Let’s be honest, taxes are confusing. Even when you’re working with a professional tax company, it’s easy to make a mistake and not put down something that might help you get more money back. Or if you’re working on your own, it can be tempting just to hurry through them.

Don’t do that! The first thing to keep in mind when you’re doing taxes is to start as early as you can. Many companies will send you your W-2 right away, and if you’re not sure, you can always contact your Human Resources department. If it’s your first time filing, you may want to give yourself even more time to make sure that you understand the process. There is another bonus to filing early -- often because so many people put it off, it’s pretty easy to get an early appointment with a professional to do your taxes.

Even if you did it right -- you filed your taxes early, and with the help of a trained tax professional, maybe you forgot something. Say you worked two jobs in the past year, but only put in one W-2. In that case, you would then need to file a tax amendment to add in your record of that second job, and your tax return would almost certainly go up. See, that’s a bonus! It can seem a little embarrassing to have to file an amendment on your return, but it really isn’t. Plus, the IRS gives you a little over three years to correct it and get your money. If you send them a corrected return after those years are up, you won’t get the money you might be owed.

If you don’t file an amendment, though, it can be a little more serious than not getting your money. Based on the error made, the IRS will cite it as either a fraudulent tax return or as a case of tax evasion. Neither of those are good -- there’s no reason not to fix a simple mistake like the amount of dependents you have, for instance.

When don’t you need to file an amendment? Obviously, when you’ve done everything right!

Well, maybe you did your return yourself, but in the process of getting everything together, you did your math wrong. That’s okay. The IRS automatically checks the numbers on every return they get anyway, and if it’s wrong, you’ll be notified. They’ll automatically recalculate and adjust what you may have thought your return would be. Yes, it might be a bit embarrassing to be told you did the math wrong, but if you prepared your own taxes and that was the only mistake made: congratulations!

Overall, if you have any questions about your return -- and whether you may need to file an amendment, don’t be afraid to talk to a trained tax professional. We want you to get the most out of your return, and it’s easier than you might think to prepare an amendment.

There're online websites that will fill everything in for you, as long as you provide a few key numbers. They’ll show you the forms, and you’ll know its right, but websites can’t really explain your personal tax documents to you. They can give you examples, but they can’t make them personal. Their calculations are correct, of course, but you don’t get much of an explanation for them either. Most websites only offer the basics -- so, for example, if you wanted to be able to track how your return was progressing, you’d have to pay a steep fee. Overall, these websites will get the job done, but if you end up with a lot of questions about your return, they’re not equipped to answer.

Excessive debts and foreclosures may push you into thinking that bankruptcy is the best solution.
This is a step that you should take after careful consultation with experts. Bankruptcy will stay on your financial record for a long time. Also, the updated Bankruptcy Law has made it difficult to file for bankruptcy. This law was passed in 2005.
Looking for a qualified team of professionals in Baton Rouge, LA to help you understand the intricacies of bankruptcy? iRefund has all the answers. Just visit http://irefundtax.com/index.php for more information.

How can you file for bankruptcy?

If you are faced with financial turmoil such as a foreclosure, declaring bankruptcy is the most suitable way to get rid of your financial drawbacks.

The process of filing for bankruptcy has several steps. As soon as you file, you will be required to provide a detailed explanation to the presiding bankruptcy trustee about how got into this crisis.

You will also be required by the bankruptcy court to file the list of your assets along with your debts with them.

Your assets are broadly classified as:

1. Exempt assets

2. Non-Exempt assets

The former type cannot be utilized to pay your debts. Examples include your personal items or some part of equity in your automobile or home etc.

The latter category consists of goods that can be seized. These goods can be sold to pay off your debts. Your residential property other than your primary home, boats, recreational vehicles etc are some of the articles that can be utilized for this purpose.

Once you have provided all the necessary information, a bankruptcy trustee is appointed with the task to ensure that your secured debt is paid in the set time period. In due course, the court will issue you a stay order that will keep creditors off your property. This will also stop them from pursuing a lawsuit to get your property.
What are Chapters 7 and 13?

You may choose between Chapter 7 and 13 according to your situation. The features of these both are as follows:

Chapter 7

This chapter provides you with a liquidation option. This means that you will be able to keep your exempted assets and all of your unsecured debts will be discharged. You may use your non-exempt assets will be used to pay secured debts. Any debts from child support or taxes etc will not be supported.

