credit repair

business taxes, Family Tax Issues, General Information, Self Employed, TAX DEBT RELIEF, Tax Reduction, TAXES

How Serious Is your IRS Letter?

Howard Tax Prep LLC

race
Has the IRS sent you a collections letter? How serious is that letter? Can you stroll to the phones, or do you need to break and run to the phones and call for help?

Listed below are the most common IRS collection letters that one may receive when they have tax debt. I’ve listed them in order from stroll to the phones (low detection on the IRS radar) to break and run to the phone lines & get help (requires immediate action).

CP14 – Casually stroll (No sense of real urgency).

CP501 – Put a little pep in your step (Take notice).

CP503 – Speed walk (Decide to do something).

CP504 – Start Jogging (things are getting very serious).
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Letter 1058/LT11 – (Final Levy Notice)—Run like you’re trying to lose weight. —act now or lose your collection due process rights (your right to a hearing and a stop of collection).

CP90/CP91 – Run like you’re trying to lose weight. Another form of Final Notice of Intent to Levy.

CP71 – 10 Day Final Notice of Intent to Levy. RUN LIKE YOU’RE BEING CHASED IN A HORROR MOVIE. Act now, you are out of time.

Although we’ve given you the basics, this is not an all-inclusive article. Should you have questions, need help with tax debt, business tax preparation, business entity creation, business insurance, or business compliance
assistance please contact us online, or call our office toll free at 1-855-743-5765 or locally in Chicago or Indiana at 1-708-529-6604. Make sure to join our newsletter for more tips on reducing taxes, and increasing your wealth.

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Business Strategies, business taxes, Family Tax Issues, General Information, RUNNING YOUR BUSINESS, Self Employed, TAX DEBT RELIEF, Tax Reduction, TAXES

HOW TO WRITE OFF YOUR 4TH OF JULY PARTY.

Howard Tax Prep LLC
Author: Trudy M. Howard

In our Chicago South Loop Tax preparation office, everyone enjoys a BBQ, and a good party. While we enjoy having a good time, we LOVE saving clients money through effective tax planning. Below are a few tips on how you can reduce your taxable income with your 4th of July party.

INVITE ALL STAFF & FEW FRIENDS: Invite your ENTIRE STAFF to the 4th of July BBQ to get a tax deduction. NON EMPLOYEES WILL NOT give you a tax deduction. For example, if you invite 15 employees & their family to a 4th of July picnic, and you invite 5 of your friends & family members you have a total of 20 guest.If your party cost $2,500 you can write off 3/4 or 75% (20 guest total, 1/4 friends 5/20) of the expense at 100%. $2,500 x .75= $1,875 tax deduction.

Per IRS PUBLICATION 15-B: “Food or beverage expenses related to employee recreation, such as holiday parties or annual picnics, aren’t subject to the 50% limit on deductions when made primarily for the benefit of your employees other than employees who are officers, shareholders or other owners who own a 10% or greater interest in your business, or other highly compensated employees.”

Schedule-button-nb INVITE POTENTIAL BUSINESS PROSPECTS: 1/2 of something is better than 0 of something. You can deduct 50% of the FOOD COST ONLY if you invite current or potential business customer, client, consultant, or similar business contact. Your food cost must be on SEPARATE RECEIPT to be tax deductible. You cannot deduct the cost of the fireworks display, chairs, DJ, etc.

Per IRS PUBLICATION 463: “As discussed above, entertainment expenses are generally nondeductible. However, you may continue to deduct 50% of the cost of business meals if you (or an employee) is present and the food or beverages are not considered lavish or extravagant. The meals may be provided to a current or potential business customer, client, consultant, or similar business contact.

Food and beverages that are provided during entertainment events are not considered entertainment if purchased separately from the entertainment, or if the cost of the food and beverages is stated separately from the cost of the entertainment on one or more bills, invoices, or receipts.”

Although we’ve given you the basics, this is not an all-inclusive article. Should you have tax debt help questions, need Chicago business tax preparation, business entity creation, business insurance, or business compliance assistance please contact us online, or call our office toll free at 1-855-743-5765 or locally in Chicago or Indiana at 1-708-529-6604. Make sure to join our newsletter for more tips on reducing taxes, and increasing your wealth.

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BUSINESS CREDIT, Business Strategies, business taxes, Family Tax Issues, General Information, Self Employed, TAX DEBT RELIEF, Tax Reduction, TAXES

Owe the IRS? Find out what your credit report tells them.

Howard Tax Prep LLC

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Author: Trudy M. Howard

In our Chicago tax debt office you’ll often hear me say “the IRS is worse than the FBI.” Of course this is simply my opinion (based upon years of research, tax debt cases, education, and government documents), but if the IRS isn’t worse than the FBI, they surely are a close 2nd!

When I tell you that the IRS can find out anything,  I mean they can find out anything (except for your blood type, but I’m sure that’s pending)! The IRS has access to systems that you wouldn’t believe existed. For example, did you know that the IRS receives a weekly file of new movers? It’s true. “The United States Postal Service (USPS) provides an address update product — the National Change of Address Linkage (NCOALink), and the IRS receives a weekly NCOALink file from USPS. The file contains all of the reported changes of address in the United States for the week.” Not only does the IRS use this system, along with several others, the IRS also has the authority to pull a debtor’s credit report! Keep reading to see what your credit report tells the IRS.

Schedule-button-nbor click here to call us 1-855-743-5765.

There are 6 key things that an IRS collections representative is looking for when they access your credit report.

  • Previous residences along with old/current employers.
  • Other lien holders to see how much you owe, and how much you’ve paid.
  • Property that may not have been disclosed during your collections interview.
  • Leads to hidden assets by identifying other creditors.
  • Financial institutions that you have done business with in the past and currently.
  • Entities and associations with foreign banks and corporations.

Hopefully, by viewing this list you see that it is important to disclose all financial information when dealing with the IRS. Once you submit all of your financial information,  Howard Tax Prep LLC, located in the South Loop of Chicago, can help you with an IRS tax debt settlement, a tax debt payment plan, removal of tax lien, and IRS wage garnishments in Chicago, and all 50 states.

Although we’ve given you the basics, this is not an all-inclusive article. Should you have tax debt help questions, need Chicago business tax preparation, business entity creation, business insurance, or business compliance assistance please contact us online, or call our office toll free at 1-855-743-5765 or locally in Chicago or Indiana at 1-708-529-6604. Make sure to join our newsletter for more tips on reducing taxes, and increasing your wealth.

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Never miss another tip again! Join our newsletter, to receive tax reduction/wealth building tips delivered right to your inbox!

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