Owe Taxes On Forgiven Student Loan? #owed #taxes #forgiven


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Owe taxes on forgiven student loan?

Dear Tax Talk,
My school loan in the amount of $53,000 was forgiven, but I have not received Form 1099 showing this as income. Will I owe taxes on the forgiven student loans? Is there a way that I can lower the amount of taxes since I have already filed and received my 2013 tax overpayment? I am a 100 percent disabled veteran. Can this help me in any way?
Michael

Dear Michael,
Thank you for the tremendous sacrifice you made for our country. Unfortunately, while your veteran disability qualified you for student loan debt forgiveness, it does not help you with the IRS requirement that you report this as income. However, in certain circumstances, you may not owe much tax on the student loan debt that was canceled.

The general rule for student loans is that you must include the canceled debt in your income unless your loan was made by a qualified lender and the loan contains a provision that all or some of the debt will be canceled if you work in certain professions for a specified time period for certain employers. This is not your situation, so let s move on to what might help you.

Under the general rules for all canceled debt, once again you must include the debt in your income; however there are certain provisions where the debt can be excluded. If you were insolvent at the time this debt was canceled, then this may help you. Insolvent means your liabilities exceeded your assets. To the extent that it did in your case, that amount of the debt can be excluded from your income. Be sure to include the amount of the debt as a liability when you are tallying everything up. You will need to acquaint yourself with IRS Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness. as this is where the debt is excluded if applicable.

Thank you for the question and I hope this information is of use to you. All the best to you as you move forward with your life.

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07/10/2017

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Help for IRS Tax Problems #irs #tax #problems, #irs #debt, #tax


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Help for IRS Tax Problems

Ignoring IRS tax problems can be a costly mistake. If you owe back taxes and don t deal with your tax debt, penalties and interest will add up and the IRS may resort to liens, levies, or wage garnishment to recover their money. If you re in this situation, there is hope. The trusted tax professionals at Frank E. Nute CPA, LLC, a Edina, MN CPA firm, are ready to find a permanent solution to your tax problems with the IRS.

For most taxpayers, trying to deal with the IRS is stressful, confusing, and ultimately unsuccessful. But when you turn to Frank E. Nute CPA, LLC for assistance, we ll work directly with the IRS on your behalf. We know their rules, understand their tactics, and can speak their language to negotiate a fair payment plan or help you take advantage of an appropriate tax relief program.

Contact us at 952-405-2082 now or request a consultation online. We ll examine your situation and recommend a course of action that will resolve your tax problems as quickly as possible while minimizing the impact on your finances.

Our wealth of experience in tax resolution means we can assist with audits, resolve payroll tax problems, file back taxes and more.

We’ll work with the IRS on your behalf to find the best solution for you like an offer in compromise or installment agreement.

Trying to handle tax problems on your own is timely and confusing. You can trust our experience to get the job done.


18/09/2017

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Income Tax Filing Requirements #tax, #taxes, #turbotax, #irs, #filing #status, #irs


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Income Tax Filing Requirements

With the second half of tax season here, it s time to get those gears in motion to start filing. Tax season means getting your paperwork and finances in order. While it may not seem exciting, filing taxes is manageable. Plus you may have a tax refund waiting. An overall understanding of the filing process is a great place to start.

IRS Filing Requirements

If you re a U.S. citizen or resident alien and you meet filing requirements, you are required to file an income tax return.

According to the IRS, you must check these income requirements to determine if you required to file:

  • Gross Income: All your income including wages, tips, capital gains, tips, gambling winnings, and more should be claimed on your taxes if in 2016 it is at least:
    • Single: $10,350
    • Married (filing separately): $4,050
    • Married (filing jointly): $20,700
    • Head of Household: $ 13,350
    • Qualifying widow(er): $ 16,650
  • Filing Status: The five filing statuses are single, married (filing separately), married (filing jointly). head of household, and qualifying widow(er) with dependent child. Your filing status has a bearing on the deductions and exemptions you can take.
  • Age: If you re 65 or older, you can have a higher gross income before you re required to file taxes.
    • Single: $11,900
    • Married (filing jointly) one spouse 65 older: $21,950
    • Married (filing jointly) both spouses 65 older: $23,200
    • Head of Household: $14,900
    • Qualifying widow(er): $17,900

What exactly is your adjusted gross income?

Your adjusted gross income is basically your entire gross income minus any allowable tax deductions called above the line deductions. Some of them include:

  • Health Savings Account
  • Moving Expenses
  • Self-employed Health Insurance
  • Alimony Paid
  • Student Loan Interest
  • Tuition and Fees

Your adjusted gross income is not the same as your taxable income.

What s the difference between your adjusted gross income and taxable income?

After your adjusted gross income has been calculated, you are then allowed to either take a standard deduction or itemized deductions. The standard deduction ($6,300 single, $12,600 married filing jointly) or itemized deductions, whichever one you are eligible for and gives you the lowest tax liability is subtracted from your adjusted gross income.

Final Thoughts

Even if your income is below the income filing requirements you should still file your taxes if you had federal taxes taken out since you may see your withholding come back in the form of a tax refund especially if you are eligible for a refundable tax credit like the Earned Income Tax Credit. Every year the IRS reports close to $1 billion in unclaimed refunds and the average unclaimed refund is about $700. Also, if you purchased health insurance in the Health Insurance Marketplace, you need to file to report your health insurance status.

Don t worry about knowing these tax laws and how to make these calculations. TurboTax will ask you simple questions and calculate your taxable income and give you the tax deductions and credits you are eligible for based on your answers.

How are you preparing this tax season?

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24/08/2017

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California – s Tax Collection Agency Engulfed in Scandal #board #of


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California s Tax Collection Agency Engulfed in Scandal

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Sessions Resigning Narrative Gets Another Blow with White House Vow of Confidence

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Feminist Commentator Laci Green Slammed by Leftists for Dating Anti-SJW YouTuber, Wanting Open Debate

Gays for Trump Banned from Participating in Charlotte Pride Parade


13/08/2017

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You need to pay your taxes quarterly if #how #to #find


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You need to pay your taxes quarterly if.

For most of us, tax day comes just once a year — on or around April 15. But for people who owe estimated taxes, Uncle Sam expects a check four times a year. Unfortunately, you may be one of those beleaguered quarterly taxpayers if any of the following scenarios applies to you.

