Proposed law would limit delinquent taxpayers' overseas travel

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International Tax Services - A proposed law would give the Internal Revenue Service more latitude in starting a process that would result in a U.S. citizen's passport being revoked or denied if he or she owes a substantial amount in back taxes. There are exceptions under the law, including if the taxpayer is repaying the debt under a payment plan. Forbes (4/24) To read more click here. Looking for an experienced and IRS licensed tax preparer? For no obligation free consultation contact us today!
ABA Tax Accounting
Abatax81@gmail.com
Direct 612-282-3200
Toll free 866-936-0430
http://abatax81.blogspot.com

Start Planning Now for Next Year's Tax Return

To contact us Click HERE

The tax deadline may have just passed but planning for next year can start now. The IRS reminds taxpayers that being organized and planning ahead can save time, money and headaches in 2013. Here are eight things you can do now to make next April 15 easier.
1.     Adjust your withholding - Why wait another year for a big refund? Now is a good time to review your withholding and make adjustments for next year, especially if you'd prefer more money in each paycheck this year. If you owed at tax time, perhaps you'd like next year's tax payment to be smaller. Use IRS's Withholding Calculator at www.irs.gov or Publication 919, How Do I Adjust My Tax Withholding? 2.     Store your return in a safe place - Put your 2011 tax return and supporting documents somewhere secure so you'll know exactly where to find them if you receive an IRS notice and need to refer to your return. If it is easy to find, you can also use it as a helpful guide for next year's return. 3.     Organize your recordkeeping - Establish a central location where everyone in your household can put tax-related records all year long. Anything from a shoebox to a file cabinet works. Just be consistent to avoid a scramble for misplaced mileage logs or charity receipts come tax time. 4.     Review your paycheck - Make sure your employer is properly withholding and reporting retirement account contributions, health insurance payments, charitable payroll deductions and other items. These payroll adjustments can make a big difference on your bottom line. Fixing an error in your paycheck now gets you back on track before it becomes a huge hassle. 5.     Shop for a tax professional early - If you use a tax professional to help you strategize, plan and make financial decisions throughout the year, then search now. You'll have more time when you're not up against a deadline or anxious for your refund. Choose a tax professional wisely. You are ultimately responsible for the accuracy of your own return regardless of who prepares it. Find tips for choosing a preparer atwww.irs.gov. 6.     Prepare to itemize deductions - If your expenses typically fall just below the amount to make itemizing advantageous, a bit of planning to bundle deductions into 2012 may pay off. An early or extra mortgage payment, pre-deadline property tax payments, planned donations or strategically paid medical bills could equal some tax savings. See the Schedule A instructions for expenses you can deduct if you're itemizing and then prepare an approach that works best for you. 7.     Strategize tuition payments - The American Opportunity Tax Credit, which offsets higher education expenses, is set to expire after 2012. It may be beneficial to pay 2013 tuition in 2012 to take full advantage of this tax credit, up to $2,500, before it expires. For more information, see IRS Publication 970, Tax Benefits for Education. 8.     Keep up with changes - Find out about tax law changes, helpful tips and IRS announcements all year by reading ABA Tax Accounting blogs. The ABA Tax issues tips regularly throughout during the tax season and outside the tax season.
 The IRS emphasizes that each household's financial circumstances are different so it's important to fully consider your specific situation and goals before making large financial decisions. Looking for an experienced and licensed by IRS tax preparer? As always we are available to help. For no obligation free consultation contact us today! ABA Tax Accounting Abatax81@gmail.com Direct 612-282-3200 Toll free 866-936-0430 http://abatax81.blogspot.com

IRS Pledges to Help Dual Citizens Meet Tax Obligations

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The IRS plans to help U.S. citizens who reside in foreigncountries catch up with their tax-filing obligations and offer assistance tothose with foreign retirement plans. To Read More click the link. As always we are available tohelp. For no obligation free consultation contact us today!
ABA Tax AccountingAmare Berhie, Enrolled AgentCertified QuickBooks ProAdvisorAbatax81@gmail.comDirect612-282-3200Tollfree 866-936-0430http://abatax81.blogspot.com

Help! What If I Can't Make My IRS Payment?

To contact us Click HERE

If you are one of thousands of taxpayers who are in a payment plan with the IRS, but due to current economic conditions cannot make your payment, you have options. If you have lost your job and your entire financial situation has changed, you need to contact the IRS and be prepared to lay out your new situation. If you expenses have not changed and your income is all that has changed, you may just need proof (like a termination letter) you no longer have a job.

