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It’s the beginning of the year and the IRS is already sending out 3 types of notices. In January, the IRS is sending taxpayers three letters, known as letters 4869C, 6419 & 6475. Letter 4869C is the taxpayer IP PIN (Identity Protection PIN) to be used for all e-filed returns in 2022. Letter 6419 identifies […]

An informational return is a tax form a business fills out telling the IRS and state governments that a taxpayer earned a type of income and certain types of expenses/payments. Types of income can range from dividends, interest, wages, self-employed income, rental income, income from education savings programs, cancellation of debt and more…. Some of […]

Yes, it is the beginning of November, and the leaves are changing color and the air is getting crisper. The end of 2020 is fast approaching and that means business owners will need to start thinking of getting their bookkeeping cleaned up or STARTED!!! Unfortunately, this is where many problems start for business owners when […]

Can I sell or refinance my house and/or assets with an IRS tax lien filed against it?  YESSS!!!!! First, a tax lien is a lien against the taxpayers physical and financial assets. It is like a blanket, it covers everything, not just one thing. It is not meant to prevent the sale/refinancing of assets. It […]

Now that you have filed your tax returns and have discovered that you owe the IRS, how do they collect the money? First the IRS will send you a bill with the tax owed based on your return and with any applicable penalties and interest. If you don’t pay the first bill, the IRS will […]

In my previous blog, I talked about taxpayers who haven’t filed in a several years. Now you are ready to file only to find out that you have misplaced some of those tax documents, you can’t remember when the last time you filed last, or maybe you can’t locate the previous tax returns that you […]

I don’t have to file a tax return this year!  Sweet!! My tax preparer said I don’t need to file a tax return this year, so why should I?  Some people don’t need to file because their income is lower than their standard deduction, but here are a few reasons why you should file for […]

I have a question for you! Who has not filed their taxes in a few years? If you are thinking “ME!”, keep reading, because here are some reasons to file: • If you need a bank loan, the bank will want to see previous year’s tax returns. • If you have a refund due, you […]

Hi Everyone, Here is my first blog post with many more to come. Did you know that there are more than 10 million taxpayers who have not filed their previous year’s tax returns in over a year?! That is right, some taxpayers have not filed their 2019 tax returns and previous years before that. We […]

The Internal Revenue Service announced another expansion of its “Fresh Start” initiative by offering more flexible terms to its Offer in Compromise (OIC) program that will enable some of the most financially distressed taxpayers to clear up their tax problems and in many cases more quickly than in the past. “This phase of Fresh Start […]

The number of electronic filing and payment options increases every year, which helps reduce your burden and also improves the timeliness and accuracy of tax returns. When it comes to filing your tax return, however, the law provides that the IRS can assess a penalty if you fail to file, fail to pay or both. […]

Income that you receive for the rental of your vacation home must generally be reported on your federal income tax return. However, if you rent the property for only a short time each year, you may not be required to report the rental income. Below are tips on reporting rental income from a vacation home […]

Question:   Do tuition and related expenses paid to attend a private high school qualify for an education credit? Answer:   No. Expenses paid to attend a private high school do not qualify for an education credit because a high school is not an eligible educational institution.In general, an eligible educational institution is an accredited college, university, […]

If you’re self-employed and paying for medical, dental or long-term care insurance, the IRS wants to remind you about a special tax deduction for some insurance premiums paid for you, your spouse, and your dependents. Starting in tax year 2011, this deduction is no longer allowed on Schedule SE (Form 1040), but you can still […]

Question: What is a split refund? Answer: A split refund lets you divide your refund, in any proportion you want, and direct deposit the funds in up to three different accounts with U.S. financial institutions.   Question: What are the benefits of splitting my refund? Answer: By splitting your refund, you get the convenience of […]

You are required to file a federal income tax return if your income is above a certain level, which varies depending on your filing status, age and the type of income you receive. However, some people should file even if they aren’t required to because they may get a refund if they had taxes withheld […]

  Question:   If I, a sole proprietor, pay personal expenses out of my business bank account, should I count the money used as part of my income? Can I write these expenses off? Answer:    You would include the money used to pay personal expenses in your business income when it was earned by your […]

Along with the lazy, hazy days of summer come some extra expenses, including summer day camp. But, the IRS has some good news for parents: those added expenses may help you qualify for a tax credit. Many parents who work or are looking for work must arrange for care of their children under 13 years […]

If you are facing financial difficulties and struggling to meet your tax obligations the IRS can help. As the tax filing season begins, in addition to new credits, deductions and exclusions, the IRS is taking steps to help people who owe back taxes. Here are some areas where IRS can help: • Added Flexibility for Missed […]

Many individuals have home offices, but are unclear on whether or not they can claim these home offices as tax deductions. The IRS explicitly states that home offices can be deducted from your taxes. However, they are also very clear that this home office can only be used for work-related purposes. It must also be […]

The estate tax, as of July 2010, is not currently in place. If individuals with large estates die, leaving their riches to their heirs, their heirs will not have to pay a dime to the IRS. This is in contrast to the previous rates, which have reached as high as 45%. The estate tax expired […]

Included in the recent health care reform bill passed by Congress and signed by President Obama was a new rule regarding 1099 forms. As it currently stands, businesses must file 1099 forms for any service provided by a company, freelancer, or sole proprietor in excess of $600.00. However, this changes in 2012 with the new […]