As many of us prepare to file our federal income tax returns in the coming weeks, we should be looking for every deduction we can find and that we legally have coming to us.  For those who own a home, it can be the source of several different deductions.

Read on to learn some of the common federal income tax deductions related to home ownership.  Keep in mind that to receive these deductions you have to claim itemized deductions on Schedule A, as opposed to using your standard deductions. (more…)

Need Help with your Unpaid Taxes?

Complete the Free Tax Case Evaluation form below and an experienced Tax Professional will contact you to discuss your situation. Don't Wait -- Get Help Today!

The calendar has rolled into 2013, which means in the next few months you need to file your federal income tax.  Although this may not be the first time you have had to file, you may not remember all of the tax law changes that went into effect for the 2012 tax year.  Read on for a refresher on the most significant changes. (more…)

The Internal Revenue Service (IRS) has launched the Fresh Start Initiative, a program designed to help both individuals and small businesses who are behind on paying their federal income tax catch up on those tax payments. (more…)

While various groups call for tax reform at the federal level, where time spent preparing 2012 federal income tax returns is expected to cross 6 billion hours, the possibility of such reform happening is unlikely in the short term.  But things are different at the state level. (more…)

An option for borrowing money that has grown in use in recent years is a reverse mortgage.  But what is a reverse mortgage?  And what are the tax implications of exercising a reverse mortgage?

(more…)

Although it was not officially signed into law until the first few days of 2013, Congress and President Obama passed a measure, the American Taxpayer Relief Act of 2012, to avert the fiscal cliff and prevent the expiration of a large number of Bush-era tax cuts.

But now that the American Taxpayer Relief Act of 2012 has been passed into law and those Bush-era tax cuts are permanent, what does it mean to you?  Read on to learn more.

For more information about federal income taxes in general, please visit our web site’s “Tax Relief” page. (more…)

Every year millions of dollars in federal income taxes are paid to the Internal Revenue Service (IRS) that legally do not have to be paid.  This is because many people fail to capitalize on taking deductions against their federal income tax that they are legally entitled to take. (more…)

Federal income taxes have continued to be a much-discussed topic as we head into the final month leading up to the presidential election.  The topic gained a great deal of attention when Republican presidential candidate Mitt Romney stated earlier this month that over 45% of Americans do not pay any federal income tax. (more…)

The topic of federal income taxes continues to be a hotly-discussed topic in the race for the White House.

A video of presidential candidate Mitt Romney that was released on Monday shows him responding to a question about federal income tax cuts.  Romney’s key point in the video is that many people are not concerned about taxes because approximately half of those in the United States pay very little or even no federal income tax. (more…)

It’s mid-April.  In many parts of the country, that means a few more rainy days than normal and the last of milder temperatures before we move into the heat of the summer.  But it also means that the tax filing deadline for federal income tax has passed.

If you have filed your federal income tax and paid any tax owed, then you have nothing to worry about (and you can enjoy that nice weather I mentioned).  But if you have not taken care of your federal income tax for this year, there are some steps you need to take right away to minimize the damage.

Filing Your Tax Return

If you have missed the tax filing deadline, you should file your federal income tax right away.  A federal income tax return for most people who work a job or two and perhaps pay rent for where they live is not that difficult to complete (especially if they get a bit of professional help from a tax attorney).

But many people think that filing their tax return and paying their taxes are the same thing.  However, that is simply not the case.  If you owe federal income tax and cannot afford to pay it, you should still file your federal income tax return, as this will minimize the penalties the IRS charges for filing late.  A tax attorney can help you complete the filing process.

Paying Your Taxes Owed

I do not have to tell you that the IRS expects you to pay your taxes.  Once you have filed your tax return, you can determine how to address payment of any tax you owe.  If you have enough money to pay your tax, you should do so, as the longer you wait to pay any tax due, the more interest the IRS will charge on the balance owed.

However, if you cannot afford to pay the tax you owe, you should work with a tax attorney to evaluate the options you have, such as an installment plan or an offer in compromise.  This should likewise be done as quickly as is possible to minimize the interest charged by the IRS.

Contacting the IRS

While talking to the Internal Revenue Service (IRS) may not seem like a pleasant thing to do, especially if you have missed the tax filing deadline and believe you will get in trouble with the IRS, it can actually be helpful when trying to address taxes owed.  This will let the IRS know that you want to pay the tax you owe and are interested in working with them to address the situation.

Remember that talking to the IRS does not mean that you have to do this yourself.  A tax attorney can have this conversation for you.

Hire a Tax Attorney

In several of the steps above, I have mentioned working with a tax attorney.  Before you do anything else, it is generally a good idea to speak with a tax attorney.  There are tax attorneys who specialize in dealing with returns where someone has missed the tax filing deadline or they owe back taxes.  A tax attorney can help you prepare your tax return correctly, get it filed with the IRS, and work with the IRS to address any late filing fees, interest, or payment plans.  In some cases, a tax attorney may even be able to negotiate a reduced amount of tax owed.

Related articles

• Federal Income Tax Return Mailing and Filing Options (taxlawhome.com)
• Federal income tax significant events, Part 7 – Purchasing a Home (taxlawhome.com)
• Federal Income Tax Legality, Part 1: Voluntary Nature (taxlawhome.com)
• Self Employed Individual and Income Tax (taxlawhome.com)