Before you get too excited about winning a small jackpot, striking it rich on Jeopardy, or getting your “free” car from Oprah, we want you to think for a moment about the possible tax implications of gambling winnings and prizes. Read more
No, an audit is by no means the final word or decision on your tax year in question. There are many alternatives when it comes to getting what is fair in the eyes of the law and the Internal Revenue Manual (IRM). Some other possibilities are listed below.
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The IRS and State are notorious for losing things. You may have sent them your W-2s but they lost them. You may have sent your return but they never put it in the system and force-filed you. There have been many “mix-ups” at the IRS but one thing is for sure; if something is missing they are not taking the blame; at least not without a fight. Keeping this in mind, always keep copies of whatever you send them. Always send important items by certified mail and keep good records of dates, times and what you sent.
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If you are like millions of other Americans, you have had to deal with an IRS matter once in your life. If that is the case you may have asked the question: How do I get the feared IRS off my back? The answer is not a simple one and is different for every taxpayer. Below is some helpful information to get you started in understanding mitigating a tax controversy. Read more
Most of us have made it past tax time and are looking forward to the summer. Some of us are still gathering last minute tax items and trying to finish up before October. I thought I would share a few off season tax tips that can help prepare you for a profitable 2016 Tax Year.
Create your tax strategy
Summer is a great time to go over your budget. Figure out the timing of your end of year bills. Maybe you will start saving for your property taxes over the summer so you can pay them off in 2016 instead of the beginning of 2017. Do you have a 401k or like account that you want to make sure you maximize your contribution? Summer is a great time to run those numbers. Maybe there is room in the budget for some charitable donations. Do a little spring cleaning and find old items to donate to charity. Remember to get good receipts.
Review your portfolio
Make sure you are paying yourself and making your money work for you instead of against you. Have a meeting with your financial advisor and make sure your investments meet the appropriate risk factors; you may find this annual tune makes a big difference.
Look into HSA or like plans
With the new requirements on health insurance, you will hear many people complaining about the hike in premiums. It may be in your best interest to get a health savings account (HSA) for the tax benefits as well as the yearly savings on medical items too expensive to pay out of pocket.
Get organized
If you have a business and don’t already have Quickbooks, now is a great time to take a seminar and learn one of these accounting programs. Accounting software can provide a world of information on how your business is running and also make things easier on your accountant come tax time. If you are an individual taxpayer, start organizing your receipts and making sure you are keeping organized and appropriate records.
Don’t let summer pass you by without putting in some work on your finances. If you take a little time each day to be proactive, your tax season should be much easier and you may wind up with a nice refund.
We live in a pay as you go tax system. If you are a W2 employee, your taxes are taken out with each paycheck. If you receive 1099s or own a business you should make estimated tax payments quarterly. However, things do not always work out this way. This year we have an expected 28-million taxpayers who will owe for the 2015 tax return. What can you do if you can’t afford to pay? Well, an ETP might be a great option for you.
Do you need a little more time to gather the money?
If you are unable to pay your IRS balance by the due date and have received a notice of deficiency or similar notice, you may be eligible for getting an extension of time to pay. That’s right! There is a program out there that gives you a FOUR MONTH EXTENSION TO PAY!! If you need a little more time than that, this may still be a good option for your situation. Using an ETP along with another alternative arrangement to start streamlining payment arrangements could be just the tool you need to resolve your IRS balance.
Pros of using an ETP
Important!
Keep in mind this does not stop the interest and penalties from hitting your account, it just provides you some extra time to get the balance owed. Sometimes taxpayers would rather pay around 4% just to have some breathing room. Also, after you get the balance down, if your record is clear for the last few years you may be eligible to abate some of the penalties.
If you have questions about this or other alternative arrangements on an IRS or State bill, please feel free to call (410) 727-6006 or click the below button to discuss your eligibility.
If you are like many taxpayers you are bombarded day in and day out with ads targeting a select group of individuals. You may hear “Settle for pennies on the dollar” , The “Fresh Start” Program, or most commonly known the Offer in Compromise.
But what does all of this mean? Read more
1099 and Small Business Owners Beware!
The IRS has been complaining of cut backs and being short staffed for years. For the first time in years, they “found” some money in the budget. Due to workers ageing out of the system and other departures, John Koskinen, IRS Commissioner, states they now have the funds in their budget to hire 700 new employees.
What does this mean for me? Read more
Online Poker Players: Beware!
Most taxpayers that are into gambling action are aware of gambling wins and losses and how they are reported on a tax return. What you may not be aware of is a new case that may set precedence to require you to report funds in foreign gaming accounts. Read more
Admit it, the word AUDIT is very scary. No one wants to receive a letter that says: Hey! we are not so sure about what you claimed on your return, we’d like to “take another look.” Now the burden of proof is on YOU! Did you keep great records? If so, will they stand up to the heavy standards of IRS? Do you understand the tax law or did someone else help you with the return? No matter the answers to those questions the fact still stands, the IRS has your number.
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