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5 Essential End Of The Year Tax Planning Tips From The Tax Resolution Institute

December 27, 2011 By
End Of The Year Tax Planning Tips

End Of The Year Tax Planning Tips

Recognizing the importance of tax planning as 2011 ends and 2012 begins, the Tax Resolution Institue offers you this handy guide of 5 essential end of the year tax planning tips. Some may apply to you and some may not, but we are certain that there is at least two or three tips in this document that will help you with your tax planning. After all, although the Tax Resolution Institute focuses on helping individual and companies resolve delinquent tax debts, we also believe in providing techniques and strategies as a form of prevention to help you avoid such serious tax problems.

1) Sell Losing Stocks By The End Of The Year To Offset Capital Gains

One strategy you can use to reduce your taxes is to examine your investment portfolio and make sure to offset any capital gains by selling the stocks with capital losses. Capital losses offset capital gains in the year that the investments are sold off. However, if your losses exceed your profits, then the net loss is tax deductible but only up to $3,000 in net losses for that year. Still, the remainder of those losses carry over to the subsequent year as what is described as a “Capital Loss Carryforward” by the Internal Revenue Service

In addition, you must be careful when timing the sale of any losing positions. Any purchase of “substantially identical stock or securities” (from Publication 550) within 30 days of selling a security at a loss will be deferred. The key is to sell one investment at a loss, and purchase a similar (but not “substantially identical”) investment that helps build your portfolio. Always get the advice of a tax planning professional when making such a decision.

2) Be Fully Aware Of Tax Credits You Can Use To Lower Your Tax Bill

Yes, when it comes to tax credits, it often seems that the qualifying rules for each program  are both complex and overly specific.  Nevertheless, you should explore any or all of the options to see if they can be used to lower your overall income tax debt for that calendar year. Here are some of the tax credits used most often:

A. Child Tax Credit + Child and Dependent Care Credit:

The child tax credit provides you with a tax credit of $1,000 per qualifying child under the age of seventeen.  This credit is phased-out for taxpayers with modified adjusted gross incomes (AGI) in excess of $110,000 for married-joint filers, $55,000 for married filing separately, and $75,000 for all other taxpayers. In addition, if you’re paying someone else to care for a child under age 13 so you can work, then you may be able to claim the child and dependent care credit.

B. Hope and Lifetime Learning Credit:

If you are paying secondary education expenses, then the American Opportunity Credit, Hope Credit and Lifetime Learning Credit provide tax credits up to $2,500 for each qualifying student enrolled in a qualifying institution of higher education.

C. Helping The Environment - Hybrid Car Credit + Energy Saving Devices:

If you buy or lease a new hybrid car or truck, then you may be eligible for a tax credit of $250 to $3,400 per car depending on the fuel economy of the vehicle.  New car manufacturers will provide you with the details of these tax savings programs and you can also can find them online. In addition, if you have installed some of the newer energy saving devices in your home such as air conditioners, water heaters, furnaces, boilers or solar panels, then you may be eligible for a tax credit of up to $2,000.  Check with your utility company to find out which energy saving devices provide tax credits or rebates.

3)  Place Funds In Your 401k Retirement Account

401k Contributions Key For Tax Planning

401k Contributions Key For Tax Planning

If you are looking to lower your tax bill, one of the most effective ways to keep more of your gross income is to have it directed into a 401k retirement account. The 401k rules are quite generous when it comes to lowering income.  On a pre-tax basis you can invest up to $17,000 in 2012 (16,500 in 2011), and your contributions are often matched by your employer. Such an investment for your future security is nothing less than a win-win.

 

4) Please Do Not Forget Or Ignore Your Gambling Earnings And Losses

In this modern age of high-stakes poker online, in the casinos, and on television, more and more people are gambling each year with tremendous losses and some excellent earnings. Whether you play poker or back your favorite college team with a bookie, shoot craps or bet on the horses, all gambling winnings must be reported as taxable income. In addition, gambling losses may be claimed as deductions, up to the amount of your winnings. What is essential to remember is that gambling winnings and losses must be reported separately. If you file a tax return with with the IRS and do not report such figures, it is considered to be tax evasion.

5)  Organize And Maintain Your Paperwork And Records

Yes, we know this seems like a hassle, but it is a necessity as well? The IRS recommends that you keep all tax-related records for 3 years in case of an audit. But some old tax documents, such as last year’s W-2′s, can come in handy when you are filling out your tax return this year.