  • You cashed in some significant stock market winners but did not change the tax withholding from your salary.
  • You or your spouse are or became self-employed and owe both income and self-employment taxes for your efforts.
  • You employ a nanny and pay her federal payroll taxes. You can do this in quarterly payments or in one lump sum when you file your taxes in April. (But you may owe interest if you wait until April.)
  • You have income from other sources that you forgot to consider (or had no way of knowing about) when you filled out your W-4 for 2016.

Now that I’ve gotten thousands of you scared, let me tell you the good news: you need not worry about estimated taxes for the 2017 tax year if you are in one of the following two situations.

  • Anyone who expects his 2016 tax bill net of salary withholding to be under $1,000.
  • Any U.S. citizen or resident whose tax liability for 2015 was zero. You are exempt from any estimated tax payment requirement for 2016.

As for the rest of you, please keep reading. I’ve tried to be brief, but the rules are complex. So anyone wanting more information should download IRS Publication 505 from the IRS website.

Estimated tax payments for the 2017 tax year are due on April 18, June 15, September 15, and January 15 of 2018. All payments should be accompanied by Form 1040-ES, which you can also download from the IRS website. It takes just a few seconds to fill out (honest). If you underpay one or more installments, you get charged interest until the day you catch up. However, the government charges a very reasonable rate: only 4% at the time this was written, subject to change each quarter. Any payments outstanding after April 16 of next year are hit with a 0.5% a month “failure to pay” penalty (equivalent to an annual rate of 6%) plus the aforementioned interest charge.

So how much do I owe?

If you want to completely avoid any interest charges for the 2016 tax year, you must cough up enough via withholding and/or estimated payments to satisfy any one of four “safe-harbor” guidelines. Remember to include any withholding when calculating your payments.

  • The first safe harbor is only for folks with 2016 adjusted gross income of $150,000 or less. You will be safe for 2017 if you pay in at least the tax liability number shown on last year’s return (the amount on line 63 of your 206 Form 1040).
  • If your 2016 adjusted gross income was over $150,000 (the amount shown on line 37 of your 2016 Form 1040), you are covered for 2017 if you pay in at least 110% of last year’s tax liability via withholding and/or estimated payments.

Regardless of your income level last year, you are cool with the feds if you pay in at least 90% of whatever your 2017 tax bill turns out to be. Obviously, this requires some guesswork on your part. Hence the term “estimated taxes.”

Finally, if this year’s income starts off low and ends up high (say because you have huge fourth-quarter capital gains), you should probably use the “annualized method.” This is an exception to the general rule that your four estimated tax payments should be equal. Under the annualized method, estimated payments correspond to your cash flow, so you won’t owe big installments on the earlier due dates before you have the money to pay them. Unfortunately, the calculations are fairly difficult. (See the instructions to Form 2210, Underpayment of Estimated Tax by Individuals, Estates and Trusts.)

You are free to use whichever of the above safe harbors does the best job of minimizing or deferring your estimated tax payments. However, if you don’t successfully pull into one of the safe harbors, you’ll be charged interest on the payment shortfalls. You can calculate the interest yourself when you file your 2017 return (using Form 2210 and entering the interest due on the appropriate line on page 2 of Form 1040) or let the IRS do the math and bill you.

Example: You figure you’ll owe the government $20,000 for this year (2017), but only $12,000 will be withheld from your salary. Obviously, you’ll be underpaid to the tune of $8,000. But there’s no need to make any estimated payments for this year if your 2016 tax liability was $12,000 or less (assuming 2016 adjusted gross income was $150,000 or less). The first safe harbor listed above gets you off the hook.

But if last year’s tax bill was $15,000, you’ll need to make $3,000 in estimated payments ($750 each) to reserve your safe-harbor berth (counting the estimated tax payments, you will have paid in a total of $15,000 for 2017, which gets you safe under the first safe harbor).

What if I miss a payment?

You won’t be the only one. You have several alternatives to avoid or at least minimize the interest-charge hit.

Say you will be getting a $2,000 refund from your 2016 return. After reading this, you are surprised to find out you owe $3,000 in estimated payments for 2017 ($750 for each quarter). Here’s the easy solution: When you file your 2016 return, tell the IRS you only want $500 back (by entering that amount on line 76a of your 2016 Form 1040). You can use the other $1,500 to cover your April and June estimated payments for this year (enter $1,500 on line 77 of your 2016 Form 1040). Then stay on track by making the last two payments for your 2017 tax year by the Sept. 15, 2017, and Jan. 15, 2018, deadlines.

You can also reduce or eliminate the interest-charge hit from missed estimated tax payments by increasing your salary withholding. Do this by filing a new Form W-4 with your employer. For example, say you owe a total of $3,000 in estimated payments. If you jack up your withholding between now and year’s end by that amount, your estimated tax payment obligation vaporizes.

Finally, you can stop the interest-charge bleeding simply by making oversize estimated payments to compensate for earlier underpayments. Say you missed the $750 payment due on April 18. If you pay in $1,500 on June 15, you’re all caught up. Of course, you’ll be charged two months’ interest on the $750 shortfall, but the interest is only a few bucks.

So you see, even if the estimated-tax rules apply to you, there are easy ways to lessen the pain.

This story has been updated.

Copyright 2017 MarketWatch, Inc. All rights reserved.

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12/08/2017

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How to Negotiate With the IRS Over Back Taxes #back #taxes


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How to Negotiate With the IRS Over Back Taxes

This week, Gail offers tips on how to settle your I.O.U. with Uncle Sam.

Let’s say that back in 2004 you exercised stock options that by the end of the year were worth less than what you paid for them. Or, maybe you simply forgot to report that time you hit the jackpot in Vegas. Or maybe your tax preparer had you invest in one of those can’t-fail schemes that promised to give you a big tax write-off.

In early 2005 you spend your savings account to turn your basement into a home theater. Then in mid-summer your world starts to crumble. You get laid off. Your child needs and emergency operation and you no longer have health insurance.

A few months later you receive a letter stating that the way the IRS calculates your taxes, you actually owe the government $34,000 for the previous year. Since you have no cash, you send back a check for a few hundred bucks hoping the IRS will interpret this as a good faith effort.

