1.) Home Based Business Owners, Don't Be Afraid To File
An Amended Tax Return!
2.) The IRS vs Home Based Business Owners
3.) Home Based Businesses Get Huge Refunds and Deductions
Home Based Business Owners, Don't Be Afraid To File An Amended Tax Return!
When a person who has been operating a home-based
business for several years, finally learns about all the
great tax deductions available to HBB owners, they soon
consider their right to file Amended Returns (Form 1040X)
for the past three years to claim the deductions they missed.
That can result in a second refund for those tax returns,
quite often worth thousands dollars.
Filing Amended Returns does not increase your chances
of an audit, and the IRS does not review your entire tax
return a second time if you file an Amended Return. Yet
some people still worry that they may "stand
out" if the file the form 1040X.
Here's proof that you won’t be alone in filing a 1040X --
The IRS has issued a statement informing taxpayers that
they are so swamped with Amended Returns that it is taking
longer than usual 8 to 12 weeks to process them and to get
your additional refund back to you. They ask your patience
and say you should see your refund about 12 to 16 weeks
after you file the form.
Get more tax tips for your Home Based Business.
Does your activity qualify as a Home Based Business?
Auditors use several tests to determine if your "activity"
is really a "hobby" or a "business." Hobbies get a few tax breaks,
but home-business owners get waaaaay more!
If they can reclassify you as a hobby, they get more of your money,
and you’re…well, screwed.
IMPORTANT: One of the tests that is not well understood, has to do
with how much time you spend on the activity.
You need to prove "Material Participation" in your entity.
Here are two ways to do that:
OPTION 1:
If you work your business at least 500 hours per year -- you pass.
OPTION 2:
If you work your business at least 100 hours per year AND no one else
working in your business puts in more time than you do -- you pass.
I hope these tax tips are useful to you and your Home Based Business.
Get more tax tips for your Home Based Business.
Lee Edwards
The eCOMINFOSOURCE
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The IRS vs Home Based Business Owners
As if it weren't difficult enough for home based business owners,
the IRS in it's never-ending thirst for power, and its undying
quest to turn your own tax professionals into IRS "enforcers,"
has through IRS Commissioner Doug Shulman, announced this week that by the end of 2009, he will propose a
"comprehensive set of recommendations to help
the Internal Revenue Service better leverage the
tax return preparer community with the twin goals
of increasing taxpayer compliance and ensuring
uniform and high ethical standards of conduct for
tax preparers."
That small, seemingly innocuous, paragraph has three key
terms (underlined) that bear scrutiny. Let's examine them
and see the dangers that lurk within them for the home based
business owner.
1. "Leverage the Tax Return Preparer community..."
TRANSLATION:
Leverage means 'to apply extreme pressure.' So expect the IRS to
threaten to impose sanctions against any tax preparer who doesn't
do what the IRS wants them to do (see below).
SIGNIFICANCE:
Your tax pro's "preservation instincts" (their fear of losing their right to continue doing tax preparation) will eliminate any hope they will be
aggressive as your "tax advocate."
2. "Increasing Taxpayer Compliance"
TRANSLATION:
This means they want to turn your tax preparer into their tax verifier.
What's the difference?
Tax Preparer: If you tell a tax preparer that your records show
that you put 7,426 business miles on your personal car, they would
calculate the value of your deduction ($4,083.30) and put that number on the correct line of your Schedule C.
Tax Verifier: I predict that they will tell your tax pro that (in the above
above scenario) they must require you to show them your vehicle records to prove that there is documentation to back-up the number they will enter onto your Schedule C.
SIGNIFICANCE:
There has always been a legal requirement to maintain records to prove each tax deduction you claim. But, until now, the only taxpayer who had to physically produce that proof, were those 1-2% who were audited. But if Commissioner Schulman gets his way, every taxpayer who uses a
tax professional to prepare their returns, will have ALL of his/her
tax deduction documentation reviewed prior to a tax return even
being prepared.
Why is that a problem?
