The Tax Answers Advisor: Recent Episodes
Marcelino Dodge, EA
The tax world is always revolving and changing. How does the taxpayer keep up with both individual tax and business tax changes? The year 2020 saw thousands of pages added to the tax code. We help our listeners to understand the importance of using a licensed, credentialed tax preparer, such as an Enrolled Agent (EA), to prepare their individual tax returns and their business tax returns. You will learn how a proactive approach to rapidly changing tax laws will help you to pay the least amount of income tax possible. You’ll learn by working year-round with an Enrolled Agent. You can maximize both your tax deductions and your tax credits. Together we can help you create tangible strategies to achieve financial success and increase cash flow. By strategic planning and implementation, you can keep tax liability down in the future no matter what Congress does. The Tax Answers Advisor can be heard every Thursday at 9 AM Pacific Time on the VoiceAmerica Business Channel.
As one long tax seasons continues (long because April 18 is the filing deadline), many taxpayers have filed, other have yet to file, some will file an extension, and some will not file at all. Where are you in this mix? Hopefully, you have already filed your tax return or you soon will file your tax return. But some 15 million plus taxpayers have overdue prior year tax returns and it does not look good for them to get current anytime soon. What are some key points to remember if you have not yet filed? What are some options you have if you have years of overdue tax returns and back taxes due? Why is it important to be tax compliant? What if I owe taxes because of a former spouse? Look for these answers and so much more on the next Tax Answers Advisor.
Is it possible to think like a bank and take control of your finances and taxes? With guest Sarry Ibrahim, I will discuss how taxpayers with properly structured life insurance can take control of finances and actually think like bank for a number of financing options. With these strategies many taxpayers can save on taxes now and into retirement. Learn how you can practically be your own bank if you are considering investing in real estate or other investments. Many use these strategies to purchase rental real estate to provide and additional stream of revenue. This is a very informative and thoughtful program.
How many times have your heard late night ads on satellite radio stating how easy it is to eliminate your back tax debt? “Just contact us to get rid of your back taxes.” What does it really take to properly handle back taxes? How do you qualify for an offer? Is there really an IRS Fresh Start Program? So many more questions can be asked on this topic. With guest Eric Green we answer these questions and provide the guidance on doing it right with a properly trained tax professional. You can get back tax returns filed and if you qualify get back taxes reduced or set up payment arrangements. This program helps you to get your tax debts settled correctly.
Each tax season has its own unique challenges. In 2022 working the 2021 tax year, I encountered several first time experiences after 20+ years of tax preparation. There were many provisions that only applied to the 2021 tax year. How I kept it all straight is truly a miracle. As I spoke to new clients and to returning clients, I come to understand how challenging the past couple years has been for them. As observations of the 2021 tax year are shared, I will be providing reminders of how the planning for 2022 is important as the rules have changed with many 2021 tax rules gone for good. As always the recommendation to work with a tax professional not just a tax preparer will be stressed to help you the taxpayer to always pay only the necessary tax.
The tax world is constantly in utter flux. The years 2021 and 2022 were no different. What you could take in 2021, you cannot take in 2022. An expanded Child Tax Credit in 2021 is not available in 2022. What other adjustments do you have to plan for as the year comes to a close? I will cover some IRS notes, make some recommendations for the end of year, and review some big adjustments you should expect in your refund and other areas of your tax return for the year. You will receive the best information that will help you make good tax moves before the end of the year, that way when tax time comes, it will be less taxing.
Soon you will be receiving your W-2 and some bank interest. Thinking you have all your forms you need to go to your tax professional and have your taxes filed. Then, the day after your tax return is sent to the IRS a form 1099 with the letters “NEC”, “MISC”, “K”, or some other letter appears in your mailbox. What do you do? Is there anything you need to do? Should you have been expecting the form? Is the form correct? As these questions pass through your mind you think back to earlier this year and finally figure out what could have generated the 1099. But, what do you do now? Having a tax professional, not just a tax preparer or a “tax expert”, working with you could have prevented this unexpected surprise. Learn how to deal with these now and how to prevent such surprises in the future.
Working in an industry where tipping is common? Do you depend on tips to make a living and support your family? Are you aware the income received via tips, including cash received is taxable income? Is your employer requiring you to report your tips? As an employer what is your responsibility with regard to tips? What exactly is a tip? I will cover what qualifies as a tip, what are cash and non-cash tips, why it is important to report tips, and so much more. Those receiving tips can make a good income with good customer service. Just as everything else is with your income, the tax man wants his share. Properly reporting tips can be a benefit not only now, but also down the road when it is time to retire.
To correctly calculated their gains or losses for tax purposes, taxpayers must know their basis in stocks, gifts received, inheritances, and so much more. For shareholders in an S-Corporation, LLC members, and partners in a partnership, knowing and tracking their basis in the business entity is absolutely essential, especially in years when the entity has a pass through loss. How do taxpayers keep track of their basis? For those who are shareholders, members, or partner in an entity, who is responsible to track the individual’s basis? I will provide a broad overview about basis for tax purposes. Taxpayers need to have accurate basis calculations for the proper capital gains or capital loss calculations or to determine if they can take a pass through loss from a business entity. Having this documentation clear and understandable will be absolutely essential should the IRS come knocking.
Tax scams. Imitators of the IRS. How creative can they get? It seems every month more news from the IRS is released on the latest attempts to access your personal information. With emails, phone calls, and now text messages scammers are looking to get your information for who knows what. The best defense is to be aware and be watchful. I will inform you of what to avoid clicking or tapping on to protect your information. You can report scams to phishing@irs.gov.
