Since it is almost the Fourth of July, I thought this would be the perfect time to congratulate one of our JK Harris Supervisors, Kaydian Morgan, who took her oath and became a United States citizen on June 12th.

Kaydian was born in Jamaica and moved to the U.S. in 1989. You see, her brother was in the U.S. Navy and was stationed in South Carolina when he urged their father to relocate. She joined our JK Harris family in 1999 and was promoted to Supervisor in 2003.

“I’ve always been civic-minded and wanted to be part of the process instead of being just a very opinionated observer,” Kaydian said. “I will be voting for the first time in a general election in November.”

I personally give Kaydian all the credit in the world for a number of reasons: First, for moving to a country she is not native of; second, for learning the history and government of the U.S. and actually wanting to become a legal citizen; third, for wanting to actively take part in the voting process, which is every U.S. citizen’s right but not a right every U.S. citizen exercises; and fourth, for actually completing the very time-consuming process of becoming a citizen.

Kaydian herself admitted it wasn’t an easy process. She even said she began the process a few different times, but did not complete it due to the paperwork. “You have to complete a nine-page questionnaire, obtain passport pictures, and get fingerprinted,” she said.

But when asked what the most challenging part was, her reply was, “Actually sitting in the waiting room before my interview and the Oath Ceremony. You’re not allowed to have your cell phone or any communication device with you in the waiting room. Being the person who always has to have my cell phone/PDA with me so I can communicate with my friends and family, I was climbing the walls.”

Thank you, Kaydian for being a true Patriot. And, congratulations!

Even people who build things for a living can use some “rebuilding” help when it comes to the IRS. Paul D’Angelo, a self-employed carpenter from Massachusetts, can attest to that. He owed the IRS $147,863 and was not in compliance with his Estimated Tax Payments. He realized he truly was not able to pay the IRS the money he owed and came to JK Harris for help in rebuilding his financial future.

“As soon as I signed with JKH, I felt a sense of relief…” D’Angelo said.

Not only were we able to lower his IRS debt to just $3,754, through the Offer in Compromise program, but during that process, Mr. D’Angelo was issued a bank levy, which wiped his accounts clean. Thankfully, we negotiated a levy release with the IRS, and his money was returned to him.

The topper to the whole ordeal is that the IRS rejected Mr. D’Angelo’s initial Offer. But through the IRS’ very own appeal process, we were able to convince them this was really the best solution for all concerned, and they finally accepted the original amount.

It just goes to show that even the doesn’t always get it right the first time. But when determined individuals, like our employees at JK Harris can make a compelling case for their customers, the IRS also can show reason when it’s warranted. I’m so glad we could help you get back on your financial feet.  Congratulations, Mr. D’Angelo.

It always does my heart good when young men and women return home, safe and sound, from serving their country. It’s especially heartwarming when one of those young men is someone who works for you.

I was so happy to see, Jonathan Havens, one of our Tax Preparers recently returned from a one-year National Guard tour of duty in Afghanistan. While in Afghanistan, he helped teach advanced S.W.A.T. (Special Weapons And Tactics) to the local police. And from what I understand, his team alone trained approximately 3,000 members of the police force.

Now, Jonathan wasn’t in the situation of shoot or be shot, but it still wasn’t a walk in the park. Afterall, he was in a country that is in the midst of a conflict with much hostility towards foes and, sometimes, even friends.

After getting over the culture shock when he first arrived in Afghanistan, Jonathan and the rest of his team began the difficult task of getting to know the local people and eventually earning their trust.

He did say the thing he enjoyed the most of this experience was seeing the country’s children and getting to interact with them and even help them in different ways, such as providing them money to buy what we consider basic essentials, such as food or clothing.

And what was his first thought when he arrived back home? “The first thing I was thankful for was seeing grass,” he said. Jonathan also said the Afghan experience made him, “appreciate a lot of things you normally take for granted.”

I also want to mention that Jonathan’s father, Ralph, is our Director of Professional Services. Ralph, who spent nine years in the U.S. Marine Corp, and his wife, Laurie, kept in constant contact with Jonathan the entire year he was gone, and I admire their strength in getting through this most trying time.

Jonathan still has two years of National Guard duty ahead of him. We all just hope that wherever he goes next, he will return safe and sound like he did this time. Welcome back, Jonathan!

