Sunday, January 31, 2010

Online Client Portals 24/7 access to your financial records

With Our NetClient CS, you can increase both the productivity of your business services:
Document Presentation

Our clients are provided with 24/7 access to electronic copies of your financial documents—tax returns, financial reports—or any other files that you make available to you via your private NetClient CS portal.

Our clients can use an online version of our client accounting software, Client Bookkeeping Solution , including check writing, payroll, accounts payable, and/or accounts receivable.

Remote Payroll Data Entry

Enjoy the time saving benefits of a paperless payroll process. Allow for fast and efficient payroll data exchange with your employees and seamless data flow directly into your Payroll CS software. Combined with Remote Check Printing , you have the convenience and speed of printing your own payroll checks.
UltraTax/1040 Portals

Our clients have their own private and secure portals to access, complete, and submit your web-based Client Organizer and receive an electronic copy of completed tax returns.
UltraTax CS Web Organizer

Our clients have a convenient way to organize tax information and upload it directly to our firm First Tax Solution via our firms website. By doing this our clients will not longer have to actually come into our office. Everything can be done via our firms web site. And using Skype
Web Employee

Provide your employees with read-only access to electronic copies of their payroll information, including paycheck stubs, W-2s, and earnings history. Employees can access information from our firms website First Tax Solution using private and secure portal technology.
File Exchange

Remote Payment Authorization

Our firm First Tax Solution can simply transfer control of your check writing and accounts payable tasks to if you our client prefers we can make the payments on your behalf.
Account Aggregation

Our online clients portals enable you our client to retrieve financial information from a variety of sources and view it in a single location, making it easier to analyze your total financial holdings.

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Debt Reduction: It does work!!

Debt Reduction: It does work!!

We have helped thousands of people just like you, get out of debt. Our debt reduction system does one thing and does it very well.

Do You Want to Get Rid of the Fear and Stress?

Do You Want to Stop The collections calls?

We focus on helping you build a step by step, get out of debt payment plan that is custom tailored to your specific financial situation.

Would You Like To Save Money?

By following your personalized get out of debt payment plan, you will save thousands of dollars in interest penalties you would have otherwise paid to creditors.

Would You Like A Renewed Sense Of Hope?
How About Feeling Excited Again?

Because you can see the actual date you will be debt free, there is a tremendous feeling of hope. Hope turns into belief because there really is an end to your debt burden. You know you will get out of debt soon. Now that's exciting.

* You have a plan.
* You can see it.
* You will make it happen.

Would You Like Financial Peace Of Mind?

You will experience financial peace of mind and a sense of accomplishment as you watch your debts shrink and your accounts get paid off.

Budgeting for the rest of your life?

We offer you more than just a quick fix: We offer you a new life, by helping you learn new life skills

We work hand in hand with you for a period of 9 to 12 months: We meet with you monthly to continue to support you through this learning process. We are the only company that does this. We at First Tax Solution LLC really want you to succeed and to become completely debt free and financially independent.

How would it make you feel once it is time to purchase your childs first car and you the parent could actually pay cash for the car ?

How would you feel?

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Thursday, January 28, 2010

How Does The Irs Choose Which Returns to Audit

The Examination (Audit) Process website

FS-2006-10, January 2006

The IRS selects returns using a variety of methods, including:

Potential participants in abusive tax avoidance transactions — Some returns are selected based on information obtained by the IRS through efforts to identify promoters and participants of abusive tax avoidance transactions. Examples include information received from “John Doe” summonses issued to credit card companies and businesses and participant lists from promoters ordered by the courts to be turned over to the IRS.

Computer Scoring — Some returns are selected for examination on the basis of computer scoring. Computer programs give each return numeric “scores”. The Discriminant Function System (DIF) score rates the potential for change, based on past IRS experience with similar returns. The Unreported Income DIF (UIDIF) score rates the return for the potential of unreported income. IRS personnel screen the highest-scoring returns, selecting some for audit and identifying the items on these returns that are most likely to need review.

Large Corporations — The IRS examines many large corporate returns annually.

Information Matching — Some returns are examined because payer reports, such as Forms W-2 from employers or Form 1099 interest statements from banks, do not match the income reported on the tax return.

Related Examinations — Returns may be selected for audit when they involve issues or transactions with other taxpayers, such as business partners or investors, whose returns were selected for examination.

Other — Area offices may identify returns for examination in connection with local compliance projects. These projects require higher level management approval and deal with areas such as local compliance initiatives, return preparers or specific market segments.

