The Child Care Tax Credit- Do You Qualify?

June 17, 2013 by admin

Summer is here and if you are a working parent your children may be in daycare or with an in-home caretaker. Did you know this expense may qualify for a tax credit? Indeed, if you incur child care expenses anytime during the year, you may be eligible for the tax credit.

In order to qualify for the tax credit you must have earned income from either wages or self-employment. If married filing jointly, your spouse must also have earned income. The exception to this is if the spouse is a full-time student or unable to care for themselves due to mental or physical issues. The child(ren) for which you pay childcare for must be under 13 years old and must be claimed as dependent(s). The childcare expense can qualify for either in-home care or a daycare facility. Expense for overnight camps or summer tutoring do not qualify. If you pay other members of your family to babysit, this does not qualify. Keep your receipts and records to document this expense.

If you have any questions about this give our office a call at 312-664-6649. Read more about the child care tax credit here: http://taxes.about.com/od/deductionscredits/qt/child_care.htm

No More Fear and Sleepless Nights. How Steven Leahy Can Help

June 11, 2013 by admin

Are you laying awake all night worrying about your IRS problem? You don’t have to stand back and watch them take your home or levy your bank account. You don’t have to hide what’s happening from your spouse anymore. Not only do I know that you can rebuild your life – I think that you deserve to rebuild your life, and I can help.

At Opem Tax Resolution, we take a broad view of your financial picture, and help you in tax and debt relief. IRS levies, foreclosure, collections, we are ready to assist you with any of these problems. A lawyer who only has one solution to offer is the same as a carpenter who only has a hammer in his tool belt — to him, everything looks like a nail. At the Law Office of Steven Leahy we have all of the tools necessary to help you out of your financial crisis and to move on with your life. We can bring you options and help you decide which one is best for you.

I feel lucky to be in a position where I can contribute to the lives of others in this way. When I help a client fix everything – their tax problems and their debt problems – I feel like I’ve hit a homerun. But I can’t help you, if you don’t call me. Your first consultation is free. Call to schedule an appointment today. 312-664-6649 or https://chicagotaxteam.com/contact-us/

Tax Identity Theft on the Rise

June 6, 2013 by admin

Identity thieves have taken their game to law-abiding tax payers. Dishonest people file tax returns under the name and social security number of another person and claim refunds from the IRS. When the rightful person then files the real return, the IRS refuses to accept it, saying someone has already filed under that name. If this happens it is important to act quickly. You need to file a report with the local police or sheriff and present that to the IRS along with a paper tax return. (You may not e-file in this situation.)

Another scam is if you receive an email from the IRS. The IRS NEVER sends emails. If you get an email from someone appearing to be the IRS, DO NOT open it. This is a scam and one way identity thieves try to get your personal information. Be aware that the IRS can call you and they will if you haven’t filed or paid your tax returns. In some cases a revenue officer may come to your door, but they will never email. If you get an email that is posing as the IRS you should forward it to phishing@irs.gov so they can take steps to resolve the problem.

Should you choose to e-file your taxes next year there are a few preventative steps you can take to decrease the odds of identity theft. Do not use a public computer to file, and do not use a public network either. Always shred or burn your old tax records that you no longer need. (You don’t need to keep paperwork older than seven years.) If you are a victim of tax identity theft or if you have issues with the IRS please call my office today 312-664-6649 and see https://chicagotaxteam.com/why-us/.

Chicago – Discharge Taxes in Bankruptcy

June 4, 2013 by admin

Steven A. Leahy

Chicago – Discharge Taxes in Bankruptcy

What You Need to Know about Tax Bankruptcy in Chicago

Since bankruptcy can have a long-term negative impact on your financial life, it might be a big mistake to seek bankruptcy protection as a tax-relief option…if in the end it doesn’t relieve the tax pressure that you were seeking
to relieve in the first place.

In order to discharge taxes in bankruptcy it must meet these criteria:

1. The tax debt must be related to a return that was due at least 3 years prior to the taxpayer declaring bankruptcy

2. The tax debt must be related to a tax return that was filed at least 2 years before the taxpayer files bankruptcy

I know that the above 2 conditions are a bit confusing. Let’s see if I can clear it up a bit:

For example – if you file bankruptcy in 2007, the tax debt that you are trying to eliminate should be from a return
due in 2004 or before (meeting the requirement of #1).

If you wish to eliminate the debt due in 2004, you must have filed the return at least by 2005, which would meet the requirement in #2.

In other words, if you filed the taxes due in 2004 returns late (say in 2006), you would not be able to eliminate the debt in bankruptcy in 2007, since 2 years had not yet passed since the return had been filed.

Think that’s complicated?

That’s only the beginning. There are many complicated rules when it comes to getting your tax debt taken care of in a bankruptcy. If you are in trouble with the IRS or have received notices that you owe taxes, we can help. Call Opem Tax Resolution – The Law Office of Steven A. Leahy, PC (312) 664-6649. Call Now to schedule your FREE 1 hour Consultation!

IRS Offer in Compromise

June 4, 2013 by admin

Steven A. Leahy

Chicago: IRS Offer in Compromise

Chicago: IRS Offer in Compromise
Why the IRS is cracking down

There is one method of getting out of debt with the IRS that’s been abused more than any other.

This method, offers-in-compromise, has become downright controversial – so much so that the IRS made changes to the “rules” regarding this debt relief method for both taxpayers and tax relief specialists.

When the act that allowed Offer-in-Compromise passed, it was like a giant Pandora’s box opened up. All of a sudden, late night TV became filled with commercials from Offer-In-Compromise “Pros” promising troubled taxpayers the chance to “pay pennies on the dollar to the IRS”.

These “pros” would fill out the OIC paperwork and send it to the IRS, sometimes ignoring whether a client met the criteria for being accepted or not. Either way, the “pros” got their money…even if the client never had much of a chance of being accepted.

Not only did this practice create a huge number of people getting ripped-off, it may have caused a reduction in the number of Offers-in-Compromise that are actually being accepted by the IRS. On November 1, 2003, the IRS began charging a $150 processing fee for most Offer-In-Compromise proposals.

Also, in February of 2004, they officially issued “a consumer alert advising taxpayers to beware of promoters’ claims that tax debts can be settled for ‘pennies on the dollar’ through the Offer in Compromise Program.”

It seems that “frivolous” proposals – not to mention plenty of complaints by consumers – had been mounting… enough to warrant concern by the IRS.

The IRS has cracked down.

Offers-in-Compromise now only have a 15% chance of success. An offer-in-compromise may still be the right option for you, or there may be better alternatives.

Don’t waste your time, if you are in trouble with the IRS or have received notices that you owe taxes, we can help. Call Opem Tax Resolution – The Law Office of Steven A. Leahy, PC (312) 664-6649. Call Now to schedule your FREE 1 hour Consultation!

The Child Care Tax Credit- Do You Qualify?

No More Fear and Sleepless Nights. How Steven Leahy Can Help

Tax Identity Theft on the Rise

Chicago – Discharge Taxes in Bankruptcy

IRS Offer in Compromise

Chicago: IRS Offer in Compromise

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