Republican lawmakers are seeking an explanation from the IRS on allegations the agency has been harassing the Green Party. Rep. Tom McClintock (R-California), along with more than 60 Republicans from the House of Representatives, sent a letter to IRS Commissioner Douglas Shulman expressing their concerns that the IRS routinely discriminates against Tea Party groups and at the same time they also want to find out the reasons the IRS has yet to approve the tax-exempt status of the NORCAL Tea Party Patriots.

According to McClintock, one of the ways the IRS discriminates against the Green Party is to demand that the party produce complete records of every oral statement ever provided by any member of the NORCAL Tea Party Patriots, transcripts of the group's meetings for the past two years and "excessively long questionnaires all to be returned within unreasonably short time periods."

In their letter to Commissioner Shulman, McClintock said, “These demands go well beyond good-faith due diligence and appear designed to be logistically and financially impossible to comply with. We request that you provide a response demonstrating how these recent requests by the IRS are consistent with precedent and supported by law. We further request that the IRS refrain from any additional unwarranted and excessive information demands and other dilatory tactics."

In a speech at the House of Representatives, McClintock made claims that the Obama Administration is using the IRS to silence views of opposing political parties. He said, “This administration is very clearly, very pointedly and very deliberately attempting to intimidate, harass and threaten civic-minded groups with which they disagree, using one of the most feared and powerful agencies in the United States government to do so.”

The Republican co-signors of the letter said, “Such practices chill these groups’ constitutionally guaranteed rights to civic participation, freedom of association and free speech and are better left to despotic regimes than a revenue-collection agency in a free country.”

The IRS made no comments on this matter, simply responding in a statement that “By law, the IRS cannot discuss any specific taxpayer situation or case."

The watchdog group Americans United for Separation of Church and State filed an official complaint against Roman Catholic Bishop Daniel Jenky of the Peoria, Illinois diocese over remarks he made about how social services for Catholics could be eliminated if President Obama’s directive requiring all employers, including religious groups, to provide free birth control coverage in their health care plans.

According to the group’s director Rev Barry Lynn, the Bishop’s comments was tantamount to asking the parishioners not to vote for President Obama in the Presidential elections this year. “This fall, every practicing Catholic must vote, and must vote their Catholic consciences, or by the following fall our Catholic schools, our Catholic hospitals, our Catholic Newman Centers, all our public ministries — only excepting our church buildings — could easily be shut down,” Bishop Jenky said.

In his homily made to the congregation at St Mary’s Cathedral Peoria, Bishop Jenky compared President Obama’s requirements to actions of previous dictators like Hitler and Stalin. Bishop Jenky said, “Hitler and Stalin, at their better moments, would just barely tolerate some churches remaining open, but would not tolerate any competition with the state in education, social services and health care. In clear violation of our First Amendment rights, Barack Obama — with his radical, pro-abortion and extreme secularist agenda — now seems intent on following a similar path.”

Bishop Jenky was also alleged to have made comparisons between President Obama’s actions and past cultural wars against the church. “Remember that in past history other governments have tried to force Christians to huddle and hide only within the confines of their churches like the first disciples locked up in the Upper Room,” Bishop Jenky said.

The complaint by the Americans United for Separation of Church and State states that Biship Jenky has broken the law that prohibits the church from supporting or endorsing the candidacy of any person running for public office. Rev Lynn contends that churches or religious organizations that run on taxpayers’ money should be apolitical. In his letter, Rev Lynn wrote that Jenky violated the rules that prohibit issue advocacy.

Rev Lynn admitted that the Bishop did not explicitly tell his congregation members who to vote for. “To be sure, Jenky never utters the words ‘Do not vote for Obama,’” Lynn wrote. “But the Internal Revenue Code makes it clear that statements need not be this explicit to run afoul of the law.”

Bishop Jenky’s remarks also drew ire from the Anti-Defamation League of Chicago whose regional director Lonnie Nasatir demanded an apology from the Bishop saying, “A clergy person with so many people listening to every word should be more responsible and should think twice before making analogies.”

After Tax Deadline Now What

The tax filing deadline has just past. If you missed it, what should you do? Here are the steps you should take.

File your return as quickly as possible
Even though the deadline is over, you should still file your tax return early. In fact, it is because the deadline is past that time is of the essence. You will likely face a penalty on unpaid taxes and a late filing penalty calculated from April 17 so the earlier you file, the less you pay. However, if you can show just cause for missing the filing deadline, the IRS may reduce your penalties.

You should also file as soon as possible to get your refund. Don’t think you are owed a refund because your income is not taxable? Think again. Even if your income is below the taxable amount, you may be owed a refund due to the amount withheld from your wages, quarterly estimated payments or other special credits. If you are owed a refund, you may not be penalized but you need to claim your refund or forfeit it if you do not do so within 3 years.
What is likely to happen because you did not file is the IRS will bill you for taxes owed based on the information garnered from your previous tax submissions.

Check the status of your refund
Checking the status of your refund is easy. Visit www.IRSgov and click on “Where’s My Refund?”. You have to supply your primary Social Security Number on your 2011 return, your filing status (Single, Married Filing Jointly etc) and your expected amount of refund. Alternatively, you can call 1-800-829-1954 for automated refund information or use the IRS’ free phone app, IRS2Go, if you have a smartphone.

Use e-filing
The most efficient and quickest way to file your tax returns is via e-filing. E-filing is still usable through October 15.

Use Free File is eligible
If you earn not more than $57,000 in gross adjusted income a year, you are eligible for Free File at www.irs.gov/freefile meaning you can file your taxes for free. If you earn more than $57,000 a year you can use Free File Fillable Forms and file your own tax returns.

