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Posts Tagged ‘Tax Laws’

Internal Revenue Service Tax Deductions

Tuesday, January 5th, 2010

The standard deduction provided by the IRS is adjusted each year for inflation. This is not a bad deduction to use if you cannot use any of the information that is provided in the following paragraphs. When you do apply for additional deductions you need to attach the information to Schedule A of Form 1040. This form should not be feared or you should not think that the IRS will be drawn to your tax return to provide additional scrutiny. The bottom line is that the tax laws allow for deductions and if you have the evidence that you incurred these expenses then you should claim these as deductions. It is surprisingly how quickly the deductions can add up over the 12 month period.

Medical expenses can be claimed as a tax deduction if you have spent over 7.5 % of your adjusted gross income. If you have a young family or if you have had a lot of illness these past 12 months, it is more than certain that you have spent more than 7.5% on medical expenses. When you consider that these expenses include doctor’s fees, hospital fees, drug prescriptions and a number of other expenses the bills will really add up over the 12 month period. The interest you pay on your home mortgage is another deduction if this is your first or second home and you use the home as your main residence. If your home has had damage done to it during the year, like a fire, losing the roof during high winds and other similar major damage you can claim anything above 10% of your gross income. This deduction applies as long as the area in which your home is in has not been declared a disaster area by the US Government.

Donations of money or property to a charitable organisation are another tax deduction. When you donate ensure that you get a receipt from the charitable organisation on the value of your donation. State and local taxes may be deductable for taxes that have been applied to you based on the underlying value of your asset. The asset is usually your property or your vehicle. There are also the standard deductibles you should be looking at such as union dues and tax return preparation expenses. The most important action you must do when claiming deductions is to keep all of your receipts. Your receipts are proof of expenditure, and even if the IRS wants to query any deduction you have the proof. This at the end of the day is all the IRS needs.

How To Find The Best Tax Lawyer

Wednesday, May 20th, 2009

There are literally hundreds of sites alleging to have the best tax lawyer available and it may seem that they are all pretty much the same. However, as with all types of lawyers, there are good tax lawyers as well as bad ones and it is important to find the right one for you. Obviously, experience is a key factor in narrowing down your list of potential candidates to a reasonably small number. If the tax lawyer you are considering has no recent experience with court cases then you should avoid using their services. This is because the tax laws are constantly changing and it is vital that your chosen tax lawyer is completely up to date with current legislation.

The track record of any tax lawyer is also important. If you ask any tax lawyer how many cases they have won, and lost, this will give you an idea of how effective they are at pleading your case. However, your individual circumstances should be taken into account and you need to ask the lawyer if they have had specific experience with a similar case and what the outcome was.

The best tax lawyer is one that specialises in more difficult cases and is more likely to be able to help you in whatever situation you find yourself. The methods used by a lawyer in preparing your case should also be a consideration. Usually, a tax lawyer will be extremely thorough in investigating the circumstances surrounding your case and you should look for the most comprehensive service possible. A thorough tax lawyer will look into all of your financial records and gather evidence, of course, but will also look into any other mitigating circumstances to help with your plea.

Of course, any tax lawyer would like to claim that they can have any case against you dismissed but the reality is that this is often unlikely. You should discuss with the lawyers on your shortlist what penalties they anticipate you being given and how they plan to negotiate for lower ones. Obviously, you want to have a tax lawyer who can obtain the most lenient fines possible, even if the case against you is very clear.

Finally and probably most importantly, is the rapport that you feel when you are talking to the individual tax lawyer. It is essential that you are able to discuss everything freely and openly with whichever tax lawyer you finally decide to hire. If you do not feel comfortable talking with a particular lawyer then simply cross them off your list and move on to the next one.

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