Grace Forms Blog

Back Tax Help With Audits

The thing that usually gets people looking for back tax help is the dreaded audit.  But what exactly do you do when you get audited?  We have all heard the horror stories of the tax man wreaking havoc in people’s lives, so how do you prepare adequately for something like this?  Luckily, aside from our fantastic guide, we also thought we would provide a few tips for those who are facing this arduous process.

First of all, do not lie.  These people sniff out lies for a living, so what makes you think that you are going to get one by them?  All lying does is make things worse, just like mom always said.  What she did not tell you is that, if you lie, the IRS may use such unpleasant words as “fraud” when you meet with them, and then you need far more than back tax help–you need back tax representation.  Speaking of meeting with the IRS, do not invite them into your house or business.  Instead, go to their office and conduct the audit there.  This is not because they are bad people (at least, in theory), but because you do not want to give them any more information than is necessary.

The fact that you are reading this is a good sign that you like to get prepared, and that is good, because you are going to be doing a lot of that in preparation for your audit.  Contact the person who did your return and have them prepare records that justify the things they put on your return, and also to find out if they already sent you back anything.  Back tax help can be as simple as having these things prepared ahead of time.  However, we know that not everyone who receives an audit is going to end up in the super-organized category.

What you should never, ever, under any circumstances do, though, is ignore the tax notice.  Putting your head in the sand is not going to make the tax man go away, and when your head finally pops out, Uncle Sam will be standing there with his money bags looking way more angry than before.  The best back tax help we can offer is to at least do something constructive when presented with the issue at hand.  In some cases that may mean hiring a tax specialist, but many times this can be resolved with just a little knowledge and elbow grease.

In either event, and in some part related to being prepared, knowing your rights is one of the most important things you can do, and falls just underneath “for the love of all that is good in the world, do not ignore the notice!” in terms of importance.  Knowing your rights is one of the best back tax help tips that we can offer.  If you know your rights, you have a lot more power during the audit process, even if you have representation.  After all, it is hard to invoke your rights if you don’t know what they are.

Back Tax Guide and Ebook; Your Back Tax 101

Today, we want to give you some insight into some misconceptions you may not find in every back tax guide.  These are tips that many may find obvious, but sometimes the fundamentals trip up even the most seasoned taxpayer.  Since this is graduation season, it seems appropriate that we cover these tips now so that those heading into the job market can get used to wrapping their heads around some of these esoteric guidelines before crunch time arrives next year.  And, not to be Negative Nancys, but hopefully you will find a job with a taxable income by this time next year.

One important key to remember is that “tax credits” and “tax deductions” are not the same thing.  Would you rather have an amount deducted from a dollar, or would you rather have a credit for a dollar?  This is an easy thing to forget, but a back tax guide is doing a disservice to those who do not make note of this important distinction.  Deductions are based upon your income bracket, and thus when multiplying the percentage of your tax bracket to the value of your deduction, you get the worth of the deduction.  And you wondered why people hate doing their taxes so much…

Speaking of things people hate about their taxes, there are ways in which you can avoid getting audited.  Frankly, the best way of avoiding an audit is to be honest on your taxes.  Honesty should always be the first step in a back tax guide, but we realize that is not usually the case.  When the IRS notices consistent trends in your income history, number of dependents, etc, then there is little cause for concern from their standpoint, as everything looks as it should.  When you start suddenly earning a fourth of your income and add 12 new dependents, that’s when Uncle Sam starts to get a little worried you might not be playing by the rules.

Dependents, since we are on the subject, are a temptation for some.  Although we know you’d never do this (right…?), some people go so far as to list pets as dependents, and although your pets may be dependent upon you for survival, the IRS does not consider them dependents.  This might seem a little obvious, but what good is a back tax guide if it only tells you the obvious.  What might not be so obvious, though, is that your girlfriend or boyfriend who crashes at your place half the time cannot be claimed as a dependent if her/his parents are doing so as well.  Be aware that this also pertains to children as well.

These may not be news for some, but they are the kind of questions that many people are afraid to ask because they are so basic.  Needless to say, our back tax guide is a lot more comprehensive and deep than this, but we can’t offer golden advice for free.  That said, though, our guide is affordable, and can also save you tons of money in IRS fees.  It’s a win-win.

Pay Back Taxes; Some Companies in Need of Back Tax Help

We recently spoke of some notable celebrities who had some trouble for failure to Pay Back Taxes. We stumbled across a story today about a company that was financed by US tax dollars (for the somewhat paltry sum of $33 million) and not only did the company go bankrupt but now still owes $1.5million in back taxes. Raser Technologies was given a $33 million dollar grant in 2010 to build a “green” power plant in Utah only to collapse like a house of cards amidst accusations of political shenanigans and financial impropriety.  While we won’t get political it did give us an idea to explore further some well known or high profile companies that have had problems paying back taxes.

Continuing our list, we would be remiss to not go with some very low hanging fruit of Warren Buffet and his little mom and pop known as Berkshire Hathaway.  And after reading this,  private citizens looking for help to pay back taxes probably do not feel quite so bad, provided the amount owed in back taxes is less than one billion dollars. According to Berkshire Hathaway’s official 2010 report the company has been in a struggle with the IRS dating back to 2002.One website even went as so far to speculate that Berkshire Hathaway may owe as much as one billion dollars. Without looking at the record book-we are positive this may be the largest back tax amount owed in US History.

Zuccotti Park made headlines recently as the occupy Wall Street movement chose Zuccotti Park as their official headquarters and rallying point of the movement.  Those who looked deeper into Zuccotti park and more importantly, the owners of Zuccotti park discovered that park owner Brookfield Properties and its parent company owe the city more the $139,000 in their failure to pay back taxes. We could probably list just a few of the ironies of the whole sordid affair. Merely the gall and audacity of those facts alone speaks volumes.

On a similar note, one county in Michigan decided to take on a true heavyweight when it was discovered that Fannie Mae and Freddie Mac were not complying with tax laws when a Fannie and Freddie owned property was sold.  Oakland County treasurer Andy Meisner discovered that Fannie and Freddie’s refusal to pay back taxes had resulted in the loss of $1.6 million to the County and $10.8 million to the state.   “We think it’s a pretty strong case,” Meisner was on record as saying. “There are some very inconvenient truths that Fanny and Freddie are working around.”  Fannie and Freddie claimed that as a government entity they were excluded from regulations that extended to private companies…even though Freddie and Fannie are publicly traded companies that actually has the words “a private company serving a public purpose” on its own website.

Something tell us that we are just scratching the surface as to some major companies and corporations that are failing to pay back taxes. Sadly time and space limitations are prohibiting us from doing more research on the subject. However, we can say that for those looking for help for information and online ebooks providing information on how to pay back taxes;  GraceForms.com is your premiere source for back tax, college scholarship, and how to get a grant information.