Just Remember an IRS Audit does not have to be stressful or painful.
1. Take the time necessary to gather and organize your information.
2. Make sure you have a income documents. (w2's, 1099's, if you own a business sales receipts, even cash income if you receive tips and did not report them to your employer your employer may have reported an estimated amount that you should have earned based on others that do the same job or the IRS will impose an amount based on other tipped employees. Always be honest.
3. Make sure you have all you documents and receipts for all expenses and deductions.
4. Keep all records for a minimum of 3 years, some for 7 years and others like your tax returns forever.
5. Should you be audited: First Don't Panic if you have followed the simple steps above your audit will be painless.
6. Should you be audited: If you did not follow the above steps, again don't panic.
Provide actually what the IRS Audit letter asks for. If reading the letter and you need help give us a call and we will help you.

But you will need to gather the documentation that the IRS requires. Like income (w2's, 1099's sales receipts) deductions:( expenses, like actual receipts for even stamps, canceled checks, mortgage interest etc.)
If you do not have this documentation: You must get it or deductions will be disallowed. If you don't know how to locate the documentation give us a call and we will help you.

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Wednesday, January 27, 2010


Please log in to my website and vote on my 2 polls.

One is about selecting my and the other is about services the company offers to our clients

thank you

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Homebuyer Credit Extended and Expanded

The First-time Homebuyer Tax Credit (Credit) allows new homeowners the opportunity to receive a tax credit of up to $8,000 to help them purchase a home. The Credit was originally set to expire on December 1, 2009, but was recently extended and expanded.

The Worker, Homeownership, and Business Assistance Act of 2009 (Act) extends and liberalizes the Credit by making it available to (a) higher income taxpayers and (b) existing homeowners who are qualifying long-time residents and purchase another principal residence. However, for the first time there will be a dollar cap on residences qualifying for the credit.

The Credit is now available on a principal residence purchased before May 1, 2010. The Credit also applies to the purchase of a principal residence that is closed before July 1, 2010, where the contract to purchase was binding before May 1, 2010. In addition, the homebuyer may elect to treat a qualifying home purchase after 2008 as made on December 31 of the calendar year preceding the purchase. Making this election allows homebuyers to claim the Credit on their prior year's tax return and may allow them to receive their money sooner.

The Act allows more taxpayers to qualify for the Credit by increasing the modified adjusted gross income (MAGI) limitations. For home purchases after November 6, 2009, eligibility for the Credit now phases out for individual taxpayers with a MAGI between $125,000 and $145,000 for the year of purchase. For joint filers, the phase-out range is $225,000 to $245,000. Prior to the Act, the phase-out ranges were between $75,000 and $95,000 ($150,000 and $170,000 for joint filers).

The Credit is now available to long-time residents for home purchases after November 6, 2009. An individual, and spouse if married, who has maintained the same principal residence for any five consecutive years during the eight-year period ending on the date of purchase of a subsequent principal residence is eligible for a reduced Credit. The maximum credit available for these taxpayers is $6,500 ($3,250 for a married individual filing separately).

Example: Homebuyer Credit Available to Long-time Residents. Joe and Cass purchased their home on Magnolia Street 15 years ago, and it has been their principal residence since. In 2010, they decide to downsize and close on a smaller $240,000 home on February 12. Their 2010 MAGI is estimated to be less than $150,000. At the time of purchase, Joe and Cass will be eligible for a Homebuyer Credit of $6,500, the maximum credit available to taxpayers who meet the definition of long-time resident.

The Act sets a maximum purchase price of $800,000 with no phase-out on homes qualifying for the Credit. Prior to the Act, there was no such limitation.

Please contact us if you have questions about how you might qualify for or benefit from this Credit.

check out my web site vote for my new logo

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Friday, January 8, 2010


USA Today's Olson criticized the IRS' 2010 goal of answering 71% of calls from taxpayers who have questions about their returns. In other words, Olson said, "The IRS is planning to be unable to answer about three of every 10 calls it receives." The IRS also has estimated that callers who get through will have to wait an average of 12 minutes.
So the IRS plans to answer approximately 7 out of every 10 calls, which they can not be responsible for their verbal advice.

So what happens to the 3 that don't get answered or the 7 that does get answered. Are the answers right?

What would you think would happen to you the tax payer and me the tax preparer if
under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are 71% true, correct, and complete. Declaration of preparer (other than taxpayer) is based on 71% of all information of which preparer has any knowledge.

