Rona Law Firm

How Long Should I Keep Records? The length of time you should keep a document depends on the action, expense, or event which the document records. Generally, you must keep your records that support an item of income, deduction or credit shown on your tax return until the period of limitations for that tax return runs out. The period of limitations is the period of time in which you can amend your tax return to claim a credit or refund, or the IRS can assess additional tax. ...The information below reflects the periods of limitations that apply to income tax returns. Unless otherwise stated, the years refer to the period after the return was filed. Returns filed before the due date are treated as filed on the due date. Note: Keep copies of your filed tax returns. They help in preparing future tax returns and making computations if you file an amended return. Period of Limitations that apply to income tax returns: 1. Keep records for 3 years if situations (4), (5), and (6) below do not apply to you. 2. Keep records for 3 years from the date you filed your original return or 2 years from the date you paid the tax, whichever is later, if you file a claim for credit or refund after you file your return. 3. Keep records for 7 years if you file a claim for a loss from worthless securities or bad debt deduction. 4. Keep records for 6 years if you do not report income that you should report, and it is more than 25% of the gross income shown on your return. 5. Keep records indefinitely if you do not file a return. 6. Keep records indefinitely if you file a fraudulent return. 7. Keep employment tax records for at least 4 years after the date that the tax becomes due or is paid, whichever is later.

These summer activities can affect next year’s tax returns! -Summertime activities often affect the tax returns people file the following year. Here are some things taxpayers do during the summer along with tips they should consider now: -Getting married.... Newlyweds should report any name change to the Social Security Administration. They should also report an address change to the United States Postal Service, their employers, and the IRS. -Sending kids to summer day camp. Unlike overnight camps, the cost of summer day camp may count towards the child and dependent care credit. -Working part-time. While summertime and part-time workers may not earn enough to owe federal income tax, they should remember to file a return. They’ll need to file early next year to get a refund for taxes withheld from their checks this summer. #IRStaxtip

IRS Gives Tax Relief to Victims of Hurricane Matthew North Carolina storm victims will have until March 15, 2017, to file certain individual and business tax returns and make certain tax payments, with similar relief expected soon for Hurricane Matthew victims in other states, the Internal Revenue Service announced today. All workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization also qualify for relief. Locations... in other states are expected to be added in coming days, based on damage assessments by FEMA. The tax relief postpones various tax filing and payment deadlines that occurred starting on Oct. 4, 2016. As a result, affected individuals and businesses will have until March 15, 2017, to file returns and pay any taxes that were originally due during this period. This includes the Jan. 17 deadline for making quarterly estimated tax payments. For individual tax filers, it also includes 2015 income tax returns that received a tax-filing extension until Oct. 17, 2016. The IRS noted, however, that because tax payments related to these 2015 returns were originally due on April 18, 2016, those are not eligible for this relief. Rona Law Firm can assist with penalty relief to any taxpayer with an IRS address of record located in the disaster area. In addition, any taxpayer who lives outside the disaster area but whose records necessary to meet a deadline occurring during the postponement period are located in the affected area. The tax relief is part of a coordinated federal response to the damage caused by severe storms and flooding and is based on local damage assessments by FEMA.

Rona Law Firm Reminds Extension Filers of the Oct.17 Deadline Millions of taxpayers ask for an extra six months to file their taxes every year. If you are one of them, then you should know that Monday, Oct.17 is the extension deadline in 2016. This is so because Oct.15 falls on a Saturday.