Are your tax records ready for a natural or man-made disasters? The recent hurricanes remind us of just how important it is to maintain backups of important documents. I will make recommendations on how to prepare for disasters. Should you be a victim of a disaster you can at least have your financial house in order.
Been wondering what is taking your federal refund so long to arrive by check or direct deposit? Then, finally you receive a letter stating that your refund has been applied to your spouse’s overdue tax debt, defaulted student loan payment, or past due child support. Will you be able to recover any of your federal refund on the withholding from your W-2's or refundable tax credits? Yes, you may qualify as an Injured Spouse and get your portion of the refund. Or, did your spouse filed a tax return that you signed without reviewing only to learn later that you are now also responsible for a large tax debt from income that you knew nothing about? Is there tax relief available? Yes, you may qualify as an Innocent Spouse. We will discuss how you can file to your federal refund as an Injured Spouse and what needs to be done receive Innocent Spouse Relief. You do not to be penalized on taxes for your spouse's failing to be compliant with their taxes or other delinquent obligations.
Have you been waiting for the checks for your dependents under 17? Are you anticipating another bigger than normal refund? The Child Tax Credits for 2022 are not the same as 2021. Have you included this change in your tax planning for 2022? Is your dependent still being claimed on another return before you get to file? Is there a way you can claim your dependent before someone else does? Will the dependent day care credit be just as lucrative in 2022 as 2021? Is there really something in common between Dependents and Home Energy Credits? I will discuss some of the tax provisions in the Inflation Reduction Act. A few credits take effect in 2022. Others are not effective until 2023. Some credits are rather unusual. These are just some of the topics covered on this week’s Tax Answers Advisor.
First created in 1884 to prepare claims against the government for the American Civil War, Enrolled Agents have been at the forefront of representing taxpayers who need the extra help with personal and business taxes. But, what exactly is an Enrolled Agent? Many taxpayers have never heard of an Enrolled Agent, much less even know what the initials “EA” mean. This program will help you to understand what an Enrolled Agent is, what is required to become an Enrolled Agent, and why it is beneficial to use an Enrolled Agent to prepare your tax return. I will explain my personal journey to join this exclusive group of tax professionals.
Have you received an IRS payment due notice? Have your tried to call the IRS to get a question answered? Are you still waiting for your 2020 refund? As the IRS recovers from the COVID-19 pandemic, the Service is facing many challenges, including how to balance enforcement while at the same time providing taxpayer service. Many taxpayers are frustrated with the long hold times and even being disconnected. Millions of taxpayers are still waiting for their 2020, and some their 2019, tax returns. I will discuss with the former National Taxpayer Advocate of the United States, Nina Olson, how the IRS is possibly going to fix these issues and what taxpayers can expect over the next few months.
https://www.taxpayer-rights.org/
Been keeping up with the news of a recent bill in Congress that could add more than 80,000 agents to the IRS? If you are behind on filing or are receiving notices from the IRS, you could have big reason for concern. Do you have a drawer full of IRS notices? Have you seen the advertisements from companies claiming they can reduce or your eliminate your IRS tax debt? Is it really as easy as the claims state to reduce your tax debt? What is an IRS lien or levy? What does is take to qualify for an offer-in-compromise? Wait! An offer-in-compromise is not automatically accepted? These are just some of the topics covered on this week’s Tax Answers Advisor.
Many employers are looking for ways to save money. Is it wise to try and pay individuals doing work for you as contractors? Or, is it better to just pay workers as employees? Is this a good idea to save some money? The Internal Revenue Service and many state departments of labor have tests that determine whether an individual is an employee or an independent contractor. I will discuss these tests and what the potential consequences could be for businesses that fail to properly classify and pay their employees. The costs to your business of not properly classifying your employees can be very devastating. This is not a chance that businesses should take.
Working from home as an employee? Are you operating your business from a home office? What qualifies as a home office? What requirements do you need to meet to take a deduction on your home office? What happens if you sell your home after having an office in the home? These are all very important questions that must be answered for taxpayers who are working from their home. I will cover the difference in working from home as an employee and working from home with your own business. I will also clarify what happens when you sell your primary residence after taking some deductions for the business use of your home. This and so much more will be discussed on the next Tax Answers Advisor.
How safe is your personal or business information with your tax professional? Are you considering the security of your private, personal information when selecting the person or organization to prepare your personal or business tax return? Does your tax professional have a Data Security Plan? What kind of online security does a tax professional employ in their office? All importance questions to consider before selecting a tax professional. I will discuss the importance of software security with Alvion Legall of ABL Computers. We will discuss his new book Cyber Storm and how easily hackers can fool any of us.
Each tax season has its own unique challenges. In 2022 working the 2021 tax year, I encountered several first time experiences after 20+ years of tax preparation. There were many provisions that only applied to the 2021 tax year. How I kept it all straight is truly a miracle. As I spoke to new clients and to returning clients, I come to understand how challenging the past couple years has been for them. As observations of the 2021 tax year are shared, I will be providing reminders of how the planning for 2022 is important as the rules have changed with many 2021 tax rules gone for good. As always the recommendation to work with a tax professional not just a tax preparer will be stressed to help you the taxpayer to always pay only the necessary tax.
You received your W-2 and some bank interest. Thinking you have all your forms you go to the tax professional and have your taxes filed. Then, the day after your tax return is sent to the IRS a form 1099 with the letters “NEC”, “MISC”, “K”, or some other letter appears in your mailbox. What do you do? Is there anything you need to do? Should you have been expecting the form? Is the form correct? As these questions pass through your mind you think back to 2021 and finally figure out what could have generated the 1099. But, what do you do now? Having a tax professional, not just a tax preparer or a “tax expert”, working with you could have prevented this unexpected surprise. Learn how to deal with these now and how to prevent such surprises in the future.
