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Bankruptcy Law, Credit, Timothy Kingcade Posts

The Dirty Dozen Tax Scams for 2015

Posted on February 12, 2015by Admin

Aggressive phone calls top the IRS’s list of “Dirty Dozen Tax Scams of 2015.” The government has issued a warning to taxpayers- the early weeks of the filing season are when these phone scams are rampant.

Below is the complete “Dirty Dozen” list of tax scams to watch out for this year:

1.) Phone scams. Aggressive and threatening phone calls by criminals posing as IRS agents remain an ongoing threat to taxpayers. The IRS has seen a surge of these phone scams in recent months as these scam artists threaten arrest, deportation and license revocation.

2.) Phishing. Beware of fake emails or websites looking to steal your personal information. The IRS will never send you an email about a bill or refund. Even clicking on certain strange links and websites can allow scammers access to your personal information and passwords.

3.) Identity theft. Taxpayers need to be aware of the potential for identity theft, particularly around tax time and take every precaution to avoid becoming a victim.

4.) Return preparer fraud. Taxpayers need to be aware of criminals posing as tax professionals. These individuals set up shop each filing season to perpetrate refund fraud, identity theft and other scams.

5.) Offshore tax avoidance. It is a bad bet to hide money and income offshore. Taxpayers need to come forward voluntarily to get their taxes and filing requirements in order with the IRS’s Offshore Voluntary Disclosure Program.

6.) Inflated refund claims. Taxpayers need to be on the lookout for anyone who promises inflated refunds. Taxpayers should avoid anyone who asks them to sign a blank return, promises a large refund before looking at their records, or charges fees based on a percentage of the refund. These scams usually target their victims through flyers, word of mouth, advertisements, community groups and even churches.

7.) Fake charities. Taxpayers should be aware of fake charitable organizations anxious for donations. Oftentimes these charities have a similar or familiar sounding name to nationally recognized organizations.

8.) Hiding income with fake documents. Hiding taxable income by filing false Form 1099s or other fake documents is a scam that taxpayers should always avoid and guard against. In the end, the taxpayer is legally responsible for what is on his or her return, regardless of who prepares the paperwork and does the filing.

9.) Abusive tax shelters. Taxpayers should steer clear of using abusive tax structures to avoid paying taxes. The IRS is committed to putting a stop to these complex tax avoidance schemes and the people behind them. When in doubt, seek a professional’s opinion.

10.) Falsifying income to claim credits. Taxpayers should avoid inventing income to fraudulently claim tax credits. Taxpayers are sometimes talked into this by scam artists. A taxpayer’s best bet is to file the most accurate return possible.

11.) Excessive claims for fuel tax credits. The fuel tax credit is not available to most taxpayers and is generally limited to “off-highway” businessuse, including use in farming. However, the IRS routinely finds taxpayers who erroneously claimed the credit to inflate their refunds.

12.) Frivolous Tax Arguments. The penalty for filing a frivolous tax return is $5,000. Promoters of these schemes encourage taxpayers to make unreasonable and outlandish claims to avoid paying the taxes they owe.

Click here to read more on this story.
http://www.nbcphiladelphia.com/news/local/The-Internal-Revenue-Service-List-of-Dirty-Dozen-Tax-Scams-291445471.html

If you are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Foreclosures, Timothy Kingcade Posts

HARP: The Government Refinance Program the Banks Don’t want you to know about

Posted on February 10, 2015by Admin

Despite being launched in 2009, less than 0.5% of people have taken advantage of the Home Affordable Refinance Program (HARP). Few people know about it and even less know how to use it. HARP is designed to help homeowners obtain a more affordable, stable mortgage. It provides a bailout to help millions of homeowners save a significant amount of money by lowering their mortgage payments. Those who have taken advantage of the program have reduced their mortgage payments by as much as $3,000 a year.

The program expires in 2015, but there’s still time to get signed up. If you qualify and refinance through HARP, you may be able to take advantage of a number of significant benefits, including:

• Eliminating up to 15 years of mortgage payments and interest;

• Changing to a lower monthly payment;

• Refinancing at historically low rates.

Banks do not want you to benefit from the program, because it allows homeowners to switch lenders, taking millions out of their pockets and putting it back into the pockets of everyday people. If you feel like your mortgage interest rate is too high with your current lender, it probably is. HARP can help you switch to a new lender, one prepared to offer you today’s low rates, and you could save big. HARP is a government program and is totally free, so you have nothing to lose.

Click here to see if you qualify.

Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami foreclosure defense attorney Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Consumers Beware: No one can Erase Bad Credit

Posted on February 6, 2015by Admin

The Better Business Bureau is warning consumers to beware of companies making false promises of quick credit repairs. They have seen an increased number of complaints against local and national credit repair companies that are claiming to be able to erase bad credit for upfront fees of $250 or more. So can you actually erase bad credit? Consumers can have credit reporting errors corrected, but unfortunately, if the debt is valid no company can make it disappear.

