We’re right in the middle of tax season, and we’ve already covered tax filing tips for small businesses, and some myths about the IRS audit process. But while we’re in this tax season, it’s important to know that the decisions you’re making today will have an impact on how your taxes look next year. “Tax season” can be misleading because it puts a specific timeframe on when a lot of people are looking at their Read More
Reminders For Individuals Filing Taxes
Filing your taxes can be one of the most difficult things you do all year. For some, it is as simple as plugging in a W-2 and calling it a day. For others, especially those surviving off of tips and freelance work, it is much more complicated and intricate. It is a process that tends to reward those who are organized - and leave those who are not-so-put-together pulling out their hair. As you work on filing your Read More
Reminders For Small Businesses Filing Taxes
Tax filing season can be hectic for small businesses. It is the time of the year when really dotting your I’s and crossing your T’s will pay off massively. It is the time of the year when having your records compiled and accessible will help you in a huge way - and not having them close by will cost you time and effort. What should small businesses be focused on as they go through their tax filing process? Here are Read More
How To Reduce Your Monthly Payments to the IRS
Do you owe the IRS, and want to pay the debt in monthly payments? If you can fully pay the amount owed in six years (and up to ten years in some situations) it may be a straightforward process. But what if you cannot afford to pay that much? If these situations the IRS may approve a Partial Payment Installment Agreement. The IRS will look at your income and your monthly living expenses to determine your ability to Read More
5 Recordkeeping Tips for Freelancers and Side Hustlers
We’re all living in the gig economy, which has its advantages and disadvantages. It’s easier than ever to start a reliable stream of income to complement your bi-monthly paycheck. Maybe you already dove headfirst into your sole proprietorship. Regardless, the IRS wants to know certain details about your freelance income. It mainly wants to know who paid you—and how much. Unlike a W-2 job, there is no one else to Read More
IRS Using Unique Tool to Catch Alleged Crypto Cheats
All signs are pointing to a more aggressive posture by the IRS when it comes to investigating and prosecuting those who aren’t reporting their cryptocurrency transactions in accordance with federal rules. Kraken, the world’s fourth-largest crypto exchange, has been forced to turn over information on U.S. citizens involved in transactions totaling at least $20,000 from 2016-2020. The legal tool used by the IRS to Read More
CP2000: Notice of Unreported Income
Anything you get in the mail from the IRS besides a tax refund probably isn’t a letter you want to receive. One such letter is the Notice of Unreported Income, known to many as “CP2000.” The purpose of this notice is to inform you of the IRS’ assessment that you did not accurately report all of your income for the previous tax year. It is NOT a bill nor is it an ironclad assessment of tax obligations—including Read More
Did You Know the IRS Gives Out Badges?
It’s true. However, these badges aren’t something the federal agency gives out for a job well done. Rather, tax professionals refer to these designations as badges of fraud. As the name suggests, these badges are indicators to the IRS that a taxpayer committed an error with possible fraudulent intent. This puts the taxpayer in danger of having to pay civil or criminal fines. In the most severe cases, prison time is Read More
IRS Penalty Relief: First-Time Penalty Abatement
For all the doom and gloom surrounding “the IRS” — a mere mention of the federal agency is enough to make some taxpayers shudder — plenty of people might be surprised about how willing representatives are to help taxpayers settle tax liabilities and penalties. The IRS is typically more lenient toward taxpayers without a long rap sheet. In other words, you’re more likely to receive penalty relief for your first tax Read More
6 Common Deductions Taxpayers Overlook
Because the IRS extended the tax deadline by three months in 2020, it might seem like you were filing your taxes just the other day. However, it’s time to start thinking about paying taxes again, as there is no indication the yearly April 15 deadline will be moved again. Before you file, it’s worthwhile to ponder the deductions available to you. Many taxpayers are not aware of the numerous deductions and credits Read More
