Owing Back Taxes could Affect Passport Renewal

Starting in February 2018, individuals with "seriously delinquent tax debts" will be subject to a new set of provisions courtesy of the Fixing America's Surface Transportation (FAST) Act, signed into law in December 2015.

The FAST Act requires the IRS to notify the State Department of taxpayers the IRS has certified as owing a seriously delinquent tax debt and also requires the State Department to deny their passport application or deny renewal of their passport. In certain instances, the State Department may revoke their passport.

Taxpayers affected by this law are those with a seriously delinquent tax debt, generally, an individual who owes the IRS more than $51,000 in back taxes, penalties and interest for which the IRS has filed a Notice of Federal Tax Lien and the period to challenge it has expired, or the IRS has issued a levy.

Taxpayers can avoid having the IRS notify the State Department of their seriously delinquent tax debt by doing the following:

• Paying the tax debt in full
• Paying the tax debt timely under an approved installment agreement,
• Paying the tax debt timely under an accepted offer in compromise,
• Paying the tax debt timely under the terms of a settlement agreement with the
• Department of Justice,
• Having requested or have a pending collection due process appeal with a levy, or
• Having collection suspended because a taxpayer has made an innocent spouse election or requested innocent spouse relief.

However, a taxpayer's passport won't be at risk under this program if an individual:

• Is in bankruptcy
• Is identified by the IRS as a victim of tax-related identity theft
• Has an account that the IRS has determined is currently not collectible due to hardship
• Is located within a federally declared disaster area
• Has a request pending with the IRS for an installment agreement
• Has a pending offer in compromise with the IRS
• Has an IRS accepted adjustment that will satisfy the debt in full

For taxpayers serving in a combat zone, and who also owe a seriously delinquent tax debt, the IRS postpones notifying the State Department and the individual's passport is not subject to denial during this time.

Taxpayers who are behind on their tax obligations should come forward and pay what they owe or enter into a payment plan with the IRS and may qualify for one of several relief programs, including the following:

• Taxpayers can request a payment agreement with the IRS by filing Form 9465, Installment Agreement Request. Taxpayers can download this form from IRS.gov and mail it along with a tax return, bill or notice. Some taxpayers may be eligible to use the online payment agreement to set up a monthly payment agreement for up to 72 months.
• Financially distressed taxpayers may qualify for an offer in compromise, an agreement between a taxpayer and the IRS that settles the taxpayer's tax liabilities for less than the full amount owed. The IRS looks at the taxpayer's income and assets to determine the taxpayer's ability to pay.

If you owe back taxes and are worried your passport could be revoked because of unpaid taxes, please contact the office.

Why pay for a Grain Valley tax professional

Why pay for a Grain Valley tax professional to do your taxes, after all "it doesn't take a genius"?

Let's set aside the benefits of having the current year taxes prepared by a professional. The biggest reason to hire a tax professional is we tend to look holistically at your tax situation. We don't just look at this year but years past to see trends. We look forward not just to next year but often many years ahead. This allows us to do tax planning to the utmost benefit of our clients. We can advise on proper withholding, credits the clients might get or lose in the future, we talk about tax deferred accounts so clients can benefit tax wise in the near and long term future, etc.

If your tax professional has never looked ahead to upcoming years and discussed these potential issues with you then you should find one that does. It's well worth the time and money spent. Call us at 816-220-2001

Grain Valley Enrolled Agents

Blue Springs Income Tax and Financial Services

At Alliance Financial & Income Tax our Blue Springs Enrolled Agent's provide Income Tax and Financial services to individuals, families and small businesses in the metropolitan area. We provide personalized service for all of your financial needs. We have built our Blue Springs tax and financial services firm's reputation with our years of experience in handling both business and personal taxes in addition to financial services.

If you ever have a questions about the services we provide for your business, feel free to give us a call any time. Our Blue Springs Enrolled Agent team is here to help you fully understand the financial information and products that we provide.

Let our Enrolled Agents Help With IRS Problems

Are you struggling with tax issues in regards to the Internal Revenue Service? We can work with you and assist you in finding solutions for your particular problem. If you have received an audit notification, contact us today. We have the experience and qualifications to help you handle your situation.

Our Enrolled Agents offer guidance and services in many areas including the following:

• Back taxes
• IRS liens or levies
• IRS wage garnishments
• Personal property seizures

Some of the solutions our Enrolled Agents can provide include offers in compromise, payment plans, or bankruptcy advice. For offers in compromise we work with the IRS to reduce the debt. We can get you on a payment plan that you can afford and can help to avoid future penalties and interest.

