As Americans continually search for tax relief they can too easily allow themselves to become victims of tax scams. In order to make the most of your tax relief options this year keep the following points in mind when it comes to protecting yourself against tax scams.

There is a concept of tax scams and other types of scams called “phishing”. This refers to email marketing that is unsolicited, pointing the user to a bogus website. The problem is that the email and the website can look official, creating confusion and inviting the user to enter personal information which is used for nefarious purposes. Well meaning Americans who are looking for help with tax information can unwittingly provide valuable, personal information that opens up the window to tax scammers.

In order to avoid this tactic keep in mind that the IRS will never contact you through email asking for any kind of personal information. The IRS will not contact you electronically at all either through text messages or other types of electronic communications. If you are ever approached in this way it is important to report the fraudulent actions to the IRS to help prevent further victimization.

Another scam rising in popularity is the concept of money being given away by the IRS or supposed money owed to you through social security. These scams often come in the form of a paper advertisement such as a flyer and are dispersed in low-income communities where people are desperate for money. Targeted populations often include older people who are easily conned into believing that they have the right to some type of government stimulus money.

These scam artists work by building false hopes based on making outrageous claims of government money ‘owed’ due to misquoted federal aid programs. These scams also revolve around false promises of a social security credit or rebate, which, of course, is non-existent.

Some fraudulent tax preparers make it a point to victimize taxpayers by offering tax benefits based on inflated or falsified information. If the taxpayer signs the returns with any kind of inflated information in hopes of getting some tax relief there is a hefty $5,000 penalty that results from intentional misinformation.

Choosing to include income that was not actually earned in order to try and make the most of potential tax credits is becoming a more popular way of seeking tax relief in a fraudulent manner. When taxpayers choose to exploit the system in this way, they end up being hit with penalties for falsifying information, being required to pay back all refunds along with additional fines. In some cases taxpayers may also face legal consequences such as prosecution, which may even, be on a criminal level, depending on the level of intentional misinformation.

When preparing for the 2014 tax season make sure to work with a well qualified, tax preparation service and take care of avoid all appearances of misrepresentation of IRS agencies. Remember that many forms of false advertising and misinformation are run by scam artists who prey on those who are easily led to believe things that are too good to be true. Report any knowledge that you find concerning tax scams in order to help less informed, and therefore more vulnerable, parts of the population be more protected from this type of victimization.

There are several types of debt you encounter-mortgages, credit card debt, auto loans, and even personal loans. Then, there’s the IRS Debt-something that the agency is authorized to collect by whatever means necessary. Once the IRS has placed you in their collections list, you are set to face these actions-bank account seizures, property liens and levies, wage garnishment, and asset seizures. If you don’t act on it, the IRS will definitely get ugly.

To avoid this, you should have a tax debt relief mindset, that is, a combatant mindset. Why? The IRS is the least caring, patient or compassionate. If it places you on its “get money from” list, you should accept that you are now the enemy and they have waged war on you. When the IRS sees your name, they will do whatever it takes to collect from you. This starts with automated notices, then it gets more intimidating and threatening as the bills pile up.

But in a democracy, you have your rights as a taxpayer. Tax debt relief is one of them. However, you must keep in mind that informing you of this right is the last thing an IRS collection agent will consider. You should know what to do and know it well.

Before anything else, you should have the right combatant attitude. As IRS agents would only care less if your life ends up a big mess after this war, you should fight back. Your first step in obtaining tax debt relief is knowing and understanding the rules of engagement-that is getting pointers from a retired IRS agent or tax professional, who can guide you through the process.

One form of tax debt relief is the IRS Statute of Limitations, which taxpayers can use to resolve this matter of paying and settling back taxes. This statute sets a time period to review, analyze or resolve taxpayer and/or IRS issues. In effect, this means that the IRS has only a certain period to assess, credit, refund and collect taxes. Going beyond this period, the IRS can no longer accommodate refund requests, assess additional taxes, and most importantly, collect. This Statute has certain time limits for assessment, refund and collection.

This Statute gives the delinquent taxpayer instant tax debt relief. It states that the IRS is given a certain time limit, say ten years, to collect from the time the back taxes were assessed. If they haven’t done so beyond that time, you’re off the hook. This and other types are available to you. The point is, you should not lose hope. You still have a range of options in this war.