If your expenses have changed as well, you may need to provide proof of those changes as well. When you talk to the IRS, only say what has happened and answer honestly and completely any questions they may ask. Do not volunteer information, except to briefly explain your situation. Don't get chatty, even if the person you talk is friendly and personable, remember, they work for the IRS. You could make one simple statement that could cause you problems.

If your liability is substantial and you need assistance, contact an Enrolled Agent, who can represent you before the IRS. What ever you do, do not ignore your situation. If you default you payment plan, the IRS can levy your bank accounts, retirement accounts and file a lien even if your tax liability is low. Call either the IRS or an Enrolled Agent before the IRS makes a bad financial situation even worse.

Proposed law would limit delinquent taxpayers' overseas travel

To contact us Click HERE
International Tax Services - A proposed law would give the Internal Revenue Service more latitude in starting a process that would result in a U.S. citizen's passport being revoked or denied if he or she owes a substantial amount in back taxes. There are exceptions under the law, including if the taxpayer is repaying the debt under a payment plan. Forbes (4/24) To read more click here. Looking for an experienced and IRS licensed tax preparer? For no obligation free consultation contact us today!
ABA Tax Accounting
Abatax81@gmail.com
Direct 612-282-3200
Toll free 866-936-0430
http://abatax81.blogspot.com

Start Planning Now for Next Year's Tax Return

To contact us Click HERE

The tax deadline may have just passed but planning for next year can start now. The IRS reminds taxpayers that being organized and planning ahead can save time, money and headaches in 2013. Here are eight things you can do now to make next April 15 easier.
1.     Adjust your withholding - Why wait another year for a big refund? Now is a good time to review your withholding and make adjustments for next year, especially if you'd prefer more money in each paycheck this year. If you owed at tax time, perhaps you'd like next year's tax payment to be smaller. Use IRS's Withholding Calculator at www.irs.gov or Publication 919, How Do I Adjust My Tax Withholding? 2.     Store your return in a safe place - Put your 2011 tax return and supporting documents somewhere secure so you'll know exactly where to find them if you receive an IRS notice and need to refer to your return. If it is easy to find, you can also use it as a helpful guide for next year's return. 3.     Organize your recordkeeping - Establish a central location where everyone in your household can put tax-related records all year long. Anything from a shoebox to a file cabinet works. Just be consistent to avoid a scramble for misplaced mileage logs or charity receipts come tax time. 4.     Review your paycheck - Make sure your employer is properly withholding and reporting retirement account contributions, health insurance payments, charitable payroll deductions and other items. These payroll adjustments can make a big difference on your bottom line. Fixing an error in your paycheck now gets you back on track before it becomes a huge hassle. 5.     Shop for a tax professional early - If you use a tax professional to help you strategize, plan and make financial decisions throughout the year, then search now. You'll have more time when you're not up against a deadline or anxious for your refund. Choose a tax professional wisely. You are ultimately responsible for the accuracy of your own return regardless of who prepares it. Find tips for choosing a preparer atwww.irs.gov. 6.     Prepare to itemize deductions - If your expenses typically fall just below the amount to make itemizing advantageous, a bit of planning to bundle deductions into 2012 may pay off. An early or extra mortgage payment, pre-deadline property tax payments, planned donations or strategically paid medical bills could equal some tax savings. See the Schedule A instructions for expenses you can deduct if you're itemizing and then prepare an approach that works best for you. 7.     Strategize tuition payments - The American Opportunity Tax Credit, which offsets higher education expenses, is set to expire after 2012. It may be beneficial to pay 2013 tuition in 2012 to take full advantage of this tax credit, up to $2,500, before it expires. For more information, see IRS Publication 970, Tax Benefits for Education. 8.     Keep up with changes - Find out about tax law changes, helpful tips and IRS announcements all year by reading ABA Tax Accounting blogs. The ABA Tax issues tips regularly throughout during the tax season and outside the tax season.
 The IRS emphasizes that each household's financial circumstances are different so it's important to fully consider your specific situation and goals before making large financial decisions. Looking for an experienced and licensed by IRS tax preparer? As always we are available to help. For no obligation free consultation contact us today! ABA Tax Accounting Abatax81@gmail.com Direct 612-282-3200 Toll free 866-936-0430 http://abatax81.blogspot.com

Help! What If I Can't Make My IRS Payment?

To contact us Click HERE

If you are one of thousands of taxpayers who are in a payment plan with the IRS, but due to current economic conditions cannot make your payment, you have options. If you have lost your job and your entire financial situation has changed, you need to contact the IRS and be prepared to lay out your new situation. If you expenses have not changed and your income is all that has changed, you may just need proof (like a termination letter) you no longer have a job.

