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Individual Taxpayers: Seven Things to Do When an IRS Letter Arrives The IRS mails millions of letters to taxpayers every year for many reasons. Here are seven simple suggestions on how individuals can handle a letter or notice from the IRS: 1. Don’t panic. Simply responding will take care of most IRS letters and notices.... 2. Read the entire letter carefully. Most letters deal with a specific issue and provide specific instructions on what to do. 3. Compare it with the tax return. If a letter indicates a changed or corrected tax return, the taxpayer should review the information and compare it with their original return. 4. Only reply if necessary. There is usually no need to reply to a letter unless specifically instructed to do so, or to make a payment. 5. Respond timely. Taxpayers should respond to a letter with which they do not agree. They should mail a letter explaining why they disagree. They should mail their response to the address listed at the bottom of the letter. The taxpayer should include information and documents for the IRS to consider. The taxpayer should allow at least 30 days for a response. When a specific date is listed in the letter, there are two main reasons taxpayers should respond by that date: To minimize additional interest and penalty charges. To preserve appeal rights if the taxpayers doesn’t agree. 6. Don’t call. For most letters, there is no need to call the IRS or make an appointment at a taxpayer assistance center. If a call seems necessary, the taxpayer can use the phone number in the upper right-hand corner of the letter. They should have a copy of the tax return and letter on hand when calling. 7. Keep the letter. A taxpayer should keep copies of any IRS letters or notices received with their tax records.

For the third straight year, the Sikh American community is excited to celebrate the Rose Bowl Parade. The theme this year, "together we rise, embodies the spi...rit of Sikh American faith, tradition and community. The Golden Temple, featured on the float, symbolizes equality and tolerance. The four entrances to the temple, representing the four directions, symbolize the openness of the Sikhs to all people and religions. Each door bearing the word that is integral to the principles of Sikhism-- love, freedom, service, and justice. These are not just Sikh values, but also the best of what we all represent as Americans. #SikhAmericanFloat #PasadenaRoseParade #SikhFloat #Sikh #TheGoldenTemple #RoseParade #RoseParade2017 #SikhAmerican #UnitedSikhMission #PhoenixDecoratingCompany #SikhCoalition #SikhFloat2017 #SikhAmericanFloat2017

Looking for Work May Impact Your Taxes If you are looking for a job in the same line of work, you may be able to deduct some of your job search costs. Here are some key tax facts you should know about when searching for a new job: Same Occupation. Your expenses must be for a job search in your current line of work. You can’t deduct expenses for a job search in a new occupation. Résumé Costs. You can deduct the cost of preparing and mailing your résumé. Travel Expenses. If ...you travel to look for a new job, you may be able to deduct the cost of the trip. To deduct the cost of the travel to and from the area, the trip must be mainly to look for a new job. You may still be able to deduct some costs if looking for a job is not the main purpose of the trip. Placement Agency. You can deduct some job placement agency fees you pay to look for a job. First Job. You can’t deduct job search expenses if you’re looking for a job for the first time. Time Between Jobs. You can’t deduct job search expenses if there was a long break between the end of your last job and the time you began looking for a new one. Reimbursed Costs. Reimbursed expenses are not deductible. Schedule A. You normally deduct your job search expenses on Schedule A, Itemized Deductions. Claim them as a miscellaneous deduction. You can deduct the total miscellaneous deductions that are more than two percent of your adjusted gross income. Premium Tax Credit. If you receive advance payments of the premium tax credit, it is important that you report changes in circumstances such as changes in your income, a change in eligibility for other coverage, or a change of address to your Health Insurance Marketplace. Advance payments are paid directly to your insurance company and lower the out-of-pocket cost for your health insurance premiums. Reporting changes will help you get the proper type and amount of financial assistance so you can avoid getting too much or too little in advance. See more

IRS Urges Public to Stay Alert for Scam Phone Calls The IRS continues to warn consumers to guard against scam phone calls from thieves intent on stealing their money or their identity. Criminals pose as the IRS to trick victims out of their money or personal information. Here are several tips to help you avoid being a victim of these scams: Scammers make unsolicited calls. Thieves call taxpayers claiming to be IRS officials. They demand that the victim pay a bogus tax bill. ...Continue reading

IRS Tax Tips for Starting a Business When you start a business, a key to your success is to know your tax obligations. You may not only need to know about income tax rules, but also about payroll tax rules. Here are five IRS tax tips that can help you get your business off to a good start. 1. Business Structure. An early choice you need to make is to decide on the type of structure for your business. The most common types are sole proprietor, partnership and corporation. The...Continue reading

Six Tips on Who Should File a 2014 Tax Return Most people file their tax return because they have to, but even if you don’t, there are times when you should. You may be eligible for a tax refund and not know it. This year, there are a few new rules for some who must file. Here are six tax tips to help you find out if you should file a tax return: 1. General Filing Rules. Whether you need to file a tax return depends on a few factors. In most cases, the amount of your income,... your filing status and your age determine if you must file a tax return. For example, if you’re single and 28 years old you must file if your income was at least $10,150. Other rules may apply if you’re self-employed or if you’re a dependent of another person. There are also other cases when you must file. Go to IRS.gov/filing to find out if you need to file. 2. New for 2014: Premium Tax Credit. If you bought health insurance through the Health Insurance Marketplace in 2014, you may be eligible for the new Premium Tax Credit. You will need to file a return to claim the credit. If you purchased coverage from the Marketplace in 2014 and chose to have advance payments of the premium tax credit sent directly to your insurer during the year you must file a federal tax return. You will reconcile any advance payments with the allowable Premium Tax Credit. Your Marketplace will provide Form 1095-A, Health Insurance Marketplace Statement, to you by Jan. 31, 2015, containing information that will help you file your tax return. 3. Tax Withheld or Paid. Did your employer withhold federal income tax from your pay? Did you make estimated tax payments? Did you overpay last year and have it applied to this year’s tax? If you answered yes to any of these questions, you could be due a refund. But you have to file a tax return to get it. 4. Earned Income Tax Credit. Did you work and earn less than $52,427 last year? You could receive EITC as a tax refund if you qualify with or without a qualifying child. You may be eligible for up to $6,143. Use the 2014 EITC Assistant tool on IRS.gov to find out if you qualify. If you do, file a tax return to claim it. 5. Additional Child Tax Credit. Do you have at least one child that qualifies for the Child Tax Credit? If you don’t get the full credit amount, you may qualify for the Additional Child Tax Credit. 6. American Opportunity Credit. The AOTC is available for four years of post secondary education and can be up to $2,500 per eligible student. You or your dependent must have been a student enrolled at least half time for at least one academic period. Even if you don’t owe any taxes, you still may qualify. However, you must complete Form 8863, Education Credits, and file a return to claim the credit. Use the Interactive Tax Assistant tool on IRS.gov to see if you can claim the credit. Learn more by visiting the IRS’ Education Credits Web page.

Now same sex couple can file a joint return

This year starts with a new set of tax rules. Many important ones were not finalized until Jan 1, when the fate of the Bush tax cuts was finally decided. The IRS is going to accept the simple Federal returns from Jan 30 due to the late adoption of the tax rules and Complex returns including depreciation schedule is expected to begin from mid Feb or begining of Mar.

Now that President Obama has won a second term, we can’t rule out a rate hike for 2013. Republicans will continue to resist a rate increase on upper incomers, but the GOP’s bargaining position isn’t as strong as before the election. While Obama wants to raise rates on singles making over $200,000 and marrieds over $250,000, he’d likely have to settle for higher income thresholds.$500,000 or $1million. Upper incomers should consider this in their plans. Normally, it pays tax...Continue reading