How Long Should I Keep Records? The length of time you should keep a document depends on the action, expense, or event which the document records. Generally, you must keep your records that support an item of income, deduction or credit shown on your tax return until the period of limitations for that tax return runs out. The period of limitations is the period of time in which you can amend your tax return to claim a credit or refund, or the IRS can assess additional tax. ...The information below reflects the periods of limitations that apply to income tax returns. Unless otherwise stated, the years refer to the period after the return was filed. Returns filed before the due date are treated as filed on the due date. Note: Keep copies of your filed tax returns. They help in preparing future tax returns and making computations if you file an amended return. Period of Limitations that apply to income tax returns: 1. Keep records for 3 years if situations (4), (5), and (6) below do not apply to you. 2. Keep records for 3 years from the date you filed your original return or 2 years from the date you paid the tax, whichever is later, if you file a claim for credit or refund after you file your return. 3. Keep records for 7 years if you file a claim for a loss from worthless securities or bad debt deduction. 4. Keep records for 6 years if you do not report income that you should report, and it is more than 25% of the gross income shown on your return. 5. Keep records indefinitely if you do not file a return. 6. Keep records indefinitely if you file a fraudulent return. 7. Keep employment tax records for at least 4 years after the date that the tax becomes due or is paid, whichever is later.

6 Facts about Late Filing and Paying Penalties 1. Two penalties may apply. One penalty is for filing late and one is for paying late. They can add up fast. Interest accrues on top of the penalties. 2. Penalty for late filing. If you file your 2015 tax return more than 60 days after the due date or extended due date, the minimum penalty is $205 or, if you owe less than $205, 100 percent of the unpaid tax. Otherwise, the penalty can be as much as five percent of your unpaid ta...xes each month up to a maximum of 25 percent. 3. Penalty for late payment. The penalty is generally 0.5 percent of your unpaid taxes per month. It can build up to as much as 25 percent of your unpaid taxes. 4. Combined penalty per month. If both the late filing and late payment penalties apply, the maximum amount charged for the two penalties is 5 percent per month. 5. Late payment penalty may not apply. If you requested an extension of time to file your income tax return by the tax due date and paid at least 90 percent of the taxes you owe, you may not face a failure-to-pay penalty. However, you must pay the remaining balance by the extended due date. You will owe interest on any taxes you pay after the April 18 due date. 6. Payment Options. There are payment options based on your financial ability to pay. (irs.gov)

IRS Provides Tax Relief to Louisiana Storm Victims Louisiana storm victims will have until Jan. 17, 2017, to file certain individual and business tax returns and make certain tax payments, the Internal Revenue Service announced today. All workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization also qualify for relief. Following this week’s disaster declaration for individual assistance issued by the Federal Emergen...cy Management Agency (FEMA), the IRS said that affected taxpayers in East Baton Rouge, Livingston, St. Helena and Tangipahoa parishes will receive this and other special tax relief. Other locations in Louisiana and other states may be added in coming days, based on damage assessments by FEMA. The tax relief postpones various tax filing and payment deadlines that occurred starting on Aug. 11, 2016. As a result, affected individuals and businesses will have until Jan. 17, 2017 to file returns and pay any taxes that were originally due during this period. This includes the Sept. 15 deadline for making quarterly estimated tax payments. For individual tax filers, it also includes 2015 income tax returns that received a tax-filing extension until Oct. 17, 2016. The IRS noted, however, that because tax payments related to these 2015 returns were originally due on April 18, 2016, they are not eligible for this relief. A variety of business tax deadlines are also affected including the Sept. 15 deadline for corporation and partnership returns on extension and the Oct. 31 deadline for quarterly payroll and excise tax returns. In addition, the IRS is waiving late-deposit penalties for federal payroll and excise tax deposits normally due on or after Aug. 11 and before Aug. 26 if the deposits are made by Aug. 26, 2016. Details on available relief can be found on the disaster relief page on IRS.gov.

Rona Law Firm reminds you to take advantage of Tax Free Weekend if you live in the following states! http://www.taxadmin.org/sales-tax-holidays

Getting Married? How a Summer Wedding Can Affect Your Taxes 1) Name change. The names and Social Security numbers on your tax return must match your Social Security Administration records. If you change your name, report it to the SSA. 2) Change tax withholding. A change in your marital status means you must give your employer a new Form W-4, Employee's Withholding Allowance Certificate. If you and your spouse both work, your combined incomes may move you into a higher tax br...acket or you may be affected by the Additional Medicare Tax. 3) Address change. To do that, send the IRS Form 8822, Change of Address. 4) Tax filing status. If you’re married as of Dec. 31, that’s your marital status for the whole year for tax purposes. You and your spouse can choose to file your federal income tax return either jointly or separately each year. You may want to figure the tax both ways to find out which status results in the lowest tax. 5) Select the right tax form. Choosing the right income tax form can help save money. Newly married taxpayers may find that they now have enough deductions to itemize on their tax returns. You must claim itemized deductions on a Form 1040, not a Form 1040A or Form 1040EZ.