This means that you don’t have to fear the IRS agent knocking on your door or trying whatever means necessary to pin you down. You only need to know how to fight back. This can be done if you know those weapons in your arsenal-tax debt relief options protected by law. You have the right to a worry-free life.

The term kiddie tax identifies the age in which kids become an individual tax entity separate from their parents for the purposes of calculation of taxes on investment income. Right from birth to the age of fourteen, children might earn investment income of up to double the standard dependent deduction. They are supposed to be taxed on the basis of their tax rate, usually around ten percent. Any sort of investment income above that threshold, would be taxed at the presumably higher tax rate of the parents.

After the age of fourteen, all the investment income has been taxed at the lower rate of the child. The Congress has officially extended the childhood age to 18, for the purpose of calculation of tax on the investment income. As per the Tax Increase Prevention and Reconciliation Act of 2005, passed in May 2006, the age was extended to eighteen. A child is said to be eighteen for the total tax year in which the child turns eighteen. For the year 2006, the threshold in terms of investment income has been fixed at $1,700. The amount is taxed at child’s rate. Anything, which is in excess of this amount, is taxed up at the rate of the parents.

Kiddie tax applies only in case of investment income and not earned income, therefore, teens with jobs would pay income tax as according to their rate and not their parents’. Also, individuals who get married before the age of eighteen are presumed to be adult as they are not children anymore, and in case if filing jointly, they file according to their own rate.

As it is, the change tends to put the future of the accounts set up under the Uniform Gifts to Minors Act, or the Uniform Transfers to Minors Act. As per these acts, the individuals might place the assets in the accounts for benefit of a child, yet retain control over the assets as trustee as long as the child doe not reach the age of majority, generally eighteen. The tax advantage of moving assets to the name of a child might now be deducted as income invested in such accounts over $1,700 would be taxed at the rate of the parent.

With the capital gain rate of five percent, in the ten percent or fifteen percent tax bracket, the parents falling in the higher brackets might still wish to consider the transferring of appreciating assets. However, parents who feel they had the years in between fourteen and eighteen to sell the assets in the portfolio of the child and potentially pay up no capital gain tax have lost the option.

One of the major fears of an average American, is when taxes are concerned is that of an IRS tax audit. Over the years, people come up with a number of ways of avoiding a tax audit. The following are a few simple tips, in order to avoid a tax audit. Now, even when we are confident that you can file your taxes properly, you keep wondering as to when, you would re required to receive a phone call, as well as a letter from the an IRS representative. So, you might worry a little bit lesser this tax season.

A few types of taxpayers have been much likely to be audited, than in case of others. They involve taxpayers who earn in excess of 200,000, small business owners as well as self-employed taxpayers. It also includes taxpayers who might be hiding the taxable income overseas. A major catalyst, in regard to tax audit is by having high deductions, in comparison with the other taxpayers within the same tax bracket. As it is, one can account for high deductions, caused due to attachment of a receipt or in other cases,Now, since the documentation to the tax return. While an average deductions might make way for an audit, being proactive, as well as reduction of the chances of getting audited. Do not be afraid to deduct the expenses, which tend to be legally deductible. Instead, you can make sure that you can justify the sum of your deduction. You should write checks wherever possible and keep up a copy of the cancelled checks in your records.

You can make use of tax preparation software. You can take up Tax prep soft wares, such as TurboTax, which eliminate the calculative errors, which may lead to an audit. As it is, they may also do a study of the tax return to let you realize that any items which could trigger an audit. You should be aware that tax software can not completely eliminate the chances of getting audited as the IRS computer systems audit a number of random taxpayers each year.

You can make use of a reputable tax preparer. As it is, you may not have an idea, as to what kind of reputation a particular tax preparer has made up with the IRS. Make sure that your tax preparer must be experienced with the filing of the kind of return, which you need. You may find out about the audit record at the preparer.

It is illegal and unlawful not to pay taxes, every citizen of a country is expected to pay a share of tax. The purpose of complying with the rules of taxation actually has a noble endpoint. Although sometimes it make seem as though taxes are a way for the government to squeeze the hard-earned money from the general public. It still remains true that taxes assist a nation in creating a stronger society and providing reliable services to the people.

