The IRS will send millions of correspondence for different reasons. We wanted to share some information we received about what you should do when you receive a letter from the IRS.
- Don’t Panic! Responding will take care of any issues.
- Read Carefully: There can be many reasons for receiving a letter from the IRS. Most deal with tax returns or accounts. The letter will provide specific instructions and details about what to do so it is important to read the letter carefully and more than once.
- Is the letter asking for something? It might be about changes to your account, taxes owed, or a payment request. Sometimes, they may ask for more information on the issue discussed.
- Is it about changes to a return? If the letter indicates a change or correction to your tax return, review the changes and compare it with your original return (You should always have your own copy).
- Is a reply necessary? There is no need for a reply unless instructed, or if you need to make a payment.
- Don’t agree with your notice? Respond! There is a contact stub at the bottom of each letter so you may respond and explain why you disagree. Be sure to include any supporting documents for the IRS and allow up to 30 days for a response. Always send this type of correspondence certified and keep copies of everything you send.
- No appointments necessary: If you need to call, use the phone number that is on the upper right hand corner of the notice. Have your tax return and notice in hand for reference.
- Keep Records! Always keep copies of any notices that you receive along with your tax records.
- Be aware of scams: The IRS will never send you an e-mail or contact your through social media and ask for financial information. They will never demand a specific form of payment such as a prepaid card. For information on payment options, click here.
Business Resource Partners has been happy to serve you this tax season and we look forward to 2017! We have our Enrolled Agent on staff who will directly represent you to the IRS and assist in tax planning for you and your business. We offer more than just bookkeeping and taxes for your business! For a complete list of our services, please visit our Services page.
Our sister company, Almond Street Business Center offers a variety of services for your company as well. You may also click any of the links below for more information.
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Wednesday, April 26, 2017
11:30AM to 1:00 PM
Where? (CHANGE FROM ORIGINAL LOCATION)
1250 North Hancock Road Clermont FL, 34711
Building 2, Room 102 & 103
How do I sign up?
This event is free but registration is required and seats are filling up fast! Visit the registration page to secure our seat to this event.
For information on this, and future events of the SBRN, see the flyer we have included below.
The IRS has sent us an interesting article that will affect many tax payers, we wanted to share this with you before the end of tax season.
Starting this month, the IRS will be using four private-sector collection agencies (PCA) to collect unpaid tax debts on the government’s behalf. This is authorized under a federal law that was enacted by congress in December of 2015. These are tax debts that are not currently being worked on and were assessed years ago. If a tax payer is being assigned to a private firm, there would have been multiple attempts to contact by the IRS in the past years.
- How is this going to work?
The IRS will send an official letter to the tax payer and his or her tax representative informing them that they will be assigned to a PCA and will be given the name and contact information for the PCA. This mailing will also include a copy of Publication 4518 of what to expect.
Once your letter is sent, the designated private firm will send a letter to the tax payer with information that will assure that the transfer and all future collection calls are legitimate.
Important: The PCA are authorized to discuss payment options and payment agreements. However, all payments must be made directly to the IRS via check, or electronically. Never make a payment to a private firm or anyone besides the IRS or U.S Treasury. For more info on payment options, click here.
For a list of the agencies selected, visit this page.
- Prepare for phone scams!
There will be scammers who jump at this opportunity to pose as PCA employees. It is important to know that these agencies will only be assigned if you owe money from previous tax years. You will be made aware about these PCAs before you hear from them.
The IRS or PCA will never:
- Call to demand immediate payment using a specific method such as prepaid card or wire transfer
- Threaten to call local police or other law-enforcement groups
- Demand payment without the opportunity to question or appeal the amount owed
- Ask for any credit or debit card numbers over the phone
You don’t need to wait for a call or letter from the IRS! It is important to always come forward and pay what you owe, or set up a payment plan. For a list of ways to take advantage of this, visit IRS.gov.Tax filing deadline is approaching soon! Business Resource Partners has an Enrolled Agent on staff who will directly represent you to the IRS if ever needed. We would be happy to prepare and file your business and personal taxes! Give us a call to set up an appointment (321) 236-2771 or visit us at 310 Almond Street Clermont, FL 3711.
If you made your home more energy efficient in 2016, you may qualify for a tax credit this year! We received this great article from the IRS and we wanted to share some main points that stood out. For this, and many more publications, visit the IRS.gov website.
Non-Business Energy Property Credit
- This credit counts for 10% of the cost of qualified energy saving items. These items include adding insulation, energy-efficient exterior windows and doors, and certain roofs. It does not include the cost to install these items.
- The credit amount for each type of property has a different dollar limit rather than a percentage. For example, any installation costs of high efficiency heating and air-conditioning, water heaters, or stoves that burn biomass fuel.
- This credit has a maximum lifetime limit of $500, only $200 of this limit may be used for windows.
- The main home must be in the U.S and the non-business energy property credit is only available for existing homes.
- Always have a written certification from the manufacturer that this product does qualify for the tax credit. This will usually be posted on the website. Always keep the original copy with your tax records and not attached to your tax return.
- You may claim the credit on your 2016 tax return if you did not reach the lifetime limit in the past years.
Residential Energy Efficient Property Credit:
- This credit is 30% of the cost alternative energy installed in or on a home, including cost of installation.
- Qualified materials include: solar hot water heaters, solar electric equipment, wind turbines, and fuel cell property.
- If the credit is more than the tax owed, carry forward the unused portion of this credit to next year’s tax return. There is no dollar limit on the credit for most types of property.
- The home does not have to be your main home unless the alternative energy equipment is qualified fuel cell property. The residential energy efficient property credit is for both existing home and homes under construction. It is available through 2016.
For Residential Energy Credits, use Form 5695.
Business Resource Partners offers more than just bookkeeping services. We provide tax preparation and filing for both personal and business tax returns. We have a specialized team who is here to help!
We have extended our business hours this tax season and we are ready to work around your busy schedule!
Call us at (321) 236-2771 or visit 310 Almond Street Clermont, FL 34711.