Get the Help You Need from an Enrolled Agent

Being a successful tax and financial firm in the Kansas City area is more than just working with numbers. It’s providing the personalized financial services that the client deserves. We believe that Alliance Financial & Income Tax can meet your needs. Contact us today to start working on a plan that will work for you, your family, and your business.

We serve the Jackson County area including Blue Springs, Lee's Summit, Independence, Kansas City, Lone Jack, Oak Grove, Sugar Creek, River Bend, Greenwood, Grain Valley and all surrounding areas.

Income Tax Services In Blue Springs Missouri

Tax Professional vs Turbo Tax

Client and wife bring their turbo tax return in because the husband is concerned that their state refund was only $59, he was happy with the Fed. I looked over it and said “The state refund is right but your fed return is off by $2,500.00, you guys missed some credits.” I now have new clients, and my new clients now have more of their money back in their pockets.

Turbo Tax, costing American tax payers billions in lost refunds since 1993.

Grain Valley income tax professionals add value.   Give Alliance Financial & Income Tax a call today before you forfeit our hard earned money.

Need Help with Your Taxes in Blue Springs or Grain Valley?

Your Grain Valley tax preparation needs are as individual as you are.  Alliance Financial & Income Tax takes an active approach to our tax planning and tax preparation services, giving you the personalized guidance you need.  Today's tax laws are so complicated that filing taxes, no matter how simple, can quickly become confusing.

10 million tax payers missed out on a chance to receive a bigger refund last year simply because they neglected to fill out one line on their tax return.  Will you miss a similar opportunity this year?

Today's tax laws are increasingly complicated and the rules for deductions and credits change year by year.  Are you aware of all the deductions and credits that might be available to you this year, even on the most basic of tax returns?  Perhaps you feel secure in your do-it-yourself tax preparation software, but lets face it...There is not substitute for an experienced Enrolled Agent who can answer your questions and ask you the questions that might be key to saving you hundreds or even thousands in tax dollars. 

Tax Preparation in Blue Springs and Surrounding Area

Our Tax Preparation Services Include:

• Assurance that your return has been checked and double-checked for mathematical accuracy and errors that are commonly flagged by the IRS, resulting in fewer chances for contact by the IRS.
• Tips for better managing your payroll withholding so that you can have the advantage of greater income all year long, rather than loaning that money to the government and waiting for it to come back in the form of your yearly tax return.
• A list of common deductions that may benefit you in the coming year, and tips for limiting your future tax liability.
• Electronic filing for a quicker refund.

We  can help you get your paperwork organized with our tax preparation checklist of materials needed for individuals and small businesses.

If  you own a small business and haven't kept up your bookkeeping, don't worry; we can help.  We'll prepare your small business bookkeeping for the year, prepare your business tax return, as well as your personal income tax return.  Then we'll help you set up an easy system that allows you keep your books in great shape for next year.

If you'd like to receive more information about our Blue Springs Tax Preparation Services, please contact us today. If you are ready to schedule a time for us to visit you may schedule a time online that is convenient for you.  

 

Related Links

Income Tax Organizer

Individual Tax Preparation Checklist

Business Tax Preparation Checklist

Car Donations and Your Taxes

 The Blue Springs tax preparation office of Alliance Financial & Income Tax reminds taxpayers that specific rules apply for taking a tax deduction for donating cars to charities. If the claimed value of the donated motor vehicle, boat or plane exceeds $500, you can deduct the smaller of the vehicle's FMV on the date of the contribution or the gross proceeds received from the sale of the vehicle.

People who want to take a deduction for the donation of their vehicle on their tax return should take quite a few steps, but here is the most obvious:

Check that the Organization is Qualified.

Taxpayers must make certain that they contribute their car to an eligible organization; otherwise, their donation will not be tax deductible. Taxpayers can search Exempt Organizations Select Check online tool to check that an organization is qualified. In addition, taxpayers can call IRS Tax Exempt/Government Entities Customer Service at 1-877-829-5500. Be sure to have the organization's correct name and its headquarters location, if possible. Churches, synagogues, temples, mosques and governments are not required to apply for this exemption in order to be qualified.  Please contact us if you're considering a car donation for your tax return!