Make installment payment plans
You should pay as much as you can with your tax filing. But if you cannot afford paying in one lump sum, the IRS is willing to grant you a payment plan if you owe $50,000 and below. You can obtain a payment plan agreement from the IRS website. There is a set-up fee of $105 but it can be reduced to $52.00 if you pay by automatic debit. If you are in the lower income group, your fee is only $43.00. You can also call 1-800-829-1040 to set up an IRS payment plan. Simply file Form 9465 Installment Agreement Request

Amend any errors in your tax submission
If you find an error in your tax submission like an omission of a reportable income or deduction or credit, you can file a Form 1040X to amend your submission. The form is available at www.irs.gov or by calling 1-800-TAX-FORM. But you should wait until your original return has been processed before amending it. You have up to three years to amend your tax return.

Before I go into the final four tax facts, let’s recap what I’ve shared thus far. Here are the 6 tax facts you should be aware of:

Tax fact #1 – You can defer the deadline, not the payment
Tax fact #2 – You are likely leaving money on the table
Tax fact #3 – You do not have to fear audits
Tax fact #4 – You should seek professional help for your taxes
Tax fact #5 – Most audits do not result in paying more taxes
Tax fact #6 – You have several options for paying taxes

The final four tax facts can save or return you some serious cash in your taxes, so listen up.

Tax fact #7 – You can save energy and money at the same time
One useful tax saving benefit is the energy saving equipment cost credit. If you make home improvements that qualify as expenses for new windows, doors, insulation roofs and central air conditioners that conserve energy, you stand to claim a credit of up to $500 on your taxes. On top of that, if you install geothermal heating pumps or solar panels, you are eligible to claim a credit of up to 30% of the costs.

Tax fact #8 – You may be owed your refund
As of February this year, the IRS still holds more than $1 billion in unclaimed refunds for those who did not file an income tax return for 2008. If you are not sure if the IRS owes you your refund, visit the IRS website at www.irs.gov and click the “Where’s My Refund?” link to see the status of your refund (if any).

Many taxpayers do not claim their refund because they are unaware they have overpaid, thinking they do not earn enough to warrant paying taxes. Then there are those who do not receive their refunds because they have moved or wrongly entered their addresses or bank account numbers (for direct deposit refunds). So make sure you receive the refund that is due to you.

Tax fact #9 – You must be aware of the Alternative Minimum Tax
The number of taxpayers affected by the Alternative Minimum Tax (AMT, which was introduced in 1969) is going to increase every year. Why? Because Congress has not updated its features to account for inflation. They have only redefined the exemptions over the years. So you must be aware of the AMT.

What is the AMT? It is a law designed to make the rich with lots of deductions pay a minimum amount of tax commensurate with their income. But since Congress has not amended its main features over the years, 87% of married couples with an adjusted gross income between $75,000 and $100,000 who file next year is expected to pay the AMT. These are not the rich taxpayers that the AMT is designed to tax. According to the Tax Policy Center, the number of taxpayers subject to the AMT should hit a record 4.3 million this year, and the number is rising as the years go by. Go to www.irs.gov and click on “Online Services” for more information.

What can you do about it? Call us at (813) 229 7100 for a free consultation.

Tax fact #10 – Identity theft is rife, especially in parts of Florida
Here are some startling statistics – according to the Federal Trade Commission, 24% of identity theft complaints were tax-related in 2011, up from 15% in 2010. I practice law in Tampa where this percentage may well be higher as identity theft (especially tax-related ones) is rife. So please take all precautions to ensure your personal information is safe, especially when submitting your tax returns.

Call us at (813) 229 7100 for a free consultation on these or other tax-related issues.

Yesterday, I shared 3 tax facts you may not be aware of. The first was that the April 17 tax submission deadline is not set in stone (it can be deferred). The second was that you might be leaving money on the table if you have not claimed your rightful deductions. And finally, you do not have to fear tax audits if you have the relevant documents to justify your deductions. Here are some more tax facts you should know.

Tax fact #4 – You should seek professional help for your taxes
I am saying this not merely because I am a tax attorney but because I have seen many people lose more money by not hiring professional help with their taxes. The US tax code is a highly complicated body of laws so having a professional can help you navigate these laws to your best benefit. A tax attorney can identify errors by the IRS that could cost you money, such as technical oversights in payment the IRS is making you pay.

If you have a tax dispute or want a tax attorney to oversee your tax case, call us at (813) 229 7100 for a free consultation.

Tax fact #5 – Most audits do not result in paying more taxes
The IRS has admitted that most of the correspondence audits they conduct do not require additional payment, only more information. But the IRS will not say they are not after more money – it's more likely sending you an audit notification because of a discrepancy on a deduction or reported income but the onus is on you to prove otherwise. But if your case is more complex, you can get assistance for free at www.irs.gov/advocate or alternatively contact us at (813) 229 7100 for professional help and a free consultation.

Tax fact #6 – You have several options for paying taxes
Sadly, most taxpayers only know 2 ways to fulfill their tax obligations – pay in one lump sum or pay in installments. If you find it difficult to pay your taxes, you actually have a few options. Firstly, you can apply for an Offer in Compromise (OIC). An OIC is a way for you to pay less than what you owe in taxes. But this is open only to those who genuinely cannot afford all their taxes. You must prove that you do not have the assets or income to pay off your taxes and there may be an application fee of $150.

The next option is to for those who owe not more than $50,000 in taxes. You are eligible to negotiate a payment plan with the IRS. Under such a plan, you may even set up a deal with the IRS to suspend payment of you taxes for a period of time due to financial problems until your situation improves.

Finally, the IRS has introduced a program this year that gives you 6 months to pay your taxes without being charged a penalty. This is provided you have been unemployed or self-employed and your income has decreased by 25% or more in 2011.

Stay tuned for the final 4 tax facts in my next article.