New Strategies Individual Taxpayers Need to Know – 2010 Tax Relief Act
Let's face it, this economic crisis is really taking it's toll on peoples wallets. So much so, that as of my writing, there are huge numbers of people who owe back taxes. What makes things worse is that the IRS doesn't seem to have any sympathy at all for people who owe. Have no fear, I am about to reveal 3 killer tips that can help you settle your tax debt.
There are a few solid companies that can help solve your IRS problem and more importantly give you good solid Biblical advice on not only how to remedy your problem but stay away from those them in the future. A lot of companies advertise on Christian sites but they really are everything but Christian tax firms.
The best bit of advice to give any person or company when behind on State or Federal Taxes is to stay current.
The IRS will usually work with any entity if they are making a serious effort to fix the past problem and are current on estimates or deposits. Before contact is made with the IRS, we recommend a current tax payment be made to show good faith.
Your chances of success will be greatly improved by using a specialist, so if you are considering pursuing this on your own, I should tell you it's not a good idea. By now you are probably wondering where is the best place to find a specialist, which of course leads me to the final tip...
This way, when they review your case, they know that this is a taxpayer/business who is current and in full filing compliance.
ESTATE & GIFTING OPPORTUNITIES The highly anticipated estate tax change was finally determined as part of the 2010 Tax Relief Bill. Most taxpayers will be happy to know that the estate tax exemption was increased from $1 million per person all the way up to $5 million per person and the top tax rate will remain at the lower 35%. This is a significant change especially for high net worth families because now the dollar amount that is exempt from estate taxes is $10 million for married couples. For the first time, the estate, gift and generation-skipping taxes will be "unified" so that one $5 million exemption per individual applies to all three. This will make it much easier for wealthy taxpayers to make gifts during life to children & grandchildren. If you are a taxpayer who is in a high paying tax bracket, now is a really great time to plan for ways to shift some of your income to other family members who may be in lower tax brackets. There are countless ways that you can use Family Limited Partnerships to shift income to lower taxed family members without losing control of those assets. With the current depressed market values and the new $5 million exemption, now is the time to get your tax and estate planning in place!
As you can see, for the individual tax payers, the 2010 Tax relief resulted in a win-win for low, middle, and high income taxpayers. With all the new tax breaks, it is imperative that we as taxpayers do our part to ensure we are taking full advantage of these benefits. As part of your Goal Planning for 2011, make tax savings part of that plan! Join us next week as we focus on Part 2 of our 3 Part Series: 2010 Tax Relief Act: New Strategies Business Owners Need to Know.
Harris Smith is a writer on personal finance education. Her article tackles the pros and cons of home equity line of credit . Clear Debt Now offers links to Debt Consolidation and consolidation programs in your area.
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