Tax season is starting in less than a week. What can taxpayers expect? What can taxpayers do if they are still waiting for their 2020 refund? What challenges has the American Rescue Plan created for taxpayers and tax professionals? This tax season will again be unlike any tax season in the past. Selecting the correct tax professional is absolutely essential for you to get the calculations correct and to know exactly what you should be receiving in a refund or having to pay in taxes. Yet, how do you know what is needed to prepare your tax return? How do you select the right tax professional? Do you even need to go to a tax office? Virtual tax preparation is here for your health and safety. I will help you to navigate all these questions so you can make the right choice when choosing a tax professional, not just a tax preparer.
Still thinking the IRS is not moving on collections and enforcement? Though service in some areas my be slow, the IRS is ramping up enforcement for non-filers, criminal investigations, and trust fund penalties. Eric Green of the Tax Rep Network and managing partner in the law firm Green & Sklarz LLC will explain the current status of IRS collections and enforcement. He will also discuss the options noncompliant taxpayers have if certain filing deadlines are missed. Taxpayers who have unpaid taxes or who are non-filers may thinks the waters are calm now, they will soon be in for a big awakening. We discuss the importance of being proactive in solving your tax problems.
Since the Great Recession the New Economy has created challenges for both taxpayers and the IRS. More and more taxpayers have jumped into the New Economy without knowing the issues about income reporting and allowable expenses. The IRS is just starting to catchup and taxpayers better be ready. Many taxpayers are buying virtual currency, then using virtual currency to buy products and services. What effect does the purchase and sale of virtual currency have on the tax return? Is using virtual currency a reportable event for tax purposes? What is the IRS doing about the growth in use of virtual currencies? Marcelino will discuss these vital tax questions about virtual currency along with other parts of the New Economy that affect your personal tax return.
Many taxpayers feel there are great tax advantages to having a rental home or two. Yes, there may be some tax advantages, but there are also risks if the rental property is not setup correctly from the beginning. How are repairs and upgrades on the rental property to be handled? What if instead of renting an entire home, you want to rent out a room in your home? Are there differences for tax purposes? Could taxpayers renting out a room be liable for self-employment tax? Are you ready for the coming 1099-k’s? Be better prepared and understand the differences between renting out an entire home or renting out a room.
Questions! Questions! Questions! The questions never end when it comes to personal and business income taxes. As the 2022 tax season approaches, we have accumulated even more common questions individuals and businesses ask. When does an income tax return has to be filed? Are the stimulus checks income? Are the Advance Child Tax Credit payments taxable income? So many questions individual taxpayers are asking. Business and self-employed taxpayers are asking even more questions such as: What are business meals? What is self-employment tax? Should the business take bonus depreciation or depreciate over time? These and so many more questions will be covered this week on The Tax Answers Advisor.
To correctly calculated their gains or losses for tax purposes, taxpayers must know their basis in stocks, gifts received, inheritances, and so much more. For shareholders in an S-Corporation, LLC members, and partners in a partnership, knowing and tracking their basis in the business entity is absolutely essential, especially in years when the entity has a pass through loss. How do taxpayers keep track of their basis? For those who are shareholders, members, or partner in an entity, who is responsible to track the individual’s basis? I will provide a broad overview about basis for tax purposes. Taxpayers need to have accurate basis calculations for the proper capital gains or capital loss calculations or to determine if they can take a pass through loss from a business entity. Having this documentation clear and understandable will be absolutely essential should the IRS come knocking.
In 20 plus years of preparing income taxes, I cannot count the number of personal income tax returns I have had to correct after the taxpayer completed their own tax return using “free” tax preparation software. The well meaning taxpayer relies on the interview questions to help them to complete all the correct forms with all the correct entries on the forms. When errors result on the tax return, the taxpayer is responsible, not the tax software used. There is no such thing as “I relied on the tax software” as a defense with the IRS. Such errors often occur when taxpayers are self-employed, have rental properties, or operate a farm. One of the most missed and overlooked deductions is depreciation. What is depreciation? Can this software mistake be fixed? How costly can it be?
Has your business lost its traction? Are you feeling like hard work and determination are no longer enough to sustain and grow your business? Is it possible to remove the typical frustrations to help you gain momentum without getting stuck in the details? How does tax planning work into re-energizing your organization? Today we will discuss how running the Entrepreneurial Operating System can help you use data to check the vital signs of your business, identify key processes on your unique “way” of doing business, and making your vision a reality. Learn how you can separate yourself from your business and build your business into a self-sustaining entity powered by a strong system and not just your determination.
Are you considering selling your business? Is buying a business in your near future? Have you spoken to a tax professional about your ideas? Before moving forward on either a purchase of a business or the sale of an existing business, talking to tax professional can save you thousands of dollars of tax. With the proper planning and the right moves you can successfully buy the business of your dreams or sell your successful business with the tax implications already settled. Should I pay cash, get a commercial loan, or use owner financing with an installment sale to buy a business. What the best way to sell, payment in full or an installment sale? We will endeavor to answer these questions and so much more to make either your purchase of a business or sale of a business as least taxing as possible.