If your expenses have changed as well, you may need to provide proof of those changes as well. When you talk to the IRS, only say what has happened and answer honestly and completely any questions they may ask. Do not volunteer information, except to briefly explain your situation. Don't get chatty, even if the person you talk is friendly and personable, remember, they work for the IRS. You could make one simple statement that could cause you problems.

If your liability is substantial and you need assistance, contact an Enrolled Agent, who can represent you before the IRS. What ever you do, do not ignore your situation. If you default you payment plan, the IRS can levy your bank accounts, retirement accounts and file a lien even if your tax liability is low. Call either the IRS or an Enrolled Agent before the IRS makes a bad financial situation even worse.

Less than 7 days left to file tax returns

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Tax Preparation Services – More than $1 billion in refunds waits for people who did not file a federal income tax return for 2008. The IRS estimates that half of these potential 2008 refunds average $637 or more. If you failed to file a return, you could be missing out on a potential refund.

However, it’s not too late if you file your 2008 tax return by April 17. Many people don’t file because they feel they didn't have enough income to require filing a tax return. However, if taxes were withheld from those wages you may be entitled to a refund. You have a three year window to claim a refund. If you don’t file a return within three years, your refund will become property of the U.S. Treasury.

How to claim your 2008 refund?

• Your 2008 return must be properly addressed, mailed and postmarked by midnight April 17, 2012. There is no penalty for filing a late return that qualifies for a refund.
• If you have not filed tax returns for 2009 and 2010, your 2008 refund may be held. In addition, your refund will be applied to any balance due owed to the IRS, and may be used to offset unpaid child support or past due federal debts such as student loans.
• If you are missing Forms W-2, 1098, 1099 or 5498 for 2008, you should request copies from your employer, bank or other payer. If these efforts are unsuccessful, contact us.

Still looking for a tax preparer to help you with this year’s tax return? We are available to help. Contact us today.
ABA Tax Accounting
Amare Berhie, Senior Tax Accountant
amare@abataxaccounting.com
Direct 612-282-3200
Toll free 866-936-0430
http://abatax81.blogspot.com

Proposed law would limit delinquent taxpayers' overseas travel

To contact us Click HERE
International Tax Services - A proposed law would give the Internal Revenue Service more latitude in starting a process that would result in a U.S. citizen's passport being revoked or denied if he or she owes a substantial amount in back taxes. There are exceptions under the law, including if the taxpayer is repaying the debt under a payment plan. Forbes (4/24) To read more click here. Looking for an experienced and IRS licensed tax preparer? For no obligation free consultation contact us today!
ABA Tax Accounting
Abatax81@gmail.com
Direct 612-282-3200
Toll free 866-936-0430
http://abatax81.blogspot.com

Start Planning Now for Next Year's Tax Return

To contact us Click HERE
Thetax deadline may have just passed but planning for next year can start now. TheIRS reminds taxpayers that being organized and planning ahead can save time,money and headaches in 2013. Here are eight things you can do now to make nextApril 15 easier.
1.    Adjust your withholding -Why wait another year for a big refund? Now is a good time toreview your withholding and make adjustments for next year, especially if you'dprefer more money in each paycheck this year. If you owed at tax time, perhapsyou'd like next year's tax payment to be smaller. Use IRS's WithholdingCalculator at www.irs.gov orPublication 919, How Do I Adjust My Tax Withholding?2.    Store your return in a safeplace - Putyour 2011 tax return and supporting documents somewhere secure so you'll knowexactly where to find them if you receive an IRS notice and need to refer toyour return. If it is easy to find, you can also use it as a helpful guide fornext year's return.3.    Organize your recordkeeping - Establisha central location where everyone in your household can put tax-related recordsall year long. Anything from a shoebox to a file cabinet works. Just beconsistent to avoid a scramble for misplaced mileage logs or charity receiptscome tax time.4.    Review your paycheck -Make sure your employer is properly withholding and reportingretirement account contributions, health insurance payments, charitable payrolldeductions and other items. These payroll adjustments can make a big differenceon your bottom line. Fixing an error in your paycheck now gets you back ontrack before it becomes a huge hassle.5.    Shop for a tax professionalearly - If youuse a tax professional to help you strategize, plan and make financialdecisions throughout the year, then search now. You'll have more time whenyou're not up against a deadline or anxious for your refund. Choose a taxprofessional wisely. You are ultimately responsible for the accuracy of yourown return regardless of who prepares it. Find tips for choosing a preparer atwww.irs.gov.6.    Prepare to itemize deductions -If your expenses typically fall just below the amount to makeitemizing advantageous, a bit of planning to bundle deductions into 2012 maypay off. An early or extra mortgage payment, pre-deadline property taxpayments, planned donations or strategically paid medical bills could equalsome tax savings. See the Schedule A instructions for expenses you can deductif you're itemizing and then prepare an approach that works best for you.7.    Strategize tuition payments -The American Opportunity Tax Credit, which offsets highereducation expenses, is set to expire after 2012. It may be beneficial to pay2013 tuition in 2012 to take full advantage of this tax credit, up to $2,500,before it expires. For more information, see IRS Publication 970, Tax Benefitsfor Education.8.    Keep up with changes -Find out about tax law changes, helpful tips and IRSannouncements all year by reading ABA Tax Accounting blogs. The ABA Tax issuestips regularly throughout during the tax season and outside the tax season.
 The IRS emphasizes thateach household's financial circumstances are different so it's important tofully consider your specific situation and goals before making large financialdecisions. Looking for anexperienced and licensed by IRS tax preparer? As always we are available tohelp. For no obligation free consultation contact us today!ABA TaxAccountingAbatax81@gmail.comDirect612-282-3200Tollfree 866-936-0430http://abatax81.blogspot.com

