I want to let as many people know that our President has helped small businesses!
Let that sink in.
I didn't think he had it in him, when in 2010 the affordable care act was passed, I didn't realize that this simple act of demanding that everyone have health care insurance, would lead to such a complicated trail of paper work that they would need the IRS to manage it. In managing that paper work the IRS has doubled the complexity to a point were return preparers like myself will have to increase our rates thus adding to our bottom line. Thank you Mr. President.
You see when you prepare your income tax return you will need to prove you have health insurance. Not so easy for 2014 as only those who applied through the healthcare.gov website and are eligible for a credit will have the forms necessary. The rest of us will have to wait another year. But don't worry the penalty is here waiting for you.
Oh, you didn't apply for health care and think your penalty will be $95. Think again, your penalty might be as much as 1% of your household income. I say it that way because you have to include the income of anyone one you can claim as a dependent. Have an adult child that isn't in school but has 5,000 in income? Have to add it in. Plus the $95 is per adult ($47.50 for under 18).
Now the government has exemptions. Did you apply for them? No. Well if you do so on healthcare.gov it will take 60-90 days to get an answer and if you don't like it there is an appeals process. Or you can file for the exemption with your tax return. (Ah, I can hear the money in your pockets rolling my way for assistance)
You will just need proof of things like evictions, bankruptcy, high unpaid medical bills, foreclosures, incarceration, death of a close loved one. (Not sure if that uncle that lives in Washington State counts).
There are a few other ways to see if you are eligible for a hardship exemption buy you will have to pay me to find out.
Thank you and good night.
Wednesday, June 11, 2014
The IRS has issued a “Taxpayer Bill of Rights” unlike the constitution this is not about limits on the IRS but basic processes you have access to. (Publication 1) Dept. of Treasury IRS.gov
1. The Right to Be Informed
Taxpayers have the right to know what they need to do to comply with the tax laws. They are entitled to clear explanations of the laws and IRS procedures in all tax forms instructions, publications, notices, and correspondence. They have the right to be informed of IRS decisions about their tax accounts and to receive clear explanations of the outcomes.
2. The Right to Quality Service
Taxpayers have the right to receive prompt, courteous, and professional assistance in their dealings with the IRS, to be spoken to in a way they can easily understand, to receive clear and easily understandable communications from the IRS, and to speak to a supervisor about inadequate service.
3. The Right to Pay No More than the Correct Amount of Tax
Taxpayers have the right to pay only the amount of tax legally due, including interest and penalties, and to have the IRS apply all tax payments properly.
4. The Right to Challenge the IRS’s Position and Be Heard
Taxpayers have the right to raise objections and provide additional documentation in response to formal IRS actions or proposed actions, to expect that the IRS will consider their timely objections and documentation promptly and fairly, and to receive a response if the IRS does not agree with their position.
5. The Right to Appeal an IRS Decision in an Independent Forum
Taxpayers are entitled to a fair and impartial administrative appeal of most IRS decisions, including many penalties, and have the right to receive a written response regarding the Office of Appeals' decision. Taxpayers generally have the right to take their cases to court.
6. The Right to Finality
Taxpayers have the right to know the maximum amount of time they have to challenge the IRS’s position as well as the maximum amount of time the IRS has to audit a particular tax year or collect a tax debt. Taxpayers have the right to know when the IRS has finished an audit.
7. The Right to Privacy
Taxpayers have the right to expect that any IRS inquiry, examination, or enforcement action will comply with the law
and be no more intrusive than necessary, and will respect all due process rights, including search and seizure protections and will provide, where applicable, a collection due process hearing.
8. The Right to Confidentiality
Taxpayers have the right to expect that any information they provide to the IRS will not be disclosed unless authorized by the taxpayer or by law. Taxpayers have the right to expect appropriate action will be taken against employees, return preparers, and others who wrongfully use or disclose taxpayer return information.
9. The Right to Retain Representation
Taxpayers have the right to retain an authorized representative of their choice to represent them in their dealings with the IRS. Taxpayers have the right to seek assistance from a Low Income Taxpayer Clinic if they cannot afford representation.
10. The Right to a Fair and Just Tax System
Taxpayers have the right to expect the tax system to consider facts and circumstances that might affect their underlying liabilities, ability to pay, or ability to provide information timely. Taxpayers have the right to receive assistance from the Taxpayer Advocate Service if they are experiencing financial difficulty or if the IRS has not resolved their tax issues properly and timely through its normal channels.