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Financial consulting, retirement planning, and investment services through LPL Financial, the nation’s premier independent broker/dealer. LPL Financial is a member of FINRA/SIPC. TaxPlus+ is not affiliated with LPL Financial.

Contact: Tony Navarro, Financial Consultant since 1992 Office: 310-398-3231

When you choose TaxPlus+ as your tax preparer, your fee includes the following services:

Tax Planning & Preparation

• TaxPlus+ will help you plan to reduce your income taxes. We provide effective tax organizers to help you identify and track potential deductions.
• TaxPlus+ will provide Existing Clients with a Tax Organizer each year to help plan and organize their tax information.
• TaxPlus+ conducts a tax profile interview with each client in order to prepare accurate and complete tax returns. Your Tax Preparation Fee is based upon your specific situation and needs.

Electronic Filing (E-File) & Electronic Refund Deposit (ERD)

• Using E-File, TaxPlus+ will electronically file your returns directly with the IRS and any State.
• With Electronic Refund Deposit, you will receive your IRS and State refunds directly deposited to your bank account within 8 to 15 days after using E-File.

Account Resolution & Audit Representation

• For Tax Returns that we prepare, TaxPlus+ will assist in resolving IRS or State letters of inquiry.
• For Tax Returns that we prepare, TaxPlus+ can represent you if your return is selected for IRS and State audits.

Other Services

• For additional fees, TaxPlus+ will:
• File Amended Returns
• Prepare Offers-In-Compromise (OIC) to settle outstanding balances due to the IRS
• Provide Account Resolution and Audit Representation on Tax Returns prepared by other tax preparation firms
• Notarize documents

Congress has approved and the President has signed new economic stimulus legislation, the American Recovery and Reinvestment Act of 2009. The IRS is implementing tax-related provisions of this new program as quickly as possible.

Here are some key highlights:

• Payroll Checks Increase This Spring. The Making Work Pay Tax Credit will mean $400 to $800 for many Americans. The IRS has issued new withholding tables for employers.
• $250 for Social Security Recipients, Veterans and Railroad Retirees. The Economic Recovery Payment will be paid by the Social Security Administration, Department of Veterans Affairs and the Railroad Retirement Board.
• Money Back for New Vehicle Purchases. Taxpayers who buy certain new vehicles in 2009 can deduct the state and local sales taxes they paid.

Information on other provisions of the stimulus law will be available on ww.IRS.gov as they become available.

Following are a few general questions and answers regarding the new stimulus package:

Read the rest of this entry »

How has the new Stimulus bill affected the tax credits for energy efficient home improvements?

On February 17, 2009, President Obama signed a stimulus bill (The American Recovery and Reinvestment Act of 2009) that made some significant changes to the energy efficiency tax credits.

The highlights are:

• The tax credits that were previously effective for 2009 have been extended to 2010 as well.
• The tax credit has been raised from 10% to 30%
• The tax credits that were for a specific dollar amount (ex $300 for a CAC), have been converted to 30% of the cost.
• The maximum credit has been raised from $500 to $1500 for the two years (2009–2010). However, some improvements such as geothermal heat pumps, solar water heaters, and solar panels are not subject to the $1,500 maximum.
• The $200 cap on windows has been removed.

(source: www.energystar.gov)

Refundable First-time Home Buyer Credit.

Last year, Congress provided taxpayers with a refundable tax credit that was equivalent to an interest-free loan equal to 10 percent of the purchase of a home (up to $7,500) by first-time home buyers. The provision applies to homes purchased on or after April 9, 2008 and before July 1, 2009. Taxpayers receiving this tax credit are currently required to repay any amount received under this provision back to the government over 15 years in equal installments, or, if earlier, when the home is sold. The credit phases out for taxpayers with adjusted gross income in excess of $75,000 ($150,000 in the case of a joint return). The bill eliminates the repayment obligation for taxpayers that purchase homes after January 1, 2009, increases the maximum value of the credit to $8,000, and removes the prohibition on financing by mortgage revenue bonds, and extends the availability of the credit for homes purchased before December 1, 2009. The provision would retain the credit recapture if the house is sold within three years of purchase.

The following Q&A relates to the $7,500 Tax Credit for homes purchased between April 9, 2008 and July 1, 2009: Read the rest of this entry »

Many investors will receive their year-end tax statements later than in past years, but these forms are likely to be more accurate, according to the Internal Revenue Service.
A new law, enacted last fall, changed the deadline from Jan. 31 to Feb. 15, when brokers, including brokerage firms, mutual fund companies and barter exchanges, must furnish year-end Forms 1099-B to their customers. Where a broker furnishes these forms by mail, this means that the forms must be mailed, not received by that date.