Help! What If I Can't Make My IRS Payment?

To contact us Click HERE

If you are one of thousands of taxpayers who are in a payment plan with the IRS, but due to current economic conditions cannot make your payment, you have options. If you have lost your job and your entire financial situation has changed, you need to contact the IRS and be prepared to lay out your new situation. If you expenses have not changed and your income is all that has changed, you may just need proof (like a termination letter) you no longer have a job.

If your expenses have changed as well, you may need to provide proof of those changes as well. When you talk to the IRS, only say what has happened and answer honestly and completely any questions they may ask. Do not volunteer information, except to briefly explain your situation. Don't get chatty, even if the person you talk is friendly and personable, remember, they work for the IRS. You could make one simple statement that could cause you problems.

If your liability is substantial and you need assistance, contact an Enrolled Agent, who can represent you before the IRS. What ever you do, do not ignore your situation. If you default you payment plan, the IRS can levy your bank accounts, retirement accounts and file a lien even if your tax liability is low. Call either the IRS or an Enrolled Agent before the IRS makes a bad financial situation even worse.

Help! What If I Can't Make My IRS Payment?

To contact us Click HERE

If you are one of thousands of taxpayers who are in a payment plan with the IRS, but due to current economic conditions cannot make your payment, you have options. If you have lost your job and your entire financial situation has changed, you need to contact the IRS and be prepared to lay out your new situation. If you expenses have not changed and your income is all that has changed, you may just need proof (like a termination letter) you no longer have a job.

If your expenses have changed as well, you may need to provide proof of those changes as well. When you talk to the IRS, only say what has happened and answer honestly and completely any questions they may ask. Do not volunteer information, except to briefly explain your situation. Don't get chatty, even if the person you talk is friendly and personable, remember, they work for the IRS. You could make one simple statement that could cause you problems.

If your liability is substantial and you need assistance, contact an Enrolled Agent, who can represent you before the IRS. What ever you do, do not ignore your situation. If you default you payment plan, the IRS can levy your bank accounts, retirement accounts and file a lien even if your tax liability is low. Call either the IRS or an Enrolled Agent before the IRS makes a bad financial situation even worse.

Advice for transferring family businesses

To contact us Click HERE
Small Business Self Employed Tax Accounting - Advisers can help clients figure out the best way to transfer interests in a family business to the next generation, writes Heidi Bolger, CPA/ABV. Factors to consider include family members' activity and contribution to the business, as well as the amount of time they've been involved. Older family members may want to start by transferring minority stakes to test an ownership arrangement before handing over control. To read more click HERE.  As always we are available to help.  Contact us today.
ABA Tax Accounting
Amare Berhie, Senior Tax Accountant
amare@abataxaccounting.com
Direct 612-282-3200
Toll free 866-936-0430
http://abatax81.blogspot.com

Last-Minute Reminder to Parents and Students; Don’t Overlook College Tax Benefits

To contact us Click HERE
Tax Preparation Services – The Internal Revenue Service today reminded parents and students rushing to meet this year’s April 17 deadline to be sure and check out several college-related tax benefits before filing their 2011 returns.

Two tax credits and a tax deduction are available to taxpayers who paid tuition and other expenses for an eligible student during 2011. Because an eligible student can be the taxpayer, spouse or dependent, these benefits can, for example, help workers taking continuing education courses and people returning to school, as well as parents paying for their children’s college education.