BEWARE OF IRS TAX SCAMMERS https://www.youtube.com/watch?v=OPrFbzMNHb8

While there has been an enormous wave of support across the country for the victims and families of the recent tragedies, it is common for scammers to take advantage of this generosity by impersonating charities to get money. Rona Law Firm cautions donors to follow these tips: 1) Only donate to recognized charities.... Be wary of charities with names that are similar to familiar or nationally known organizations. The IRS website at IRS.gov has a search feature, Exempt Organizations Select Check, through which people may find qualified charities; donations to these charities may be tax-deductible. 2) Don’t give out personal financial information. Avoid providing information such as Social Security numbers, credit card, bank account numbers, or passwords. 3) Don’t give or send cash. For security and tax record purposes, contribute by check or credit card or another way that provides documentation of the gift. For additional information, see IRS Publication 526, Charitable Contributions, available on IRS.gov.

6 Facts about Late Filing and Paying Penalties 1. Two penalties may apply. One penalty is for filing late and one is for paying late. They can add up fast. Interest accrues on top of the penalties. 2. Penalty for late filing. If you file your 2015 tax return more than 60 days after the due date or extended due date, the minimum penalty is $205 or, if you owe less than $205, 100 percent of the unpaid tax. Otherwise, the penalty can be as much as five percent of your unpaid ta...xes each month up to a maximum of 25 percent. 3. Penalty for late payment. The penalty is generally 0.5 percent of your unpaid taxes per month. It can build up to as much as 25 percent of your unpaid taxes. 4. Combined penalty per month. If both the late filing and late payment penalties apply, the maximum amount charged for the two penalties is 5 percent per month. 5. Late payment penalty may not apply. If you requested an extension of time to file your income tax return by the tax due date and paid at least 90 percent of the taxes you owe, you may not face a failure-to-pay penalty. However, you must pay the remaining balance by the extended due date. You will owe interest on any taxes you pay after the April 18 due date. 6. Payment Options. There are payment options based on your financial ability to pay. (irs.gov)

Happy tax day 2016 from Rona Law Firm!

10 DAYS LEFT TO FILE YOUR TAXES, NEED MORE TIME? The April 18 tax deadline is coming up. If you need more time to file your taxes, you can get an automatic six-month extension from the IRS. 1. Use IRS Free File to file an extension. You can use IRS Free File to e-file your extension request for free. Free File is only available through IRS.gov. You must e-file the extension request by midnight April 18. ... 2. Use Form 4868. You can also request an extension by filling out Form 4868 (Application for Automatic Extension of Time to File U.S. Individual Income Tax Return). You must mail this form to the IRS by April 18. Keep in mind, more time to file is NOT more time to pay. An extension to file will give you until Oct. 17 to file your taxes. It does not, however, give you more time to pay your taxes. You will be charged interest on any tax that you don’t pay on time. You may also owe a penalty if you pay your tax late. Interest is normally charged on any unpaid tax.

Change Your Name? It Can Affect Your Taxes A name change can have an impact on your taxes. All the names on your tax return must match Social Security Administration records. A name mismatch can delay your refund and cause issues with Power of Attorney documents. Here’s what you should know if you changed your name: 1) Report Name Changes. Did you get married and are now using your new spouse’s last name or hyphenated your last name? Did you divorce and go back to using you...r former last name? In either case, you should notify the SSA of your name change. That way, your new name on your IRS records will match up with your SSA records. 2) Make Dependent’s Name Change. Notify the SSA if your dependent had a name change. For example, this could apply if you adopted a child and the child’s last name changed. 3) Get a New Card. File Form SS-5, Application for a Social Security Card, to notify SSA of your name change. You can get the form on SSA.gov or call 800-772-1213 to order it. Your new card will show your new name with the same SSN you had before. 4) Report Changes in Circumstances when they happen. If you enrolled in health insurance coverage through the Health Insurance Marketplace you may receive the benefit of advance payments of the premium tax credit. These are paid directly to your insurance company to lower your monthly premium. Report changes in circumstances, such as a name change, a new address and a change in your income or family size to your Marketplace when they happen throughout the year. Reporting the changes will help you avoid getting too much or too little advance payment of the premium tax credit.