In 2006 you find a job at half the salary and are able to again (barely) cover your mortgage payments. However, to make ends meet during the period you were unemployed, you maxed out your credit cards. Collection agencies are hounding you. The IRS repeatedly reminds you of the obvious: you owe Uncle Sam a bunch of money from the year before and interest charges are being assessed.

Since you needed as much money as possible in order to throw an occasional check at your creditors, you didn’t have enough tax withheld from your paychecks last year. As a result, your (new) tax preparer informs you that you owe an additional $9,000 in federal income tax. By this time, you’re so far in the hole you can’t afford to include a check when you file your return.

The IRS notices keep coming. Since you don’t know what to do, you take the ostrich approach: you stuff them in a drawer. But you’re a nervous wreck. You’re sure you’ll show up for work one day and an IRS agent will be waiting for you.

Then, one sleepless night you stumble downstairs, turn on your 60-inch plasma screen TV and (in surround sound) hear the answer to your prayers:

Settle your back taxes for pennies on the dollar!

The actor in the ad describes something called an Offer in Compromise, explaining that this allows you to wipe out your tax bill by making an offer to the IRS of an amount that you feel are able and willing and able to pay. How civilized! The ad even includes a testimonial from Joe in Fargo who was able to discharge (the legal term for erase ) $200,000 in taxes by paying just $2,000, or some other amazingly puny amount.

Although you feel slightly stupid for not knowing about this sooner, a huge weight is lifted from your shoulders. The company sponsoring the infomercial will even help you fill out the paperwork — for a fee, of course. But who cares if you can wipe out your back taxes. You rush upstairs and wake your spouse to share this wonderful news.

Now here’s a little reality check.

Offers in Compromise have been around for years. But attorney Mike Goller at the Milwaukee firm of Reinhart Boerner says in order to literally settle your tax bill for pennies-on-the-dollar, you really have to be poor .

If you have no equity in your home, don’t own any assets or investments, and are not likely to earn enough to ever pay back your debt, the IRS will settle for a small amount of money just to save the cost of seizing whatever paltry assets you do own.

However, Goller says, If you’re upper middle class, the IRS will want a big chunk of your assets. Moreover, generally it’s not how much you owe. it’s how much you can pay .

And that is determined, not by you, but by the IRS.

In other words, don’t think for a second that you get to pick a number out of the sky and submit this as your offer. (Forget about proposing that your settlement be a percentage of your outstanding tax debt. That won’t fly at all.) There’s a formula that determines how much you can theoretically afford to pay. You arrive at this amount by filling out two IRS worksheets — Form 656 and Form 433-A (businesses would use Form 433-B). These require you to list the value of your assets, including your home, as well as all of sources of income. Everything must be documented.

After the paperwork is submitted to the IRS the fun begins. Government examiners will review your numbers. According to Goller, they could agree that your offer is acceptable, or they could come up with a different amount and kick it back.

You might have to negotiate what your future wages will be and/or the current value of your assets. This is where the compromise comes in.

Say you estimate your house is worth $200,000 and the IRS says it’s worth $300,000, says Goller. That’s a $100,000 difference in equity.

Oh, and that company you hired to fill out the forms for you? Don’t assume they’re going to help if you reach the negotiation stage. Read the fine print: it might say that their only obligation is to complete the original paperwork.

Here’s the good news: you don’t have to pay someone else $5,000-$10,000 to file an Offer in Compromise. You absolutely can do this yourself, according to Goller. Besides, wouldn’t you be better off if that money went toward reducing your tax bill, instead? The forms and instructions can be downloaded from the IRS website, www.irs.gov .

The number of Offer in Compromise submissions has increased significantly in recent years (those infomercials are apparently quite effective). Goller says one reason more folks are filing them is that once it receives your offer, generally, the IRS will stop its collection activity.

Translation: if the IRS is about to garnish your paycheck, filing an Offer in Compromise can put that on hold.

In order to reduce the volume of bogus Offer in Compromise requests (presumably by people who could afford to pay up, but want to postpone doing so), in recent years the IRS has instituted a number of changes in how these are processed. One of the first was to slap a fee of $150 on every application.

Goller, an expert on this topic, says the IRS is also taking a very technical approach. If your paperwork is incomplete or if you don’t meet specific deadlines, your offer will be rejected. I’ve seen offers denied because they were a day late, he says.

His advice: read the instructions carefully, be sure the worksheets are complete and accurate, attach copies of all back-up documents required — bank statements, pay stubs, brokerage statements, etc.— and, by all means, observe all deadlines.

However, Goller say it’s the latest policy change that has sent a shiver through the legal and accounting profession: effective last July, anyone submitting an Offer in Compromise has to include a non-refundable partial payment for 20 percent of the amount they are offering as a settlement.

Say you owe $50,000 in back taxes and penalties. According to the way you value your assets, you figure you should be able to settle for $10,000. In addition to the $150 filling fee, you now have to include a check for 20 percent of this.

You scrape together your last $2,000 and hope you can get another $8,000, says Goller. The risk is that the IRS rejects the offer and keeps the money. So you still owe $48,000. Now you’ve got to negotiate a new amount.

According to Goller, most offers are lump sum settlements where the taxpayer agrees to settle up with the government in one or no more than five payments, usually within 90 days after agreement is reached with the IRS.

However, he stresses that those 90 days could be a year from now because of how long it takes to process your offer. In other words, you’ve got time to come up with the rest of the money.

If you choose the periodic payment method it’s more costly. Although you get to spread your payments over several years, you have to make payments each month — including the months you’re waiting for the IRS to review your offer. And, either way, you have to pay a good percentage of your offer up front, says Goller.

At this point you may be wondering why you shouldn’t just file for bankruptcy and get your back taxes wiped out that way. The simple answer is that it’s probably not possible.

Philadelphia attorney Stephen Ross, who does a lot of bankruptcy work, says that under Chapter 13 certain debts are non-dischargeable, i.e. you still have to pay them back. This includes child support, attorney fees, up to a year of mortgage payments, and taxes owed.

Filing under Chapter 7 erases more debt, but this does not include child support, student loans, or taxes — with one exception. If your back taxes are at least five years old and you filed income tax returns for those years this could be discharged under Chapter 7, says Ross.

