Don t Forget Tax Day: Taxpayers Bill of Rights and the Importance of Paying Taxes March 26, 2015; 6:00 PM 7:30 PM

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1 EVALUATION FORM In order for us to improve our continuing legal education programs, we need your input. Please complete this evaluation form and place it in the box provided at the registration desk at the end of the session. You may also mail the form to CLE Director, NYCLA, 14 Vesey Street, New York, NY Don t Forget Tax Day: Taxpayers Bill of Rights and the Importance of Paying Taxes March 26, 2015; 6:00 PM 7:30 PM I. Please rate each speaker in this session on a scale of 1-4 (1 = Poor; 2 = Fair; 3 = Good; 4 = Excellent) Rinu Cherian Presentation Content Written Materials Carmela Walrond II. Program Rating: 1. What is your overall rating for this course? Excellent Good Fair Poor Suggestions/Comments: A. Length of course: Too Long Too Short Just Right B. Scheduling of course should be: Earlier Later Just Right 2. How did you find the program facilities? Excellent Good Fair Poor Comments: 3. How do you rate the technology used during the presentation? Excellent Good Fair Poor Comments: Please turn over to page 2 1

2 4. Why did you choose to attend this course? (Check all that apply) Need the MCLE Credits Faculty Topics Covered Other (please specify) 5. How did you learn about this course? (Check all that apply) NYCLA Flyer NYCLA Postcard CLE Catalog NYCLA Newsletter NYCLA Website New York Law Journal Website NYCLA CLE Other (please specify) Google Search 6. What are the most important factors in deciding which CLE courses to attend (Please rate the factors 1-5, 1 being the most important). Cost Subject matter Location Date and Time Provider Organization of which you are a member Other 6. Are you a member of NYCLA? Yes No III If NYCLA were creating a CLE program specifically tailored to your practice needs, what topics or issues would you want to see presented? 2

3 NYCLA CLE I NSTITUTE DON T FORGET TAX DAY: TAXPAYER BILL OF RIGHTS AND THE IMPORTANCE OF PAYING TAXES Prepared in connection with a Continuing Legal Education course presented at New York County Lawyers Association, 14 Vesey Street, New York, NY scheduled for March 26, 2015 Faculty: Carmela Walrond, Spar Bernstein & Lewis LLP; Rinu Cherian, EA (Enrolled Agent) This course has been approved in accordance with the requirements of the New York State Continuing Legal Education Board for a maximum of 2 Transitional and Non-Transitional credit hours: 1.5 Professional Practice/Law Practice Management. This program has been approved by the Board of Continuing Legal education of the Supreme Court of New Jersey for 2 hours of total CLE credits. Of these, 0 qualifies as hours of credit for ethics/professionalism, and 0 qualifies as hours of credit toward certification in civil trial law, criminal law, workers compensation law and/or matrimonial law. ACCREDITED PROVIDER STATUS: NYCLA s CLE Institute is currently certified as an Accredited Provider of continuing legal education in the States of New York and New Jersey.

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5 Information Regarding CLE Credits and Certification Don t Forget Tax Day: Taxpayers Bill of Rights and the Importance of Paying Taxes March 26, 2015; 6:00 PM to 7:30 PM The New York State CLE Board Regulations require all accredited CLE providers to provide documentation that CLE course attendees are, in fact, present during the course. Please review the following NYCLA rules for MCLE credit allocation and certificate distribution. i. You must sign-in and note the time of arrival to receive your course materials and receive MCLE credit. The time will be verified by the Program Assistant. ii. iii. iv. You will receive your MCLE certificate as you exit the room at the end of the course. The certificates will bear your name and will be arranged in alphabetical order on the tables directly outside the auditorium. If you arrive after the course has begun, you must sign-in and note the time of your arrival. The time will be verified by the Program Assistant. If it has been determined that you will still receive educational value by attending a portion of the program, you will receive a pro-rated CLE certificate. Please note: We can only certify MCLE credit for the actual time you are in attendance. If you leave before the end of the course, you must sign-out and enter the time you are leaving. The time will be verified by the Program Assistant. Again, if it has been determined that you received educational value from attending a portion of the program, your CLE credits will be pro-rated and the certificate will be mailed to you within one week. v. If you leave early and do not sign out, we will assume that you left at the midpoint of the course. If it has been determined that you received educational value from the portion of the program you attended, we will pro-rate the credits accordingly, unless you can provide verification of course completion. Your certificate will be mailed to you within one week. Thank you for choosing NYCLA as your CLE provider!