WAYS TO PAY YOUR TAX BILL If you owe federal tax, the IRS offers many easy ways to pay. Make sure you pay by the April 18 deadline, even if you get an extension of time to file your 2015 tax return. You can get an automatic extension of time to file when you make an electronic payment by April 18. (irs.gov) 1) IRS Direct Pay ... 2) Pay by Debit or Credit Card 3) Use IRS2Go 4) Pay When You E-file If you cannot afford to pay or have questions, contact Rona Law Firm for a free consultation.

E-FILE YOUR TAXES FOR FREE. You can e-file for free through IRS Free File. Free File is only available on IRS.gov. You may qualify to have your taxes e-filed for free through IRS volunteer programs. Volunteer Income Tax Assistance (VITA), offers free tax preparation if you earned $54,000 or less. Tax Counseling for the Elderly, or TCE, generally helps people who are age 60 or older. You can buy commercial tax software to e-file or ask your tax preparer to e-file your tax return. Most paid preparers are required to file their clients’ returns electronically.

The first thing you should do if you win the $1.4-billion Powerball lottery? Hire a tax attorney. http://www.businessinsider.com/mark-cuban-advice-powerball-

Because the goodwill of those we serve is the foundation of our success, it's a pleasure to say Thank You as we wish you happiness, health, and prosperity. Happy holidays from Rona Law Firm.

2016 Standard Mileage Rate for Business Miles Drops to 0.54 The Internal Revenue Service issued the 2016 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning on Jan. 1, 2016, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:... 54 cents per mile for business miles driven, down from 57.5 cents for 2015 19 cents per mile driven for medical or moving purposes, down from 23 cents for 2015 14 cents per mile driven in service of charitable organizations

Direct Deposit: The Best and Fastest Way to Get Your Refund The best and fastest way to get your tax refund is to have it electronically deposited for free into your financial account. The IRS program is called direct deposit. You can use it to deposit your refund into one, two or even three accounts. Eight out of 10 taxpayers get their refunds by using Direct Deposit. It is simple, safe and secure. This is the same electronic transfer system used to deposit nearly 98 percent... of all Social Security and Veterans Affairs benefits into millions of accounts. When taxpayers combine direct deposit and IRS e-file to transmit their tax returns, the vast majority will receive their refunds in 21 days or less. Direct deposit is easy to use. Just select it as your refund method through your tax software and type in the account number and routing number. Or, tell your tax preparer you want direct deposit. You can even use direct deposit if you are one of the few people still filing by paper. Be sure to double check your entry to avoid errors.

This Thanksgiving weekend, RONA LAW FIRM wishes you and your loved ones all the best for a joyous and safe holiday. We are grateful for your interest and support.