Commissioner Schulman appears convinced that most hard-working
Americans lie and cheat on their taxes. He only has enough enforce-
ment officers (field auditors) to check up on less than 2% of them, BUT if he can make the tax pro do the job for them, they'll be able to "catch" way more of those IRS imagined "scoff-laws".
That thinking (and action) will create Two Very Serious Issues:
(A) A LOT of taxpayers, fearing that they may not have perfect
records, will begin do their own taxes instead of using a tax pro -- robbing themselves of the valuable advice of tax professionals.
That, in turn, (a) makes it more likely they will make mistakes and
(b) that they will lose legitimate deductions simply because of lack of knowledge.
(B) This is insulting. Are we not a nation of people who are presumed innocent until proven guilty? We are about to lose yet another of our fundamental freedoms by allowing a government body (IRS) to declare that we are all presumed to be tax cheats, unless we can prove ourselves innocent. Does anybody else think that is just wrong?
4. "Ensuring Uniform and High Ethical Standards of Conduct for Tax Professionals"
TRANSLATION:
Standards of Conduct are a set of rules whose sole purpose is to ensure that "those subject to the Standards (tax preparers), will conduct themselves in accordance with the wishes of those who created the Standards" (the IRS).
SIGNIFICANCE:
The states, not the federal government, establish the requirements, if any, to prepare tax returns. The requirements already are "uniform," within each state. "Ethical Standards of Conduct" already are defined and enforced at the state level.
QUESTION TO PONDER:
Who gives one individual federal government entity -- the IRS -- the right to unilaterally usurp the rights, privileges and obligations of the states?
As a home based business owner you should arm yourself with all the tax information you can get in order to protect your self from being overtaxed, and to learn how to reduce your taxes to the LEGAL minimum.
You can get that information here:
Home Business Tax Savings.com
Lee Edwards
The eCOMINFOSOURCE
The IRS vs Home Based Business Owners
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Home Based Businesses Get Huge Refunds and Deductions
Did you know Congress has told the IRS to give Huge Refunds and Deductions to taxpayers who have a home-based business, OR anyone who operated one at any time in the past 3 years?
It's true! If you currently have a home-based business or had one in any of the past 3 years, following these simple step-by-step instructions. You can easily qualify for these huge tax breaks right away, AND you can easily file an Amended Tax Return (Form 1040X), and possibly get a Refund Check for THOUSANDS of DOLLARS...PLUS interest for any previous years you filed!
In fact, you can actually put an additional $200 to $600 per month, or more, in your pocket starting as soon as next week.
These and other 100% legal tax strategies passed by congress can be found in The Number 1 Best Seller, Now in it's 5th Edition, "Home Business Tax Savings MADE EASY!" by Dr.Ron Mueller (Formerly titled, "It's How Much KEEP That Counts, Not how much you make.")
Even better, make sure you check out the all new Tax Basics package which is GUARANTEED to put immediate cash money in your pocket!
Listen to Dr.Ron MuellerIs there ANY reason that you would want to pay more than your fair share in taxes?!
Me neither. There are, literally, thousands of dollars worth of 100% Legal deductions for home based businesses. Do you know what they are? It’s Ok, most people don’t! That is why home business owners continually pay WAY more than they should in taxes.
Read Dr. Ron Mueller’s book Home Business Tax Savings MADE EASY explaining these deductions and how to qualify for them. It is the ONLY plain English guide to home based business tax savings. Those who have a home based business NEED this information, those who don’t have a home based business, need it EVEN MORE!
I cannot under-emphasize how important it is for EVERY home business owner to have this information. All of us are bombarded every day with people/companies trying to get us to spend our money with them. The difference here is that if you follow Ron’s guidance, YOU WILL SAVE money. No matter how much you spend on Ron's services or products, you will end up saving multiple times the amount that you spent, guaranteed! The more knowledgeable you are about the tax law, the more money you save, that’s it.
Now, go ahead and click this link...
Home Business Tax Savings MADE EASY and get more free information on how you can cut your taxes by UP TO 50%.
Home Based Businesses Get Huge Refunds and Deductions
Lee Edwards
The eCOMINFOSOURCE
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