For a fee, credit repair companies promise to clean up your credit report so you can obtain a car loan, mortgage or even a job. Based on the BBB experience, many of these companies fall short on their promises. After consumers pay these companies, sometimes thousands of dollars in fees, they do nothing to improve the consumer’s credit and simply disappear with the money.

The Federal Trade Commission has the following tips to help consumers avoid the pitfalls associated with these credit repair companies:

•Avoid any company that tells you it can get rid of most or all the negative credit information in your credit report, even if that information is accurate and current.

•Avoid any company that charges an upfront fee for credit repair services. This is against the law.

•Beware of any credit repair company that does not tell you your legal rights and steps you can take to repair your credit score free of charge.

•Avoid any credit repair company that tells you not to contact a credit reporting company directly.

•Avoid any credit repair company that advises you to dispute ALL of the information in your credit report.

•Avoid any company that suggests creating a new credit identity or applying for an Employer Identification Number to use instead of your Social Security number. Not only is this illegal, it leaves consumers open to prosecution for fraud.

Click here to read more on this story.
http://www.theadvertiser.com/story/money/business/2015/01/03/beware-claims-one-can-erase-bad-credit/21251883/

Bankruptcy Law, Credit, Timothy Kingcade Posts

Parents with poor credit: Beware of this Student Loan Rule Change

Posted on February 5, 2015by Admin

There has been much criticism that federal student loans are too easy to get and that borrowers can take on large amounts of debt with little verification that they can ever pay it back. The Department of Education has announced new regulations that are aimed at one type of federal loan that currently does not require a credit check- Parent PLUS Loans.

PLUS loans are available to parents to help provide financing for children who do not qualify for enough financial aid on their own. But there are no specific limits on the amount that can be borrowed under this program- other than that parents cannot borrow more than the total cost of their child’s education after other financial aid has been deducted.

In the final regulations issued by the Department of Education, which go into effect March 29, 2015 borrowers who have an “adverse credit history,” may find it harder to qualify for these type loans. The evaluation will take into account whether the borrower has:

• One or more debts that are 90 days or more delinquent with a total outstanding balance larger than $2,085;

• Accounts placed for collection or charged off in the two years before the credit report is pulled;

• Bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment, or write-off of a federal student loan debt in the past five years.

PLUS loans can be dangerous and are often accompanied by higher interest rates than other federal loans and fewer flexible re-payment options. For example, one parent shared on Credit.com’s blog that he has $45,000 in outstanding parent loans, but only makes $28,000. His children are unable to help him repay the loan at this time.

These changes are likely going to make parents look harder at the true burden of student loan debt and the potential return they are getting with taking out these loans. Parents thinking about borrowing money to help their children pay for college would be wise to review their annual credit reports to identify any discrepancies and think twice about whether PLUS loans are the best option.

Click here to read more on this story.
http://www.foxbusiness.com/personal-finance/2015/02/02/student-loan-rule-change-that-could-hurt-parents-with-bad-credit/

For borrowers who are struggling with student loan debt, relief options are available. Many student loan borrowers are unaware that they have rights and repayment options available to them, such as postponement of loan payments, reduction of payments or even a complete discharge of the debt. It is important you contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at http://www.miamibankruptcy.com.

Bankruptcy Law, Credit, Timothy Kingcade Posts

T-Mobile will Ignore Bad Credit if Bills are paid on Time for One Year

Posted on February 4, 2015by Admin

Many Americans miss out on qualifying for the favorable rate plans mobile carriers offer due to having a less than perfect credit score. In fact, 63% of Americans have a less than desirable credit score, so they do not qualify for the deals many of the wireless companies spend billions of dollars promoting.

John Legere, T-Mobile’s CEO and President, wants to change all that by offering a new service called Smartphone Equality. This plan will offer the same financing options for all customers, including those with bad credit. This will be available to customers who have paid their T-Mobile bill on time for 12 months.

Smartphone Equality puts the relationships the cellular company has with loyal customers above their credit scores. Legere believes that T-Mobile’s relationship with those customers is a better predictor of future behavior than their credit history.

Click here to read more on this story.
http://www.forbes.com/sites/amitchowdhry/2015/01/26/t-mobile-smartphone-equality/

Bankruptcy Law, Credit, Timothy Kingcade Posts

New Bill Introduced to Forgive Student Loan Debts during Bankruptcy

Posted on February 3, 2015by Admin

A lawmaker has filed legislation in Congress which will allow student loan debt to be treated just as other forms of debt that can be discharged in bankruptcy. As we all know, student loan debt is treated differently in bankruptcy court than credit card debt, auto loans or mortgage debt, and cannot be discharged. Representative John K. Delaney, D-Md., introduced the Discharge Student Loans in Bankruptcy Act (H.R. 449).

In a statement he said, “Student loan debt is dragging down economic growth, keeping the American Dream out of reach for many and is a monthly strain for millions.” Student loan debt continues to increase as the cost of college tuition continues to rise. According to a study by the Institute for College Access & Success, 69 percent of graduates from the class of 2013 left school with an average of $28,400 in student loan debt.