Because Feb. 15 falls on Sunday in 2009, and Monday, Feb. 16 is a federal holiday, the deadline is Feb. 17 this year. In addition, the IRS said earlier this month that for calendar-year 2008 reporting, the Feb. 17 deadline also applies to other tax information that brokers report to their customers, including such items as interest and dividends, on a combined year-end statement.
Read the rest of this entry »

1. Tax laws provide tax benefits for certain kinds of income and allow special deductions and credits for certain expenses. These benefits can drastically reduce some taxpayers’ tax obligations. The Alternative Minimum Tax attempts to ensure that anyone who benefits from these tax advantages pays at least a minimum amount of tax.
2. Congress created the AMT in 1969, targeting a small number of high-income taxpayers who could claim so many deductions they owed little or no income tax
3. Because the AMT is not indexed for inflation, a growing number of middle-income taxpayers are discovering they are subject to the AMT.
4. You may have to pay the AMT if your taxable income for regular tax purposes plus any adjustments and preference items that apply to you are more than the AMT exemption amount.
5. The AMT exemption amounts are set by law for each filing status.
6. For tax-year 2008, Congress raised the alternative minimum tax exemption to the following levels
• $69,950 for a married couple filing a joint return and qualifying widows and widowers
• $46,200 for singles and heads of household
• $34,975 for a married person filing separately
7. Taxpayers may find more information about the Alternative Minimum Tax and how it impacts them by referring to IRS Form 6251, Alternative Minimum Tax —Individuals, available on IRS.gov or by calling 800-TAX-FORM (800-829-3676).

1. If you receive a letter or notice from the IRS which leads you to believe someone may have fraudulently used your Social Security Number, respond immediately to the name and address or phone number printed on the IRS notice.
2. If you receive a letter from the IRS that indicates more than one tax return was filed for you, this may be a sign that your SSN was used fraudulently.
3. Another sign that you may be the target of identity theft is an IRS letter indicating you received wages from an employer unknown to you.
4. The IRS has a department which deals specifically with identity theft issues. The IRS Identity Protection Specialized Unit is available if you have been in contact with the IRS about an identity theft issue and have not achieved a resolution
5. You can contact the IRS Identity Protection Specialized Unit by calling the Identity Theft Hotline at 800-908-4490 Monday through Friday from 8:00 am to 8:00 pm local time (Alaska and Hawaii follow Pacific Standard Time).
6. The IRS Identity Protection Specialized Unit is also available if you believe your identity may be at risk of being stolen due to a lost or stolen purse or wallet or due to questionable activity on your credit card or your credit report.
7. The IRS never initiates communication with taxpayers about their tax account through emails. If you receive an e-mail or find a Web site you think is pretending to be the IRS, forward the e-mail or Web site URL to the IRS at phishing@irs.gov
8. The IRS has many more resources available to help inform taxpayers about identity theft on the IRS Web site at IRS.gov. On IRS.gov you can access information on how to report scams and bogus IRS Web sites. You can also visit the IRS Identity Theft Resource Page, which you can find by typing Identity Theft Resource Page in the search box on the IRS.gov home page.
9. The Federal Trade Commission is also available to assist taxpayers with identity theft issues. You can reach them at 877-ID-THEFT (877-438-4338).
10. Visit OnGuardOnline.gov for protection tips from the federal government and the technology industry.

(source: www.irs.gov)

The IRS currently has a program known as an Offer-in-Compromise (OIC) which provides financially distressed taxpayers an opportunity to settle all outstanding taxes, interest and penalties for a lump sum which is less than the total amount owed. The amount of the offer will vary depending upon your income, assets, liabilities and future income prospects. Current IRS guidelines allow for this lump sum to be paid in several installments over a period as long as two years, however, the total payments tend to be higher than under a lump sum offer.

The negotiation of an offer is a lengthy process usually taking from 6 months to a year, but sometimes longer. During the time the offer is pending the IRS will not require any payments on old taxes. However, during the time an offer is pending you must pay all of your current taxes as they become due including any quarterly estimated income tax payments, and federal payroll tax deposits. If you fail to do so the IRS will immediately reject your offer, and you will not be entitled to any appeal rights. Furthermore, your deposit, discussed below, will be applied to your taxes, and if you wish to make a new offer you will need to make an additional deposit.

At the time the offer is submitted a deposit must be submitted. The amount of the deposit is 20% of the amount offered for a “lump sum” offer. For a periodic payment offer you must include the first proposed installment with the offer. While the IRS is evaluating a periodic payment offer, you must make subsequent proposed installment payments as they become due. If the offer is rejected, withdrawn, or returned the IRS keeps any deposits made, and applies them to the back taxes you owe. Read the rest of this entry »

The IRS currently has a program known as an Offer-in-Compromise (OIC) which provides financially distressed taxpayers an opportunity to settle all outstanding taxes, interest and penalties for a lump sum which is less than the total amount owed. The amount of the offer will vary depending upon your income, assets, liabilities and future income prospects. Current IRS guidelines allow for this lump sum to be paid in several installments over a period as long as two years, however, the total payments tend to be higher than under a lump sum offer.

The negotiation of an offer is a lengthy process usually taking from 6 months to a year, but sometimes longer. During the time the offer is pending the IRS will not require any payments on old taxes. However, during the time an offer is pending you must pay all of your current taxes as they become due including any quarterly estimated income tax payments, and federal payroll tax deposits. If you fail to do so the IRS will immediately reject your offer, and you will not be entitled to any appeal rights. Furthermore, your deposit, discussed below, will be applied to your taxes, and if you wish to make a new offer you will need to make an additional deposit.