In the constantly changing tax world, the taxpayer can become a business and not even know it. Have you received a 1099 in the past? Did you know the IRS can then classify you as a business? Have friends and family offered free tax advice? Too often such advice from unqualified individuals can cost you thousand’s in lost deductions and cause a large tax bill. Are you an entrepreneur looking to maximize the tax benefits? What tax strategies and tax systems can you use to save big dollars in taxes and help you keep more money in your pocket? On this program we discuss how business setup and the right strategies can save you hundreds and even thousands of dollars in taxes. We will cover topics including the best business structures, tax strategies the IRS does not want you to know, and how to avoid being audited.
Have you received an IRS payment due notice? Have your tried to call the IRS to get a question answered? Are you still waiting for your 2020 refund? As the IRS recovers from the COVID-19 pandemic, the Service is facing many challenges, including how to balance enforcement while at the same time providing taxpayer service. Many taxpayers are frustrated with the long hold times and even being disconnected. Millions of taxpayers are still waiting for their 2020, and some their 2019, tax returns. I will discuss with the former National Taxpayer Advocate of the United States, Nina Olson, how the IRS is possibly going to fix these issues and what taxpayers can expect over the next few months.
https://www.taxpayer-rights.org/
Since 2018 more taxpayers are increasingly using do-it-yourself tax software. What many do not realize is that these same DIY software companies also provide software to tax professionals. For many people though this can be problematic, as just recently I had to amend a tax return for a new client who initially completed their return using one of these DIY software companies. For tax professionals to compete on this very tilted playing field they need to focus on making the personal connections that big corporations cannot. I started this process years ago by striving to use only companies, such as Taxware Systems, that do not compete against me by offering a similar product to my tax and accounting clients. My focus is on working with clients year around with tax planning and other financial strategies, so my clients can get the best overall financial results. Is your tax professional standing out by using their expertise to help you with complex tax problems that just cannot be handled by DIY software? Or, do they just do your taxes? Today, we discuss DIY software vs. the tax professional, a sizzling hot topic that is so important for both tax professionals and taxpayers.
Ms.Tiff Tilton asks tax related questions for various Cash Tracks Financial clients. A wide variety of topics on individual and business taxes will be discussed. We will cover topics such as: What makes the Head of Household filing? Taxable versus non-taxable income? Difference between a W-2 and a 1099? And what documents are needed to file taxes? Why is it important to discuss these topics now? Everyone needs to be ready to file taxes and to plan for tax reduction. The importance of a tax professional such as an Enrolled Agent (EA) is more important now ever before with all the possible tax changes in the next few months. Having an Enrolled Agent assisting you year around will help you reach your goals with a personal financial review and proactive tax planning.
Do you understand the type of business you have? What are common mistakes that business owners make? Do you have an exit strategy? I will discuss with Michelle Seiler Tucker these questions and additional topics such as the different types of buyers, the 6 P Method, and the business life cycle. Also, how do you evaluate a business and create bidding wars with buyers? This will be a thrilling, informative hour on selling a business and doing it right with a leading authority on buying, selling, fixing, and growing a business.
With your business financial and tax landscape constantly changing, who can help you to stay on track to reach your financial goals? Who is uniquely positioned to help you identify your key numbers and help you to build a success business? We will discuss why it is important to locate and utilize a licensed tax professional such as an Enrolled Agent (EA) who will not only do a great job on your tax return, but also will be available all year to help you achieve better results. Learn how having such great service from your tax professional will allow you to devote more time and energy to your business.
The number of businesses that fail in the United States is staggering. How does a business survive the two, three, five, and 10 year time horizons? Building relationships will help to empower you to feel confident about business growth. We will discuss strategies small businesses can use to safeguard and to hedge their bets, during start-up or to get past the two-year hurdle for sustainable growth. Learn how small businesses can be resurrected after stalling or losing market share. Do large companies have an advantage? Can even a small company use outsourcing? How do taxes come into all this? We will discuss how small business can compete and thrive by simply changing their thinking and developing the right relationships.
What is needed for you and your business to pay minimal taxes and avoid an audit? Wanting to start your own business, but unsure where to start. The selection of the type of business entity can either help or hurt your tax situation now and into the future. We will discuss how you can make the best entity selection for your tax situation. Once you select the proper entity, then by using legal tax avoidance strategies we will help you to keep more of the money you work so hard to earn. The discussion will then move into the importance of audit proofing your business with the proper documents for everything claimed on the return.
Been wondering what is taking your federal refund so long to arrive by check or direct deposit? Then, finally you receive a letter stating that your refund has been applied to your spouse’s overdue tax debt, defaulted student loan payment, or past due child support. Will you be able to recover any of your federal refund on the withholding from your W-2's or refundable tax credits? Yes, you may qualify as an Injured Spouse and get your portion of the refund. Or, did your spouse filed a tax return that you signed without reviewing only to learn later that you are now also responsible for a large tax debt from income that you knew nothing about? Is there tax relief available? Yes, you may qualify as an Innocent Spouse. We will discuss how you can file to your federal refund as an Injured Spouse and what needs to be done receive Innocent Spouse Relief. You do not to be penalized on taxes for your spouse's failing to be compliant with their taxes or other delinquent obligations.
The year 2021 is probably the most important year ever to have your qualified child or children claimed on your 2020 tax return. But, who is my qualifying child? What if parents are divorced? Who claims the children on their tax return? What can I do if a my child is claimed on a tax return before I filed my 2020 tax return? The answer to these questions are essential with the passage of the American Rescue Plan Act in March 2021. There are new rules for 2021 only for the child tax credit, and how you filed your 2020 tax return will affect who receives the advance child tax credit. These advance payments have already started and will be reconciled on the 2021 tax return filed in 2022. Get up to speed on all the details and where you can get more information as the with the advance Child Tax Credit payments already being sent out.