Recently, I read a letter from a client of ours that contracted with JK Harris for audit representation. Our audit team had the opportunity to help this widow who was caught unaware by a terrible tax situation. In the years before her husband died, he had always reassured her that he was taking care of their taxes each year and everything was ‘fine.’ When he passed away, Mrs. Stone found out that this was not the case. Apparently, Mr. Stone had bought and sold a lot of stock without reporting all of the trades when it came time to file his tax returns each year for several years in a row. The whole situation left Mrs. Stone with a federal tax liability of over $33,000. She came to us for help.

Enrolled Agent Cathy Boags and Case Specialist Mirian Rivera worked Mrs. Stone’s case from start through completion. Once they were able to get the basis worked out for all of the stock trades and prepare the Stone’s tax returns for 2000 through 2004, Cathy was able to contact the Audit Reconsideration unit at the IRS with the updated information. When the IRS received all of Mrs. Stone’s updated information, they determined that she now had a zero balance with the government.

In her letter, Mrs. Stone said, “I am extremely pleased with JK Harris and Company…Cathy Boags was extremely helpful and pleasant. I would and have recommended JK Harris to others in need of tax help. Thank you so very much for your great services.”

We are always glad to help our clients get the help that they need and we are very glad that we could be of assistance.

Bill Lawitzke, Vice President, JK Harris Small Business Services, LLC

There is one big problem that new small business owners seem to face year in and year out – lack of information. Most new business owners, meaning those who file a Schedule C, Profit or Loss From Business, with their 1040 tax form, are unaware of many of the filing requirements that are necessary when operating a business.

But the IRS is stepping up to the plate and has launched a new campaign aimed at small business owners. Through the Internet (www.irs.gov), workshops and other educational materials, the IRS is attempting to educate new business owners so they will be compliant with all tax issues, by paying taxes properly and timely.

If you are a new business owner or are thinking about opening a business, you will want to pay close attention to this. The IRS is kicking off the campaign by offering basic tips on how to avoid some potential problems. These problems include, but are not limited to, incorrectly classifying employees, not filing federal employment taxes, not paying quarterly estimated tax payments, not keeping good records and not taking advantage of the electronic filing system.

Other tips the IRS will be sharing with new business owners are advising them to consider hiring a tax professional to help with their Schedule C, protecting financial and tax records in the event of a disaster, and avoiding abusive tax schemes.

If you are a new business owner and would like more information about the IRS’ recent campaign, visit the IRS website at www.irs.gov.

About Bill Lawitzke:
Bill began his stint with JK Harris in 2003 when he came to work with Small Business Services, LLC, where he is currently Vice President. He became an Enrolled Agent in 2007.

I know it can be an eerie kind of feeling when you find yourself at a dead end with the IRS. That’s exactly how Stephen Temple, a truck driver from Haysville, KS, felt when he was being threatened with wage garnishments because he owed the IRS.

Stephen’s tax troubles began because he was not having enough taxes withheld from his income. And after four years, those taxes, along with penalties and interest, totaled $6,500.

That’s when he came to us with the hopes we could help him settle his debt and get his life back on track. And I’m proud to say that in just nine months, we were able to prove to the IRS that Stephen could not afford to pay the full $6,500 he owed.

We showed the IRS he had no money left over after paying his bills each month. He had a few dollars in his pocket and some equity in his vehicle, and that was it. Thankfully, the IRS accepted a $363 Offer in Compromise, which also stopped the garnishment threats.

Now, Stephen says he is on his way to home ownership again. Congratulations, Stephen. I am so glad we could help.

Recently, the IRS sent out an official reminder that information about economic stimulus payments is now available in Spanish on the official IRS website.

Spanish speaking taxpayers may access this information by going to the IRS’ home page and clicking on the Espanol link.  Clicking this link will take you to the Spanish version of the IRS website, which provides information on a wide range of topics.

Information is available on the stimulus rebate at Centro de Informacion Sobre los Pagos de Estimulo Econmico (http://www.irs.gov/espanol/article/0,,id=180561,00.html).  This page also gives information on the to those Spanish-speaking taxpayers who might not normally file returns (retirees, disabled veterans, and low-wage workers), but who need to file their return this year in order to receive a stimulus payment.

There is newly translated information, which includes the Package 1040A-3, an 8 page package of instructions, a sample Form 1040A and a blank Form 1040A, containing everything needed to file a return.

If you know of anyone who could use this information, it is important to pass it on to them soon, especially if they do not normally file a tax return.  People who do not normally pay taxes may be eligible for the stimulus rebate, which the IRS will begin sending out in May.  It is important to note that qualifying taxpayers can still file a return to get the stimulus payment, even though the April 15th filing deadline has passed.