The taxes we pay and are collected by the government serve specific purposes but basically are used to finance and fund many institutions and agencies. Companies, people with lots of businesses and people who have high monthly or yearly salaries are commonly demanded to pay taxes. They are the ones who are obligated and intentionally pay their taxes. Nevertheless, taxes are supposed to be paid by all members of the society. So even the poorest member of the nation happens to contribute in the taxation system. There are basic products and commodities which are laden with tax percentages. In fact, some issues pertaining to the high price increase of the commodity, products and services are attributed to the implementation of VAT or Value Added Tax. This is the unintentional paying of taxes.

Nobody in the society is exempted from paying taxes. Through the government-collected taxes, institutions are provided with funds in order to work and operate for the welfare of the nation’s citizens themselves. A few of these institutions supported by the taxes we pay are public schools, public hospitals, orphanages and public law offices.

There are people working for the government offices, and agencies, their salaries are coming from the collection of taxes. Among these government employees who are also working for the benefits and services of the nation are public teachers, policemen, public doctors, public nurses, public hospital staff, firemen and many other public services.

Taxes are important to be paid so that reliable public buildings, roads, hospitals, schools and shelter for homeless people are built and constructed. Taxes also finance and allot required funding for any repair and reconstruction of these public infrastructure. A part of the collected taxes is allocated for the basic necessities of the children in the orphanages. The nation’s security is also provided for by the taxes we pay. Part of the tax allocation goes to the fire and police departments. The country’s defense is also made possible by taxes which fund the arms, supplies and machineries of the army, air-force and navy.

The cleanliness and maintenance of the public facilities are also financed by the taxes: from the cleaning of roads to the proper water treatment to the construction of streetlights to the removal of wastes and trash.

Public hospitals get their medical tools, equipment and supplies through the taxes as well. Free health supplies and services are made possible through the taxes paid by a country’s citizens such as immunization shots and medical consultations in health centers. When calamities suddenly happen, relief goods are distributed to the affected people through tax funding.

There are in fact a lot of other beneficial projects and activities which are made possible by taxation including sectors of agriculture, energy and commerce so it is important that we all pay our tax dues.

There are always ways to try and save money and one of those ways is often overlooked by many homeowners and that would be property tax. Anyone knows that your property tax is based upon how much your home is supposed to be worth. In today’s economy a lot of homes are going down in value and some may not know it but you can apply to get your property taxes lowered. The way in which the tax is lowered is going to vary from state to state but below is a basic guideline for you to at least get a start.

First off, don’t sit there and think that the tax man is going to be the nice guy and come by and offer you a way to lower your property tax. Come on, you aren’t going to find the nicest people in the world of collecting taxes. We all know where they stood back in the days of Jesus even. So as the value of your home continues to drop you need to do something about continuing to pay the same high property taxes, because no one else is going to do it for you. You’re going to have to fight this battle on your own.

You will need to get yourself educated. When it comes to this kind of taxes it is really important that you are aware of the housing market and the situation that it is in, especially in your own area. You need to find out how much homes like yours are selling for in your immediate city and even on the block that you live in. You will need to put together some sort of record of the prices of real estate in the area as evidence to support your claim that your property taxes need to be lowered.

Next you need to get in touch with a local property tax assessor. You should ask them what the criteria is that they use to come up with how much you home is worth. If anything that they say doesn’t seem to be in line with what the current market is showing then you need to challenge it. Make sure all the details that you have on your home is correct. It’ not very uncommon for an assessor to make an estimate on your home about features you may not even have just to inflate the value.

You also should talk to a local real estate agent. You can get an official valuation done on your house by them. Also make sure to ask them for evidence of the sale prices of homes that are similar to yours that have been sold in the past 6 months. It is very important to find houses that are very similar to the one you own and that have seen their values drop. Make sure to do a report that includes all of the information that you get from the agent.

Once you have gathered all of your information you will then need to make an appeal at the property tax office. You will need to be ready to answer questions about your property and in relation to the appeal. They are going to do everything they kind to find a way not to lower your taxes.

With the addition of solar federal and state tax incentives and rebates, the average consumer can shave 50% off of their initial solar installation costs. A more complete list of the state incentives can be found on the DSIRE website. Here are a few things you should keep in mind when going through the application process.