How can business owners focus on their strengths and not their weaknesses? Too often, business owners believe the lie that they need to improve their weaknesses so they become well rounded individuals. For the well meaning business owner this is a trap. Many times a business owner, who is good at selling, innovating, building relationships, etc. will get so hung up on doing their own accounting, tax, payroll, and human resources that they become a master of none. Their core business suffers, they lose opportunities, and they lose money because they are not doing what they do best. Today we discuss why the small to medium size business owner needs to lean on the tax, accounting, payroll, and human resources experts. By utilizing these experts, they can then focus on what they do best to grow their business quickly!
Are you considering selling your business? Is buying a business in your near future? Have you spoken to a tax professional about your ideas? Before moving forward on either a purchase of a business or the sale of an existing business, talking to tax professional can save you thousands of dollars of tax. With the proper planning and the right moves you can successfully buy the business of your dreams or sell your successful business with the tax implications already settled. Should I pay cash, get a commercial loan, or use owner financing with an installment sale to buy a business. What the best way to sell, payment in full or an installment sale? We will endeavor to answer these questions and so much more to make either your purchase of a business or sale of a business as least taxing as possible.
Have you received an IRS payment due notice? Have your tried to call the IRS to get a question answered? Are you still waiting for your 2020 refund? As the IRS recovers from the COVID-19 pandemic, the Service is facing many challenges, including how to balance enforcement while at the same time providing taxpayer service. Many taxpayers are frustrated with the long hold times and even being disconnected. Millions of taxpayers are still waiting for their 2020, and some their 2019, tax returns. I will discuss with the former National Taxpayer Advocate of the United States, Nina Olson, how the IRS is possibly going to fix these issues and what taxpayers can expect over the next few months.
https://www.taxpayer-rights.org/
Many feel that their business is small time and will be ignored for cyber attacks. Is this an accurate conclusion? Is your anti-virus and anti-malware software keeping you completely safe? You may be developing a false sense of security and complacency about the security of your network. Hackers can enter your network and you may know ever know it. They can gain access and stick around for months in your system to learn more about you, and then launch their ransom attack. Understanding how you can be vulnerable knowing what you can do to protect your data is essential and can save you hundreds of thousands of dollars. Be better prepared for your business and know what security measures your tax professional should be taking to protect your data.
Do you understand the type of business you have? What are common mistakes that business owners make? Do you have an exit strategy? I will discuss with Michelle Seiler Tucker these questions and additional topics such as the different types of buyers, the 6 P Method, and the business life cycle. Also, how do you evaluate a business and create bidding wars with buyers? This will be a thrilling, informative hour on selling a business and doing it right with a leading authority on buying, selling, fixing, and growing a business.
The tax implications of divorce are complicated and have the potential to be very costly. After divorce the both individuals could be left with large tax liabilities and more confusion as to how to file their tax returns. What is my filing status without dependent children? What is my filing status with dependent children? Who is the custodial parent? What tax credits are available to custodial and non-custodial parents? How is alimony treated for tax purposes? These questions and more will be discussed to help if you are having to cope with the tax challenges of divorce.
With your business financial and tax landscape constantly changing, who can help you to stay on track to reach your financial goals? Who is uniquely positioned to help you identify your key numbers and help you to build a success business? We will discuss why it is important to locate and utilize a licensed tax professional such as an Enrolled Agent (EA) who will not only do a great job on your tax return, but also will be available all year to help you achieve better results. Learn how having such great service from your tax professional will allow you to devote more time and energy to your business.
Now is the time to stop and see where you stand for 2021. Is your tax professional available to review your numbers to help you pay as little tax as possible for 2021? How much income tax withholding is on your last paystub? Are you reviewing your paystubs? What is the profit and loss of your business year-to-date? Tax planning year around is vital for your personal and business success. I will discuss key areas you need to review to help plan for the remainder of the year, such as making estimated payments, contributing to a retirement plan, or putting money back into the business. We can help determine what is best for your situation.
The year 2021 is probably the most important year ever to have your qualified child or children claimed on your 2020 tax return. But, who is my qualifying child? What if parents are divorced? Who claims the children on their tax return? What can I do if a my child is claimed on a tax return before I filed my 2020 tax return? The answer to these questions are essential with the passage of the American Rescue Plan Act in March 2021. There are new rules for 2021 only for the child tax credit, and how you filed your 2020 tax return will affect who receives the advance child tax credit. These advance payments start in July and will be reconciled on the 2021 tax return filed in 2022. Get up to speed on all the details and where you can get more information as the first advance payments will be sent out in the next few weeks.
For many years you contribute to IRA’s, 401k’s, annuities, and so on in the hope of having a comfortable retirement. The majority of these plans are all taxed as you take distributions in your retirement. You may feel that is okay, thinking that your Social Security Retirement will be tax free. Did you realize that withdrawals from various retirement accounts can actually make up to 85% of your Social Security Retirement payments taxable income? What alternatives are available to prevent your Social Security Retirement from becoming taxable income? How can you have tax free income in retirement? This show will discuss alternative retirement options available now to help you plan for a comfortable less taxing retirement.
What is the Research and Development Tax Credit? Is your small business doing research or some other type of activity that would qualify for this tax credit? What types of businesses are eligible to claim the credit? We will discuss these questions and much more, including what the Research & Development Tax Incentive is, the background, what activities qualify, and the best industries to qualify. If you missed taking this credit, we will discuss the necessary steps to apply for the credit for open tax years. The R & D tax incentive is underutilized by small business. We will help you to use this power strategy to create a legacy of wealth.
