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How to Avoid an IRS Audit?

An IRS audit is not something to celebrate. Most people cringe at the very thought of the IRS coming to sort through their tax forms. Most audits end up on the negative side for the taxpayer with a tax debt or back taxes being owed to the IRS. The best way to come out good with an IRS audit is to avoid one in the first place.

Avoiding an IRS Audit:

-Double deductions – it is an easy mistake to make but it will trigger an audit. Deductions taken on a Schedule C form cannot also be taken on the 1040 form.

-High charitable donations – often times anything over 20% of your income will send up a red flag to the IRS. If your charitable donations are higher then be sure that you have receipts to prove all of the donations that you deduct.

-Political contributions – it would be nice if everything could be counted as a deduction but it is not the reality of the IRS. Fees and dues paid to lobbying and political groups and money contributed to political campaigns are not deductions and claiming them as such is sure to bring the IRS knocking at your door.

-Schedule C Losses – if you are trying to deduct your hobby and claim it as a business then you better start showing a profit. Too many years showing a loss will cause the IRS to take a closer look at your situation.

-Income – higher income brackets tend to see the IRS auditor more than the lower income brackets. Keeping your income down may be one of the ways to keep the tax man away.

There is not a foolproof way to avoid an IRS tax audit. Hiring a tax professional to file your taxes is one way to help ensure that if you are audited you do not end up owing back taxes or end up carrying a heavy tax debt because of your returns.

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How much do we charge for tax service?

The accountancy profession is deregulated and hence, there are no set scales of fees for work undertaken by Certified Practising Accountants. The marketplace determines rates, ensuring that fees remain competitive, which is an advantage for potential users of accounting services. You will find that our fees are based on a reasonable fee-for-time basis. In other words, you only pay for the time actually spent completing your work.

RATES

Principal rate per hour is $270us .

QUOTES

It is difficult for us to accurately quote on jobs as we cannot be certain about the time it may take, however, we will inform you when we feel the job is going to exceed our original quote.

BILLING FREQUENCY

It is our policy to bill regularly if we are doing regular work for you. This eases cashflow for both of us.

If we are unable to complete the work required due to a hold up on your behalf, we will bill you for work done to date.

If we are working on a large assignment that will span several months, we will bill you monthly.

CREDIT POLICY

We extend a 14 day period from the date of the invoice within which our clients must settle their fees.

As with any business, collecting our debts is vital to our survival so we do appreciate payment within that time.

We offer MasterCard or Visa facilities.

 

Get a coupon now and save $50 US here: pupilo.tax/get-coupon-now/

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6 Ways the IRS Can Seize Your Tax Refund

Haven’t receive yet your income tax refunds this year? Then here is some reason why is delayed: The government could have seized it. The U.S Treasury Departments Bureau may be holding back your refund or it might be that part of your refund cover some part of a debts you may owe.

6 Debts That Can Make the IRS Seize Your Tax Refund

Here are the 6 major kinds of personal debts that can result in a tax refund offset, along with some advice about what you can do if it ever happens to you.

• Federal Income Taxes – If you owe back income taxes, your refund can be taken to pay them. Whatever is left, if anything, will be refunded to you in the way you requested on your tax return, either by direct deposit or check. You should also get a notice from the IRS explaining why the money was withheld. If you believe that a mistake was made, you will need to take it up with the IRS.

• State Income Taxes – The feds can also withhold money from your tax refund to cover unpaid state income taxes.

• State Unemployment Compensation – If your state believes you collected more in unemployment compensation than you were entitled to, either due to outright fraud or to a failure to properly report your earnings, it can also ask the U.S. Treasury to offset your tax refund.

• Student Loans – If you defaulted on a federally insured student loan, the government can seize your tax refund to help repay it. The Treasury Department is required to send you advance notice as well as to provide an opportunity for you to challenge the claim or pay it off before your refund is withheld. Your state could also withhold money from your state tax refund for this purpose. In addition, the U.S. Department of Education, or the guaranty agency that holds your loan, has the authority to order your employer to withhold up to 15% of your disposable income until the defaulted loan is paid off. You can learn more about dealing with defaulted student debt here.

• Child Support – When parents become delinquent in paying court-ordered child support, their state’s child-support agency can request that the Treasury Department withhold money from their tax refund to cover the back payments. People in this situation should receive a pre-offset notice explaining how much they owe, how the offset process works, and how to contest the debt. Once the money has been withheld from their refund, they should also receive an offset notice from the Bureau of the Fiscal Service showing how much money it withheld and referring them back to the state child-support agency if they have further questions.

• Spousal Support – Similarly, an award for spousal support that’s part of a child-support order can also result in a tax-refund offset if those payments are overdue.