The bottom line: if you find you owe taxes you can’t afford to pay, the sooner you contact the IRS and try to work out a deal, the better.

If back taxes are keeping you awake at night, try a glass of hot milk and an old movie instead of watching those infomercials.

Hope this helps,
Gail


11/08/2017

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Property Tax Protest #property, #tax, #taxes, #protest, #consulting, #reduction, #houston, #harris,


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Property tax consultants

Our mission is to keep your taxes as low as possible.We accomplish this by:

  • filing property tax protests
  • attending valuation hearings
  • preparing and filing renditions
  • checking for any missing exemptions
  • examining the accuracy of the tax roll
  • obtaining missing tax bills for clients

With over 17 years experience in Property Tax Consulting and Real Estate Appraisal, Roberts Tax Appeals can efficiently and effectively handle all your property tax needs – for commercial, residential, and personal property.

Hearings start end of April

Although the deadline to protest account is May 31st every year for most properties, Harris County appraisal district starts scheduling hearings the last week of April.

They have done this for the past several years. They even schedule hearings on accounts that have not yet been protested. If you are a potential new client, it is best to contact us before mid April to make sure that your hearing date is not already past.

Our Staff

Colleen Roberts has over 17 years of success in the property tax field. She has handled thousands of property tax hearings in Harris, Fort Bend, Galveston, Brazoria and other surrounding counties. Her experience includes preparing and handling appeals on all types of property including retail, warehouses, apartments, office buildings, vacant land, residential, and business personal property.

Robin Woodward is our hearing specialist.

Dennis Woodward handles invoicing and accounting for our firm.


04/08/2017

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Lease Accounting Software – CoStar Real Estate Manager #lease #accounting #software,


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Lease accounting software that makes compliance easy.

  • Manage real estate, equipment and other leased assets
  • System completes SSAE 16 audit annually
  • Proprietary data transfer tool imports data and generates amortization schedules easily and correctly
  • Accounting workflow and audit trail of all data changes
  • Notifications and automated status changes for critical data elements including renewals
  • All FASB and IASB lease standards (ASC 840/FAS 13, ASC 842, IAS 17, IFRS 16) and types
  • Lease-by-lease analysis and classification
  • International currency conversion

Standard and Ad Hoc Reporting

  • Amortization detail (single and multiple leases)
  • Forecast and summary reports by lease classification
  • Accounting lease data exceptions
  • Facilitate restatements
  • Measure balance sheet impact

Additional Capabilities

  • Lease audit capability
  • Abstract rent as lump sum amounts or as rate per square foot per month and annually
  • Auto-calculate and generate gross amounts payable based on amounts entered per unit of measure and time
  • Define base rent in any currency
  • Define expenses to multiple parties
  • Map to multiple accounting systems, GL codes and accounts
  • Make and receive payments in multiple currencies for the same lease
  • Capture check numbers and payment information including check amount, date and associate with system charge
  • Rent details
  • Upcoming and planned rent increases
  • Invoice details
  • Rent review dates
  • Budget and forecast guidance
  • Accrual building option (pre-payments)
  • Define sublease relationships and pass through expenses from payable lease to either 3rd party or business unit subtenants
  • Accounts receivable lease functionality including invoicing
  • Automated percent rent calculation and processing including: auto-generate natural breakpoints, multi-tiered breakpoints, monthly, quarterly and annual breakpoints, lease level calculation detail, exclusions and deductions, CAPs on exclusions and decisions, greater of base rent or percent rent, minimum and maximum (floor and cap) on percent rent payments due
  • Create journal entries to be processed to GL
  • Create tax charges for states and areas
  • Store and manage multiple indexes (i.e. CPI-U, non-urban consumers, LIBOR etc.) on which charge adjustments are based
  • Abstract lease information such that automatic calculations can be performed (i.e. tie a rent charge to an index)
  • Abstract adjustment calculation rules related to CPI or other indexes, including: caps, floors, lifetime caps, adjustment periods (annual and multi-year), adjustment start date
  • Integrated reminder system that automatically schedules and sends emails when adjustments should be performed
  • Automatically calculate charge adjustments and update the charge according to established edit rules

03/08/2017

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National Tax Relief – Professional Tax Help for Small Businesses and


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We Fix Tax Problems

We understand the stress and uncertainty that one can feel when they get behind on their taxes. If you owe back taxes to the IRS (or State) and are ready to permanently resolve your tax debt – You have come to the right place! Our programs follow rules and procedures set up by the IRS to help people who cannot afford to pay back their debt to reduce or completely eliminate what they owe. If you need professional tax advice or help stopping IRS collection action against you or your business – We can help – Guaranteed!!

We Assist Taxpayers in all 50 States and overseas!

The experienced Tax Attorneys, Accountants and Enrolled Agents at National Tax Relief will help you find the tax solution that will work best for your specific situation. Whether you have just fallen behind on your taxes or have been struggling with the IRS for years, we will help you get back into tax compliance quickly and efficiently.

Call us Toll Free today at: 888-282-4697

Find out how our services and programs can help you. Our Tax Help Services are available Nationwide!

Copyright 1998 – 2013, Watax, LLC – All Rights Reserved


02/08/2017

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Ayala Insurance Service, Auto – Home – Life #phoenix #insurance, #phoenix


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Welcome to Ayala Insurance

Thank you for visiting our website for your insurance needs. We offer great rates on all of your coverage needs. Auto Insurance, Homeowners Renters Insurance, Motorcycles, Health, Life, Boats, RV’s, and more.

Get your custom auto insurance quote in just 5 minutes!

We’ve recently upgraded our online quote system! In our ongoing efforts to make managing your insurance needs easier, we have upgraded our quoting system here on the website. Live rates are presented on the website, and are sent to an agent for review follow up.

Our agents will contact you to schedule an appointment once they receive your quote. If you prefer immediate action, simply dial the quote number above to be connected with someone who can assist you further.

Need other kinds of insurance? We also do online quotes for Homeowner’s Renter’s Insurance. Motorcycle ATV Insurance. Boat Jet ski Insurance. If you still need other kinds of insurance, we’re just a phone call away.

Great insurance companies, with great customer service

At Ayala Insurance, our exceptional agents and customer service representatives work hard to get you the best possible coverage for your budget. Our goal is to make every customer a satisfied customer. We compare rates from many insurance companies to find the right fit for your specific situation. As an Independent Insurance Agency, we are able to compete very well against most rates out there. We take pride in finding better coverage at a lower cost to you.