We have all heard the commercials asking, “Do you owe $10,000 or more to the IRS?” Or, you may wonder “What is the IRS really doing with collections and enforcement?” Though it may be calm now, taxpayers who have unpaid taxes or who are non-filers will soon be in for a big awakening. Eric Green of the Tax Rep Network and managing partner in the law firm Green & Sklarz LLC will explain the current status of IRS collections and enforcement. He will also discuss the options noncompliant taxpayers have if certain filing deadlines are missed. When should taxpayers start to prepare for this downpour of IRS enforcement action? We will answer this and many other questions about the Internal Revenue Service’s coming soon to collect taxes from non-filers and taxpayers with unpaid taxes.
Small businesses with websites could be subject to legal action if their website is not readable by the blind. Around the country small businesses are receiving demand letters for payments of $10,000 for legal settlements if their website cannot be navigated by the blind. Small businesses cannot afford to pay such legal settlements or the legal costs to defend themselves. David Steckelberg of Internet Access for Disabled Americans will discuss how a small business can protect itself from this very real threat. Learn why it needs to be done and how to have your website compliant with the American with Disabilities Act. The added bonus is the receiving a tax credit not once but annually.
Investing in virtual currency or cryptocurrency has caught the attention of the Internal Revenue Service (IRS). Many have invested into virtual currency such as Bitcoin, Litecoin, Dogecoin, or a coin of some sort. What are the tax consequences of buying and selling virtual currency? Direction from the IRS on how to treat virtual currency on your tax return is still unclear. However, the IRS is fiercely committed to have taxpayers report their cryptocurrency gains on their tax return. For 2020 there is a crypto question on the front of the tax return. How is a taxpayer to answer this question? To answer this question, we will help taxpayers to understand how crypto activity affects their tax return.
For many years you contribute to IRA’s, 401k’s, annuities, and so on in the hope of having a comfortable retirement. The majority of these plans are all taxed as you take distributions in your retirement. You may feel that is okay, thinking that your Social Security Retirement will be tax free. Did you realize that withdrawals from various retirement accounts can actually make up to 85% of your Social Security Retirement payments taxable income? What alternatives are available to prevent your Social Security Retirement from becoming taxable income? How can you have tax free income in retirement? This show will discuss alternative retirement options available now to help you plan for a comfortable less taxing retirement.
What is the Research and Development Tax Credit? Is your small business doing research or some other type of activity that would qualify for this tax credit? What types of businesses are eligible to claim the credit? We will discuss these questions and much more, including what the Research & Development Tax Incentive is, the background, what activities qualify, and the best industries to qualify. If you missed taking this credit, we will discuss the necessary steps to apply for the credit for open tax years. The R & D tax incentive is underutilized by small business. We will help you to use this power strategy to create a legacy of wealth.
We have all heard the commercials asking, “Do you owe $10,000 or more to the IRS?” Or, you may wonder “What is the IRS really doing with collections and enforcement?” Though it may be calm now, taxpayers who have unpaid taxes or who are non-filers will soon be in for a big awakening. Eric Green of the Tax Rep Network and managing partner in the law firm Green & Sklarz LLC will explain the current status of IRS collections and enforcement. He will also discuss the options noncompliant taxpayers have if certain filing deadlines are missed. When should taxpayers start to prepare for this downpour of IRS enforcement action? We will answer this and many other questions about the Internal Revenue Service’s coming soon to collect taxes from non-filers and taxpayers with unpaid taxes.
The past 12 months has had historic changes in taxes for individuals and for businesses. The challenges for businesses have steadily increased and may even become more difficult in the current tax environment. How does a small business cope with all the COVID related changes to health benefits? How can a small business get better business deductions on family healthcare expenses? If a business does not quality for the Employee Retention Credit, how can a business save big on payroll tax? This program is for the small business owner to learn about the available options such as Health Reimbursement Accounts (HRA’s), which can be an affordable alternative to providing group health insurance.
Who to claim as a dependent on a tax return can range from being simple to very complicated. The IRS has tests that must be met for you to claim an individual as a dependent. For married parents claiming their children, it can be relatively simple. However, other situations, such as divorced parents, single parents, living with a grandparent, and other unusual circumstances can cloud who is eligible to claim a child. You must have the correct filing status. What do I do if the electronic filing is rejected because my dependent was claimed on another tax return? What tax credits can I claim for my dependents? Can I claim my child going to college? This episode will help to clear up the waters and answer these questions.
The past 12 months has had historic changes in taxes for individuals and for businesses. The challenges for businesses have steadily increased and may even become more difficult in the current tax environment. How does a small business cope with all the COVID related changes to health benefits? How can a small business get better business deductions on family healthcare expenses? If a business does not quality for the Employee Retention Credit, how can a business save big on payroll tax? This program is for the small business owner to learn about the available options such as a Health Reimbursement Arrangement (HRA’s), which can be an affordable alternative to providing group health insurance.
From a tax perspective, does the American Rescue Plan provide the promised help and relief? The tax changes in this bill are huge. Some apply to 2020 only and some apply to 2021 only. How can you understand the changes? What tax planning opportunities should your tax professional be considering? How are you the taxpayer affected in both 2021 and as we look ahead to 2022? I will explain the changes and the tax planning opportunities created by this most recent monstrosity of a bill that includes short term tax changes with some benefit now, but some benefits a year from now.
