Don’t panic…..you have options! The first piece of advice I would give is do not ignore the IRS. Contrary to what many people think, they will work with you. The IRS does not want to take your car, house or seize your bank accounts. They want you to pay your taxes.

Therefore, if you cannot pay, you can make payment arrangements. The IRS will allow you to pay your balance off in monthly installments. As long as you make your monthly payments as scheduled, they will not bother you.

Here’s how it works.  You determine how much you will be able to pay each month and what day of the month you’d like your payment to be due.  You then submit this information to the IRS and they have the option to approve or deny your installment.  However, most installments are approved.  Others are slightly altered.  If the payment amount you are requesting is too low, they might suggest you pay more.  Keep in mind, when requesting an installment agreement, make sure you request a monthly payment you can afford. It is better to pay more than less. If you miss a payment or pay less than your scheduled amount, it forfeits the installment agreement. If that happens, you will have to setup another installment agreement. Although, setting them up is not difficult, they are not free.   Each time you have to setup an installment agreement there’s a fee.

You can request an installment agreement online, over the phone or by completing Form 9465 and mailing it in.

I know taxes are not high on the list of most romantic subjects, but when you and your sweetie are thinking about tying the knot you should definitely consider the tax consequences. So, be sure to add tax planning to your wedding to do list. 

I have found that many taxpayers do not realize that when you get married, (no matter what date) you are now required to file a married return. I know there are tax preparers out there that will tell you otherwise but I am not one of those. The tax code says a taxpayer’s marital status on the last day of the year determines their filing status for the entire year. Therefore, whether you get married in June or December, you still have to file a married tax return for that tax year. (The same holds true if you get a divorce.) Remember your filing status for tax purposes is determined by your marital status on the last day of the year.

We at By The Book Accounting we do your taxes the legal way. If you want your taxes done “right” give us a call. All others need not apply.

With the uncertainties of the economy, many Americans are finding themselves looking for ways to cut back.  Some are driving less to save on gas.  Others are cooking more at home to cut down on the expense of eating out.  Those are all very good ways to cut back.  I’d like to suggest another way to increase what you bring home….or as this post is titled….GIVE YOURSELF A RAISE!

Listen to this 15 minute interview and let me know if you learned something that help you give yourself a raise!

Click Here

I often times get forwarded emails from clients asking “is this true?”.  They generally have an email “supposedly” from the IRS saying that they have a refund and all they have to do is….”click on this link” to claim it.  YEAH RIGHT!!!

BEWARE!!!!!  It’s a scam!!!!!

Here are a few facts about the IRS that you might find useful: 

• They don’t want to pay tax refunds, so they will never send you an email (or a letter) for that matter saying…. “We owe you money”. PERIOD!
• The IRS generally communicates via snail mail and telephone (and of course, the occasional in person visit….to the people who ignore them….that’s another post!!)

Keep in mind the IRS does not send unsolicited emails about your taxes.  If you get an email that appears to be from the IRS, it may be an attempt to steal your private information.  Don’t click on any links in the message!!!  Forward the email to: phishing@irs.gov.

 Knowing and following this advice just might save your life.

As our lives progress and things change, our taxes tend to become more complicated. Now you own a home, have rental property or even a part-time business. Not to mention all the recent changes in the tax laws. Who can keep up?

Whether you file your taxes yourself or pay someone else to file them, you are ultimately responsible for what is reported on your tax return. So choosing a tax preparer is a task that you should not take lightly.

Here are some tips that will help:

1. Be knowledgeable. Although you are not (nor do you desire to be) an accountant, you should have some degree of knowledge when it comes to taxes. If you do not know, you need to find someone who does and can explain it to you.

2. Word of Mouth. When searching for an accountant you want to find someone who is reliable and trustworthy. Word of mouth is the best mode of advertising so ask for referrals from family, friends and co-workers whom you respect and trust.

3. Availability. Having an accountant who is readily available to you is invaluable. When you have questions after tax season or the IRS sends you a “love” letter, you want someone who will be there to meet your needs.

4. Simplicity. It is a known fact that the U.S. Tax Code is written in a language that we do not speak. You want an accountant who can “translate” the code into plain English.

5. Qualified. This goes without saying but I thought I would say it anyway: choose someone who is qualified. Check out their educational background and experience. Be sure the person is current on all of the tax law changes and has experience in your area of need. Be leery of someone who claims to know it all. You know how the old adage goes, “Jack of all trades, and master of NONE!”

6. Guarantees. Listen carefully to the guarantees an accountant gives. If they guarantee you a refund without assessing your financial situation, you should run the other way. A true tax professional knows that you cannot give that type of guarantee without knowing your particular situation.  Do however pay attention to accountants who guarantee their work.  These types are guarantees are rare and priceless.

Choosing a tax preparer can be a difficult task but these tips can make it a lot easier.