Get the auto insurance coverage that’s right for you

Do you just need state minimum liability insurance? Full coverage? SR-22? Towing and Rental? Our agents will listen to your needs and help you find the perfect insurance product for you! With Ayala Insurance, you don’t need to worry about pushy agents trying to sell you coverage that you don’t want or need. We listen, and respond to your needs with a policy that fits.

Bundle all of your insurance needs for incredible savings and discounts

We offer a very wide range of insurance solutions for your convenience. From personal auto and homeowners insurance, to health and life insurance products. The more coverage we can bundle together for you, the better your rates will be! For you business owners out there, we offer just about any kind of insurance you need to keep your business assets protected. Commercial Package Policies, commercial auto and fleet auto policies, property, liability, group health insurance, and more! Ask an agent today.

Ayala Insurance offers many convenient ways to get an insurance quote

You can call or come by any of our offices, anytime. If you prefer, you may also Email us. or complete one of our online insurance quotes for the insurance product that fits your needs. Whatever is most convenient for you! Ayala Insurance Service makes it easy to get a great quote, purchase, and manage your policy.

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26/07/2017

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10 Tax Write-Offs You Aren – t Using to Your Advantage


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Mashable

10 Tax Write-Offs You Aren t Using to Your Advantage

You already know that you’re legally obligated to pay your taxes, but that doesn’t mean you should pay more than you owe.

Each year, American taxpayers leave money on the table by missing some key deductions. Run through these commonly overlooked write-offs to see if there are any you should be taking. It might just mean more money in your pocket this year.

1. Education

When it comes to education, you may be able to deduct up to $4,000 for tuition-related expenses for you, your spouse or a dependent. You also may be able to deduct up to $2,500 in interest paid on a student loan in 2013.

In addition to these deductions (which lower your overall taxable income), there are also two relevant credits that could save you thousands: the American Opportunity Tax Credit and Lifetime Learning Credit. IRS Pub 970 covers all the details.

2. The Job Hunt

If you were looking for a job in 2013, you may be able to deduct your job-search expenses — and that’s true whether or not you actually found a new job. Expenses can include employment agency fees, costs for printing and mailing resumes, advertising, and travel expenses for interviews.

But the caveats include:

Your job search must be for a position in the same line of work

You can’t deduct expenses if it’s your first job

These expenses are part of your “miscellaneous deductions,” which need to exceed 2% of your adjusted gross income to qualify

Refer to IRS Pub 529 for more details on all of this.

3. Home Ownership

If you bought or owned a home in 2013, you’re probably already aware that you can include your mortgage interest in your itemized deductions. But there are other tax deductions related to home ownership that can add up as well.

You can deduct what you pay in property taxes, interest paid on a home equity loan, any points you paid when you bought your home, premiums paid for Private Mortgage Insurance, and potentially any home improvements made for medical care.

4. Health Costs

Did you have a lot of medical and dental expenses last year? If your medical expenses exceeded 10% of your adjusted gross income for 2013, you can claim a deduction with your itemized deductions. Potential deductible expenses include preventative care, surgeries, doctor’s visits, fertility treatments, psychologist and psychiatrist visits, prescription medication, glasses, contact lenses and even the cost of travel for medical care.

Generally speaking, you cannot deduct non-prescription drugs, your health club dues or anything that was reimbursed by insurance. You also cannot include your health insurance premiums (although self-employed people can deduct their health insurance costs separately). IRS Publication 502 gives the details on itemizing medical expenses.

5. Charitable Donations

If you’re itemizing your deductions on Schedule A, any charitable donations can help lower your tax bill. This includes any cash donations you made throughout 2013 — don’t forget any text message donations (note: Your cell phone bill is a sufficient record as long as it shows who you sent money to, when and for how much).

If you cleaned out your closet and donated items (clothes, furniture, etc.) to Goodwill or another charity, you can deduct the value of these items. Get a receipt in case you’re audited. In addition, if you volunteer for a qualified organization, you can’t deduct the value of your time, but you can deduct travel expenses for getting there (14 cents per mile). Refer to IRS Pub 526 for more details on what can and can’t be deducted.

6. Moving for Your Job

If you landed a new job and moved in 2013, congratulations — your moving expenses may be deductible. And the good news is that you can take this write-off even if you don’t itemize your deductions. Check out IRS Pub 521 to see if you qualify.

In general, your new job location must be at least 50 miles away from your home (or 50 miles farther from your old home than your previous job was from your old home).

7. Energy Efficiency Upgrades

If you made your home more energy efficient last year, you may qualify for a tax credit. For example, you may be able to claim a credit of 10% of the cost for qualified energy efficient insulation, windows, doors and roof for your home, as well as 30% of the cost for installing alternative energy equipment in your home (such as solar hot water heaters or wind turbines).

These credits are both claimed on IRS Form 5695. In addition, for 2013, the purchase of plug-in hybrid-electric and electric vehicles may qualify for a tax credit.

8. Self-Employment Expenses

If you’re self-employed (whether it’s your full-time job or a part-time gig ), you’ve got a grab bag of deductions to pull from. You can deduct expenses from your home office (including pro-rated rent/mortgage, energy bill and insurance for that part of the house).

Don’t forget whichever conferences you attended in 2013, or the books, subscriptions, technology and office supplies you purchased to keep your business going. In addition, you can deduct your health insurance, as well as 50% of your self-employment tax. Visit the IRS’ self-employed tax center to learn more.

9. Children

If you welcomed a new baby in 2013, you are eligible for new tax deductions -– including another exemption (which represents a $3,900 deduction for 2013). Parents that meet certain income requirements can qualify for the Earned Income Tax Credit as well as the Child Tax Credit. You may also be able to claim the Child Care Tax Credit for qualified child care costs for any care provided so you could work or look for work.

10. Parents as Dependents

Most people know to claim children as dependents, but fewer are aware that if they cared for an elderly parent, that parent may qualify as a dependent. The same applies to other relatives such as uncles, aunts, grandparents, nieces, nephews, etc. (note that certain relatives do not have to live with you to be considered a dependent).