We all like hearing good news, don’t we? I know I do, particularly when it has to do with getting an offer in compromise accepted for one of our clients. Raymond Wagner was one of these clients. Mr. Wagner came to JK Harris when he found out he owed the IRS a lot of money… $15,487 to be exact. He didn’t realize until it was too late that he had not had enough taxes withdrawn from his paychecks and he did not know where to begin to resolve his tax issues. Luckily, he saw an ad for JK Harris in the newspaper and he called us to assist him.

Wagner contracted with JK Harris for an Offer in Compromise, which allows taxpayers who meet the criteria and who remain compliant with paying their taxes for five years following the accepted offer, to pay a portion of the amount they actually owed the IRS. The process is usually long and can be grueling, often taking six months to two years to complete.

Mr. Wagner’s battle was not an easy one, but his Case Specialist was determined. She worked closely with the IRS to get his offer approved and when word arrived that the IRS approved his offer of $700, the whole team working Mr. Wagner’s case was thrilled.

“I highly recommend the services of JK Harris and Company. The team that worked my case did an excellent job, especially my Case Specialist,” said Wagner. “Thank you, JK Harris!”

From all of us here at JK Harris, we are glad we could help!

Peter Hukki – Enrolled Agent

Are you wondering when you will be receiving your economic stimulus rebate from the IRS? Well, assuming you filed your 2007 tax return and it was processed by the April 15th deadline, the checks will begin being issued in just a couple of short weeks.

If you had your refund direct deposited or your payment direct debited from your bank account, your rebate will also be deposited directly into your account. When that deposit will happen depends on the last two digits of the primary taxpayer’s Social Security number. If your last two digits are 00 through 20, the rebate payment will be transmitted to your account on May 2. For the numbers 21 through 75, the rebate will be sent on May 9, and finally for the numbers 76 through 99, the rebate will be sent on May 16.

Paper checks will be mailed on a slightly different schedule, as follows: 00 through 09, mailed on May 16; 10 through 18, May 23; 19 through 25, May 30; 26 through 38, June 6; 39 through 51, June 13; 52 through 63, June 20; 64 through 75, June 27; 76 through 87, July 4; 88 through 99, July 11.

For those returns that were processed after April 15, you can expect your check approximately two weeks after receiving your tax refund. If you filed an extension, your return will need to be filed by October 15 in order to receive the stimulus payment.

The important thing to remember is that you must file a return to get the stimulus check. In other words, no ticket, no laundry.

Peter Hukki is an Enrolled Agent for JK Harris and Company, LLC. He has been an EA since 1974 and is also a practicing Tax Practitioner, completing tax returns for individuals, corporations, trusts, partnerships and estates.

For most Americans, April 15th allows us to relax knowing our tax obligation is taken care of for yet another year. The deadline to file taxes is here and we can collectively breathe a sigh of relief and feel we are ‘done’ for another year, but is that really the case?

As you well know, taxpayers must file, pay their taxes (if you owe) and have the envelope postmarked by the April 15th deadline. You can file for an extension, as long as you do it by the April 15th deadline, but did you know that an extension to file does not mean an extension to pay your taxes? Many Americans are unaware of this fact and it could cost them in penalties and interest.

Other things you may not know… if you do not file your taxes this year, you will miss out on receiving your rebate stimulus check. Even if you do not owe taxes, you must file in order to receive your rebate check. There are special instructions for some filers, so it is best to visit the IRS website (click here) and follow the link on the home page to the informational section on the stimulus rebate.

Also, did you know audits are on the increase? The number of individual returns audited in 2007 increased 7% over 2006, while audits of business returns increased 14%. The IRS is increasingly auditing returns, so be aware of this as you finalize your returns. Take extra care with itemized deductions and save all receipts, mileage logs or other documentation that will help you prove these deductions, should the need arise.

Lastly, if you are behind and owe back taxes, there is never a better time than the present to ‘get right’ with the IRS. If you owe more than you pay, the IRS has programs that may be able to help you. Whether you can afford to pay monthly payments or have suffered a loss of income and cannot currently pay, there are programs available that might help. Visit our website at www.jkharris.com for more information on some of the programs available to help you get rid of the burden to back tax debt.

Remember, you can breathe easy on April 15th, as long as you stay current with the IRS.