Roni Deutch Tax has many trained lawyers who can take your case and help you overcome any delinquency or lien that you may have incurred. As stated above, they know the tax laws and codes, and how to work around them. They are masters at negotiating with the IRS and can do what you may not be able to do – get you out of your tax debt completely.

Any time you have the IRS on your back, you want to deal with them as soon as possible. This means making agreements to pay past taxes or having to frustrate yourself over tax liens that are really not necessary. In some cases, the IRS wants to just bully you because they know they can. They know you are unknowledgeable about tax laws and codes and will do everything possible to take advantage of you. Because of this you fall into their trap and get involved in deals just to get them off your back because they have intimated you to such an extent that you just can’t take it anymore. What can you do then? You can go to Roni Deutch Tax and let the experts handle the IRS for you. They won’t let the IRS bully them. In fact, the IRS usually will bend when Roni Deutch gets involved, since Roni’s team of tax attorneys know the tax laws like the back of their hand. The IRS knows this and cannot get over on them. So the IRS agrees to deal with them for that reason.

Roni Deutch Tax has gotten many taxpayers off the hook because they know how to handle the IRS. They know how to use the tax codes and laws in their favor. Many taxpayers have had their tax debts removed and lowered thanks to the hard work and dedication of Roni Deutch tax lawyers. Even if you have a wage garnishment, Roni Deutch has been able to get delinquencies removed easily. There is no doubt, if you want to get the IRS off your back and have them leave you alone, your best bet would be to contact Roni Deutch Tax and let them do the talking and negotiati

Employers who misclassify workers as independent contractors can end up with substantial tax bills as well as penalties for failing to pay employment taxes and failing to file required tax forms.  Workers can avoid higher tax bills and lost benefits if they know their proper status.

Both employers and workers can ask the IRS to make a determination on whether a specific individual is an independent contractor or an employee by filing a Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding, with the IRS.

Generally, whether a worker is an employee or an independent contractor depends upon how much control you have as a business owner.  If you have the right to control or direct not only what is to be done but also how it is to be done then your workers are most likely employees.  If you can direct or control only the result of the work done, and not the means and methods of accomplishing the result, then your workers are probably independent contractors.

Three broad characteristics are used by the IRS to determine the relationship between businesses and workers - Behavioral Control, Financial Control, and the Type of Relationship.  Behavioral Control covers facts that show whether the business has a right to direct or control how the work is done through instructions, training, or other means.  Financial Control covers facts that show whether the business has a right to direct or control the financial and business aspects of the worker’s job.  The Type of Relationship factor relates to how the workers and the business owner perceive their relationship.

Knowing the proper worker classification can be critical to your business.  Don’t guess.  Act now to make certain you know for sure.

You can learn more about the critical determination of a worker’s status as an Independent Contractor or Employee at IRS.gov by selecting the Small Business link.  Additional resources include IRS Publication 15-A, Employer’s Supplemental Tax Guide, and Publication 1779, Independent Contractor or Employee.  Both of these publications and Form SS-8 are available on the IRS Web site or by calling the IRS at 800-829-3676 (800-TAX-FORM).

Remember that for the genuine IRS Web site be sure to use .gov.  Don’t be confused by internet sites that end in .com, .net, .org or other designations instead of .gov. The address of the official IRS governmental Web site is www.irs.gov.

Links:

• Contractor vs. Employee
• Publication 1779
• Publication 15-A

If the IRS sees the taxpayer and realizes he/she will not be able to pay his/her tax bill, the IRS will label the tax bill as currently not collectible, and stop all collection action against the taxpayer. Although the IRS will list the taxpayer’s debt as currently not collectible, the IRS will still send an annual statement to let the taxpayer know the amount of the tax the taxpayer still owes. Some taxpayers get freaked out when they see this because they think it is a bill. But it is not. It is only a statement notifying the taxpayer of his/her current tax bill status.

Another fact about the currently not collectible status is that the 10-year statute of limitations on tax debt collections is in force and will stay that way, until either the tax is paid off, or the stature time expires. If for any reason, the IRS cannot collect any currently not collectible debt, within the 10-year time, the tax debt is erased.

If you find yourself in a bad debt situation, being declared currently not collectible is the best way to get out of your tax debt. The best way to work into this kind of situation is by seeking advice from a tax professional that happens to specialize in tax debts. This way they can assist you by getting the proper form prepared, and by showing you what the requirements are to file for the status of currently not collectible.

Here is an example of a person who has a lot of debt and had tax debt problems. The person owed the IRS $50,000 for the last three years of tax returns. The returns were already filed, but he realized he forgot to include a very important deduction that would lower his tax bill by a lot.

For this guy the best way for him to handle his situation is to look over his tax returns carefully and make sure to jot down whatever you may have missed. Then do an amended return. This will lower his tax bill. The only problem is if his income is too low to afford the cost of paying his debt. So he sends the IRS Form 433-F to let the IRS know he can’t pay his tax debt. They will look at his situation, and if they see he can’t do it, his tax debt will be listed as currently not collectible.