Given the number of different higher education credits and deductions, the IRS reminds taxpayers to carefully review eligibility requirements so they don’t overlook these important college benefits. Tax benefits include the following:

• The American Opportunity Tax Credit helps pay for the first four years of post-secondary education. Tuition, required enrollment fees, books and other required course materials generally qualify, and eligible students must be enrolled at least half time. Qualifying expenses of $4,000 or more in 2011 can earn a taxpayer the maximum credit of $2,500 per student per year. Even taxpayers who owe no tax can get a payment of the credit of up to $1,000 for each eligible student. The credit is claimed on Form 8863. But the IRS warns taxpayers to avoid an often-costly tax scam, currently being promoted widely to senior citizens, low-income families and church members falsely claiming that refunds based on the credit are available, even if they’re not currently enrolled in college and even if they went to school decades ago. In addition, some international students, normally considered nonresident aliens for tax purposes, have been improperly advised that they qualify for the credit.
• The Lifetime Learning Credit, limited to $2,000 per taxpayer per year, can be claimed based on tuition and required enrollment fees paid for any level of post-secondary education. Because of differences between the two credits and the fact that the American Opportunity Tax Credit usually yields greater tax savings at the undergraduate level, the Lifetime Learning Credit may be particularly helpful to graduate students, students taking only one course and those who are not pursuing a degree. The Lifetime Learning Credit is also claimed on Form 8863.
• The tuition and fees deduction is available for both full-time and part-time students at all levels of post-secondary education. The deduction of up to $4,000 is claimed on Form 8917. 

Each year, a student normally receives a Form 1098-T from their college showing tuition payments and other information.

Though a taxpayer often qualifies for more than one of these benefits, he or she can only claim one of them for a particular student in 2011. Income limits and other special rules apply to each of these benefits.

Often, tax credits are more valuable, because they reduce the amount of tax owed, whereas deductions reduce the income on which tax is figured.

Besides these tax benefits, parents, students and former students who made student loan payments during 2011 can deduct up to $2,500 of student loan interest. Normally, borrowers receive from their financial institution Form 1098-E showing student loan interest paid for the year. This deduction is claimed on Form 1040 Line 33 or Form 1040A Line 18. Income limits and other special rules apply.

The student loan interest deduction, the tuition and fees deduction and both tax credits can be claimed by eligible taxpayers, regardless of whether they itemize deductions on Schedule A. As always we are available to help. Contact us today.
ABA Tax Accounting
Amare Berhie, Tax Accountant
abatax81@gmail.com
Direct 612-282-3200
Toll free 866-936-0430
http://abatax81.blogspot.com

Proposed law would limit delinquent taxpayers' overseas travel

To contact us Click HERE

International Tax Services - A proposed law would give the Internal Revenue Service more latitude in starting a process that would result in a U.S. citizen's passport being revoked or denied if he or she owes a substantial amount in back taxes. There are exceptions under the law, including if the taxpayer is repaying the debt under a payment plan. Forbes (4/24) To read more click here. Looking for an experienced and IRS licensed tax preparer? For no obligation free consultation contact us today!
ABA Tax Accounting
Abatax81@gmail.com
Direct 612-282-3200
Toll free 866-936-0430
http://abatax81.blogspot.com