Well let me put to you like this your life as you know it will change and not for the better.

So in saying this make sure you use a reputable company that the individuals preparing your return knows what the heck they are doing. MBA in accounting, CPA's EA (Enrolled Agents).

MBA has 6 years of college, a CPA's has a minimum of 4 years of college and has passed a state exam. Enrolled Agent is specifically educated in tax only and has studied, prepared and passed a state exam.

Using one of these individuals will probably cost more when doing your taxes but more than likely will save you money in the long run.

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Am I Having Enough Withheld?

If you fail to estimate your federal income tax withholding properly, it may cost you in a variety of ways. If you receive an income tax refund, it essentially means that you provided the IRS with an interest-free loan during the year. By comparison, if you owe taxes when you file your return, you may have to scramble for cash at tax time--and possibly owe interest and penalties to the IRS as well.

When determining the correct withholding amount for your salary or wages, your objective should be to have just enough taxes withheld to prevent you from incurring penalties when your tax return is due. (You may owe some money at the time you file your return, but it shouldn't be much.) You can accomplish this by reading and understanding IRS Publication 505 and 919, properly completing Form W-4 (and accompanying worksheets), and providing an updated Form W-4 to your employer when your circumstances change significantly.
Form W-4 helps you determine the proper withholding amount

Two factors determine the amount of income tax that your employer withholds from your regular pay: the amount you earn and the information you provide on Form W-4. This form asks you for three pieces of information:

* The number of withholding allowances you want to claim: You can claim up to the maximum number you're entitled to, claim less than you're entitled to, or claim zero.
* Whether you want taxes to be withheld at the single or married rate: The married status, which is associated with a lower withholding rate, should generally be selected only by those taxpayers who are married and file a joint return. Other people (including those who are married and file separately) should generally have taxes withheld at the higher, single rate.
* The additional amount (if any) you want withheld from your paycheck: This is optional; you can specify any additional amount of money you want withheld.

When both spouses work and have taxes withheld at the married rate, they sometimes end up with insufficient taxes withheld. If this happens to you, remember that you can always choose to withhold at the single rate. In addition, you can determine the proper withholding amount by completing Form W-4's two-earner/two-job worksheet.
Complete the worksheets to claim the correct number of allowances

To understand Form W-4, you must understand allowances. Think of allowances as cash in your pocket at the time that you receive your paycheck. The more allowances you claim, the less taxes are taken from your paycheck (and the more cash ends up in your pocket on payday). For example, you can maximize the amount withheld from your paycheck to ensure that you have enough tax withheld to cover your tax liability by claiming zero allowances. This will reduce the amount of cash you take home in your paycheck. The following factors determine your number of allowances:

* The number of personal and dependency exemptions that you claim on your federal income tax return
* The number of jobs that you work
* The deductions, adjustments to income, and credits that you expect to take during the year
* Your filing status
* Whether your spouse works

To claim the correct number of allowances, you should complete Form W-4's worksheets. These include a personal allowances worksheet, a deductions and adjustments worksheet, and a two-earner/two-job worksheet. IRS Publication 505 (Tax Withholding and Estimated Tax) explains these worksheets.
Check your withholding

To avoid surprises at tax time, it's a good idea to periodically check your withholding. If you accurately complete all Form W-4 worksheets and don't have significant nonwage income (e.g., interest and dividends), it's likely that your employer will withhold an amount close to the tax you'll owe on your return. But in the following cases, accurate completion of the Form W-4 worksheets alone won't guarantee that you'll have the correct amount of tax withheld:

* When you're married and both spouses work, or if either of you start or stop working
* When you or your spouse are working more than one job
* When you have significant nonwage income, such as interest, dividends, alimony, unemployment compensation, or self-employment income, or the amount of your nonwage income changes
* When you'll owe other taxes on your return, such as self-employment tax or household employment tax
* When you have a lifestyle change (e.g., marriage, divorce, birth or adoption of a child, new home, retirement) that affects the tax deductions or credits you may claim
* When there are tax law changes that affect the amount of tax you'll owe

In these cases, IRS Publication 919 (How Do I Adjust My Tax Withholding?) can help you compare the total tax that you'll withhold for the year with the tax that you expect to owe on your return. It can also help you determine any additional amount you may need to withhold from each paycheck to avoid owing taxes when you file your return. Alternatively, it may help you identify if you're having too much tax withheld. If you find that you need to make changes to your withholding, you can do so at any time simply by submitting a new Form W-4 to your employer.

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