Being listed as currently not collectible is not for everyone, because not all people fall into that category. But for those who do, it is a godsend because it gets them out of paying for a tax debt that may just be too high for them to pay.

Since the Whistleblower Office was created in December 2006, the IRS has received about 80 claims, half of those submitted in just the last two and a half months. To make a claim, an informant must file new Form 211, Application for Award for Original Information, which asks informants to provide an estimate of the tax owed, the pertinent facts in the case and an explanation of how the informant obtained the information.

The IRS’ Whistleblower Office will make the final determination about whether an award will be paid and the amount of the award for claims that it processes. Awards will be paid in proportion to the value of information furnished voluntarily with respect to proceeds collected.

Under the new procedures, the amount of award will be at least 15%, but no more than 30%, of the collected proceeds in cases in which the IRS determines that the information submitted by the informant substantially contributed to the collection of tax.  The award percentage may be reduced in some circumstances, which are described in IRS guidance.

To be eligible for an award under the new procedures, the tax, penalties, interest, additions to tax, and additional amounts in dispute must exceed $2 million for any taxable year and, if the taxpayer is an individual, the individual’s gross income must exceed $200,000 for any taxable year in question.

All awards will be subject to normal tax reporting and withholding requirements.

Related Items:

• Notice 2008-4
• Form 211

The AMT and AMT-related tax calculations affect a number of core IRS processing systems that will need to be updated. The IRS is continuing to aggressively explore options for the 2008 filing season in order to minimize the impact of processing delays on taxpayers. Additional details will be available to the public as soon as plans are finalized.

To help the tax professional and software communities prepare for the upcoming filing season, revised copies of the 12 tax forms impacted by the AMT legislation will be posted to IRS.gov within 72 hours after the AMT patch is signed into law.

As more details on the AMT situation develop, the IRS encourages taxpayers to visit IRS.gov for more information.

In addition, the worker must meet one of several criteria indicating they were an employee while performing the services.  The criteria include:

• The worker has filed Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding, and received a determination letter from the IRS stating they are an employee of the firm.
• The worker has been designated as a section 530 employee by their employer or by the IRS prior to January 1, 1997.
• The worker has received other correspondence from the IRS that states they are an employee.
• The worker was previously treated as an employee by the firm and they are performing services in a similar capacity and under similar direction and control.
• The worker’s co-workers are performing similar services under similar direction and control and are treated as employees.
• The worker’s co-workers are performing similar services under similar direction and control and filed Form SS-8 for the firm and received a determination that they were employees.
• The worker has filed Form SS-8 with the IRS and has not yet received a reply.

By using Form 8919, the worker’s social security and Medicare taxes will be credited to their social security record. To facilitate this process, the IRS will electronically share Form 8919 data with the Social Security Administration.

In the past, misclassified workers often used Form 4137 to report their share of social security and Medicare taxes. Misclassified workers should no longer use this form. Instead, Form 4137 should now only be used by tipped employees to report social security and Medicare taxes on allocated tips and tips not reported to their employers.

The final form released today retains the redesigned draft’s format of a core form and a series of schedules.  In response to public comments, the new core form allows an organization to describe its exempt accomplishments and mission up-front and provides more opportunities throughout the form for the organization to explain its activities.  Other major changes were made to the form’s summary page, governance section, and various schedules, including those relating to executive compensation, related organizations, foreign activities, hospitals, non-cash contributions and tax exempt bonds.  A checklist of schedules was also added.

“We could not have done this without the tremendous input of the tax-exempt sector, the practitioner groups and the states,” said Lois G. Lerner, Director of Exempt Organizations.  “The almost 700 public comment letters, the advice and counsel of numerous nonprofit experts and state regulators, and the input from the nonprofit sector’s leaders, were invaluable as we moved from the June discussion draft to the final form we released today.”

The new form will be used for the 2008 tax year (returns filed in 2009). The IRS plans to release the related instructions in early 2008.  “We are continuing to work with the nonprofit sector to complete the new form’s instructions,” said Lerner.

The IRS also announced a graduated transition period for smaller organizations.  These organizations will be allowed to file the Form 990-EZ instead of the Form 990.  For the 2008 tax year (returns filed in 2009), organizations with gross receipts over $1.0 million or total assets over $2.5 million will be required to file the Form 990.  For the 2009 tax year (returns filed in 2010), organizations with gross receipts over $500,000 or total assets over $1.25 million will be required to file the Form 990.   The filing thresholds will be set permanently at $200,000 gross receipts and $500,000 total assets beginning with the 2010 tax year.  Also, starting with the 2010 tax year, the IRS will increase the filing threshold for organizations required to file Form 990-N (the e-postcard) from $25,000 to $50,000.

“This phase-in process will allow organizations to become familiar with the new Form 990,” Lerner said.

The IRS also announced a phase-in of the form’s new hospital and tax exempt bond schedules.  Certain identifying information will be required for the 2008 tax year, with completion of the entire schedules required for the 2009 tax year.  In response to the nonprofit sector’s safety and security concerns regarding disclosure of certain foreign workers and volunteers, the IRS revised the form to permit reporting of foreign activities by region, rather than by country, until other safeguards may be implemented to protect the privacy interests of such persons.