Start Planning Now for Next Year's Tax Return

To contact us Click HERE

The tax deadline may have just passed but planning for next year can start now. The IRS reminds taxpayers that being organized and planning ahead can save time, money and headaches in 2013. Here are eight things you can do now to make next April 15 easier.
1.     Adjust your withholding - Why wait another year for a big refund? Now is a good time to review your withholding and make adjustments for next year, especially if you'd prefer more money in each paycheck this year. If you owed at tax time, perhaps you'd like next year's tax payment to be smaller. Use IRS's Withholding Calculator at www.irs.gov or Publication 919, How Do I Adjust My Tax Withholding? 2.     Store your return in a safe place - Put your 2011 tax return and supporting documents somewhere secure so you'll know exactly where to find them if you receive an IRS notice and need to refer to your return. If it is easy to find, you can also use it as a helpful guide for next year's return. 3.     Organize your recordkeeping - Establish a central location where everyone in your household can put tax-related records all year long. Anything from a shoebox to a file cabinet works. Just be consistent to avoid a scramble for misplaced mileage logs or charity receipts come tax time. 4.     Review your paycheck - Make sure your employer is properly withholding and reporting retirement account contributions, health insurance payments, charitable payroll deductions and other items. These payroll adjustments can make a big difference on your bottom line. Fixing an error in your paycheck now gets you back on track before it becomes a huge hassle. 5.     Shop for a tax professional early - If you use a tax professional to help you strategize, plan and make financial decisions throughout the year, then search now. You'll have more time when you're not up against a deadline or anxious for your refund. Choose a tax professional wisely. You are ultimately responsible for the accuracy of your own return regardless of who prepares it. Find tips for choosing a preparer atwww.irs.gov. 6.     Prepare to itemize deductions - If your expenses typically fall just below the amount to make itemizing advantageous, a bit of planning to bundle deductions into 2012 may pay off. An early or extra mortgage payment, pre-deadline property tax payments, planned donations or strategically paid medical bills could equal some tax savings. See the Schedule A instructions for expenses you can deduct if you're itemizing and then prepare an approach that works best for you. 7.     Strategize tuition payments - The American Opportunity Tax Credit, which offsets higher education expenses, is set to expire after 2012. It may be beneficial to pay 2013 tuition in 2012 to take full advantage of this tax credit, up to $2,500, before it expires. For more information, see IRS Publication 970, Tax Benefits for Education. 8.     Keep up with changes - Find out about tax law changes, helpful tips and IRS announcements all year by reading ABA Tax Accounting blogs. The ABA Tax issues tips regularly throughout during the tax season and outside the tax season.
 The IRS emphasizes that each household's financial circumstances are different so it's important to fully consider your specific situation and goals before making large financial decisions. Looking for an experienced and licensed by IRS tax preparer? As always we are available to help. For no obligation free consultation contact us today! ABA Tax Accounting Abatax81@gmail.com Direct 612-282-3200 Toll free 866-936-0430 http://abatax81.blogspot.com

Help! What If I Can't Make My IRS Payment?

To contact us Click HERE

If you are one of thousands of taxpayers who are in a payment plan with the IRS, but due to current economic conditions cannot make your payment, you have options. If you have lost your job and your entire financial situation has changed, you need to contact the IRS and be prepared to lay out your new situation. If you expenses have not changed and your income is all that has changed, you may just need proof (like a termination letter) you no longer have a job.

If your expenses have changed as well, you may need to provide proof of those changes as well. When you talk to the IRS, only say what has happened and answer honestly and completely any questions they may ask. Do not volunteer information, except to briefly explain your situation. Don't get chatty, even if the person you talk is friendly and personable, remember, they work for the IRS. You could make one simple statement that could cause you problems.

If your liability is substantial and you need assistance, contact an Enrolled Agent, who can represent you before the IRS. What ever you do, do not ignore your situation. If you default you payment plan, the IRS can levy your bank accounts, retirement accounts and file a lien even if your tax liability is low. Call either the IRS or an Enrolled Agent before the IRS makes a bad financial situation even worse.

Last-Minute Tips for Individuals Still Working on Their Tax Returns

To contact us Click HERE
Tax Preparation Services – The tax filing deadline is just around the corner. The IRS has some tips to help taxpayers still working on their tax returns:
• File electronically most taxpayers file electronically.
• Check the identification numbers carefully.
• Double-check your figures
• Check the tax tables
• Sign your form you must sign and date your return. Both spouses must sign a joint return, even if only one had income.
• Send your return to the right address
• Pay electronically electronic payment options are convenient, safe and secure methods for paying taxes.
• Follow instructions when mailing a payment People sending a payment should make the check payable to the “United States Treasury”
• File or request an extension to file on time By the April 17 due date, you should either file a return or request an extension of time to file. Remember, the extension of time to file is not an extension of time to pay.

Still looking for a tax preparer to help you with prior years or this year’s tax return? We are available to help. Contact us today.
ABA Tax Accounting
abatax81@gmail.com
amare@abataxaccounting.com
Direct 612-282-3200
Toll free 866-936-0430
http://abatax81.blogspot.com

Amended Returns: Facts

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Tax Preparation Services – If you discover an error on your federal income tax return after you e-filed or mailed it, you may want or need to amend your return. Perhaps you are eligible for a deduction or credit and you missed it the first time?

Here are key points the IRS wants you to know about when considering whether to file an amended federal income tax return.

• Use Form 1040X, Amended U.S. Individual Income Tax Return, to file an amended income tax return.
• Use Form 1040X to correct previously filed Forms 1040, 1040A or 1040EZ. An amended return cannot be e-filed; you must file it by paper.
• Generally, you do not need to file an amended return to correct math errors. The IRS will automatically make that correction. Also, do not file an amended return because you forgot to attach tax forms such as W-2s or schedules. The IRS normally will send a request asking for those.
• Be sure to enter the year of the return you are amending at the top of Form 1040X. Generally, you must file Form 1040X within three years from the date you filed your original return or within two years from the date you paid the tax, whichever is later.
• If you are amending more than one tax return, prepare a 1040X for each return and mail them in separate envelopes to the appropriate IRS campus. The 1040X instructions list the addresses for the campuses.
• If the changes involve another schedule or form, you must attach that schedule or form to the amended return.
• If you are filing to claim an additional refund, wait until you have received your original refund before filing Form 1040X. You may cash that check while waiting for any additional refund.
• If you owe additional 2011 tax, file Form 1040X and pay the tax before the due date to limit interest and penalty charges that could accrue on your account. Interest is charged on any tax not paid by the due date of the original return, without regard to extensions.