Note that if you filed a joint tax return with your spouse, and your refund was offset because of debts belonging only to your spouse, you can request your portion of the refund back from the IRS. The claim form goes by the somewhat confusing name of Injured Spouse Allocation (IRS Form 8379) and can be found online.
Bear in mind, too, that your tax refund isn’t the only leverage the Treasury can use to collect on back debts such as the ones listed above. Your Social Security or Social Security Disability Insurance (SSDI) benefits can be garnished (that is, partially withheld) in some instances. However, supplemental security income cannot be garnished, even by the government.

The Bottom Line

If you have certain kinds of unpaid debts – such as federal or state taxes, child or spousal support, a student loan that’s in default, or unemployment compensation to which you were not entitled – the U.S. Treasury can hold back all or part of your income tax refund to help pay them off. The practice is known as an offset, and it certainly leads to upset, so try not to let it happen to you

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Charitable Contributions Deduction

One of the itemized deductions accessible for citizens who give donations to charity. The Charitable Contributions Deduction enables citizens to deduct the greater part of their commitments to qualifying beneficent commitments of money and property inside specific limitations. These conclusions must be recorded on Schedule A of the 1040.

BREAKING DOWN ‘Charitable Contributions Deduction’

The Charitable Contributions Deduction permits citizens who make considerable magnanimous blessings to take a sizeable duty conclusion for the year in which their gifts are made. The guidelines for deducting these blessings can be fairly entangled in specific cases. Citizens with inquiries concerning the deductibility of their gifts should download the instructions for Schedule A off of the IRS website.

Did you make donations this year? Contact us in the chat now and let’s get started!

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Discovering IRS Debt Relief

If you are in debt to the IRS and have no way of paying what you owe, then you might be very
interested in learning about IRS debt relief. There is help waiting for you if you are willing to talk
to a professional tax lawyer or consultant. You need to take immediate action if you owe money
for current or back taxes.

The IRS has many ways to get the money from you and you need someone with extensive tax
knowledge to help you work with the IRS to find a resolution to your tax problems. The IRS can
issue federal tax liens and garnishments against you and can also send you intimidating
notices. It even makes ugly phone calls on occasion.

IRS Debt Relief

The IRS wants its money but in today’s difficult economic times, it is sometimes willing to settle
for less from taxpayers who just don’t have the funds to pay their taxes. It evaluates each tax
payer’s individual financial circumstances carefully and tries to find some kind of resolution to
the tax liability. In order to save money in the long run, the IRS offers tax relief programs to
taxpayers with past due federal income tax liabilities. The most common programs offered by
the IRS are Offer in Compromise (OIC), Installment Agreement and Currently Not Collectible
Status.

You can work directly with the IRS or, preferably, with a taxpayer advocate service. A taxpayer
advocate is well trained in all of the components of federal income tax law and will look after
your best interests when dealing with the IRS. The IRS is staffed by people of various levels of
knowledge and they often don’t seem to have the skills necessary to help you with your tax debt
problems. If this is the case, then a taxpayer advocate is someone you ought to see
immediately.

He or she will gather your information, evaluate your options and talk directly to the IRS for you.
The advocate will treat you fairly and competently which might be lacking with some IRS staff
members. IRS debt relief is a way that you can decrease or eliminate your debt to the IRS.
Providing accurate information and obtaining the right advice is necessary in order to assure
that your interests are a top priority.

Let us help you, let’s schedule a meeting to talk about how we can help you worry less.
Call us now: 914-476- 2202
Or email us: info@pupiloagency.com

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#2A Credits

There are two new directives; the first one is for the fast reaction mechanism aimed towards preventing VAT fraud.The second one is for the optional and temporary application of the reverse charge mechanism in relation to supplies of certain goods and services. Quick Reaction mechanism provides the legal basis to the countries that are members of the EU to integrate an emergency measure that are in position to serious case of sudden and massive VAT fraud.

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Tax Deductions

# 1A Deductions

Financial statements may be used by different stakeholders for a multitude of purposes. Owners and managers require financial statements to make important business decisions affecting it’s continued operations. Financial analysis is then performed on these statements, providing management with a more detailed understanding of the figures.

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#2B Credits

Financial statements are prepared according to agreed upon guidelines. In order to understand these guidelines, it helps to understand the objectives of financial reporting. The objectives of financial reporting, as discussed in the Financial Accounting Standards Board (FASB) statement of financial accounting concepts No. 1, are to provide that information.

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#1B Deductions

Value Added Tax (VAT) is a tax on consumption levied in the United Kingdom by the National Government. It was introduced in 1973 and it’s the third largest source of government revenue after Income Tax and National Insurance. It is administered and collected by HM revenue and customs, primarily through the Value Added Tax Act 1994. VAT is levied on most goods and services provided by registered businesses in the UK and some goods and services imported from outside the European Union.

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Accounting 1 On 1

Financial statements are prepared according to agreed upon guidelines. In order to understand these guidelines, it helps to understand the objectives of financial reporting. The objectives of financial reporting, as discussed in the Financial Accounting standards Board (FASB) Statement of Financial Accounting Concepts No. 1, are to provide information that

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