IRS Tax issues, Refund and tax preparer Scam: Part 2
(Copyrighted)
While you are thinking about getting your taxes done, you might think about doing one or some of the following:
1. I teach my clients what they need, how to prepare their taxes and how to become organized. Possibly you should start by asking your tax preparers detailed questions about every line item of your return. Also during tax season, go to the post office near you and pick up the forms and some publication or go to the www.IRS.gov and pick up some forms and its instructions and start reading in order to gain knowledge about taxes. Most people need the instructions associated with forms 1040, Schedule A, Sch. B, Sch. C (if you have a self-employment business), Sch. D (if you bought/sold stocks, bonds, real estate properties, or carrying over previous years stock losses,…), Sch. E (if you had rental real estate property), Form 4562 (relates to Sch. C and E- if you have self employment or rental real estate depreciations to include vehicles/trucks), Form 8829 (if you used your home for your self employment or rental property management), Form 2106 (if you are a w-2 employee which some of employee related expenses were not reimbursed by your employer OR you were doing job search and had job search, interviews and other expenses to include vehicle, meal, travel…)
2. In my previous articles, I mentioned a website and a couple of books. One of the books was “Your Credit = Your Life, Fix It Now!” There is a CD included that describes some of the tax liabilities. You MUST read.
3. Take some classes and get yourself paid by doing your taxes instead of paying a tax preparer.
4. Buy a tax preparation book, read and learn.
5. While you are doing any of the above to increase your knowledge (about how to prepare your taxes), you can also call the IRS at 800-829-1040 and choose the option relating to tax questions (NOT the option about refunds or owing taxes). I know, a lot of people are afraid of calling the IRS because they think the IRS agent is going to reach through the phone or the satellite and get to the person claiming money. For that reason, since you don’t know if the IRS is going to hang you and shake you upside down to get all your money, then make an anonymous call. All you want to do is to get some correct information on how to prepare your tax return and a better understanding of how things work. So, call from a blocked number and don’t give your name. Since you want general information about how to prepare (not relating specifically to your tax returns), then the IRS representatives are not going to ask for your names or SSN.
6. MOST importantly, buy a tax software such as Intuit (Turbo Tax) or H & R block (TaxCut) software to do your taxes. Both of these software packages which are less than $30.00 each have all sorts of information and instructions and take you through “INTERVIEW” steps even in more detail than your CPA or Tax preparer would. Now, if you are not sure about a questions, you can read the pop up help instructions or call the IRS 800-829-1040 number and select the option about having questions on how to prepare.
7. You also have the choice of having you local IRS office help you prepare the tax-return. However, be careful. The preparing representative, may tell you that some of your expenses are not allowed. I had to argue with the IRS auditors, show them publications, etc. for them to see it my way. Therefore, I do NOT suggest you taking your tax return to the IRS rep. (if you have many sources of income and deductions) to prepare. You can have the IRS prepare your return if it is very simple, if you have low income and a lot of mouths to feed (dependents). I assure you, the same way that some of the tax preparers and CPAs are clueless, some of the IRS representatives who provide information and prepare taxes may also lack full knowledge. This is based upon my extensive experiences researching information for others.
SO. Whatever you do, learn about how your taxes are done so that you will know what to save, spend or store during the year. Buy one of the software packages I talked about under paragraph 6 (above). They take you through a step by step interview and teach you as they ask you detailed questions. If you still have some unanswered questions, then call the IRS help line.
Now, when you call the IRS, you must know the best time to call. If you are calling during the tax season, expect to stay on the phone for a minimum of 20 minutes before you get started. If you call in the evening when everybody else is calling; again, expect to remain on the phone for a long time. The best time to call IRS for questions (whatever your question may be –refunds, amount owed, or preparing) is either in the morning and Saturdays and Sundays.
When you call the IRS to get some questions answered and do not want your number revealed, then block your number. The bottom line is when asking tax preparation questions, the IRS agent will not ask you for your name, but every agent will provide his/her name and ID number. For consistency of receiving correct information, write the person’s name and ID down and if you are not satisfied or think the answer may not be correct, then call back, you’ll get someone else then ask the same questions and compare. I’m certain you’ve heard about the “Second Opinion” concept.
Now let’s say you are not sure if you correctly prepared your return. In that case, print it, take the return and all your supporting documents that allowed you to do the return to your tax prepaper, tell him/her to review the information in detail and even offer to pay, or pay for time to review. This way, you will know how good or bad you have done. IF you made mistakes, then you can correct those mistakes and learn new things for the following years.
There is so much more to say about tax preparation, your preparer, your refund or taxes owed. It would be impossible to address all here. The book, I mentioned, “Your Credit = Your Life, Fix It Now!” talks about refunds, some scams and tax liabilities. The money you spend buying this book is minimal in comparison to the knowledge you gain.
I hope this information has been helpful.
With best wishes,
Mike Samadi
Any questions? Go to Q & A of http://www.MasterCreditRepair.net, read and post. Go to the “Comment” page and post your story or comment. Your personal information will remain confidential. Joint my membership club (coming soon).