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7 New York County Lawyers Association Continuing Legal Education Institute 14 Vesey Street, New York, N.Y (212) Don t Forget Tax Day: Taxpayers Bill of Rights and the Importance of Paying Taxes Thursday, March 26, 2015, 6:00 PM-7:30 PM Faculty: Carmela Walrond, Spar Bernstein & Lewis LLP; Rinu Cherian, EA (Enrolled Agent) AGENDA 5:30 PM 6:00 PM Registrations 6:00 PM 6:10 PM Introductions and Announcements 6:10 PM 7:30 PM Presentation and Discussion

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9 Importance of filing taxes Tax Presentation T Rinu Cherian, EA Carmela Walrond, Esq.

10 WHY PAY TAXES Taxes are the price we pay to live in this great nation on earth. Without taxes we wouldn t have : Public Schools Public Parks Streets and Highways Army, Navy, Air Force, Marines

11 Filing Tax Returns Filing federal tax returns will help you on a personal level. In addition to keeping you out of trouble with the IRS, you should file taxes for: 1) REFUNDS 2) TAX CREDITS 3) PROOF OF INCOME 4) SOCIAL SECURITY 5) PEACE OF MIND

12 REFUNDS If you are an employee, your employer will deduct taxes and issue you a W-2 If you are a contractor or you are your own boss, you are responsible to pay taxes quarterly If you pay taxes, chances are that you would get a refund when you file taxes

13 Refunds received from Earned Income Tax Credit, Child Tax Credit or other tax credits are not considered income for any federal or federally funded public benefit program. Social Security Disability Insurance, SSI or military disability pensions are not considered earned income and cannot be used to claim Earned Income Tax Credit.

14 TAX CREDITS It is a misconception that tax credits are only for wealthy people Even in some cases if you don t pay enough taxes, with tax credits you will get refunds. The tax credits are : Earned Income Tax Credit Education Credit, Life Time Credit, American Opportunity Credit Adoption Credit Dependent and Child Care Credit Child Credit

15 EARNED INCOME TAX CREDIT To receive the Earned Income Tax Credit you must have : 1. Earned income 2. A valid SSN 3. Not file married filing separately 4. Passed following test with child: a) Relationship b) Age c) Residency d) Joint Return

16 Earned Income and Adjusted Gross Income must be less than 1. $46,997($52,427 MFJ) with 3 or more child 2. $43,756($49,186 MFJ) with 2 qualifying child 3. $38,511($43,941 MFJ) with 1 qualifying child 4. $14,590($20,020 MFJ) with no children 2014 Maximum EITC Credit 1. $6,143 with 3 or more child 2. $5,460 with 2 qualifying children 3. $3,305 with 1 qualifying child 4. $496 with no qualifying child

17 Few Proofs Required Proof of Relationship 1) Birth certificate 2) Marriage certificate to show how you are related to child. 3) Letter from adoption agency Proof for full time student: 1) School record showing address of record, dates the child attended the school 2)Day care records showing the name of parents and address

18 CHILD TAX CREDIT With Child Tax Credit, one may reduce the federal income tax up to $1,000 for each qualifying child under the age of 17 years(at the end of the year). Qualifying child has to meet the following criteria: o Age o Relationship o Support o Dependent o Citizenship o Residence

19 CHILD AND DEPENDENT CARE CREDIT The reason the child is in someone else s care needs to be because you or your spouse are working or looking for work. Qualifying person is your dependent child age 12 years or younger when care was provided $3,000 of expenses paid in a year for one qualifying individual or $6,000 for two or more qualifying individual can be claimed as a credit Other individuals who are physically or mentally incapable of self care may also be qualifying person

20 STUDENT LOAN INTEREST The amount one can deduct is the lesser of $2,500 or the amount of interest you actually paid. Conditions: 1. You paid interest on qualifying student loan 2. If you paid $600 or more you would receive Form 1098-E 3. You/spouse(if joint filing) cannot be claimed as dependent on someone else s tax return 4. Qualified student loan is a loan you took out solely to pay qualified higher education expenses

21 HOW OR WHERE TO FILE TAXES You can file taxes by using the services of Volunteer Income Tax Assistance or Tax Counseling for Elderly free of cost. File using the free file software available on irs.gov website. You can use internet in public library Use the services of a good tax professional If you do not file tax returns, you will not be claim credits such as earned income tax credit, child tax credit. In addition, you will not be able to claim a refund you may be entitled to collect.