Bonus Depreciation

  Bonus depreciation allows businesses to offset the costs of investing in equipment and other qualified assets more quickly. Claiming bonus depreciation on your 2017 tax return may be particularly beneficial. 

Why? Deductions save more tax when rates are higher, and most businesses’ tax rates will go down in 2018 under the Tax Cuts and Jobs Act. How much can you save? The break allows additional first-year depreciation of 50% or 100% for 2017, depending on when the asset was acquired and placed in service. 

Contact us for details.

Health Coverage Tax Credits

Do you have questions about health coverage tax credits (HCTCs)? The IRS recently posted common questions and answers (Q&As) on its website to inform interested parties about advance payments of HCTCs for 2018. The HCTC is a refundable income tax credit for eligible individuals to help reduce the cost of certain coverage. The credit is equal to 72.5% of the amount taxpayers pay for “qualified health insurance.” It may be available in advance monthly payments as premiums become due. For details about eligibility and coverage, read more here: http://bit.ly/2EtBnpo

Time for some funny and thought provoking quotes about taxes. If you find these funny, like I did, please share.

Mark Twain
The only difference between a tax man and a taxidermist is that the taxidermist leaves the skin.

Will Rogers
It is a good thing that we do not get as much government as we pay for.

James Madison
I cannot undertake to lay my finger on that article of the Constitution which granted a right to Congress of expending, on objects of benevolence, the money of their constituents...

Will Rogers
Alexander Hamilton started the U.S. Treasury with nothing and that was the closest our country has ever been to being even.

Robert A. Heinlein
There is no worse tyranny than to force a man to pay for what he does not want merely because you think it would be good for him.

Arthur Godfrey
I am proud to be paying taxes in the United States. The only thing is I could be just as proud for half of the money.

H. L. Mencken
Unquestionably, there is progress. The average American now pays out twice as much in taxes as he formerly got in wages.

Albert Einstein
[on filing for tax returns] This is too difficult for a mathematician. It takes a philosopher.

John S. Coleman
The point to remember is that what the government gives it must first take away.

Herman Wouk
Income tax returns are the most imaginative fiction being written today.

Dr. Laurence J. Peter
America is a land of taxation that was founded to avoid taxation.

Milton Friedman
Congress can raise taxes because it can persuade a sizable fraction of the populace that somebody else will pay.

John Maynard Keynes
The avoidance of taxes is the only intellectual pursuit that carries any reward.

Winston Churchill
There is no such thing as a good tax.

Will Rogers
The income tax has made more liars out of the American people than golf has.

Plato
When there is an income tax, the just man will pay more and the unjust less on the same amount of income.

Albert Einstein
The hardest thing in the world to understand is the income tax.

Benjamin Tucker
To force a man to pay for the violation of his own liberty is indeed an addition of insult to injury.

Will Rogers
The difference between death and taxes is death doesn't get worse every time Congress meets.

Ronald Reagan
The taxpayer: that's someone who works for the federal government, but doesn't have to take a civil service examination.

Robert A. Heinlein
Be wary of strong drink. It can make you shoot at tax collectors... and miss.

Winston Churchill
We contend that for a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle.

G. Gordon Liddy
A liberal is someone who feels a great debt to his fellow man, which debt he proposes to pay off with your money.

Barry Goldwater
The income tax created more criminals than any other single act of government.

Calvin Coolidge
Collecting more taxes than is absolutely necessary is legalized robbery.

Dan Bennett
There's nothing wrong with the younger generation that becoming taxpayers won't cure.

Martin A. Sullivan
There may be liberty and justice for all, but there are tax breaks only for some.

Jewish Proverb
Taxes grow without rain.

Thomas Jefferson
The same prudence which in private life would forbid our paying our own money for unexplained projects, forbids it in the dispensation of the public monies.

Robert Dole
The principle involved here is time-honored and true: and that is it's your money.

Robert Dole
The purpose of a tax cut is to leave more money where it belongs: in the hands of the working men and working women who earned it in the first place.

Rob Knauerhase
Isn't it appropriate that the month of the tax begins with April Fool's Day and ends with cries of 'May Day!'?

Roger Jones
I guess I think of lotteries as a tax on the mathematically challenged.

Jean-Baptiste Colbert
The art of taxation consists in so plucking the goose as to obtain the largest amount of feathers with the least amount of hissing.