Federal Tax Incentives

At the federal level, federal tax incentives have been extended another 8 years as part of the American Recovery and Reinvestment Act.
· A 30% tax credit is available for residential and commercial installations. As of 2009 and 2010, the money is actually a grant for installations beginning before Dec 2010 and implemented before Dec 2016.

Solar America Initiative

The US Department of Energy is enacting an initiative to develop solar technology by creating an incubator which invests approximately 3 million dollars per company. The goal is to achieve grid parity through advancements in solar technology by the year 2016. Grid parity is achieved when the cost of a watt of solar electricity is equal to or lower than the cost of existing electrical grid electricity.

State and Local Initiatives

California is spearheading the advance of solar technologies by implementing a number of novel programs.
-San Francisco is allowing businesses to gain $10,000 in incentives and homeowners $6,000
-Berkeley allows homeowners to add the cost of solar installations to their property tax assessment and allows them to pay out of their electricity cost savings.

Tax issues can take up so much of your time that you would want to resolve them right away. Finding your way out of the complex taxation system could put you to days and weeks of sleepless nights. Look for 104 tax relief for your issues on property tax. Get information and learn about how you can take advantage of 104 tax relief programs. You can refer to informative websites or consult with a tax professional to help you understand your options.

During times of hardship when you have to watch out for your expenses, you may find it difficult to pay for your tax liabilities. Be honest about your situation and take charge of your finances. There are programs that offer deductions to help ease your tax troubles. When you think that you are not able to handle the issue properly, look for a tax professional who can give you advice and offer solutions. There are good professionals who can assist you in forming a plan of action and figure out the best relief program. Do what you can to resolve the issue as soon as possible, before things get out of hand.

Find out if you qualify for tax relief. Get the necessary requirements and criteria. On your part, what you have to do is prepare your documents and records pertaining to your taxes, finances, and property. Make sure that your tax returns are up to date and properly filed. A tax professional can help you amend your tax returns, making sure that there are no errors and inconsistencies. A mistake on your return could get you disqualified for any of the tax relief programs. When you are ready with your documents, you can easily assess the situation and find out if you already have the requirements for getting 104 tax relief.

Gather as much information as you can from tax and finance websites, which can contain helpful tips regarding the available programs. Find out if there are any requirements specific to your area because these programs may vary per state. If you are in a financial bind, you should not hesitate to look for assistance especially when it comes to taxes. Instead of getting depressed about your situation, take charge and develop a plan. For all you know, you could be eligible for deductions and programs. Relief could be just around the corner if you are aware and know where to look.

The increase in property taxes across the nation is only one symptom of the ongoing financial crisis the world has been in since 2008. Many homeowners nationwide have suffered a vicious cycle. They lose their jobs, struggle for a while, and eventually foreclose on their homes. Multiple foreclosures mean that cities and states don’t get the property taxes they need flowing into their coffers, and they experience a budget crisis themselves as a result. These cities and states then increase property taxes on the remaining homeowners, which then puts even more strain on people who are already struggling to make ends meet.

If your’e one of the many suffering under the mounting strain of bills, mortgages, and taxes, you may want to consider your financing options. Rather than paying thousands in penalties and late fees, you may want to finance your taxes to provide a little financial relief to you and your family. Here are three tips for financing.

1. Understand the consequences of not paying your property taxes.

Unpaid taxes lead to a tax lien. A tax lien essentially means that whomever you owe taxes to has a legal claim on your property. In the short term, having a tax lien placed on your property means that you’ll suffer from bad credit and have trouble financing any major new purchases, such as a car. In the long term, a tax lien means that your home can be sold out from under you in order for the city or state to collect on the taxes you owe.

Meanwhile, the longer you wait to pay your taxes, the more the late fees start to build up. By the time you finally pay them off, you may end up paying much more than you originally owed thanks to the penalties and interest fees. By the time you finally pull together the money you need to pay your $10,000 property tax, you may end up owing another $4,000 or more in fees.

2. Find a reputable property tax loan company to help you.

Fortunately, there is a way out of the tax dilemma. There are lending companies who specialize in paying off taxes and related late fees. You’ll still be paying interest on a loan with the tax financing company, but the debt you incur will not mount as quickly as it would have in the hands of the tax assessor.