“We believe the transition relief we are providing is appropriate and meaningful, and will ease the concerns raised by commenters,” said Lerner.

The final Form 990 and background material explaining the changes from the current form and the June draft are available on the Exempt Organizations portion of the IRS Web site, IRS.gov/eo.

Link: Form 990 Redesign for Tax Year 2008

“It was another record-breaking year for e-file,” said IRS Acting Commissioner Linda E. Stiff. “Paper returns continue to drop year after year. E-file is the safe, accurate way for more and more taxpayers to quickly complete their taxes and get a refund faster.”

Since 2001, the number of e-filed returns has almost doubled and over the past decade the number of e-filers has increased four-fold.

More than 22.6 million returns have been e-filed by taxpayers doing their own returns, up from 20.3 million from the same period last year. More than 57.4 million returns were e-filed by tax professionals, up from nearly 52.9 million last year.

Direct Deposit, IRS.gov also Set Records

Meanwhile, more people this year chose to have their tax refunds directly deposited than ever before. For the year to date, the IRS has directly deposited 61.4 million refunds, up 8 percent from last year.

The IRS Web site – IRS.gov – also experienced a record year. The IRS recorded 196.2 million visits to IRS.gov this year, a more than 10 percent increase from the 177.5 million visits for the same period last year.

The refund checks, averaging about $953, can be claimed as soon as taxpayers update their addresses with the IRS. Some taxpayers have more than one check waiting.

“Taxpayers should not miss out on getting their money back,” said Richard Morgante, commissioner of the IRS Wage and Investment Division. ”The IRS makes it as easy as possible for taxpayers to update their addresses and claim their refunds.”

The “Where’s My Refund?” tool on IRS.gov enables taxpayers to check the status of their refunds. A taxpayer must submit his or her social security number, filing status and amount of refund shown on their 2006 return. The tool will provide the status of their refund and in some cases provide instructions on how to resolve delivery problems.

Taxpayers can access a telephone version of “Where’s My Refund?” by calling 1-800-829-1954.

Most Refunds

The number of undeliverable refunds each year is a relatively small portion of all refunds returned to taxpayers. So far in 2007, the IRS has processed nearly 105 million refunds, totaling about $240 billion, either by mail or direct deposit.

In fact, undeliverable refunds account for less than one-tenth of one percent of all refunds, or about one in a thousand.

A refund check is normally returned as undeliverable when a taxpayer moves without updating his or her address with either the U.S. Postal Service or the IRS.

Telephone Tax Refund

The list of taxpayers due undeliverable refunds this year rose about 21 percent from 95,746 last year. The sharp increase is due in part to the Telephone Excise Tax Refund. The refund is a one-time payment available on 2006 federal income tax returns. It was designed to return to taxpayers previously collected long-distance telephone taxes. Individuals, businesses and tax-exempt organizations are eligible to request it.

Updating Your Address

Refund checks are mailed to a taxpayer’s last known address. Checks are returned to the IRS if a taxpayer moves without notifying the IRS or the U.S. Postal Service.

Taxpayers can update their addresses with the IRS on the “Where’s My Refund?” feature. Also, taxpayers checking on a refund will be prompted to provide an updated address if there is an undelivered check outstanding within the last 12 months. Taxpayers checking on a refund over the phone will be given instructions on how to update their addresses.

A taxpayer can also ensure the IRS has his or her correct address by filing Form 8822, Change of Address. Download the form from IRS.gov or request it by calling 1-800-TAX-FORM (1-800-829-3676).

Those who do not have access to the Internet and think they may be missing a refund should first check their records or contact their tax preparer, then call the IRS toll-free assistance line at 1-800-829-1040 to update their address.

Direct Deposit Can Stop Lost Refunds

Signing up for Direct Deposit can put an end to undelivered refunds, as well lost or stolen refund checks. Taxpayers can receive refunds directly into personal checking or savings accounts. Direct Deposit is available for filers of both paper and electronic returns. Taxpayers can sign up for direct deposit on their tax form.

Links:

• Want to hear more? Listen to an IRS interview on Undelivered Refunds(Editors: Download the .mp3 file to podcast from your Web site)
•  Where’s My Refund?

The 45B Credit allows employers in the food and beverage industry to claim a credit for the Social Security and Medicare taxes the employers pay on their employees’ tip income.  The credit equals the Social Security and Medicare taxes the employer paid on the tips received by the employees.  However, no credit is given for tips used to meet the federal minimum wage rate.

Employers claiming the credit must reduce their Social Security and Medicare tax deduction accordingly.  Eligible employers should use Form 8846, Credit for Employer Social Security and Medicare Taxes Paid on Certain Employee Tips, to claim the credit.

The new law also allows the employer to use the 45B credit to offset alternative minimum tax.  Previously, the credit could only be used against the regular tax.  This offset is available for 45B credits for taxable years beginning after Dec. 31, 2006.

Related Item:  Credit for Portion of Employer Social Security Paid with Respect to Employee Cash Tips (IRC 45 B Credit)