How safe is your identity? Everyday thousands of people have their identities stolen. Many times this stolen personal information is used to file fraudulent tax returns. What steps can you take to protect yourself? What should your tax professional be doing to protect your identity? What are the warning signs? What can you do if a fraudulent tax return is filed? I will discuss the actions you can take not only protect yourself, but also, the IRS resources available to help you fix any issues. This show is vital for the safety of your personal invitation.
With the talk about increasing the federal minimum wage, some businesses may consider trying the reclassify their employees. Is this a good idea to save some money? The Internal Revenue Service has tests that determined whether an individual is an employee or an independent contractor. I will discuss these tests and what the potential consequences could be for businesses that fail to properly classify and pay their employees. The costs to your business of not properly classifying your employees can be very devastating.
Do you have dreams of a better education? Are you aware the federal government has tax credits for qualified education expenses? Whether you are a traditional or non-traditional college student, the understanding of these credits and deductions is vital. Parents of current college students and parents of future college students need to understand how these credits work and what is needed to claim the tax credits or tax deductions. Learn how parents and students need to work together to maximize either the education credits or the education deductions.
With 2020 being unlike any year before, many taxpayers were affected by COVID-19. Because of government shutdowns, layoffs, and children having to be taught at home, many taxpayers had to take distributions from their retirement plans and IRA’s before age 59 ½. Is there a tax penalty for these distributions? Can the distributions be spread out over more than 1 year? Can the funds be redeposited into the retirement plan? These questions and many more that are on the minds of taxpayers this tax season will be covered and answered. If possible, I will also discuss the concept of how to have a tax-free retirement.
First created in 1884 to prepare claims against the government for the American Civil War, Enrolled Agents have been at the forefront of representing taxpayers who need the extra help with personal and business taxes. But, what exactly is an Enrolled Agent? Many taxpayers have never heard of an Enrolled Agent, much less even know what the initials “EA” mean. This program will help you to understand what an Enrolled Agent is, what is required to become an Enrolled Agent, and why it is beneficial to use an Enrolled Agent to prepare your tax return. I will explain my personal journey to join this exclusive group of tax professionals.
From adding machines to calculators to computers, the tax profession has changed tremendously. Now there are numerous do-it-yourself options, cloud storage, electronic files, and numerous other technological challenges. Is your tax professional using the available tools to provide great service and keep your information safe and secure? I will discuss how my tax business has been adjusting to keep up with constantly changing technology to better serve our clients across the nation. With increasing competition from do-it-yourself software, a tax profession needs to do more than just taxes. Learn about our systematic process that helps you to reach personal and business goals faster.
Are you non-filer? Do you know someone who has not timely filed their tax return in the last year or perhaps for years? Do you know of a corporation that has not filed its tax return? Each year millions of required tax returns go are not filed. According to the IRS, about $131 million is owed in back taxes, penalties, and interest. What should a taxpayer do if they are behind in filing? This episode is for you. I will discuss why timely filing a tax return is vitally important and how you as a taxpayer can be losing money with lost refunds and by paying additional tax, penalties, and interest.
With tax season officially starting in less than a week, companies are advertising aggressively to get you to use their software to prepare your tax return. But will their virtual tax professional be there in the summer to help you do any tax planning? Is tax preparation just the entering of some numbers or uploading your tax papers? I will discuss the importance of wisely choosing not only a professional to prepare your taxes, but a year around partner that will be available to answer your questions, help you to save on taxes all year, and help you to meet all your financial goals. Learn how you can avoid pitfalls and achieve your goals faster.
What is a business farm? What is a hobby farm? Farmers have unique circumstances for income and expenses. Some farmers are landlords who own farmland and farm assets, but do not farm themselves. I will help you to understand the difference between a hobby farm and a business farm. The discussion will include which form is correct for reporting purposes. The various forms of farm income will be discussed including resale of farm products, sales of farm products, and Ag program payments. I will cover the treatment of farm expenses including farm vehicles, necessary operating expenses, and depreciation. If there is time, I will include a discussion of net operating losses and farm income averaging.
Small businesses with websites could be subject to legal action if their website is not readable by the blind. Around the country small businesses are receiving demand letters for payments of $10,000 for legal settlements if their website cannot be navigated by the blind. Small businesses cannot afford to pay such legal settlements or the legal costs to defend themselves. David Steckelberg of Internet Access for Disabled Americans will discuss how a small business can protect itself from this very real threat. Learn how to have your website compliant with the American with Disabilities Act and receive a tax credit.
Coronavirus tax relief and the included Economic Impact Payments have created opportunities for criminals to create bogus schemes to attempt to take advantage of everyone. This year the IRS has focused on schemes that target taxpayers. With the possibility of more stimulus checks everyone is viewed as easy prey by these crooks. Now more than ever, we must all be on guard and be ready! With tax season starting soon, scams tend to increase with frequency as the criminals attempt to steal the money and personal information of taxpayers. I will discuss the dirty dozen scams and what is needed to protect yourself.
With the end of 2020 taxpayers think that their opportunity to get more deductions for their 2020 taxes is over. There are some deductions that can still be paid in 2021 and deducted on your 2020 tax return. I will discuss these available deductions for the 2020 tax return and how to implement for both individuals and businesses. Planning and implementing these programs in 2021 will be covered to help you be proactive in your 2021 tax planning. Learn how I can help you get to start these programs whether you are an individual or a business with or without employees.
In a few weeks we will start receiving W-2's, 1099's, and other tax documents. Where will you go to have your tax return prepared? What qualifications should you look for in a tax professional? How important should data security be in my search for a tax professional? These questions and several other important considerations will be discussed and answered to help you to choose wisely a tax professional to prepare your 2020 tax return. The answers to these questions are essential for you to know, because no matter who prepares your returns, you as the taxpayer signing the return are responsible for the information on your income tax return.