Where Are All Of My Financial Papers?

Where Are All Of My Financial Papers?

Here are examples of tax-related documents you should organize:

  • W-2 forms
  • Pay stubs for the year
  • Mortgage payment stubs and/or home purchase closing statement
  • Receipts from anything you might claim as an itemized deduction
  • Receipts from donations given to any charity, including text message donations
  • Any receipts for business travel expenses + your car mileage log for business use
  • Credit card statements and bank statements, including canceled checks
  • Medical bills (particularly if exceeding 7.5% of your income)
  • 1090G form (for deducting state or local income taxes)
  • 1090 forms (from any dividends or other income paid to you)

To make your mountain of documents easier to store, try scanning them and keeping them as PDF files. This way you can print them out if you need them. If you do this, always remember to back up your computer. The IRS will not take kindly to the excuse that you scanned your financial documents and your hard drive failed. Always be careful!

That covers many of the bases for now. The Tax Resolution Institute are not only experts when it comes to tax resolution services, but we also have extensive experience in tax planning and tax prevention strategies. Contact us today for a free consultation so we can help you ensure the profitability of your financial future.

Filed Under: Tax Planning, Tax Relief, Tax Resolution Services Tagged With: , , , , , , , ,

The IRS Begins The 2011 Tax Season Hardcore, Filing Tax Liens Against and Going After High Profile Individuals

January 21, 2011 By
Certainty of Death & Taxes and the IRS Wants You Alive and Paying

Certainty of Death & Taxes and the IRS Wants You Alive and Paying

The Internal Revenue Service began the 2011 tax season hardcore by going after the tax debts of several well-known celebrities with tax liens while continuing to punish the financially compromised and distressed middle-class. With the country still in economic crisis, IRS Revenue Officers are focusing on the collection of delinquent income taxes with a renewed vigor. Rappers and actors seem particularly to be under the microscope of IRS collections enforcement.

The Tax Resolution Institute believes that most high profile individuals and celebrities get in trouble with the IRS and delinquent tax debts because of poor business management. Not only does TRI offer the best in tax resolution services if you have back income taxes owed and unfiled tax returns, we also offer exceptional business management and tax planning services. Our game plan is simple: if you are in the spotlight and working hard to make your money, you should never find yourself in a tax crisis with the IRS.

The famous saying is that there are two certainties in life — death and taxes. To be blunt, a tax lien is only the beginning. the IRS does not want you dead because they want you working hard so you can pay them the taxes you owe, the penalties and the interest until you have nothing left. This is the job of an IRS Revenue Officer — to collect back income taxes at any cost. Don’t let this happen to you — contact TRI today to find real tax relief. Others say it: We do it! If you need tax resolution services, feel free to call the Tax Resolution Institute at 877-829-8370 or fill out our  tax resolution form.

Some of the High Profile Individuals allegedly starting 2011 with tax liens and other tax- related problems include the following:

Val Kilmer — The actor had a nearly $500,000 IRS tax lien filed against him.

Wyclef Jean — Singer and Former Haitian Presidential Candidate has 2.1 million in IRS tax liens filed against him.

Teri Polo — Known as Pam Focker from the Meet The Fockers movie series, she has an outstanding IRS tax lien of $116,620.

Randy Quaid — The Independence Day actor and brother of Dennis Quaid owes over $1 million in back taxes to the IRS.

Xzibit —The former Pimp My Ride television host and West Coast emcee owes the IRS $959,523 in back taxes.

Lil Jon — The Rapper and Music Producer had an IRS tax lien filed against him for $638,937 lien in June 2008, listing a $1.9 million oceanfront South Carolina home as his address. Unfortunately, the home was foreclosed on and sold in August 2010.

Swizz Beatz — The Producer Husband of singer Alicia Keyes owes Over $2.6 Million To IRS.

