H2A Workers

 

JAMAICAN H2A WORKER INCOME TAX SERVICES

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Loewer & Associates, with over 25 years of experience preparing income tax returns and representing taxpayers before the IRS and state tax agencies, offers the following services to assure H2A workers are in compliance with all income tax filing requirements.

FEDERAL AND STATE INCOME TAX SERVICES

* Preparation of all necessary Federal and state income tax returns
* Returns electronically filed to insure accurate, timely, and secure compliance with all tax authorities.* Efiling can be faxed or emailed to the H2A worker or his designee for prompt service.
* Filing of IRS Form 2848 (Power of Attorney) which permits Loewer & Associates to contact the IRS, if necessary, and insures that copies of all tax notices are sent to our office.
* Assistance with completing Form W-7, used to obtain an ITIN for dependents.

ASSISTANCE WITH PRIOR YEAR TAX PENALTY NOTICES

* Determine the accuracy of taxes, penalties, and interest assessed to the H2A worker.
* Filing of IRS Form 2848 (Power of Attorney) which permits Loewer & Associates to contact the IRS, if necessary, and insures that copies of all tax notices are sent to our office.
* Correspondence and communication with the IRS to insure that the correct amount of taxes and penalty have been calculated.
* Attempt to reduce assessed penalties using the IRS reasonable cause abatement doctrine.

If you would like Loewer & Associates to help with your tax preparation or resolve prior year tax matters please contact Kim Loewer, EA or Michelle Shambo RTRP, H2A tax specialist, at (802) 545-5600 email:michelle@loewertaxes.com.

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Federal Income Tax and FICA Withholding for
Foreign Agricultural Workers with an H-2A Visa

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TAX TIDBIT – H2A WORKERS

IRS STEPS UP ENFORCEMENT ACTION ON PAST YEAR TAX RETURNS

H2A workers have begun to receive IRS penalty notices regarding unpaid and, in most instances, unfiled income tax returns for 2008, 2009, and 2010. The notices reflect a total amount due for tax, penalties, and interest. Many H2A workers were unaware that their US income, reported on Form 1099-MISC, was subject to income tax and that they had a filing requirement for these years.

Indeed there was a widespread belief that the compensation was exempt from US income taxes. This is incorrect. It has been our experience that the amount of tax computed by the IRS is often incorrect and the penalties can often be eliminated using a ‘reasonable cause’ abatement procedure. However – the timeframe to object to the notice of proposed assessment and reduce the taxes and penalties is limited after which the amounts become final and cannot be contested.

2013 INCOME TAXES NOW DUE

For an H2A worker who qualifies to file a 1040 the filing deadline was April 15th. By filing a tax extension the worker would have until October 15th to file the tax return. If the worker was required to file a 1040NR the filing deadline is June 15th, so no extension is necessary at this point. If no extension was filed for the H2A worker’s 1040 the IRS may assess a ‘failure to file penalty’ once the return is actually filed. The penalty is calculated monthly so a prompt filing of the tax return, even if full payment can’t be made, will help limit the amount assessed.