After the company loans you the money you need to pay off your taxes and late fees, it takes over your tax lien. Since the tax loan company will own your tax lien, make sure you do your homework and check into any complaints about the various tax loan companies you’re considering before choosing to do business with them.

3. Stay current with your loan repayments.

When you get a tax loan company to help you, make sure that you stay current with your loan repayments. Otherwise, because the company owns your lien, you could still lose your home. Don’t treat a property tax loan as the permanent solution to your problems; treat it as a stopgap measure that temporarily solves your tax problem as you get your financial feet under you again.

By following these three tips, you will be well on your way to recovering from your property tax crisis. Working with a reputable tax loan company will save you thousands of dollars as you resolve your financial problems.

SR&ED tax Credits continue to be a strategic method in which Canadian business can both stay competitive and at the same time take advantage of the governments non repayable grants. Most parties agree this is probably the most beneficial grant program in Canada, bar none.

Not only is the program applicable to almost every industry in Canada, but at the same time business owners and financial managers can compound the power of this program by financing their claim. Get cash for my SR ED claim now? Asks Canadian business. The answer is an unqualified yes.

Let’s recap some of the key aspects of the program as they relate to your ability to ‘monetize ‘your tax credit into real cash flow and working capital now. Also, let’s recap and focus on some current issues in your ability to access and maximize your SR&ED claim.

If you aren’t filing a SR&ED claim you certainly can’t finance one. The Canadian government, both federally and provincially reimburse billions of dollars annually to Canadian business in all industries. A few industries seem more tailors made than others for SR&ED claims, example: Software and information technology. But the reality is your firm can be a commercial bakery, a sign company, or an industrial manufacturer. The bottom line is that almost every industry is eligible in some manner.

Government grants SR&ED dollars in its own interest to allow Canadian companies to become more competitive and profitable.

Your claim of course needs to be prepared by a knowledgeable third party. In Canada this essentially is an accountant who is proficient in SR&ED or a third party commonly called a SR&ED consultant. In many cases some consultants specialize in only certain industries, which is a plus.

Recently changes in the entire SR&ED process can both help and hinder your firm in maximizing your total SR&ED credit. Naturally the larger the claims the more amount of cash that you can finance under a tax credit financing.

Canada Revenue Agency has instituted new forms for the claim. Forms are found online at the government website, and in some cases have dramatically simplified your ability to file and explain and back up your claim. For example, the new online from limits the overall technical description of our claim to only 1400 words.

In general almost 75% of claims are not fully audited, and are therefore approved and somewhat fast tracked for refund.

How do some of the new forms and rules affect your ability to finance your claim? When it comes to financing your SR&ED claim it is critical to work with an experienced, credible, and trusted third party. Claims are generally financed at 70% of their overall value. Therefore your ability to have your claim fully document, prepared by a credible third party, and fast tracked into the ‘non audit ‘75% of all claim range is a solid SR&ED financing strategy.

Naturally just because your claim might undergo a SR&ED audit does not mean it is not financeable. The reality is that your claim if it is strong and supportable will be approved and therefore can be financed.

We referenced that claims are financed at 70%. That simply means that the larger your claim you can receive immediately, on financing approval.70 cents on the dollar for your claim. You of course still receive the rest of the claim, less financing costs, when your claim is approved and funded by Ottawa

The entire SR&ED tax credit financing process is very similar to any other business financing. You should not approach it unlike any other financing your firm might contemplate – there is a basic application, which is of course supported by your actual technical claim. The SR&ED loan is collateralized by your claim, as we have stated. Typically a financing can be completed within a couple of weeks, which allows time for application, any due diligence that might be required, as well as documentation and registration of the claim.

If you are filing SR&ED claims in Canada you are among the 15% of businesses that are eligible for this non repayable grant – why not compound the power of that government benefit and consider financing your claim. Accelerate your cash flow and working capital and utilize those funds for any general corporate purpose. A recent firm we worked with chose to finance their sr&ed claim simply because they had seasonal cash flow – they didn’t want to wait for many months for their cheque – and intend to utilize those funds for general business growth and working capital.

So whats our bottom line? Its simply that you should take advantage of the funding under the program, and you may wish to consider monetizing your grant into cash flow now. That’s innovation in both your product and services, as well as your financing strategy! Utilize your funding to accelerate more research and use the cash flow for further growth and development.