Still looking for a tax preparer to help you with prior years or this year’s tax return? We are available to help. Contact us today.
ABA Tax Accounting
abatax81@gmail.com
Direct 612-282-3200
Toll free 866-936-0430
http://abatax81.blogspot.com

Managing Your Tax Records After You Have Filed

To contact us Click HERE
Tax Preparation Services – Keeping good records after you file your taxes is a good idea, as they will help you with documentation and substantiation if the IRS selects your return for an audit. Here are five tips from the IRS about keeping good records.• Normally, tax records should be kept for three years.• Some documents — such as records relating to a home purchase or sale, stock transactions, IRA and business or rental property — should be kept longer.• In most cases, the IRS does not require you to keep records in any special manner. Generally speaking, however, you should keep any and all documents that may have an impact on your federal tax return.• Records you should keep include bills, credit card and other receipts, invoices, mileage logs, canceled, imaged or substitute checks, proofs of payment, and any other records to support deductions or credits you claim on your return• More information on what kinds of records to keep, see IRS Publication 552.
Still looking for a tax preparer to help you with prior years or this year’s tax return? We are available to help. Contact us today.ABA Tax AccountingAbatax81@gmail.comDirect 612-282-3200Toll free 866-936-0430http://abatax81.blogspot.com

Proposed law would limit delinquent taxpayers' overseas travel

To contact us Click HERE
International Tax Services - A proposed law would give the Internal Revenue Service more latitude in starting a process that would result in a U.S. citizen's passport being revoked or denied if he or she owes a substantial amount in back taxes. There are exceptions under the law, including if the taxpayer is repaying the debt under a payment plan. Forbes (4/24) To read more click here. Looking for an experienced and IRS licensed tax preparer? For no obligation free consultation contact us today!
ABA Tax Accounting
Abatax81@gmail.com
Direct 612-282-3200
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Start Planning Now for Next Year's Tax Return

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Thetax deadline may have just passed but planning for next year can start now. TheIRS reminds taxpayers that being organized and planning ahead can save time,money and headaches in 2013. Here are eight things you can do now to make nextApril 15 easier.
1.    Adjust your withholding -Why wait another year for a big refund? Now is a good time toreview your withholding and make adjustments for next year, especially if you'dprefer more money in each paycheck this year. If you owed at tax time, perhapsyou'd like next year's tax payment to be smaller. Use IRS's WithholdingCalculator at www.irs.gov orPublication 919, How Do I Adjust My Tax Withholding?2.    Store your return in a safeplace - Putyour 2011 tax return and supporting documents somewhere secure so you'll knowexactly where to find them if you receive an IRS notice and need to refer toyour return. If it is easy to find, you can also use it as a helpful guide fornext year's return.3.    Organize your recordkeeping - Establisha central location where everyone in your household can put tax-related recordsall year long. Anything from a shoebox to a file cabinet works. Just beconsistent to avoid a scramble for misplaced mileage logs or charity receiptscome tax time.4.    Review your paycheck -Make sure your employer is properly withholding and reportingretirement account contributions, health insurance payments, charitable payrolldeductions and other items. These payroll adjustments can make a big differenceon your bottom line. Fixing an error in your paycheck now gets you back ontrack before it becomes a huge hassle.5.    Shop for a tax professionalearly - If youuse a tax professional to help you strategize, plan and make financialdecisions throughout the year, then search now. You'll have more time whenyou're not up against a deadline or anxious for your refund. Choose a taxprofessional wisely. You are ultimately responsible for the accuracy of yourown return regardless of who prepares it. Find tips for choosing a preparer atwww.irs.gov.6.    Prepare to itemize deductions -If your expenses typically fall just below the amount to makeitemizing advantageous, a bit of planning to bundle deductions into 2012 maypay off. An early or extra mortgage payment, pre-deadline property taxpayments, planned donations or strategically paid medical bills could equalsome tax savings. See the Schedule A instructions for expenses you can deductif you're itemizing and then prepare an approach that works best for you.7.    Strategize tuition payments -The American Opportunity Tax Credit, which offsets highereducation expenses, is set to expire after 2012. It may be beneficial to pay2013 tuition in 2012 to take full advantage of this tax credit, up to $2,500,before it expires. For more information, see IRS Publication 970, Tax Benefitsfor Education.8.    Keep up with changes -Find out about tax law changes, helpful tips and IRSannouncements all year by reading ABA Tax Accounting blogs. The ABA Tax issuestips regularly throughout during the tax season and outside the tax season.
 The IRS emphasizes thateach household's financial circumstances are different so it's important tofully consider your specific situation and goals before making large financialdecisions. Looking for anexperienced and licensed by IRS tax preparer? As always we are available tohelp. For no obligation free consultation contact us today!ABA TaxAccountingAbatax81@gmail.comDirect612-282-3200Tollfree 866-936-0430http://abatax81.blogspot.com