22 PAYING TAXES If you are an employee you have to submit the W4 form to your employer so they can deduct taxes from your pay check. If you are self employed or a contractor, you have to pay federal, state, social security and Medicare taxes by estimating your income every quarter by April 15 th June 16 th Sept 15 th Jan 15 th next year

23 SCAMS Never use services of a person who claims that you will get higher refunds. Don t participate in illegal tax avoidance schemes. IRS constantly keeps a watch on such scams. Participating in illegal schemes could result in fines, imprisonment, penalties and interest. If anyone prepares your returns and illegally claims large refunds, you will be responsible for the information on the tax return, even if someone else filled it. Never sign a return unless you are sure the information on it is honest and correct

24 IDENTITY THEFT IRS uses your Social Security Number as tax identification number. If you share your SSN, you are exposed to identity theft. SSN is used to open bank accounts, credit cards, credit bureau reports etc. If you suspect your identity has been stolen, file a police complaint, call IRS ID theft unit at

25 WHAT TO DO IF YOU OWE TAXES Always file your tax returns timely each year and be a good citizen. If you owe taxes: Pay them as soon as possible. You can pay taxes using check, money order, debit cards and credit cards. If you can t pay taxes call the IRS at to tell them about your situation and ask them for a payment plan. This will help you avoid penalties. installment agreement. You can also visit IRS Offices.

26 OFFER IN COMPROMISE If you have a tax debt that you cannot pay in full or with a payment plan, you have the option of submitting an offer in compromise to settle the taxes by paying an affordable amount.

27 Thank You

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29 Taxpayer s Bill of Rights Tax Presentation Carmela Walrond, Esq. Rinu Cherian, EA

30 The Right to be Informed Taxpayers have the right to know what they need to do to comply with the tax laws. They are entitled to clear explanations of the laws and IRS procedures in all tax forms, instructions, publications, notices, and correspondence. They have the right to be informed of IRS decisions about their tax accounts and to receive clear explanations of the outcomes.

31 The Right to Quality Service Taxpayers have the right to receive prompt, courteous, and professional assistance in their dealings with the IRS, to be spoken to in a way they can easily understand, to receive clear and easily understandable communications from the IRS, and to speak to a supervisor about inadequate service.

32 The Right to Pay No More than the Correct Amount of Tax Taxpayers have the right to pay only the amount of tax legally due, including interest and penalties, and to have the IRS apply all tax payments properly.

33 The Right to Challenge the IRS s Position and Be Heard Taxpayers have the right to raise objections and provide additional documentation in response to formal IRS actions or proposed actions, to expect that the IRS will consider their timely objections and documentation promptly and fairly, and to receive a response if the IRS does not agree with their position.

34 The Right to Appeal an IRS Decision in an Independent Forum Taxpayers are entitled to a fair and impartial administrative appeal of most IRS decisions, including many penalties, and have the right to receive a written response regarding the Office of Appeals decision. Taxpayers generally have the right to take their cases to court.

35 The Right to Finality Taxpayers have the right to know the maximum amount of time they have to challenge the IRS s position as well as the maximum amount of time the IRS has to audit a particular tax year or collect a tax debt. Taxpayers have the right to know when the IRS has finished an audit.

36 The Right to Privacy Taxpayers have the right to expect that any IRS inquiry, examination, or enforcement action will comply with the law and be no more intrusive than necessary, and will respect all due process rights, including search and seizure protections and will provide, where applicable, a collection due process hearing.

37 The Right to Confidentiality Taxpayers have the right to expect that any information they provide to the IRS will not be disclosed unless authorized by the taxpayer or by law. Taxpayers have the right to expect appropriate action will be taken against employees, return preparers, and others who wrongfully use or disclose taxpayer return information.

38 The Right to Retain Representation Taxpayers have the right to retain an authorized representative of their choice to represent them in their dealings with the IRS. Taxpayers have the right to seek assistance from a Low Income Taxpayer Clinic if they cannot afford representation.

39 The Right to a Fair and Just Tax System Taxpayers have the right to expect the tax system to consider facts and circumstances that might affect their underlying liabilities, ability to pay, or ability to provide information timely. Taxpayers have the right to receive assistance from the Taxpayer Advocate Service if they are experiencing financial difficulty or if the IRS has not resolved their tax issues properly and timely through its normal channels.

40 Thank You

41 Carmela Walrond, Esq. is a tax professional at Spar Bernstein & Lewis LLP with nine years of federal and state/local tax compliance and controversy. She has experience in negotiating with the IRS on various tax issues for the benefit of clients or companies and involvement with tax audits and controversies. She received a Bachelor of Science in Accounting at Rutgers University and a J.D. from Rutgers University School of Law Camden. Carmela is a member of the Taxation Committee at NYCLA, the Young Lawyers and Tax Law Committee at the NYSBA and the Taxation Law Section, Young Lawyers Division and Minorities in the Profession at New Hersey Bar Association. Rinu Cherian is a qualified tax expert at Northeast New Jersey Legal Services Corp. He received a Bachelor of Commerce in Accounting and Finance at Osmania University, a Masters of Commerce in Accounting and a Bachelor of Laws in Tax Law/Taxation at Osmania University. He was an Enrolled Agent Federal Tax at the Internal Revenue Service. He is a member of the New Jersey Society of Enrolled Agents