While you are thinking about getting your taxes done, you might think about doing one or some of the following:
1. I teach my clients what they need, how to prepare their taxes and how to become organized. Possibly you should start by asking your tax preparers detailed questions about every line item of your return. Also during tax season, go to the post office near you and pick up the forms and some publication or go to the www.IRS.gov and pick up some forms and its instructions and start reading in order to gain knowledge about taxes. Most people need the instructions associated with forms 1040, Schedule A, Sch. B, Sch. C (if you have a self-employment business), Sch. D (if you bought/sold stocks, bonds, real estate properties, or carrying over previous years stock losses,…), Sch. E (if you had rental real estate property), Form 4562 (relates to Sch. C and E- if you have self employment or rental real estate depreciations to include vehicles/trucks), Form 8829 (if you used your home for your self employment or rental property management), Form 2106 (if you are a w-2 employee which some of employee related expenses were not reimbursed by your employer OR you were doing job search and had job search, interviews and other expenses to include vehicle, meal, travel…)
2. In my previous articles, I mentioned a website and a couple of books. One of the books was “Your Credit = Your Life, Fix It Now!” There is a CD included that describes some of the tax liabilities. You MUST read.
3. Take some classes and get yourself paid by doing your taxes instead of paying a tax preparer.
4. Buy a tax preparation book, read and learn.
5. While you are doing any of the above to increase your knowledge (about how to prepare your taxes), you can also call the IRS at 800-829-1040 and choose the option relating to tax questions (NOT the option about refunds or owing taxes). I know, a lot of people are afraid of calling the IRS because they think the IRS agent is going to reach through the phone or the satellite and get to the person claiming money. For that reason, since you don’t know if the IRS is going to hang you and shake you upside down to get all your money, then make an anonymous call. All you want to do is to get some correct information on how to prepare your tax return and a better understanding of how things work. So, call from a blocked number and don’t give your name. Since you want general information about how to prepare (not relating specifically to your tax returns), then the IRS representatives are not going to ask for your names or SSN.
6. MOST importantly, buy a tax software such as Intuit (Turbo Tax) or H & R block (TaxCut) software to do your taxes. Both of these software packages which are less than $30.00 each have all sorts of information and instructions and take you through “INTERVIEW” steps even in more detail than your CPA or Tax preparer would. Now, if you are not sure about a questions, you can read the pop up help instructions or call the IRS 800-829-1040 number and select the option about having questions on how to prepare.
7. You also have the choice of having you local IRS office help you prepare the tax-return. However, be careful. The preparing representative, may tell you that some of your expenses are not allowed. I had to argue with the IRS auditors, show them publications, etc. for them to see it my way. Therefore, I do NOT suggest you taking your tax return to the IRS rep. (if you have many sources of income and deductions) to prepare. You can have the IRS prepare your return if it is very simple, if you have low income and a lot of mouths to feed (dependents). I assure you, the same way that some of the tax preparers and CPAs are clueless, some of the IRS representatives who provide information and prepare taxes may also lack full knowledge. This is based upon my extensive experiences researching information for others.
SO. Whatever you do, learn about how your taxes are done so that you will know what to save, spend or store during the year. Buy one of the software packages I talked about under paragraph 6 (above). They take you through a step by step interview and teach you as they ask you detailed questions. If you still have some unanswered questions, then call the IRS help line.
Now, when you call the IRS, you must know the best time to call. If you are calling during the tax season, expect to stay on the phone for a minimum of 20 minutes before you get started. If you call in the evening when everybody else is calling; again, expect to remain on the phone for a long time. The best time to call IRS for questions (whatever your question may be –refunds, amount owed, or preparing) is either in the morning and Saturdays and Sundays.
When you call the IRS to get some questions answered and do not want your number revealed, then block your number. The bottom line is when asking tax preparation questions, the IRS agent will not ask you for your name, but every agent will provide his/her name and ID number. For consistency of receiving correct information, write the person’s name and ID down and if you are not satisfied or think the answer may not be correct, then call back, you’ll get someone else then ask the same questions and compare. I’m certain you’ve heard about the “Second Opinion” concept.
Now let’s say you are not sure if you correctly prepared your return. In that case, print it, take the return and all your supporting documents that allowed you to do the return to your tax prepaper, tell him/her to review the information in detail and even offer to pay, or pay for time to review. This way, you will know how good or bad you have done. IF you made mistakes, then you can correct those mistakes and learn new things for the following years.
There is so much more to say about tax preparation, your preparer, your refund or taxes owed. It would be impossible to address all here. The book, I mentioned, “Your Credit = Your Life, Fix It Now!” talks about refunds, some scams and tax liabilities. The money you spend buying this book is minimal in comparison to the knowledge you gain.
I hope this information has been helpful.
With best wishes,
Mike Samadi
Any questions? Go to Q & A of http://www.MasterCreditRepair.net, read and post. Go to the “Comment” page and post your story or comment. Your personal information will remain confidential. Joint my membership club (coming soon).
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