Benjamin Franklin, Poor Richard's Almanac
It would be a hard government that should tax its people one-tenth part of their income

Simple and Easy Way To Schedule Getting Your Taxes Completed

My name is Mike Mead and I am Dave Ramsey’s tax ELP in the Blue Springs and Grain Valley area. 

                                     

For tax preparation support you might find our tax organizer helpful to ensure we are able to take all the tax deductions and credits you are entitled to.  You may also find this checklist helpful.

A common question is about our fees.  Every situation if unique, but in our office our average fee for tax preparation is between $200-$250.  We have some higher and others lower, but that is our average.

I am here to help, so please do not hesitate to contact me if you have any questions or if I may be of any assistance.

We want to make it as easy as possible for you to get your taxes completed. So once you have gathered all your tax documentation you may:

• Mail your information to us and we will contact you with any questions.
• Stop by the office between 9-5 and drop off.
• E-mail your information to Julie at jnaudet@afitonline.com
• Use our client Secure File Portal
• Schedule a time to meet with me in person by calling the office or our online calendar

Thank you , I look forward to visiting.

Mike Mead, EA, CTC
Alliance Financial & Income Tax
807 NW Vesper Street
Blue Springs, MO. 64015
P - 816-220-2001 x201
F - 816-220-2012
AFITOnline.com

Who is Alliance Financial & Income Tax

Missing Important Tax Forms? Here's What To Do

FORM W-2

You should receive a Form W-2, Wage and Tax Statement, from each of your employers for use in preparing your federal tax return. Employers must furnish this record of 2017 earnings and withheld taxes no later than January 31, 2018 (allow several days for delivery if mailed).

If you do not receive your Form W-2, contact your employer to find out if and when the W-2 was mailed. If it was mailed, it may have been returned to your employer because of an incorrect address. After contacting your employer, allow a reasonable amount of time for your employer to resend or to issue the W-2.

FORM 1099

If you received certain types of income, you may receive a Form 1099 in addition to or instead of a W-2. Payers have until January 31 to mail these to you.

In some cases, you may obtain the information that would be on the Form 1099 from other sources. For example, your bank may put a summary of the interest paid during the year on the December or January statement for your savings or checking account. Or it may make the interest figure available through its customer service line or Web site. Some payers include cumulative figures for the year with their quarterly dividend statements.

You do not have to wait for Form 1099 to arrive provided you have the information (actual not estimated) you need to complete your tax return. You generally do not attach a 1099 series form to your return, except when you receive a Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc., that shows income tax withheld. You should, however, keep all of the 1099 forms you receive for your records.

WHEN TO CONTACT THE IRS

If, by mid-February, you still have not received your W-2 or Form 1099-R, contact the IRS for assistance at 1-800-829-1040. When you call, have the following information handy:

• the employer's name and complete address, including zip code, and the employer's telephone number;
• the employer's identification number (if known);
• your name and address, including zip code, Social Security number, and telephone number.

MISPLACED W-2

If you misplaced your W-2, contact your employer. Your employer can replace the lost form with a "reissued statement." Be aware that your employer is allowed to charge you a fee for providing you with a new W-2.

You still must file your tax return on time even if you do not receive your Form W-2. If you cannot get a W-2 by the tax filing deadline, you may use Form 4852, Substitute for Form W-2, Wage and Tax Statement, but it will delay any refund due while the information is verified.

FILING AN AMENDED RETURN

If you receive a corrected W-2 or 1099 after your return is filed and the information it contains does not match the income or withheld tax that you reported on your return, you must file an amended return on Form 1040X, Amended U.S. Individual Income Tax Return.

HEALTH INSURANCE FORMS 1095-A, 1095-B, OR 1095-C

Most taxpayers will receive one or more forms relating to health care coverage they had during the previous year. If you think you should have received a form but did not get one contact the issuer of the form (the Marketplace, your coverage provider or your employer). If you are expecting to receive a Form 1095-A, you should wait to file your 2017 income tax return until you receive that form. However, it is not necessary to wait for Forms 1095-B or 1095-C in order to file.

Form 1095-A. If you enrolled in 2017 coverage through the Health Insurance Marketplace, you should receive Form 1095-A, Health Insurance Marketplace Statement in early 2018.

Forms 1095-B or 1095-C. If you were enrolled in other health coverage for 2017, you should receive a Form 1095-B, Health Coverage, or Form 1095-C, Employer-Provided Health insurance Offer and Coverage by early March.

