by | May 2, 2011 | Archives

Stop by the new Art Gallery at Patriot Place and check out some great works by two talented NFS clients – Polo Barrera & Ann Gorbett!!
http://ping.fm/K7CBb

Eight Things to Know If You Receive an IRS Notice

Eight Things to Know If You Receive an IRS Notice

by | Apr 27, 2011 | Archives

Each year, the Internal Revenue Service sends millions of letters and notices to taxpayers for a variety of reasons. Here are eight things to know about IRS notices – just in case one shows up in your mailbox.

  1. Don’t panic. Many of these letters can be dealt with simply and painlessly.
  2. There are a number of reasons why the IRS might send you a notice. Notices may request payment of taxes, notify you of changes to your account, or request additional information. The notice you receive normally covers a very specific issue about your account or tax return.
  3. Each letter and notice offers specific instructions on what you are asked to do to satisfy the inquiry.
  4. If you receive a correction notice, you should review the correspondence and compare it with the information on your return.
  5. If you agree with the correction to your account, then usually no reply is necessary unless a payment is due or the notice directs otherwise.
  6. If you do not agree with the correction the IRS made, it is important that you respond as requested. You should send a written explanation of why you disagree and include any documents and information you want the IRS to consider, along with the bottom tear-off portion of the notice. Mail the information to the IRS address shown in the upper left-hand corner of the notice. Allow at least 30 days for a response.
  7. Most correspondence can be handled without calling or visiting an IRS office. However, if you have questions, call the telephone number in the upper right-hand corner of the notice. Have a copy of your tax return and the correspondence available when you call to help us respond to your inquiry.
  8. It’s important that you keep copies of any correspondence with your records.

For more information about IRS notices and bills, see Publication 594, The IRS Collection Process. If you need help in responding to one of these letters, please contact me for additional assistance.

Where Do Your 2010 Taxes Go?

Where Do Your 2010 Taxes Go?

by | Apr 26, 2011 | Archives

The White House has released a simple calculator showing where your federal tax dollars for 2010 were spent. It’s called Your 2010 Federal Taxpayer Receipt.

Using the calculator is pretty simple. Simply type in your Social Security taxes, Medicare taxes and federal income taxes paid in 2010, and the calculator will return results showing where your tax dollars were spent. Social Security taxes, naturally, go to pay for Social Security benefits. Similarly, Medicare taxes pay for Medicare benefits. The calculator then breaks down your federal income tax dollars by various federal programs for defense, health care, international aid, and science and technology programs. You can click the “Expand All Sub-Categories” link to reveal further details.

Very interesting, the top five federal expenses by percentage are:

  • Defense at 26.3%
  • Health care at 24.3%
  • Job and Family Security at 21.9%
  • Net interest payments at 7.4%, and
  • Education and Job Training at 4.8%.