If you have a few assets and low income, then this is the best option for you.

Chapter 13

This chapter requires that you pay your debts over a specific time period of three to five years. This is carried out through a repayment plan. In this procedure, a trustee will be required to collect payments from you which will then be transferred to your creditors.

You will be able to keep your home and avoid foreclosure.

If you are interested in keeping your non-exempt property and avoid property seizure then this is the right option for you.

If you are looking for expert help to avoid a financial crisis, then iRefund has all the expertise to help you. We provide peerless services in all kinds of legal consultation in Baton Rouge, LA.

Unfortunately, not every marriage has a ‘happily ever after’. What should you do in case you decide to part ways? If you are interested in finding the right guidance in Baton Rouge, LA for innocent spouse relief, then we will be happy to help you.

The salient features of innocent spouse relief
iRefund can help you in applying for innocent spouse relief.

In order to request relief, you have to file form 8857 with the IRS as soon as you know of the tax liability. There is no need to fill in multiple forms as one form will provide coverage for several years. You may add a letter along with your form and any other information that you think is necessary. You may use the U.S. Postal Service anywhere in Baton Rouge, LA to send your form to the IRS.

If you are afraid to file for relief because of your partner’s reaction, you should know that contacting your spouse is the duty of the IRS. In due course, all your confidential details such as your current address and phone number will be kept private by the IRS.


After the case has been filed, it may take around six months before any kind of determination is established. During this time, the IRS will obtain all information about your taxes and will keep contacting your spouse. This rule also applies to cases of domestic violence and sexual abuse. Whatever the case, you should not refrain from filing for your current tax return.

In case your previous claim for innocent spouse relief was denied, you may still file a second time. For this purpose, you will have to provide additional information supporting your claim. However, you will not be awarded any tax court rights in filing for reconsideration.

Innocent spouse relief provides both partners with the advantage of filing for relief.

Do you qualify for innocent spouse relief?
In order to qualify for innocent spouse relief, you must meet the following requirements:

1. You must have a joint statement filed with your ex-partner. It is necessary that this application has an understatement of tax.

2. Your spouse’s over expenditure must be the reason for this understatement of taxes.

3. You must have proof that at the time of filing for joint return; you had no idea about the existence of an understatement of tax.

4. Establish the fact that it would be unfair to hold you responsible for the understatement of tax.

5. It is important that you file for relief within two years of the date that the IRS begins its collection activity opposed to you.

With flawless guidance provided by iRefund, you will have no trouble in understanding and applying for innocent spouse relief. Visit http://irefundtax.com/index.php for more information.

Given how tax laws are ever changing, it’d be no surprise if you too were confused while trying to comprehend the complex revisions. According to tax experts for small businesses, here are the top five issues you should be dealing with on an urgent basis.

The Affordable Care Act (ACA)

Healthcare’s been the number one issue to plague small business owners since 1986. Come 2015 and the ACA, both the cost and complications have increased at a time when you’d expect otherwise. Small business health insurance tax is the main concern right now in addition to the 30-hour workweek designation for full-time employees, the employer mandate, and the individual mandate. If you fail to provide the basic health insurance to your employees or even to report to the IRS regarding the coverage, you may be in for some serious tax penalties. For instance, if you run a business with more than 100 employees, then you have to guarantee health insurance for at least 70% of the staff employed on a full-time basis.


Tax Extenders

There are 50 tax breaks included in the proposed bill and according to one expert; you need to be prepared regarding whether your business has been exploiting any of these breaks. Your preparation must involve organizing all your records and bringing them up to date so that they are easy to access during the tax season, especially when you are considering ways to secure potential deductions. For that matter, accountability for everything from meals to the use of a personal vehicle is necessary. One solution to simplifying this record keeping is to use modern technologies; automating the process.

While breaks such as Section 179 that allows businesses to subtract the full price of qualifying software or equipment leased or purchased during the year; are ideal for small businesses owners; a lot of them were rushed into making purchases in the last two weeks of 2014 whereas a lot more missed out because they had no idea about it. And again, owners will have no idea until later during the year whether purchases made in 2015 would still be subject to it or not.

Online Sales

One of the changes anticipated for this is the Marketplace Fairness Act whereby the legislation is attempting to equal the odds among the brick-and-mortar stores and those involved in e-commerce. It hopes to achieve this by allowing states to collect and pay the state sales tax from online merchants who earn at least a million dollars every year.