To claim a dependent on your tax return, you have to meet certain criteria, including that the dependent’s income can’t exceed $3,900 for 2013 and you need to have provided at least half the support for that person. Check out IRS Pub 501 for more details.

Keep in mind that this is all general information to put these valuable deductions on your radar. You’ll still need to research the relevant IRS documents or check with your tax advisor to make sure you qualify for a particular credit or deduction.


21/07/2017

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Highest Tax Saving Bank Fixed Deposit Rates 80C – May 2017


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Highest Tax Saving Bank Fixed Deposit Rates U/S 80C May 2017

Highest Tax Saving Bank Fixed Deposit Rates 80C May 2017

Tax Saving Fixed Deposits one of the most popular way to save taxes u/s 80C of income tax. These are like normal Fixed Deposit with banks but is labeled as “Tax Saving FD” while making the deposit.

Why you Should Invest?

  1. Convenient to invest. ICICI Bank, SBI, HDFC Bank, etc offers online facility for Tax Saving FD
  2. Redemption on maturity comes directly to your bank account
  3. High Safety FD up to Rs 1 Lakh is insured

Why you Should Not Invest?

  1. There are lot of competing products like EPF, PPF, ELSS to exaust the investment of Rs 1.5 Lakh u/s 80C
  2. The interest earned is taxable
  3. Cannot be withdrawn prematurely
  4. Cannot be pledged to secure loan or as security

Tax Saving Fixed Deposit Interest Rate

Bandhan Bank and Bank of India have reduced their interest rates (compared to last month) on tax Saving FDs.

Also State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala and State Bank of Travancore have merged with State Bank of India effective April 1, 2017.

As of May 1, 2017 banks are offering 6.00% 7.50% for general public and 7.00% 8.00% for Senior Citizens.

  1. The best Tax Saving Fixed Deposit Interest offered is 7.50% for General Public byThe Ratnakar Bank
  2. The best Senior citizens Tax Saving Fixed Deposit Interest offered is 8.00% by The Ratnakar Bank

The table below lists the banks in alphabetical order with their respective interest rate offer on Tax Saving FDs for General and Senior Citizens.

The highest Interest Rates have been highlighted :

Taxation TDS Tax Saving Fixed Deposits:

The interest received on tax Saving Fixed Deposit is fully taxable. The interest income is considered as income from other sources for Tax filing and taxed at marginal tax rates applicable.

TDS would be deducted at the rate of 10% of the interest paid, if the interest paid exceeds Rs 10,000 in a financial year. You can see the same in Form 26AS .

In case your income does not exceed taxable slab and so want to avoid TDS, you can submit Form 15G or 15H when making the deposit. You would also need to submit the form at the start of every financial year to the concerned bank branch.

Key Points – Tax Saving FD:

Below are some of points to keep in mind while investing in Tax Saving Deposits:

  1. As the Tax Saving FD scheme was introduced in Budget of 2006, it s also known as Tax Saving Deposit scheme 2006 (Notification Number 203/2006 and SO1220 (E) dated 28/07/2006)
  2. Most of the banks accept deposit of 5 Years only. However there are banks with deposit tenures of more than 5 Years
  3. You can deposit on either Single or Joint name. However benefit of tax deduction is available for first holder only.
  4. Most banks offer interest rate which is similar to their 5 years term deposits. Only a few banks give slightly higher interest rate for their Tax Saving Fixed Deposits
  5. Most banks give Senior citizens and their staff members additional interest of 0.25% to 0.5%
  6. Depositor can opt for either cumulative or non-cumulative way of crediting periodical interest
  7. Don’t be mislead by banks advertisements about their yield on Tax Saving FDs. Those are manipulative calculations
  8. Be cautious of small co-operative banks as they have higher risk than bigger private and public sector banks
  9. Depositor gets benefit U/s.80C of the Income Tax Act. 1961
  10. Minimum deposit is Rs.100 and in multiples thereof
  11. Maximum deposit in a Financial Year Rs.1,50,000/- [i.e. 1st April to 31st March of the following calendar year]
  12. Deposits cannot be withdrawn prematurely
  13. Deposits cannot be pledged to secure loan or as security

Disclaimer:We have tried to keep interest rates up to date, but as these change frequently you are advised to check with the bank before investing. Also it would be great if you can point out any errors through comments or email!

Direct link for Interest Rates on FDs of Banks:

Below is the direct link for Interest Rates of Major Banks. You might want to check the interest rates before doing your FD.


10/07/2017

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Reinstatement of Airline Ticket Taxes #san #francisco #travel

#àirline tickets
#

Reinstatement of Airline Ticket Taxes

Aug. 5, 2011

IRS Statement on Airline Ticket Taxes

Today’s Congressional action extending the Federal Aviation Administration authorization reinstates retroactively the airline ticket taxes for passengers who traveled during the lapse of the FAA’s authorization. As a result of the bill Congress passed today, passengers who purchased tickets prior to July 23 and traveled between July 23 and the date of enactment of today’s legislation are not entitled to a refund of the airline ticket excise tax. Additionally, the IRS intends to provide relief for passengers and airlines with respect to ticket taxes that were not paid or collected because of the lapse.

The IRS intends to provide guidance to the airlines which will allow for an orderly restart of the collection of ticket taxes. Airlines will have from the time of enactment of the legislation through 12:01 a.m. on Monday, Aug. 8, to resume collection of the ticket taxes.

The IRS is currently reviewing other effects of the legislation and will issue future guidance.

Aug. 10, 2011

Retroactive Reinstatement of the Air Transportation Excise Taxes: Frequently Asked Questions

Q. How are federal passenger air transportation excise taxes (commonly referred to as “ticket taxes”) collected?

A. The tax generally is imposed on the “amount paid” for commercial air transportation. When a person purchases a ticket for air transportation, the airline collects the federal passenger air transportation excise taxes from the purchaser and then later pays the collected amount over to the IRS. The amount of tax collected from the purchaser is shown on the purchaser’s receipt as a separate line item, often labeled “federal taxes.”

