Floyd Mayweather Jr. is pondering this next move. Faced with a deadline by boxing promoter Bob Arum, the American boxer has to make a decision that will have implications on himself both inside and outside the ring. Arum is waiting impatiently, as is the rest of the boxing world, for Mayweather Jr’s decision on fighting famed Filipino boxer Manny Pacquiao, nicknamed the Pacman.
If you suspect that an individual is not fulfilling his or her tax obligations (for example he or she is evading taxes), you have a right to report this to the IRS. You do so by filling in Form 3949-A Information Referral and sending it to the IRS in Fresno, California. Alternatively, if you wish you may send a letter with the relevant information. Your letter should contain the name and address, social security number (or business employer identification number) of the person (or business) you are reporting, a description of the alleged transgression done, including how you came to know about the case, how long has the alleged violation been going on, the estimated dollar amount of any unreported income and finally, your name, address and telephone number.
Today, I’ll conclude on my article yesterday about how to correct FICA withholding errors on your employees’ wages. As I said yesterday, it’s easy to make withholding mistakes, so keep IRS Publication 505, "Tax Withholding and Estimated Tax," handy, and consult with a tax professional if need be. So what can you do if you overpaid in your withholding?
The Federal Insurance Contributions Act (FICA) stipulates that all employers and employees must contribute 12.4% of annual income must be paid for Social Security tax and 2.9% into Medicare up to a total of $113,700. These funds are for financial and health welfare of all salaried workers. While there is a cap on your salary below which you are obligated to contribute to Social Security, there is no such cap for Medicare contributions, meaning no matter how much you earn, you still have to contribute to Medicare.
The National Taxpayer Advocate Service (TAS) is designed to help you, the taxpayer resolve your issues with the IRS when normal channels of resolution have failed. The TAS is an independent body that reports directly to Congress so they help keep the IRS in check. The TAS offers its services for free but there are some eligibility criteria you must fulfill. Here they are: