Who’s Who When Dealing with the IRS.

When dealing with the IRS, it can seem challenging to determine who you are corresponding with and what powers they have. However, for the normal taxpayer, it is remarkably simple. Taxpayers will usually correspond with three different players within the IRS. These include revenue officers, revenue agents and special agents.

Revenue officers help the IRS by collecting taxes that have already been assigned. Their civil responsibility is to collect unpaid taxes before they fall further into arrears. This process often involves calling or meeting with taxpayers directly. If taxpayers do not pay, revenue officers have the ability to file liens and levies against property, wages or bank accounts.

Revenue agents serve the IRS by auditing tax returns. They examine returns for unreported income and to search for deductions that cannot be substantiated by taxpayers. If taxpayers cannot support the numbers which they reported, they will be required to pay the full … Read More

Mid-Life Financial Strategies:

Between age 45-55, employees are usually earning the most of any point in their lives. However, despite the feeling of monetary security, it is crucial to have solid mid-life financial strategies. Expenses such as children’s college bills and funding retirement can loom large on the horizon, and it is important to make the most of these wealth-building years.

One of the best things that you can do to ensure financial security is to organize and diversify your portfolio. It is important to have a variety of stocks, bonds, equities or other securities. These monies should vary in risk, time horizons and return on investment. You should also keep your portfolio fluid, retaining the ability to rebalance it if one investment becomes too heavily weighted.

Another significant consideration is taxes. At this moment, you are likely in the highest tax bracket you will ever be classified in. Because of this, you should … Read More

Your College Fund Should Include a Roth IRA:

As we approach “back to school” season, there are a plethora of ways to fund a student’s college journey. Financial aid, grants, scholarships, subsidized loans, 529 plans and numerous other options exist. However, few people ever consider paying for school with a Roth IRA account. Though IRA’s are specifically designed to be retirement nest eggs, they have several benefits which make them very useful for paying education expenses.

First, unlike 529 plans, Roth accounts are not reported as assets on the FAFSA (Free Application for Federal Student Aid) form. By increasing a family’s net assets, savings in some college plans can actually count against the money a student receives for financial aid. By putting these savings in an IRA, it is possible to reduce a family’s total assets and give a student more of a chance to receive federal aid.

Second, funds that are put into a Roth IRA are flexible. … Read More