I am an Independent Contractor in the oil and gas industry, so no taxes are taken out of [...]]]> This letter is from a Don Brown Tax Services client and is part of our series on companies that promise to make your tax debts disappear — with huge fees hidden in the fine print.

I am an Independent Contractor in the oil and gas industry, so no taxes are taken out of my paychecks, which is a double-edged sword.  At the end of the year, I owe the IRS.  Out of my inexperience with taxes, I did not file for a year and thought I would just “slip by” without consequences. That does not happen.

As my fear grew and the year passed, I decided it was time to do something.  I was listening to the radio one day and happened to hear Glenn Beck advertising for a website claiming they would handle all of your tax problems.  The site was www.taxresolution.com.

I called them the next day and spoke in length about my situation. After about a 30 minute conversation, the representative finally decided to break the news to me about what it would cost me to work with them.

I was stunned when Tax Resolution threw out the number $6,750!  What?!?  I really couldn’t believe what I was hearing. There was no way I could pay them that kind of money to help me.

When I shared that with the man on the other end of the phone, his response was, “Well, I can take a down payment of at least $2,000.” I got off the phone thinking to myself that if everyone is going to charge me this kind of money, then I would just have to suffer the consequences later.

Then a friend told me about Don Brown Tax Services. I called them on a Friday and they were very helpful and set up an appointment for me to come in and meet with him that Sunday.

I was pleasantly surprised that after reviewing all of my records and paperwork, Don Brown only charged me $315.00!

That included filing my current taxes as well as back taxes from the previous year.  I was extremely pleased with my experience at Don Brown Tax Service and he really put my mind at ease and unloaded a huge weight off my shoulders.  I am very appreciative to him and will definitely use them again in the future.

-Amy

Question: I owe the [...]]]> In a new series for our blog, we’ll tackle some questions about companies claiming to make your tax bills disappear for a low cost. Even though there are many enticing ads out there, taxpayers should be very cautious when settling tax bills and it is best to consult an Enrolled agent.

Question: I owe the IRS lots of money and I want to try to settle for pennies on the dollar like I see on TV.  How can I do that?

Answer: Be very careful about those ads because they are often deceptive. Before reviewing your situation, they generally charge huge fees and very rarely can get a reduction. I would suggest talking with a Enrolled agent first.

The IRS also has a few tips on their website for taxpayers who want a “fresh start”. Visit the following link on the IRS website or watch the short video for more info.

New IRS Fresh Start Initiative Helps Taxpayers Who Owe Taxes
Tax Tip 2012-48, March 12, 2012

Answer: The IRS has had delays of tax refunds this year. The word is that they are testing the New e-file Modernization system and need to work the bugs out.  Eventually the system should allow taxpayers to [...]]]> Question: I filed my taxes a couple of weeks ago and still have not received my refund. What’s going on?

Answer: The IRS has had delays of tax refunds this year. The word is that they are testing the New e-file Modernization system and need to work the bugs out.  Eventually the system should allow taxpayers to get refunds by direct deposit in 2-3 days.

Those who do not have a bank account will have to wait longer than those filing electronically with a direct deposit, but the wait time will be significantly reduced from the current wait time, generally ranging from 10-21 days.

See the following links for more info:

http://www.irs.gov/newsroom/article/0,,id=251959,00.html?portlet=108

http://en.wikipedia.org/wiki/Customer_Account_Data_Engine

Answer: You should contact your employer and request that they send you a new one. They should have mailed or delivered a copy to you by Jan 31st. If you have moved during the year be sure to leave the new address with [...]]]> Question: I did not recieve my W-2 yet. What can I do?

Answer: You should contact your employer and request that they send you a new one. They should have mailed or delivered a copy to you by Jan 31st. If you have moved during the year be sure to leave the new address with your employer.

If you still have not received your W-2 and you have tried to obtain one, generally you can call the IRS at 1-800-829-1040 after Feb 14th and they can help you get one.

Tax season is here again, so call us at 817-367-0036 to schedule your appointment. Trust a professional to get you all the tax deductions you deserve!

Answer:  In General, if you are self employed you should keep records of all income and expenses.  See IRS pub 552 “Record Keeping for Individuals”,  pub 535 Question:  I  babysit for my only source of income. Should I keep records and if so what records should I keep?

Answer:  In General, if you are self employed you should keep records of all income and expenses.  See IRS pub 552 “Record Keeping for Individuals”,  pub 535 “Business Expenses”, and pub 583 “Starting a Business and Record Keeping”.

All of these publications any many other helpful tips and guides are available online at http://www.irs.gov/.

Answer: Most likely it is because of the Making Work Pay tax credit, part of the stimulus package that was not extended by Congress for 2011. This [...]]]> Question: I have already begun to fill my taxes out and I noticed that I am getting $800 dollars less than last year? How could that be?

Answer: Most likely it is because of the Making Work Pay tax credit, part of the stimulus package that was not extended by Congress for 2011. This tax credit gave  a maximum of $400 to individuals and $800 for those married filing jointly. This credit was claimed on Schedule M on 2010 taxes.

Though this tax credit has not been extended, you may qualify for other tax benefits in 2011. Lower tax rates from the 2010 tax act have been extended through 2012, the child tax credit and college tuition credits are also still effective.

Visit the IRS website to learn about more tax credits you may qualify for, and contact us to ask more of your tax questions. We’re here to help!

Answer: Certain energy efficient repairs are eligible for a $500 credit on your 2011 taxes. If you itemize your deductions you’ll be [...]]]> Question: If major repairs are done to the house, like installing new floors (carpet, wood floor, ceramic) can those costs be reported when filing income tax? If so, what do we need to show for proof?

Answer: Certain energy efficient repairs are eligible for a $500 credit on your 2011 taxes. If you itemize your deductions you’ll be able to write-off the sales tax on building materials in Texas. You cannot claim the same repair on two different tax forms, and for credits that expire in 2011 you will be limited to a $500 lifetime limit. Always save or make copies of your receipts and the Manufacturer Certification Statement for your records.

Repairs under this credit include new insulation, roofing, HVAC, water heaters and more. Visit the Department of Energy website for a list of materials eligible for this credit, how much you can deduct and when the credits expire.

Keep reading our blog for more tax questions and call us at 817 367-0036 to save money on your taxes.