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Monday, January 28, 2013

IRS Due Diligence and Compliance

Current requirements for taxpayers this year is going to be easier for the employed and self employed non ethnic filers.  The self employed that have been immersed in a culture rich with deception and the illusion of wrong doing will find it more difficult.  Many have missed filing for years and they actually qualify for the earned income credit.  Not only do they qualify for the earned income credit, but they should also be participants in the first time home buyer program. 

No one need till many of the taxpayers that they have done nothing wrong. The belief of righteousness as a relationship to employment is so conditioned into the fiber of many low income taxpayers that they believe that they are actually income deficient.  In actuality, they are not.  Many can document their income quite well, but in many cases they are persuaded to allow someone else to climb their children fraudulently.  This will come to a screeching halt this year as a result of the due diligence requirements and documentation needed to support and claim a dependent for the child credit.

The economic turnaround will occur once again without engaging the economy of low income African Americans that are actually ripe for participants in the first time home buyer program.  Unless low income self employed filers are taken seriously as taxpayers.  The difficulty herein is the IRS's aggression toward the fabric of the African American culture and what they have done to survive into the transition of the millennium and the recent depression could undermine this much needed movement.  Participate in this recovery by telling your friends and family claim their own kids and follow someone who has guidelines for documenting income and their dependent's residency.

Many of us know some African Americans that have never filed taxes because they don't have a job, but have allowed themselves to be exploited by their friends and family because they are not aware of how to document their income.  The IRS requirements for allowing a refund in case of an audit of these individuals perpetuates this exploitation by requiring many self employed low income taxpayers to have license, website, journals and operational books of receipts and expenses for income documentation.   Many of these taxpayers earn income and should step forward and file. 

This harrasment by the IRS should stop and actually be a gimme to low income taxpayers that meet earned income credit requirements because many of them have cars, homes, clothes, electronics and I am finding that it wasn't obtained illegally.  See from observations I have noticed peddlers selling watches as if they are stolen, but they where actually purchased from the Merchandise Mart and marketed in parking lots as if they are hot to make the purchase seem as if it's a discount. The delusion is a setback to African Americans cultural social economy. 

There are ways to document legitimate income made from babysitting, baking cakes, selling scrap metals, selling goods on eBay or craigslist, referring clients in your circle of influence for a fee and tons of things that people do on a day to day basis.  Transferring this information to forms that conform to due diligence requirements has not guaranteed refunds for many clients that qualify for the earned income credit.  Cultural difference may be taken into account at some point in the future and presentation is everything.  Documentation is  key and that will be taken into account. Meanwhile, as we wait, write your congressman and share the information that you have learned.

Contact my group at 888-753-2521 ofc or 888-675-0583 fax or request documents by emailing me at chet.thecontroller@gmail.com


 

Sunday, January 13, 2013

Health Related Tax Credit

Eligibility for the Refundable Health Related Tax Credit Tightened
Code ˜36B currently provides a premium assistance credit for eligible individuals and families who buy health insurance through an exchange. The credit, which applies to tax years ending after December 31, 2013, is refundable and subsidizes the purchase of certain health insurance plans through an exchange.
The credit is available to individuals who file single or married filing joint with household incomes between 100% and 400% of the federal poverty level and who do not receive health insurance through an employer or a spouse employer.
For purposes of the credit, household income is defined as the sum of: (1) the taxpayer's modified adjusted gross income (MAGI), plus (2) the aggregate MAGI of all other individuals taken into account in determining that taxpayer's family size (but only if those individuals must file a tax return for the tax year). Under existing law, MAGI is defined as adjusted gross income increased by: (1) any amount excluded by Code 911 (exclusion from gross income for citizens or residents living abroad), plus (2) any tax exempt interest received or accrued during the tax year.
The 3% Withholding Repeal and Job Creation Act signed into law by President Obama on November 21, 2011 revises the definition of MAGI to include the amount of the taxpayers Social Security benefits that are otherwise excluded from gross income. As a result, MAGI is now defined as adjusted gross income plus: (1) any amount excluded by Code Sec. 911 (exclusion from gross income for citizens or residents living abroad); (2) any tax exempt interest received or accrued during the tax year; and (3) the
amount of Social Security benefits of the taxpayer that is excluded from gross income under Code 86.  Call 888-753-2521or email chet.thecontroller@gmail.com for more information.