Q. What just happened to the FAA excise tax?

A. On July 22, the Federal Aviation Administration budget authority expired and with it, so did the authority for airlines to collect the excise taxes on tickets. On Aug. 5, Congress passed an extension of the FAA authorization, which also retroactively reinstated the excise tax from July 23, 2011. During the roughly two-week lapse, airlines were not authorized to collect the taxes, but the retroactive reinstatement in the law put the taxes back in place as though they had never expired. The IRS is providing relief for airlines and taxpayers who purchased tickets during that two week lapse. This means the IRS will not be retroactively collecting the tax since it was not collected and paid during this two-week period. Airlines had until 12:01 a.m. on Monday, Aug. 8, to resume collection of the ticket taxes.

Q. If I purchased my ticket before July 23, 2011, and traveled on or after July 23, 2011, during the partial-shutdown of the FAA, am I entitled to a refund for the federal air transportation excise taxes that I paid when I purchased the ticket?

A. If you purchased the tickets before July 23, when the lapse of the excise tax initially occurred, and traveled during the partial-shutdown of the FAA, you are not entitled to a refund because of the retroactive reinstatement of the law.

Q. If I purchased my ticket after the tax initially expired and I traveled before it was reinstated, can the airline collect the tax?

A. No, airlines were not authorized to collect the tax during any lapsed period in which the tax did not apply.

If you purchased a ticket between July 23, 2001, and August 7, 2011 — regardless if you flew then or at a later date in time — the airlines were not authorized to collect the tax and so passengers did not pay the excise tax. While the tax was reinstated retroactively by Congress, the IRS has provided relief during this lapse for taxpayers and airlines and will not collect the excise tax covering that period.

Q. If I purchased my ticket after the tax expired and I travel after it was reinstated, will I now have to pay the airline ticket tax since it was reinstated?

A. If you purchased your ticket during the two-week lapse of the tax and plan to travel after the tax was reinstated, you did not pay the airline ticket tax. However, the IRS is providing relief for these taxpayers and will not be collecting the excise tax on this ticket purchased during the lapsed period of time.

Q. Which federal air transportation excise taxes expired at the end of July 22, 2011, and were retroactively reinstated on Aug. 5?

A. The following federal air transportation excise taxes were affected:

  • The 7.5 percent tax on the base ticket price.
  • The domestic segment tax of $3.70 per person per segment (a single takeoff and single landing).
  • The international travel facilities tax of $16.30 per person for flights that begin or end in the U.S. or $8.20 per person for a flight that begins or ends in Alaska or Hawaii.
  • The 6.25 percent tax on the amount paid for transporting property by air.

Caution. Other taxes and fees, such as state taxes, security fees, passenger facility charges (PFCs) and excess baggage fees, are not affected by the expiration of the taxes listed above.

Page Last Reviewed or Updated: 03-Mar-2015





04/07/2017

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State of Delaware – Division of Revenue – Services for the


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State of Delaware – Search and Services/Information

Franchise Taxes

Corporations incorporated in Delaware but not conducting business in Delaware are not subject to corporate income tax, [30 Del.C, Section 1902(b)(6)] but do have to pay Franchise Tax administered by the Delaware Department of State.

Any corporation that is incorporated in Delaware (regardless of where you conduct business) must file an Annual Franchise Tax Report and pay Franchise Tax for the privilege of incorporating in Delaware.

Franchise Taxes and annual Reports are due no later than March 1st of each year.

An annual Franchise Tax Notification is mailed directly to the corporation’s registered agent. Blank Franchise Tax Returns are not available. The Delaware Division of Corporations will require all Annual Franchise Tax Reports and alternative entity taxes to be filed electronically.

All corporations incorporated in the State of Delaware are required to file an Annual Report and to pay a franchise tax. Exempt domestic corporations do not pay a tax but must file an Annual Report. The Annual Report filing fee for all other domestic corporations is $50.00 plus taxes due upon filing of the Annual Report. Taxes and Annual Reports are to be received no later than March 1st of each year. The minimum tax is $75.00 for corporations using the Authorized Shares method and a minimum tax of $350.00 for corporations using the Assumed Par Value Capital Method. All corporations using either method will have a maximum tax of $180,000.00. Taxpayers owing $5,000.00 or more pay estimated taxes in quarterly installments with 40% due June 1, 20% due by September 1, 20% due by December 1, and the remainder due March 1. The penalty for not filing a completed Annual Report on or before March 1st is $125.00 Interest at 1.5% per month is applied to any unpaid tax balance.

Although Limited Partnerships, Limited Liability Companies and General Partnerships formed in the State of Delaware do not file an Annual Report, they are required to pay an annual tax of $250.00. Taxes for these entities are due on or before June 1st of each year. Penalty for non-payment or late payment is $200.00. Interest accrues on the tax and penalty at the rate of 1.5% per month.

For more detailed information and an incorporating package, please contact:

The Delaware Department of State
Division of Corporations
PO Box 898, Dover, Delaware 19903
(302) 739-3073
Website: www.corp.delaware.gov

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13/06/2017

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A guide to airline-ticket taxes and fees. #around #the #world #travel

#air travel tickets
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By Bob Porterfield, Associated Press Writer

SAN FRANCISCO Air travel is taxing in more ways than passengers imagine. Besides the long security lines, overbooked flights and lost baggage, passengers are paying a laundry list of taxes and charges often invisible even to the most seasoned traveler.

The nation’s air transit system is financed primarily through federal excise taxes and other special charges that have collectively generated $117 billion since 1997 mostly from the pockets of airline passengers. A smaller portion comes from airlines and freight carriers in the form of fuel and cargo taxes, and these costs also are frequently passed along to customers.

The taxes and fees currently attached to each ticket purchase, as compiled by The Associated Press:

Ticket taxes

A 7.5% federal levy is attached to every plane ticket. These are collected by the airlines and passed along to the Internal Revenue Service, which deposits them in the Airport and Airway Trust Fund. A separate Rural Airport Tax of 7.5% is assessed on flights that begin or end at rural airports, but those passengers then are exempt from the other ticket tax and the segment tax. Passengers traveling between the continental United States and Alaska or Hawaii pay an additional $7.50 in taxes. Over the past decade, $49.6 billion has been collected in ticket taxes.