IRS TAX TIPS FOR DEDUCTING GIFTS TO CHARITY The holiday season often prompts people to give money or property to charity. If you plan to give and want to claim a tax deduction, there are a few tips you should know before you give. For instance, you must itemize your deductions. Here are six more tips that you should keep in mind:... 1. Give to qualified charities. You can only deduct gifts you give to a qualified charity. Use the IRS Select Check tool to see if the group you give to is qualified. You can deduct gifts to churches, synagogues, temples, mosques and government agencies. This is true even if Select Check does not list them in its database. 2. Keep a record of all cash gifts. Gifts of money include those made in cash or by check, electronic funds transfer, credit card and payroll deduction. You must have a bank record or a written statement from the charity to deduct any gift of money on your tax return. This is true regardless of the amount of the gift. The statement must show the name of the charity and the date and amount of the contribution. Bank records include canceled checks, or bank, credit union and credit card statements. If you give by payroll deductions, you should retain a pay stub, a Form W-2 wage statement or other document from your employer. It must show the total amount withheld for charity, along with the pledge card showing the name of the charity. 3. Household goods must be in good condition. Household items include furniture, furnishings, electronics, appliances and linens. These items must be in at least good-used condition to claim on your taxes. A deduction claimed of over $500 does not have to meet this standard if you include a qualified appraisal of the item with your tax return. 4. Additional records required. You must get an acknowledgment from a charity for each deductible donation (either money or property) of $250 or more. Additional rules apply to the statement for gifts of that amount. This statement is in addition to the records required for deducting cash gifts. However, one statement with all of the required information may meet both requirements. 5. Year-end gifts. Deduct contributions in the year you make them. If you charge your gift to a credit card before the end of the year it will count for 2015. This is true even if you don’t pay the credit card bill until 2016. Also, a check will count for 2015 as long as you mail it in 2015. 6. Special rules. Special rules apply if you give a car, boat or airplane to charity. If you claim a deduction of more than $500 for a noncash contribution, you will need to file another form with your tax return. Use Form 8283, Noncash Charitable Contributions to report these gifts. (irs.gov)

Rona Law Firm reminds clients that the earlier in the year they check their withholding, the easier it will be to get the right amount of tax withheld. Call today with any questions (818) 964-1829. Attorney, Narges Rona, offers free consultations!

Rona Law Firm reminds taxpayers to be mindful when selecting a tax professional to resolve their liabilities. Last month, the IRS reminded non-credentialed tax return preparers of major upcoming changes regarding who can represent clients in matters before the IRS beginning in 2016. Attorney, Narges Rona, has the expertise and credentials to handle both state and IRS tax matters.

Rona Law Firm has helped many taxpayers resolve their tax liabilities with IRS and state taxing agencies. Attorney, Narges Rona, has saved taxpayers thousands of dollars by settling their debt for a lot less. Avoid wage garnishments or bank levies, call Rona Law Firm for a free consultation today at (818) 964-1829!

Be aware of recent IRS phone scams! Taxpayers have received unsolicited calls from individuals demanding payment while fraudulently claiming to be from the IRS. Here are some important tips for taxpayers to know about the IRS: 1) Never asks for credit card, debit card or prepaid card information over the telephone. 2) Never insists that taxpayers use a specific payment method to pay tax obligations... 3) Never requests immediate payment over the telephone and will not take enforcement action immediately following a phone conversation. 4) Taxpayers usually receive prior notification of IRS enforcement action involving IRS tax liens or levies. See more

Tax Relief for Victims of Valley and Butte Fires in California Sacramento Victims of the Valley and Butte fires that took place beginning on September 12, 2015 in parts of California may qualify for tax relief from the Internal Revenue Service. Following recent disaster declarations for individual assistance issued by the Federal Emergency Management Agency, the IRS announced today that affected taxpayers in California will receive tax relief.... The President has declared Lake and Calaveras counties a federal disaster area. Individuals who reside or have a business in these counties may qualify for tax relief. The declaration permits the IRS to postpone certain deadlines for taxpayers who reside or have a business in the disaster area. For instance, certain deadlines falling on or after Sept. 12, and on or before January 15, 2016 have been postponed to January 15, 2016. This includes the Sept. 15 estimated tax deadline, the 2014 corporate and partnership returns on extension thru Sept. 15, and the Oct. 15 deadline for those who received an extension to file their 2014 return. In addition, the IRS is waiving the failure-to-deposit penalties for employment and excise tax deposits due on or after Sept. 12, as long as the deposits were made by Sept. 28, 2015. Penalties or interest will be abated only for taxpayers who have an original or extended filing, payment or deposit due date, including an extended filing or payment due date, that falls within the postponement period. Contact Rona Law Firm to assist you in requesting tax relief.

An IRS levy permits the legal seizure of your property to satisfy a tax debt. It can garnish wages, take money in your bank or other financial account, seize and sell your vehicle(s), real estate and other personal property. If you receive an IRS bill contact us immediately at (818) 964-1829.