Martin Cantu, EA - Tax Consultant - Tax Relief Services Blog

Nearly 160 million workers will benefit from the extension of the reduced payroll tax rate that has been in effect for 2011. The Temporary Payroll Tax Cut Continuation Act of 2011 temporarily extends the two percentage point payroll tax cut for employees, continuing the reduction of their Social Security tax withholding rate from 6.2 percent to 4.2 percent of wages paid through Feb. 29, 2012. This reduced Social Security withholding will have no effect on employees’ future Social Security benefits. Employers should implement the new payroll tax rate as soon as possible in 2012 but not later than Jan. 31, 2012. For any Social Security tax over-withheld during January, employers should make an offsetting adjustment in workers’ pay as soon as possible but not later than March 31, 2012. The law also includes a new “recapture” provision, which applies only to those employees who receive more than $18,350 in wages during the two-month period (the Social Security wage base for 201...

Six Year-End Tips to Reduce 2011 Taxes Here are six tax-saving tips for you to consider before the calendar turns to 2012: 1. Make Charitable Contributions – If you itemize deductions, your donations must be made to qualified charities no later than Dec. 31 to be deductible for 2011. You must have a canceled check, a bank statement, credit card statement or a written statement from the charity, showing the name of the charity and the date and amount of the contribution for all cash donations. Donations charged to a credit card by Dec. 31 are deductible for 2011, even if the bill isn't paid until 2012. If you donate clothing or household items, they must be in good used condition or better to be deductible. 2. Install Energy-Efficient Home Improvements – You still have time this year to make energy-saving and green-energy home improvements and qualify for either of two home energy credits. Installing energy efficient improvements such as insulation, new win...

The IRS announced a new “Fresh Start” program, designed to allow taxpayers to regroup financially, getting a new start on their finances. This program provides taxpayers an opportunity to limit the damage IRS tax collection activity may have had on their credit report and credit score, thus impairing their ability to obtain new credit, or credit at a fair market rate. Among the highlights of the program are the following: Tax Liens The IRS increased the dollar threshold for filing notice of tax lien. The new threshold amount is $10,000, up from $5,000. There is an exception in the case of a taxpayer bankruptcy or other similar action. Keep in mind that a Federal Tax lien is an IRS demand for payment from the taxpayer, within 10 days of the letter delivering a copy of the lien. This is a statutory process which the IRS must follow. A Notice of Federal Tax lien is a formal filing in the public records of the county of residence of the taxpayer and allows IRS to establish ...

Individuals and businesses making contributions to charity should keep in mind several important tax law provisions that have taken effect in recent years. Some of these changes include the following: Special Charitable Contributions for Certain IRA Owners This provision, currently scheduled to expire at the end of 2011, offers older owners of individual retirement accounts (IRAs) a different way to give to charity. An IRA owner, age 70½ or over, can directly transfer tax-free up to $100,000 per year to an eligible charity. This option, created in 2006, is available for distributions from IRAs, regardless of whether the owners itemize their deductions. Distributions from employer-sponsored retirement plans, including SIMPLE IRAs and simplified employee pension (SEP) plans, are not eligible. To qualify, the funds must be contributed directly by the IRA trustee to the eligible charity. Amounts so transferred are not taxable and no deduction is available for the transfer. Not all char...

Tim Tebow is the most discussed, hated, vilified player in the history of the National Football League. Listen to talk radio or ESPN - a day does not go by without a discussion of Tebow. The discussion always centers on what he can't do. He can't pass. He doesn't throw like an NFL QB. He can't succeed. All this before they get into his faith, the main source of criticism in college. Collin Cowherd, ESPN talk show host on radio and TV has made a career based on criticism of Tebow. As I write this I'm waiting for Cowherd's show on the day following Denver's victory over the New York Jets. My guess is that the over under on the number of seconds before Cowherd mentions Tebow is 10. Cowherd, like most other hosts, follows the same formula - 1. I like the guy and don't want to bang on him; 2. He isn't that good so I don't want to waste time disparaging his abilities; 3. Spend the next 2 hours banging on everything Tebow. Cowherd and the other critic...

I just posted a new article on IRS non-filers explaining that the situation is manageable and not as dire as you expect. Learn how to deal with the situation by reading this article by San Antonio tax attorney Martin Cantu.

Look for an upcoming article on innocent spouse defense in the 5th circuit.

Look for an upcoming article on innocent spouse defense in the 5th circuit.

Anyone who pays sales tax, or who has a sales tax number, needs to pay attention to this trend. Think you don't owe anything? The Comptroller's BART team says otherwise.

Here's some things for you property owners to consider. http://ezinearticles.com/?Investment-Property-Owners---End-of-Year-Review-Is-Worthwhile&id=5500686