What is SALT? A portion of the Tax Cuts and Jobs Act is known as SALT (state and local tax limits). This new policy limits the deductions that a taxpayer can take for their local sales, income and property taxes. These deductions are usually taken on Schedule A. What is The Fuss? The new rule limits the amount that can be deducted for local taxes to $10,000. $5,000 if you are married filing separately. This new limit is creating quite a stir for taxpayers and states with high taxes like Texas and New York. States have tried to create ways around the new limit. The IRS responded to these efforts by issuing a notice to the States explaining that basically a tax is a tax. The IRS also reminded taxpayers that “Federal Law controls the proper characterization of payments for Federal Income Tax purposes”. The Lawsuit Last month Connecticut, Maryland, New Jersey and New York filed a lawsuit in federal court to pummel the limit on SALT deductions that was created by the new law. They have named basically the entire U.S. Government in their lawsuit and are simply asking for the limit to be canceled. The complaint argues that the since the 16th Amendment was ratified by Congress in 1913 creating the Federal Tax program, it has allowed a deduction for all or at least a significant portion of state and local taxes. The lawsuit argues that the spirit of the 16th Amendment was to prevent the federal tax power from interfering with the States. Under the 10th Amendment States have the authority to decide on taxes and how they are used to invest in their infrastructure, business, etc. The complaint also states that some members of Congress have admitted that the new rule is seeking to force certain States to decrease their public spending and therefore the rule is unconstitutional. This small change in tax law could take power away from the States and allow the Federal Government to interfere in State policies violating the 10th Amendment. Another problem noted in the lawsuit is that it is disproportionate and unfair.  Taxpayers living in New York will only make up about 7% of all taxpayers ut will pay almost 10% of the taxes collected by the Federal Government.  We will continue to follow the story and keep you up to date. ...read more

What is a 1099 Employee? A 1099 Employee is someone who receives a 1099 from their employer instead of a W2. A 1099 Employee is considered a subcontractor instead of an employee. This person is not entitled to the benefits of an employee. Any income earned and reported on form 1099 to the IRS is subject to self-employment tax. 1099 Employee Redefined A recent casein the California Supreme Court has redefined the definition of a 1099 employee. If you are an employer you should make sure that you are classifying your employees properly. This also means that if you are an employee you should make sure that your employer is classifying you correctly. Employee vs. Subcontractor An employer has tax obligations for employees. These tax obligations include paying a portion of their Social Security and Medicare taxes as well as Federal Unemployment Tax. As a 1099 employee (subcontractor) is responsible for the full portion of these taxes. Determining Who is An Employee There are certain conditions that determine whether someone is an employee or a 1099 employee (subcontractor): whether the company controls what the worker does and how the worker does the job how the worker is paid, whether expenses are reimbursed and who supplies the tools or supplies to do the work whether there are written contracts; if the work is limited or continues; and if the work performed is a key aspect of the business. If you are unsure you can submit Form SS-8 to the IRS to request adetermination. If you need assistance filing amended tax returns as a business or individual related to incorrect classification we are here to help. Work directly with Enrolled Agents with more than 29 years in business and the experience that counts. Tax Professionals with an A+ rated service that have never had a single complaint in more than 29 years. A consultation is free. For questionsContact Us. The Foundation of our Success is our Experience! ...read more

Tax resolution involves finding the source or sources of your tax debt and the best option to resolve your tax problems with the IRS or State. The resolution may involve several steps such as filing unfiled tax returns, requesting a penalty abatement or installment agreement. When working with an Enrolled Agent, the Agent uses their training and experience to look for the least expensive solution for the taxpayerhttps://www.irs.gov/tax-professionals/enrolled-agents/enrolled-agent-information. They do this by first pulling the taxpayer’s transcripts for at least the past ten years from the IRS. A taxpayer can request a copy of their tax transcripts directly from the IRS on their own, however, only the current tax year are prior 3 years are availablehttps://www.irs.gov/individuals/get-transcript. An Enrolled Agent usually pulls more years to look for any money left on the table, or ways to reduce the tax debt. Unfiled Tax Returns If you have unfiled tax returns the IRS has filed what is called a Substitute for Return (SFR) in place of the tax return you would have filed. A substitute for return is based only on the information that the IRS has from other sources, such as the copy of your W-2 that your employer has sent them. A Substitute for Return does not include any additional expenses or exemptions that you may be entitled to so the tax debt including penalties and interest is usually more than you would have owed if you would have filed those returns. The IRS usually sends a notice of the amount of tax they have estimated that you owe for the unfiled return and if you fail to respond they issue what is called a “Statutory Notice of Deficiency”, beginning the collection process. In order to resolve your tax problem, all past due tax returns should be filed for two reasons. The first is to determine the actual amount that you owe the IRS. The second is that many of the programs offered by the IRS such as an offer in compromise, currently non-collectible or even a payment plan require that you have all of your unfiled tax returns be filed. Options When an Enrolled Agent reviews your tax transcripts they look for technical grounds to have the tax debt released. There are several ways to dispute the tax on technical terms including filing an amended tax return if the statute of limitations hasn’t expired or filing an offer in compromise. Sometimes an offer in compromise is not your smartest option and your Enrolled Agent will help you determine the least expensive option for your circumstanceshttp://fasttaxhelp.org/the-elusive-offer-in-compromise/. An Enrolled Agent can also help with penalty and interest abatement if you qualifyhttp://fasttaxhelp.org/irs-penalties-and-interest-abatement/. Other options include innocent spouse and currently non-collectible. Occasionally, all of your problems can be fixed by filing an amended tax return if the statute of limitations hasn’t expired. Stop Ignoring Those Letters Those letters from the IRS escalate from the “Statutory Notice of Deficiency” all the way to “Final Notice of Intent to Levy and Notice of Your Right to a Hearing”http://fasttaxhelp.org/letters-from-the-irs/. An Enrolled Agent can assist you with removing liens and levies, as well as wage garnishments. Your Best Choice We understand that you are overwhelmed. We know the feeling of not even wanting to open the mail and sometimes not even wanting to take the walk to the mailbox. We know the feeling of not wanting to answer the phone when you don’t know who is calling. Please call us and let us help you.  You will not be dealing with a fly by night company. Work with a company that has more than 29 years experience (almost 30) helping people just like you settle their tax debt. You can call us or text us at 561-293-3135. You can email us at info@fasttaxhelp.org (if you’re shy) or visit our websitehttp://fasttaxhelp.org/fast-tax-help-form/. Work with a small company where you won’t get lost in the crowd and an Enrolled Agent will personally handle your case. You will not be dealing with a “case manager”. An A+ rated Better Business Bureau Agency without one complaint EVER. Our Enrolled Agents have the experience of working directly with the IRS and State Departments of Revenue. The formula for our success is simple. We promise only realistic options for taxpayers who owe the IRS. We deliver results quickly. We do business simply and honestly. ...read more