Tax Help for Taxpayers with IRS Problems – Act Fast to Take Advantage of Temporary Tax Breaks!
The current gloomy economy has put many ordinary law-abiding taxpayers in IRS trouble for unpaid taxes.
In response to this dire situation, Congress has been working steadfast to create a number of tax breaks for Americans who are struggling to make ends meet. In Feburary of 2009, Congress passed the Economic Recovery and Reinvestment Act of 2009. The nearly $800 billion economic stimulus package offers significant tax incentives.
However, due to the temporary nature of these tax breaks, taxpayers must make haste and take advantage of these incentives before they expire. Read on to see if you qualify for any of these tax breaks that will expire in 2009:
* First-time homebuyer credit. This credit reaches $8,000 for purchases between January 1 and November 30, 2009. Taxpayers must be qualified buyers and satisfy income requirements. Eligible taxpayers also can file an amended 2008 tax return to receive the credit sooner.
* Motor vehicle sales tax deduction. Taxpayers can take an extra standard deduction for state and local sales taxes paid on the purchase of a new vehicle and, in states without a sales tax, taxpayers can deduct other fees to take advantage of the temporary motor vehicle sales tax deduction enacted as part of the 2009 Recovery Act. The amount of the deduction is limited to the portion of the state sales or excise tax imposed on the first $49,500 of the purchase price of the vehicle and is effective for vehicles purchased between February 17 and December 31, 2009. Read about other new vehicle tax incentive programs.
* COBRA premium assistance. Individuals laid off from their jobs between September 1, 2008 and December 31, 2009 meeting income limits may qualify for nine months of COBRA premium assistance under the 2009 Recovery Act. Individuals pay 35 percent of the COBRA premium and employers must treat that as full payment. Employers claim a credit for the other 65 percent of the premium on their payroll tax returns.
* Economic recovery payments. The 2009 Recovery Act authorized one-time payments of $250 to individuals receiving Social Security benefits, disabled veterans and others on fixed incomes. The Social Security Administration began sending the bulk one-time payments by mail and direct deposit in May 2009.
* Exclusion of unemployment benefits. Individuals receiving unemployment benefits in 2009 can exclude the first $2,400 from their income. The exclusion is only available for 2009.
* Tax evasion forgiveness. In an effort to shore up tax revenues, the IRS is encouraging taxpayers to disclose unreported foreign bank accounts and assets. In exchange for full disclosure and paying all back taxes plus interest and penalties, the IRS agrees not to criminally prosecute tax evaders and to waive the 75-percent fraud penalty. The settlement offer is only available up to September 23, 2009.
Source: CCH (http://www.cch.com).
If you qualify for any of the above tax break, the best thing to do is to apply for these tax savings before they expire. The current tax climate is unstable as President Obama plans to increase tax rates for the wealthy while giving middle income earners tax breaks. In Obama’s tax plan, individual tax cuts would total $736.5 billion over 10 years and business tax cuts would total $71 billion over 10 years.
Tax Resolution Services is a team of tax attorneys and tax specialists that can help you! We even offer tax advice and answer questions – for free! – on our tax blog! Contact our team of experts for a free consultation. Call us at 866-IRS-PROBLEMS (1-866-477-7762) or visit our website at www.TaxResolution.com
More Tax Help, IRS News and Tax Relief Tips:
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September 1st, 2009 at 2:04 pm
[...] Please tune in to Fox Business News tomorrow morning, September 2nd, at 8am to learn how you can protect your financial future by staying informed of your tax obligations as well as how you can save money from legal tax breaks (such as the first-time homebuyer’s tax credit.) [...]
June 15th, 2010 at 4:55 pm
[...] yet, you may still be able to receive the homebuyers tax credit for your tax return. The first-time homebuyer tax credit is a tax break of up to $8,000 for qualified taxpayers who are in the process of buying their home [...]
October 23rd, 2011 at 5:14 pm
[...] returns in 2009 and 2010 due to abuses by taxpayers of the first time home buyer tax credit. The first-time homebuyer tax credit is a tax break of up to $8,000 for qualified home sales before December 1, [...]