IRS Summertime Tax Tip 2014-17: Use IRS Online Tools to Get Year-Round Tax Help

IRS Summertime Tax Tip 2014-17: Use IRS Online Tools to Get Year-Round Tax Help

The I.R.S. (Internal Revenue Service) often gets a bad rap, and all we hear are horror stories of how the IRS has targeted Right-Wing groups for audits, and other scary stories. It would be helpful if U.S. Taxpayers realized that the IRS is basically the clearing house/administrative branch of the U.S. Treasury.

Rules are made, and tax law changes come via the Senate and House of Representatives. All of this is policed and monitored by the United States Treasury Department. That is the reason why U.S. Taxpayers must wait for the Congress to complete it's job, in completing tax law changes, before the IRS can open the "gates" for the acceptance of tax returns for the previous tax year. 

2014 taxes will be prepared and filed in 2015 - There are some entities who have different times when their "fiscal year" stops and starts. An example is that the State of Arkansas.gov, has a fiscal tax year starting in July, and ending in June. Many business owners end up filing extensions, changing their tax filing years some.

Again, lately all I have heard about the IRS in the news has been how their investigations have focused on GOP / Tea Party participants. Here are some facts that media does not tell: 

1. 90% of the Tea Party / GOP members who have been "targeted" by the Department of Justice (D.O.J. the police force of Federal Agencies), has been due to their own A). Arrogance and Ignorance, and B). The violators of 501(c)3 non-profits, have been foolish enough to call in the press, and use social media to trumpet their violations, as some sort of victory. 
2. When an organization decides to register themselves as an entity with the IRS, they have choices: Sole Proprietor, Corporation, Non-Profit, Charitable Non-Profit, etc.. As a charitable non-profit, an entity would be given a pass on paying taxes, because they are set up as a CHARITY, who is not POLITICKING. If their organization wants to push a political agenda, as a focus, and deride charity, they are not eligible for a tax break from our society. 

Here is a link to Politicus USA article: "1000 Evangelical Preachers Will Break the Law and Support Republicans from The Pulpit" by Rmuse.

Here is what the IRS has to say about churches and religious organizations: IRS; PDF - Churches & Religious Organizations

A new easier form: 1023-EZ - IRS ASL Videos - YouTube

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I said all of that above, to say this; the IRS is made up of a wide variety of people from all walks of life. There was a time during the 1970 -1980's, when the IRS's authority and over-reach were stopped, and the agency became more "taxpayer friendly."

The Internal Revenue Service, has many avenues for the help and assistance to taxpayers. The Summer Tax Tip announced by the IRS today if full of links to help from the IRS. 

IRS Free File Fillable Forms and Free File is one benefit offered through the IRS website. It is possible for a taxpayer to go directly to companies offering tax software, I think it is more legitimate going through the IRS Website. 

Withholding Calculator: This is important for those who may be over withholding, or worse, under-withholding on their income tax. 

Help Yourself: In Spanish:

There are many other ways to get taxpayer assistance through the IRS. Stay informed. 

IRS Summertime Tax Tip 2014-15: Five Basic Tax Tips about Hobbies

IRS Summertime Tax Tip 2014-15: Five Basic Tax Tips about Hobbies by The IRS.gov Internal Revenue Service (IRS) sent this bulletin at 08/06/2014 07:30 AM EDT

Are you really running a business, or is this just a hobby? There is a long list of things to consider before being sure someone is a business: One of the nine items to think about is, "...

• Whether you depend on income from the activity for your livelihood." 

If a person requires assistance to survive, even though they depend on an activity for income, it is possibly not enough to consider the activity a business. 

There are many other things to consider:

Straight from the Internal Revenue Service (IRS), are some resources and ways to find out if you have a business, or a hobby.  The best resource to start with is PUB 535 (2013) Business Expenses (HTML link), or Pub 535 (PDF link)

If you are a business, and wonder about legit deductions, here is a helpful video from the I.R.S. 

Simplified Home Office Deduction, IRS.gov Videos - YouTube

Some hobbies are very expensive, and taxpayers may be stunned to learn that the 100K they won from the bass tournament is only deductible up to the amount laid out to be eligible to fish in a tournament with grand prizes
. 
With a business, the owner may often deduct many expenses that have been laid out to get the business going. This is in earnest hope and planning that the business will be taking in more than it loses, at least three out of the five prior years. If it does not, the business may be reclassified as a hobby.

ASL: Small Business Health Care Tax Credit (Captions & Audio), IRS - YouTube

When that happens: the financial lay-out may have been substantial, with continuing expenses, but once classified as a hobby, they may deduct expenses only up to and equal to any amounts earned.

This is a link to the U.S. Treasury, the place where tax money is processed. The I.R.S. is just a giant clearing house for the Treasury. It is the Treasury who enforces tax code. Here is a link to a definition by the IRS in agreement with the U.S Treasury "What Constitutes A Business?" 

 Like gambling, if you never win, it is just loss, and not deductible.

For those who are businesses, I hope you find this information useful. Thank you.