IRS Tax Lien Like A Target On Your Back

IRS Tax Lien Is Like A Target Stamped On Your Back

Filed Under: Tax Lien Problems, Tax Planning, Tax Relief Tagged With: , , ,

IRS Files Tax Liens Against Singer Wyclef Jean, Producer Swizz, And More Rappers In New York And Los Angeles

August 7, 2010 By

The Internal Revenue Service has filed tax liens totaling $2.1 million against Haitian born singer Wyclef Jean, who recently announced his plans to run for the presidency of his native country.  The singer was not the only American performer to have tax liens filed against them by the IRS due to poor tax planning and business management. Recently, rapper Young Buck and top producer Swizz, who just married singer Alicia Keyes, also had major tax liens filed against them by the IRS. If they had come to the Tax Resolution Institute for both tax planning before the fact or tax resolution after their money was mishandled, such tax problems would never have arisen.

Wyclef Jean In Tax Lien Trouble With IRS

Wyclef Jean In Tax Lien Trouble With IRS

The IRS filed three tax liens against Wyclef Jean for his 2006, 2007 and 2008 taxes. The agency filed the first tax lien in 2007 for $792,269, the second tax lien was filed last July for $599,167 and the third tax lien was filed in May of this year for $724,332. The 37-year-old singer, who was a member of the Fugees, has paid off earlier tax liens from New Jersey and New York for smaller amounts. The tax liens took on a deeper significance recently after Jean announced his plans to run for the presidency of Haiti. In addition, the besieged singer announced he would resign as leader of his charitable foundation, Yele Haiti, which has been providing aid to the country.

Poor Tax Planning: Singers And Rappers With IRS Tax Liens

Poor Tax Planning: Singers And Rappers With IRS Tax Liens

Should being such an extremely delinquent d taxpayer preclude Jean from trying to reverse the fortunes of his homeland? From our perspective as tax planning and tax resolution services experts, such an inquiry is not really the question at hand. What is more important is that Jean is just one more example of American performers, both singers and rappers, with serious problems with the IRS.

Besides Jean, chart-topping producer Swizz, who married music superstar Alicia Keys last weekend off the coast of X, has had 35 tax liens placed against him over the course of the last seven years. Swizz, born Kasseem Dean, owed more than $4.1 million in three different states between 2003 and 2010. Although he is paying on the bill, the hit making producer still owes over $2.1 million to the IRS. It is one more example of a high profile individual with federal income tax problems and state income tax problems at the same time.

Tax Lien Filed Against Star Producer Swizz

Tax Lien Filed Against Star Producer Swizz

In addition, Detroit rapper Obie Trice owes almost $300,000 dollars to the government.  The IRS filed a tax lien against Obie Trice on June 21st, claiming the rapper is behind on taxes to the tune of $298,000. Earlier this week, federal agents raided the home of Nashville, Tennessee rap star Young Buck and confiscated computers, studio equipment and other assets, to help offset his $300,000 tax burden.

These tax problems should be a huge wake-up call for all entertainers to stay on top of their business affairs by having the best tax planning accountants and tax resolution experts on their personal teams. The Tax Resolution Institute is not only the preeminent Tax Resolution Services firm in the country. In addition, through Creative Arts Management, TRI provides first-rate long-term tax planning and business management. If Wyclef Jean had chosen the Tax Resolution Institute to represent him from the beginning, he never would have found himself in such an untenable position and his passionate run for Haiti’s presidency would not be marred by IRS tax liens and financial scandals.

Filed Under: Income Tax Problems, Tax Lien Problems, Tax Planning Tagged With: , , ,

Is Wesley Snipes Guilty Of Tax Evasion Or The Victim Of Criminal Financial Management And Tax Planning?

June 28, 2010 By

Is Wesley Snipes really guilty of criminal tax evasion or was the star unaware of what was happening because he was the victim of bad financial management? Since Ken Starr, his former investment advisor and financial manager has been indicted for a Ponzi scheme that reflects Bernard Madoff’s crimes, shouldn’t Snipes be given the benefit of the doubt and a new trial? The serious income tax problems of Wesley Snipes could have been avoided with capable tax planning and management.

If Wesley Snipes had placed his financial management and tax planning in the capable hands of Creative Artists Management, all of these negative consequences never would have arisen. By failing to align themselves with trustworthy advisors, Hollywood celebrities have a striking tendency to fall victim to business charlatans and financial schemes that land them in hot water. In addition, the Tax Resolution Institute has helped many celebrity and ultra-wealthy clients (who always remain anonymous so their privacy is protected) out of serious tax problems and tax relief challenges.

Is Wesley Snipes a Victim of a Criminal Tax Planner?

