IRS Authorized ERO

We are an IRS Authorized ERO

 

 

 

At Tax11 Income Tax Solution, our Tax Specialist understands your concerns and is equipped with the training and expertise to address your Tax needs.

 

 

 

 

 

Preparing your own income taxes adequately can be a complicated and confusing process for most Taxpayers. That is why it requires the training and experience of a Tax Professional to minimize your tax liability and fully maximize your refund amounts.

Current Events in Taxes

Recently, joint research from the Internal Revenue Service and the Urban-Brookings Institute highlighted the results of many IRS enforcement activities, including the impact of past years’ changes to IRS Collection policy. It is no secret that the IRS has been kinder and gentler to tax debtors during the past five years.

 

The 2012 Fresh Start Initiative and the relaxing of lien filings and levies during the past five years has relieved burden on taxpayers and the resource-constrained IRS. However, this more relaxed policy hasn’t resulted in maximizing collection for the U.S. Treasury. The IRS continues to tweak its collection policies and procedures to collect the most tax dollars.

 

During the past five years, new laws and IRS administrative changes to collection policy have been frequent, and can be hard for taxpayers and tax professionals to keep up with. This year has been no exception; in fact, 2017 has seen these six important changes to IRS collection policy.

Georgia Statute of Limitations on Debt Collection

Many consumers in the state of Georgia are dealing with unpaid credit card bills, medical bills, and other unpaid loans. When debts go unpaid for a long period of time, creditors may decide to institute a lawsuit against the consumer so that the creditor can obtain a judgment. A judgment provides the ability to collect money involuntarily through wage garnishments or seizures of bank accounts or other property.

 

A debtor being sued by a creditor should be informed of the statute of limitations for a breach of contract action. That's because most lawsuits for the collection of debts are considered breach of contract cases. In Georgia, written contracts have a statute of limitations period of 6 years from the time in which the debt becomes due and payable and the period runs from the date of last payment (OCGA 9-3-24). On the contrary an open account, implied promise or undertaking has a statute of limitation of only 4 years (OCGA 9-3-25). Prior to entering into an agreement to pay off a debt, a consumer should ensure the debt is actually still due and payable.

 

NOTE: Payment, unaccompanied by a writing acknowledging the debt, does not toll the statute; the statutory period runs from the date of default, not the date of last payment.

What is the Shared Responsibility Payment?

The federal health care law known as the Affordable Care Act -- or Obamacare -- requires all Americans to have health insurance. If you currently don't have health insurance, you must get an exemption from the requirement to buy coverage, or wind up paying a tax penalty. The law says citizens, employers and government share the responsibility of keeping everyone covered, so the fee for going without insurance has been dubbed the "shared responsibility payment."

 

Insurance requirements

 

Under Obamacare, you and your dependents must be covered by a health insurance policy that provides "minimum essential coverage." Health insurance you get from an employer provides this level of coverage, as do government health insurance programs such as Medicaid and Medicare. Any policy you buy through the online marketplaces set up under Obamacare also gets you minimum essential coverage. A health insurance provider can tell you whether a policy offers minimum essential coverage.

 

Available exemptions

 

The Affordable Care Act includes several exceptions to the coverage requirement. If you have an exemption, you don't have to pay the shared responsibility fee even if you don't buy health insurance. Take a look at the following list. If any of these apply to you, you may be exempt:

 

  • Your income is so low that you aren't required to file a tax return. For example, single taxpayers in 2017 don’t have to file if their income is $10,400 or less; for married couples, it’s $20,800. This amount can change each year.
  • You can't find affordable insurance. The law defines affordable as a policy that costs no more than 8 percent of your income.
  • You have a gap in coverage for less than three months
  • You're a member of an Indian tribe recognized by the federal government
  • You take part in a health care sharing ministry. This is a religious-based group whose members pledge to pay one another's medical bills.
  • You belong to a recognized religious group with faith-based objections to all forms of health insurance -- not just Obamacare
  • You are an inmate or are in the country illegally
  • You apply for and receive a hardship exemption, such as for homelessness, bankruptcy or natural disaster

 

Making the payment

 

If you're required to make a shared responsibility payment, the amount you'll pay depends on several factors:

 

  • How many people in your household went uninsured during the year
  • Whether the uninsured people were adults or children
  • How long they were uninsured.
  • Your household income

 

You start by calculating your "full" shared responsibility payment -- how much you'd owe if you were uninsured all year. You then adjust that full payment according to how long you were without insurance. For example, if your full shared responsibility payment was $480 and you were uninsured for half the year, you would pay half of that $480, or $240. In most cases, you'll calculate and make your shared responsibility payment when you file your income tax return.

 

Calculating the payment

 

The shared responsibility payment is being implemented gradually over a number of years:

 

  • For 2014, the full payment is $95 for each adult, $47.50 for each child, up to a maximum of $285 -- or 1% of your household income, whichever is higher
  • For 2015, the full payment is $325 for each adult, $162.50 for each child, up to a maximum of $975 -- or 2% of your household income, whichever is higher
  • For 2016 and 2017, the full payment is $695 per person, $347.50 for each child, up to a maximum of $2,085 -- or 2.5% of your household income, whichever is higher

 

After 2016, the household income percentage remains at 2.5%; the per-person amounts and the household maximum will rise with inflation.