Facts to Know if You Receive an IRS Letter or Notice

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Tax Preparation Services – The IRS sends millions of letters and notices to taxpayers for a variety of reasons. Many of these letters and notices can be dealt with simply, without having to call or visit an IRS office.
Here are eight things to know about IRS notices and letters.
1. There are a number of reasons why the IRS might send you a notice. Notices may request payment, notify you of account changes, or request additional information. A notice normally covers a very specific issue about your account or tax return.
2. Each letter and notice offers specific instructions on what action you need to take.
3. If you receive a correction notice, you should review the correspondence and compare it with the information on your return.
4. If you agree with the correction to your account, then usually no reply is necessary unless a payment is due or the notice directs otherwise.
5. If you do not agree with the correction the IRS made, it is important to respond as requested. You should send a written explanation of why you disagree and include any documents and information you want the IRS to consider along with the bottom tear-off portion of the notice. Mail the information to the IRS address shown in the upper left of the notice. Allow at least 30 days for a response.
6. Most correspondence can be handled without calling or visiting an IRS office. However, if you have questions, call the telephone number in the upper right of the notice. Have a copy of your tax return and the correspondence available when you call to help the IRS respond to your inquiry.
7. It’s important to keep copies of any correspondence with your records.
8. IRS notices and letters are sent by mail. The IRS does not correspond by email about taxpayer accounts or tax returns.
For more information about IRS notices and bills, see Publication 594 or contact us today. As always we are available to help.
ABA Tax Accounting
Abatax81@gmail.com
Direct 612-282-3200
Toll free 866-936-0430
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Facts to know Failure to File or Pay Penalties

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Tax Preparation Services – The number of electronic filing and payment options increasesevery year, which helps reduce your burden and also improves the timeliness andaccuracy of tax returns. When it comes to filing your tax return, however, thelaw provides that the IRS can assess a penalty if you fail to file, fail to payor both.Here are eight important points about the twodifferent penalties you may face if you file or pay late.

1.  If you do not file bythe deadline, you might face a failure-to-file penalty. If you do not pay bythe due date, you could face a failure-to-pay penalty.
2. The failure-to-filepenalty is generally more than the failure-to-pay penalty. So if you cannot payall the taxes you owe, you should still file your tax return on time and pay asmuch as you can, then explore other payment options. The IRS will work withyou.
3. The penalty for filinglate is usually 5 percent of the unpaid taxes for each month or part of a monththat a return is late. This penalty will not exceed 25 percent of your unpaidtaxes.
4. If you file yourreturn more than 60 days after the due date or extended due date, the minimumpenalty is the smaller of $135 or 100 percent of the unpaid tax.
5. If you do not pay yourtaxes by the due date, you will generally have to pay a failure-to-pay penaltyof ½ of 1 percent of your unpaid taxes for each month or part of a month afterthe due date that the taxes are not paid. This penalty can be as much as 25percent of your unpaid taxes.
6. If you request anextension of time to file by the tax deadline and you paid at least 90 percentof your actual tax liability by the original due date, you will not face afailure-to-pay penalty if the remaining balance is paid by the extended duedate.
7. If both thefailure-to-file penalty and the failure-to-pay penalty apply in any month, the5 percent failure-to-file penalty is reduced by the failure-to-pay penalty.However, if you file your return more than 60 days after the due date orextended due date, the minimum penalty is the smaller of $135 or 100 percent ofthe unpaid tax.
8. You will not have topay a failure-to-file or failure-to-pay penalty if you can show that you failedto file or pay on time because of reasonable cause and not because of willfulneglect. 

As always we areavailable to help.ABA Tax AccountingAbatax81@gmail.comDirect 612-282-3200Toll free 866-936-0430http://abatax81.blogspot.com