Is Wesley Snipes a Victim of a Criminal Tax Planner?

Wesley Snipes’ attorneys are hoping his former financial adviser Ken Starr’s arrest could pave the way for a new trial on tax evasion charges that landed the star of the “Blade” trilogy a three-year prison sentence. Snipes has been seeking to have his conviction overturned, but now his attorneys want to file a new appeal based on the arrest of Ken Starr. Starr, the one-time financial adviser to Snipes and other celebrities, was charged in May with securities fraud worth $59 million. Did the IRS believe the testimony of Ken Starr, turning Wesley Snipes from the financial victim into the tax debt fall guy?

Ken Starr was a key witness in Snipes’ 2008 trial, and Snipes claims that Starr lied when he testified that he told the movie star to file tax returns and ignore the advice he got from an anti-tax outfit. Snipes’ attorneys asked the 11th Circuit Court of Appeals in a motion filed Wednesday to stop considering the pending appeal and instead allow his attorneys to file a new request to either dismiss the conviction or grant Snipes a new trial in light of his adviser’s arrest. The motion contends that prosecutors knew that Starr, who has pleaded not guilty, was under federal investigation for tax violations of his own when he testified against Snipes in January 2008. Defense attorneys said in the filing such an investigation damages Starr’s credibility.

The actor was convicted of three misdemeanor counts of willful failure to file his income tax returns and sentenced in April 2008 in what was considered a key victory for prosecutors who aggressively pursued the maximum penalty to deter others from trying to obstruct the Internal Revenue Service. Prosecutors say he made at least $13.8 million over three years and owed $2.7 million in back taxes that he refused to pay. And Snipes, who is free on bail while he appeals, apologized at the time and said he was an idealistic artist who was “unschooled in the science of law and finance.”

The Criminal Financial Management & Tax Planning of Ken Starr

The Criminal Tax Planning of Ken Starr

Who is Ken Starr? Until the New York money manager grabbed headlines as the alleged center of a $30 million Ponzi scheme, Starr operated in the shadows, despite an A-list client list that included Martin Scorsese, Uma Thurman and Sylvester Stallone. If anything, the flashiest thing about the 66-year-old Starr was his wife, the ex-stripper Dawn Passage and his $7.5 million Manhattan condominium with a 32-foot lap pool that Starr purportedly used his clients’ money to buy. Following a long-running investigation by the Internal Revenue Services’ criminal investigation division, Starr was arrested at his Upper East Side apartment while hiding in a closet. He is currently charged on three counts — wire fraud, fraud by an investment advisor and money laundering — and is being held without bail.

Much like Bernard L. Madoff, who is serving a 150-year sentence for bilking tens of billions of dollars from his closely knit network of clients, Ken Starr cultivated business at charity events and lavish parties, bridging the worlds of New York and Hollywood to build a star-studded client list of socialites, financiers, philanthropists, A-list actors and Hall of Fame athletes. Starr used his access to famous and powerful clients “to burnish an image of trustworthiness, leading his clients to entrust him with management and control of their financial affairs,” sometimes assuming “total control” over their financial lives. Did Snipes give Starr such control?

Why would a powerful Hollywood star allow a financial advisor to control all of their finances, setting up shell companies and making questionable investments? Although Wesley Snipes is a capable actor, there is a certain truth to his claim that he is unschooled when it comes to business. Given Ken Starr’s charm — the persuasive power of a con man — and his high-end connections in celebrity circles, it is not surprising that Snipes gave away so much control.

Unlike Ken Starr, the founders of Creative Artists Management and the Tax Resolution Institute do not mingle at parties and events with Hollywood stars and celebrities. Instead, they focus on doing the business of their jobs and focusing on their work: Secure Financial Management and Reliable Tax Planning. Yes, the goal of Creative Arts Management is to make money for our clients, but without ever placing our client’s future security at risk or in any kind of jeopardy.

In an up and down economy, wealthy clients need to know their financial interests are protected. If Wesley Snipes had ignored the pomp and circumstance of Ken Starr and made the levelheaded choice of Creative Arts Management and the Tax Resolution Institute, the star’s name would be clean. Snipes only would have been in the papers in relation to action in his movies and not criminal tax evasion

Filed Under: Income Tax Problems, Tax Planning, Tax Relief Tagged With: , , , , , , , , ,