Delaney has backed several bills focused on student loans and financial aid. He is also a cosponsor of the Middle Class CHANCE Act, which increases support provided by Pell Grants. In his previous term, Delaney voted for legislation in the House to prevent student loan rates from rapidly increasing and cosponsored the Truth in Tuition Act, which requires institutions to provide multi-year tuition and fee schedules.

Click here to read more on this story.
http://www.accountingtoday.com/news/education-planning/congressman-introduces-bill-to-forgive-student-loan-debts-during-bankruptcy-73395-1.html

Bankruptcy Law, Credit, Timothy Kingcade Posts

Top 5 Predictions for Student Loans this Year

Posted on February 2, 2015by Admin

Last year, we saw small signs of change and new advocates gearing up to address the student loan crisis. You may be wondering what to expect this year. Here are five predictions for student loans in 2015.

1.) Policy changes. There will continue to be a lot of attention on student loans in Washington. There will likely be a bill passed by a Congressional Democrat, but it will be tough to pass with a Republican-run Congress.

2.) Rising rates. Interest rates will remain relatively stable, with the possibility of increasing towards the end of the year. It has been widely anticipated that interest rates will rise towards the end of this year.

3.) Better student loan options for more people. New companies have entered the market with the goal of “fixing the broken student loan market.” These online lenders focus on giving student loan borrowers a better rate and overall better experience. They focus mainly on refinancing student loan debt into lower interest rate loans. These companies will continue to expand this year, providing more positive options for those with student loan debt.

4.) More talk about the value of an education. Price-conscious consumers will rigorously evaluate the ROI of their education. People will become more educated on the university system today- and determine the high cost of education is economically “worth it” for some schools and degrees, but not as much for others.

5.) Broader attention from investors. Investor demand for student loan assets will increase. The last 1-2 years have seen increased student loan activity in the capital markets- securitizations, whole loan sales and equity investments. There is expected to be more of this in 2015 and an increased demand from investors.

Click here to read more on this story.

Bankruptcy Law, Timothy Kingcade Posts

Get your tax refund EARLY! E-filing for Taxes begins TODAY

Posted on January 20, 2015by Admin

Looking to receive the fastest tax refund possible? You can prepare and e-file your 2014 tax return on efile.com. This will ensure you receive the fastest tax refund the IRS allows; you can even have the funds directly deposited into your bank account. Electronic filing is the safest way to file a tax return and the fastest way to get your refund. Seventy-two hours after your tax return is accepted by the IRS, you can track your tax refund.

As many Americans use their refunds to purchase expensive electronics or long-awaited vacations, the National Bureau of Economic Research (NBER) found that more than 200,000 households use their tax refunds to file bankruptcy. This spike in bankruptcy filings towards the first part of the year has been attributed to the increased cost of filing, after U.S. bankruptcy laws changed in 2005. Families have been forced to delay filing until they can afford to pay the fees, according to the NBER.

Since changes to the law in 2005, the average cost of legal and administrative fees jumped from $921 in 2005 to $1,477 just two years later, according to the U.S. Government Accountability Office. The law was changed to prevent bankruptcy abuse. It was thought that too many people who could afford to pay their debts were taking advantage of the system. Since then, fewer people have filed for bankruptcy, but that does not mean these changes have reduced abuse of the system. The people who really need bankruptcy are the ones who are unable to afford the filing fees.

Last year the average tax refund was $3,096, enough for many distressed Americans to file for bankruptcy and get the necessary help they need.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Stricter Penalties for Federal Employees who do not pay their taxes

Posted on January 19, 2015by Admin

Just in time for tax season- the new chairman of the House Oversight and Government Reform Committee has said that Federal employees who refuse to pay their federal taxes should face stricter penalties for their actions. According to Rep. Jason Chaffetz, R-Utah, 100,000 federal employees do not pay their federal taxes every year, and one of his priorities as a newly elected government official is to strengthen the penalties they will face.

So how big is the problem? According to Chaffetz, this loss accounts for roughly $1 billion a year that is not collected from federal employees because they choose not to pay their federal taxes.

For the last several years Chaffetz has pushed legislation that would allow agencies to fire or prohibit them from hiring people who owe federal taxes. Chaffetz said while the IRS has the ability to fire employees who owe federal taxes other agencies do not. He wants to expand that power to all agencies.

Click here to read more on this story.
http://www.federaltimes.com/story/government/management/oversight/2015/01/09/chaffetz-chair-tax-delinquent-feds/21494577/

Bankruptcy Law, Credit, Timothy Kingcade Posts

Debt Collection Agency held accountable for improper collection practices in NY

Posted on January 16, 2015by Admin

Encore Capital Group Inc., a buyer of consumer debt, recently agreed to settle claims that it used improper collection methods in New York. According to Attorney General Eric Schneiderman, the company obtained judgments against New York consumers for debts that were too old to collect.

Under the settlement, Encore will have to throw out more than 4,500 improperly obtained judgments totaling almost $18 million. In addition, the company will be required to reform its practices and pay civil penalties of $675,000.

Encore is a debt buyer that purchases unpaid consumer debts, such as credit card debts from the original creditor or from other debt buyers at deeply discounted prices.

Click here to read more on this story.