The world has been rapidly changing with the Internet and globalization. New business opportunities have been created with e-commerce. Many workers are now doing freelance work as both businesses and individuals are looking for personal services. With the new world of freelance work and the sharing economy, the IRS is paying attention. Apps such as Uber and Lyft have successfully connected people, but have also created new tax issues that will be discussed. I will discuss E-commerce sites such as Etsy and Ebay. Does the activity rise to the level of a business or is it hobby? I will help you to understand the difference. Even virtual currencies such as Bitcoin can have tax consequences. After this podcast you will be ready to deal with these issues.
When starting a business there are many decisions to be made. For tax purposes the choice of entity is vital to consider carefully. Consulting with us on what is best for your business will help you to choose wisely and minimize any tax consequences. Is being taxed as an S-Corporation the best for your business? Who can elect to be taxed as an S-corporation? These topics and more will be covered on this vital subject for all busines owners. I addition, I will discuss the advantages and disadvantage of selecting an S-Corporation for tax purposes.
Just like the Bill of Rights in the United States Constitution, there is a Taxpayer Bill of Rights for each taxpayer in their dealings with the Internal Revenue Service (IRS). Nina Olson, National Taxpayer Advocate once said, At their core, taxpayer rights are human rights. Learn in detail about each of these 10 rights that are due each taxpayer. I will discuss the organization that offers free help to taxpayers, Taxpayer Advocate Service.
In preparing for 2021 we need to take a quick review of the key changes from the Tax Cuts and Jobs Act, The SECURE Act, and the CARES Act. The year 2020 was not expected to have any changes in tax laws. However, with high unemployment and stimulus legislation passed during 2020, there were several adjustments that affect both 2020 and 2021. A quick review now will help you to finish 2020 with minimal tax liability. This episode will help you to be proactive for 2021 and future years based on current tax law.
What is required to claim business vehicle expenses? The tax rules for vehicles like most tax rules are a tangled web of complexity. This episode will simplify those rules making it easier to undertand and apply to your unique situation. I will discuss the options available and recordkeeping requirements. From allowable depreciation to claiming either standard mileage or actual expenses, you will have much clearer understanding of what you as the the taxpayer needs to do claim business use of your vehicle. Whether you operate a sole-proprietorship, LLC, or corporation, this show will help you to fully and accurately apply the tax rules for vehicles.
Each of us fears that letter from the IRS saying that we are being audited. The best way to reduce or relieve any fear is to be prepared. The keeping of detailed and accurate tax records is critical to the success of any business. These records will be very helpful in the event of either in person audit or an audit by mail. The business will have the necessary support for the positions taken on their tax return. I will discuss the important of accurate tax records, the types of tax records needed, methods to keep tax records, and relief the IRS provides if tax records are destroyed.
The world is becoming a smaller place. Sometimes an employer may ask you to work at a location outside the United States. Or, you may get a lucrative positive at a company located in a foreign country. Will taxes have to be paid to the United States and the country where I am working? Are there foreign earned income exclusions that I can take to reduce or eliminate double taxation? How do I qualify for these exclusions? What about if I am self-employed while working abroad? These questions and much more will be discussed and explained in this show
Were you laid off during the pandemic? Did you take advantage of the extra $600 a week of unemployment payments? Did you know the unemployment payments are taxable income? This last question may be one that some people did not realize or understand. But there is more than just an increase to your taxable income. The additional unemployment payments can also affect other parts of the tax return that you may not have even considered. You may even get a lower refund as a result of these payments. Tune-in to learn how to plan now to avoid that early 2021 surprise when you file your tax return.
No one can fully guarantee the security of personal information. What can be done is take all possible precautions to physically and electronically protect personal information. When you take your personal information to a tax professional, you expect them to only use your information for tax preparation purposes. You also expect that your personal information will be securely stored both physically and electronically. In this episode I will explain policies and procedures a tax professional should have in place to protect your data from both physical attacks and electronic attacks. I will make suggestions of what you can ask before even providing your information to a tax professional
Many times the accounting or tax professional is the last person an entreprenuer speaks to when starting a business. When in actuality the tax professional is first person you should consult when starting a business. This episode will discuss the importance validating your business idea, developing a business plan, and selecting a structure (Sole-Proprietorship, Corporation, LLC, or Partnership) for tax purposes. Proper planning and guidance in each of these areas will help you to succed in starting and operating your business. You will see the importance of proper accounting and payment systems, so you can take the right steps and make a profit faster.
Who to claim as a dependent on a tax return can range from being simple to very complicated. The IRS has tests that must be met for you to claim an individual as a dependent. For married parents claiming their children, it can be relatively simple. However, other situations, such as divorced parents, single parents, living with a grandparent, and other unusual circumstances can cloud who is eligible to claim a child. You must have the correct filing status. What do I do if the electronic filing is rejected because my dependent was claimed on another tax return? What tax credits can I claim for my dependents? Can I claim my child going to college? This episode will help to clear up the waters and answer these questions.
The federal income tax code is thousands of pages of confusion for taxpayers and tax professionals. The Tax Answers Advisor is here to help navigate through the these turbulent tax waters. Marcelino Dodge, an Enrolled Agent since 2006, introduces himself in this informative hour of plain tax information and tax planning for anyone wanting to understand their federal income taxes better. This episode covers some common tax myths, tax software, what an Enrolled Agent is, Marcelino's background, and much more. Tune in for the debut of the show that will help you to better understand federal income tax, The Tax Answers Advisor.