Colorado’s Uniform Debt Management Services Act

According to Colorado’s Uniform Debt Management Services Act (UDMSA) any person acting on behalf of a consumer in an effort to negotiate a debt must register with the Attorney General (AG).  Subsequently I learned ANYONE NEGOTIATING TAX DEBT RELIEF could be subject to enforcement by the state of Colorado Attorney General for failure to comply…

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Researching Tax Treaties – IRS Publications 54 and 901

IRS Publication 901 U.S. Tax Treaties is to be used as a quick reference guide that will tell you whether a tax treaty between the United States and a particular country offers a reduced rate of, or possibly a complete exemption from, U.S. income tax for residents of particular countries. It is not a complete guide to all provisions of…

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What is a Qualifying Child for the Child Tax Credit – IRS Publication 972

A qualifying child for the child tax credit is someone who meets the qualifying criteria of seven tests: age, relationship, support, dependent, joint return, citizenship and residence. 1. Age test To qualify, a child must have been under age 17 – age 16 or younger – at the end of 2011. 2. Relationship test To claim a…

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Sales & Other Dispositions of Capital Assets – IRS Form 8949

IRS Form 8949, Sales and Other Dispositions of Capital Assets must be used to report most capital gains and losses. Any properties you own for investment purposes and most properties you own for personal purposes (ie your house) are for the most part considered capital assets. Use Form 8949 to report the sale or exchange of…

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IRS Tax Filing Extension Form 4868 & Tax Paying Extension Form 1127A

Tax day is upon us – remember to at least get you application for automatic extension post marked today using IRS Form 4868 Or if your Adjusted Gross Income is under $57,000 you can file an automatic extension request online using Free File If you or your spouse (when filing a joint return) are experiencing hardship you…

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Basis for IRS Certificate of Lien Discharge

Having the IRS put a tax lien on you absolutely sucks in many regards. It not only impacts your credit score, it carries a stigma that permeates into the workforce. Having an IRS Tax Lien discharged can be like transcending the seven depths of Dante’s hell. These things can have a dramatically negative impact on people…

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Tax Advantages of Employing Your Children

Payments for the services of a child under the age of twenty-one who works for his or her parent whether or not in a trade or business, are not subject to federal unemployment taxes (FUTA). These exceptions are not the case with a corporation (C or S), even if the corporation is completely controlled by the child’s parents. Significant tax shelter is…

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Paying Estimated Taxes IRS Form 1040-ES

As a general rule, you must pay estimated taxes if both of these statements apply: 1) You expect to owe at least $1,000 in tax after subtracting your tax withholding (if you have any) and tax credits, and 2) You expect your withholding and credits to be less than the smaller of 90 percent of…

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Statutory Employee

I’ve found myself needing to specifically clarify what the definition of statutory employee means for IRS employment tax purposes. Statutory employees include: 1. full-time life insurance agents, 2. certain agent or commission drivers, 3. traveling salespersons, and 4. certain homeworkers. Statutory employees do not owe self employment tax on these earnings, as Social Security and Medicare taxes…

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