Retirement

There are multiple developments under consideration or brought into effect on this one. Owners of small businesses who are considering or even offering a retirement plan currently would now have to take into consideration the myRA, the non-mandatory workplace savings program initiated by the U.S. Treasury this year. Other legislations too are about offering incentives for small businesses so that they’d begin providing for retirement plans as well.

Corporate Tax Rates

One of the key issues that small businesses would have to deal with is the corporate tax rate. A company that follows the structure of a corporation is required to pay a higher tax rate than a limited liability company or other business structures. Lowering the rates for them won’t be as beneficial in terms of tax advantages for the small businesses if there’s no change in personal tax rates.

They save Your Time

Most people who think they’d rather do their own taxes rather than investing in a pro; can relate to this point. Honestly, it’s not everyone’s piece of cake and it’s likely that you end up losing your peace of mind spending literally hours doing taxes, not being able to figure out the account particulars. If you are not skilled at the technical aspects for accounting, then hiring a professional is the best thing you can do.

They Help Avoid Pitfalls Associated with Tax Filing

Professionals are there to help you save money! Many people are perplexed when they find out that they have to pay some sort of penalty because well, they forget to meet the corporate tax deadline. This is not to suggest that they cannot make errors too. We all do, it’s just that they are less prone to do so.

They Assist With Future Audits

If you are lucky enough to strike a chord with a reliable financial advisor, particularly those who are experienced in tax issues, then you can benefit from the relationship in future too. They can be asked to check your financial dealings with your realtor, mortgage broker, banker, etc., giving you guidance for the whole year round. They can also answer your questions, personal or business-related, to make sure that you take smarter and tax-saving decisions.

They Know How to Reduce the Tax Amount or to Secure a Bigger Return

Majority of the people are not aware that they are allowed to deduct medical expenses under most conditions for a loved one if the person is not their dependent. Tax preparers, on the other hand, have an idea of loopholes where you can legally avoid paying extra tax.

They Are Up to Date with the Changes in Tax Law

Having the relevant credentials and knowledge base does not stop them from continuing to learn and staying abreast of what’s happening in the industry. It’s their forte after all; besides, they’ll only be as good as they claim if they are familiar with the current changes in the tax law pertaining to individuals and businesses alike. It’s a way they can verify if you are in compliance. That’s a bonus you can benefit from now, can’t you?

The property you own may be subject to certain types of losses during a tax year that you can use to deduct from your income. These include casualty and theft losses that cause damage to your house, your personal property, and even your vehicles. Losses of this type can only be used to reduce your income if you have no insurance coverage for those losses.

Casualty Losses

The term “casualty loss” may be confusing to some, but the definition is not that complicated. Very simply, a casualty loss is any type of loss or damage that causes you to incur some type of financial loss. This typically means a sudden or fortuitous loss as opposed to gradual deterioration or wear and tear. Examples of casualty losses include damage from a fire, windstorm, floods, hurricanes, or even damage from a volcanic eruption.

Theft Losses

Theft is a more commonly understood term, and as most people know, when someone takes something from another person without permission it is generally construed as theft. More specifically, it is the taking and removal of money or property with the intent to deprive the owner of it. In order for this type of loss to be deductible for tax purposes, the taking must be illegal.

How Much Can You Claim?

To determine the value of your loss, you must consider whether the property was destroyed. If so, then the value that you can claim as a deduction will be the cost to replace the damaged item, less depreciation and salvage value.

For items that are partially damaged or repairable, the amount of your loss will be considered the lesser of:

•  The adjusted basis of your property, or

• The decrease in fair market value of your property as a result of the casualty

• The amount of your theft loss is generally the adjusted basis of your property because the fair market value of your property immediately after the theft is considered to be zero.

When Can You Claim The Loss?

With some exceptions, casualty losses can only be claimed in the tax year that the loss occurred. Theft losses can be claimed in the tax year in which the loss was discovered.

While the rules regarding uninsured casualty and theft losses have many finer points, the basic concept is simple. If you have financial loss due to a casualty or theft, you may use this loss to reduce your taxable income.


If you are unsure if a loss you sustained over the last tax year will allow you to reduce your taxable income, be sure to contact the friendly and professional staff at IRefund.com. Our tax experts can provide you with the guidance you need and answer any questions you may have regarding uninsured casualty and theft losses.