If you have questions about your Forms W-2 or 1099 or any other tax-related materials, don't hesitate to contact the office.

Why Friday's Decline in the Stock Market Isn't a Sign of Things to Come

While the news coverage on Friday was dominated by the 666 point decline in the Dow Jones, we do not see this as a sign of an impending bear market.

There are two primary reasons we remain positive about U.S. equities:

Historical precedent. While it may seem like this kind of decline in the stock market is rare, Friday was the 18th time in the last 25 years we've seen a 500+ point decline1. During that span, the Dow Jones Industrial Average has gone from 3301 to 25,000+; an annual return of 13%. Strong U.S. economic fundamentals. The U.S. economic outlook remains positive; in January the U.S. added 200,000 jobs, unemployment is at 4.1% (the lowest since 2000), and wages were up in January by 2.9% compared with a year earlier - the strongest since 2009 when we were coming out of the recession.

If fundamentals are strong, why did we see a sell off? We believe there are three potential reasons:

Handful of company earnings. Alphabet (Google's parent company), Exxon Mobil, and Chevron announced disappointing results.2 Potential Fed rate hikes. Strong wage and jobs growth, while signs of a strong economy, also signal that the Federal Reserve may increase the Fed funds rate to prevent "overheating" which can contain economic growth. Rising U.S. Treasuries. The yield on the 10-year Treasury increased to 2.8% which makes Treasuries more attractive as an investment than they've been in recent years and likely resulted in some investors selling equities to buy bonds.

While today was challenging, we remain positive about the long-term outlook for the stock market given the economy's strong fundamentals.

James Hickey Chief Investment Officer HD Vest

The views and opinions presented in this article are those of James Hickey and not of H.D. Vest Financial Services® or its subsidiaries. Securities offered through H.D. Vest Investment ServicesSM, Member SIPC, Advisory services offered through H.D. Vest Advisory ServicesSM, 6333 N. State Highway 161, Fourth Floor, Irving, TX 75038 972-870-6000. Investments in individual sectors may be more volatile than investments that diversify across many industry sectors and companies. Certain sectors of the market may expose an investor to more risk than others.

1 Kensho study conducted on February 2, 2018. 2 Based on company fourth quarter earnings vs analyst expectations.

TIPS FOR A STRESS-FREE TAX SEASON

Earlier is better when it comes to working on your taxes but many people find preparing their tax return to be stressful and frustrating. Fortunately, it doesn't have to be. Here are six tips from your Grain Valley income tax preparation office of Alliance Financial & Income Tax for a stress-free tax season.

1. Don't Procrastinate. Resist the temptation to put off your taxes until the very last minute. Your haste to meet the filing deadline may cause you to overlook potential sources of tax savings and will likely increase your risk of making an error. Getting a head start will not only keep the process calm but also mean you get your return faster by avoiding the last-minute rush.
2. Gather your records in advance. Make sure you have all the records you need, including W-2s and 1099s. Don't forget to save a copy for your files.
3. Double-check your math and verify all Social Security numbers.These are among the most common errors found on tax returns. Taking care will reduce your chance of hearing from the IRS. Submitting an error-free return will also speed up your refund.
4. E-file for a faster refund. Taxpayers who e-file and choose direct deposit for their refunds, for example, will get their refunds in as few as 10 days. That compares to approximately six weeks for people who file a paper return and get a traditional paper check.
5. Don't Panic if You Can't Pay. If you can't immediately pay the taxes you owe, consider some stress-reducing alternatives. You can apply for an IRS installment agreement, suggesting your own monthly payment amount and due date, and getting a reduced late payment penalty rate. You also have various options for charging your balance on a credit card. There is no IRS fee for credit card payments, but the processing companies charge a convenience fee. Electronic filers with a balance due can file early and authorize the government's financial agent to take the money directly from their checking or savings account on the April due date, with no fee.
6. Request an Extension of Time to File (But Pay on Time). If the clock runs out, you can get an automatic six-month extension bringing the filing date to October 15, 2018. However, the extension itself does not give you more time to pay any taxes due. You will owe interest on any amount not paid by the April deadline, plus a late payment penalty if you have not paid at least 90 percent of your total tax by that date.

If you run into any problems, have any questions, or need to file an extension, just give us a call at 816-220-2001.

There's NO Need To Hire a Tax Professional....

But we recommend hiring the tax professionals in Blue Springs at Alliance Financial & Income Tax