The Meaning of CHRISTmas in today's world !

Exactly what is the meaning of CHRISTmas in today's world? I think in today's world we have forgotten what that truly means. We all know of Jesus Christ birth and how he came to bring peace and salvation to all others'. Though every year it seems that more and more people buy in to the hustle and bustle of buying gifts, forgetting about what the story is truly unfolding.
This year I made a point to not buy as many gifts as I have in the past. While I was contemplating what to buy for my loved ones, I stopped and said "What if there not here next year" ? What would I say to them this year just in case that were to happen? I think this year it was not about coming up with a list of tangible gifts but more about practical gifts and warm affections towards one another. Say for instance, this year I gave my Dad a gift that he could not even read allowed. I believe this touched him so much that he decided to take a moment and read this in a quiet place and absorb the meaning of that letter. Nevertheless, being thankful and truly showing this appreciation ways far greater than something monetary.
I know that we should give some gifts because Christ was given them on his birth. However, if this is going to cause unruly characteristics in someone such as rudeness, impatience, and greed, I would rather by small gifts that come more from the heart than gifts that always compete with others. People lose the meaning of Christmas when they have no time for Christ, the one who gave them life to share in these special moments.
I hope this Christmas, you thought what it would be like to give your gifts to the homeless, or save money for a underprivileged family? I think, if nothing else we should make time for both! May you and yours have a very Merry Christmas and a Happy New Year !

Penalty Abatement? What is it ?

Have you ever ask yourself some of the below common questions? Need IRS Help or a tax consultant ?
1.If I offer to pay the tax, will the IRS just forget the penalties and interest?
2.Can I pay the tax and ask the IRS to waive the penalties?
3.Can we settle on the tax and forget the penalties?
4.DO penalties and interest accrue on the outstanding balances?
5.What can I do to get rid of the penalties?
6.Do I qualify for relief of some of the penalties?
Finally, what are my chances of penalty relief?

If you have asked yourself these questions, you are not alone. The common person does not quite grasp what all entails in "granting"penalty abatement ( removal of accrued penalties from what is owed). Did you know that the amount of penalties abated in 2006 were around $11.1 billion dollars? The most common penalties are the following:

*Failure to Pay
*Failure to File
*Estimated Tax
*Federal Tax Deposits
*Accuracy is low on the list
*Most abatable according to statistics:
- Failure to file
-Failure to deposit (employment taxes)
Penalties are imposed to foster compliance with your returns! This is not a revenue generating instrument.Most are civil penalties imposed to deter non compliant behavior.Bare in mind that penalties are in addition to interest due.

Stay tuned for more information on the details of abating interest and penalties !

Bankruptcy and Taxes

Needing IRS Help?Most people are under the assumption that because you have filed Chapter 11 or 13 for Bankruptcy, means that your tax liability will dissipate. Filing Chapter 7 means having total liquidation of your assett's. Under the new compliance rules of the Internal Revenue Service, it is virtually impossible to file a Chapter 7.For example, in the state of NC, your total income (Household of 4) cannot be exceed $54,459.00. Total income for a Household of 2 would be $29,000.
When the IRS files a lien prior to bankruptcy, the lien survives any bankruptcy and attaches to the clients property.The IRS is voided from filing liens during bankruptcy proceedings. However, the IRS will file a lien when:1.there is a valid tax assessment is made
2.client is given notice and demand for payment

How long does a lien stay in effect ? As long as the (CSED) Collection Statute Expiration Date- takes 10 years to expire from the date of the assessed tax.Although the CSED has expired, an auditor can go to the Federal Tax Court and appeal for a judgement (sheriff) and receive an additional 10 year extension.
A tax consultant can help you with questions or concerns about filing bankruptcy and the chances of!

Tax Compliance

What does being tax compliant mean?
- Filing all required tax returns (Business or Individual) for the years 2001-2006
-Paying your taxes (Business-income,payroll,excise) (Individual-income,payroll,excise)
-Being current on your tax payments (Business -estimated and federal tax deposits) (Individual -estimated taxes)

What does "Due Process"mean? Following legal procedures set forth in the IRS for assessing additional tax liability. Notice (i.e. CP 2000 or an Audit Report) (Form 4549).
*30 Day letter (for to exercise internal appeal rights)
*90 Day letter (for Taxpayer to exercise appeal to the US Tax Court)- Certified Mail!!!!

A Tax Consultant can help you better understand the nuances of the collection process.

Tax Lien's

Are you needing IRS Help?Have you ever wanted to know what a lien is? Below are some details that the common taxpayer would not know:
* A lien is filed by the IRS if you owe tax and is the most preferred lienholder other than a debt lienholder.
* A lien is not released until tax is paid in full or an offer in compromise is accepted or tax abated.
* Liens are filed at the taxpayers area courthouse or where they own the property.
* A lien expires generally 10 years from the assessment date. This is called a CSED-Collection Statute Expiration Date.
It can be extended for the following reasons: Bankruptcy,Out of the country, Offer In Compromise

Most people don't know that after the CSED expires, the IRS can't collect and the lien is self-released. Any TP (taxpayer) owing more than $5,000 dollars will have a lien placed upon their property;this acts as an encumbrance on all property and the property rights (owned and acquired after the date of assessment).
Congress has authorized a statutory lien to the taxpayer's property. The lien not only attaches to the taxpayer's property but also all rights to the property (real,personal and intangible). For example,if a Taxpayer owes the IRS (where a lien has been applied) and sells their home, the person buying the home acquires this seizure until the mortgage officer and the government are paid in full. Bare in mind that the lien is essentially attached to the person.