Segment tax

The Passenger Flight Segment Tax, currently $3.40, is charged each time a passenger takes off and lands. Passengers on a non-stop, roundtrip from Los Angeles to New York would pay $6.80, for example, while passengers flying roundtrip from Los Angeles to New York via Phoenix and Kansas City would pay $20.40. The IRS says there’s no limit to the number of segments taxed, although it’s not collected in cases in which flights are diverted. Since 1997, passengers have paid $14.4 billion in segment taxes, with more than half that collected since 2003. The increased collections are largely attributed to the growth of low-cost carriers that make intermediate stops en route to a passenger’s ultimate destination.

International arrival and departure tax

The current tax is $15.10 per passenger on all flights departing for or arriving from foreign destinations. The fee is tied to the consumer price index and has risen 12.7% over the past five years. Since 1997, the tax has raised $12.7 billion.

Security fees

Created by Congress after the 2001 terrorist attacks, these fees cost customers $2.50 per boarding, with a $5 maximum per one-way trip, even with multiple segments. The money $7.6 billion since collections began in 2002 is paid directly to the Transportation Security Administration. How the TSA spends the money is something of a mystery. Almost from the day it was established, the agency has been criticized for poor financial management; last November, an independent audit by KPMG harshly criticized the agency for failing to comply with basic accounting practices. In 2005, the TSA was forced to restate its finances due to an “error in accounting for passenger and air carrier aviation security fees.”

Passenger facility charge

A local tax collected by airlines and paid directly to the airport where it’s levied. Since 1997, this has generated $18.4 billion, largely used for airport construction and other improvements. Another $35 billion still is due on projects already approved by the FAA. The FAA tells each airport how much it can charge from $3 to $4.50 for each leg of a trip, to a maximum of $18 on a single ticket sale. Nationwide, 365 airports currently charge PFCs, including most of the nation’s commercial hubs. This fee could be raised to $6 or more under a new funding proposal. The National Association of State Aviation Officials would like to see it raised to $7.50 to produce additional money for airport improvements and free up money for smaller airports; airlines oppose an increase and say more should be spent on air operations rather than terminal improvements.

Copyright 2007 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.





29/04/2017

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Reinstatement of Airline Ticket Taxes #travel #o #city

#àirline tickets
#

Reinstatement of Airline Ticket Taxes

Aug. 5, 2011

IRS Statement on Airline Ticket Taxes

Today’s Congressional action extending the Federal Aviation Administration authorization reinstates retroactively the airline ticket taxes for passengers who traveled during the lapse of the FAA’s authorization. As a result of the bill Congress passed today, passengers who purchased tickets prior to July 23 and traveled between July 23 and the date of enactment of today’s legislation are not entitled to a refund of the airline ticket excise tax. Additionally, the IRS intends to provide relief for passengers and airlines with respect to ticket taxes that were not paid or collected because of the lapse.

The IRS intends to provide guidance to the airlines which will allow for an orderly restart of the collection of ticket taxes. Airlines will have from the time of enactment of the legislation through 12:01 a.m. on Monday, Aug. 8, to resume collection of the ticket taxes.

The IRS is currently reviewing other effects of the legislation and will issue future guidance.

Aug. 10, 2011

Retroactive Reinstatement of the Air Transportation Excise Taxes: Frequently Asked Questions

Q. How are federal passenger air transportation excise taxes (commonly referred to as “ticket taxes”) collected?

A. The tax generally is imposed on the “amount paid” for commercial air transportation. When a person purchases a ticket for air transportation, the airline collects the federal passenger air transportation excise taxes from the purchaser and then later pays the collected amount over to the IRS. The amount of tax collected from the purchaser is shown on the purchaser’s receipt as a separate line item, often labeled “federal taxes.”

Q. What just happened to the FAA excise tax?

A. On July 22, the Federal Aviation Administration budget authority expired and with it, so did the authority for airlines to collect the excise taxes on tickets. On Aug. 5, Congress passed an extension of the FAA authorization, which also retroactively reinstated the excise tax from July 23, 2011. During the roughly two-week lapse, airlines were not authorized to collect the taxes, but the retroactive reinstatement in the law put the taxes back in place as though they had never expired. The IRS is providing relief for airlines and taxpayers who purchased tickets during that two week lapse. This means the IRS will not be retroactively collecting the tax since it was not collected and paid during this two-week period. Airlines had until 12:01 a.m. on Monday, Aug. 8, to resume collection of the ticket taxes.

Q. If I purchased my ticket before July 23, 2011, and traveled on or after July 23, 2011, during the partial-shutdown of the FAA, am I entitled to a refund for the federal air transportation excise taxes that I paid when I purchased the ticket?

A. If you purchased the tickets before July 23, when the lapse of the excise tax initially occurred, and traveled during the partial-shutdown of the FAA, you are not entitled to a refund because of the retroactive reinstatement of the law.

Q. If I purchased my ticket after the tax initially expired and I traveled before it was reinstated, can the airline collect the tax?

A. No, airlines were not authorized to collect the tax during any lapsed period in which the tax did not apply.

If you purchased a ticket between July 23, 2001, and August 7, 2011 — regardless if you flew then or at a later date in time — the airlines were not authorized to collect the tax and so passengers did not pay the excise tax. While the tax was reinstated retroactively by Congress, the IRS has provided relief during this lapse for taxpayers and airlines and will not collect the excise tax covering that period.

Q. If I purchased my ticket after the tax expired and I travel after it was reinstated, will I now have to pay the airline ticket tax since it was reinstated?

A. If you purchased your ticket during the two-week lapse of the tax and plan to travel after the tax was reinstated, you did not pay the airline ticket tax. However, the IRS is providing relief for these taxpayers and will not be collecting the excise tax on this ticket purchased during the lapsed period of time.

Q. Which federal air transportation excise taxes expired at the end of July 22, 2011, and were retroactively reinstated on Aug. 5?

A. The following federal air transportation excise taxes were affected:

  • The 7.5 percent tax on the base ticket price.
  • The domestic segment tax of $3.70 per person per segment (a single takeoff and single landing).
  • The international travel facilities tax of $16.30 per person for flights that begin or end in the U.S. or $8.20 per person for a flight that begins or ends in Alaska or Hawaii.
  • The 6.25 percent tax on the amount paid for transporting property by air.

Caution. Other taxes and fees, such as state taxes, security fees, passenger facility charges (PFCs) and excess baggage fees, are not affected by the expiration of the taxes listed above.

Page Last Reviewed or Updated: 03-Mar-2015





28/03/2017

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